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By J McCluskey, N Barros

"Long-term strategic planning at BHP Billiton’s Western Australia Iron Ore business aims for sustainable value maximisation of its large, long-life, low-cost, expandable mineral inventory and supply chain infrastructure. While mine plans are key components of this value equation, this objective requires a whole-of-business approach through comprehensive consideration and optimisation of the full value chain. Only through a system view do we believe that the value proposition of a set of plans is truly optimised.The fundamental considerations include: mineral inventory information, given its intrinsic uncertainty and risk/knowledge horizon a marketing view of future quality premium/discount based on overall market quality load whole of supply chain optimisation on a throughput accounting basis alternative sequences of capital decisions closure costs with significant magnitude of total movement requiring optimisation as part of the plan. In addition, the plan provides a view of acceptable uncertainty levels at different times in the future.BHP Billiton Iron Ore uses a structured Life of Asset planning process that supports the business with the optimisation of its maximum value proposition through a non-deterministic scenario-based optimisation approach on an annual basis. This is a key input to each year’s medium-term plans and budgets, including activities identified through a value of information approach that resolve the key uncertainties and steadily improve confidence in the plan.CITATION:McCluskey, J and Barros, N, 2014. Life of asset planning, uncertainty and value optimisation of the iron ore business – from exploration, to market, to closure, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014, pp 33–40 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Nov 24, 2014

By C Fong

Compliance Planning is an active approach to ensure mining operations align more closely to their longer-term plans. Through Compliance Planning, operations can not only measure their performance on intervals as short as intra-shift, but they can then apply corrective measures to ensure they remain as close as possible to the plans. Compliance Planning targets short-term and execution level teams, as these are the shortest duration planning divisions commonly found in mining operations. Compliance Planning combines live information with intelligent planning capabilities to provide a framework that enables mining operations to realise a significant improvement in reconciliation of plan to actual movements.

Jun 22, 2022

By D Howe

The Athena gold deposit was discovered in 2007 by Gold Fields Australia Ltd, at the St Ives Gold Mine, 35 km southeast of Kambalda, Western Australia. Gold anomalism was identified in sheared Paringa Basalt as a result of a regional scale aircore drilling program, in association with geophysics. In the 18 months following discovery, the deposit was intensely drilled and by June 2009, it was announced that the Athena deposit contained an ore reserve of 1.7 Mt @ 5.6 g/t for 316 koz. This was followed by a feasibility study, and as a result mine development commenced in November 2009.The Athena mineralisation is hosted in a discrete, north-south striking, steep to moderately dipping shear zone within the southwest dipping Paringa Basalt. Vein intensity has a strong correlation to grade and vein type varies from early thin quartz-albite-sulfide (pyrite and/or pyrrhotite) shear parallel veins to strong brecciation and irregular veining with quartz-albite-actinolite-biotite-pyrrhotite infill. The geology preproduction process developed at the Argo mine was refined and improved following a business improvement project. The aim of the process is to construct detailed geological interpretations prior to development allowing informed mining decisions to be made. The process delivers significant cost savings and revenue enhancements.The development of macroscopic classification scheme was critical to determine ore or waste in the early phases of mining. The Style of Deformation, Alteration and Veining (SAV) Code was the result, and has been enhanced as greater geological knowledge is gained over time.

Aug 22, 2011

By G R. F Alvear Flores

Mineral resources are becoming more complex in composition and structure making it more difficult to produce clean concentrates for primary metal smelting. In parallel, providing technological solutions to the recycling and recovery of end-of-life materials is becoming more important in moving towards the goal of increasing circularity. The availability of fundamental thermodynamic data and advanced thermodynamic tools greatly assists in evaluating these complexities and their impact on existing and new processes. In addition, it is fundamental to support the economic performance of smelters. This paper describes several examples on how fundamental work can be applied to industrial processing..

Jun 17, 2024

Pyrrhotite is pyrophoric when in a finely divided form. The problems of disposing of large quantities of finely divided pyrrhotite separated out by metallurgical processing from ore are formidable. In the case of an underground mine, a solution to the problem of disposal is to place the pyrrhotite in the stoped out areas and seal from any air supply. Further, the pyrrhotite could be diluted with tailings which would reduce the possibility of combust- ion. Several enquiries to various centres and authorities have shown that the products of the slow oxidation of pyrrhotite with moisture present can cement an inert matrix into a stable fill similar in physical prop- erties to fill stabilised with Portland cement. Stabilised fill can be used to advan tage with a suitable mining method to provide high recovery. The investigation demonstrated that air and 15% w/w water must be present for the fill to harden and that the sizing of the particles is a critical factor in drainage of a hydraul- ically placed fill and subsequent even harden- ing of the fill in a stope. With the materials used in the experiments in which the - 51 micron component of the tailings had been dis- carded, an optimum mix was found to contain 4:1 tailings/slag ratio and an overall pyrr hotite concentration of 8% (all proportion by weight). Approximately 34 days after drain- age to 15% moisture in natural air flow condit- ions, an unconfined compressive strength of 1.862 MPa was attained. A subsequent experi- ment was conducted with a sample of optimum mix in a pipe one metre long in forced air flow conditions. At a superficial velocity of 3.Om per hour the mix required 155 hours to harden to 1.862 MPa after drainage to 15% w/w moisture content. The pressure drop bet- ween the top and bottom of the mix in the pipe remained constant at 9 KPa/metre length. This result suggests that forced air flow conditions will increase the rate of hardening. No dangerous effluents were detected in the course of the experiments which could affect mine equipment or personnel.

Jan 1, 1973

By N A. S Webster

The reaction sequences involved in the formation of iron ore sinter phases were determined using in situ synchrotron-based X-ray diffraction. Experiments were carried out using a synthetic sinter mixture containing 77.36 per cent Fe2O314.08 per cent CaO, 3.56 per cent Si.O2 and 5.00 per cent Al2O3 corresponding to a basicity of ~4. The alumina content represents the upper level of alumina concentrations measured in phases formed in industrially produced plant sinter. Data were collected during heating of the sample to 1350°C under an atmosphere of 0.5 per cent O2 in N2, equivalent to an oxygen partial pressure of 5 × 10-3 atm. This temperature was sufficientto ensure melting. Data were also collected on cooling of the sample back to room temperature to examine recrystallisation of phases from the melt.Results showed the sequence of reactions initially involved the formation of calcium ferrite phases C2F and CF. These subsequently reacted with the silica and haematite leading to the solid state formation of SFCA and SFCA-1. SFCA and SFCA-1 were the last phases to form in the system and were both stable up to ~1260°C. Above ~1260°C, melting of the SFCA phases and reduction of the remaining haematite occurred producing the assemblage magnetite + melt.During cooling, both SFCA phase types recrystallised from the melt initially coexisting with magnetite until secondary haematite formed. This is the fi rst study to demonstrate that both SFCA and SFCA-1 are precipitated from the melt during cooling of iron ore sinter. Future work will extend the range of compositions studied to examine the effect of basicity and alumina concentration on the phase assemblages as a function of temperature and oxygen partial pressure.

Jul 11, 2011

It is very rare in the underground hard rock environment to find a deposit that is ideally suited to a specific mining method. Usually the irregular shape of the orebody will allow the deposit to be extracted by more than one mining method. During the prefeasibility stage, a number of conceptual mine designs are generally evaluated to see which offers the best method of extraction for the deposit. The selected method is usually based on key decision criteria such as the overall extraction of the orebody, the amount of metal produced annually and the unit cost of production. Often the prefeasibility study document will state that the project has an NPV of æxÆ million dollars. This statement can be made without any quantitative consideration of the likely risks of the mining methods reviewed or the level of confidence in the estimation of the NPV. By assigning a probability of failure to each component of the mining cycle a measure of the risk for each method can be determined. One mining method may provide the highest NPV when it is performing well, however, there may be a higher risk of a major failure impacting on the performance of that method, eg the failure of a mass blast of a crown or rib pillar. This paper will present a flowsheet approach to the use of risk analysis for determining the likely production rates of different mining methods. This framework allows the annual metal output to be estimated and from this the NPV for each method. A level of confidence can be applied to the estimated NPV for each option. An example will be presented on how this technique has been used within the Normandy Group.

Jan 1, 1998

By O C. Aitken

Mining project developers are committed to taking on all the challenges and obligations of financial risk management. It is interesting that our current models of project finance have not changed markedly in principle for some 700 years, yet the rules which prepare the way for effective project assessment and subsequent loan management still do not seem to be well understood by project or corporate developers. Probability and gravity fill the opposing trays of the golden balance of financial risk. Understanding the relationship between these opposing, but intimately related elements is critically important for successful risk management. It is important to move beyond the qualitative approach and use quantitative methodologies to measure the financial impact of the occurrence of each major risk. We live in a world where the only constant is change and thus it is not surprising that a bankerÆs life is still governed by assessing, measuring and pricing risk. Banks are attracted to funding well managed companies with strong cash flow projects. But we are more risk averse compared with the credit appetites of late last century. This attitudinal shift has resulted in tougher term sheets for the early 21st century, encompassing more conditions, warranties, undertakings and stronger cash sweep provisions. Banks require well balanced portfolios to achieve an acceptable spread of risk, thus there is a more restricted market for small company lending than that available to large multi-project corporate entities with less concentrated risk profiles. Because of this focus, junior company debt finance remains comparatively expensive and especially so for more challenging geographical and political environments.

Jan 1, 2004

By D Tucker, K Harney

Hatch forecasts that an increasing share of seaborne traded iron ore will be ultrafine, being either concentrate or pellet feed. This provides several challenges for the iron and steel industries, but the principal concern is: how much ultrafine iron ore can be consumed on sinter strands and with a minimal effect on productivity?This paper will identify new supply by project through 2020. Demand will be estimated for sinter production and practical steps will be identified to increase ultrafine consumption in sinter strands. The long-term iron ore price will be forecast to balance supply and demand. The paper will conclude by assessing how the pricing of ultrafine ore will develop relative to the Chinese iron ore indices.CITATION:Tucker, D and Harney, K, 2015. Iron ore ultrafines challenges and opportunities, in Proceedings Iron Ore 2015, pp 501–504 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

By K Rau

The overall success of a mining operation is directly impacted by the reliability and availability of mining equipment. Heavy-duty vehicles such as excavators and haul trucks are used for conveying of bulk material and improving such assets’ availability helps reduce costs, increase throughputs and improve safety (Ravande, 2022). If a mining operation’s key performance indicators (KPIs) are tied to operational performance, then overall equipment effectiveness (OEE) is an essential metric to track progress and to identify areas of improvement.

Sep 1, 2024

By R Burke, G Ramage, C Donnelly

Over the decades, Redpath has undertaken a multitude of tunnelling and underground excavation projects for civil and mining clients both domestically and internationally. These projects have been undertaken through varying strata conditions with differing excavation methods in remote locations and in central business districts.With the recent turbulent nature of the global financial environment, project drivers have been challenged with the emphasis being placed on methods to gain early access to orebodies, rapid development techniques, lower capital costs and reduced labour requirements to name a few.A number of mining companies seeking to achieve these objectives have commenced the journey to better understand the operational constraints, challenges and opportunities that may be available with the use of alternative excavation methods.The development of safe and effective alternative excavation methods that comply with both domestic and international mining legislation and regulatory requirements is a challenge the industry needs to embrace. Given the current cost pressures being faced by the Australian mining industry, some alternative excavation methods offer the potential for longer term sustainability and rapid development of resources.More recently work has been undertaken on a project that challenged the norm and implemented an alternative excavation method with the use of an excavator with a rotating drum cutter head.This paper will review this recent project and provide technical and operational insight into some of the challenges faced in implementing an alternative excavation method in the metalliferous industry.CITATION:Donnelly, C, Ramage, G and Burke, R, 2014. Challenging the norm – alternative excavation method in mining, in Proceedings 12th AusIMM Underground Operators’ Conference 2014 , pp 187–190 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Mar 24, 2014

By Rowe J

The case study is based on the largest ore deposit at Mt. Lyell; the Prince Lyell deposit, comprising a regular lensoid mass of dissemina- ted and vein pyrite-chalcopyrite mineralisation. Reserve estimation employs conventional techniques, based on diamond drill hole and relevant development sampling data. Probable ore reserves are estimated using the contouring (isoline) method an longitudinal projections for ore thickness and accumulation (m %Cu) at a '0.8% Cu' cutoff. Final stope and pillar res- erve estimates (proved ore) are derived from designed ring tonnages and contoured accumula- tion for individual mining units, following more intensive sampling. Systematic grade control procedures have been adopted and individual stopes and pillars reconciled against mill production. The proved ore estimates have been found to com- pare favourably with the reconciled production.

Jan 1, 1979

The Mammoth Copper Deposit consists of three distinct orebodies adjacent to the Mammoth Fault. This fault is arcuate, changing from a normal tension fault to a shear strike fault just to the north of the mine. Movement on the fault was probably contemporaneous with deposit- ion of the adjacent sediments. In the upper levels the No. 1 orebody occurs within a brecciated zone in the footwall of the fault, but at depth the No. 2 and 3 orebodies are stratabound by two brecciated lithologic horiz- ons. The host rocks are impure sandstones, arkoces and quartzites, which in the mine area are near the top of the Lower Proterozoic Myally Beds. Overlying these beds is a conglom- erate siltstone sequence which has been assumed to be the base of the Gunpowder Creek Formation. North and south of the mine the conglomerate rests on an erosional unconformity representing a major time break, but in the mine the uncon- formity and conditions of deposition of the conglomerate are obscure. Some mineralization is contained within the conglomerates. The sulphides present are chalcocite, bornite, chalcopyrite and pyrite. Chalcocite is dominant in the upper levels but could be en- riched by supergene processes. At depth, bornite becomes the dominant copper sulphide with lesser amounts of chalcopyrite, pyrite and primary chalcocite. Throughout the orebody minor digenite and covellite occur and arsenic is a minor constituent bound up with the pyrite. The bulk of the sulphides occur in stringers, fractures and breccia interstices but finer grained primary bedded sulphides can be observed. The genesis is probably a complex process in- volving active tectonic movements extending from deposition to post lithification giving numerous phases of brecciation and redistribut- Ion.

Jan 1, 1974

By H Arvidson, V Chamberlain, R Marinho, B Parsons, T Rowl, M Noppé, M Mattera

With the introduction of CRIRSCO (2019) based mineral asset disclosure, Regulation S-K part 1300, 2019 (S-K1300) by the United States (US) Securities and Exchange Commission (SEC), applicable to companies listed on the New York Stock Exchange from 2021, Mineral Resource is now required to be reported Exclusive of Mineral Reserve, referred to here as ‘Exclusive Mineral Resource’ (EMR). EMR is equivalent to reporting Mineral Resource additional to Mineral Reserve, which has been permitted in jurisdictions outside the US for many years. Despite this, there are no practical guidelines in the literature or relevant reporting codes and rules for Competent/Qualified Persons to refer to, which creates a risk that disclosure of EMR estimates across the industry will be inconsistent and potentially ambiguous for analysts, investors, potential investors, and other stakeholders.With the introduction of CRIRSCO (2019) based mineral asset disclosure, Regulation S-K part 1300, 2019 (S-K1300) by the United States (US) Securities and Exchange Commission (SEC), applicable to companies listed on the New York Stock Exchange from 2021, Mineral Resource is now required to be reported Exclusive of Mineral Reserve, referred to here as ‘Exclusive Mineral Resource’ (EMR). EMR is equivalent to reporting Mineral Resource additional to Mineral Reserve, which has been permitted in jurisdictions outside the US for many years. Despite this, there are no practical guidelines in the literature or relevant reporting codes and rules for Competent/Qualified Persons to refer to, which creates a risk that disclosure of EMR estimates across the industry will be inconsistent and potentially ambiguous for analysts, investors, potential investors, and other stakeholders.

May 24, 2023

By R van Wyk

In today’s mining environment the use of heavy mechanical devices and other high-tech electronic devices like two-way radios, cellular phones and even automated mining systems, form a vital part of the daily operations of a mining site. These human-made devices and some of the naturally occurring events, like lightning and gamma radiation, can have negative effects on electronic detonators and the associated control equipment.On larger mining operations the necessity to move the point of safety for blasting further away from the blast area, introduced remote firing via radio frequencies for electronic detonator systems. Other influences on electronic detonators can be abuse or ignorance. To ensure the safety of the end-user, an electronic detonator must be resistant to some common mistakes that users can make. One of main concerns here is resistance to static discharge or incorrect wiring. Despite the daily use of electronic detonator solutions, scepticism and concern still exists amongst those who believe the system raises the risk of a premature initiation of the blast through some form of interference trigger.This paper will help users understand how electronic detonators and the associated control equipment protects itself from external influences. Focus will be on protection schemes to counter static and over-voltage discharge and methods to ensure protection of secure wireless radio links and detonator communications. With well engineered communication systems and solid static and over-voltage protection, an electronic detonator system can be more reliable and safer than other detonator systems. The following main points will be discussed:what makes a detonator an electronic detonator,static electricity and over-voltage protection,the general influence of electromagnetic energy on the detonator,the influence of lightning on detonators,the protection of radio communication’s links as used by remote firing equipment, andthe safety protection features built into remote firing equipment.

Nov 8, 2011

It is possible to closely simulate the product sizing distribution from an industrial rod mill by the correct choice of parameters in laboratory batch milling. For laboratory batch rod milling, changes in per cent critical speed and per cent rod volume cause the product sizing distributions to move in parallel at a constant slope. For ball milling, larger sized media in batch milling grind more coarse material giving a closer simulation to the industrial rod mill product. Changing the feed size distribution by removal of coarse particles or addition of fine particles changes the product sizing distribution, but would not normally be practiced in laboratory testing. These data should be applicable to many instances where laboratory simulation of an industrial product size distribution is required.

Jan 1, 1998

A broker relies heavily on mineral valuations and independent experts' reports to provide the fundamental information, both technical and commercial, which provides the basis of estimating the sharemarket value of securities and underlying assets. It is important to appreciate the significant variance that can occur between the market value and other types of valuation at a particular point in time. In general, most experts' reports and valuations seek to provide estimates of technical/fundamental or ""fair"" value which correspond to the Corporations Law and accounting standards requirements. They do not usually attempt to estimate (stock) market values and it is usually and quite correctly the broker's task to estimate market values on the basis of a technical appraisal and consideration of all other commercial, market and financial influences. Therefore ideally, an independent experts' report or information memorandum will include material relating to commercial and management aspects of a company as well as detailed technical reviews and fundamental valuations. Wherever sensible cash flow projections can be made, cash flow-derived valuations, usually based on discounted cash flow (DCF) calculations, remain the preferred valuation methodology. Brokers in general would not argue with this preference. However, there is a paucity of examples of valuations where alternative methods are applied as a check on the reasonableness of a DCF-based estimate.

Jan 1, 1994

By I Gipps

Each of us has a vision of what the future mine will be and, generally, these visions have many similarities and some differences. One of the major discrepancies in visions of the future mine is not the ultimate goal but the path to achieve it. Many of the future concepts require a radical re-thinking of how things are and will be done yet. So how do we reach this visionary future mine? We need a path that satisfies both our future aspirations of a high tech gee-whiz operated from our iPads and the unfortunately mundane approach that says ‘we must know the method works, ie nothing new’.This paper explores how, within a research based organisation, we firstly set our ultimate goal and then divide the path into realistic technology development chunks that would appeal to mining companies to progress within their organisational constraints. Through examples, such as, automated LHDs, communications systems, surveying and localisation, rock cutting and geological sensing, we illustrate how this path will get us from the here and now to the out there future.This paper also demonstrates CSIRO’s short, medium and long-term research in many of the areas needed to create the Future Mine: mining methods, automation and remote control, mine communications, mapping and mission planning, geological sensing and, importantly, human-system integration, which examines how to effectively present data as information to operators and supervisors in an intelligent and useful manner.

Nov 22, 2011

By M Pomery

BHP’s Western Australian Iron Ore Operations (WAIO) move approximately 250 million tons of ore per annum. The magnitude of the constant changes to the terrain models along with the diverse output and presentation requirements of numerous stakeholders presents significant challenges for the geospatial team. This paper describes how the WAIO Survey team use a combination of technology and optimised workflows to capture, ingest, publish and access large data sets for diverse stakeholder requirements. Machine learning for processing of data and the use of web based systems to track and prioritise task allocation of resources will be discussed in detail, in addition to the changes to the traditional roles of surveyors from the use of automation and mobile technology.

Sep 18, 2023

By D Brereton, C J. Moran

Intensive resource extraction, in the form of multiple mining operations, presents significant assessment and management challenges for resource developers, governments, community and the environment. Cumulative impacts, ie the successive, incremental and combined impacts (both positive and negative) of an activity on society, the economy and the environment, can place significant pressure on social, economic and environmental capital and render conventional mine-by-mine approaches to management ineffective. Cumulative impacts can be what are most important to environments, communities and economies surrounded by multiple mining operations because cumulative impacts are what they experience. There is much to gain from increased consideration of cumulative impacts. Unmitigated impacts have the potential to delay or even prevent expansion of mining in existing and prospective areas. On the other hand proactive management of cumulative impacts can benefit regional environments and communities and contribute to the industryÆs social license to operate. Resources are often not the limiting factor to better cumulative impact management. More effective coordination of existing resources may go a long way toward mitigation and enhancement, and better planning and assessment may help avoid impacts and exploit opportunities for efficiency gains through reduced duplication. In this paper we draw from working examples to present five practical assessment and management strategies applicable to resource companies to enhance positive, and avoid and mitigate negative, cumulative impacts. The strategies are presented based on their capacity for achieving outcomes, ease of implementation and cost effectiveness and are drawn from a multi-year study on the assessment and management of cumulative impacts in the Hunter Valley, New South Wales and a follow-up study to improve cumulative impact assessment and management practice in the Australian coal mining industry, both reported elsewhere.  

Jan 1, 2009