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In mineral asset valuation the use of any valuation method requires the input of competent and independent technical professionals. A resource valuation must be as transparent as possible to allow others to assess the validity of their underlying assumptions. Materiality is a dominant factor in all valuations and a valuer should set out the basis for the subjective decisions made in this regard. Any valuation methodology must comply with the requirements of the law, practice notes and guidelines issued by the various relevant authorities and professional bodies. The valuation methodology chosen to value a mineral asset depends upon the amount of data available on that asset and the reliance that can be placed upon those data. Mineral assets generally fall into one of three broad categories, depending upon their state of development, ie whether they are at the exploration, development or operating stage. Naturally there are transition phases. Hence, there are ""Grass Roots"" Exploration Areas and Advanced Exploration Prospects; Pre-Development Projects and Developing Mines; and Operating Mines. The features of each of these mineral asset status categories are described, mainly in terms of the confidence in the contained identified Resources/ Reserves. The various subjective methodologies available for the valuation of ""Grass Roots"" Exploration Areas and Advanced Exploration Prospects -are specifically reviewed. The pitfalls in adopting a ""recipe"" approach are noted. It is the author's view that the Expected Value Method (based on the probability adjustment of the output of a Discounted Cash Flow/ Net Present Value model) has little application in the valuation of exploration mineral assets, so it is only briefly addressed. The methodologies reviewed are listed below. ò Multiple of Exploration Expenditure Method (expenditure based). ò Joint Venture Terms Method (expenditure based). ò Geoscience Rating Methods (eg Kilburn - area based). ò Comparable Market Value Method (real estate based). ò Rules of Thumb (eg $/Resource or production unit; % of in situ value). Some recent Prospectuses are used to provide examples of their misinterpretation and misapplication.

Jan 1, 1994

There is very little in Australian mining law that sets out the rights of mining tenement and exploration licence holders as against other parties who wish to carry out ground or aerial surveillance over those areas.There have already been several legal actions arising out of this lack, and more can be expected as the public places more rigorous constraints on corporate and individual behaviour. Field personnel, who are mainly fairly junior and less experienced, are entitled to some guidance from the minerals industry, guidance which up to now appears to have been either lacking or covering such a wide range of standards from corporation to corporation as to be virtually useless.Because each State writes its own laws there is no consistency, and the laws generally are lagging behind developments in the industry. In particular, the practice of granting mining tenements for sporadic exploration, a practice that is a leftover from much earlier mining law, has dotted the Australian continent with unattended and unmarked or poorly marked tenements that are difficult to find but confer on the holder prior rights to the minerals under them. Entry onto those areas in most jurisdictions is an offence and their existence compromises the efforts of regional explorers.This clearly unsatisfactory situation requires remedying, which is the purpose of these proposals. A more systematic approach to the granting of reconnaissance, regional and detailed exploration, mining, and retention rights will eliminate much of the problem. For the rest, a code of practice needs to be adopted as soon as possible.

Jan 1, 1996

The investment worth of a mineral deposit can only be realistically evaluated in relation to specific engineering design criteria, which fully details the proposed method of exploitation. These criteria have not in general been taken into serious consideration when leaseholders have reported reserves in the past. In fact, many "reserve" figures quoted are probably more correctly classified as geological resources. The industry now recognises that it is necessary to take into consideration not only grade and mill recovery factors, but also likely mining and processing costs as well as the current market price for the commodity. Once having estimated those costs which are applicable to the resource under study, they can be deducted from the gross inherent worth of the orebody to result in an estimate of the potential net revenue. Through a process of interactive trial mine designs and evaluation, reserves can be quantified to provide an estimate of the available recoverable economic reserves given a set of assumed cost and operational parameters. It follows then, that the available economic reserve recoverable from a given resource will vary from time-to-time as cost and price factors vary in response to changing technology and economic factors. A methodology is described which may be used to derive economic recoverable reserves based on a computerised model of the geological resource data and appropriate economic and operational cost algorithms. Examples are provided from both coal and gold studies to illustrate the impact of economic criteria on the magnitude of the reserve figure reported for each project.

Jan 1, 1987

Some of the major factors affecting ore reserve estimation in gold mines are discussed together with their impact on computational methods.The major priority in ore reserve estimation is to get sampling and geological problems resolved. Poor basic information cannot be remedied by mathematical methods.Generally the more complex a deposit becomes the greater the need for subjective assessment and the less applicable are more complex ore reserve methodologies.

Jan 1, 1984

By Hellsten K, Eshuys E

The best long-term approach to exploration involves the use of extensive quality data and the integration of many different factors, methods and techniques. The successful exploration manager needs to integrate people, area selection and exploration methods, with the use of descriptive and genetic geological models. Based on a syn-metamorphic genetic model for Archaean gold, successful exploration in Western Australia requires the integration of data on anomalous gold, alteration, lithology and structure. Many other parameters such as geophysics, geochemistry and regolith studies provide additional, indirect information that needs to be integrated into the overall exploration programme. Timely access to research findings and ability to integrate these into immediate exploration has contributed considerably to the success of the gold industry in Western Australia since 1980. Extensive and deeper drilling, and the ability of computers to handle the volume of data generated have enabled effective testing of many more geological targets.

Jan 1, 1996

Part of a four-year course in metallurgy, dealing with metallurgical process engineering, was designed for students to acquire knowledge and skill from physical science, metallurgy, process engineering, and social science. Principles of education, and guidelines obtained from a study of professional practice, indicated that students may learn effectively through a planned sequence of problem-solving exercises based on the diverse functions of metallurgists in industry. The more important characteristics of the curriculum and a few illustrations of the problems are included. An outline is given of the current procedures used to develop parts of the curriculum, and of the students' diffic- ulties and achievements.

Jan 1, 1984

By C Reed

Titaniferous magnetite deposits are a significant source of vanadium for use in high strength steel alloying and other chemical applications. The mineralogy of the deposits varies markedly and the ore characteristics strongly influence the process route selected and the metallurgical outcomes. Characterisation of the ores reveals the presence of magnetite, ilmenite and other minerals such as spinel hematite and goethite with variable degrees of weathering along with weathered products of host rock. The standard processing route is to crush, grind and magnetically recover a concentrate for salt roasting to produce a soluble vanadate. Ore beneficiation is practised to generate an iron based mineral concentrate containing much of the vanadium with low silica levels of two per cent. Typical processing problems encountered are fine liberation size, over grinding of the magnetite and variable response to magnetic separation resulting from the weathering profile. Beneficiation options are restricted, and generally focused on producing a combined iron and titanium rich concentrate containing vanadium due to the fact that ilmenite and magnetite and their products of weathering are magnetic and have similar specific gravities making their separation difficult. The ilmenite usually contains low levels of vanadium making its separation highly desirable from the iron mineralisation containing higher levels of vanadium. Salt roasting of vanadium ores followed by water leaching has been the standard processing route for many years. The cost of suitable sodium salts, availability of capital and increasing energy costs and energy availability are critical factors in determining the viability of aspiring vanadium producers. To date, only Windimurra has acquired full capital funding, secured energy and sodium salt supplies at suitable cost that enable the construction of the project. Low overall recoveries of vanadium to concentrate roasting at up to 1200¦C are critical cost issues. In this paper, factors influencing the recovery of vanadium are reviewed and emerging processing trends explored. The important features of the processing of titaniferous magnetites have been condensed from the literature, published works, company websites, our own work and personal communication.

Jan 1, 2008

By Randall C

Energy studies have been undertaken at a number of open coal mines in the Hunter valley. A range of energy efficiency benchmarks and targets have been established, which, when applied across coal mines, will assist in leading to a significant improvement in energy efficiency in the coal mining industry in NSW, thereby leading to an improvement in environmental performance. Typically, energy efficiency improvements of 20 per cent and higher appear possible at many mines leading to a commensurate reduction in this controllable operating cost, ie energy. On the basis that annual energy costs and net profit are similar for many mines, a reduction in energy costs by 20 per cent will lead to increase of 20 per cent in net profit.

Jan 1, 1995

By R E. Hobbs, O Grabandt, C Das

Mine hoisting is carried out from depths of up to 4 km. At extreme depths, the ropes are so heavy that a large part of their capacity is employed in lifting themselves. Consequently, deep mines have an intermediate winding station. Even at lesser depths, the weight of steel wire rope reduces the possible payload. Of course, steel wire ropes have, over the years, demonstrated exceptional reliability and acceptable lifetimes. The use of steel is supported by well established operating rules and sound NDT methods. However, lightweight ropes made from synthetic fibres could be of great benefit to the industry, with the prospect of eliminating two-stage winding and substantially increasing the payload. Initial tests, in cycling over sheaves, have demonstrated that an aramid co-polymer fibre, Technora« is a potential candidate for this type of service. This paper presents results of testing carried out on aramid co-polymer and other synthetic fibre ropes. These results hold out the prospect of exceptionally long lives. Possible NDT methods are explored including optical fibres with optical time domain reflectometry or with Brillouin scattering, plus a method based on carbon fibre continuity. The introduction of aramid co-polymer ropes will require extensive testing and a program is proposed in the format of a Joint Industry Project.

Jan 1, 2005

Projected cooling requirements for ERPM led to the first proposals for the large- scale use of ice for mine cooling in the early 1980's. Following successful research into ice conveying and ice melting a large ice plant was commissioned at Harmony in 1985 and a much larger 6000 ton per day plant is presently under construction at ERPM. A brief description of the mining project is given, followed by general descriptions of the surface ice plants and the ice conveying system, the systems for using the ice for mine cooling, and the control of the whole ice cooling System.

Jan 1, 1988

My closest personal connection with the problems of rehabilitation comes from two years spent on a project at Weipa. At the beginning I am fairly certain that the engineers did not understand the mental processes of the ecologist they were dealing with. I am absolutely certain that the ecologist did not understand the minds of the engineers. This form of the two cultures problem is the root of some of the matters that lie behind this lecture. It is possible to establish a stabilising cover of vegetation on virtually any land surface, short of a cliff. While the biologist knows this he also knows that the physical and chemical nature of a given acre of land combines with climate to define quite sharply just what plants can be grown there. In the case of land after mining the range of plants may be quite limited. The engineer, and his masters in the accounting section, seem (in my experience) to expect that rehabilitation can be carried on with equal speed and facility in any location. This belief commonly leads to a situation where rehabilitation is not considered until mining is well under way. True, the mine must be proved as an assured profit- earner before money can be justified for the non-productive (to the miner) expense of rehabilitation. But when the miner finally starts rehabilitation he does not always get a convincing and speedy result. Furthermore, the failure may not be easy to overcome. This is even more likely to be the sequence of events if the miner wants, or is obliged, to specify the exact type of vegetation to be produced, e. g. commercial forest, pasture,' or the original native vegetation.

Jan 1, 1971

By Torres F, Cerda I, Gimenez P, Gonzalez G, Castelli L

Slurry density measurement, specially in cyclone feed streams, is fundamental to grinding circuit control. With the purpose of increasing the availability of such a measurement, the design of a soft-sensor in an actual grinding plant is addressed in this paper. The system is designed to substitute the momentary unavailability of the real density sensor, either because it has failed or because it has been removed for any other reason. The ARMAX model structure is determined using the stepwise regression method. Starting with a list of the candidate variables, the method selects, one by one, and in a systematic manner the variables which best model the measurement to be replaced, choosing them from the set of presumably correlated candidate variables. In this paper not only the single measurements are included in the list of candidates, but also combinations of such measurements having physical significance. A phenomenological model has been built with the purpose of determining these combinations. It turned out that in most of the cases the components of combined measurements having physical significance were selected by the stepwise regression method, instead of the single measurements. Actual grinding plant data is used to determine the model structure, to estimate the model parameters and to test the predictive capability of the developed soft-sensors. Good results are shown to be obtained during periods of up to 30 hours of the density soft-sensor operation.

Jan 1, 1995

By Teniswood CF, Sheppard I, Mason LG

An industry initiated project, sponsored by the National Energy Research Development and Demonstration Council, has worked for two years in developing design guidelines for underground coal mining machinery.Continuous miners and shuttle cars were selected for the initial development of design guidelines as these machines were linked with 7500 lost workdays and 490 reported injuries during the preceding two years.

Jan 1, 1991

Coal mining ceased at Strongman Mine this year after 70 years of production. Underground mining finished in 2003 and opencast methods began in 1998. During the life of the mine, 8 million tonnes of coal was extracted from two underground mines and 1.2 million tonnes removed through opencast methods. Strongman Mine is within the Grey Coal Fields; various seams have been extracted from the Rewanui Coal Measures. Coal extracted was predominantly of thermal or semi-soft specifications and characterised by low sulphur and low ash.   The area has steep topography, high rainfall (>3000 mm/yr) and is particularly exposed to westerly quarter winds. Strongman 1 and 2 underground mines are located in the steep, narrow valley which leads to the Strongman Opencast at the top of the valley. Subsidence from underground mining combined with spontaneous combustion, has resulted in an underground fire which has had substantial surface effects. Opencast mining in the steep topography resulted in several landslides at the perimeters of the site. These factors, along with water management, topsoil management and erosion control have added to the complexity of rehabilitating the site.   Rehabilitation of the site is well underway, including infrastructure removal, final landform creation and revegetation of the Strongman Opencast footprint (~45 hectares). Some innovative methods of rehabilitation have been trialled. Successful trials such as helicopter-seeding and moss hydro-seeding on highwalls are now routinely used along with traditional revegetation practices. 18 hectares disturbed land has been replanted with 88 000 seedlings, and another 200 000 seedlings are scheduled for planting over the three years. Fire management is an ongoing challenge; however thermal photography shows a steady decrease in hot areas which have been contained by grout curtains.   Mine closure is some time away and will occur after all standards set by Solid Energy and regulatory bodies are achieved.

Jan 1, 2006

The author presents various procedures for the choice of dri-ving systems for mining, including the method of indeterminate Lagrange factors and linear programming.The possible application of the points-awarding method is demonstrated.It allows for taking into account both surd and commensurable characteristics of a driving system for mining. Also, the method of economic efficiency factors is outlined.All these methods make possible the best choice of a driving system, from the as-pect of electric energy saving. Two examples are given.

Jan 1, 1985

Future depth and production limitations of an ore hoisting system are fixed by its initial design criteria. There is little scope to extend these limitations once installation is completed. Depth and production rate upgrades from the initial duty to the hoistÆs practical limitations require capital expenditure in stages, each of which can be defined when assessing the initial system design criteria. A means of presenting and assessing the design criteria, the limiting factors in each option and the relative present and future capital costs is necessary to arrive at a solution that delivers the best value to the mine. Application of this technique to recent friction winder installations and upgrades in the Australian mining industry is of particular interest; however, the analysis methods are also applicable to drum hoists. It is usual to specify a minimum hoisting capacity and depth, based on mine ore handling design and production needs. The final hoist depth and production rate are usually a result of the initial hoist design and hence it is useful from the outset to specify a required production versus depth envelope for the mine. Technical solutions can then be modelled within this envelope at their initial and final duties and a comparative analysis made against the cost of installing and progressively upgrading each solution. Understanding the factors that constrain each solution to a maximum production rate at a given depth is important, as the costs of overcoming limiting parameters such as rope tread pressure and motor power can be significant. The task of understanding and evaluating the options open to the hoisting system designer is simplified using this approach. Communicating the results of a multi-dimensional problem such as hoist specification is also made easier using the graphical methods inherent in the analysis.

Jan 1, 2005

By Musa MA

Tunnel excavation for sewer construction long remained a labour intensive, hazardous and costly operation. Even with the of mechanical and semi-mechanical shields for tunnel excavation, many problems remained until recently. In the past decade, however, the technology has changed dramatically which has made possible the use of advanced tunnelling methods for sewer construction.

Jan 1, 1993

Performance driver trees or KPI trees are reasonably well-known tools for analysing performance in mining operations. However, the tools are often not user friendly. They may be technically correct but they are often clunky. This means they donÆt promote simple management decision-making and donÆt encourage businesses to make them an integrated part of optimising their operations. This paper describes a simple but effective driver tree process and tool that has been successfully implemented and used to aid decision making across a number of mining and processing operations. The important aspects of employing driver trees to assist in management of operations are to ensure that the chosen solution:includes a reporting solution, provides the bottom line impact of the performance indicators, automatically gathers the necessary data that reconciles with existing reports, and is built around a review process that fits with existing management processes. An adequate solution enables operators to identify where there are performance gaps and to quickly prioritise the urgency for addressing these issues. Two case studies are chosen to illustrate the critical success factors of implementing a performance driver tree solution. The first is a large, complex open pit operation. The driver trees, reporting and management processes were initially established for the mining and processing aspects of the operations. Once the initial solution was bedded down, a follow-up project was carried out to establish the equivalent solution for the support areas of the business. The final solution covered stand alone performance driver trees for mining, processing, engineering, maintenance, health and safety, human resources and finance. These individual driver trees were integrated into a total solution that showed how all of the identified KPIÆs impact profit and quantified the dollar impact of all variations. The reporting solution that was put in place automatically creates prioritised lists of variances for the business to address. The second case study is a performance diagnostic project where driver trees were used to assess where gaps in performance were occurring, and then to evaluate the impacts of proposed initiatives.

Jan 1, 2007

By Fourney W. L, Dick R. D

A small-charge rapid excavation system employing a novel penetrating cone fracture initiation and propagation technique has been demonstrated to be capable of excavating the hardest of rocks at efficiencies (energy per unit volume of rock removed) four to ten times greater than attainable with conventional drill and blast. Significant enhancements to the concept developed during the research efforts include the use of propellant rather than explosive charges and a device for containing the charges and effectively sealing the shot-holes. The experimental results, including the excavation of several tons of hard rock in a research mine, have confirmed the novel breakage process and provided a data base for the design of a continuous hard rock mining machine based upon the concept. The small-charge excavation system would be attractive for civil construc-tion operations where sensitive structures, equipment and personnel would be in close proximity to the excavation face. The system would be attractive for selective mining operations where the ore rock could be fragment-ed and processed separately from the barren country rock. The barren rock could then be backfilled underground and eliminated from the traditional hauling and milling operations.

Jan 1, 1990

The basic issues of education for the mineral industry which emerge from experience and from a study of relevant literature are presented with the object of promoting. discussion. The subject is considered primarily from the university point of view and relates more to the disciplines of mining and mineral processing than to geology or perhaps metall- urgy, but the conclusions have wider implic- ations. Continuing education, being the subject of a separate paper, is only briefly discussed. The important and particularly relevant training and industry role of the technician engineer and technician are not considered.

Jan 1, 1974