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By M Frenzel

At the last MassMin Conference in Sudbury, Caterpillar’s vision of a continuous mining concept for block caving operations was presented on the background of global raw material demand and its continuous increase. By analysing today’s structure of mining processes in block caving, the paper (Krings, Steinberg and Frenzel, 2012) highlighted the main bottlenecks in the process chain and identified conceptual solutions by help of a case study. The main focus was the paradigm shift from discontinuous batch type operation to a continuous mining process of the blocks.In 2016, the strategic vision has taken major strides forwards and remote continuous operation has become a reality. Caterpillar’s continuous operation system – the Rock Flow system – was successfully installed in Codelco’s Andina mine and start of operation is scheduled in the first half of 2016.Based on continuous product developments, this paper sets the focus on two main aspects of continuous mining. First, field experiences of the Rock Flow system will be shared, highlighting the Andina project course from system installation, to commissioning and successful system start. The second aspect concentrates on the system and mine layout as discussed in the case study scenario in MassMin 2012 (Krings, Steinberg and Frenzel, 2012).Based on Caterpillar`s continuous product development, the Rock Flow system set-up and panel design were modified for a general roadway design and drawpoint layout. The new design allows an optimised use in block preparation phase (spreading) and full production phase (reaping), operating a fleet of load-haul-dumps (LHDs) and Rock Flow systems. The combined use of the two technologies optimises the mining process in every stage of block life and significantly increases the performance of the continuous block caving operation in the production panel to pave the road for the next generation of super caves.CITATION:Frenzel, M, 2016. New continuous production system in block cave mining – the rock flow system, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 543–548 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By J Eberhard, C Paton, J Bennett, C Baillie, A Melland, J F. Clewett, T Newsome

A central aim of rehabilitation is to ensure that disturbed land is returned to a post-mine condition that is safe, stable and self-sustaining. This paper describes initial results from a grazing trial at the New Acland open-cut coal mine in southern Queensland (-27.27 lat, 151.72 long) that aims to assess the sustainability and viability of cattle production from rehabilitated mined land compared to production from surrounding unmined lands (Newsome 2014). The grazing trial was established in 2013 by the Acland Pastoral Company, a subsidiary of New Hope Coal, on lands previously used for dairying, beef and crops before open cut coal mining of the Walloon coal measures began in 2002. The area has a mean annual rainfall of 640 mm. Local soils, typically dermosols and vertosols derived from sandstones or overlying basalt flows, are suited to grazing but are marginal for cropping.CITATION:Clewett, J F, Newsome, T, Paton, C, Bennett, J, Melland, A, Eberhard, J and Baillie, C, 2018. Sustainable production from rehabilitated coal mine pastures in southern Queensland’s Brigalow Region – Acland grazing trial results, in Proceedings Life-of-Mine 2018, pp 35–37 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 25, 2018

By S B. Sheldon

Wall control programs tend to be expensive and consequently require financial justification in order to get approval for the expenditure required. The difficulty faced in getting this approval is that the outcomes of a wall control program are all subjective – a prediction of wall stability and what the wall would do with and without the program. Determining a net benefit is difficult and often justification of a wall control program is based on gut feel, history and a good selling campaign to build a perceived need.This paper outlines a simple solution to this problem by applying risk management principles to wall control. The process is to identify the risks to the operation associated with current wall conditions and then build a risk database for different potential scenarios for each risk. A financial impact is assigned to each risk scenario to complete the database. A consequence and likelihood analysis of each of the risks is undertaken and a formula applied to estimate the projected cost to the operation for the current risk profile. The process is repeated for the predicted wall control conditions after the application of the wall control program. A successful wall control program will reduce an operation’s risk profile so this projected cost should be less than that calculated for the current scenario. The difference in the two projected costs is the value that the wall control program has produced and this value can be used to determine the net financial benefit potential for the wall control program.This methodology can also be applied to other improvement programs that focus on risk reduction such as vibration control.

Nov 8, 2011

By A Hocking, S Henderson

Commonwealth of Australia (2016) defines rehabilitation as comprising “the design and construction of landforms as well as the establishment of sustainable ecosystems or alternative vegetation, depending upon the desired post-operational land use”. For open cut coal mines in Queensland and New South Wales, the question of how to apply this intent to pits at mine closure is repeated for hundreds of individual pits. In EISs, closure plans and public discussion, assorted treatments are proposed to rehabilitate pits. While some aspects of final voids have been intensively studied, there is little guidance on how to choose a final void treatment option that delivers the optimal outcome against rehabilitation goals. For example, in the Bowen Basin and Hunter Valley commonly proposed rehabilitation actions include reducing the angles of pit walls; however, with few voids successfully rehabilitated to date there is limited understanding of what different wall slopes will achieve.CITATION:Henderson, S and Hocking, A, 2018. A decision framework for comparison of coal void rehabilitation options, in Proceedings Life-of-Mine 2018, pp 127–130 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 25, 2018

By J Robinson, L D’Uva

"The Gold Fields group and Gekko Systems have successfully worked together on multiple projects, including at the St Ives, Agnew and Granny Smith operations in Western Australia, and the Damang operations in Ghana, with gravity recovery design, technology installation and optimisation the key driver on each occasion.In 2014, Gold Fields Australia identified an opportunity to challenge the historical thinking at Granny Smith and reassessed the benefit of upfront gravity gold recovery. The historical approach had been to employ gravity on the tailings stream of the carbon-in-pulp (CIP) circuit, recovering sulfide minerals into a concentrate from spiral concentrators for further liberation of gold via a regrind circuit.Gekko was engaged to assess the implementation of a gravity circuit within the grinding area, and to perform a comprehensive gravity recoverable gold test program. Test data was fed into the AMIRA P420 BCC Gravity Model to confirm the gravity recovery potential of the ore, and for process design basis generation. Height, space and capital limitations proved to be a design challenge. However, collaborative learnings throughout the project ensured the design and operation of a reliable and economic gravity gold circuit. Ultimately, the Granny Smith gravity circuit was a success, satisfying all the project objectives and yielding consistent, measurable benefits. On average, the gravity circuit recovers 33 per cent of total gold, resulting in an increase to overall gold recovery by 0.7 per cent.This paper highlights the key project drivers for Gold Fields, and the development of the Granny Smith free gold gravity circuit. It details application of test work and modelling, and the challenges and learnings encountered during the design, installation and commissioning stages. This paper seeks to demonstrate that continuous improvement in a long standing operation can be beneficial to overall circuit flexibility and increased ounce production.Citation:D'Uva, L, Robinson, J and Bell, T, 2016. Defying Gravity - Brownfield Continuous Improvement, in Proceedings 13th AusIMM Mill Operators’ Conference 2016, pp 135–144 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Oct 10, 2016

By B Hawkins, S Durkin, V Lawrence

The requirement for secondary egress from underground workings has long been regulated in Australia. Escape way systems have evolved from simple airleg rising ladders and timber ladders to steel galvanised ladders and more recently fully enclosed polyethylene ladders.The polyethylene ladder, Safescape Laddertube, was introduced to the underground mining industry in 2010. It is an enclosed cylindrical modular plastic ladder designed for use in underground escape ways and access ways. Since its first installation in May 2010, the Laddertube has been installed in 43 mines across four countries, totalling 8800 m of ladders installed to December 2013.The Cracow Gold mine is one operation using Laddertube, located 500 km north-west of Brisbane, Queensland, Australia. Upon discovering and developing both the Empire and Roses Pride orebodies, a safe and economically viable secondary egress system and surface primary ventilation exhaust shafts were necessary to support development and production activities to these workings. The need arose to merge these two critical requirements together between surface and underground mine workings some 200 m and 400 m respectively for each orebody. Neither egress has intermediate access points within their full service length from top to bottom. Several options were considered, the preferable and most feasible method adopted was Laddertube.The longest egress length requiring Laddertube within the two vertical surface exhaust shafts was 400 m long, within a 3.5 m diameter shaft. Due to the length of the vertical Laddertube system in both egresses, personnel are to be assisted by mechanical means using the Extended Ladder Climb Assist system.The Gossan Hill mine also uses Laddertube for their escape ways. Part of the Golden Grove operation, Gossan Hill is an underground sublevel open stoping mine located in the mid-west of Western Australia.With a considerable mine life remaining and a history of acidic water and stress related deterioration in vertical openings, the mine operators sought an escape way solution that would provide for the long-term needs of Gossan Hill. Laddertube was selected due to its non-corrosive properties and the ability to fill in around the ladder way to provide stability to the raise opening.Laddertube is a recent development in escape way systems, and is effectively being applied in a variety of operations, meeting the specific needs of underground mines.CITATION:Durkin, S, Hawkins, B and Lawrence, V, 2014. The application of Safescape Ladders at the Cracow and Golden Grove operations, in Proceedings 12th AusIMM Underground Operators’ Conference 2014 , pp 311–318 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Mar 24, 2014

By D Cumming-Potvin

Incidents that trap miners in underground mines have serious consequences for the miners and the mine operators involved. It is of utmost importance that mine operators utilise all available tools when trying to locate and rescue trapped miners. From testing conducted at underground hard rock mines, Cumming-Potvin et al (2013) found that pre-existing microseismic monitoring systems, which are routinely used for seismic risk management, have the potential to be used for detecting and locating trapped miners.This paper reflects on the Anzac Day seismic event that trapped two miners at Tasmania Mine, Beaconsfield, on 25 April 2006. The Anzac Day event occurred at 2123 on a Tuesday evening. Rescuers were unable to confirm that the trapped miners had survived until 1930 on Sunday evening. It is not possible to speculate on how the rescue operation may have been different had the technology to use the microseismic monitoring system for the purpose of detecting the trapped miners been available. However, it almost certainly would have been different. The recent research project has demonstrated that knowing the fate of the Beaconsfield miners might have been achievable up to 100 hours earlier than was the case in 2006. That knowledge would have been invaluable to the rescue effort.By examining the seismic array at the Tasmania Mine, the reliability of detection over the working levels of the mine could be quantified. Had the methodology been available, adding six additional sensors (at a cost of $40 000), would have been sufficient to increase the likelihood of detection to greater than 90 per cent in the working levels of the mine. This was true both at the time of closure of the mine in 2012, and just prior to the Anzac day event.CITATION:Cumming-Potvin, D and Hills, P B, 2014. Use of a pre-existing microseismic monitoring system to detect trapped miners (with reflections on Beaconsfield 2006), in Proceedings 12th AusIMM Underground Operators’ Conference 2014 , pp 143–150 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Mar 24, 2014

By A Smith

Rock masses usually exhibit scale dependent mechanical properties primarily due to presence of discontinuities and their inhomogeneous nature. One of the essential preconditions for selection of appropriate strength and deformation parameters of a rock mass in relation to tunnel design is assessment of the scale of the joint network relative to the scale of excavation. In tunnel design practice, scale effects are estimated indirectly using small-scale unconfined compressive strength (UCS) tests and rock mass classification based empirical correlations. Large-scale UCS tests have the benefit of direct assessment of anisotropic and scale dependent properties of a rock mass.This paper presents results of a large-scale UCS test on a jointed siltstone. A 450 mm diameter sample with inclined bedding planes was cored and tested in uniaxial compression until failure with load and displacement measurements. The aim of the test is to determine strength and deformation parameters and correlate them with results of small-scale UCS tests of the same sample. The relationships between the small-scale and large-scale rock mass parameters were validated against published correlations from the literature.

Mar 8, 2011

The adoption of new technologies is accompanied by risks that the stakeholders will wish to understand and minimise. The process of developing a dynamic simulation and the plant it will be used in provides a discipline and attention to detail that highlights and provides an opportunity to mitigate risks that will exist in a production environment. The simulations will enable investigation of what the outcome of process failures will be and the impact maintenance. Enumerating this information will enable designs to be optimised and operating and control strategies to be tested.The success of new technology is dependent on the operators and their understanding of it and the machines that use it. In this context dynamic simulations can provide training and experience without risk to personnel, equipment or production. This experience will include situations that would not be induced in a production plant for training purposes. This paper outlines a generic template for a dynamic simulation that can be used to evaluate the introduction of an emerging technology into an operating environment. It includes process flows and surge capacity, breakdown and maintenance, operator interactions and availability, push and pull production scheduling and system control.

Sep 26, 2011

Australia has been an important producer of zinc minerals and metal for many years.Late in the last century Edgar A. Ashcroft, a versatile and enterprising electrical engineer proposed the treatment of zinc rich ores by roasting, followed by leaching to extract zinc, purification of the solution and electrolysis of the purified solution to produce zinc. Residues from the leaching operation were to be smelted in a lead blast furnace to recover lead, silver and gold.Ashcroft (1897-98) and (1898) has.given us a most interesting record of the attempts made at the Sulphide Corporation's plant at Cockle Creek near Newcastle, NSW, to put his ideas into practice. In spite of the best efforts of all concerned, including the use of electrolysis of aqueous chlorides and sulphates, zinc could not be deposited consistently and the project failed although lead smelting continued until 1922 (Woodward, 1965, p. 158). Based on later experience with Broken Hill materials the presence of undetected cobalt in the solutions was the likely cause of the inability to deposit zinc (Kirk and Othmer, 1956).

Jan 1, 1985

By J Poniewierski, Varcos D

Efficient blasting requires constant vigilance with respect to the actual layout being used in the field. Objective measurement techniques are required in laying out a pattern as the 'by eye' or 'thumb suck' methods cannot guarantee consistent results in layout. Erratic blast results are the consequence of such an approach. In a case study at Sons of Gwalia mine, it was demonstrated that incorrect front burdens had a snowballing effect on otherwise carefully laid out blasts, resulting in both excessive amounts of boulders caused by preconditioning of bench fronts and tops, and tight digging. Both problems caused lower excavator productivity and excessive excavator damage, as well as making it difficult to set out subsequent blasts correctly. Several field measurement methods are available to aid in determining correct blast layouts and one is described in this paper.

Jan 1, 1994

The history of the discovery and development of the Kambalda nickel orebody. is reviewed and the decision to process the Kambalda concentrates by the Sherritt-Gordon process at Kwinana is discussed. The Kwinana Nickel Refinery is described and the problems encountered in the first year of operation are Outlined.

Jan 1, 1971

THE question of dealing with the small quantities of copper found in a great many of the purchased ores became a factor of importance when the Sulphide Corporation decided to refine its own lead bullion, as the presence of this impurity has a marked effect on the efficiency of the de-silverizing operations of the Parkes process. Removal of the copper from the base bullion.The copper is removed from the base bullion by drossing, which collects the copper, and at the same time has considerable gold, silver, and lead values. The drassing of the bullion is done in two stages-firstly, at the smelters; and secondly, in thecopper kettles at the refinery. In both cases a "wet" dross is produced, which is subsequently "sweated" in a suitable type of furnace. When "dry" the dross is raked out and stored until enough accumulates to warrant a nUl on dross in the small blastfurnace kept for that purpose. A typical assay of the "dry" dross is as follows...WORKING THE DROSS UP TO LOW-GRADE CU-PB MATTEThe accumulated dross is treated in a small blast furnace with the necessary fiuxes, producing a low-grade Cu-Pb matte and base lead bullion.

Jan 1, 1920

By P Knights

This paper examines the process and specialised skills required to extract insight from data routinely collected by mine operations, maintenance, engineering and environmental departments. Typical insights include: enhanced understanding of root causes; recommendations for next best actions; and simulation of likely scenarios. The skills required for advanced analytics are not currently the domain of mining engineers. The professions required by tomorrow’s mines are likely to be diverse and multi-disciplinary, and will include control engineers, software engineers, mathematicians and statisticians. A case study is presented that correlates mobile equipment production delays with rainfall events across three mines on the east coast of Australia. One mine is shown to have significantly more rain related downtime than the other mines, providing compelling evidence to improve productive performance.

Nov 22, 2011

By P Cesare, S Munro, D Wandel, R A. Bearman

Consideration of the processing plant operational envelope is a key factor in production scheduling,and therefore mine planning, for any mining operation. In many cases hard-wired or regressionbased tonnage-grade-recovery relationships are used as mine planning constraints and as a means of valuing the system output. In extensions of this type of approach, various regressions can be used to describe throughput limits, based on a number of global metallurgical parameters.The ultimate position for the optimisation of a mine plan and production schedule is to have a full process plant model running as an integrated part of the mine planning exercise. A plant model suitable for this needs to have all the required sensitivities to input parameters such asfragmentation, grade, mineralogy, strength and hardness. The model then needs to convert these to performance measures for the plant, which include recovery, throughput, product size distributions, energy consumption, water use and operating cost.In this paper an approach is outlined that takes this view and then goes beyond it to provide a full, time-based bottleneck identifi cation and valuation tool.Using such an approach it becomes possible to run mine plans and production schedules in windows of days, weeks, months and over the life-of-mine with a time-enabled process model acting as the active constraint. In this way virtual bottlenecks can be identifi ed for various mine plans and schedules well ahead of time. The value of de-bottlenecking can be defi ned, not just at a plant scale, but in terms of the overall mining operation, and the data can be used as the basis for capital investment decisions.CITATION:Bearman, R A, Cesare, P, Munro, S and Wandel, D, 2014. Incorporation of a full process plant model as an active constraint for mine planning and production scheduling, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014 , pp 121–128 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014

By S E. Thornett, P L. Kitto, R S. Longley

"The Mbalam Iron Ore Project covers mineralisation in two areas of metamorphosed hematitic banded iron formation (itabirite) in the north-west Congo Craton; namely at Mbarga in south-east Cameroon and at Nabeba in north-west Republic of Congo. The site locations are shown in Figures 1 and 2.The Mbalam Project history is an example of a compressed, yet highly successful, exploration timetable. Due to the thick inaccessible equatorial forest location, the first access was by helicopter in February 2007 at the Mbarga Deposit. Drilling commenced four months later in June 2007. A maiden JORC Code compliant æhigh-grade hematiteÆ inferred mineral resource (190 Mt at 60 per cent Fe) was defined in May 2008, followed by a maiden æitabirite hematiteÆ inferred resource in July 2008 (1.2 Bt at 37 per cent Fe). Subsequently, road access to Nabeba was established in January 2010, with a maiden high-grade hematite inferred mineral resource (200 Mt at 63 per cent Fe) identified only five months later in June 2010. A maiden itabirite hematite inferred resource at Nabeba was announced in June 2012 (1.4 Bt at 34 per cent Fe). The success of the exploration programs has been due to two main factors: Establishment of high-quality camps and facilities at Mbarga and later at Nabeba in Republic of Congo. Exploration support included satellite links for site servers and communications, field logging computers, data acquisition software, an on-site sample preparation laboratory, portable hand-held X-ray fluorescence (XRF) and company-owned drill rigs from 2009. An experienced and dynamic technical support group based in Perth to provide database facilities, data evaluation, internal auditing and software support, resulting in expedited resource estimation and economic evaluation with state-of-the-art mining software. In June 2012, Sundance Resources Ltd announced the current mineral resources for the project of 775.4 Mt at 57.2 per cent Fe of high-grade hematite and 4.047 Bt at 36.3 per cent Fe of itabirite hematite. In December 2012, high-grade hematite ore reserves of 436.3 Mt at 62.6 per cent Fe were announced. These world-class resources and reserves have been delineated and evaluated in a very rapid time frame. This would be considered extraordinary in any environment, let alone in the remote equatorial forest of central Africa.CITATION:Longley, R S, Kitto, P L and Thornett, S E, 2013. Exploration history of the Mbalam Iron Ore Project, in Proceedings Iron Ore 2013 , pp 107-116 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Aug 12, 2013

By V Kumar, A S. Venkatesh, R K. Upadhya

The enormous iron ore deposits of eastern India are part of the volcano-sedimentary basins containing iron and to some extent manganese deposits that belong to the Iron Ore Group (IOG) of Archaean Singhbhum Craton, occurring as western and eastern limbs of a broad synclinorium. The eastern iron basin contains typically huge amounts of blue dust and powdery ores. There is a remarkable difference between the western flank ores and the eastern flank ores and the present study is part of the eastern flank ores from Noamundi. Demand for sintered fines as blast furnace feed coupled with the higher export price for lumpy ores that produce enormous amounts of fines during processing has created a situation whereby both primary and secondary fines, such as classifier fines, are being increasingly used as sintered feed for blast furnace. Systematic mineralogical and geochemical characterisation indicates that in many cases the ROM and classifier fines have to be processed to increase their Fe content and at the same time reduce their Al, Si and P contents. The fines which are already at micron sizes are amenable for beneficiation using the Mozley mineral separator and sink float test. It was observed that beneficiation was better and significantly greater by the sink float method than the Mozley mineral separator. Mineralogical and chemical studies of the fines reveal that around 80 per cent of alumina bearing minerals (gibbsite, clay and silicates) are present in the liberated form. Microscopic studies confirmed that the iron minerals are well liberated by controlled grinding to -300 mesh sizes with the beneficiation of iron ore fines and low-grade ores carried out using the Mozley mineral separator and sink float test. Beneficiation using the Mozley mineral separator increased the grade of concentrate with increasing flow rate of water as well as increase in amplitude of oscillation of the tray, but not very significantly with the increase in slope of the tray. In this method, though, iron concentration improved from 47 to 63 per cent with a recovery of around 67 per cent. It is not suitable for industry scale operation as only a small quantity of ores can be handled at a time. Beneficiation using the sink float test produced a better result with the Fe content increasing from 47 - 49 per cent to 66 - 68 per cent with a recovery of approximately 58 per cent. Initial feed Al2O3, SiO2 and Fe contents of 9.85 per cent, 15.3 per cent and 49.8 per cent respectively were beneficiated to 2.13 per cent Al2O3, 1.5 per cent SiO2 and 67.5 per cent Fe in the concentrate, with a recovery of 54.1 per cent. In contrast, using the Mozley table resulted in beneficiable contents 66.3 per cent Fe, 3.01 per cent alumina and 2.05 per cent silica. The combined alumina and silica content for the Mozley Table was >5 per cent, which exceeds the industry requirement of

Jan 1, 2005

By C A. Brannon, C A. Dipas, H A. Vega, D Villa

The development and construction of the Grasberg block cave mine (GBC) is in progress, currently targeting initiation of caving in late 2018. Current production planning anticipates ramping up to full production of 130 000 to 160 000 t/d by 2027. As GBC approaches the production phase, there is a high priority on increasing the accuracy and level of detail in the production plan. The advance of the cave front directly controls the drawbell opening rate that is achievable. Therefore, an essential component of this plan is to produce an undercutting and drawbell sequence that honours the caving parameters that have been set for the mining blocks by the GBC production planning team.The PT Freeport Indonesia (PTFI) mine planning team and the Geovia caving business unit have developed a computational tool (Undercut Tool) capable of generating an undercutting sequence that follows a set of caving rules, such as advance rate per tunnel, maximum blasted area per period, control of lead-lag and shape of the undercut face. This tool also produces a drawbell sequence that honours the undercutting advance sequence, which is ultimately used to generate a life-of-mine production plan. This paper describes the inputs and outputs of the Undercut Tool that have been used to compute the long-term production plan for the GBC mine. It will further describe how the Undercut Tool takes into account operational constraints and geotechnical considerations that must be considered when developing a defendable production plan. Included is a discussion of the initial results of the planning outcomes from the tool; it will demonstrate how this work will support specific aspects of the plan such as the detailed undercut production drill and blast plans for the drill ring sequence, as well as how that plan will drive the drawpoint opening plan.CITATION:Villa, D, Brannon, C A, Dipas, C A and Vega, H A, 2017. Integrated drawbell and undercut scheduling using a computational tool at the Grasberg block cave mine, in Proceedings 13th AusIMM Underground Operators’ Conference 2017, pp 271–276 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 16, 2017

By B Maybee, L Fava, D Millar

In the context of a case study for an underground gold mine, the value generated by a schedule optimisation tool (SOT) is assessed. SOT is a software tool for underground mine planning that maximises the net present value (NPV) of a development and production schedule. A baseline study measures the NPV of a schedule generated by SOT from a sequence prepared by the site mine planners. Operational resource constraints and precedence constraints are adhered to by the schedule and NPV is evaluated with a financial model including revenues, costs and discount rate, as specified by the mine planner.The case study has several facets in addition to the baselining component. Scenarios were conducted that examined the degree of constraint on operational resources, the projected gold price and unit costs. Life-of-mine schedules subject to optimisation using SOT allowed for equitable comparisons.Haulage was identified as a dominant constraint for the mine. It was one of six operational resources that were used to constrain the optimisation of the mine schedule, with alternative levels for some of these constraints being identified so that their effects on the NPV could be studied. Alternative price projections for gold and different cost projections were identified and their effects on the optimised schedule examined. Price and cost scenarios that brought additional economic material into the schedule at various times in the mine life were considered in comparison to a scenario that assumed no additional economic material would become available.This case study illustrated that the use of a schedule optimisation tool to optimise mine schedules provides mine planners with an ability to perform a wide variety of analyses in a relatively short period of time. Such tools thereby support strategic decision-making that can add significant value to an orebody.The case study demonstrates that by fixing the set of development and production activities to be carried out before optimising the life-of-mine schedule, the mine planners can inadvertently set up a situation where the NPV would be progressively eroded in the last several years of the mine life. This clearly illustrates the need for schedule optimisation to be integrated with life-of-mine planning.CITATION:Fava, L, Maybee, B and Millar, D, 2012. Decision support for an underground gold mining operation - A case study using the schedule optimisation tool, in Proceedings Project Evaluation 2012 , pp 41-48 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

By D Xu

BHP Billiton Iron Ore is one of the world’s premier suppliers of iron ore. It currently has operations in Western Australia and Brazil and also has some iron ore interests in West Africa.BHP Billiton’s Optimisation R&D team has developed a proprietary mine planning optimisation tool that uses a mixed integer linear programming (MILP). This tool is called Blasor and it is used to rapidly evaluate the resource development potential (RDP) scenarios for the company’s business development strategy. In addition it generates life of asset (LOA) mine plans for the company’s operations and growth projects. The Blasor optimiser maximises the discounted operating cash fl ow (DCF) as the objective function, subject to mining, processing and transportation capacity constraints and blended product quality constraints. The paper will outline how Blasor has been applied to the resource development potential (RDP) strategy scenario studies, growth project evaluations and LOA mine planning within BHP Billiton Iron Ore.The practical application of Blasor to resource planning optimisation within BHP Billiton Iron Ore has demonstrated the value of such a tool for optimising strategic directions through the evaluation of a number of carefully proposed scenarios and maximisation of operational decisions, such as cut-off grade, open pit development sequence, etc. Particularly for the company’s business development direction studies, Blasor plays the role of a fair valuation tool in that it discovers the most valuable resource development scenario, thus establishing a sound basis for comparing the economic merits of each scenario.

Jul 11, 2011