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The basic model for the evaluation of any coal-bearing property is the cash flow projection, the major components of which are operating costs, capital charges, taxation and revenue. A range of cash flow projections can be produced by varying the assumptions which underlie the operating costs, by assuming various forms of capital funding, by making assumptions as to future taxation and by speculating upon the present and future market value of the product. As for any model, the informational inputs and assumptions are vital because, no matter how sophisticated the processing, the informational inputs and assumptions cannot be improved by it. That is to say, the validity of the output (the total evaluation itself) cannot be of greater certainty or significance than that of the inputs. The total evaluation can of course be expressed in a number of ways such as the Discounted Cash Flow (D.C.F.) Rate of Return, the Net Present Value or, the Payback Period. The foregoing statement may seem trite. However, it is necessary to be clear about it so as to avoid unnecessary complication and a preoccupation with techniques as opposed to the informational inputs and assumptions. So far as techniques are concerned, much has been written and said about them during the last decade. Most of us have heard, if not always understood, something about probabilistic models, Monte Carlo simulation, sensitivity and risk analysis to say nothing of inflationary costing and the relative merits of developing cash flows in terms of current or constant money. Those techniques have their value, particularly if they can serve to illuminate conclusions which could not be reached on a simple and even perhaps on an intuitive basis. I am, however, reminded of one major coal mining project in which 20 or more major variables were identified, many cash flow projections were run on the computer and a detailed sensitivity analysis was carried out. The major conclusion reached was that the D.C.F. Rate of Return was predominantly sensitive to variations in selling price and operating cost. Of course, the funding and fiscal elements of a cash flow projection have to be dealt with as rigorously as possible. However, in the development of any coal property, capital requirements and taxation are, in part at any rate, dependent upon the assumed operational parameters. If the latter are misjudged, the whole evaluation process is deeply affected. The same is true of revenue, in the sense that, the positive cash flow is a function of output as well as selling price and again, misjudgements about achievable and maintainable levels of production also deeply affect the final evaluation. I shall try to underline the fundamental influence of the technological factors upon lead times, capital costs, operating costs, taxation, funding and the achievable and maintainable levels of production. In turn, these affect the whole question of coal property evaluation and indeed, the likely success or failure of any coal mining venture. I make no apology therefore that this paper does not set out to discuss the more esoteric aspects of the evaluation process but rather, directs attention towards some of the informational inputs and assumptions which merit clarification and discussion.

Jan 1, 1975

By Williams ID

Ore and coke of various size fractions (1 to 11 mm) were packed in a column (146 ó) and resistance to air flow measured under a range of conditions. Results have shown that layered charging results in an interface having essentially a directional structure the thickness of which is directly proportional to the coke and ore size ratio and whose flow resistance exceeds that of the coke layer many times its thickness. Friction factor - Reynolds number plots showed large positive departure from the Ergun equation for all components investigated whilst functional analysis and that in terms of bed constants, showed a strong dependency of the pressure gradient on bed properties and the actual particle size as well as the size ratio. It is also shown that pressure gradient in mixed beds follows previously reported behaviour and that a directional interface offers higher resistance to flow than a mixed interface having the same volumetric ore/coke ratio. Significance of results to practice is discussed.

Jan 1, 1975

By Georgi H, Farquhar J. W, Lorrigan A. N

The potential for major new lenses of Volcanic Hosted Massive Sulphide (VHMS) beneath the existing Rosebery Deposit is extremely high. Recent deep drill hole intersections of massive sulphides, including 22 in true thickness at 24 per cent Zn, may significantly extend the life of the Rosebery Mine. The Rosebery Ore Deposit is located within Australia's most prospective VHMS mining district, the Mount Read Volcanic (MRV) arc of western Tasmania (Figure 1). The MRVs are a 10 - 15 krn wide arcuate belt of lavas, related intrusives and volcaniclastics. Rosebery is a major Cambrian volcanic hosted Zn-Pb-Cu-Ag-Au rich deposit which has been over-printed by Devonian deformation and granitoid alteration resulting in local rcmobilisation of the ore. The Rosebery Mine Sequence is composed of an east dipping and east facing, predominately felsic sequence of rhyo-dacitic volcaniclastics, epiclastics, sediments and shale lenses more than 500 in thick. This sequence is bounded by two, low angle (35 - 40¦), east dipping thrust faults, the Rosebery Fault to the west and the Mount Black Fault to the cast. The Rosebery Mine lithologies are summarised in the following table: Hangingwall (HW) Polymictic, quartz, feldspar-phyric epiclastics. Black Slates Graphitic, pyritic mudstones. Host Rocks Turbiditic mudstones and sandstones. Footwall (FW) Feldspar-phyric, pumiceous, mass-flow breccias. Cambrian, quartz-feldspar, porphyritic sills intrude this sequence at all levels. Thin, Jurassic, dolerite dykes also occur throughout the mine. Widespread quartz, sericite and chlorite alteration occurs in the FW. This alteration is manifested as quartz-augen schists beneath the orebody. The Host Rocks are pervasively altered with silica, sericite, chlorite and pyrite. Intense carbonate alteration occurs within the orebody, whereas chlorite and pyrite alteration is commonly concentrated directly beneath it. Cambrian volcanogenic alteration is over-printed by three major Devonian, granite-derived, assemblages. These are massive to quartz veined tourmaline, pyrrhotite-pyrite and magnetite-chalcopyrite. Though the Devonian granite has not been intersected in deep drill holes or in mine workings, there is good evidence that it exists within a kilometre of the deposit. The Rosebery orebody is structurally complex when compared to many other VHMS deposits. Evidence for Cambrian growth faulting has been found at the North End of the mine (B lens) where displacement of ore lenses occurs without corresponding displacement of the overlying Black Slates. A well defined cleavage exists throughout the mine, dipping at 28 to 50¦E. East dipping shear zones are also obvious in all parts of the mine workings and reverse movement is evident on many of these.

Jan 1, 1993

The undeniable fact of life in the next 25 years will be the increasing difficulty of the physical conditions of Australian orebodies facing future miners. We are all familiar with names such as the 3000 orebody at Mt Isa, Hilton, Century, Macarthur River, Cannington, and Ernest Henry. These projects represent a significant. proportion of the planned underground mine development in Australia. Moreover, many of these new orebodies are an order of magnitude more difficult to mine and process than their predecessors. Extraction will be from deeper and potentially more hazardous working environments. Occupational health and safety considerations will place unprecedented demands upon mine operators and technology providers of the future.

Jan 1, 1994

By Sorokin M, Komkov A, Fyodorov A

The Vanyukov Process is a high-intensity smelting system that has been proven over the last 20 years for various metallurgical operations including the smelting of copper, nickel, copper-zinc, antimony concentrates, municipal waste treatment and pig-iron production. Extensive pilot plant tests on copper and copper-nickel concentrates have provided information for the design of the commercial furnaces. The thermodynamic analysis, design idea and the data obtained from commercial furnaces have shown that Vanyukov Process would be the best choice to smelt copper-nickel and nickel sulphide concentrates as well as oxide nickel ores.

Jan 1, 1996

By G L. Simmons, K M. LeVier, R Kappes

The low potential hydrophobic state of pyrite in amyl xanthate (PAX) flotation with nitrogen is of particular interest with regard to the N2TEC flotation technology currently being used for the recovery of auriferous pyrite at NewmontÆs Lone Tree Plant in Nevada. Initially, the N2TEC system had been found to operate satisfactorily, but cyanide in the flotation mill water appeared to be responsible for a loss in pyrite recovery. This supposition was confirmed with laboratory experiments, and a program was initiated to study flotation chemistry variables by electrochemically controlled contact angle measurements. Experimental results show that activation of pyrite in such cyanide solutions can be achieved more effectively with lead than with copper. Subsequently, based on these fundamental studies, significant improvement at the Lone Tree Plant was achieved by lead activation, in which case the recovery increased to expected levels. The effect of activator is particularly significant not only with respect to pyrite depression by residual cyanide, but also with respect to collector (PAX) consumption and the initial state of the pyrite surface. Experimental results show the importance of the pyrite surface state and the rather interesting features of the activation process.

Jan 1, 2005

By K Biegaj

During the author’s 25+ year career in mine management in various parts of the world (mostly in Australia), the author has been privileged to live and work in mining towns (not FIFO) for more than 20 years. And has personally observed other people from the mining industry carrying out work at home in an unsafe manner, eg pushing lawn mowers whilst wearing thongs or performing electrical jobs whilst standing on aluminium ladders, as well as many others. It is common that injuries sustained at home whilst on break are not reported upon arrival back on a mine site. A large number of compensation claims for injuries at work, which in fact had been sustained at home, come at substantial extra costs to mining companies.

May 5, 2022

It is always difficult to sum up an open forum adequately and instantaneously, so, with the privilege of hindsight, and also with some time to reflect, I am exercising the Chairman's prerogative to put together my view of the overall conclusions. Hopefully, these may provide a focus for each Institute to formulate its own programme with respect to mineral industry education. First, in answer to the question, "Should there be Schools of Mines?", there was a very clear 'yes'. However, I reiterate what I said in the introduction to this forum, specific professional education for the mineral industry exists only because the mineral industry sees a need and wants it. If the mineral industry should decide that it does not need professionals with specific mineral industry training, then such training will cease to exist. As alluded by Dr Hackett, if such training ceases to exist, one must then question the need for Institutes of Mining and Metallurgy. Now, there's some food for thought! Specialist schools of mines (metallurgy and geology) can only exist in an environment of genuine interaction with, and support by, industry. For their part, schools of mines, used here in a generic sense, require leadership that is strong but responsive to industry needs. It is the leader that puts his stamp on a school, and, to a large extent, determines whether that school is 'good' or only 'mediocre'.

Jan 1, 1986

Quality Assurance has become a buzzword amongst governments and industry. Notwithstanding the world class work done by its committees in developing codes of ethics and of practice in field geological handbooks, mining cost estimation handbooks, and reserve estimation, the AusIMM could better prepare its membership for QA. MICA could provide a simple set of guidelines to enable consultant members to develop their own QA procedures manual conforming to AusIMM Codes and to IS09003, and AS3903.

Jan 1, 1994

By J Johansson, J Lööw

There are many reports about how the new technology will affect our work, sometimes they are utopian but often dystopian. Most of the visions describe the industrial work, while the work of the managers does not seem to be affected. In this article, the authors will discuss how the new technology within the concept of Mining 4.0 changes the conditions for leadership and the work of managers in a modern mining industry.

Sep 1, 2024

By R Ulusay

Rock mechanics involves characterizing the mechanical properties and behaviour of rock material and the natural discontinuities of the rock mass, while rock engineering is concerned with specific engineering circumstances, for example, how much load will the rock support and whether reinforcement is necessary. Rock engineering models developed depend considerably on the input data such as boundary conditions, the properties of rock material and rock mass. Correct evaluation of these properties frequently requires laboratory and in-situ tests, supplemented with a high degree of experience and judgment. Accordingly, since 1974, the ISRM Commission on Testing Methods has spent considerable effort in developing a succession of the ISRM Suggested Methods (SMs) for different aspects of rock mechanics and rock engineering with the contribution of a number of working groups and cooperation of some other ISRM Commissions. This paper emphasizes the need and importance of standardization of rock testing methods within the context of the ISRM SMs, gives a guideline for developing ISRM SMs and finally discusses on some implementation and contractual issues associated with rock testing and experienced in practice, and briefly introduces main future trends in rock characterization, testing and monitoring. This is an extended abstract only. CITATION:Ulusay, R, 2018. Standardisation on rock characterisation, testing and monitoring with emphasis on ISRM suggested methods, practical issues and difficulties, and future trends, in Proceedings The Fourth Australasian Ground Control in Mining Conference (AusRock), pp 17–18 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 30, 2018

By I Levy

At our Monkland Mine at Gympie, we operate a deep, narrow vein gold mine using hand held equipment, rail mounted haulage and narrow shafts. This is in many respects the old-fashioned way and is well suited most of the orebody geometry exposed to-date. We have also commenced some long hole stoping and we use alimaks for some jobs. The heart of our particular mining style is the employment and retention of experienced miners with remuneration based on productivity. We do our planning/monitoring/supervision down to the level of daily individual productivity. In focussing on cycles per se, we have chosen not to talk about drill and blast cycles or cycles for mine development, stope preparation or drawdown and haulage. Instead we have stepped right back from the operation as presently run and have adopted a very broad view of the mining cycle. We will in this presentation intertwine the ebb and flow of, exploration, project sponsorship, development, production and cash returns to owners. The time line considered spans both history and predicted future.

Jan 1, 1998

The Mount Whaleback iron ore deposit at Newman, Western Australia comprises the largest known continuous iron ore deposit in Australia, originally with a Measured Resource in excess of 1700 Mt of hematite ore. The deposit occurs within the Hamersley Province which forms part of the Pilbara Block in the NW of Western Australia (Figure 1). The Mount Whaleback iron ore deposit, together with a number of discrete iron ore bearing satellite orebodies in the Newman district, contributes to the Newman Lump and Fines products. Extensive quality control systems are utilised from mining to shipping to ensure that each product meets a narrow geochemical target grade range.

Jan 1, 1997

Good morning and thank you for the opportunity to address this yearÆs New Zealand Minerals Conference.   As you have already heard from the Associate Minister of Energy, the Government believes that the minerals industry is an important part of our economy. In particular, our coal and lignite resources have the potential to play an important role in New ZealandÆs energy sector as both a primary fuel and as a means to produce electricity.   The Government has taken a keen interest in the primary fuel sector given the declining reserves of natural gas sector. The energy sector is a key driver of economic growth and it is therefore critical that we have a reliable supply of primary fuel as part of the energy mix.   In a global sense, New Zealand is like many other countries regarding the need to secure energy for the future. Natural gas will be a key bridging fuel in the transition from an energy market based on fossil fuels to one based on renewables over the next century.   However, natural gas as a solution to this energy transition has some pragmatic limitations for New Zealand. There is uncertainty as to when new domestic reserves of gas can be discovered and developed. And the alternative of imported LNG poses a number of costs and risks to the economy.   New ZealandÆs coal resources are vast-estimated to be enough to last hundreds of years at the current rate of extraction. The main question is can extraction be increased and sustained to meet the demand of domestic power producers and at the same time meet commitments to lucrative international markets?   At this point it is appropriate for me to place coal into context with Governments overarching policy objectives for energy. The Government has stated objectives for the energy sector emphasising energy efficiency and an increased focus of renewable energy, while still ensuring security of supply and certainty as to energy costs and risk. Coal certainly can make a contribution to these objectives going forward.

Jan 1, 2005

By E R. Ramanaidou

Two unknown iron ore samples were found by a geologist from Ok Tedi Mining Limited copper, gold and silver mine at an old wharf site dedicated to a 1970s drilling program in Lake Murray in Papua New Guinea (PNG). These iron ore samples could not come from a PNG mine and it was decided that a study should be undertaken to understand their origin. Lake Murray is the largest lake in PNG with a total surface area of 647 km2. It has a high-water 2038 km long convoluted shoreline with seasonal water level changes (Osborne, Kyle and Abramski, 1987) and it is located around 200 km south of the Ok Tedi mine (5°13’25”S, 141°09’37”E). The petrology, mineralogy and chemistry of two Fe samples (Ok Tedi 1 and Ok Tedi 2) included optical microscopy, X-ray fluorescence (XRF) analysis and a comparison with worldwide iron ore deposits. The two rock samples were cut to produce two subsamples: (1) a polished thin section; and (2) a pulp that was used for XRF analysis including major, minor and trace elements. Ok Tedi 1 and Ok Tedi 2 were petrologically and chemically compared to a range of known iron ore samples from Australia, Brazil and South Africa. The petrological study of Ok Tedi 1 indicates that it is composed of granoblastic recrystallised hematite and the overall texture is uniform without any obvious original ‘sedimentary’ texture. Ok Tedi 2 is a ‘specular’ or platy hematite with recrystallised and fused grains. Using both petrological and chemical clues, the two Ok Tedi samples likely originated from the Iron Quadrangle in Brazil.

Sep 18, 2023

East Nelson and Marlborough, in the northeast of the South Island, contain a wide variety of metallic minerals, including gold, silver, copper, chromite, antimony and scheelite, but no sustained metallic mining industry has evolved. Gold was the most sought-after mineral during the first century of European settlement and numerous discoveries were made but these failed to live up to expectations. While traces of gold are widespread in east Nelson, including in quartz veins in Nelson City, no payable deposits were found. In Marlborough the probability of a gold discovery had initially seemed remote but all this changed with the finding of rich deposits in the bed of the Wakamarina River in 1864, which provided a much-needed boost to the provincial economy. However, the decline of gold mining in Marlborough began virtually as soon as it had commenced. Extensive floods in 1865 hastened the exodus of miners to the profitable new fields of the West Coast.

Jan 1, 1993

By A C. Robertson

Over the past decade there has been continual change in the way that mines have been managed and the component roles of those people who make up the total mine management system. Major issues have included the change in the business structure of mining companies, the change in on-site infrastructure, increased personal liability of managers for the safety and health of employees and increasing social and environmental pressures on managers and their staff. This paper looks at the changing roles of two of the many groups of professionals associated with the mining industry - the equipment supplier and the mining consultant. The profiles of the ACME Group Pty Ltd, suppliers of ventilation equipment and ancillary canvas and plastic products to the mining and construction industry, and Tennent, Isokangas Pty Ltd, Consulting Mining Engineers, are presented.

Jan 1, 1998

During the 1998/99 Asian crisis Solid Energy's export revenues collapsed from over US$70M to under US$40M. Simultaneously, domestic market uncertainty led to decreases in volumes and prices. A major new underground mine was not technically viable, and was closed, and several other mines were marginal. Less than two years later, Solid Energy and its JV partner closed a second new underground mine. The company was in financial crisis, and reported an $86M loss for 1998/99. After refinancing with stringent workout conditions it still had minimal returns due to low prices, unaffordable transportation costs and huge unrealised FX losses as the NZ dollar fell 40 per cent in value. The obvious scenario was to æcash upÆ û complete extraction at remaining mines, sell off any viable parts of the business, pay off debt and wind the company down.In 2002 Solid Energy has completed its recovery. Although margins remain slim and volatile in both export and domestic markets, it is achieving record volumes and revenues. It has paid off its shareholder loan, has minimal remaining FX losses, and cashflow is allowing further mine and infrastructure development. The key to the turnaround has been implementation of rigorous planning, analysis and decision-making in all aspects of the business. The company has a comprehensive, rolling 20-year plan used annually to update rolling five year and annual business plans. Solid Energy augments strong line management operations with rigorous standards and processes for mine planning and development, operational decision-making, and functional support. Detailed, quantitative risk analysis is used in all aspects of the business and allows comprehensive integration of opportunity and risk management across all activities in the company.Coal mining is widely perceived as an æold-economyÆ industry. But, like other successful æold economyÆ companies, the information systems and management processes used by Solid Energy are as leading edge as any in the high-tech sector. They are the key to managing to add and sustain maximum value for a company that has access to coal resources sufficient for hundreds of years.

Jan 1, 2002

By Revy T

A testwork program aimed to improve the assaying of underground face samples established that for an Accelerated Cyanidation Extraction using the LeachWELLTM 60X catalyst, followed by an Aqua Regia finish (to quantify non-cyanide-extractable gold): ò Assay results (including the aqua regia finish) from a full set of samples from one underground face can be returned within four hours. ò The reagent dose to make the method simple and 'bullet-proof' is 8 gm LeachWELLTM 60X and 20 gm NaCN per 200 gm sample (30 per cent solids). Pulverising is to 90 per cent passing 75 micron (compared to the standard of 90 per cent passing 150 micron), and cyanidation is completed within one hour - however both might be further optimised. ò The LeachWELLTM/Aqua Regia results demonstrate that Fire Assays suffer from a significant nugget effect which makes the Fire Assay data relatively unreliable. ò Original costs, specific to Bannockburn (viz including an Aqua Regia finish), handling approximately 20 000 to 25 000 per annum is estimated to be $5.40, ie about one-third less than fire assaying. Optimising is further reducing these costs. It is estimated that the LeachWELLT"'/Aqua Regia assay procedure has reduced the probable error limits of any given assay of this ore from the range 0.74x to 1.36x for Fire Assay, to an appreciably smaller range of 0.90x to 1.11x. Thus for a cut-off grade of 1.60 g Au/t, samples with Fire Assays ranging up to 2.18 g Au/t have 25 per cent chance of being below cut-off, while samples with Fire Assays as low as 1.18 g Au/t have an equal chance of actually exceeding cut-off grade. This 1 g Au/t range in uncertainty is generally unacceptable for many practicalgrade/tonnage relationships. By contrast, using LeachWELLTM + Aqua Regia assays, the estimated corresponding limits are 1.44 g Au/t and 1.78 g Auk respectively - a far more tolerable 0.34 g Au/t range of uncertainty. Subsequent data has demonstrated that sufficient accuracy for grade control is achieved by Accelerated Cyanidation alone, further halving the cost of assays.

Jan 1, 1994

The old Trekelano mining area is situated in the Cloncurry Gold and Mineral Field 14 km east-south-east of Duchess. It connected with the main Cloncurry-Dajarra railway line by a private line from Juenburra, a distance of 10 km. The distance by rail from Townsville is 561 km. The area was first mentioned circa 1902 - 1903 when a very short report said, that a Tony Allis had taken a parcel of copper ore out of a mine which, he called æThe InheritedÆ. After that report, nothing further was printed until about 1906, when traces of copper were noticed on a wagon track going to Kiama Well. The Trekelano deposit did not outcrop, with the cap covered by about two metres of soil. The deposit was named after an early pastoral holding. The early prospectors were however disappointed by TrekelanoÆs low copper grades, approximately five per cent Cu. This is understandable when, in those days, about 25 per cent was the cut-off grade for mines in the district. Meanwhile, The Hampden Mining and Smelting Company were constructing a smelter to treat their sulphide ores at Kuradala that was replacing their high grade oxides ore. By about 1910, the Hampden Mining and Smelting Company was experiencing smelting problems, and needed suitable oxidised copper ore to blend with the Kuradala pyritic ore. Someone must have remembered the Trekelano low-grade oxides, resulting in agreement to mine and cart the ore to Duchess, from where it was railed to Hampden, as Kuradala was known at that time.

Jan 1, 1998