Search Documents

By A Chandra, P Guj

Only a few complex real options can be valued using closed-form equations, such as the Black and Scholes formula, because these algorithms are restrictive and prevent the construction of practical project evaluation models. Although a binomial lattice method paired with the ærisk-neutral probabilityÆ provides an easier and flexible modelling of exploration and mining projects, it has limitations when projects are complex, long-lived and influenced by the interplay of various market and private uncertainties. In order to overcome these limitations, modern decision tree software using dynamic programming capability can be used for real option valuations. This is a powerful computational tool in which the impact of various sources of uncertainties can be differentiated, so that the optimal decision path can be explicitly displayed visually. There has been significant academic controversy surrounding whether different real option (RO) valuation methods would lead to different real option values (ROV). This paper, using a realistic copper mining example, demonstrates that as long as the same degree of subjectivity and consistency are used in different real option valuation methods, they yield the same result. This conclusion is valid irrespective of whether the cash flow volatility generated by various sources of uncertainties is handled in an aggregated or in an explicit and differentiated manner. This paper compares two choices for an investor either to æbuy now and developÆ a project or to enter into a ætwo-year option to purchaseÆ after the proponents have developed it. It also shows how significantly different net after-tax operating cash flows may be generated by these different choices on the same underlying asset represented by the project. This is due to the difference in the amount and timing of the relevant capital investments affecting the depreciation and amortisation charges and as a consequence, the income tax paid. CITATION:Guj, P and Chandra, A, 2012. Real option valuation of mineral exploration/mining projects using decision trees - Differentiating market risk from private risk, in Proceedings Project Evaluation 2012 , pp 177-188 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

Mechanical and electrical (M&E) systems in road tunnels are constrained by the traffic envelope and the construction profile. Whilst these spatial constraints are often ælocked inÆ early in the design process, the detailed M&E design continues for some considerable time after key civil engineering issues have been resolved. Ventilation design criteria for both normal and emergency operation often involves considerable negotiation with a wide range of stakeholders. Final system performance and spatial requirements are only finally resolved when suppliers are selected following the tender process. Lighting design is dependent upon a wide range of factors including tunnel lining materials and associated colours as well as agreed maintenance regimes. Cabling systems can only be developed when the general arrangement for power distribution is agreed and a system of substation, switchrooms and equipment rooms is in place. Many other systems such as fire protection and communications facilities fill the available space beyond the traffic envelope, where physical, structural and æsight lineÆ requirements must all be accommodated. The more co-ordinated civil engineering and M&E design is and the earlier the process starts the better the outcomes for all parties.

Jan 1, 1999

The ""multiple of exploration expenditure"" method of mineral valuation is applicable to exploration properties from the earliest stage of exploration to a moderately advanced stage but for which no resources have been delineated. While not recommended as a primary valuation method by some workers, others believe it to be the most satisfactory method of valuing exploration properties until it is possible to employ a DCF technique. In many situations facing the professional valuer, the method may represent the only semi-quantitative option available and is frequently used. Significantly it often forms the starting point in discussions to farm-in on an exploration tenement. The paper briefly reviews the definition of value as applied to mineral valuation and in particular examines the relationship between fair value and market clearing price in ""fair"", bull and bear markets. The multiple of exploration expenditure method uses previous exploration expenditure and/or future committed exploration expenditure to derive a base value for the tenements. This base value is multiplied by a prospectivity enhancement multiplier (PEM) with adjustments for market premium or discount and consideration of the quality of the exploration team to derive a fair value for the tenements. The paper will demonstrate that there is no necessary nexus between fair value derived from the method and present book Values.

Jan 1, 1994

By C W. Davis

Every diesel engine emits approximately 100 million nano diesel particles (nDP) per cubic centimetre of raw exhaust. Each nDP has a diameter of between 50 and 70 nano metres or 1/100th the size of red blood cells (diameter of between 6 and 8 microns). When inhaled, some nDP pass through the lungs and penetrate all body tissue [1]. Europe and North America have recognised and are addressing the long term health problems posed by nano diesel particulate matter (nDPM) across their societies [2.3]. Australia has been slow to recognise the issue, at both a societal and mining industry level. There are chronic health effects for every underground miner and serious legal issues for mining companies with increasingly stringent Occupational Health and Safety legislation being implemented at a state level across Australia. This paper will review progress within Australian society and more particularly the underground hard rock mining industry, particularly in Western Australia (WA).

Mar 15, 2021

By C Slaughter, J C. Tien

Commonly held ideas about effective training have long emphasised the importance of realism. Realistic training builds better experience among the trainees and a better perspective on the training material, making training more effective. While great strides have been made in this realm for mine safety and mine rescue training there are still areas that can be improved. One possible area is the expanded use of a mine fire simulation program where the migration of gases and smoke can be realistically displayed in an emergency, and outcomes varied as different conditions are being simulated. The use of mine fire simulation software potentially allows for the creation of more realistic scenarios in that smoke advance rates can be measured and recreated in evacuation scenarios, or that gas readings in mine rescue training can be dynamically and realistically changed to show the effect that time has on the fire scenario.CITATION:Slaughter, C and Tien, J C, 2015. The potential use of mine fire simulation software as an enhancement for mine safety and mine rescue training, in Proceedings The Australian Mine Ventilation Conference, pp 285–290 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 31, 2015

By O Omidi, P D. Katsabanis

The effect of delay time on fragmentation has been discussed for a long period but rarely in a satisfactory and unbiased way. Despite the efforts of many researchers, delay selection for fragmentation improvement or optimisation remains a controversial issue. Large-scale tests have been plagued with scarcity and scatter of observations, while small-scale tests have been associated with boundary effects and energy losses. Theoretical work is often used to produce explanations for available measurements or tries to simplify wave propagation and wave interaction to guide observation and practical work. The present work analyses results obtained from a relatively large number of small-scale experiments in blocks made of grout, and re-analyses results of previous experiments, to conclude on the effect of delay on fragmentation. It is shown that the main contribution of the delay is found in the fragmentation of the larger fragments of the blast, while the small fractions show almost no effect. Samples, where copper liners were used to inhibit penetration of detonation products in the rock mass, showed effect of delay only when short times were used and steady but poor fragmentation when long delays were used. Based on small-scale experiments, it appears that the fragmentation is optimised when a hole fires prior to the radial cracks, produced by the previous hole, reach the free face of the blast. Gas penetration may result in the development of few more fractures that affect the fragmentation of the largest particles of the blast.CITATION:Katsabanis, P D and Omidi, O, 2015. The effect of delay time on fragmentation distribution through small- and medium-scale testing and analysis, in Proceedings 11th International Symposium on Rock Fragmentation by Blasting, pp 715–720 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 24, 2015

By A Castillo, K Wiese, L Panduro Robles

For decades, organisations worldwide have been working to overcome challenges associated with new technology adoption while keeping up with rapid growth, development, and globalisation. In minerals processing, the challenges in developing and implementing solutions that contribute to the mining value chain are unique from other markets, as mining operations expect that world-class suppliers provide them solutions to gain a competitive advantage in their operation, production, performance as a financial asset, and as a long-term partner as we move into the future of mining. A simple shift in mindset is proven key to successful technology implementation. Change leaders must no longer think of their expertise in the area of application as their only responsibility; they must make a mental shift and see themselves in dual roles that strive to integrate the perspectives and needs of both developers and users. Successful change leaders must: (1) collaborate, seeking user involvement to ensure fit between product and operational needs, (2) demonstrate commitment to receive new technology, and (3) communicate to achieve an eventual shift of ownership from supplier to users that is seamless. Additionally, this strategy contributes to the mining value chain, as it allows developers and implementers to evaluate how change contributes to the asset’s position both within the company and in the commodities market. This paper will explain the shift in perspective for new technology implementation in detail and provide recommendations that operations can emulate, using examples of real challenges and lessons learned during a commissioning of the CYCLONEtrac™ Particle Size Tracking (PST) system at Cerro Verde’s C2 Concentrator. This concentrator has led technological change for plant optimisation, witnessed improved Net Metal Production (NMP), among other benefits with PST, the only technology in the market capable of providing real-time, online, and direct particle size measurement at the individual hydrocyclone level

Aug 24, 2022

The subject of the present paper will be combustion of fuel and as the combustion of fuel requires a certain amouut of air to effect combustion the question might be asked what is air?Air is composed, we will say, principally of two gases, oxygen and, nitrogen, but our business is with the former gas, and its leading feature as a supporter' of combustion. In point of fact no fire will burn without its presence, nor can animal life be sustained when this gas ls absent, because it is the life-sustaining element. For example, if we take a piece of charcoal, which is pure carbon, and burn it in the open air combustion takes place in the union of the carbon of the charcoal with the oxygen of the air, forming the compound known as carbonic acid (0.0.)The rust we see on iron and other metals is a kind of slow combustion, which is termed oxydation. When oxygen unites with any other element heat is given off in the process, and it may be here stated that the most intense heat is produced, by burning the two gases-oxygen and hydrogen in precisely the same proportions as that forming water.

The need to solve the problems associated with spontaneous combustion, system of ventil- ation and methane drainage in gassy coal mines has brought about the development of mining and degassing methods which has made possible up to 80% gas recovery in retreating longwalls. Beneficial results also were obtained mostly in the double or multiple-entry systems, but for single-entry systems and for a seam thickness exceeding 3 m, gas recovery rate is still very low. With some single-heading systems, such as those where a return roadway is not maintained in the goaf behind the face line, a new methane drainage technology is practiced. Attempts were made to extract methane from roof holes drilled from offsets in the ribside of the longwall block. The inclinations and lengths of the boreholes were planned and designed on the basis of the geological and mining condit- ions encountered at the time and every second hole was terminated precisely at the point where the previous hole intersected the immed- iate roof goaf area above the face. There are mathematical relations approp- riate to the design of the above drainage systems to give optimum methane recovery under the given conditions. Some examples of drainage have reached 87% recovery and have attained 94% CH4 purity.

Jan 1, 1982

By K Brand, M J. Ind, M Rynhoud

Water management at a tailings storage facility (TSF) presents one of the major risks to the safe performance of the facility. International and domestic dam safety guidelines assess a dam’s hazard category based on the consequences of a dam failure and the subsequent downstream damage to the environment and communities.Often a rigorous risk assessment is undertaken during the design stages to identify and control hazards associated with water management through life-of-mine (LOM) phases. However, as experienced during the recent downturn in commodity prices, early closure of a mine can occur rapidly and unexpectedly. Although guidelines such as the Australian National Committee on Large Dams Incorporated (ANCOLD) recommend that one of the key objectives of integrated TSF planning is to ‘plan all phases of a tailing dam’s life to ensure adequate storage capacity including early closure ’ (Australian National Committee on Large Dams Incorporated (ANCOLD), 2012) this is often overlooked by owners who are focused on fulfilling the mine’s potential and early closure is not on their radar.CITATION:Ind, M J, Rynhoud, M and Brand, K, 2016. Life-of-mine spillway strategy – managing risk associated with surface water at a tailings storage facility, in Proceedings Life-of-Mine 2016 Conference, pp 209–211 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 28, 2016

By C Linklater, A Garvie, D Kentwell

Various Australian and international regulatory bodies (Environmental Protection Authority, 2015) require an early assessment of the geochemistry of waste rock. This usually includes estimates of the locations and volumes of potentially acid forming (PAF) materials and requires sampling of the waste rock zones as well as submitting the samples for a series of tests. We know that the required number of samples will vary depending on rock type, mean sulfur levels and spatial variability of sulfur as well as total volume. The key question is how do we know when we have enough samples?This extended abstract describes the application of geostatistical methods to examine how sample numbers and sample locations influence the preliminary conclusions that may be drawn for early stage waste characterisation.CITATION:Kentwell, D, Garvie, A and Linklater, C, 2016. Geostatistics and sample numbers from an acid and metalliferous drainage perspective, in Proceedings Life-of-Mine 2016 Conference , pp 12–15 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 28, 2016

Kalgoorlie Consolidated Gold Mines Pty Ltd is currently developing the 'Super Pit' gold mine in the mining area known as the Golden Mile adjacent to the city of KalgoorlieBoulder, Western Australia. The presence of numerous abandoned mine workings and complex structural geology has required considerable geotechnical input into the determination of the optimum pit slope geometries for both interim and ultimate pit slopes. Slope design is based on detailed site investigation and stability analysis which is balanced with historical operational experience. This paper discusses the process of determining the optimum pit slope angles for each of the stages of the west wall of the 'Super Pit'. The risks associated with slope instability are discussed for each stage.

Jan 1, 1994

This paper records the observations of faulting in the Black Star mine workings. By classifying the faults into two groups, i.e., strike faults and transverse faults, and by pointing out the differences between the groups and their effects on the silver-lead-zinc orebodies, a time relationship between the two groups of faults and the sulphide mineralisation is suggested.GENERAL GEOLOGY AND MINERALISATIONFolding and faulting are closely related to the mineralisation in the shales by silver-lead-zinc and iron sulphides.Commonly the various sulphides are fine-grained and closely associated with one another. However, exceptions do occur locally, where massive coarse galena, sphalerite, pyrite, and to a lesser extent chalcopyrite, have been observed singly or closely associated one with the other.In the main, the sulphide mineralisation forming the orebodies occurs as replacement of, and infilling along, the sheared bedding planes of the finely bedded shale host rock.The shales in general strike north-south with an average dip to 60° to the west; strong shearing along the bedding planes is evidenced by much slickensiding and slaty cleavage.Sequences of finely bedded shales of varying stratigraphic thicknesses alternate with very. massive beds, and it is in the more highly sheared thinner beds that the greatest concentration of sulphides occurs. The unmineraIised massive beds of shale, 11 in. up to 12 in. in thickness, occur singly or in groups between, and to a lesser extent. within, the orebodies. The massive beds resisted sulphide replacement and impart to the orebodies a most prominent banded structure.

Jan 1, 1953

The Elgas Underground Storage Facility at Port Botany, Sydney, is the first purpose-built cavern of its kind in Australia and allows large capacity, safe and environmentally benign storage of Liquefied Petroleum Gas (LPG). The facility provides Elgas with the flexibility to source product at competitive prices and will ensure long-term security of supply. Construction has provided Orica Australia, formerly ICI Explosives, with a unique opportunity to provide a bulk explosive delivery system specifically designed to meet the exacting demands of the site (see Figure 1) and of the project.

Jan 1, 1999

By J Hadjigeorgiou, T R. Stacey

A ground support system is a combination of individual reinforcement and surface support elements that work together to retain and contain the rock mass. The various elements are subjected to external loads and to interactive loading between individual ground support system components. This paper focuses on the challenges in determining the capacity and behaviour of mesh, recognizing that installed mesh can be subjected to several loading mechanisms. Field observations from underground hard rock mines demonstrate that there are multiple types of damage and modes of failure of mesh. However, these are difficult to reproduce in a laboratory environment. A critical review has shown that existing mesh laboratory testing rigs reproduce very limited loading conditions that may not be representative of underground conditions. This has significant implications in quantifying and extrapolating the performance of mesh to ground conditions. CITATION:Hadjigeorgiou, J and Stacey, T R, 2018. Challenges in determining the capacity of mesh, in Proceedings The Fourth Australasian Ground Control in Mining Conference (AusRock), pp 280–290 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 30, 2018

Sophisticated pit optimisation software has allowed mine planning engineers to generate mining outlines that consider the numerous factors that have a major effect on the success or otherwise of a mine plan. The outlines are generally generated using a range of values for which one can assume a fixed mining cost and a variable revenue. During analysis, the expected costs and revenues are used to investigate the cashflow and sensitivities. Ultimately, the final pit and incremental outlines, or shells, are selected for a given expected price. This paper proposes an alternative method for incremental pit shell selection that considers the risk the mine be prepared to accept. The life of mine is divided into a number of Business Risk Periods (BRPs). The BRP represents the period of time over which the owner is prepared to invest capital. During each BRP, the mine will then operate at a selected investment cost which is generally equal to or greater than the minimum required to meet production targets. In this way, a robust mine plan can be produced which allows the mine to react to change without having to alter the incremental shell limits while maintaining a strategic risk profile. This paper will summarise factors to be considered in selection of the BRP and the incremental pit shells within the BRP.

Jan 1, 1998

By R Valenta, J Owen, D Kemp, E Lebre, G Corder, J Thomas

Numerous recent analyses have shown that future demand for a broad range of critical commodities is unlikely to be met by new discoveries and recycling alone. The only practical alternative source to address this shortfall comes from orebodies which are currently either uneconomic or inaccessible. A common assumption is that a simple rise in commodity price will render these deposits economic. The mining industry has a long history of innovation allowing economic production from increasingly low grade and technically challenging orebodies. Industry “roadmaps” have been produced on a regular basis, with the aim of identifying future innovations which will allow this progression to continue. At the same time, there have been relatively few systematic analyses of the actual range of challenges facing undeveloped orebodies. The aim of this study is to analyse the mix of challenges faced by a group of undeveloped orebodies in order to better understand the relative importance and necessity of innovations applicable to the deposits, with the ultimate aim of determining the relative value and impact of possible innovations to the economic viability of those deposits. CITATION: Valenta, R, Lebre, E, Kemp, D, Owen, J, Corder, G and Thomas, J, 2018. Can a simple price-rise unlock complex copper orebodies?, in Proceedings Complex Orebodies Conference 2018, pp 71–72 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 21, 2018

For some time the-mining industry has been criticised, completely unjustifiably, by certain people who style themselves conservationists but are actually preservationists. The criticism of the mining industry - and indeed all developmental industries has an emotional background and is not supported by facts. Some claims have been so disturbing that the Australian Mining Industry Council considered that the industry should do more in stating its position and attitude than has been done to date. It was therefore decided to request the Australasian Institute of Mining and Metallurgy (which is a technical organization) to join with it in presenting this seminar so that the subject could be examined on a scientific and factual basis, removed from the pressures of, emotion, and so that the media and the public could be presented with some basic factual data and, I trust, convinced of the soundness of the industry's attitude and policy. Many of the individuals in the mining and metallurgical industry are men who chose mining as a career because the location of mines gives an opportunity normally available only in the more remote areas. "These men do not want to see their countryside despoiled. '-The mining companies they manage and w rk for have accepted a responsibility to the environment which grows out of their close relationship with the earth.

Jan 1, 1971

By G R Ryan

Recent events have raised the issue of whether, and if so when and how, an explorer may gather data from a mining tenement or permit which is held under the relevant mining Act by another party. Two situations arise: that of the small operator who wishes to prospect, and if successful mark off, ground held by others by virtue of the local form of exploration permit; and that of a regional explorer who may wish to enter on to some one else's existing mining tenement within the region of interest. The legal situation varies from state to state. At present the broad consensus seems to be that, provided consent is given, small-scale prospecting on another's exploration permit is at least tolerated if not actually provided for by the relevant Act. Entry onto a granted tenement to carry out any form of exploration is, however, prohibited in all jurisdictions unless consent is given. Furthermore it would appear that the proposal and conclusion of a joint venture agreement places certain obligations upon the party proposing to carry out exploration. These conclusions apply where ground surveys are proposed. Where data acquisition is by aerial survey the situation is much less clear, principally it would appear, because up to now little thought has been given to it. If trespass applies at ground level, at what height does it cease to apply? Can aerial magnetometry or photography be classified as prospecting? Is there an obligation upon public authorities who carry out remote sensing to make data available to the holders of mining tenements within the surveyed areas? Moves are now afoot to address these and other considerations, and it would be in the interests of everyone if a national approach to the problem could be adopted from the beginning. Certain suggestions in this respect are put forward.

Jan 1, 1994

The optimisation and validation of shearer cutting methods is a time consuming engineering task. Many different parameters, of which not all can be controlled, can vary. The easiest solution, to increase the installed power and the longwall length, is not always the best. A different cutting method can increase the capacity without the need of new machines. The Department for Mining and Metallurgy Machinery at RWTH Aachen University therefore developed ProSL, the simulation tool for shearer and longwall operations. ProSL enables the engineer to create his own cutting methods and compare it with other methods. Machine-data can easily be varied to see the impact on the method. The research shows that sophisticated longwall methods increase the productivity of the system. The paper presents the results of the calculation with ProSL and shows how higher efficiency and lower costs can be achieved.

Dec 6, 2010