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By R. Tinsley

Project-finance risk assessment is mature and approached systematically. Mining industry due diligence remains fragmented with specialists addressing different aspects of the project such as reserves/JORC, environmental impact, commodity market, even financial analysis/ modelling. Each professional has a natural tendency to believe that the risk factors they have examined are the key ones necessary to be reviewed, as if their review will stand in isolation from others in the way a project materialises. By first laying out the project risk categories and risk matrices, this paper examines the due diligence process with a keen eye to the risk assessment and overlap/interaction. Some cross fertilisation of due diligence techniques from other industry sectors is placed into the mining context. Six case studies are then presented with regards to due diligence features in each project's feasibility review or financial information/ offering memorandum. A power case first shows the differences between the due diligence expectations of banks versus bond financings. Then some Australian and Indonesian mining development cases are analysed to see the due diligence learning points. Some of these were project/due diligence failures. The conclusion focuses on the value of a systematic risk assessment for project evaluation, all from the project-finance perspective.

Jan 1, 2007

By Alexandra Amiel

Tarkwa Gold Mine is owned by Gold Fields Ghana, IAMGOLD and the Government of the Republic of Ghana in a 71%, 19% and 10% ratio. The mine is operated by Gold Fields Ghana. This large, low-grade, open pit, gold mining operation is located in Tarkwa, in the Western Region of Ghana, approximately 320 kilometres by road, west of Accra, the capital of Ghana, West Africa. In the Financial year ended June 2007, the operation mined a total of 108 million tonnes of which 22 million tonnes was ore. The mined ore is processed through three gyratory crushers supplying two heap leach pads (North and South) and a carbon-in-leach (CIL) plant. Before the 6 Sigma project commenced, the current fragmentation was resulting in sub-optimal feed size to these crushers. It was decided to use 6 Sigma methodology to improve the fragmentation. A defect was defined as a fragmentation analysis indicating less than 95% passing 750 mm. The objective was to improve fragmentation in order to achieve a constant throughput to the north heap leach crusher of 1500 t/hr, a 5% increase in pit loading efficiency and a 50% decrease in rock breaker hours, equipment damage costs and in-pit sheeting costs respectively. However, this was not to be achieved at the expense of grade control as Tarkwa is exploiting a low grade, high volume deposit and therefore ore dilution must be kept to a minimum. This paper is intended to take the reader through the various 6 Sigma phases of the project (Define ? Measure ? Analyse ? Improve ? Control) which have resulted in a 10% reduction in loading times, of which half has been attributed to improved fragmentation, as well as a substantial increase in blasted stocks. The focus has been on both drilling and blasting parameters as both processes had to be taken into account. These parameters are technical but personnel factors were also identified and dealt with as they arose. In order to measure the impact of any change in the process parameters on the fragmentation size distribution, cameras have been acquired. One has been installed looking into the bowl of the north crusher and the other one was dedicated to field observation, of individual blasts. Both are used for on-going fragmentation analysis. At Tarkwa, mining efficiency is strongly dependent on good fragmentation as well as the presence of un-blasted ?toes? on the pit floors. Crusher throughput depends on an acceptable ore fragment size. Compliance to plan with regards to actual hole depths was temporarily monitored by manual hole dipping, but, this is now being replaced with a fully automated Drill Data Management system developed by Sandvik and Modular Mining. The Six Sigma methodologies, using control charts based on data collected in the field, allowed the mine to improve methods with regards to the control of blasted material. It also enforced the implementation of a quality control programme encompassing the entire Drill and Blast process.

Jan 1, 2008

By R. G. B. Pickering

The South African narrow reef hard rock mining industry has been stuck in a time warp with relatively little change in the mining process in the last century. This paper presents a methodology on how to implement change in narrow reef hard rock mining. It then explores a number of technologies that have been introduced into this mining industry and the impact that they have had on the mining process. The author then presents his view on whether the defined change process has been followed and sets out to identify the most critical aspect of ensuring that change is successfully implemented. Future demand will also be speculated on.

Jan 1, 2007

By A. S. Macfarlane

Western Deep Levels (North) is a deeplevel, longwall gold mine. Severe strata control problems and high rates of elastic closure, resulting in high rates of energy release, are associated with mining at depths of up to 3 500 metres. To assist in controlling these aspects of mine design and safety, a waste backfilling system has been designed and commissioned. The integration of such a system into an existing, producing longwall brings many problems of logistics, organization, planning and control. It is the purpose of this paper to examine these aspects of fill management, and to describe some of the practical problems involved with the integration of this project into the mining environment. Although many of the rock mechanics and soil mechanics aspects of backfilling systems are common there are specific problems involved which apply to longwall systems. Very strict guidelines are required for planning personnel to design their backfilling systems for a particular situation. These aspects are examined, and basic models developed which can be used without the necessity of comprehensive input from rock mechanics. A summary of the financial implications is included, and these are examined with regard to possible future applications and expansion of waste filling.

Jan 1, 1988

By O. Bazhko

Regular analysis of different streams is important for the control of hydrometallurgical processes. Various physical and physical-chemical methods are applied for this purpose. Many modern methods require costly equipment and are subject to interferences. Therefore, redoxtitration methods remain of interest. The use of different types of oxidizing and reducing agents as well as redox indicators enables many cations and anions to be rapidly and accurately analysed. Sometimes redox titrations require the prior preparation and addition of masking agents. Selective, sensitive and low-cost methods of redoxtitration of copper and SO2 in plant conditions are described.

Jan 1, 2009

By B. X. Huang

Hydraulic fracturing technology is presented as a solution to improve permeability and thus solve the extraction problem of coal seam gas in low-permeability gas-bearing coal seams. Given an existing group of original cracks, the propagation of main hydraulic cracks and hydraulic wing cracks was simulated using realistic failure process analysis software. The process represents the structural transformation of hydraulic fracturing and permeability improvements caused by it. In addition, a field test for improving the permeability of gassy coal seams by hydraulic fracturing was also conducted. The propagation of the main cracks and wing cracks by hydraulic fracturing forms a network of original joint cracks, hydraulic wing cracks, and main hydraulic cracks, which improve the permeability of the coal seam. High-pressure water in the drill hole and in the main hydraulic cracks permeates the two flanks of the hole, forming the permeating water pressure. With an increase in drill water pressure and an extension of the main hydraulic cracks, the permeating water pressure on both sides of the main hydraulic cracks in the coal mass also increases. Hydraulic cracks tend to form connections through rock bridges. The extension of hydraulic wing cracks through connections in the rock bridges between the cracks transforms the rock mass to a fractured structure and improves its permeability. Hydraulic fracturing technology for improving permeability in underground conditions can increase the amount of gas drainage by a factor of 15. A stress relief area develops at a radial distance of 10-2.0 m from the hydraulic fracturing drill hole, while an area of rising stresses, called the pressurized area, develops a further 15 m away from the pressurized hole. Practice has proved the existence of the stress transfer phenomenon and the high stress area after fracturing. This kind of hydraulic fracturing technology is more effective in holes drilled from underground than in surface drill holes, with respect to costs and controllability, and is therefore the major trend in gas drainage development in coal mines.

Jan 1, 2012

"Sampling error and bias, especially the Increment Preparation Error (IPE), are introduced when the tool allocated to do the job fails to extract a representative sample. This is the case with chip sampling; the tool can only extract haphazard shapes of loose or fractured material and not always from within the demarcated sample area. Increment Extraction Error (IEE) and Increment Delimitation Error (IDE) could be severe, but are found to be relatively unbiased. The uncontrolled action of the sampler in discarding excess sample material after sample collection has a significant impact on the error and bias introduced with each and every extraction. A new type of bias, referred to as the ‘waste discard bias’, arises when samplers select what portion of the excess sample material to discard at the sample site. Material visually identified as waste is discarded in preference to mineralized broken ore if there is an excess of sample material. This results in a considerable error in the analytical results. The bias is proportional to the reef-waste ratio in the demarcated sample. IntroductionTwo types of ‘sampling’ are distinguished, namely sampling of particulate materials (broken ores) and sampling of solid, unbroken in situ mineralized reef. This study considers only chip- or face-sampling of in situ, goldbearing, carbon-rich conglomerates typical of the Upper Witwatersrand Supergroup and examines where components of sampling error and bias, clearly specified in the Theory of Sampling, may arise during the practice of ‘face sampling’. Many millions of face samples have been extracted from Witwatersrand-type mines using a hammer and chisel, and detailed descriptions (standard operating procedures) of how the samples should be taken have been developed by many mining companies. There is, however, no taxonomy or nomenclature for managing or reporting the different types of errors associated with chip sampling. The Theory of Sampling compiled by Pierre Gy in the early 1950s provides, comprehensive nomenclature of sampling errors that is applied to particulate sampling of ore in a lot, a stockpile, or a moving stream on a conveyor belt. The taxonomy and characteristics of sampling errors, grouped according to the sources from which they arise, and identified by Gy (1973, 1979, 1982, 1992, 1995, and 1998) are shown in Figure 1. This classification of errors is used extensively in regard to the sampling of particulate materials in the mining and minerals industry, but not in regard to chip sampling. A relatively small mass (hundreds of grams) of representative particulate material for estimating the average grade of a much larger mass (thousands of tons – the ‘lot’ in the Theory of Sampling) is extracted by the chipping or cutting of a representative rock ‘sample’ from the stope face."

Jan 1, 2016

By L. Cong, C. Liu, N. Zhang, W. Cao, C. Zhou, X. Fan

"The modes of occurrence of arsenic and the effects of low-intensity leaching-flotation on arsenic removal from coal slime from the Tanggongta Plant, Inner Mongolia, China were investigated. The coal slime was examined using hydride generation inductively coupled plasma optical emission spectrometry and X-ray diffraction to obtain the content of elements and the major minerals. The modes of occurrence of arsenic in minerals were determined using selective leaching, float-and-sink analysis, and polarized light microscopy. The results indicate that pyrite is the dominant carrier of arsenic in the coal slime, which predominantly exists in association with clay. Significant proportion of the arsenic is removed by a low-intensity leaching-flotation process, consistent with the data from selective leaching and flotation of gangue. The results show that low intensity leaching-alkali washing-flotation is more efficient than direct flotation and low-intensity leaching-flotation.IntroductionUnderstanding the occurrence of arsenic in coal and its removal is significant in optimizing coal utilization, because arsenic in the environment is viewed as a potentially toxic trace element (Finkelman, Belkin, and Zhang, 1999; Hall, 2002; Smith et al., 1992; Smedley et al., 2003; Zheng et al., 1999). Many studies on the modes of occurrence and concentration trends of arsenic in different coal and washing products have been performed (Diehl, Goldhaber, and Hatch, 2004; Kolker et al., 2000; Quick and Irons, 2002; Wang et al., 2006; Fan et al., 2016). Trace elements are usually preferentially associated with certain minerals and the form that these minerals take will influence the efficiency of removal during cleaning (Quick and Irons, 2002). Arsenic is mainly associated with minerals such as pyrite, carbonate, and silicate (Demir et al., 1998; Diehl, Goldhaber, and Hatch, 2004; Zhou et al., 2014). The existence of organically bound arsenic was also confirmed using X-ray absorption (Kolker et al., 2000). However, inorganic arsenic is the principal source of pollution because of its leachability and high concentration compared with organic arsenic (Fujino et al., 2004; Gao, Lu, and Wang, 2010; Jiang et al., 2008; Kolker et al., 2000)."

Jan 1, 2017

By H. B. Prinsloo

Change management and training initiatives in remote rural settings in Africa are generally difficult to implement successfully due to factors such as varying levels of education, multiple nationalities and languages as well as cultures in one workplace. The challenge has always been the ability to implement change management and training initiatives that will have an impact despite these differences. Essentially this requires that the change and training interventions employed are applicable and should work well with a wide range of individuals sitting in one room ? in practice this can vary from semi-literate workers to engineers with PhDs. In this paper we will share the theory behind behaviour-based change management and training and present a case study that reviews an actual supply chain improvement and sustainability implementation at a Zambian copper mine. The case study explains the results achieved as well as the interventions employed to achieve these results in a multidimensional organizational environment. This paper is relevant to delegates who are faced with implementing changes or training in a similar mining environment. Keywords change management, behaviour-based training, learning style, P2P process.

Oct 1, 2013

By P. Saari

The Talvivaara deposits are located in Eastern Finland, within the Kainuu Schist Belt. These polymetallic sulphide deposits are of relatively low grade, but bioheapleaching enables economically profitable nickel extraction from the ore. Zinc, cobalt, and copper are also produced. Talvivaara?s production process begins with large-scale open-pit mining and four crushing stages, followed by stacking of the ore in bioleaching heaps. The ore is first leached for 13?14 months on the primary leach pad, after which the leached ore is reclaimed, conveyed, and re-stacked on the secondary heap pad. After secondary leaching, the barren ore will remain on the secondary heaps permanently. In the metals recovery process, the metals are precipitated from the pregnant leaching solution. Construction of the process was begun in spring of 2007 and first metal sulphides were produced at the plant in October 2008. The development of the bioheapleaching process was begun in a 17 000t on-site pilot heap operated during 2005?2008 and has continued in the industrial heap. At industrial scale, the development measures have focused on improving the permeability and aeration of the heap. Challenges with crushing and aerations systems at the beginning of industrial-scale leaching delayed the increase in metal recovery, but after the first two operational years the leaching results have improved significantly and the process is performing as targeted.

Jan 1, 2012

By F. A. G. M. Camisani-Calzolari

Approximately 850 groundwater samples were collected over a 29 300 km2 region of the semi-arid Northwestern Cape during the site selection phase of the South African radioactive waste disposal project. The purpose of the geostatistical investigation was primarily to delineate metallogenic occurrences and provinces which might exist below the thin veneer of surficial material and could thus interfere with the suitability of the site, and to quantify the distribution patterns of groundwater parameters in order to establish a relationship to local and regional geology. Up to 34 variables were analysed for each sample. Structural analysis revealed that the study area is statistically uniform. The variables have low correlation coefficients, with the exception of major ions, indicating a general poor degree of interrelationship between the spatial distribution patterns of the different variables. On the other hand, the long semivariogram range of the majority of variables, which reaches 70 km in cases, demonstrates their continuity on a regional scale. Kriging, which was repeated for each parameter, reveals that most variables, particularly trace metals, have distribution trends which are not influenced by local geomorphology or surface lithology. A 50 km wide, 220 km long metallogenic province, defined by kriging, could possibly reflect a broad metallogenic imprint on the basement and could represent a target area for prospecting. Kriging also reveals the possible existence of a wrench faulting system which may well have influenced the Namaqualand coastal graben and the western boundary of the Karoo.

Jan 1, 1987

By S. Özgen

In this study, the possibility of beneficiation of chromite tailings in the Uckopru/Fethiye-Turkey region by a combination of hydrocyclone and multigravity separator (MGS) was investigated. The two significant operational parameters of hydrocyclone, which were diameter of the apex and diameter of the vortex, and the three significant operational parameters of the MGS, which were drum speed, tilt angle, and wash water, were varied and the results were evaluated with the central composite rotatable design. In order to produce a chromite concentrate by hydrocyclone and MGS, mathematical model equations were derived by computer simulation programming, applying the least-squares method using Minitab 15. Second-order response functions were produced for the grade and recovery of chromite concentrates.

Jan 1, 2012

By C. Montoya

This paper shows, through a case study, the impact of multivariate grade modelling upon mine design and mine planning. A deposit explored by drill holes is considered, in which the grades of five elements (copper, silver, molybdenum, arsenic, and antimony) are of interest. Forty alternative models of the deposit are constructed by fitting the joint correlation structure of the grade variables and using conditional cosimulation. In addition, a reference model, obtained by averaging the alternative models, is also considered. The study shows that the resulting mine design (final pit characteristics and production schedules) is sensitive to the grade model under consideration, and that the design based on the reference model may not be optimal when compared to the alternative models based on cosimulation. However, when assuming a given long-term plan and extraction sequence, the grades and net present value (NPV) calculated on the reference model are unbiased with respect to those calculated on the alternative models with the same extraction sequence. The latter allow assessing the possible dispersion of the actual grades and NPV around their expected values, and are useful for the planner in order to determine the probability of meeting given production targets and of exceeding or falling short of given threshold grades. Additionally, unlike cosimulation, the separate simulation of each grade variable leads to unrealistic resource models and to biased results in mine design and mine planning. This approach should therefore be avoided, unless the grade variables are spatially uncorrelated.

Jan 1, 2012

By FJ Fourie

Lack of success in attempts to develop viable large-scale continuous mining techniques (previously reported by MP o?Hare in 2004) led the team at Kopanang to explore alternative solutions to their ongoing need for improved profitability. By calling into question the basic assumptions around the stoping of narrow tabular deposits of gold, fragmentation and more particularly, the range of sizes of blasted rocks eventually became the focus of serious study. This background is briefly covered before the sequence of the investigations is described. So far, some of the ?rules of thumb? derived over the years have been confirmed, albeit for totally different reasons than those from which they arose; some persistent theories on gold loss have been debunked, and some new ones have been developed. Blast optimisation (the means by which desired fragmentation is achieved) has been based on tailoring energy to rock characteristics in an innovative packaging design for explosive charges. Other beneficial consequences arising from the work include increased production volume and gold output, a decrease in milling consumables, and the Mine Call Factor is being maintained at a level previously thought to be unachievable. This is very much a ?work in progress?, and it is empirical in its approach. The authors are the first to recognise that they have yet to determine in absolute measures why some of the innovations have had the effect that has been observed. Also that there other factors which may contribute to the result, but which have not yet been examined. Nevertheless, publication of the work completed so far is felt to be justified; firstly on the basis of the achievements themselves, and secondly for the benefit of others in the industry for whom similar problems exist. Statistical reports of the effects on the business are included at the end of the report. Detailed laboratory test results have been separated into an appendix, leaving salient graph and tabulated data in the main text. For ease of reading, units of measurement for particle sizes below 1mm are described in microns, but millimetres have been retained for those at that size or greater.

Jan 1, 2007

By A. Karadogan

Decision making can be defined as the selection process of the best routes from the alternatives in order to achieve a goal, and mostly involves uncertainty. Additionally, mostly qualitative variables (weak rock, massive ore deposit, etc.) are in question. Mine planning engineers often use their intuition and experience indecision making. As fuzzy set theory has been used since 1970, these uncertainties are easily evaluated in the decision-making process. Real world study is decision making under vague constraints of different importance, involving uncertain data (qualitative variables), where compromises between antagonistic criteria are allowed. This paper presents a new approach in the selection of an underground mining method based on fuzzy set theory for the Ciftalan Lignite Site located close to Istanbul in Turkey. The physical parameters such as geology and the geotechnical properties of ore, hanging and foot wall, economic effects, environmental effects, are established with field and laboratory tests together with the determination of other qualitative variables. Meanwhile, some qualitative variables dealing with the matter was described according to the view of a number of experts. Then fuzzy set theory is applied to these parameters, considering the available underground methods in order to choose the proper method. At the end of the evaluations, the room and pillar method with filling was determined as the most suitable method for the test site. Keywords: Decision making, fuzzy set theory, underground, mining, method selection

Jan 1, 2008

By J. H. Zietsman, W. J. Leipoldt

"To be able to responsibly develop a multiphysics model of the steel belt sintering (SBS) process used to sinter chromite fines, it is important to have a comprehensive understanding of the process. This understanding was gained through a site visit, observation of the process in operation, and interaction with the operators. Material characterization will also reveal much about the process that is not yet fully understood. A well-defined and representative mass and energy balance will also give valuable insight into the process. The plan for the multiphysics model aims to combine a computational fluid dynamics (CFD) model with a discrete element method (DEM) model.To obtain a more accurate mass and energy balance representation of the SBS process, it was decided to develop a dynamic distributed parameter model of the mass and energy balance. This model will be used to gain better understanding of the SBS process so that a more complicated multiphysics model can be developed later. The reason for this is because the SBS process is very dynamic, with a large temperature distribution throughout the length of the process. In its current state, the mass and energy balance model is capable of handling solid and gas material packages and exchanging heat between these packages where they are mixed, and is able to model the heating of the gas by burning CO gas. The next step in the development of the model will involve enabling it to handle evaporatoin of liquid water, burning of solid carbon in the pellets, reduction of iron oxide in the pellets with the CO gas formed from carbon combustion, and then oxidation of the reduced iron in the oxygen-rich cooling zones."

Jan 1, 2014

By R. H. English, N. C. Joughin

The results of trials with three stope-face cleaning systems are described. Two of these systems were based on armoured chain conveyors, and the third on a reciprocating-flight conveyor. The operational elements of each system are discussed with reference to their effectiveness, and many problems are highlighted. It is concluded that the reciprocating-flight conveyor is superior, and has the potential for being developed into a system yielding a labour productivity of more than 30 m2 per worker per month and a face advance of 15 m per month working one shift a day.

Jan 1, 1979

By C. Kelley

For years urethane screen surfaces have been used in a wide range of wet screening applications where openings as fine as 75 microns and coarser have been used. In dry screening operations these same urethane screen surfaces have been relegated to only the coarser separation ranging from 1.0 mm and larger. The purpose of this paper is to expose the reader to new developments in both screen surface and screening equipment technologies, which allow an end user to consider urethane screen surfaces for dry screening operations where separations as fine as 75 microns are required. These technologies allow an end user to realize the inherent advantages of urethane in wear resistance while also realizing the benefits that a high open area urethane screen surface can bring. These benefits include non-blinding characteristics and feed capacities, which rival that of traditional stainless-steel woven wire mesh screen surfaces. The paper will highlight the features of this patented urethane screen surface technology and the screening machines in conjunction with which they are used. There will also be a presentation of several case studies of commercial installations where these technologies are utilized. These case studies are from the mineral sands industry; therefore relevance to the conference is direct and not inferred. Included in the paper will also be constraints, which must be taken into account when considering urethane screen surfaces such as temperature and chemical attack. This paper will expose potential end users to a possibility of using screens to achieve extremely accurate size separations in applications where screens were previously not considered. The paper will explain and demonstrate that prior concerns of screen surface blinding, high screen surface consumption rates and large screen surface area requirements can be eliminated by proper utilization of high open area urethane screen surfaces.

Jan 1, 2007

By F. Smit

Mining and plant practices can benefit from preconcentration of UG2 platinum ores in a dense medium separation (DMS) plant. The main benefit of DMS is the selective discard of waste from the feed stream, thus improving project economics while reducing the power and water requirements for processing. On the mining side, with the correct combination of variables, implementing DMS as a pre-concentration step can reduce cut-off grades and, as a result, increase ore reserves. In addition, the use of DMS technology gives the mine team the opportunity to consider alternative mining methods for an operation. The challenges of balancing the mining tonnage, methods, and resulting grades with the process plant size, recoveries, and DMS discard volumes have resulted in the development of a model to optimize value on new projects or existing operations. This paper will focus on these benefits from a mining and plant perspective, quantifying the water and power savings, and look at the economic benefits of preconcentration and the effect of metal prices, plant feed grade, and DMS efficiency in different mining environments.

Jan 1, 2013

By J. E. Chilton

No regular monitoring of methane is required in areas of gassy coal mines outby the mining face. Methane ignitions that have occurred in mine outby areas indicate the need to provide better protection to workers. Handheld methane monitors are now used by some miners to make periodic measurements of methane at the working face. The IYONI II gas detector which is incorporated into a miner’s cap lamp and worn on a miner’s helmet can continuously provide an alarm signal whenever methane levels exceed a set level. Tests were conducted to evaluate the performance characteristics of this methane detector by measuring response times with methane gas supplied through a calibration fixture or adaptor. Other response time tests were performed with the detector in an environmental test box. Performance was also evaluated in a full scale test gallery where face methane emission and underground ventilation were simulated. Procedures for calibration by response time measurement of the IYONI II detector have been developed. In limited testing, the IYONI II detector was found to reliably detect the presence of 1 percent by volume methane.

Jan 1, 2003