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By J. C. Reid

Pre-cambrian scheelite deposits in Northeastern Brazil are widespread in a high grade metamorphic terrain. Previously these deposits had been interpreted as contact-metasomatic. In this paper, a volcanigenic model is invoked based on the volcanic setting (proximal to distal) and the absence of associated felsic intrusives and spatially associated metasomatic skarns. The tungsten was introduced into sediments by volcanic- exhalative processes and subsequently remobilized and further concentrated by heat and metamorphis fluids associated with high-grade metamorphism and migmitization. An alternative syngenetic - diagenetic model is discussed which requires the transport of tungsten by heteropoly acids and deposition of the tungsten as a function of Eh and Ph conditions and different clastic depositional environments. While such stratabound tungsten deposits are considered rare in North America, the hypotheses developed in this paper may open new areas for exploration.

Jan 1, 1983

By Russell Barr

Strategic alignment throughout a mining organization is critical to effective strategic execution and good business performance. The alignment of strategic goals and objectives in the different operations and functions in a large global operation is a challenge facing executive management in light of legacy organizational structure and processes. An additional confounding factor in strategic alignment of acquisition and new project expansion is that mining projects and operations are frequently multi-cultural in terms of country origin as well as organizational culture. This brings together many cultures to accomplish the project or complete an acquisition (Financial Times, 2006). The mining industry presents numerous challenges to executives and mine management by the nature of the operation and organizational processes used in running it. For example, there seems to be an inherent conflict between the individual goals of the components that constitute a mineral processing operation (the mine, the mill, the smelter and the refinery), and lowest cost production of the final product. Managers of these component operations have specific objectives passed down from the corporate executives. Those site managers tend to be compensated based on throughput and perform to this main metric. This tendency to maximize throughput for an individual operation can contradict the general process flow of a best-fit solution to producing the final product at the lowest cost. In an effort to become more aligned, firms are increasingly using balanced scorecard derivatives at great cost and effort (whether internally or externally sourced) in an attempt to help with strategic alignment. Balanced score-cards have been effective in providing a good strategic scorecard to companies with some measure of strategic alignment. Many firms make this effort of using balanced scorecards. However, most firms are not strategically aligned or, at best, are sub-optimized, in terms of strategic alignment (Kaplan and Norton, 2006). The tendency in mining operations is to focus on operating individual components as optimally as possible and stretching existing assets to the best possible production rates. ?Making tons? is the common operational focus. Numerous factors underpin this focus and can affect the ability of the operation?s ability to align properly with the corporate strategy and strategic goals. Critical factors are legacy organizational structure, culture, processes and performance measurement systems. Changing anyone of these factors to affect better strategic alignment requires significant attention to managing change.

Jan 1, 2008

By Hugh Thompson

In mining today, planning is of paramount importance, even more so when one considers that the business margins are reducing, requiring the evaluation of diverse alternatives for the optimal use of scarce resources. Additionally the capital required to approve some projects demands the best planning possible. Modern planning requires that all of the aspects of the business be represented, and not just the planning of the extraction in an isolated form. In order to carry out integrated strategic planning in the mining business one needs to have implemented a culture within the organisation that allows the business to be understood as a interelated system of processes. These processes must be co-ordinated so that they interact properly between each other and so define an integrated plan that optimises the available resources and maximises the benefit to the company. This defined culture should consider the important variables of each activity within the processes, and its’ relevance to the strategic plan. In this sense, this paper shows an example of computer tools used in order to reach the described objectives.

Aug 25, 2002

By R. M. Kear

Strategic and tactical planning are both required in the mining industry but have completely different objectives and require different environments. If these are not fully understood, then the best value for a mining operation may not be realized. This paper examines the differences in these approaches and how they interface in the mining environment. The objectives, content, skills required and the implied management issues for these two components are examined with the hope that this will assist management and the planning teams in defining their respective roles and expectations. The opinions are those of the author based on his experience on several mining operations and projects.

Jan 1, 2006

By B. J. Kloppers, J. V. Z. Visser, C. J. Horn

"The long-term plan (LTP) in a mineral resource company is defined by the quality of the mineral resource and represents the result of a series of trade-offs to fulfil internal organizational as well as external business and legislative requirements, ensuring ultimate delivery on the defined organizational strategy.The LTP should as a whole align to a coherent and well-defined organizational strategy, working towards a clearly defined objective while still allowing a tactical response to short-term requirements of the organization. The ability to respond tactically to changes in environment, like the unprecedented five-month strike in 2014 on the platinum belt following the 2012 Marikana incident, is a measure of the flexibility of the plan given the agreed strategy.This paper describes the Lonmin process of linking company strategy with long-term planning, tactical planning, and the execution of the plan through an annual planning cycle to maximize organizational flexibility. This flexibility enables mining companies to respond to the many internal and external forces that impact on both strategy formulation and delivery of results that meet shareholder expectations."

Jan 1, 2015

Capital budgeting and investment analysis have, to this point, been beyond the scope of this text. However, a recent conceptual development by John K. Shank and Vijay Govindarajan in the capital budgeting literature is of interest to operations managers because it (1) employs some of the cost management tools outlined earlier in this text and (2) provides a useful framework for using cost management techniques to improve the competitive position of the firm. ft Shank and Govindarajan present a method of analyzing proposed expenditures that is not based on discounted cash flow measures. Their approach employs a combination of three analytical tools: value chain analysis, strategic positioning analysis, and cost driver analysis. In each of these, cost and revenue information is used in ways normally not associated with conventional budgeting. Using this framework, capital projects are selected based on their ability to improve the firm's strategic position. Shank and Govindarajan have termed this approach "strategic cost management."

Jan 1, 1999

By P. van der Veen

The objective of this paper is to analyze the evolution of the strategic drivers of the mining sec-tor over the last half century, which has been guided by a varying and expanding list of motivations. While companies cannot survive for long unless they are making profits, the strategic drivers of the industry have gone far beyond profits since at least the mid-1970s when environmental concerns began to be taken seriously. For the most part, these forces have followed global trends and public opinion, but they have been shaped and magnified by the significant, often dominant role that the mining sector plays in many economies. While the mining sector used to be primarily motivated by the first pillar of sustainable development -i.e. the economics pillar-, in the 1970s the second environmental pillar became an important factor in decision making, and in the 1990s the third social pillar emerged as a major driver.1 The entrance of new strategic drivers has also had considerable impact on technological and organizational developments in the mining industry; however, technological changes, driven by cost reduction considerations, have in turn impacted the strategic drivers of the industry, resulting in the need for further technological and organizational developments.

Jan 1, 2007

By G. L. Smith

The fundamental challenge facing mineral and metal companies is how to create sustainable value while operating within mandated strategic bounds, identified constraints, and variable market and economic conditions. This can be achieved by allowing the fixed physical nature of the mineral asset to drive definition of the optimal technical solution to mining and processing activities, and developing and resourcing a strategically aligned portfolio of production entities that creates flexibility to near- and longer-term business environment shifts, i.e. a production mix that allows variation of output to respond to short term market variation, within a long term context. The practical achievement of this outcome is enabled by the concept of strategic long term planning. The core elements of strategic long term planning in the metals and minerals industry, and the relationship between them, are expanded. The strategic long term planning framework is a logic construct that enables delivery of an optimized, strategically-aligned business plan from the mineral asset portfolio using a set of tools and techniques with a common language, standards, systems and processes to align decisions and actions on a cyclical basis.

Jan 1, 2012

By G. L. Smith

The fundamental challenge facing mineral and metal companies is how to create sustainable value while operating within mandated strategic bounds, identified constraints, and variable market and economic conditions. This can be achieved by allowing the fixed physical nature of the mineral asset to drive definition of the optimal technical solution to mining and processing activities, and developing and resourcing a strategically aligned portfolio of production entities that creates flexibility to near- and longer-term business environment shifts, i.e. a production mix that allows variation of output to respond to short term market variation, within a long term context. The practical achievement of this outcome is enabled by the concept of strategic long term planning. The core elements of strategic long term planning in the metals and minerals industry, and the relationship between them, are expanded. The strategic long term planning framework is a logic construct that enables delivery of an optimized, strategically-aligned business plan from the mineral asset portfolio using a set of tools and techniques with a common language, standards, systems and processes to align decisions and actions on a cyclical basis.

Jan 1, 2012

By G. L. Smith

This paper consolidates the key elements of seven contributions, on strategic long-term planning, to two of the three international conferences on Strategic versus Tactical approaches in Mining held over the period 2005?2008. The holistic concept of strategic long-term planning as developed and implemented at Anglo Platinum is described. Consideration is given to the planning cycle, principles supporting the construction of the long-term plan, and aspects of unique best practice as developed in Anglo Platinum. Further description of Anglo Platinum?s approach to corporate governance, including the processes, methodology, systems, unique tools and techniques that are applied to value and select capital investment options is also given.

Jan 1, 2009

By A. Bascetin

Materials produced in quarries have been used for different intentions such as concrete and cement raw material, asphalt and embankment aggregates, railway ballast. Especially in cement manufacturing, the chemical composition and the uniformity of the raw materials play a strategic role in the economy and quality of the cement process. Therefore, it is necessary to achieve uniformity and desired chemical composition and maintain these at all production stages according to the type of cement produced. To achieve this goal the production planning and pit design play an essential role. This paper briefly outlines the production optimization of cement raw materials in a quarry in Istanbul western part of Turkey. For the purpose it was used the 3D ore body modeling and the geostatistical techniques. The variation of chemical components (%CaO, %Al2O3, %Fe2O3 etc.) and quality control parametres (LSF, SR, AR and etc.) obtained from the quarry were determined. Then the values of unknown chemical components and quality control parameters in the ore body were estimated using Kriging which is one of the geostatistical interpolation methods. The open pit design was also created by specifying wall slopes and taking into consideration of the grade distributions of the benches. The most important revolution in the paper is investigating the effects of the block dimensions in block modelling which is important for reserve estimation. The other important point in the study is using the different range values in variogram analysis for determination optimal reserve estimation. n this study, the effects of two parametres on reserve and waste amount estimation were determined according to CaO% distribution. The study was pointed out that the changing of the two parameters are very important for the optimal mine planning and environmental considerations.

Jan 1, 2010

This paper describes the integration of the mineral resource management philosophy within strategic long term planning at Anglo Platinum Limited. Consideration is given to the philosophy, processes, techniques and supporting systems.

Jan 1, 2007

By P. Schumacher, M. Fein

"INTRODUCTION Newmont’s Twin Creeks operation, part of its Nevada operations, produces gold from two large open pit mines. Mined ore is processed at one of three on-site facilities: a refractory mill with two autoclaves, an oxide mill and heap leaching facilities. Twin Creeks also processes various off-site sourced concentrates and ore including high grade underground ore from the Turquoise Ridge joint venture with Barrick Gold Corporation. This paper discusses Twin Creeks’ strategic mine planning process which is part of an in-depth continuous improvement program called “Full Potential.” The process involves cost analysis, phase design validations, life-of-mine production scheduling optimization, mill blending strategy and stockpile management. Through this Full Potential strategic planning, Twin Creeks is creating significant value by increasing near term free cash flow and life of mine net present value (“NPV”) and achieving cost reductions. TWIN CREEKS OPERATION Twin Creeks is one of the major gold producers in Newmont’s Nevada operations (see Figure 1, 2 and 3). Located approximately 15 miles north of Golconda, Twin Creeks produced approximately 28 % of the Nevada operation’s 2013 gold production of 1.8 million ounces (Newmont 2014). The production included Turquoise Ridge sourced gold ore from the joint venture (75% Barrick Gold Corporation, 25% Newmont).At Twin Creeks, there are two large open pits, named Mega Pit and Vista Pit (see Figure 4, 5 and 6). There are 3 to 5 phases in Mega Pit and 2 to 5 phases in Vista Pit depending on the gold price assumption. There is also an underground exploration project at the bottom of the Vista Pit. Twin Creeks produces gold from a variety of ore types requiring different processing techniques depending on economic and metallurgical characteristics. To ensure the best use of processing assets, engineering and processing groups at Twin Creeks utilize a Mixed Integer Linear Programming (“MILP”) model to guide the flow of mine sequences and material routing to various process facilities (Kawahata, Schumacher and Hufford 2013)."

Jan 1, 2015

By G. L. Smith

This paper introduces and defines the concept of a linkage between long-term planning parameters (?global assumptions?) and possible future world views as conceived in scenario planning. Scenario planning, the tool that is used to arrive at plausible future worldviews, is described in the context of the platinum industry. The interpretation of the scenarios into long-term planning parameters is made, followed by an illustration of how the long-term planning process has been adapted at Anglo Platinum to include the notion of uncertainty.

Jan 1, 2008

By Stephen Hardcastle

Supplying ventilation in underground metal mines can be one of the most energy demanding services required to support production activities. Consequently, as energy, in the form of electricity or combustible fuels can be expensive and their unit cost is expected to increase, there is significant interest in reducing the overall demands of a mine?s ventilation system through such initiatives as controlling ventilation based upon demand and exploring other power alternatives to the current usage of the diesel engine in mobile mine vehicles. However, determining the benefit of any energy saving technology is complex and not universal applicable across the industry, consequently they have not been widely adopted. For these technologies to succeed they must be strategically applied based upon sound business cases. The intent of this paper is to provide information on some of the prospective control strategies and their potential impact on the power consumption related to supplying ventilation.

May 1, 2007

By P Myers, T Elkington, S Wonday

Sierra Rutile LimitedÆs (SRL) heavy mineral sand mining operation in Sierra Leone, West Africa, is embarking on a new phase of its life. After confronting many challenges during the 1990s and 2000s, SRL is embarking on a strategy of growth to recover maximum value from the mine over the rest of its life. Sophisticated linear programming techniques have been used to develop an optimum strategy for extracting SRLÆs many known deposits of economic grade, while considering options for expansion and for a variety of mining and processing methods and combinations. CITATION:Myers, P, Elkington, T and Wonday, S, 2012. Strategic optimisation at Sierra Rutile - A case study in maximising project value, in Proceedings Project Evaluation 2012 , pp 59-66 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

By Christian Heili

In 1991 the Government of the Republic of Zambia passed legislation providing for the privatisation of Zambia Consolidated Copper Mines Limited (ZCCM). The newly formed Mining Companies, established after nearly a decade of difficult and protracted negotiations on such matters as, cash at close; retained percentage interest by ZCCM; equity investment; future investment commitment and tax concessions, were faced with great internal challenges and a harsh external environment. There was a convergence of a number of negative forces that had and will continue to have an impact on the mining environment in Zambia. The most crucial of these being, the competitive pressures of the global economy, fluctuating copper price and the prevailing HIV/AIDS pandemic. In the short period after privatisation, the Industry has seen the collapse of Binani Industries (Luanshya Mine), the withdrawal of Anglo America Corporation from Konkola Copper Mines Plc and the disposal of Chambishi Cobalt and Acid Plants by Anglovaal Mining Ltd. The objective of this paper is to provide a theoretical and practically researched foundation, which may be used to assist Zambian Mining Companies in making informed decisions on the issue of Strategic Outsourcing and the degree to which this may support the successful and sustainable growth of the Zambian Copper Mining Industry. If judiciously implemented, Strategic Outsourcing has the potential to generate a practical business valuation and process to assist Mine Management in the achievement of their business goals and consequently the return on investment to their Shareholders.

Jan 1, 2005

By J. Engelbrecht

South Africa?s re-entry into the fast moving and competitive global economy calls for some careful strategic planning and a good deal of co-operation between suppliers and end-users. The issues that need addressing are generally well known and include: ?South Africa was ranked 45th out of 46 i.r.o. productivity ?SMMEs contribute 1% to exports compared to 40-60% for the ?tigers? ?High unemployment ?Limited skills of the majority of workers ?Slow growth rate of the economy ?The vast majority of suppliers are not world-class ?The vast majority of suppliers are not export or marketing orientated. In order to survive, all parties, i.e. government, labour and business, will have to play their part.

Jan 1, 1999

By J. T. Crawford

A comprehensive strategic planning model has been developed for the phosphate strip mining and chemical operations at White Springs, Florida. The computerized model covers ore body modeling, production simulation and financial analysis. Several innovative features in the model include using NPV techniques in ore body block economics, adapting the floating cone method to a floating template for generating dragline mining units automatically, using interactive graphics for designing mining units, and a dragline move economics algorithm for automatic scheduling of mining unit assignments and moves. Simulation of chemical plant production uses linear programming and concentrate inventory levels control mine operating schedules.

Jan 1, 1997

Kambalda Nickel Mines (KNM) currently have eight operating underground mines, three on care and maintenance and other orebodies at various stages of development. Each operation differs greatly in scale, ore grade, milling characteristics and cost structure. The optimum number of mines operating at any one time and their level of production, within the constraints of mill blending requirements and overall mill capacity, is the key to maximising profit in a climate of fluctuating nickel price. Cost models are developed for each mining operation which relate ore tonnes mined to total cost per pound of nickel produced from that mine. Aggregating the mine cost models provides a composite cost model for the entire operation. The cost models provide the operating levels necessary for each of the mines and hence Kambalda as a whole, to operate at the lowest cost per pound of nickel produced. However, lowest operating cost does not necessarily lead to maximum profit. The level of nickel price above operating cost can dictate maximum profit positions which are contrary to the lowest cost position. In addition, the decision to temporarily shutdown mines or reopen mines in response to nickel price movements comes at a cost. In considering the optimum operating position, the price of production capacity flexibility needs to be taken into account. This paper describes the process used to assess all these factors in arriving at the optimum operating position for Kambalda Nickel Mines for varying nickel prices. The same methodology can be used by corporate management in managing multiple mine sites as well as mine management managing multiple orebodies or stoping blocks for maximum profit.

Jan 1, 1995