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By A A. Ndiaye, A Galli

In a companion paper on current hedging practices in the mining industry (Armstrong et al, 2009) we showed that contrary to popular belief, mining groups are still using financial derivatives to hedge against foreign exchange risk and interest rate risk, and more recently against adverse changes in energy prices, notably the oil price. This paper presents a case study on a hypothetical gold mine to illustrate the impact that hedging policies could have on its profitability by reducing the downside risk due to adverse changes in the exchange rate and increases in fuel prices. The characteristics of the hypothetical mine have been set to reproduce those of a real gold deposit, the Kisladag mine that is currently being exploited by open pit methods in Turkey. This mine was selected because its feasibility study was available to the public. Geostatistical simulations are used to reproduce the inherent uncertainty on the recoverable reserves û stochastic simulations are used to generate the variability of the other three key sources of uncertainty: the gold price, the cost of energy and the exchange rate. A simple strategy based on straightforward vanilla options (puts and calls) was developed for hedging the last two risks, on the assumption that the company sells its production at the prevailing spot price.

Jan 1, 2009

The Stawell Goldfield, the westernmost of the main Victorian fields, has produced over a million and a quarter ounces of gold from one and three-quarter million tons of ore. The lodes are quartz reefs and sulphide bodies occurring in sediments of lower Ordovician or upper Cambrian age. The lodes are confined to a relatively narrow suite of weak rocks lying between stronger ones above and below and there is a definite relationship between fold structure, pitch and strength of folding and ore.LOCATION HISTORY AND PAST PRODUCTIONThe town of Stawell, situated 150 miles north-westerly from Melbourne on the main railway and road to Adelaide, is the most westerly of the main gold areas of Victoria. Alluvial gold was found at Pleasant Creek (now Stawell West) in 1853 and the usual "rush" followed. Numerous alluvial leads, some surface, others buried under up to 100 ft. of Tertiary sediments were worked. The alluvial gold was soon exhausted, but in 1857 gold-bearing reefs were found on the slopes of a prominent ridge on the northern edgeof the present town. Early reef mining was by small working parties mining to shallow depths only and treating their ore at public crushing plants. Some of the early returns were very high grade. The next stage was the amalgamation of claims and the formation of companies, with their own treatment plants. This stage continued till the last mine closed in 1921. These companies had, by present standards, small holdings and far too many shafts were sunk, resulting in less efficient prospecting and operation.Since 1921 there have been one or two small scale attempts to revive mining but without success. Of recent years Gold...

Jan 1, 1960

By Jørn H. Thomsen

This paper presents the experience gained and the lessons learned over the last decade within the numerous offshore foundation projects undertaken in the offshore waters of Denmark and Belgium by COWI A/S of Denmark. This experience derives from the close collaboration with, and interaction between the owners, contractors, and engineers in the various stages of project development. In turn, the experience draws on COWI's experience within foundation of large bridges world wide over half a century. Focus is on two pioneering gravity base foundation projects: ? Nysted in Denmark, currently the largest offshore windfarm worldwide with 72 Nos Bonus 2.3 MW turbines in water depths up to 10 m in the relatively benign inner Danish waters ? Thornton Bank in Belgium, where the first phase - comprising 6 Nos REpower 5MW-turbines of a total of 60 - are planned to be built in the rough North Sea in water depths exceeding 25 m.

Jan 1, 2013

This study explores two evolving 3D surveying technologies, photogrammetry and laser scanning, and applies them to deformation monitoring of rock faces and mine highwalls. A quantitative analysis focused on 3D coordinate determination is performed. Furthermore, a qualitative assessment directed at the practicality and viability of each system operating near a rock face or in a mining operation is undertaken to reveal one systemÆs deficiencies over the other. Two photogrammetric and four laser scanning surveys aimed at optimising accuracy and precision within a short period of data acquisition are conducted on the rock face at Organ Pipes National Park, Keilor, Victoria. The accuracy and repeatability of each survey is determined using a combination of iWitness photogrammetric, and Cyclone laser scanning software. The 3D coordinates of targets placed on the rock face are determined by triangulation and resection principles within a bundle adjustment. The coordinates determined by each system are then compared in a 3D transformation. Controlled deformation conditions are established to determine the precision to which each system can detect movement in the rock face. An object of known dimensions is placed on the rock face to simulate deformation. The relative orientation of images taken for the pre- and post-deformation photogrammetric surveys provide an overall 3D point accuracy of 1.255 mm and 1.804 mm respectively. A 3D transformation shows discrepancies of less than ¦22 mm (RMS) between the geometry of the photogrammetric and laser scanning models. Both systems are able to detect the simulated deformation to a precision of 50 mm. This work also identifies how to obtain millimetre accuracy for 3D coordinate determination of rock faces, thereby providing a quality data set for surveyors, geotechnical engineers and mine geologists. Photogrammetry is shown to be a mobile, time and cost-effective technique that is more amenable to mining operations than terrestrial laser scanning. However, both systems demonstrate that they are capable of detecting movements that may lead to failures in the rock face, and possibly endangering human life. The implications are significant for surveyors, geotechnical engineers and mine geologists working in mining operations where enhanced safety conditions, increased productivity and lower operational costs are important considerations.

Jan 1, 2009

The cost of power is an important matter to mining companies generally and this thought that the members of the Australasian Institute of Engineers, as well as the engineering and mining professions generally would be interested in any proposal for the reduction of that cost has led to the presentation of this paper.The writer trusts that the description will be found clear and increase the interest in this interesting subject. In the up of the electrical arrangements touched on in this paper, the author has had the able assistance of his friend Mr. Mars, to whom he offers his hearty thanks. The selection of the best class of power plant for a mine is a very difficult and large problem and it is quite out of place to dogmatise that anyone of the many systems that offer is better than another, eg that the all electrical is better than the partly direct steam-driven and partly electrical, or that a gas plant is better than a steam plant. Such a selection is one that calls for very careful and close consideration, in each particular case, of a large number of before it is possible to arrive at a proper decision.

Jan 1, 1912

The small scale alluvial gold mining industry in Papua New Guinea (PNG) is c.irrently the only form of small scale mining carried out in this country. It already contributes significantly to the economy with current production estimated at 2 000-2 500kg per year. Until recently, small scale alluvial gold mining has been confined to simple panning and sluicing of high grade alluvial and colluvial deposits. Traditionally the small scale miner in PNG has only worked gravels with gold grades in excess of 500mg/m3. Grades of this order are required to justify the hard physical labour involved ~n hand operated small scale mining methods. .he introduction of higher throughput technologies such as trommels fed by hydraulic excavators has the effect of altering what constitutes an economically viable deposit. Mechanised techniques allow for the consideration of grades of almost half that level. The potential and opportunities for utilising this type of small scale mechanised mining in PNG are enormous with large areas of ground with gold grades running in excess of 250mg/m3 and often up to 2000mg/m3 throughout the country. An assessment of the current operating economics of this technology in the PNG context is the principal objective of this paper. Small to medium scale mechanised mining can potentially contribute significantly to the PNG economy particularly as it lies within the react-, of many PNG businessmen. Its potential is currently somewhat limited by a general lack of infrastructure and is also constrained by socio-political factors.

Jan 1, 1991

By P. A. Davies

Paper presented at the conference: Risk assessment in the extractive industries, held in Exeter, UK, 23-24 March 1994, and first published London: IMM, 1994, preprint volume, 11pp., 15 refs. Hazards such as vibration, dust emission and fragment projection can result in an area called the Danger Zone being set around a blasting site. Traditionally Danger Zones have been set solely on the basis of consequences (e.g. based on the maximum distance of rock projection or expected ground vibration plus a defined safety margin). Advances in risk assessment and its growing acceptance as a safety management tool have led to the setting of Danger Zones based on both consequences and frequency of occurrence. This allows distances to be optimised on the basis of acceptable risk levels rather than the potential consequences of infrequent events. The setting of a flyrock Danger Zone is used to demonstrate a risk-based approach compared with a traditional consequence approach

Aug 1, 1995

A commercial Philips X-ray Fluorescence (X.R.F.) analyser was converted to an experimental instrument suitable for determination of the accuracy to be expected of X.R.F. on line analyses of concentrator slurries. Problems with stability of slurry sample presentation were eliminated by a number of minor modifications.By the use of multiple linear regression techniques instrument calibration equations including error terms were determined for copper flotation feed slurries. Results indicated that the accuracy of copper and iron analyses of flowing slurry samples could approach that of static pressed powder samples.Possible means of reducing the error terms to a level of at least that of pressed powdel' samples involve alternative methods of compensating for the per cent solids in the slurry, Design is under way for installation of a plant unit.

Jan 1, 1968

By R. A. Williams

Electrical impedance tomographic methods have been applied to a variety of mineral and chemical processes in the laboratory and on plant. This review paper surveys technical developments in measurement methods to enable quantitative extraction of key process information in the form of mapping of concentration profiles, mixture homogeneity and suspension velocity. The methods for determining velocity are summarized, since this is of especial interest when applied to opaque systems where most conventional optically based measurements fail. A recent significant development is the use of ultra-high speed measurement that now allows velocity vectors to be extracted for fast moving mixtures and fluids (up to several metres per second). New data are reported pertinent to low and high solids concentration flow in pipelines. Use of the methods offer improvements to design of such systems but also points to the use of tomographic electrical sensor as online flow measurement and fault detection. This offers new opportunities for applications and benefits in the design and monitoring of mineral slurries and sludges.

Jan 1, 2008

By P. H. Reynolds, S. Liaghat, A. Zarasvandi

"Darreh-Zerreshk and Ali-Abad are two relatively small porphyry copper-type deposits in Yazd Province in central Iran. They are located within the central Iranian volcano-plutonic belt, formed above the collisional convergent margin of the Iranian lithospheric plate from the late Eocene to the Miocene. This paper discusses the geochemical characteristics of the igneous rocks, and 40Ar/39Ar geochronology of plutons and alteration phases associated with the Darreh-Zerreshk and Ali-Abad deposits. The deposits are spatially associated with igneous complexes that consist of older and barren granites intruded by intermediate-composition granitoids, which are the carriers of Cu mineralization. The granites have relatively high content of Nb, Y, and K, a prominent negative Eu anomaly, and were probably derived from melting of, or contamination of mantle-derived magmas by, continental crust. Porphyritic diorites, quartz monzodiorites, and granodiorites show enrichment in light rare earth and large-ion lithophile elements, depletion in middle rare earth elements, and have no negative Eu anomaly. These intermediate-composition granitoids were derived from melting of the upper mantle or lower crust, and their differentiation was controlled partly by fractionation of hornblende. A pilot K/Ar whole-rock dating study suggests that the pre-ore granites were emplaced in the Oligocene. Dating by the 40Ar/39Ar method of nine samples of secondary biotite and sericitized rocks from drillcore within the mineralized and altered zones in both deposits yielded a well-defined age of ca. 16 Ma. This date is interpreted to be the time of hydrothermal alteration and of porphyry copper type mineralization in this part of Iran."

Jan 1, 2007

By Ihsan Berk Tulu

In the Analysis of Retreat Mining Pillar Stability (ARMPS) program, the magnitude of the abutment loading adjacent to a gob area is calculated using an ?abutment angle? concept. The extent of the abutment loading is determined solely as a function of depth from an empirically derived equation. In the recommended calibration method for LaModel, it was believed that the empirical equations for calculating the magnitude and extent of the abutment load, as used in ARMPS, were the best available methods for determining these critical overburden loading values. Therefore, similar calculations were implemented in the LaModel calibration method. However, the latest in situ stress measurements of abutment loading performed in the United States and Australia have shown that there can be significant deviations in the measured abutment magnitude and extent as compared to the predicted values from the empirical formulas used in ARMPS and LaModel. It seems reasonable that the overburden geology, depth, extraction panel width, and mining height should have a significant effect on the extent and magnitude of the abutment load. However, the current empirical formulas do not incorporate many of these significant parameters into determining the abutment load on the pillars. In this paper, stress measurements from US and Australian mines were back-analyzed by using analytical and numerical methods to investigate the measured abutment extent and loading. Ultimately, it was determined that the original empirical abutment extent formula in conjunction with the original ALPS square-decay stress distribution function was supported by the case histories in this paper. Also, for depths less than 900 ft, the average 21° abutment angle was supported by the case histories; however, at depths greater than 900 ft, the abutment angle was found to be significantly less than 21° and should be calculated with a new proposed equation.

Jan 1, 2012

By D. D. Banerjee, S. K. Kawatra, T. C. Eisele

A high calcium fluid-bed combustor ash has been shown to be an effective binder at dosages of 1 to 2% of the magnetite concentrate weight. Magnetite pellets 1.3 cm (1/2 inch) in diameter were produced with dry crushing strengths greater than 22.3 Newtons/pellet (5.0 pounds force/pellet), which is comparable to the results produced using conventional bentonite binder. The effectiveness of fly-ash-based binders was considerably improved when calcium chloride was added as an accelerator. Addition of calcium chloride at a rate of 0.1 to 0.2% of the total powder weight increased the strength of dried pellets by as much as 22% compared to the strength of pellets made using fly-ash without accelerators.

Feb 24, 1997

By John C. Stankus

To improve mine roof bolt performance, Jennmar Corporation commenced the design and development of a new roof control sys- tem. This new system designated "Insta'l Compression", not only improves safety, but is more cost efficient due to reduced amounts of resin needed per bolt installation. In this paper the research and development of this new system will be outlined. Much of the information presented will be actual test data from various underground operations in Alabama, Kentucky, and Pennsylvania. The development of this system will also cover the design of a new expansion shell, resin compression ring, anti- friction washer, and upgrading of material specifications.

Jan 1, 1990

In a previous paper the author showed that silver considerably delayed the recrystallisation of lead after cold work. The effect of antimony on the rate of recrystallisation of distorted lead was studied next, and the experiments performed, and the results obtained, are described in this paper. Electrolytic lead was used as a standard of comparison.It was also used to make the lead antimony alloys.This electrolytic lead contained 0.0005% total impurities.It was prepared from commercial lead by fire refining, followed by electrolysis and finally by vacuum casting. The process was described in the previous paper and the description need not be repeated here. PREPARATION OF LEAD - ANTIMONY ALLOYS.The steps taken to procure pure antimony are outlined in the appendix. To make the lead antimony alloys a mother alloy was prepared thus:-A quantity of the antimony (it was received in the powdered form) was placed in a pyrex glass tube, which was closed at one end. The antimony was washed with hot hydrochloric acid (1: 1), then with more dilute acid, then with distilled water, and finally with absolute alcohol; it was dried by warming and evacu,ating the tube. This should leave the antimony more nearly free from surface oxides.The amount of antimony was determined by weighing quickly; the appropriate amount of vacuum-cast electrolytic *Research Fellow, Dept. of Metallurgy, University of Melbourne.

Jan 1, 1936

By Pablo González, Rodolfo Espinosa, Jose-Luis Noyola, Sergio Cossio

"Minera Penmont, at La Herradura, is a joint venture between Industrias Peñoles, S.A. de C.V., and Newmont Mining Corporation. The mine is located in the northern Mexican state of Sonora. La Herradura consists of an open pit mine with two-stage crushing and heap leaching facility, the gold is recovered from the pregnant solution using the Merrill-Crowe process; production began in July 1998. La Herradura produces about 130,000 gold ounces per year, and treatment capacity is 22,000 tonnes/day. Ore mineralization occurs in a shear zone with quartz and native gold. Gold distribution is quite heterogeneous due to the coarse visible gold, in some coarser particles ranging from 100 to 600 microns.Sampling and assaying protocols where established during exploration and prior to starting up operations, based on nomographs developed from early heterogeneity tests. But, as the coarse gold problem became noticeable, it was necessary to develop new sampling protocols to have an acceptable relative standard deviation to control the fundamental error within ± 15%.An experimental program was developed and conducted on a selected ore block made of 195 blastholes; regular ore grade control procedures were applied to both sets of data to evaluate the difference in results between the protocol established prior to starting up operations (“existing”) and the new protocol (“leaching”). In the “existing” protocol, subsampling is done through riffle splitters, and coning and quartering. Fire assaying is used to estimate the gold content, on a 50 g sample. In the “leaching” protocol a 12,000 g sample was bottle rolled cyanide leached, and the leach residue was assayed on a 50 g sample using fire assaying, and a weighted average total gold content was calculated. Currently, a new alternative method is being evaluated, where sub-sampling is done using rotary splitters, and fire assay on a 50 g sample; in this “rotary sampling” protocol and for comparison purposes, gold assays were also repeated using the “leaching” protocol.Test results were compared in three groups < 0.30 g/t (below cut-off), 0.30 to 0.8 g/t, and >0.8 g/t. Overall. Results show that the protocol established prior to starting up operations underestimates the gold assays. Detailed technical results, alternative options, and their implications are discussed in the paper."

Jan 1, 2003

Current mine production planning, scheduling, and allocation of resources are based on mathematical programming models. In practice, the optimized solution cannot be attained without examining all possible combinations and permutations of the extraction sequence. Operations research methods have limited applications in large-scale surface mining operations because the number of variables becomes too large. The primary objective of this study is to develop and implement a hybrid simulation framework for the open pit scheduling problem. The paper investigates the dynamics of open pit geometry and the subsequent material movement as a continuous system described by time-dependent differential equations. The continuous open pit simulator (COPS) implemented in MATLAB, based on modified elliptical frustum is used to model the evolution of open pit geometry in time and space. Discrete open pit simulator (DOPS) mimics the periodic expansion of the open pit layouts. Function approximation of the discrete simulated push-backs provides the means to convert the set of partial differential equations (PDEs), capturing the dynamics of open pit layouts, to a system of ordinary differential equations (ODEs). Numerical integration with the Runge-Kutta scheme yields the trajectory of the pit geometry over time with the respective volume of materials and the net present value (NPV) of the mining operation. A case study of an iron ore mine with 114 000 blocks was carried out to verify and validate the model. The optimized pit limit was designed using Lerchs-Grossman?s algorithm. The best-case annual schedule, generated by the shells node in Whittle Four-X yielded an NPV of $449 million over a 21-year mine life at a discount rate of 10% per annum. DOPS best scenario out of 2 500 simulation iterations resulted in an NPV of $443 million and COPS yielded an NPV of $440 million over the same time span. The hybrid simulation model is the basis for future research using reinforcement learning based on goal-directed intelligent agents.

Jan 1, 2008

Your thoughts on the current status of the global minerals industries? The global economic, technological, social and political changes of the last two decades of the 20th century resulted in the emergence of a restructured minerals industry. This industry is now based on a new cost-cutting philosophy; utilization of modern technology; productivity gains rather than production tonnages; diversification of mineral markets; and globalization of exploration, mining and processing. Quantity and tons used to be the focus. The emphasis today is on remaining competitive in the marketplace by lowering per-unit production costs as much as possible. What factors and trends will impact the minerals industries in this, the 21st century? A number of parameters will impact minerals operations and shape the future sustainability and growth of the minerals industries. Increased demand for minerals will be accompanied by the demand for technical advancements. We will also see a continued emphasis on health and safety, environmental stewardship, and education and training. Let me elaborate.

Jan 1, 2002

By G. Caron, M. Boisclair

In 2005, CANMET-MMSL used its pool of expertise in ground control, open pit and underground mine engineering, mineral processing, information technology and applied mineralogy to launch a mine-to-mill research project. The objective of the project was to optimize the distribution of rock breakage energy among blasting, crushing and grinding activities, thereby maximizing the efficiency of energy utilization within comminution processes. Tests were designed to demonstrate that this approach could reduce the energy consumption, thus contributing to the reduction of Green House Gas (GHG) production in the Canadian mining industry. The project was accomplished in collaboration with DynoConsult and Dyno Nobel Canada Inc., a world leader in commercial explosives. Data analysis from 12 blasts (six with electronic and six with pyrotechnic detonators) in three different geological formations of a quarry (soft, medium and hard rock) shows that electronic blasting technology increases rock fragmentation by 15% (in hard rock) to 20% (in soft rock). A more uniform rock fragment size distribution is also obtained. The impact of the improved quality blast product on downstream processes of the quarry is a productivity increase of 5% in rock excavation and transportation, an energy reduction of 10% at the primary crusher and an increase of 15% of the primary crusher throughput. A soft-sensor prototype, based on primary crusher data (i.e. energy consumption, throughput, feed and product size distribution) and a simplified computerized process model, was developed for on-line measurement of the rock operating work index. Additionally, 385 rock samples and specimens were collected and prepared to determine the tensile and compressive strength of the rock material, to evaluate the aggregate crushing work index, and to examine the development of micro- and macro-fractures by means of binocular and SEM microscopy. Blast-induced rock damage was evaluated at the end of the laboratory testing program. Even though a reduction of rock hardness of around 30% was observed after blasting, the impact of the blasting method (i.e. use of electronic or pyrotechnic detonators) on the induced rock damage could not be observed. It is either absent or not perceptible with the accuracy of the measuring techniques and the number of samples analyzed.

Jan 1, 2007

By Wilson D, Kirkland J

Compressed air energy storage (CAES) uses low cost off-peak energy to compress air and pump it into pressurised underground storage. Expanding the air through a modified form of gas turbine generates electrical energy when required. While generating power, a CAES station consumes approximately one-third of the gas required for the equivalent installed capacity of a conventional gas turbine. Air can be stored in underground rock caverns, caverns in salt domes, or in aquifers. Existing CAES power stations use caverns mined out of salt domes. Aquifer storage for CAES has been proposed, but not yet implemented. The groundwater in the aquifer would be displaced during air injection and when required the air would be extracted using the natural hydro-static pressure. Victoria has no salt domes, but has aquifers onshore in the Gippsland Basin with geological dome structures of suitable depth, discovery pressure, porosity, permeability and caprock for CAES development. Field tests costing several million dollars would be required to prove the suitability. The most suitable aquifer is near Seaspray, where several dome structures exist. The aquifer, comprising of coarse sands capped by coal and mudstone, is some 600 metres deep with a hydrostatic pressure of 6.3 MPa. Computer simulation of injection and extraction of air from the aquifer under various combinations of horizontal and vertical wells, permeability and tubing head pressures indicated the largest aquifer structure had the capacity to sustain a 300 MW station. A well field comprising of 24 directionally driven wells with a horizontal exposure to the aquifer would achieve the air flow rates required. Using plant similar to that recently installed at McIntosh Alabama USA, would mean high capital costs compared to standard gas turbine plant. However, a review of modem gas turbines indicated that they could be easily and economically adaptated to CAES duty. Adapting a 120 MW gas turbine would give 344 MW output. A separate air compression plant would be used. Economic evaluations indicate that, for gas prices above $1.95 per GJ, a 344 MW CAES plant is more economic for intermediate/reserve load duty than simple cycle gas turbines.

Jan 1, 1992

[COUNCIL FOR 1991/92 President R.D. Beck President Elect JP. Hoffman Vice Presidents Senior Junior Dr H. Scott-Russell J.A. Cruise Immediate Past President Honorary Treasurer H.G. Mosenthal J.A. Cruise Members of Council Dr N.A. Barcza G.A. Brown B.R. Broekman Prof. RJ. Dippenaar B.R. Fleetwood* J.S. Freer P.R. Janisch P.J. Knottenbelt Dr J. Lurie R.P. Mohring *Co-opted K.C. Owen P.D.K. Robinson D.A.J. Ross-Watt P. Smith K.A. van Gessel DJ. van Niekerk P. van Schaardenburgh* CJ.C.J. van Vuuren* P.M.T. White]

Jan 1, 1992