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The solvent extraction section of an old Uranium Plant in the Vaal River region (North West Province in South Africa) produced a substance called CRUD (Chalk River Unidentified Deposit) that formed within the aqueous/organic interface of the settler of the solvent extraction circuit. The CRUD was deposited together with gold tailings to the tailings dam many years ago. Previous research done on the CRUD confirmed that exposed CRUD leaches Mn and Ni at concentrations that are well above their acceptable risk limits as well as Zn that leaches at concentrations that are slightly lower than its acceptable risk limit. Soil washing and bioremediation technologies were employed to treat the contaminated soil.   Various laboratory test work and the pilot scale studies were conducted in parallel with each other and the results of the laboratory studies were used to determine critical parameters. Four lixiviants, ie sulfuric acid, acetic acid, oxalic acid and ethylene diamine acetic acid were tested at three concentration levels ie 0.001 M, 0.0001 M and 0.00001 M, respectively. Column tests showed that the leaching of the heavy metals increases as the soil porosity increases. Silica sand was added to increase porosity of the contaminated soil. Highest Mn removal was achieved mainly by sulfuric and oxalic acid at 0.001M at all soil levels. EDTA was significantly efficient in the removal of Ni and Zn. The recovery of heavy metals, particularly Mn, decreased as the depth of sampling increased.   Heterogeneous bacteria and filamentous organism plate counts were conducted to evaluate the growth of the bacteria and filamentous organisms in the soil. Results showed that more organism growth took place in the bioremediated soil with a fertilizer added to it. The leaching of metals from the soil that was bioremediated in the pilot study was generally higher than the extraction of the metals from the soil that was leached with no bioremediation carried out. The results from this study suggest that the leaching of heavy metals from the contaminated soil is to a large extent dependant on the pH of the leaching solution. By increasing the soil's porosity and bioremediating the soil, higher extractions of metals were achieved.

Jun 1, 2010

By D C. McPhail, S L. Rogers, J Brugger

Using iron- and sulfur-oxidising bacteria to catalyse the breakdown of sulfides that host the gold is an important biological method for the pretreatment of refractory gold ores. Following this biological treatment a combination of chemical and physical methods are used for leaching (such as the cyanide process) and concentration (such as carbon-in-pulp or electrowinning) of gold. Although these methods are well accepted by industry, they harbour limitations in the processing of low-grade refractory ores, and regulatory agency/public acceptance of cyanide use. Thus, it is beneficial to industry to develop environmentally friendly, cost-efficient leaching and concentration techniques that are based on micro-organisms. This may soon be possible by adapting the results of recent regolith geoscience research, which has shown that micro- organisms are capable of driving a biogeochemical cycle of gold dispersion, transport and reconcentration in the supergene environment. The indigenous microbiota in biologically active soil microcosms from a number of Australian sites are capable of solubilising up to 80 wt per cent of the gold contained in these materials during 50 days of incubation. Studies using molecular microbial techniques have shown that a metallophilic bacterium, Ralstonia metallidurans, is present in biofilms on gold grains from a number of Australian sites. R metallidurans is capable of actively accumulating gold from solution, suggesting that the bacterium may contribute to the formation of secondary gold grains and nuggets. Identifying the biochemical and physiological pathways that lead to the dispersion and accumulation of gold in regolith, and quantifying the reaction kinetics of these processes may thus lead to the development of industrial bio-processing capacities for gold-containing ores.

Jan 1, 2007

By D M. Frantois-Bongarton

Variograms can be powerful tools for the analysis and control of process streams and their sampling. Their uses and proper utilisation have been described somewhat unclearly to date, and their limitations and precautions of use are too rarely mentioned. The general meaning and properties of the variogram tool and its use in geostatistics are therefore reviewed in details to derive a critical view of its proper use for process control: what to expect from it and what it cannot deliver and which uses are illusory or potentially misleading. A summary of GyÆs seminal work accompanies this essay to put the concepts into historical perspective.CITATION:Frantois-Bongarton, D M, 2012. Review of variogram properties and remarks on its use in process control, in Proceedings Sampling 2012 , pp 175-180 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 21, 2012

The expansion of hydrometallurgical operations, declining ore grades and upwardly spiralling production increases the demand for fresh and recycled water with low levels of contaminants. The minerals industry is also increasingly being forced both by regulatory and cost pressures to reduce the amount of liquid waste they produce. This requires a strong focus on waste reduction by recycling, regeneration and reuse. However, these measures are often not enough in arid countries for a forward progress and expansion of their mining activities.   It is often the case that in the arid and semi-arid countries the only available water is either sea water or underground (brackish to hypersaline) saline waters. Brackish waters can be desalted at a reasonable cost but the desalination of highly saline waters is challenging and expensive.   There are emerging reports that sea water and in some cases hypersaline underground waters are now used by various mining industries as process water. This study explores the possibility of the use of sea water in various mineral processing and hydrometallurgical processes and briefly discusses the benefits and problems related to the use of saline waters at the mine and mill site. Several cases studies and preliminary laboratory test results are presented.

Jun 1, 2010

OWING to two large falls of ground which resulted in serious accidents occurring towards the end of 1908, it became evident that the "open chamber" system then in use was unsuitable for the conditions existing in the Mount lVIorgan mine. It will be admitted that in all mining operation, the first consideration is the economy of the system adopted, combined with its safety and ability to give the desired output. A sectional system with square sets has been introduced into the mine, in which due attention has been paid to these factors. In this paper a brief description of this system will be given. An outline of those previously used will be ineluded, as it is necessary to understand the eonditions which existed in the mine at the initiation of the sectional system. Outside the actual mining methods employed, various points that might prove of interest will be touched on.The square set system of mining has been in use throughout the stopes in the gold ore in the upper levels of the mine since underground operations were started in Mount Morgan.

Jan 1, 1910

By R J. Holmes

An accurate knowledge of the chemical, mineralogical and physical characteristics of ores and mineral products that are mined, processed and traded is crucial to effective resource utilisation, plant design, process optimisation and finally quality control to ensure that contract specifications are met. However, all too often the responsibility for sampling is entrusted to managers and personnel who do not fully appreciate the significance and importance of collecting representative samples for analysis, and everyone seems satisfied as long as some material is collected and returned to the laboratory for analysis. Furthermore, sample stations incorporated into the design of new plants are often the first casualties when cost cutting exercises commence. This needs to change, because there is little point in accurately analysing samples if they are not representative in the first place. The resultant analyses can be next to meaningless and the effort taken to analyse such samples is to a large extent a waste of time and resources.Ultimately, a poor knowledge of the characteristics of ores and mineral products limits the ability of mining companies to optimise the life of ore resources and plant performance, and failure to meet final product specifications can have disastrous consequences, including price penalties and more seriously loss of sales contracts. It is high time that sampling is given the attention it deserves as the first critical step in the quality measurement chain.CITATION:Holmes, R J, 2013. The importance of sampling in the mineral industry, in Proceedings MetPlant 2013 , pp 34-49 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 15, 2013

By T C. Ooi, L Lu

Owing to ongoing development of new orebodies and changes to existing mining operations, new ore types with distinct mineralogy, porosity and textures are generated as feed for iron and steelmaking. Moreover, further product differentiation occurs as fine ores are increasingly beneficiated to achieve grade. A study was necessary to characterise a suite of iron ore fines in terms of their propensity for formation of quasi-particles and green bed permeability prior to sintering. In this study, two Marra Mamba bedded iron deposit (BID) samples, one Pisolitic channel iron deposit (CID) samples, two dense hematite samples (coarse and fine grained microplaty hematite), one hematite-goethite BID samples and one hematite-goethite bedded/detrital iron deposit (BID-DID) composite sample were investigated. Both Marra Mamba fines and Pisolitic fines exhibit the highest green bed permeability followed closely by hematite-goethite fines, fine microplaty hematite fines, hematite-goethite BID-DID composite fines and coarse microplaty hematite fines at a moderate sintering bed depth of 500 mm. While porous fines generally form better quasi-particles upon granulation than dense fines, the amount of moisture addition increased due to the moisture saturation of the porous fines. As sinter strands become ever larger and deeper, it was necessary to examine the granulation performance of these ore types at a range of bed depths ranging from 300 to 900 mm. On average, the green bed permeability achieved by different ore types, decreased by approximately 7.5 - 9 Japanese Permeability Unit (JPU) as the bed height was increased from 500 mm to 900 mm. In order mitigate the effect of lower bed permeability of the deeper beds, small additions of hydrated lime were investigated as a binding agent to facilitate the formation of strong micro-pellets. With the addition of three per cent hydrated lime, equivalent to approximately 2.3 per cent burnt lime, the majority of fines achieved adequate permeability for deeper bed sintering, with the exception of coarse microplaty hematite fines. In simulated coastal steelmaking sinter blends, it was found that the overall granulation performance of the blend is contributed to by individual fines constituting the blend. Therefore fines possessing favourable granulating properties impart better granulation to the blend as a whole.CITATION:Ooi, T C and Lu, L, 2013. Effects of ore type and binder addition on the formation of quasi-particles and green bed permeability at different sintering bed depths, in Proceedings Iron Ore 2013 , pp 459-466 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 12, 2013

The objective of a mine planning exercise is to plan a safe mine that maximises net present value (NPV) for the project. Two primary elements are key to design of a mine plan optimised to maximise profit: selection of an optimised production rate and selection of an optimised equipment fleet. Both depend upon accurate estimations of capital and operating costs for the equipment and for the life cycle of the mining operation. Once a trial production rate is determined, a primary equipment fleet, ie excavators, haulers, and blasthole drills, can be determined based on material characteristics and haulage distances and gradients. An auxiliary fleet, dozers, road maintainers, service trucks, etc can be determined using less rigid productivity criteria. With an equipment fleet determined, operating and support personnel can be assigned based on shift requirements and equipment operating needs; and material and supply requirements can be estimated. Knowing the areal dimensions of the major equipment items, road widths and repair shop dimensions can be determined. Personnel numbers and supply requirements determine the square metre sizes of offices, change rooms, and storage facilities. Reliable sources of capital and operating unit prices and costs for all these items are referenced in the paper. Once preliminary capital and operating cost estimates are calculated by applying unit costs to equipment, personnel, material and supply needs, potential profit can be tested using DCF techniques. An optimised mine plan can then be determined by testing the potential profitability of multiple mine production rates. Because of the economies of scale, full capital and operating cost estimates must be completed for each production rate in order to produce meaningful comparisons.

Dec 6, 2010

By D Thorburn

This paper reviews the history of environmental assessment in New Zealand with reference to mineral developments. Emphasis is given to larger more controversial projects particularly metal mines. The changing role and application of the Environmental Protection and Enhancement Procedures is examined in the context of changes in the government's environmental administration and the response of the Ministry of Energy's resource allocation group. Conclusions are drawn on the effectiveness of the present environmental assessment activities and on the allocation of administration of priorities in the Ministry. The Ministry of Energy has effectively ceased to exist.

Jan 1, 1990

A tectonic interpretation of the Coromandel Peninsula which suggests that the basement underwent tensional collapse at its northern and southern ends would permit more ready penetration of late stage magmatic fluids. This hypothesis is consistent with regional trends of the chloride content of low grade geothermal waters and of the yield of gold and silver per unit weight of quartz worked. The consequences of such a model are that mercury should not only be a good pathfinder for Coromandel gold, but that it should be correlative with ratios of base metals high in the zoning or paragenetic sequences to those lower in the sequences. This is demonstrated successfully in an area of mineralisation in the southern Coromandel.

Jan 1, 1987

By M Wilson, D Whiteman, P Kuiper, S Talu, G Watt, A van As

Once the draw process has begun in a block cave, it is very difficult to identify which regions of the cave have successfully propagated, where the caved material is flowing from and where it is flowing to. The uncertainty around cave flow increases as the cave is drawn and can be further compounded by poor draw control practices. These uncertainties make it difficult to plan effective draw strategies to control dilution, as flow model predictions tend to gradually diverge from the actual state of the cave. There have been documented occasions where observed caving phenomena, such as muck pile surface rilling, could not be reproduced with the cave flow models of the time. The ultimate consequence of cave flow uncertainty is generally manifest as higher dilution and lower grades.In order to measure the real-time flow of caved material within an active block cave, CRC Mining and Elexon have developed, together with Rio Tinto, a cave flow monitoring system called Cave Tracker, which is being trialled at Argyle Diamond Mine (ADM) in Western Australia. The Cave Tracker system at ADM comprises electronic ‘beacons’ that have been installed down long HQ diameter drill holes located above the extraction level. As the cave-back propagates and the rock mass fragments, beacons are released into the muck pile and flow along with the caved material to the drawpoints below. At Argyle, the beacons are configured to emit a signal every three days. These signals are picked up by detectors installed on the extraction and undercut levels, allowing the positions of the beacons to be determined.By examining the real-time material flow in different regions of the cave, flow mechanisms can be better defined. Draw control strategies can then be actively tailored to manage the current state of the cave. Thus, previously undetectable indications of excessive rilling, rapid cave propagation, cave stall, air gaps and dilution entry can now be identified early and assessed continuously as the cave progresses. For the first time it is possible to amend draw strategies based on measurements from inside and outside of the fractured zones, allowing caves to be managed more effectively.CITATION:Whiteman, D, Talu, S, Wilson, M, Watt, G, Van As, A and Kuiper, P, 2016. Cave Tracker flow monitoring system installation at Argyle Diamond Mine, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 479–488 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By S Jackson, I Arbuthnot

The use of High Rate Thickeners has gained wide acceptance in the mineral treatment industries. The design of these units is characterized by an efficient deaeration and flocculation chamber, and introduction of the flocculated feed solids into a preformed floc bed zone. By these means the settling process is accelerated and consequently High Rate Thickeners achieve a significantly higher throughput per unit area than conventional thickeners.   The object of a control system on a High Rate Thickener (HRT), as on a conventional thickener, is to obtain the required underflow density and overflow clarity at all feed conditions. The feed conditions which may vary include volumetric and mass feed rate, pulp density, particle size and particle type. A conventional thickener has a large volume and cross sectional area, and changes in performance occur slowly û the operator has time to observe and react to these changes to maintain control. On a HRT, there is a much reduced residence time and therefore control parameters need to be reset more frequently. Although manual control is possible, the use of automatic control systems is therefore desirable to avoid excessive operator attention, while optimizing control of density and clarity. Automatic control of a conventional thickener is usually achieved by an underflow density loop which regulates the rate of withdrawal of underflow. A turbidity meter is sometimes used to measure overflow clarity and regulate the addition of a coagulant or polymer flocculant. These measures are not adequate on a HRT, because they would not give optimum control and could lead to excessive flocculant use. To achieve optimum operation in a HRT, the floc bed level should be maintained above the feed inlet point in the thickener. This bed level has become the key variable around which most control systems have been designed. However, a number of problems have occurred which has resulted in poor control, or only partial control of thickener performance. We will describe some of these problems, and a solution which is simple and effective.

Jan 1, 1990

By X Hu, C-C Yang, J Pan

In this work, preheating and roasting tests of pellets made from blends of Western Australia ultra-fine (WAU) magnetite concentrate and Chinese domestic magnetite concentrate or Brazilian hematite concentrate were carried out. The results showed that pellets made from 100 per cent WAU magnetite concentrate possesses inferior preheating and roasting performance when preheating at 1050°C for 20 minutes and roasting at 1300°C for 40 minutes, the compressive strength of preheated and fired pellets is 502 N/pellet and 2313 N/pellet, respectively. When 40 per cent Chinese domestic magnetite concentrate or 20 per cent Brazilian hematite concentrate was blended with 60 per cent or 80 per cent WAU magnetite concentrate, the appropriate preheating temperature of the pellets are reduced from 1050°C to 950°C and 975°C, and also the firing temperature of two types pellets are decreased from 1300°C to 1250°C and 1280°C respectively. Moreover, the compressive strength of fired pellets is obviously improved up to 2746 N/pellet and 2630 N/pellet respectively. Microstructure analysis of the fired pellets made from 100 per cent WAU shows its poor growth of Fe2O3 grains, low interlinkage degree of hematite grains, small size of crystallised grains and high porosity of pellet; however, the fired pellets that blended with domestic magnetite concentrate or with Brazilian hematite concentrate have fully growth of Fe2O3 grains, closer interlinkage of hematite grains, lower porosity and stronger consolidation. The preheating and roasting performance of WAU magnetite concentrate pellets can be improved by optimising ore matching.CITATION:Pan, J, Hu, X, Zhu, D-Q and Yang, C-C, 2017. Pelletising performance of Western Australian ultra-fine magnetite concentrate and strengthening technique by optimising ore matching, in Proceedings Iron Ore 2017, pp 97–104 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 24, 2017

By P J. Mienie

The Palaeo-Proterozoic Transvaal Supergroup in the Northern Cape Province of South Africa is host to the largest known resources of high-grade hematite ore on the Southern African continent. These ores are currently being exploited at Sishen and Beeshoek. Hematite occurances on the Sishen South exploration project (some 65 km south of Sishen mine), are at present the focus of an intensive investigation. At both the Sishen and Sishen South deposits, mineralisation is found within lithologies belonging to the Transvaal and Oliphantshoek Supergroups. The Transvaal Supergroup comprises a basal, carbonate platform sequence (the Campbell Rand Subgroup) overlain by thick units of banded iron-formation belonging to the Asbestos Hills Subgroup. The Asbestos Hills Subgroup is unconformably overlain by sedimentary rocks of the Gamagara Subgroup. The latter Subgroup has been correlated with the lowermost unit of the Oliphantshoek Supergroup. The Sishen and Sishen South deposits are located close to the western margin of the Kaapvaal craton and have been subjected to intensive, structural deformation. Both localities have undergone folding, faulting and thrusting. Early regional tectonism (2400 - 1700 Ma) played a critical role in the genesis and preservation of the ores from younger erosive events. At both deposits, four similar iron ore occurrences have been recognised. The ores have developed in specific depositional environments and hence display unique physical, chemical and metallurgical properties:The bulk of the high-grade hematite comprises laminated and massive ores, which are found in the upper parts of the Asbestos Hills Subgroup. The laminated and massive ores are best developed in basinal and pseudo-graben structures. Collapse breccia ores of medium- and lower-grade are preserved within deep palaeosinkholes. The sinkholes have developed within the dolomites of the Campbellrand Subgroup. Lower-grade conglomeratic and gritty ores constitute the remainder of the deposits. These ores are found in the overlying clastic succession of conglomerates, shales and quartzites belonging to the Gamagara Subgroup. Although, there are many stratigraphic and lithological similarities between the Sishen and Sishen South deposits, there are also important differences, which will impact on the profitable exploitation of the ores. The most striking contrast between the deposits is their size and geometry. Sishen mine is a single pit operation with an opencast mineable reserve of 895 Mt. The Sishen orebody is thicker, more continous and significantly larger than the Sishen South deposit. The Sishen South deposit has a potential opencast reserve of 228 Mt. It comprises a number of small and narrow, isolated orebodies, spread over an area of ¦64 km2 . There is a significant difference in grade between the deposits. On average the orebodies of the Sishen South deposit have a higher iron content (+0.25 per cent Fe), less potassium (- 0.090 per cent K2O) and less phosphorus (-0.019 per cent P). The Sishen South deposit has less interbedded shale in the laminated and massive ores. The footwall of these high-grade ores is a light-density, intrusive sill, compared to banded iron-formation at Sishen. With a proposed heavy-medium separation plant at Sishen South, the impact of dilution on product grades is expected to be less than that currently experienced at Sishen.

Jan 1, 2002

By A P. Brown

Comparison of legal permits required for mining (as opposed to prospecting or exploration) inNew Zealand, under the Mining Act 1971 and the Resource Management Act/Crown Minerals Act 1991. Mining generally receives the same treatment as any other industrial or commercial activity.

Jan 1, 1995

By D N. B Skinner

Changes in the configuration of late Cenozoic volcanic arcs related to Pacific-Australian plate convergence in northern New Zealand may have localised large-scale epithermal gold-silver mineralisation to a particular part of the volcanic arc system, the Coromandel Volcanic Zone (CVZ). The history of arc-type volcanism in northern New Zealand began with the development of the continental margin Northland Volcanic Arc from early-mid Miocene (26-15 Ma). From 18-15 Ma the Northland Volcanic Arc extended south into the northern and western part of the CVZ where it is dominantly composed of andesite with lesser dacite and very minor rhyodacite. In the south, centre and east of the CVZ, younger andesite-dacite volcanism overlapped in space and time (14-5 Ma) with voluminous rhyolitic volcanism associated with rift-hosted calderas and minor basaltic eruptions. This change to bimodal rhyolitic-basaltic volcanism and extensional tectonics was a result of southwest (SW)-directed propagation of the Colville-Lau oceanic island+ arc into the north-northwest (NNW) trending Northland Volcanic Arc and its underlying continental crust. The extensional tectonic regime created in the collision zone between the two arcs is also the site of the 14-6 Ma Coromandel epithermal gold-silver province, which contains some 50 separate deposits and has a production (1862-1996) of about 300 t Au and 1150 t Ag. Extensional tectonics facilitated the emplacement of silicic magma at shallow crustal level and led to reactivation of deep basement faults. The resulting enhanced heat flow and fault-focused fluid flow localised large hydrothermal systems and associated extensive low-sulphidation epithermal gold-silver deposits in the southern part of the province, as at Waihi, Golden Cross and Karangahake.

Jan 1, 1997

According to the data provided by the most recent European Survey on Working Conditions, roughly 25 per cent of the European working population is exposed to mechanical vibrations for no less than one quarter of the work shift duration, while around ten per cent are exposed for the entire work shift. The occupational exposure to whole-body vibration (WBV), in particular, represents a major health risk in mining, quarrying and civil excavation activities. In accordance with European Directive 2002/44/EC, the latest version of the Italian law on physical risks has recently confirmed the possibility of using relevant literature data on vibration magnitude in order to evaluate personal occupational exposure (vibration database or data provided by the manufacturer). Still the alternative option, based on field measurements, represents the most appropriated method of risk assessment, as it accounts for the actual operating condition at the workplace; actual operator and vehicle under investigation and specific working cycle. The article discusses the vibration measurements taken on a number of heavy machinery (excavators, loaders, trucks, dumpers, etc) employed for talc extraction in a mine located in Sardinia and the resulting personal exposure for the drivers. The assessment was carried out in accordance with the specifications of ISO 2631-1 and EN 14253.

Dec 6, 2010

In the Ngakuru area, zeolite deposits occur in late Quaternary lake sediments and ignimbrites. The deposits are associated with sinters, hydrothermal eruption breccias, and quartz-adularia altered fault breccias: all indicators of a shallow epithermal environment. Several of the deposits are adjacent to epithermal gold prospects. Zeolites are most abundant in lacustrine tuffs of the Ngakuru Formation, a 100-300 m thick sequence of siltstone, tuff, diatomite, sandstone and conglomerate. The formation overlies the Ohakuri Ignimbrite dated at c. 270 Ka, and is unconformably overlain by alluvial sands and gravels which are younger than 20 Ka. Individual zeolite deposits contain 30-80 per cent zeolite over a thickness of up to 45 m in thinly stratified tuff beds. The tuff beds are locally overlain by diatomite. The tuffs are composed mainly of glass shards and pumice clasts, with minor volcanic plagioclase, quartz and biotite crystals. Glass shards in the tuffs are replaced by the silica-rich zeolites mordenite and clinoptilolite. Amorphous silica (opal A), opal-CT, K-feldspar and smectite are also present. The distribution of the Ngakuru Formation is controlled by northeast trending normal faults, which separate it into the Ngakuru and Guthrie grabens. A silicified (quartz-adularia altered) hydrothermal breccia along one of the fault zones suggests that the faults acted as feeders for heated water that caused the deposition of the zeolite minerals. Some of the zeolite deposits are adjacent to sinters and hydrothermal eruption breccias. The location of the sinter about 20 m above one deposit indicates that the zeolites were formed at a depth of 20 to 70 m below the paleosurface. The hydrothermal eruption breccias contain clasts of altered ignimbrite, which contain geochemically anomalous gold and silver values. By analogy with their occurrence in active geothermal systems in the Taupo Volcanic Zone, mordenite and clinoptilolite in the Ngakuru deposits probably formed at temperatures of 60-150oC from near-neutral pH waters as a result of interaction with glass-rich tuff beds. The Ngakuru zeolite deposits are therefore interpreted as shallow hydrothermal alteration zones within larger epithermal gold-bearing systems.

Jan 1, 2002

By H M. Ahmed, W S. Dunbar

Construction of cave mining systems requires significant capital expenditure and long-term commitment of human, equipment and material resources before production commences. Risks and uncertainties of these large-scale mining projects are significantly higher than for small-scale projects. This is due to the complexity and interactions of the construction schedule components and the large scale and uniqueness of such projects. One way to successfully manage construction uncertainties that would lead to schedule delays is to include a reasonable cost contingency in the budget estimation. A real options approach based on the least-squares Monte Carlo (LSM) method is used to estimate cost contingency associated with schedule uncertainty in mass mining projects. Cost contingency is estimated as the cost of potential project crashing (acceleration) decisions, which pays for not extending the schedule. While such a significant undertaking is expected to be subject to some delays, these can have an enormous impact on the economic value of such projects. The value of the crashing option was explicitly formalised into the process of valuation, as it is assumed to be a single option being considered in the valuation at every decision point prior to the construction completion date. As a part of the proposed method, a stochastic function for the percentage of remaining scope of work for the remaining duration of the entire project was integrated into a framework of numerical simulations. This ensured that this function can implicitly account for sources of schedule uncertainties for projects represented by multiple and overlapping work packages. The LSM method was applied to a real case scenario in an operating block cave mine, with modified scale and features. The results yielded by the LSM method indicated that significant changes in capital budget allocation stem from variation in a contractor’s risk perception and confidence level of estimated delays.CITATION:Ahmed, H M and Dunbar, W S, 2016. Budget estimation and contingency allocation of block cave construction using least-squares Monte Carlo real options, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 801–808 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By D N. B Skinner, R L. Brathwaite, M S. Rattenbury

The Institute of Geological and Nuclear Sciences Ltd has carried out a mineral resource assessment of the Coromandel region, one of the most mineral-rich regions of New Zealand. The assessment focussed on metallic minerals and clays, because these are the main commodities that have potential for increased production and export from the region (and from New Zealand).   Three steps were used in the assessment: 1) development of mineral deposit models, 2) comparison of the models with regional geology, structure, geochemistry and past mineral production to estimate the number of undiscovered mineral deposits, and 3) application of grade-tonnage models to determine the quantity and value of the known and undiscovered resources. In step 1, descriptive and grade-tonnage mineral deposit models were developed for 11 different types of mineral deposits: ò     Low-sulphidation andesite-hosted epithermal Au-Ag ò     Low-sulphidation rhyolite-hosted epithermal Au-Ag ò     High-sulphidation quartz-alunite epithermal Au ò     Porphyry Cu-Au-Mo ò     Andesite-hosted polymetallic veins adjacent to mineralised porphyry stocks ò     Zn-Pb-Ag skarn ò     Cu-Ag skarn ò     Hot spring Hg ò     Shoreline placer Ti ò     Rhyolite-hosted halloysite clay ò     Volcanic-related kaolinite clay   Step 2 was aided by a geographic information system (GIS) assembled from a number of digital spatial data sets including: a digital elevation model, an aeromagnetic map (from open file mining company data), a geological map (from the GNS QMAP project), location of areas of hydrothermal alteration, locations of mineral deposits (from the GERM database), stream sediment geochemical analyses (from the REGCHEM database), and a lineament map derived from satellite remote sensing data and the digital elevation model.   Based on May 2001 commodity prices, potential resources estimated for the 11 mineral deposit and grade-tonnage models total NZ$22 806 million for the metallic minerals, NZ$1000 million for halloysite clay deposits and NZ$57 million for kaolinite clay deposits.

Jan 1, 2001