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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

By Jake Hutchison, Wade Hutchison

The opposition to the project has risen as a result of some political pressures and from public perceptions about the project’s necessity and its impact on the neighborhood. As a result of this controversy, the Underground Conservation Hall was quickly termed “Bredesen’s Bunker” by the Media. Close exposures for blasting, required by the Conservation Hall construction project, have been regulated by specifications that regulate seismic monitoring, pre-blast and post-blast inspections. Planned blasting for the project included blasting to a depth of 30 feet (9.14 meters) within 35 feet (10.67 meters) of the front of the newly renovated Tennessee Executive Residence. Excavation for the project found more competent rock at higher elevations than identified in test drilling which required blasting within 2 feet (0.61 meters) of the side of the Residence.

Jan 1, 2009

By Tetsuo Yamazaki

Metal market prices rose drastically in 2006, and most broke historical records as shown in Figs. 1-4. This increase has been basically driven by economic growth in Asian countries, especially China. The growth trend is expected to continue for several years. Then, India will follow the same growth trend. Their metal demands keep the price levels high for 20 years or more. One more additional important factor on the metal market prices is hedge funds come into the market. Japan imports all metals for domestic use from overseas. The amounts imported were 1.27 million tons in copper, 0.32 million tons in lead, 0.59 million tons in zinc, 0.20 million tons in nickel, and 1.18 million tons in manganese, respectively in 2006 (Source: http://www.jogmec.go.jp/j_resourse/index.html#03). Though mainly we import the concentrates and our domestic customer smelters take the part of metallurgical leaching, the payment necessary for purchasing the concentrates is estimated about US$ 10 billions in 2006. The payments in 2005 and in 2003 were about a half and a quarter of the 2006, respectively. Japan must have effective counter measures to reduce the future payments.

Sep 24, 2006

By Finlayson E, Hilyard D

1:100 000 geological mapping of Bougainville Island has resulted in refinement of stratigraphic subdivisions and relationships. We subdivide the sequence into basement Atamo Volcanics (Late Eocene-Early Oligocene), consisting of spilitised pillow basalts, which are overlain unconformably by Late Oligocene-Early Miocene Keriaka Limestone. The latter is unconformably overlain by fine-medium grained volcaniclastics and minor lavas of the Middle-Late Miocene Toniva Formation which coarsens upward and passes gradationally and conformably into the coarsely volcanolithic latest Miocene-Pliocene Arawa Conglomerate. The Kupei Complex, host to the Panguna.porphyry Cu-Au deposit, consists of medium - K20 microdiorites, granodiorites, and andesites intruding Arawa Conglomerate and Toniva Formation. K/Ar isotopic dates on the Kupei Complex range from 4.8-1.3 Ma, and hence overlap the age of the Arawa Conglomerate. We believe that the Arawa Conglomerate consists of mass flow deposits on a volcani- clastic apron surrounding a volcanic edifice above the intruding Kupei Complex.

Jan 1, 1990

The Australian Centre for Minesite Rehabilitation Research (ACMRR) was established through a mining industry initiative to meet the need of industry, governments and the community for sustainable systems for land affected by exploration, mining and mineral processing activities. The Centre, which is a consortium of the major groups associated with mining rehabilitation research in Australia, has a focus on both strategic research and technology transfer and combines a wide range of multidisciplinary skills covering engineering and the physical and biological sciences. The paper briefly describes the goals, structure, expertise and research and technology transfer activities of the Centre. The major research program areas of waste rock dump and final void stability, acid mine drainage, tailings disposal, and remediation of ecosystem reconstruction are described in the context of national priorities.

Jan 1, 1995

By K. Ramji

"The development curve in the extractive sector has become longer, steeper, and riskier due to increased social, legal, and political risks from various stakeholders. Indigenous peoples are a unique stakeholder because their growing legal rights to lands and resources can often determine a project’s outcome. A project will only be successful if it is able to obtain the legal permits, withstand any judicial reviews, and gain and maintain the social license to operate. Stakeholder identification, management, and engagement are key risk-mitigation tools required to successfully convert risks into opportunities.RÉSUMÉ La courbe de développement du secteur de l’extraction s’est allongée, elle est devenue plus abrupte et plus hasardeuse en raison de l’accroissement des risques sociaux, légaux et politiques venant des divers intervenants. Les peuples autochtones sont des intervenants uniques puisque leurs droits légaux croissants sur les terres et les ressources déterminent souvent ce qu’il adviendra d’un projet. Un projet ne pourra réussir que s’il est capable d’obtenir les permis légaux, passer à travers les analyses judiciaires, puis obtenir et maintenir le permis social d’exploitation. L’identification des intervenants, la direction et l’engagement constituent les outils clés de l’atténuation des risques nécessaires pour bien convertir les risques en possibilités."

Jan 1, 2016

By P A. Grossman, J H. Rubinstein, M Brazil, K G. Sirinanda

To date, the scheduling and access design of an underground mine have only been considered as two separate optimisation problems. First, access to the mine is designed and then the scheduling is completed. One drawback of this approach is that the costs of access construction fail to be reflected in the net present value (NPV) calculation. In this paper, designing the access and scheduling its construction are formulated as a single optimisation problem.The underground mine access construction process can be classified according to the number of faces being developed concurrently. An underground mine with a single decline branching at a junction point into two declines is considered. After construction reaches the junction, the two faces of the decline can be constructed sequentially or concurrently.This paper proposes an efficient algorithm for optimally locating a junction point to maximise the NPV where two faces are being developed concurrently. The NPV is defined by taking the locations of orebodies and their values, decline construction costs, decline development rate and discount rate into account. The variation of the NPV and the optimal locations of the junction point for one and two concurrent development faces for a range of discount rates are discussed and compared. The proposed algorithm is applied in a simulated case study based on hypothetical values for an underground mine.CITATION:Sirinanda, K G, Brazil, M, Grossman, P A, Rubinstein, J H and Thomas, D A, 2014. Strategic underground mine access design to maximise the net present value, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014 , pp 235–242 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014

By D-J Min

Strategies and achievements in the Asian steel industry to construct industrial ecological chain are reviewed largely in the case of Japan, Korea and China. Emphasis is placed on the development of resource circulatory system for the minimisation of various wastes and emissions of green house gases (GHG), toxic gases and polluting particulates. The minimisation includes:Rationalisation of iron and steelmaking processes; Implementation of available relevant measures/technologies; Life cycle assessment in designing steel from semis to assembled products; Reduction, reuse and recycling of materials and energies; and Utilisation of core competence technologies to process domestic and industrial wastes. In view of global nature of the above wastes- and emission-issues, inter-industrial linkage and international cooperation across the borders in the Asian countries have become more important. Inter-industrial linkage definitely serves to cut back the wastes and emissions. Examples of such linkage and factors influencing the sustainability of the linkage are described with expectation for further development of the linkage. Importance of international cooperation cannot be overstressed under the circumstances where steel production in China exceeded 220 Mt and world production exceeded 945 Mt in 2003 and is still increasing. Practical measures are discussed to enhance the linkage and cooperation for effectively promoting the reduction, reuse and recycling, including implications for the nonferrous industry.

Jan 1, 2004

By H. R. Stoger

"In 1994 world trade grew by 9%, the fastest annual increase since 1976. Dry cargo shipping rates are at an all time high.Panamax size bulk carriers are receiving19 000 US dollars per day for trans Atlantic round trip voyages. This is good news for the ship owners but not such good news for the industrial users of ocean shipping.The main emphasis of this paper will be on bulk carriers, the charter market and what industrial companies can do to reduce their costs of ocean transportation which is critical to Canadian exporters. Let us look at the charter market in general.Bulk carriers come in four main sizes:1.The Capesize bulk carriers of 110 000 to160 000 tons that are primarily used to transport iron ore and coal;2.the Panamax bulk carriers of about 70 000tons dwt. This is the largest size (with a beam of 105 ft) that can transit the Panama Canal.3.the Handymax bulk carriers of 40/45 000tons dwt; and4.the Handysize bulk carriers of 20/35 000tons dwt.The handysize vessels are usually craned or geared and carry a variety of bulk cargoes including steel. Ship sizes have increased over the years and the mining industry now uses primarily capesize or Panamax bulk carriers.International chartering is conducted through an international network of shipbrokers. There is usually one broker representing the ship owner and another broker who represents the charterer. The major chartering centers are London and New York but a great deal of chartering activity is conducted in regional markets such as Hongkong, Oslo, Montreal and Hamburg.The Biffex Index or Baltic Freight Index is a good measure of dry bulk freight rates. The Biffex is composed of ten major routes. In May1995, the Biffex was at 2310 points. A year earlier it was at 1354, an increase of about 56%."

Jan 1, 1996

The risk associated with mining induced seismicity is one of the major threats to the safety and sustainability of deep underground mines. This paper describes techniques that allow site practitioners to efficiently control such risks in mines. The proposed approaches rely on ground support to strategically control seismic risk and re-entry time to tactically control this risk. The strategic approach is based on the detailed understanding of past seismicity to as certain the seismic hazard of individual sources throughout the mine. This approach also relies on assessing the potential damage that these sources can induce on nearby excavations using the excavation vulnerability potential (EVP) and rockburst damage potential (RDP) concepts proposed by Heal et al. (2006). It is then possible to investigate how to reduce the risk of experiencing damaging seismicity in mine drives by locally enhancing the ground support system. The tactical approach relies on a proposed methodology to estimate reliable re-entry times or exclusion periods based on the seismic decay following blasting. Some examples of how these techniques have been applied in Australian mines are given.

Jan 1, 2009