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By Gerald Whittle

What is Enterprise Optimization? Releasing value through better planning decisions: Philosophy, Methodology, Software The key to 5% -35% increase in enterprise value (NPV) The culmination of 25 years development in optimization for the mining industry ?Jeff Whittle Simultaneously optimizing: ?all steps in the value chain ?all assets in the enterprise portfolio ?all periods together

May 1, 2010

Advances in technology have led to larger and deeper open pit mines and, consequently, also increased the potential economic impact associated with slope failures. If the ultimate aim of mining operations is to maximise project profit, it is surprising to see related research activities have mostly been focusing on technical areas such as slope stability modelling, but with limited studies conducted to date to assess the relationship between geotechnical uncertainties and economic risk. Given most major decisions in the mining industry nowadays are made by management staff with financial background, any design approach that would help to link slope stability analysis results with monetary values would no doubt enhance communication between geotechnical practitioners and decision makers. This paper presents a study which assesses economic impact of slope failures to assist in mine planning. The study also estimates the impact of slope failures on project value, which would enable economic risks associated with pit slope designs to be closely examined. The proposed risk assessment techniques, used by financial institutions for many years to assess portfolio risks, can assist geotechnical practitioners in quantifying risks of slope failures. Risk-adjusted concepts are also suggested to assist management in selecting a slope design with optimal risk and return ratio.

May 1, 2010

By Tim Watson

Andacollo Hypogene Project ?Overview Project description: Sulphide copper concentrator Throughput:55,000 tpd Location: Approximately 50 km from La Serena Elevation: Approximately 1,000 m ASL Start feasibility study: July 2005 Start of construction: May 2007 Construction completion: December 2009 Final cost(1,2,3):435 Million US $ (1) Excludes third party costs, 220 kV power line (2) Cost is based on a Chilean Peso to US Dollar foreign exchange rate of 535 to 1 (3) Does not include US$40.3 million for the Elqui River Pipeline Project or US$8.0 million for the stock pile cover

May 1, 2010

By Donald Lindell

Safety Share ?Dad receives fryer for Christmas 2009 and makes delicious sweet potato fries ?When the oil fryer was pushed back on the stove for cooling, the back edge comes into contact with the stove top controls, unknowingly activating the cooking element, family leaves kitchen. ?Faint smell of smoke from the melting plastic alerted the family; teenager arrives first and pulls the fryer forward causing oil to spill onto hot stove and burst into flames that reach the microwave ?Teen runs for sink to grab pan of water but is stopped by Dad ?Dad opens refrigerator, grabs baking soda and pours it on fire, extinguishing flames Lessons 1.DO NOT USE WATER ON GREASE FIRE 2.Where is the baking soda in your kitchen?

May 1, 2010

By Ivan C. Machado

Jaguar Mining Inc. is implementing a 1.1 Mtpy, 7-year LOM gold project in the Iron Quadrangle (?Quadrilátero Ferrífero?), Brazil. Construction is on schedule and startup is programmed for Q2 2010. Mill feed grade averages 4.43 g/t and LOM gold production is estimated at 800,000 oz. The project entails two sulfide underground mines and three oxide/transition open pit mines. A state-of-the-art flotation/gravity concentration/CIP Plant has been designed based on testwork carried out by internationally recognized Canadian, U.S., and Brazilian laboratories. The mass recovery of the flotation section is only ca 10%, while its gold recovery is about 90%. Therefore, the CIP-ADR Plant will treat only 10% of the solids mass contained in the mill feed, while 90% will be fully cyanide-free material that will be partially used to feed a Backfill Plant. The leached tailings will be conveyed to a rather small tailings dam, whose 20- m3/h supernatant solution will be treated by a new electrolytic technology. The plant design contemplates a High Density Thickener for the cyanide-free rejects exceeding the backfill demand and a Regrinding Section before the Leaching Circuit. The estimated overall metallurgical recovery sits around 92%. This paper focus on the use of modern technologies to reduce costs, risks, and liabilities.

May 1, 2010

By D. R. Wilburn

This summary of international mineral exploration activities for the year 2009 draws upon information from industry sources, published literature and U.S. Geological Survey (USGS) specialists. The summary provides data on industry exploration budgets by region and mineral commodity, identifies significant mineral discoveries and areas of mineral exploration, discusses government programs affecting the mineral exploration industry and presents analyses of exploration activities by the mineral industry based upon these data. Two types of information are reported and analyzed in this annual review of international exploration for the year 2009: 1) budgetary statistics expressed in U.S. nominal dollars provided by Metals Economics Group (MEG) of Halifax, Nova Scotia, and 2) information on regional and site-specific exploration activities that took place in 2009 and were compiled by the USGS. The MEG information summarizes planned company budgets for worldwide exploration activities in 2009, primarily for base metals (copper, lead, nickel and zinc), diamond and precious metals (gold, platinum-group metals and silver). Information on uranium exploration was included in the MEG overview for the first time in 2007, although this information was not included in the USGS analysis prior to 2008. The MEG survey methodology was changed in 1999 to include companies with exploration budgets greater than $100,000, as well as those companies included in prior studies whose anticipated budgets were above $2.9 million. MEG estimates that its post-1999 surveys cover at least 90 percent of world nonferrous nonfuel mineral exploration budgets. The 2009 survey is reported by MEG to cover an estimated 95 percent. Companies who chose not to participate in the MEG study, private companies that do not publish data and government-funded exploration activities make up the majority of the remaining 5 percent. MEG included 86 more companies in its 2009 survey than it did in 2008.

May 1, 2010

By David Laing

Completion of a Feasibility Study represents a major milestone in the development path of a mine, and one which typically triggers a need for project financing. Obtaining funding for construction relies on a positive Feasibility Study and a host of other related activities. This paper looks at the financing process and work required to support it, during and after the Feasibility Study, and bring it to a successful closing. It will include comment on the significance of permits, environmental plans, construction contracts, offtake arrangements, hedging, insurance, and others requirements to support a financing plan.

May 1, 2010

An Attractive Investment ?Near term low cost and secure PGM producer ?restricted supply legislated demand ?strong pipeline of resource development ?Building Canada?s largest undeveloped PGM-Cu resource ?All work (resource, reserves, DFS, EA) is NI43-101 compliant ?Strong balance sheet: over $8 m in cash with no debt

May 1, 2010

It had been more than a decade since this many booths were occupied at an SME Annual Meeting, but at the 2010 meeting in Phoenix, AZ 630 booths were sold to 470 vendors from the entire spectrum of the mining and minerals industry. Exhibitors such as Metso, FLSmidth, West-Tech, ABB, NIOSH, Eriez and Resource West took their usual prominent places on the exhibit floor and were joined by newcomers such as tunnel boring machine manufacturer Herrenknecht AG, Frontier Kemper, the International Society of Explosive Engineers and more than 100 other first-time exhibitors. On the floor, one could find everything from a new pair of boots to a new career in the recruitment pavilion where some of the biggest companies in mining (Barrick Gold, Freeport-McMoRan, Newmont Mining, etc..) set up shop. The following is a look at some of the companies and products that were on display at the 2010 meeting. For information about displaying at the 2011 annual meeting in Denver, CO, Feb. 27 to March 2, contact exhibits@smenet.org.

May 1, 2010

By Staff

Minerals contribute to U.S. gross domestic product (GDP) at several levels ? from mining and processing to the manufacturing of Anished products. In 2009, the estimated real GDP of the United States decreased by 2.4 percent compared with, and the estimated nominal GDP was about $14.2 trillion (Table 1). Trends in various sectors of the domestic economy are often reflected in mineral production and consumption rates. In 2009, the continued decline of the housing market was reflected in reductions in the production and consumption of cement, clays, construction sand and gravel, and crushed stone (those mineral commodities that are used almost exclusively in construction). Production of mineral commodities associated with the manufacture of goods for the housing market, such as ceramic tile, heating and air conditioning equipment, paint, plumbing and sanitaryware, roofing, wiring and wallboard also decreased. Declines in auto-mobile manufacturing resulted in reduced production

May 1, 2010

Northern Iron Ltd (NIL) is an Australian listed company that recently brought the historic Sydvaranger open pit Magnetite Mine (the Project) in Northern Norway successfully back into production. NIL made the decision to operate the Project on an owner mining basis, due to limited large scale mining expertise amongst Norwegian mining contractors, a long mine life, a limited range in planned mining rate and to minimise costs. As a new mine operator in a country where labour practices are strictly regulated, there was the desire to reduce the risk associated employing and managing skilled personnel. This was achieved by coupling the purchase of the required mining equipment from the original equipment manufacturer's (OEM) regional dealers with OEM supported Maintenance and Repair Contracts (MARC). This paper examines the process that was followed to implement an owner mining operation in a short time frame; approximately 12 months from the initial requests for quotation to actual delivery of mining equipment to site, and some of the challenges faced. By following a formal and well-tested process, not only was the implementation achieved in the set time frame, but significant value was added through the cost savings achieved in the equipment purchase price and MARC rates that were negotiated through this process.

May 1, 2010

By Royston Colbourne

Objectives Of Presentation - Identify specific risks - A fresh look at risk - Provide a moment reflection on risk - Open discussion on risk A route to solution and advanced thinking.

May 1, 2010

The use of teleoperation in mining is increasing due to requirements to improve safety and reduce the number of people required to work in remote and difficult environments. We recently completed a project to develop a teleoperated control system for a rock breaker at an iron ore mine in the Pilbara region of Western Australia, with the objective of demonstrating the feasibility of remote rock breaking over long distances. This required controlling both the rock breaker and an array of pan-tilt-zoom (PTZ) cameras using joysticks. Controlling the cameras distracted operators from the primary task of controlling the rock breaker to position and fire the hammer. This lengthened task times as both the operator's attention and their hands have to swap between different control interfaces. In this paper, we present a novel design using human eye gaze as an interactive input for the remote camera control. It follows a simple and natural design principle: Whatever you look at the screen, it goes to the centre. A prototype system has been implemented by integrating computer vision based eye tracking technology, with the advantage of being real-time, robust and marker-less. We conducted a user evaluation, where users undertook a control task while obscuring the direct view of the working area and using a remote camera to transfer the live video stream as the visual feedback. Subjects were required to participate in the experiment using eye tracking camera control and traditional joystick control respectively. The statistical analysis of objective measures indicated that our novel eye tracking control significantly outperformed the joystick control. The results of the post-experimental subjective measures also revealed much higher user preference for using eye tracking control, which provides clear evidence that this design is a better interface for remote camera control in mining teleoperation settings.

May 1, 2010

By Roxanne Scott

Outline ? Overview of Community Investment in the Mining Sector ? Emerging Good Practice: ?Strategic Integrated Community Investment? ? Assessing Local Context: ? Institutional Assessment ? Partnership Assessment Approaches to Community Investment Isolation: No proactive engagement in community development Ad hoc philanthropy: small infrastructure, sponsorships, donations Strategic philanthropy: Community proposes options for development Company decides what to do and carries it out, e.g. building schools, health posts, roads Strategic integrated community investment: ? Aligned with government/community development goals and priorities ? Communities and government involved in decisions and execution ? Focused on training and capacity building ? Partnerships ? Continuation in absence of company support Measured returns on investment

May 1, 2010

By Ruy L. Rodrigues

Vale is in the early stages of commissioning its Onça Puma nickel operations. The project is meant for the production of 58,000 tpa of nickel contained in ferro-nickel, substantially contributing to the company?s vision to achieve world leadership in the nickel business. Mineral resources will be exploited from the homonymous deposits in the Midwest of state of Para, Brazil ? some 100 km southwestwards from the company?s Carajás iron ore properties. Resources as of 83 Mt at 1.73 % Ni will sustain a mine life of approximately 40 years. The property was acquired in late 2005 and Vale has since extended the engineering studies and proceeded with the implementation. Nickel will be mined from saprolitic ore at a rate of approximately 10 Mtpa (ore plus waste) in early years ? ramping up to some 15 Mtpa 7 years later ?, to feed the plant at a rate of 2.5 Mtpa. The process uses conventional RKEF (Rotary Kiln Electric Furnace) pyrometalurgical route whereby the ore is homogenized, calcined in rotary kilns, melted in electric furnaces and further refined to ferro-nickel. The plant has been designed and constructed applying the latest available technology, aligned with Vale?s vison to exceed the highest existing standards for environmental control, health and safety and productivity in the industry. Total investments in these operations are anticipated to correspond to USD 2.3 Bi and will materially contribute to the regional development and well being of the nearby communities and other stakeholders.

May 1, 2010

By Marcio Luis S. Godoy

The Salobo Project will be the first Vale operation to use an HPGR mill to process copper-gold ore. The mine is located in Para state, southeast of the Amazon region in Brazil. The circuit was designed to treat 12 million metric tons per year of finely disseminated sulphide ore with high hardness. The comminution circuit comprises a gyratory primary crusher, secondary crushing utilizing two cone crushers, two 2 x 1.5 m HPGR operating in closed configuration with 6 mm screens, followed by two 26 x 40 ft ball mills. The concentration circuit consists of two rougher flotation stages using mechanical cells, regrinding with vertical mills, three cleaner stages with columns and one cleaner scavenger stage in mechanical cells. The concentrate is dewatered, filtered and transported by trucks and train to the port, to be exported. The circuit was designed on the basis of data obtained from a comprehensive laboratory and pilot plant campaign. The ore variability was assessed through simulation using data from a drilling core characterization program. The start-up of the industrial plant is planned for 2011. This paper describes the main aspects of circuit design, as well as information related to the beginning of the project construction.

May 1, 2010

Training by Inclusiveness ?Background ?Video ?Results ?Partners ?How SEM works ?Future of SEM Background: Inclusivity partners ?Northwest Community College ?Smithers Exploration Group ?With support from the Province of BC ?Federal government ?And First Nations across the northwest

May 1, 2010

Agenda ?Introduction ?Geology ?Mining ?Metallurgy ?Process, Layout ?Environmental Background ?Kinross Gold Corporation owns the Lobo-Marte gold property, located in Region III of northern Chile. ?The property is close to two other Kinross mines, Maricunga 50kmto the south and La Coipa 60km to the north, plus a regional office in Copiapo and district level operating synergies are expected. ?Lobo and Marte were discovered in the early 1980s and are intrusion-hosted, porphyry-type precious metal deposits, typical of the Maricunga District. ?The Marte open pit heap leach mine was in commercial production in late 1988, but was suspended in February 1992 as it did not meet forecasted production levels and recoveries. ?Kinross plans to recover ore from the Lobo and Marte deposits through an open-pit, heap leach47,000tonne per day operation.

May 1, 2010

By Glenn Davis

In the world of large scale open pit mining, the majority of a mines operating cost is tied to the removal and transportation of the overburden waste material. Typically, many large haul trucks are employed to transport this overburden from each excavating face. The trucks transfer the waste material from deep within the pit to waste dumps on the surface incurring significant costs in operators, road construction and maintenance, vehicle maintenance staff and support facilities, fuel, tires, and spare parts, as well as the capital cost of the truck fleet itself. In addition, the haulage of the actual mined material carries similar operational costs. In both cases, these costs grow as the mine face advances and pit haulage distances increase. Reducing truck haulage is one key to the success of the Dual Truck Mobile Sizer (DTMS). Being the world?s first fully mobile truck dump station, transportation costs can be significantly reduced as the mine face advances. Furthermore, when used in conjunction with a shiftable face conveyor and a mobile overland hopper, substantial cost savings can be achieved. The mobility of the system allows for the considerable reduction in the haul truck fleet. Overall mine site emissions levels are greatly reduced by the fleet elimination, as well as keeping the majority of the hauls on a flat grade within the pit. Emission levels on a typical truck will dramatically spike as the angle and the length of the haul are increased. Moreover, comparing diesel engines versus electric powered conveyors to move the material contributes to the realized savings.

May 1, 2010

Minerals and Metals Group (MMG) Century mine (Century) is a large open-cut mine in northwest Queensland approximately 2.5 km long, 1.5 km wide and 240 m deep, with an ultimate pit depth of 320 m. In 2009, the mine experienced three failures which began as small failures, and progressively developed into significant multi-batter failures. The incidents were managed by a combination of analysis, redesign and practical management to achieve positive outcomes for the mine. On the south wall of the mine, a series of batter-scale wedge failures occurred in December 2007. Analysis of structure orientations and design changes aimed to minimise the risk of failure extending over multiple batters, while accepting a risk of further small-scale failures. Design changes were constrained by a culturally sensitive area (CSA) located south of the wall. As mining progressed, shallow wedge failures developed over multiple batters and cracks were observed 60m back from the pit crest, indicating that a large-scale wedge failure was developing. Movement increased in January 2009 as a result of significant rainfall. After considering several design options, the area was stabilised by a cut-back of the wall. Two multi-batter failures also occurred on the north wall as mining progressed through a structurally complex area. Both north wall failures began as small failures that progressively developed, and required a redesign of the wall below as well as practical management of safety aspects. The complex structural geology was difficult to predict ahead of mining, and required geotechnical input into design changes as mining progressed. All three failures potentially had significant impact for ore recovery, and were managed by a combination of analysis, redesign and operational management have resulted to achieve positive outcomes in a challenging mining environment.

May 1, 2010