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Having worked as a consultant for most of his 40-year working life, mostly as a mineral property valuer, the author has seen many poor valuations. Most were valuations of exploration tenements where the selection of the rather subjective, but necessary, geological inputs raised the main concerns. Those valuations involving iron ore prospects raise particular problems due to the special characteristics of such deposits. Iron ore is more like an industrial mineral rather than precious or base metals and Reserves are determined not by a traditional cut-off grade but by customer specifications. This is intended to be an overview/keynote paper on the current state of the growing (yet consolidating) Australian Iron Ore industry. It has now moved beyond Western AustraliaÆs æPilbara Big TwoÆ of Rio/BHPB (with the emergence of the irrepressible FMG and Hancock Prospecting) to include the YilgarnÆs æMidwest ManyÆ (including US re-entrant Cleveland Cliffs through Portman) and projects in other States. Ore types have moved from haematite Brockman to martite-goethite Marra Mamba (including the RobeÆs mesas and below water table Yandicoogina CIDs) and magnetite ore types. There are DSOs and secondary process feed. Mineral valuers have to reflect today upon these and many other determinants of value when choosing the most appropriate methodologies to adopt when technically assessing and valuing exploration tenements containing iron ore. Set against a frame work of the JORC Code (2004) and VALMIN Code (2005), the general valuation issues involved in using the cost methods (eg multiple of exploration expenditure), market methods (eg comparable sales, rules-of-thumb and joint venture terms) and income methods (eg synthetic discounted cash flow (DCF)/net present value (NPV) modelling) are discussed. Relevant factors when valuing iron ore properties are discussed, eg ore type, lump/fines ratio, stripping ratio, water table, impurities and grade, particularly the JORC confidence category of the identified mineralisation. Remoteness and access to existing rail infrastructure is a key consideration.

Jan 1, 2007

The face of project evaluation is changing continuously, making it ever more critical to get a clear understanding upfront of the objectives, decision-making processes and criteria of the project proponents. Requirements are usually significantly different for emerging æjuniorsÆ compared with long established major mining houses and companies in developing countries compared with western companies. Requirements are also different for different types of evaluations, such as due diligence studies compared with feasibility studies of æownedÆ projects and there are often key misunderstandings around the use of the term æbankableÆ. Further, it has become increasingly important with increasingly remote and lower quality resources to understand risk relativities such as infrastructure compared with the core processing facilities. This has also driven the need for more trade-off studies to determine the best balance between critical issues, such as optimisation of the interface between mine and processing plant, capital versus operating cost and automation versus labour. In every project evaluation, it is also critical to consider emerging trends and changing requirements and standards such as sustainability and community interface. Finally, the inescapable drive to reduce time to market has driven changes such as increased use of more standardised designs and innovative approaches to the transition from project development to execution. This paper begins with a brief review of the different objectives and risks of each project development stage to establish a framework for subsequent discussion of the different requirements of different types of companies in different locations, different types of evaluations and different types of projects and project components. This is followed by a review of changing requirements and standards and some innovative developments in sustainability and community interface are presented. Finally, the paper outlines a number of developments in the area of operational readiness planning that focus on minimising the time to achieve maximum return on investment.

Jan 1, 2009

By C J. Larder, S E. Turner

The concept of underground grinding is not new, but to a metallurgist and a mining engineer this could be considered unconventional. The idea of pumping a ground slurry several hundred metres from underground in a single lift could also be considered to present a daunting engineering challenge. Using a practical example of a mine in Australia where the owners have requested not to be identified, this paper challenges the conventional thoughts on these concepts and shows that with basic sound engineering practices the production of a ground slurry from underground could potentially provide significant operating cost savings. The supply of ore from the underground mine is currently drawn from depths approaching 800 m below the surface. The cost of hauling the ore to the existing underground crushing station located 500 m below surface has been steadily increasing. A number of alternatives to reduce the mining and processing unit operating costs were examined by Sinclair Knight Merz (SKM) and the mining company. The most radical of these is the use of hydraulic hoisting of ore at an increased production rate. Numerous questions were asked, such as: How does one get a SAG mill or an HPGR crusher underground? Where does one locate a grinding mill underground? Does the technology exist to pump the slurry to surface in a single lift? What will be the cost benefits? What are the risks involved? The study covered the two main technical issues underlying the potential benefits. Firstly, technical evaluations were undertaken on the pumping technology currently available for single and multiple lifts to surface. Secondly, the issues relating to the feasibility of delivering and locating a SAG mill underground were reviewed. Although the capital costs for this project are significant, the operating cost savings showed a potential payback period of less than two years, and furthermore provide the basis for an increased mine life, especially at lower metal prices.

Jan 1, 2005

By R Lovel, P Fung, J Manuel, M OÆCo

The iron blast furnace is the most widely used and efficient producer of liquid iron. The integrated steel works is however under environmental pressure largely due to emissions from sintering and coking. The combustion of coke breeze during sintering contributes to greenhouse gases (eg carbon dioxide) and is the source of much of the emissions of SOx and NOx. Coke breeze, the fines produced during coking of coal, is also suffering supply issues as coke demand increases while coking capacity is constrained by environmental concerns.CSIRO Minerals has been investigating the use of wood biomass/char as a substitute for coke during sintering. Wood biomass, or char produced from it, is an attractive carbon source as carbon dioxide can be sequestered into growing biomass prior to combustion. It has great potential to reduce the emissions from integrated steelworks and improve their environmental acceptability. Harvested biomass/char is also a renewable and sustainable resource. Samples of pine wood flour, sawdust and red gum wood char were characterised and used in small-scale granulation and sintering tests. Red gum char granulated as well as coke and could be used to make acceptable sinter. Large-scale sinter pot test were conducted with char to produce sufficient sinter for ISO quality tests and calculate sintering performance parameters. Results showed that coke could be completely substituted by red gum char during sintering without loss of quality and with actual improvements in sintering performance. Furthermore, gas analyses made during sintering showed that there were significant reductions in SOx and NOx when char was substituted for coke. It is anticipated that the results reported here, although preliminary, will stimulate an increased effort into further research on the use of char in iron ore sintering.

Jan 1, 2004

According to the Australian Bureau of Statistics, fatalities from road transport accidents represented an average of over 97 per cent of all transport related accidents between 1997 and 2002. With increasing traffic density, tunnels are becoming a more viable means of providing alternative travel routes to ease areas of congestion in the road transport network. However, unlike open road conditions, a fire incident in the confined space of a tunnel environment may impact upon many users that are remote from the incident location. In this context, designing for an appropriate level of safety in tunnels is therefore an important consideration for achieving consistency in the life safety measures for users of the road transport network. Unfortunately, like fire safety engineering design for buildings, there are presently no clear measures in the design processes to assess the adequacy of the design in terms of attaining the level of safety implicated in the design objectives. This is partly due to the indeterminate nature in which the design objective or the level of performance measure is stated û the intent of the objective is relatively clear but the measure of it is not. Another reason is the lack of a standardised procedure for determining the critical design variables affecting life safety. This is important to ascertain consistency in the use or adoption of the important parameters for design. This paper looks at the processes involved in the fire engineering design of road tunnels that are currently practised. A review of the design processes for fire safety in road tunnels is provided, which includes the range of fire scenarios in a tunnel environment, the traffic flow and composition, the relevant fire protection systems, the ventilation and smoke control system, the egress provisions and the benefits of incorporating fire brigade intervention. A simplified risk assessment approach is developed for a typical road tunnel to assess and evaluate the impact of a range of design parameters on life safety. Using a sensitivity technique, the important variables are then identified and means of reducing design variations associated with them are recommended. The technique may be further refined for use in the development of codes or guidelines in order to develop a suitable means of deriving more consistent design values, and hence achieve better consistency in the overall level of safety in the design.

Jan 1, 2008

By E Ferrow, R Herbert, M E. Malmstr, M Fuchs

The study of microbial sulfide oxidation and oxidation rates of tailings requires the use of sterile control samples in laboratory experiments for comparison purposes. The need for sterile tailings sand is also apparent in the study of microbial communities and processes. This study compares six different methods with regard to sterilisation efficiency and investigates chemical and mineralogical changes in the samples as the result of sample treatment. In addition, the effect of sterilisation on mineral weathering rates is also studied. The efficiency of the different methods with regard to sterility is estimated by most probable numbers (MPN) of both sulfur and iron oxidising bacteria. The sterilisation methods that were compared are: washing with sterile water, washing with ethanol, applying antibiotics, repeated heating to 70¦C, autoclaving, and γ-irradiation. There are several possible drawbacks with the different methods, including the risk of an applied chemical acting as a substrate for micro-organisms in the system, and the risk of altering the tailings. The results show a substantial difference in sterilisation efficiency between the treatments. For example, autoclaving, repeated heating, ethanol and irradiation efficiently kill micro-organisms, rendering an undetectable amount of bacteria after one month of incubation, whilst washing with water exhibits virtually no microbiological effect, with a bacterial content comparable to the control. The use of antibiotics for sterilisation ranks intermediate: the lag-phase was twice as long in the antibiotics treatment compared with the controls. X-ray diffraction, optical and electron microscopy, M÷ssbauer spectroscopy, and mineral magnetism indicate no significant change in the bulk mineralogical composition. However, X-ray photoelectron spectroscopy analyses show that with some of the treatments, sulfides are partially oxidised, as indicated by the formation of sulfate and partially û oxidised sulfur species at the tailings surfaces. Aerated batch weathering experiments performed on sterilised tailings samples and untreated controls indicated that while the initial rates of element (S, Fe, Cu, Zn, Mg, Na, K, Ca) release may differ between the samples, over the course of ~100 days of experiment at pH 2 and room temperature, the rates declined toward a similar value for all samples. To conclude, there does not appear to be one perfect method for tailings sterilisation. Autoclaving and heating damage the mineral grain structure and oxidise the sulfide surfaces. Ethanol, antibiotics and rinsing greatly alter the pore water chemistry through the washing procedure. In addition, ethanol and denatured antibiotics might serve as a substrate and also, in the case of antibiotics, adhere to mineral surfaces thus obstructing chemical reactions. Irradiation seems to be the preferable method on an overall basis, although the formation of surface Fe3+ was suggested by M÷ssbauer spectroscopy.

Jan 1, 2003

By W J. Bruckard, M J. Vaisey

Ashton Mining Ltd (Ashton) and Lynas Corporation Ltd (Lynas) have established a joint venture partnership to develop and process rare earth oxides (REOÆs) from the Mt Weld deposit in Western Australia. The deposit is located in a deeply weathered volcanic carbonatite structure that contains approximately two million tonnes of rare earth oxides at an average grade of 20 per cent REO. As part of the 1999/2000 feasibility study currently being undertaken by Ashton and Lynas, an extensive laboratory beneficiation test program was undertaken by CSIRO Minerals on diamond drill core samples from the Mt Weld orebody. The aim was to develop a flowsheet, based primarily on flotation that could be confirmed at pilot plant scale. The target concentrate grade was 52 per cent REO with a REO recovery of at least 35 per cent. Two main ore types, nominated as CZ (limonitic siltstone) and LI (nodular limonitic ironstone) were identified for separate laboratory evaluation. The lower grade LI-type ore overlies the higher grade and more extensive CZ-type ore. The majority of the work was conducted on the CZ ore; only limited testing of the LI ore was undertaken. The latter contains a clay component that will present difficulties in processing due to its poor filtering and settling characteristics. Two processing options for treatment of CZ ore were presented for pilot plant consideration. One (Option 1) includes gravity concentration prior to flotation while the other (Option 2) includes finer grinding and four stages of open circuit cleaning. The benefits of each scheme are discussed in detail. Neither has been fully optimised and the definitive flowsheet is most likely to be a hybrid of the two schemes, incorporating the best features of each. Typical metallurgical results from each scheme were final concentrate grades of 49 per cent REO, 10-16 per cent Fe2O3 and 3.2-4.8 per cent CaO. REO recoveries were above 35 per cent in both cases. Features of the processes developed by CSIRO were the inclusion of a gravity concentration stage prior to flotation, a modified flotation reagent scheme, a change in the method of feed preparation, and incorporation of magnetic separation to upgrade final flotation concentrates. Metallurgical results obtained from flotation tests on LI ore were much poorer than those obtained for CZ ore. The best rougher/scavenger result, with the limited amount of testing so far completed, was an REO grade of 32 per cent with a recovery of 28 per cent. Further work is needed to develop a viable processing route for this ore type.

Jan 1, 2000

A generalised mathematical model for hydrocyclone classifiers was developed by the author (Nageswararao, 1978) using dimensionless groups which include phenomenological characteristics as independent variables. This model is incorporated in JKSimMet, the steady state mineral processing simulator developed by JKTech.Recently, when this model was rewritten (Lynch and Morrell, 1992), in terms of variables other than those used by the author, a few errors have crept in. For example, while the exponent of (Du/Dc) in the equation for d50e should be negative (-0.47), it was recorded as positive (0.47). Also, the exponent of (DoIDe) in the equation for pressure drop should be 0.67 and not 0.60. In the same equation, the exponent of Dc would turn out to be -0.10 and not 0.15. These are clearly attributable to typographic and rounding off errors, while transforming the original equations.More recently, Cilliers (pers comm) has done a comprehensive evaluation of the major semi-empirical models for hydrocyclones.He observed that the major difference between the cyclone model developed by the author and other models lies in the method of quantifying the effect of spigot diameter on d50e. He noted that while all other models predict an increase in d50e with a decrease in the spigot diameter, the model as cited by Lynch and Morrell (1992) predicts just the opposite. However, he conjectured correctly that the discrepancy could be due to a typographic error. As the model is still unpublished, it is felt that the original model equations should be recorded with the correct exponents, so that errors in predictions other than those due to the limitations of the model itself could be avoided. They are given hereunder.

Jan 1, 1995

By C Hertle

GHD-Black & Veatch (GHD-BV) have completed design and specification of the ash thickening plant at Tarong Power Station, including operation of a pilot plant. Construction of the plant is in progress and commissioning is planned for early-2004. The objective of the new plant is to convert the low concentration (lean phase) ash slurry currently generated by the power station into concentrated slurry which will then be pumped to the existing ash dam. Water recovered from the lean slurry will be returned to the power station for reuse. The drivers behind this project are to extend the life of the ash dam and to reduce water pumping costs. A maximum flow of 1000 litres per second is expected in the thickening plant. The process involves a screening phase, which removes large material that could cause blockages or equipment damage. A 50 metre diameter thickener then concentrates the screened lean ash slurry to 55 - 60 per cent w/w solids. In addition, the thickener plant will allow the harvesting of floating cenospheres (hollow, spherical ash particles) from the lean slurry. Cenospheres are currently collected from the surface of the ash dam and drained on a pad adjacent to the dam. The new system will use a surface skimmer to remove the cenospheres from the thickener and transfer them to settling ponds for further classification. The settling ponds simulate the detention on the existing ash dam, and allow entrained fine ash and slow settling cenospheres time to settle. As settling occurs in ponds, the slow settling cenospheres can be completely recovered whereas when they settle in the dam, the opportunity for recovery is lost. Cenospheres are a valuable by-product produced during the combustion process, and recycling of this material reduces the waste generated by the power station. Water recovered from the thickener drains to a three megalitre reservoir. Water is drawn from the reservoir for thickener plant service water and various other uses in the power station. The bulk of the water is used to sluice ash from the power station to the thickening plant. In the current configuration, surface water from the ash dam is reused but must be pumped several kilometres back up to the power station. The dam also holds an inventory of several thousand megalitres of water and has significant evaporative losses. Therefore the current raw water make up demand is substantial. In addition, some areas of the power station traditionally using raw water will be modified as part of this project to allow the use of recovered water, further reducing the raw water demand. The design incorporates many features of sustainable water management. By more effectively recovering water from the lean ash slurry, the amount of raw water make up required by the system will be significantly reduced. This method of water recovery provides a more sustainable and energy efficient ash-transport mechanism.

Jan 1, 2003

In 1989 Henry Fairlie wrote a cover story for The New York Republic, 'Fear of Living'. He noted, `The first Apollo space craft caught fire during a test on the launch pad. Three astronauts were killed, the nation was shocked and horrified, all the more because the screams and scrambles of the astronauts could be clearly heard'. After a brief delay in manned flights, the Apollo program resumed with strong public support; within 18 months, Apollo 11 landed on the moon. Fairlie contrasts the Apollo tragedy to the 1986 Challenger disaster. `The prevailing mood in America so panicked NASA that it took almost three years to send up another shuttle', he observed. `In 19 years between these tragedies, the idea that our individual lives and the nation's life can and should be risk-free has grown to be an obsession threatening to create an unbuoyant and uninventive society.' Taking risks is a normal part of our daily routine. The act of living involves minute-by-minute decision-making focused on survival through the practical management of risks. The act of breathing exposes each individual to the risk of infection while the act of crossing the road could almost be considered suicidal. We deal with these constant threats by observing simple rules of hygiene, safety or what may be labelled as common sense. The rules of community, designed to minimise risk in society, can at times lose focus and result in the imposition of schemes that have a far greater cost than the issues from which they protect. Effective management of risk, whether in the community or a business is about awareness and balance and the elimination of unacceptable risk. Risk cannot be eliminated from our lives or our working environment. However it can be managed if it is properly understood, monitored and controlled. The purpose of my presentation today is not to provide a comprehensive technical risk inventory but to capture the essence of risk and the application of management strategies designed to deal with it in a positive fashion. The basis of our differential financial reward system is risk. The key to successful management is to deal with the downside risks in such a fashion that the benefits of enterprise are not eliminated. The key question any investor must consider is `can the major risks assQciated with a venture be managed or eliminated while retaining a greater proportion of upside potential'. The answer to this question is the ultimate value an investor would assign to any project. In reviewing the relevance of risk to our industry the range of papers to be presented today provide examples of how management deals with specific components of risk. In each case the value of the business has been enhanced by the practical application of balanced risk management. The ultimate success of the industry depends very much on this concept as it also provides a public showcase upon which we are judged. Therefore, from all perspectives the effective management of risk is a cornerstone from which to build a stable and progressive mining industry.

Jan 1, 1994

By Dip L. B

This paper describes the new legislative regime that will apply to the regulation of the minerals industry in New Zealand.The reform of New Zealand's minerals legislation was initiated in January 1988 when the Minister for the Environment, Rt Hon Geoffrey Palmer, announced the Government's intention to review all the major laws governing New Zealand's resources. The Resource Management Bill is scheduled for introduction to the House in December 1989 and its date of enactment is scheduled for June 1990.

Jan 1, 1990

By J Johansson, J Lööw

There are many reports about how the new technology will affect our work, sometimes they are utopian but often dystopian. Most of the visions describe the industrial work, while the work of the managers does not seem to be affected. In this article, the authors will discuss how the new technology within the concept of Mining 4.0 changes the conditions for leadership and the work of managers in a modern mining industry.

Sep 1, 2024

The procedures for an audit and review process upon which continuous improvement programs may be based are described. The case for regular audits of mining operations to establish performance trends is advanced. Analysis of performance data using the parameters of the capacity equation used in conjunction with learning curves is described. The extrapolation of learning curves in performance target setting, operating and capital cost budgeting is advocated.

Jan 1, 1992

The cost of constantly extending a decline tunnel that plays a part in the actual extractive process is a revenue cost. The characteristics of such a decline tunnel are that it is dug in a series of relatively small excavations. It follows the ore body and is dug as close to the ore body as practicable. In addition, the decline allows for the extraction of ore in the immediate vicinity, with the ore being extracted in a relatively short period of time.

Jan 1, 1990

By J Rapkoch, M Cerna

As long as the tendency of Chilean copper ores continues to feature high levels of impurities, the smelters will tend to produce high-impurity mattes. The most notable impurities include As, Sb, Pb and Zn. Producing high-quality copper with such materials is a major challenge to metallurgical engineers and operators. More investigations into process optimisations and/or alternatives are needed, using both theoretical knowledge and operational skill. Converting of matte in Chile depends on the matte grade using established technologies. Mattes up to 66 per cent Cu, such as those from Outokumpu Flash furnaces, are converted in two stages, while typical Teniente Converter mattes, ranging from 70 - 74 per cent Cu are converted in one blow, directly to copper. In this paper thermodynamic data are used to evaluate possible variations in the use of traditional technologies applied to smelt copper concentrates with high impurity levels. The results of this analysis help to predict the impurity distributions between matte-slag-gas during the slag blow, and between copper-slag-gas during the copper blow. For converting high-impurity white metal, the effectiveness of volatilisation in the slag blow is analysed. In the copper blow, the type and the amount of flux (SiO2, CaO and others) are altered with the aim of optimising impurity distribution to the slag and gas.

Jan 1, 2005

By D Moss, P Ganza

There are continuing developments in underground narrow vein mining, from innovative mining methods using low-profile equipment to adaptations of current mining methods using equipment such as road-headers. The development of new mining methods and mining equipment has one purpose in mind û to extract narrow reef orebodies keeping dilution to a minimum, whilst maximising mining recovery. Achieving this will increase the head grade of the ore mined and reduce the tonnes delivered to the mill. Narrow vein mining in Australia has been limited to traditional hand held or mechanised drill and blast methods using existing æoff the shelfÆ equipment. Numerous trials have been undertaken using rock cutting technology and lower profile equipment, but these mining trials have not resulted in the full implementation of any new mining method or the adoption of low profile equipment in narrow vein mines as an accepted mining methodology. Mine operators in Canada and South Africa have teamed up with a number of equipment manufacturers and have taken steps to further mechanise and automate the mining of narrow vein orebodies, in particular to increase safety and productivity. The challenge to Australian narrow vein mining projects is to capitalise on work undertaken by overseas mining companies and equipment suppliers and to investigate the adaptation of low profile coal mining machinery to specialised metalliferous mining. With the inevitable fall in metal prices, it is necessary for Australian mine owners and mining contractors to apply these specialised methods and equipment to make narrow vein mining profitable.

Jan 1, 2005

By Kepplinger W

The COREX process is a technology for production of liquid hot metal on the basis of coal (without the use of a coking plant) developing by VOEST- ALPINE AG, Austria and its subsidiary company Korf Engineering GmbH, Federal Republic of Germany. CORED is a registered trademark of VOEST-ALPINE AG and Korf Engineering GmbH. The COREXW process is based on the idea of separating the process steps realized in the blast furnace (gene- ration of reduction gas, reduction of iron oxide and melting of the reduced iron) and including partial coking of the coal.

Jan 1, 1987

By Stewart C. A

The Northparkes copper-gold project is being developed in Central Western New South Wales approximately 30 km NNW of the town of Parkes and approximately 350 km west of Newcastle. The project is a joint venture between North Limited (80 per cent) and the Sumitomo Group (20 per cent). North is the manager. The basis of the project is three copper-gold orebodies, the northern two of which are being mined by conventional open cut methods with the third and largest orebody at the southern end of the lease to be mined by block caving. A fourth mineralised body has been identified in the centre of the lease. While further evaluation of this deposit is required it would appear to be amenable to block caving. Oxide caps of gold ore and copper-gold ore over-lie the two northern orebodies. Development commenced with the construction of a carbon-in-pulp (CIP) plant to treat the oxide gold ore. Construction of a flotation plant to treat oxide copper-gold ore and sulphide copper-gold ore is underway. When full-scale operation is achieved late in 1996 the plant will treat 5.0 million tonnes of ore per year of which 1.1 million tonnes will be open cut ore and 3.9 million tonnes will be block cave ore. In terms of annual ore tonnage the underground mine will be the largest metalliferous mine in New South Wales and the second largest in Australia.

Jan 1, 1995

By P Andersson, P Marklund

Evaluation of different techniques for bottom fill stabilisation showed that frozen fill was the most economical method. In order to test the method a full-scale field test was performed in the Rehnstr÷m mine. The test was instrumented with temperature gauges and extensometers. Before the field test, frozen fill was tested at the laboratory. The mechanical properties of the frozen fill were determined by uniaxial compression and creep tests. A deformation model for the frozen fill was set up. Calculation procedure for design of spacing between the freezing tubes, time for freezing and calculation of the necessary capacity of the refrigeration plant was developed. These procedures were calibrated against the field test. The results of these investigations allow the following conclusions: From a mechanical point of view, frozen fill has excellent properties as a structural member and it also has excellent properties to support itself and the fill above. Methods for the thermal and mechanical design of freeze stabilisation have been developed and found adequate. The need to place the freezing tubes several years in advance of the future sill pillar mining, requires careful long-term planning and accurate documentation.

Jan 1, 1998

By R LEATHAM

Long hole drilling underground has come a long way since 'down the hole' surface drills were first taken underground. The underground miners have progressively developed the use of long hole stope drilling from the 'quarry blast' to a precise and selective removal of ore while leaving the remaining structure as undamaged as possible. To reach this position has involved the development of equipment and explosives to give the desired results. This paper reviews some aspects of long hole stope production drilling.

Jan 1, 1992