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By J Gould, T Elkington

Mine operation strategies are commonly optimised with a net present value (NPV) maximisation objective. There are well known properties of a typical mining project optimised for NPV, including high production rates and declining cut-off grade schedules. In practice, however, frequently there are operations that diverge from such NPV-maximising properties. Although a range of reasons for this can be at play, one possible explanation is that operators intuitively adjust their strategies to compensate for the flaws inherent to NPV maximisation. In particular, NPV analysis does not reflect the benefits of managerial flexibility inherent in a mining plan. Real options valuation (ROV) is an alternative approach that addresses this issue. We compare the properties of NPV and ROV optimisation solutions generated for the same scenario. Our simple case study demonstrates that the presence of real operating options in the optimisation model not only entails increased project value as expected, but also tends to encourage lower processing capacity (with lower associated capital cost), higher cut-off grades and greater use of stockpiles.CITATION:Elkington, T and Gould, J, 2012. Real option value optimisation, in Proceedings Project Evaluation 2012 , pp 35-40 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

The global mining industry is perceived to be a world leader in sustainability reporting û with a 2008 Ernst & Young survey placing four mining companies in their top five performers in sustainability reporting in South Africa. There is certainly good evidence to support this finding, but there remain many ongoing issues with respect to sustainability reporting and some important areas for improvement by mining companies globally. This paper begins with a broad (but brief) review of sustainability and the technical basis for reporting against a wide range of typical indicators or measures on the environmental aspects of mining. The various protocols, frameworks or systems are then reviewed, with a particular focus on the Global Reporting Initiative (GRI) and its associated mining sector supplement (including the evolution from environmental to sustainability reporting). A wide-ranging survey of reporting by mining companies is presented, including detailed analysis of 2007 and some commodity sectors over time. Examples of reported data are synthesised and analysed, focusing on their accuracy, consistency and utility for accurate assessment of the life cycle impacts for minerals and metals. A number of areas are identified for improved reporting by all mining companies, including water resources and consumption, energy consumption, process inputs (eg acids, solvents, etc), pollutant emissions, including greenhouse emissions, mine site data (not aggregate company totals) and finally rehabilitation and land status. Given the nature of mining, and considering parallels between æpeak oilÆ and the mining sector, it is critical that the state of sustainability reporting continue to evolve and improve û both in the number of companies using the GRI but also in the level and consistency of data being reported. Overall, the paper presents an important review of the present state of the art in sustainability reporting for mining, and provides a range of insights into ways to help improve reporting in the future for all mining companies.

Jan 1, 2009

By L Salvestro

Ventilation on demand (VOD) has been demonstrated to significantly reduce operating costs for ventilation fans, by reducing fan output to meet demand. The most effective method for reducing operating costs is to use variable speed drives to adjust the speed of ventilation fans as required – this achieves significantly larger power savings that damper or vane control alone.However, this mode of control will significantly increase the number of speed cycles the ventilation fans will experience. Fabricated impellers have a limited number of start stop cycles based on the materials and method of construction, and the operating stresses due to centrifugal forces. This means that fans experiencing constant or regular speed changes will experience a reduced fatiguelife compared with fans that are run at constant speed.The fatigue life of fans operated under various speeds using VOD is difficult to predict, as it is dependent on the magnitude of speed changes, and the frequency, which will be varied to meet demand. It is important to be able to estimate remaining fatigue life to assist in maintenance planning and avoid unplanned maintenance activities.This paper will review extensive VOD data on fan operating conditions from two primary mine ventilation fans. This paper will demonstrate how this data can be used to calculate accumulated fatigue and predict the remaining fatigue life, and how this compares with fixed speed or non-VOD controlled fans.The increased maintenance costs for the impellers will also be estimated, and compared to the operating cost savings using VOD, to determine if the savings outweigh the additional maintenance costs.

Oct 12, 2022

Standards in the public reporting of resources and reserves in Australia have dramatically improved since the implementation of the Australasian Code for Reporting of Mineral Resources and Ore Reserves (The JORC Code) in 1989. Whilst the JORC Code states clearly that Mineral Resources and Ore Reserves are imprecise calculations and should be treated as estimates, there is strong evidence that many people regard them as fact, including some accountants, directors, auditors and investors. Mineral Resources and Ore Reserves are key inputs in the valuation of a mining company and the determination of financial performance. Geological knowledge is the foundation upon which Mineral Resources, Ore Reserves and investment decisions are made, however this information carries with it substantial uncertainty. Case studies and company reports have established that errors derived from inadequate geological inputs have led to reduced profitability in operating mines and in extreme cases the premature closure of mine operations. Whilst there are many causes of mine closure and reduced profitability, including commodity prices and exchange rates, the cumulative effect of all geological uncertainty contributes significantly to the erosion of the credibility of mining within the investment community. There are a number of methods used to characterise and model uncertainty in Mineral Resource and Ore Reserve estimation. Empirical mining indexes, sensitivity analyses, Monte Carlo simulations and Conditional simulations are used to identify and estimate geological uncertainty, notably the quantification of uncertainty in grade and tonnage estimates. These techniques have not generally been applied to estimating geological uncertainty associated with key Ore Reserve inputs such as appropriate mining technique, equipment selection, production rate, mining dilution, stability requirements, materials handling, metallurgical processing, product quality and waste storage. New software tools are needed to model the entire mining process with all its geological and other interdependencies, enabling all uncertainties to be separately identified and estimated. By its very nature, mining involves the assumption of significant technical, financial, political, environmental and social risk. Success comes by understanding and managing these risks and consequently the mining industry will never choose to reduce the level of geological uncertainty to nil. The ultimate aim of improved identification and estimation of geological uncertainty is to quantify inputs into the Ore Reserve process, allowing a company to assess the risks and manage these accordingly. This approach is relevant to feasibility studies for new projects as well as life-of-mine planning through to the weekly schedule at existing mines.

Jan 1, 2003

By Green A. D M

The establishment of the Imperial Smelting Furnace at Sulphide Coporation Pty. Limited for the smelting of zinc and lead made it necessary to design and install sintering capacity to produce approximately 500 t.p.d. of zinc-lead sinter. The updraught sintering process installed is a recent development and the plant was designed with adequate flexibility and equipment to enable operating staff to investigate the process and achieve maximum production under optimum operating conditions.Sulphur dioxide gases from the sinter machine are passed to a contact acid plant for the manufacture of sulphuric acid.

Jan 1, 1964

Central to any business is its Asset Management Plan which encapsulates the business context and key organisational objectives such as profitability, safety and environmental standards. Life Cycle Planning (LCP) is a key component of an overall Asset Management Plan. A comprehensive approach to Life Cycle Planning forecasts the financial expenditure required to support the performance of the asset over the business life. It incorporates capital, maintenance and operational expenditure along with an estimation of economic life. Within its body the LCP provides the detail of the maintenance plan and method of its execution. Once optimised the LCP becomes the overarching plan executed through the application of several elements of the Asset Management Plan to ensure the return on investment from the assets is optimal. Each of the elements of the LCP is bound by a set of loops that provide information based on the analysis of outcomes. These loops drive the continuous improvement of performance and cost over the life of the asset. In this way we ensure that the LCP is a dynamic plan responsive to the changing business environment. The paper being presented today will describe the process undertaken and the outcomes derived when this approach was applied to a $600 M+ coal handling and preparation plant in QueenslandÆs Bowen Basin. It will also delve into the difficulties encountered from both technical and cultural aspects; the latter proving to be the most difficult to manage. It will describe the hurdles and barriers that hampered progress including the human influences and the natural desire to revert to what has been done in the past when things became a bit difficult. In the end the results are there to show that the upfront expenditure and investment in time was time and money well spent and the outcome has the operation well placed to manage the assets in a manner designed to deliver the optimal business outcome.

Jan 1, 2007

By A G. Sheard

Fire safety requirements inside tunnels have become more demanding as tunnel designers consider the impact of potentially larger fires. Tunnel ventilation equipment is required to clear hot gases in the event of a fire. This is vital to maintain smoke free escape routes for people trapped in the tunnel and to facilitate safe access for emergency services. As the fire becomes larger, the temperature of clearing hot gases increases. Traditionally, engineers have taken into consideration gas temperatures of 250°C when designing tunnels. Because of larger fires, engineers must now design equipment to clear hot gas up to 400°C.Increasing the temperature of hot gases to 400°C requires tunnel ventilation equipment that goes beyond historic limits. As temperature rises, material strength reduces, consequently mechanically constraining fan aerodynamic performance. Developing tunnel ventilation equipment suitable for clearing hot gases at 400°C requires a fan technology that is more typical of industrial turbomachinery. The standards EN 12101-3:2002 and ISO 21927-3:2006 defi ne the necessary design criteria and testing methodologies to verify that a range of tunnel ventilation equipment is capable of extracting hot gases.This paper describes the process by which the authors certified in accordance with EN 12101-3 and International Organization for Standardization (ISO) 21927-3 a range of powered ventilators suitable for clearing smoke and hot gases at 400°C for two hours. Proving the high temperature capability of the new range provided a challenge as a consequence of the large physical sizes and high motor powers involved. Additionally, the need to install vertically, as well as horizontally, imposed high thrust loads on motor bearings, further complicating both mechanical design and testing. The paper presents the methods by which the authors overcame these challenges.

Mar 8, 2011

By Skinner W, Netting A. K O

Surface analysis of ore samples collected from corresponding concentrate and tailings process streams is now a widely used tool in many Australian base metal sulphide concentrators, particularly those involved in AMIRA projects. The use of tec

Jan 1, 1997

Territory Iron has seen fit to revive the old Frances Creek iron ore mine some 30 years after it ceased operations in AustraliaÆs Northern Territory. The key to this revival has been the changes that have happened since market forces, infrastructure limitations and a cyclone combined to force its closure. As it breathes life into this old mine, the Company is serious about its responsibilities to its shareholders, to its workers, to local and regional communities and to the environment. This paper addresses how Territory Iron has approached technical, operational and regulatory issues that apply in Australia. Some insight may be gained into the myriad of tasks that mining companies face to revitalise an old mine. These tasks vary from employing the latest exploration tools, best practice drilling, sampling and modelling of orebodies, optimisation of pit designs and schedules, maximising product value by blending, optimising infrastructure usage and minimising capital and operating costs. All of this has to take cognisance of commercial, environmental and other issues including Native Title.

Jan 1, 2007

The Highlands Region of Papua New Guinea has 3 major national highways. The locations of these national highways are shown in Figure 1. The Highlands Highway begins at Lae City on the coast and passes through the Highlands towns of Goroka, Kundiawa and Mt Hagen. It terminates at Togoba approximately 10km out of Mt Hagen town. The Enga Highway begins at Togoba and passes through the towns of Wapenamanda, Wabag and Laiagam. It terminates at the giant Porgera Gold Mine. The Southern Highlands Highway also begins at Togoba and passes through the major towns of Mendi, and Tari. It terminates at Koroba station, near the Hides Gas Field. Two separate Feeder roads intersecting the main highway service both the Kutubu Oil Project and the Hides Gas Field. These national Highways play a very important role in the development of Papua New Guinea. Goods and services are delivered to the bulk of the population of the Highlands Region using these highways. Heavy machinery and equipment for the mining and petroleum projects of Porgera, Hides and Kutubu are transported using these roads.

Jan 1, 1997

The New South Wales coal industry is a highly mechanised well organised industry which has developed from an annual production of slightly less than 13 million tons in 1950 to over 33 million tons in 1969. Although continuous miners were not introduced into the mines until 1950, by June 1969 the percentage of coal won by these units was 87.3. The paper describes mining conditions in the various coalfields of the State, their complexities and problems and how these have been dealt with. The introduction of fully mechanised longwall faces has presented a challenge which has been accepted and descriptions of systems in use are discussed. Major expansion of the industry is anticipated to meet the requirements of the growing Australian steel industry, for local power generation and to meet the increasing demands of overseas markets.

Jan 1, 1980

By Finlayson E, Hilyard D, Francis G

Papua New Guinea's mainland is dominated by a foreland thrust belt, which can be divided into two zones. The "body" zone is floored by Palaeozoic granites and metamorphics of the Fly Platform (Tasman Orogen). Underlying the "tail" zone is Papuan Plateau, rifted from the Tasman Orogen during Coral Sea spreading, and believed to underlie the Papuan Peninsula and Papuan Islands region (D'Entrecasteaux, Woodlark, Misima, Sudest, and Rossel Islands). Thrusting began in the Miocene and continues today in the crust below the "body" zone. The youngest known thrusted rocks in the "tail" zone are Pliocene in age. Recognition of foreland thrusting has major implications for petroleum prospectivity of the Papuan and North New Guinea Basins, mineral exploration prospectivity, and geological terrane identification in PNG.

Jan 1, 1987

Hydraulic transport of coal has been used for many years on the West Coast of New Zealand to extract small blocks of steeply dipping coal. Recent development at Strongman 2 Mine has seen the use of high pressure monitors to cut coal and a corresponding increase in the scale of production.This paper provides a brief introduction to hydraulic mining, describes the present system used at Strongman 2 and discusses future potential development.

Jan 1, 1998

By A Singh, C Da Corte

Banded Iron Formations or more commonly known as BIF are sedimentary rock formations with alternating silica-rich layers and iron-rich layers that are typically composed of iron oxides (hematite and magnetite), iron-rich carbonates, and/or iron-rich silicates. Considering the depletion of highgrade iron ore reserves in South Africa, there is a need to maximise resource utilisation through the exploitation of sterile resources in particular BIF material which makes up greater than 65 per cent of current reserves. BIF, like most resources, is non-renewable and the deposition of BIF is thought to have come about by the reaction of Fe2+ ions in the ocean water with dissolved oxygen billions of years ago. BIF ore derived from the Limpopo region in South Africa (SA) located in the Penge Iron Formation is according to Cairncross, Kramers and Villa (2018) equivalent to that contained within the Asbestos Hills Iron Formation of the Transvaal Supergroup in the Northern Cape, SA. Considering that these are one of the largest iron ore deposits in SA, the case study involved mineralogical characterisation followed by beneficiation of BIF from these two regions to ascertain the comparability. Coarse and fines gravity separation comprising of Heavy Liquid Separation/Dense Media Separation on the +1.18 mm size fraction and shaking table on the -1.18 mm size fraction was conducted to ascertain whether an on-grade product or blended feedstock could be produced. The Limpopo mixed and Northern Cape conglomerate BIF samples achieved similar overall responses due to the conglomerate sample containing 15.3 per cent additional -1.18 mm fines. A combined coarse and fines product grading at 60 per cent Fe could be achieved at a yield and recovery of 43.9– 53.0 per cent and 62.2–63.8 per cent respectively. Increasing the grade to 63 per cent Fe reduces the overall recovery by 13.3 per cent. At the higher target grade, the contaminant specifications could be achieved for both samples. The Northern Cape laminated BIF sample is the most promising of the three samples studied. At the two iron target grades overall yields and iron recoveries of 72.9–65.4 per cent and 85.2– 80.2 per cent was achieved. In both instances the silica grade exceeded the product specification, however if the silica content is the driver the target iron grade should increase to 63.32 per cent. This will result in a minimal decrease in recovery of 0.4 per cent. The promising results of this study indicate that coarse beneficiation of BIF material is possible. These ore types could be blended with superior grade products to improve overall yields and recoveries or sold directly at a 63 per cent Fe product grade whilst sacrificing 0.4–13.3 per cent recovery.

Nov 8, 2021

By Pattinaja MA

Mathematical modelling was carried out to determine the probable convergence and vertical stress patterns around a retreating longwall panel in an underground coal mine in New South Wales. An 'Electrical Resistance Analogue' and a program called 'THREED' based on the displacement discontinuity method were used for the modelling. Parts of the obtained results are presented here and compared with some measurements of convergence at the site. The modelled and measured data agree better qualitatively, than quantitatively.

Jan 1, 1986

By Lumley G. I, Duffy W. J

The risk involved with incorporating new/unfamiliar technology into mines has, in the past, largely been evaluated by the supplier of the technology. The implications on safety and productivity has been accepted as part of the process of `getting up and running'.This has changed. As companies see the lost productivity and accidents actually costing significant dollars, risk assessment is becoming an important part of the implementation of new equipment. Regulatory authorities are also seeing the preventable incidents and in some cases are now requiring a risk assessment to be undertaken on new equipment at a Mine.

Jan 1, 1992

By C Glassock, P Tilyard, T Sandeman

Computer simulation is a well accepted tool for modelling the behaviour of large and complex operating systems. It is a particularly useful technique in complex operations where there are multiple interactions between the inputs and outputs of various unit operations. It can be utilised during the early stages of a project as part of the business case definition phase or the early engineering phases, or alternatively to help understand the various options available in an upgrade or expansion. With the design of a new processing plant to handle a different ore type at Lihir Gold Limited (Lihir), there was concern that the existing conveying system could separately handle the increased tonnages. A simulation model was constructed which allowed Lihir to examine the impact on the conveying system of the new process plant, as well as investigate the effect of different trucking options. As is often the case, once the simulation model was built, further understanding of the downstream bottlenecks was able to be investigated, including the sizing of critical equipment.

Jan 1, 2006

By N J. Welham

The Intec Copper Process is an environmentally advantageous hydrometallurgical process for the production of high purity copper and associated precious metals from copper sulphide concentrates. The process uses a mixed chloride-bromide lixiviant in an elegant cyclic circuit to leach the copper into solution, rejecting the iron as stable hematite rather than as unstable jarosite. After purification of the pregnant liquor, copper is electrowon at London Metal Exchange Grade A purity, while the anodic energy of the cell is stored as the soluble species, HalexTM, for recycle as the regenerated lixiviant to the leach circuit. Both gold and silver are leached and recovered directly from this cyclic process without resorting to cyanide leaching of the residue. No liquid emissions result from the Intec Copper Process, whilst spent air and water vapour from the leach are released to the atmosphere. The sulphur in the minerals reports to the solids residue in elemental form, without the need for expensive handling of voluminous gaseous sulphur dioxide streams found in smelters. A significant difference to competing smelting and hydrometallurgical processes is that any mercury entering the process from the sulphide concentrate feed is recovered rather than reporting directly to waste or polluting the environment. Outside the process circuit itself, the Intec Copper Process has several notable environmental advantages over competing technologies: Flexibility of scale with low capital and operating costs allow operation directly at the mill head at production rates as low as 15 000 tpa, significantly reducing environmental impacts from concentrates transport. The ability to handle low-grade and dirty concentrates often allows greater recoveries in the mill, improving both the economics and environmental acceptability of a mine by reducing metal losses to tailings. A comparison of the total energy requirements of the Intec Copper Process with those of competing technologies shows that the Intec Copper Process has the lowest energy consumption of any of the known hydrometallurgical processes, as well as improving upon pyrometallurgy under appropriate conditions.

Jan 1, 2002

By D McLaughlin

This paper points to the timely importance of commencing a centrally recognised perpetual collection of mineral specimens in the Northern Territory which has as one of its objectives the collection and preservation of Northern Territory minerals of scientific, educational and heritage value. Currently in the Northern Territory there is no government department or institution that has a resourced coordinated state-wide objective to collect and document collectable mineral specimens. Specimens held in storage by the Department of Mines and Energy and the Museum and Art Galleries of the NT are not catalogued and owe their existence to fortuitous circumstances, not as a result of a planned systematic scientific approach to mineralogy. Northern Territory mineral species and unique specimens have and will continue to be driven to extinction while no central and active, recognised repository exists. This situation persists despite the fact mineral production is the Territory's largest income earner. The paper presents the arguments that hopefully will assist decision-makers to commence development of a state mineral collection lodged within an appropriate institution in the Northern Territory.

Jan 1, 1994

By Scales PJ

Fatigue is the primary cause of failure of structural and mechanical components subject to dynamic loading. Recognition of this basic fact and the development of appropriate techniques and details are important in the design and repair of off highway trucks (OHTs). The frames and appendages of OHTs and other mobile plant used in the Pilbara are subject to tough operating conditions. Any fatigue-prone details quickly show up and become a maintenance liability of considerable concern. Much of this equipment is approaching the limit of its fatigue life and maintenance managers face decisions on whether to repair or replace. Even new equipment often contains some poor details which suffer distress soon after commissioning. In those cases a repair is required which will reinstate the detail to its original intended design life. Repair details must be practical and cost effective. They must also be tailored to the capability and expertise available in the field or in local manufacturers' establishments. This is particularly important where original equipment was manufactured overseas and long delivery times are involved. Lessons are drawn from components which have failed, using the evidence constructively, to provide an upgraded part or an improved substitute. With the experience now available it is relatively easy to extrapolate to cover new problem areas. This paper describes specialised techniques of mechanical fastening and detailing for low fatigue susceptibility, built up over many years of experience with OHTs and other mining plant and equipment in the Pilbara.

Jan 1, 1982