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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

By Green P. F

Apatite Fission Track Analysis (AFTA) is a thermal history reconstruction tool that enables determination of magnitude and timing of maximum paleotemperature and paleo-geothermal gradient at the time of maximum paleotemperatures. From this information, the amount of section missing at major unconfornities can be estimated and incorporated into basin models. The Gippsland Basin has a number of distinct problems that can be tackled using AFTA. 1. The nature of the regional break between the Late Cretaceous-Tertiary Latrobe Group and the underlying Early Cretaceous Strzelecki Group. 2. The tectonic history of the basement flanking the basin and its effect on sediment composition. 3. The age of igneous activity in the basin, as typified by the widespread basaltic plugs and dykes intruding the outcropping Strzelecki Group. Major uplift and erosion within, and adjacent to, the early Cretaceous rift basin in the Mid-Cretaceous, at -95 to 100 Ma, initially constrained the Latrobe Group depositional area to the central deep of the Gippsland Basin and provided an elevated source of quartz-rich detritus for the Latrobe Group reservoirs. This is in marked contrast to the preceding period in the early Cretaceous when contemporaneous volcanism dominated as a source of detritus, producing quartz-poor lithic sandstones, in which a host of attendant diagenetic reactions destroyed their reservoir potential. Initial uplift and erosion of the volcanogenic Strzelecki Group also occurred in the mid-Cretaceous as revealed by a number of distinct inversion structures, and erosion of this material will have locally provided very poor quality sand to the basal Latrobe Group.

Jan 1, 1992

By McLennan R. G

The principle of personal safety is as old as the human race. The application of this principle to industry is of much more recent origin, and may be said to be almost exclusively the product of the twentieth century. The enormous strides in technique and production mode prior to the turn of the century had been achieved without any real regard for the crippled human by-products of that expansive era. It was accepted that. accidents were inevitable and formed part of the price that must be paid for production. It was not until 1885 that the first Workmen's Compensation Act was passed in Germany making the employer financially liable for injuries suffered on his plant.With awakening social conscience came the first organised efforts to reduce accidents in industry. Early 19th century literature dealing with the development of powerdriven machinery and the growth of industry in Europe contains many references to the unsafe and unhealthy working conditions that accompanied the change-over from the home workshop to the industrial plant. By the year 1900, there were in Germany - and a little later in England governmental regulations dealing with the guarding of hazardous machinery. American industry, now the acknowledged leader in industrial safety, admits freely that when an organised safety movement commenced in that country, there was already a considerable amount of information available to them from European experience. The steel industry was well to the fore in this work, and in...

Jan 1, 1957

THE furnace described in this paper was installed and has been used by the writer for the melting of rich gold-bearing material, and has given complete satisfaction. It may, therefore, prove of interest to other metallurgists who are faced with a similarproblem. A furnace of this type should be most suitable for the reduction of "cyanide preeipitate," "charcoal ash," "anode sludge," &c. formerly the melting was done in fire-clay crucibles, using coke or crude oil as fuel, but this method is costly, slow, and unsatisfactory. A small water-jacketed blastfurnace was also tried on this material after briquetting it, but was discarded in favour of the electric furnace. The furnace may be described as a simple form of the Heroult resistance furnace, with an adjustable upper electrode and a fixed bottom electrode. This is in accordanee with Stansfield's classification of electric furnaces. The heating is mostly due to the resistance offered the current by the molten slag. The melting chamber consists of a steel drum 14 in. in diameter and 21 in. high, and is lined with silica bricks specially made to fit the shell. The internal diameter is G in. The bricks contain 92 % silica, are made from calcined quartzite bonded with fireclay, and are similar in composition to those used for lining steel converters. They are set in a mixture of finely-ground quartzite and clay, and well dried out. The shell is bolted to a steel plate, which forms the decking of a truck running on rails, so that the furnace can be moved under ahood for carrying off the fumes. A cast-iron slag spout is bolted to the shell below the tapping hole, which is 4 in. from the bottom of the shell. Opposite this another hole 1 in. in diameter is drilled through the shell and lining for the passage of the lower...

Jan 1, 1918

A new porphyry copper gold district has been discovered at Goonumbla near Parkes in central New South Wales. Endeavour 26 North is the largest deposit known to date with a possible resource of 166.4 million tonnes at 0.74% copper, 0.12g/tonne gold and 1.7g/tonne silver, using a cut-off grade 0.3% copper. Mineralisation is primarily bornite in the higher grade zones and chalcopyrite in the peripheral lower grade zones. Most of the copper, gold mineralisation is associated with potassic alteration. Two mineralised quartz monzonite porphyry intrusive stages have been identified and these are related at depth to a large monz- onite stock which may have been the source of some of the mineralisation. On the basis of detailed paragenesis studies, the potassic zone can be divided into three symmetric subzones. The low grade inner potassium feldspar subzone is confined to the later intrusive porphyry. The outer potassium feldspar subzone is the most highly mineralised alteration halo due to the focussed superimposition of two hydrothermal cycles which have overprinted intrusive and volcanic rocks. The fringing biotite potassium feldspar subzone reveals alteration minerals which are developed early in the paragenesis. Fracture controlled quartz sericite alteration with low sulphide content, fringes and, in part overprints the potassic zone. The restricted pipe-like nature of the alteration zones and related mineralisation suggests that Endeavour 26 North is repres- entative of a multiphase focussed porphyry copper gold system.

Jan 1, 1986

By T Mattiske

The Fimiston Open Pit (commonly referred to as the æSuper PitÆ) is a part of the Kalgoorlie Consolidated Gold Mines Pty Ltd (KCGM) operation in Kalgoorlie-Boulder. KCGM manages the Fimiston Open Pit, the Mt Charlotte underground mine, the Fimiston Mill and the Gidji Roaster for its Joint Venture Owners, Newmont and Barrick Australia. KCGM produces up to 850 000 ounces of gold per year. The KCGM operations are located on the historical Golden Mile on the outskirts of the City of Kalgoorlie-Boulder, about 600 kilometres east of Perth Western Australia. This traditionally underground mining centre has been worked since 1893, yielding in excess of 50 Moz of gold from ore with an average head grade of 10 g/t. This represents approximately ten per cent of the gold produced in Australia and one per cent of the gold produced in the world. The Fimiston Open Pit is essentially an aggregation of what were known as the Judd, South, Paringa, Croesus/Eclipse, Central, Brownhill, Drysdale, Morrison, North and Horseshoe pits into one continuous large-scale operation. The old Fimiston Underground Operations (included the Main, Croesus, Chaffers, Lake View, and Perseverance shafts) were also located within the area of the Fimiston Open Pit. The underground operations closed in 1992 due to high mining costs.

Jan 1, 2002

By Uusna S, Canning R. G, Goodheart B. A

The development of a process for removal of iron oxides from ilmenite is outlined whereby the Ti02 content of Western Australian ilmenites can be upgraded from 55 to approximately 90 per cent. In the first stage, the iron oxides are reduced with solid carbon (coal) to metallic iron. Experimental reductions were carried out in crucibles, a fluidized bed, and a small pilot plant rotary kiln. The reduced ilmenite was then agitated in aerated water, in the presenceof catalysts, so that the iron "rusted" away from the ilmenite grains and the precipitated iron oxide was easily separable by decantation.The influence of variables on the rates of reduction and oxidation are discussed. The oxidation rate was examined for both the physical oxygen transfer characteristics and electrochemically by reference to Pourbaix diagrams, in which redox potential is plotted against solution pH.The upgraded ilmenite is expected to be an attractive material for pigment manufacture, and the iron oxide has prospects of being a marketable by-product. The process may possibly be applied to other ores.INTRODUCTIONThere are extensive deposits of ilmenitic beach sands, Le. iron titanium oxides of the general formula FeTi03, 'occurring in the lower south-west portion of Western Australia, and although there has been considerable commercial development, local producers face keen competition on a freight-cost basis. Thus the removal of the unwanted iron oxide constituent would have the double advantage of reducing the freight differential and presenting a more attractivematerial to pigment manufacturers.

Jan 1, 1965

By Fogarty J. G H

Ausmelt Technology has a unique capability of removing the impurities, phosphorus and sulphur, from the feed materials to the process. Sulphur is removed to the gas phase almost completely because of the interactions of ore and coal in the reaction region at the top surface of the slag bath. Phosphorus is removed to the slag phase, with both basic and higher, controlled iron oxide levels in slag being achieved in the process. The significance of these features of the process relate to the production of pig iron with very low levels of these impurities for the further processing to steel, and to the treatment of high phosphorus and high sulphur raw materials. The marketability of pig iron and the raw materials are discussed in relation to this feature of Auslron.

Jan 1, 1999

By J P. Sykes, T C. McCuaig, M Jessell, A Trench

The election of Donald Trump and the Brexit referendum herald a shift towards a tighter definition of economic value, at the expense of the broader value concept of sustainable development; as well as a rise of protectionism, reversing a long-term trend of globalisation. However, the situation is complex, especially over the longer term in which mine project development and exploration operates. The minerals sector should proceed with caution. A greater focus on the local impacts of mining may be strategically beneficial, not only to mitigate against a potential protectionist future, but also because sustainable development has become more ‘localist’ via the concept of ‘social licence to operate’, whilst globalisation also seems to provoke increased ‘localist’ sentiments (known as ‘glocalism’). Localist strategies, therefore, seem a good hedge against multiple political futures. By contrast, moving away from sustainable development appears strategically riskier. Not only are ‘unsustainable’ activities, such as pollution and civil rights infringements harder to reverse, but a movement towards a more sustainable global economy may already be predetermined, even if the journey there may seem oblique. It appears that the increased economic development that is coveted globally is intrinsically linked to a rise in environmental and social consciousness.CITATION:Sykes, J P, Trench, A, McCuaig, T C and Jessell, M, 2017. Charles Dickens on the (potentially) changing role of globalisation and sustainability in the long-term future of mining and exploration, in Proceedings Tenth International Mining Geology Conference 2017, pp 239–256 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 20, 2017

The ore is very 'refractory. It consists essentially of arsenical pyrites, iron pyrites, zinc blende, galena, antimony as sulphide and probably, in combination with galena, as Jamesonite, magnesium, and aluminium silicates with quartz. Some of the oxidized ore, of which there is very little, has a very interesting composition. A specimen shown to me by the ,general.manager, Mr. F. B. Stephens, consisted of hydrated arseniate of iron, orpiment, pyromorphite, lead oxide, with magnesium silicates and quartz. The ore found in the mine with a composition similar to this specimen was valued for gold contents at 60 oz. per ton. This ore is found as a small leader, which runs parallel to the main ore body, at intervals cutting through it.The ore is conveyed from the mine to the reduction works by means of a double road tram line. The mine is situated about rooo feet above the plant on a hill. The grade is so great (about I in 2) that the loaded trucks coming down are able to pullthe empty ones up, thus obviating the necessity of motive power for haulage. All that is necessary is two large grooved pulleys, fixed at the summit of the hilI, and provided with a rope-break for steadying the speed of the trucks down the hilI.

Jan 1, 1903

Recent data contributions to New Zealand Mesozoic terrane geology confirm the consensus interpretation thatNew Zealand grew by the progressive addition of material by plutonic and accretionary processes along the Gondwana margin. The data also: 1. emphasise the discontinuous but inter-related nature of these processes of continental growth, 2. better establish a direct Gondwana correlation of the Western Province and probable Gondwana provenance of at least some of the Eastern Province, 3. suggest specific times and places when passive or strike-slip rather than subduction regimes are recorded along the south Gondwana margin, and 4. potentially lead to interpretations emphasising parautochthonous rather than far travelled relationships between many New Zealand terranes.  

Jan 1, 1995

It is easy to demonstrate the importance of aggregates in any conversation about infrastructure and other engineering artefacts. Peoples around the world have made use of stone to enrich and enhance their lives since the earliest days of civilisation. In New Zealand, Maori used hard durable rocks for weapons, tools, and basic structures. European settlement accelerated the use of quarried materials and formed the basis for development of our society as we see it today. Logic might suggest that the quarrying sector would be recognised positively for, and encouraged to continue to contribute to, this underpinning of the way we are. The reality is æNot In Most Back YardsÆ. Why? The rock is where it's always been (often overlooked) and our æsocialÆ environment is today's hard place. For a resource-based business in New Zealand, that environment is principally the Resource Management Act, with the widespread power it has distributed to anyone prepared to invest their time. This coupled with a lack of leadership and direction in the implementation of the Act has created a climate that stifles development and diverts energy and resources to æplaying the gameÆ rather than ælifting the gameÆ. Perhaps the real costs of this are not yet widely recognised. The paper will draw mainly on the experience of endeavouring to consent a ægreenfieldÆ quarry in the Waikato region. This is supported by commentary based on nearly 10 years of ælivingÆ with the RMA at sites across much of New Zealand. RMA Scorecard Summary: Effects based? Rarely. Level playing field? No. Maori Consultation? Could do better. Efficient use of resources? No. Timely? No. Is it working for other sectors? Certainly not the quarrying industry's customers and end users.

Jan 1, 2000

By Edwards A. B

A table concentrate obtained experimentally by the New Occidental Gold Mines N.L. has unusual interest on account of the presence in it of abundant coated or "black" gold. The concentrate was obtained from ore from the New Cobar mine, Cobar, New South Wales, by feeding the oversize product from a "Dorr Bowl classifier to a Card table.Its assay value was 129 oz. of gold and 52 oz. of silver per ton, yet practically no free gold could be seen on panning.When, however, the concentrate was digested in hydrochloric acid fine rusty gold could be obtained by panning.The following chemical analysis was carried out by the mining company on a similar sample of concentrate.

Jan 1, 1941

By C Harwood, EáWestman, K Luxbacher

Testing of in situ seals in underground coal mines is critical to determine seal integrity and to provide safe working conditions. In the wake of the 2006 Sago Mine explosion, the United States of America (USA) promulgated the Mine Improvement and New Emergency Response (MINER) Act (USDOL, 2006) which required mines to install 827 kPa (120 psi) rated seals or monitor and maintain the atmosphere behind existing 345 kPa (50 psi) seals. The purpose of developing the regulations was to prevent the breaching of seals in the event of an explosion in the sealed area.While seal design and construction is carefully regulated in practice, the construction of seals is difficult to monitor, as many are constructed under various mine conditions and the methods rely on prescribed placement of the seal material. Further examination of installed seals is limited to two-dimensional visual inspection and atmospheric and convergence measuring devices. These methods do not accurately reflect the integrity of the seal and cannot detect changes, deterioration, or defects within the seal.If detection of defects, deterioration and damage is not possible, unexpected communication between the active and sealed areas may result. Additionally, the ability of the seal to withstand explosions may be compromised. Non-destructive testing (NDT) of underground mine seals is necessary to investigate if the seal properties have been altered and if the seal remains functional as a barrier between active areas and sealed areas of the mine. This paper gives a preliminary assessment of proposed NDT methods for seal evaluation using radio frequency (RF) technologies and tracer gas methods.CITATION:Harwood, C, Luxbacher, K and Westman, E, 2013. Non-destructive testing of in situ underground mine seals - Initial technology assessment, in Proceedings The Australian Mine Ventilation Conference , pp 299-306 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 1, 2013

The Golden Cross mine commenced production in December 1991. Both open pit and underground mines produce 1000 tonnes of ore per day. Mining techniques are discussed along with results and variations to proposed methods of extracting the ore.

Jan 1, 1992

By J J. Batchelor, J B. Metson

Titanium (ilmenite) concentrate was extracted from a New Zealandilmeno-magnetite deposit. Tailings from the existing processing line at the Waikato North Head ironsand concentration plant were used as a raw material feed. The titanium bearing mineral extracted was defined as intergrowths of ilmenite and hematite in the size range below 150 um. The Owen-Honda equation was used to determine the conditions forilmenite/hematite magnetic separation. Three distinct regions of magnetic field strength for the mineral separation have been defined. Theoretical estimates from this calculation have been confirmed experimentally. Ilmenite concentrate was obtained using medium field magnetic andelectrostatic separation. The final material contains 40.6 - 42 per cent TiO2 and 39.1 - 39.8 per cent Fe (total). The actual yield from extraction was about seven per cent of the Zircon, leucoxene and monazite were found as byproducts of thetitanium concentration process. Preliminary experiments have shown the viability of industrial zircon benefication.

Jan 1, 2000

Particles of a complex nickel sulphide concentrate (containing pyrite, pyrrhotite, pentIandite, and violarite as the major mineralogical constituents) were entrained in a stream of hot gas the temperature of which was varied from 500 to -1000°C. Chemical analysis of the particulates collected from the furnace was used to detect the rapid change in sulphur content which accompanied the ignition temperature jump. X-ray diffraction analysis was used to characterize the oxidized material.These techniques showed that ignition was dependent on the mineralogical composition and occurred over the temperature range 500-900°C. Pyrite ignited first in the range 500-600°C; pyrrhotite was the least reactivemineral and required temperatures in excess of 800°C for ignition. The nickel minerals <pentIandite and violarite decomposed before ignition and ignited at temperatures intermediate to those required for the pyrite and pyrrhotite. The ignition temperature for the pyrite was found to be independent of particle size and concentration of oxygen in the atmosphere.Ignition temperatures determined by the simulated flash smelting method were compared with the results of differential thermal analysis (DTA) measurements performed on the same concentrate. Temperaturesdetermined in the DTA test as corresponding to the start of exothermic activity were shown to be at least 100°C below those determined by the simulation test.

Jan 1, 1978

This paper summarises the development t,) date for the Hidden Valley Gold (HVG) Project. It starts with the original exploration work, covers the detailed feasibility study activities and concludes with the current phase of extra exploration drilling. A brief technical summary has been made from the various mining, process and environmental studies that were undertaken as part of the project approval process. A discussion of the influential non-technical factors is included, as well as a view of the future prospects for an operating mine. The project was always seen as marginal, given the low grades, small resource and short mine life. However the capital and operating costs were lowered with aggressive design and it was regarded an acceptable development by CRA. The opportunity was taken to review the project when delays in start-up were encountered. An updated financial evaluation showed a subeconomic resource in 1990 terms and this resulted in a new exploration phase to identify a larger deposit.

Jan 1, 1991

On the more important mines it is almost essential to have a general plan of the surface. A special feature of this plan should be the indication thereon of a suitable arrangement of contour lines, either wholly over the surface of the property or at parts where may seem most useful. The importance of having these contours marked on the plan will be best appreciated by the engineer, in selecting the best available site for a proposed new plant, in locating a tramway, in connecting the surface with the underground workings to the best advantage, or in solving many similar problems that come within his province. The closer the contours are together vertically the better, the limitation being the trouble and expense of getting them on to the plan. They may range from five to fifty feet apart but a distance of ten feet will be found, in most cases, to be the most useful.In deciding the datum level from which these contours are to be measured, it is best to depart from the ordinary sea level datum, and use instead the highest available point on the property. This datum will be called zero and all levels will be reckoned so many feet below it; thus by a contour marked 160 on the plan, it will be understood that the level of the plane of the contour is 160 feet below the highest available point on the property. This system of measuring levels downward is readily suggested from measuring the depths of shafts from the brace or of excavations from the original surface.

By P J. Mienie

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

Jan 1, 2002