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By G B. Smith, D Hillier, T Gibbons, D B. Donato, M D. Adams, S Davies, R S. Schulz

Responsible management of cyanide solutions and tailings on gold processing plants worldwide is an important aspect to these operations and is regulated via guidelines provided by the International Cyanide Management Code, an industry initiative designed to minimise cyanide risk to operators and the environment. Here we demonstrate the unprecedented causal relationships surrounding the saline (>14 000 mg/L total dissolved solids - TDS) and hypersaline (>50 000 mg/L TDS) cyanide solutions in gold plant tailings in the Central Goldfields of Western Australia, resulting in zero wildlife mortalities on three sites over the study period of almost one year. Wildlife interaction and ingestion is significantly lower than that experienced at other gold mine sites, with more rapid degradation of weak-acid dissociable (WAD) cyanide within the tailings storage facility (TSF). A rigorous chemical sampling using a novel æminimal accessÆ robotic sampler device and wildlife observation exercise was carried out at two hypersaline mine sites: Barrick Kanowna Belle (BKB) and Gold Fields St Ives (GSI) and one saline site, Barrick Granny Smith (BGS). The data was compared with available reported chemical sampling and wildlife observation data from a previously operational fresh water site (<2000 mg/L TDS) that had experienced wildlife mortalities, Case Study D (CSD). The comprehensive body of work, along with cyanide degradation test work carried out in the laboratory, was analysed via hypothesis development and testing, causation analysis and dynamic chemical modelling. The non-mortality effect on these sites appears to hold over a further four years of routine wildlife and cyanide monitoring by site personnel. This study has helped these three mine sites achieve and maintain full Compliance Cyanide Code status over a significant period while removing the need for operating the detoxification plants they would otherwise have required.CITATION:Adams, M D, Donato, D B, Schulz, R S, Smith, G B, Gibbons, T, Davies, S and Hillier, D, 2013. Hypersaline-induced reduction in cyanide ecotoxicity at gold operations, thereby obviating detoxification plants, in Proceedings World Gold 2013, pp 489-502 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 26, 2013

By D Kepert

It is the role of the exploration geologist to create wealth through the discovery, delineation and characterisation of economic mineralisation. This requires a critical depth of geological understanding.Unfortunately, the resource industry is well known for its cyclic nature. Many of the current generation of workers have only ever experienced the boom of the ‘super-cycle’ and are only just discovering the negative side to the business. For the case of the geologist and especially the exploration geologist, the magnitude of peaks and troughs are usually amplified and may become destructive to all parties. During the uptime a healthy stream of exploration good news becomes the staple diet of company releases, in particular those of junior companies attempting to bolster the share price. The geological knowledge and experience gained thus forms a significant and integral part of the value and therefore, future of a company. On the downturn it is often viewed that geologists are a luxury, an optional extra and a burden on the bottom line with companies entering a period of memory loss and myopia.Retention of geological knowledge however remains critical as projects, companies and cycles mature. Beyond exploration per se, this knowledge becomes both fundamental in de-risking and commercialising an asset (through development or divestment) and in positioning the company for cyclic or counter-cyclic opportunities.The growth and retention of this knowledge base is difficult to quantify in terms of direct value but becomes one of a successful resource companies greatest assets. At worst, its loss can lead to millions of investors’ funds wasted on missed opportunities, drilling, or poorly designed plant and mine.But the rocks are around for the longer haul and pay little notice to the vagaries of the scurrying of Man.This paper reflects on some of the authors own observations through 25 years of iron ore exploration, in why it is critical to always rigorously question the prevailing geological (mis)understanding and the technical and commercial benefits which that may bring, and looks forward to the future.CITATION:Kepert, D, 2015. Geology – the affirmative case, in Proceedings Iron Ore 2015, pp 285–298 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

Two key elements in the design of a pastefill or high density hackfill system are the preparation of the backfill material and its distribution underground. This paper examines these two areas. Owing to the essentially impervious nature of total mill tailings, preparation of pastefill and high density fill from current tailings involves a physical dewatering process. There are currently three methods available for this process: I. Vacuum or pressure filters. These represent the 'traditional' approach to the preparation of pastefill. 2. Paste production storage mechanism. This is a thickening/storage mechanism developed with the specific objective of producing paste/high density backfills. 3. Fluidization. This system utilises silos fitted with simple dewatering devices and nozzles. Recently developed by CANMET, it provides the simplest and most economical approach. This paper describes and compares the three preparation methods, from a practical and an economic point of view. Once the pastefill/high density fill has been prepared and binder added, the backfill must be distributed underground into the stopes. A fundamental factor in the design of a distribution system is the rheology of the material- No two materials will exhibit the same properties, and a sequence of rheological and related testing is required prior to the completion of the design of the underground distribution system. This paper covers the testwork normally required and discusses the fundamental design parameters of pastefill distribution systems. The final section of this paper summarises the use of pastefill at three mincsin Canada.

Jan 1, 1998

By Magne L, Barria J, Castro O, Menacho J, Gonzalez GD

An extensive experimental campaign was developed in a continuous 6 x 2' (D x L) pilot scale SAG mill. The effect of the feed flow rate, feed solids concentration, ball filling fraction and feed size distribution, over the mill performance was investigated. The residence time distribution (RTD) for the fine material was measured in every test, in order to detect changes in the mixing characteristics of the mill under different operating conditions. Based on phenomenological considerations a state model of the SAG mill was developed, which independently incorporates mechanisms such as: grinding, mass transport and classification in the grate discharge. These can be parametrised using information and optimisation software. This comminution model extends the compensation condition, which is a conventional hypothesis for ball milling, to the semi-autogenous mill grinding. The mathematical analysis of this hypothesis, applied to SAG mills, allow the reduction of the number of parameters in the model, using the relationship Ki = (1-bii)Si, where b and S have the conventional meaning. Therefore, the distribution fracture matrix bij and the specific fracture rate SIE are grouped in just a single diagonal matrix Ki.

Jan 1, 1993

By A Bax, G Wardell-Johnson, W P. Staunton, J McGrath, J J. Eksteen

Since 2001, the AMIRA P420 gold processing technology project series has been studying the recovery of gold using gravity devices, with particular emphasis on the centrifugal units, Knelson and Falcon concentrators. The work has entailed the surveying of operating gravity circuits in Australia, Africa and North and South America.This paper reviews some of the results and lessons of these studies, including common circuit operating and design factors, which limit gravity recovery; pointers towards effective modelling of gravity circuits; and the contribution of gravity to overall gold recovery.CITATION:Wardell-Johnson, G, Bax, A, Staunton, W P, McGrath, J and Eksteen, J J, 2013. A decade of gravity gold recovery, in Proceedings World Gold 2013 , pp 225-232 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 26, 2013

It is proposed to consider a new access, mining and hoisting system for underground deposits, as an alternative to the commonly used decline or vertical shaft access. The proposed system offers fundamental improvements in gathering of exploration data, reduction of capital expenditure and significant savings in mine operating costs. The cost reductions are achieved through:superior orebody definition by Supersucker winzing on ore prior to the commencement of capital development; considerable reduction of capital development in waste; full capitalisation on all benefits of a raisebored excavation; introduction of rubber tyred skip and rubber tyred Mine Rapid Response Vehicle; introduction of simplified ore handling system and reduction of underground mobile diesel fleet; and introduction of minimum maintenance shaft concept. The system is applicable to deposits ranging from shallow, low dip angle, narrow vein, high-grade to bigger, massive type vertical mineralisations accessed from the surface, preferably from the bottom of an open pit; it is also suitable as a down dip extension of an existing underground mine. The system is highly conducive to mine automation and emerging trend aimed to increase the ratio of mined metal/mineral to mined waste. It offers substantial reduction in diesel exhaust gas emissions to the mine atmosphere.

Jan 1, 2000

By A Kitchen

For the past decade, demand for Australian resources has reached unprecedented levels, thanks mainly to the emerging superpowers of China and India. Meeting demand has meant miners and governments alike have ploughed billions into capital expenditure projects for logistics infrastructure such as roads, rail and ports, to support the ever expanding number of mines and mineral volumes. In more recent times, however, the effect of the global economic crisis has led to a decline in demand for Australian minerals. The downturn has seen companies lay off workers in droves, and delay or cancel expansion projects, in an attempt to preserve cash flow. Whilst the current economic cycle has hit the mining sector hard, it is an opportunity for companies to take stock of their existing operations and plan for the future. As mining companies grapple for scarce capital resources, it is inevitable that industry consolidation will ensue. This presents challenges and opportunities for both buyers and sellers alike, looking to expand operations, or sell off assets to raise cash.

Jan 1, 2009

By A Rantala, C Cruickshank, I Muzinda, O Haavisto, J Timperi

The production at First Quantum Minerals’ (FQM) Kevitsa Mine, located in northern Finland, commenced during the second quarter of 2012. Presently, the mine processes approximately five and half million tonnes of ore annually, producing nickel, copper and platinum group metal (PGM) concentrates. In order to support fast production ramp-up and optimise the performance of flotation thereafter, an extensive advanced flotation control solution was implemented by Outotec in collaboration with FQM Kevitsa.In addition to basic process instrumentation and process control, each of the 14 Outotec 300 m3 and another 26 cells, ranging from 20–160 m3, have been equipped with state-of-the-art systems providing froth image analysis and automatic froth speed control. Also, the flotation cell levels are stabilised with advanced feed-forward level control.The online analyser provides key feedback information of the process performance for the advanced process control (APC) system. Based on this information, APC system defines grades and recoveries according to rules defined by Kevitsa process metallurgists. This system executes the control strategies for optimising the production of concentrates.Throughout the implementation and support phases, specific and intensive attention was paid to ensure plant personnel gained full understanding of interacting with the system and how to incorporate their process experience and skills to optimise the APC strategy. This level of expertise is also a valuable asset in understanding the APC system’s contribution to the overall performance of the plant as well as providing the ability and confidence to define key performance indicators used for continuous assessment. The experiences and results from site achieved so far are discussed in this paper.CITATION:Rantala, A, Muzinda, I, Timperi, J, Cruickshank, C and Haavisto, O, 2014. Implementation of advanced flotation control at First Quantum Minerals’ Kevitsa mine, in Proceedings 12th AusIMM Mill Operators’ Conference 2014 , pp 369–378 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 1, 2014

By M Haest

This study demonstrates the application of HyLogging™ technologies for mineralogical characterisation of different iron ore types throughout the Hamersley Province (Western Australia), including a channel iron deposit (Murchison Metals Ltd) and bedded iron deposits in the Brockman and Marra Mamba Iron Formations (BHP Billiton Ltd).Drill core from these deposits was analysed using CSIRO’s hyperspectral drill core logging systems (HyLogging systems), which are commercially available at the AMDEL and AMMTEC laboratories in Perth (Western Australia), through a leasing agreement. These HyLogging systems provide high resolution photographs at 0.1 mm pixel resolution as well as visible and infrared spectroscopic refl ectance data at 1 cm spatial resolution. The minerals identified include haematite, goethite and its subtypes (ie vitreous and ochreous goethite), AlOH-clays (kaolinite, Al-smectite and white mica), carbonates, gibbsite, chlorite, amphibole and hydrated silica as well as water content. The abundance and composition of these minerals was established from the spectral data and was validated against XRF analyses.The full potential of HyLogging systems in the iron ore industry is only starting to be unveiled, but some major benefits have already been demonstrated:• HyLogging systems can delineate different ore zones by mapping the vitreous and ochreous goethites. This has a potentially large impact in mine planning and operations, as hard, vitreous goethite and soft, powdery, ochreous goethite have different processing characteristics that can affect plant throughput if not carefully managed.• HyLogging mineralogy can also be used to support stratigraphic interpretations of the host, for example in subdividing the Dales Gorge 1 - 4 submembers of the Brockman Iron Formation.• HyLogging can have a potentially signifi cant impact on waste rock characterisation, as many of the waste materials can be identifi ed and quantifi ed with hyperspectral data (eg clay-type,• hydration state).• HyLogging can provide accurate three-dimensional (3D) mineralogy to iron ore companies that will empower them to improve future exploration and resource planning.• Application of high resolution photography to further improve ore deposit domaining is also to be considered.

Jul 11, 2011

By K Smith

This paper presents an assessment of the Robertson (2010a) method within the CPTu inversion parameter framework of Been et al. (1987), using CPTu calibration chamber data presented by Jefferies and Been (2015) and in other literature to assess the validity of the method, with particular focus on applicability of the method to TSFs (i.e. its applicability to loose silts and silty sands). The assessment demonstrates that although the method estimates values of k consistent with calibration chamber data, the method estimates values of m that are generally 1.5 to 2 times greater than calibration chamber data. As a result of this, the method generally overestimates Ψ for values of Ψ less than 0, and underestimates Ψ for values of Ψ greater than 0. This may result in both overly conservative assessment of materials as potentially liquefiable and unconservative predictions of material behaviour for loose materials.

Jul 1, 2021

By P Mulvey, M Stuckey

"Inter-aquifer leakage due to fractures caused by coal seam gas extractions or longwall mining is an important issue for both the gas and coal industries. Currently, predicting stress induced macro-porosity associated with hydraulic fracturing, depressurisation via dewatering or collapse of overlying seams to infill a void left by longwall mining, is problematic. If fractures can be located the fracture can be sealed. Locating fractures is difficult. The non-geophysical approaches to locate fractures has been to consider the mixing of different waters, particularly that of more recent shallower groundwater with older deeper groundwater, via differences in radio-isotopes integrated with geochemical models to predict likely mixing of waters. This approach is applicable under appropriately complex settings; however, it is an expensive technique and is based on the assumption that the daughter isotopes are equally non-reactive which may not always be the case.Potentially a cheaper and faster technique is to consider integrating geochemistry (mineral weathering) and hydrogeology. The chemistry of groundwater, controlled by the weathering of primary rock?minerals and?formation of secondary minerals, can not only be differentiated between geological strata but also within strata as different stages in weathering results in differing impacts on water quality (ie different reactants).Field analysis of pH, electrolytic conductivity (EC), oxidation reduction potential (ORP) and dissolved carbon dioxide together with laboratory analysis of dissolved constituents characterise the chemistry of the water. Collection of rock samples at the time of drilling for bore installation can provide the (only) opportunity to assess the media in which the groundwater resides and migrates through. An assessment of aquifer matrix chemical makeup, via bulk sample chemical analysis, X-ray diffraction (XRD) and petrographic analysis can achieve this.The chemistry of groundwater is dependent on the water velocity. Water at deposition and post-diagenesis dissolution of minerals by hydrolysis and oxidation will result in equilibria of the dissolved phase with the solid phase. Post-depositional fractures caused by either tectonic activity or weathering alter the rate of weathering and thereby the geochemistry. Slow water flow in microfractures results in water in equilibrium with the rock minerals. Faster flow in larger fractures results in water being in disequilibria with rock minerals.Fractures can alter groundwater chemistry by two pathways: changing groundwater velocity, which changes the rate of hydrolysis or oxidation mixing water from different geological strata.Both pathways cause subtle changes in the water chemistry.It is however, the dissolved phase chemical data, which can be observed over time at individual locations and/or at a point in time along a flow path, which allows the hydrogeologist to ælook up-gradientÆ and locate the zone of leakage. Hence, influences on rock/groundwater chemistry, from anthropogenic sources to natural mixing of waters, can be assessed via appropriate interpretation of geochemistry, hydrogeochemistry and flow data.This paper will use the example of the geochemical and hydrogeological characterisation of aquifers within the Hawkesbury and Bulgo Sandstone of the Southern Coalfields to the south of Sydney in New South Wales to demonstrate this approach.CITATION:Stuckey, M and Mulvey, P, 2013. Looking for fractures - integrating geochemistry with hydrogeology to find inter-aquifer leakage above dewatered or collapsed coal seams, in Proceedings Water in Mining 2013, pp 99-108 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Nov 26, 2013

By K Ehrig, C Lower, V Liebezeit, M Smith, E Macmillan

"Minerals, minerals, minerals. Elements occur in the earth as minerals. If local physical, chemical and structural conditions are conducive to concentrating these minerals to sufficiently high abundances in the earth’s crust, a mineral deposit will form. If technology is available to extract metals from the minerals economically, then you have a mineral resource that will be mined and processed. Determining which minerals are present and quantifying their abundances, textural characteristics (grain size and shape) and how they are intergrown with each other is the realm of the mineralogist. Geologists use this mineralogical data to understand how the mineral deposit formed, how to find high-grade zones within the deposit and where to find other mineral deposits. Metallurgists use this data to design, operate and optimise processing facilities to extract metals from the minerals. The types, quantity and precision/resolution of the mineralogical data required by geologists and metallurgists are different, but are not mutually exclusive of each other. Fortunately, measurement technology is available that is relatively rapid, high volume and low cost, thus enabling ore and gangue mineral characterisation at a historically unprecedented scale of a mineral resource.CITATION:Ehrig, K, Liebezeit, V, Smith, M, Macmillan, E and Lower, C, 2014. Geologists and the value chain – how material characterisation by modern mineralogy can optimise design and operation of processing facilities, in Proceedings Ninth International Mining Geology Conference 2014, pp 5–14 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Aug 18, 2014

By A J. Minns

This paper addresses the question: how can the minerals industry remain viable; viable in the sense that we are able to access land for exploration and discovery, we are able to develop and operate mines (and processing plants) safely and profitably and we are able to close operations in a responsible manner, so that modified landscapes are restored to acceptable community standards?Many of the answers to this question can be addressed through the theme of this conference û that of eco-efficiency. The eco-efficiency concept is very useful, since it does help to translate principles of sustainability into business value at the operational level. To provide some context to how this can be achieved, the paper discusses what is happening at the international level, outlines some key industry initiatives within Australia and then discusses what work is being done within companies.

Jan 1, 2004

By Sen S. K, Banerjee D. D, Nandy D. K

It has been stressed that the intrinsic spon- taneous heating characteristics of a coal is not enough in predicting spontaneous fire risk of a mine. The influence of extraneous conditions created from the system of mining operations are also to be reckoned with, A case study was made with a mine in Jharia field, India, being proposed to be developed under short wall method with complete extraction in 4-5 slices followed by stowing.

Jan 1, 1988

By A Galli

Traditionally pit optimisation and scheduling is carried out assuming that the resources, the commodity prices and production costs are all known. Once the pit contour and the mining schedule have been determined, geostatistical simulations can be used to assess the impact of the uncertainty in the resources on the pit design and the schedule, and likewise stochastic simulations can be used to test its robustness to fluctuations in costs and prices. But it would be more interesting to have a dynamic procedure for optimising the pit as the resources become better known and as economic factors such as commodity prices and costs evolve over time. This paper presents a novel approach for doing this. Rather than working with millions of small selective mining units, it was decided to work with large blocks, called macro-blocks. Mining sequences are defined as the quantities to be extracted from each macro-block in each time period. Feasible mining sequences are mining sequences that respect the accessibility constraints, and also the geometric constraints on the amounts that can be extracted from any one block over time, or from all the active blocks at a given time. Having defined feasible mining sequences, their mathematical properties were studied. It was found that natural breakpoints occur in the sequences when one set of blocks have been completely mined out, thereby opening up access to others. It was discovered that families of sequences exist, and that they are convex and closed under certain types of row permutation operations. Convexity is an advantage when optimising. The closure property opens up the possibility of mixing and matching subsequences of rows in the sequences. Another interesting property is that the sequences form branching families, rather like the binomial and trinomial trees used to model prices in finance and in real options.It is easy to generate large numbers of feasible mining sequences randomly. A two-step procedure is used to find the best one (or the best few) using three economic criteria: expected NPV,the probability of a negative NPV, and the percentage of years when the cash flow is negative. The procedure was tested on a synthetic gold mine based on the characteristics of the Essakane mine in Burkina Faso. The results were encouraging.

Sep 26, 2011

By P Collier

From 1972 until 1989 when operations were suspended Bougainville Copper Limited (BCL, owned 53.58 per cent by Rio Tinto Limited) operated a large open pit mine and processing facility at Panguna on Bougainville Island, Papua New Guinea producing copper concentrate containing significant quantities of gold and silver.BCL has a stated vision of recommencing operations at Panguna. In 2008, Rio Tinto, on behalf of BCL, conducted a multi-disciplinary study to assess the technical and financial viability of redeveloping the Panguna operation. One of the key outputs of the study was a Joint Ore Reserves Committee (JORC) Code compliant mineral resource statement based on the existing block model and fundamental data, archived since mine closure. Historical data (including the resource block model and drill hole data) was recovered from computer archives by a former Panguna mine employee familiar with the various obsolete data formats, thus maintaining an unbroken chain of custody of the data by Rio Tinto since operations were suspended. No additional data were collected as part of this study.The extensive data and documentation archive facilitated a sufficiently detailed evaluation of the fundamental data and model to support an updated resource statement. Table 1 of the JORC Code was used to guide the model validation process.Reconciliation of blasthole and metallurgical plant data with the reserve model, indicated that the copper and gold drill hole composite database was significantly biased towards underestimation in several key domains due to a combination of the following: mineralisation loss during core loss, core loss (minor), vertical drill holes failing to intersect sufficient subvertical mineralised fractures and veins, drill hole spacing too wide, and variable diamond drill hole core size. The resource model evaluation was based on three material types (all previously mined at Panguna), that were defined based on cut-off grade and rock type parameters: direct feed ore – material for delivery directly to the plant, preconcentration and screening ore – subeconomic material beneficiated to produce fines of economic grade, and waste. Three pit shells and designs were generated based on three separate sets of economic parameters. These economic parameters were also used to assign material types to the block model. The three resulting models were then evaluated against the corresponding pit shells.Classification of the resource was approached conservatively due to the inherent bias in the drill hole data. Consequently only Indicated and Inferred resources were tabulated.The study highlighted the importance of maintaining detailed documentation pertaining to resource estimates and operational history, particularly reconciliation, and the value that can be added by a simple, low-cost data compilation exercise.

Aug 22, 2011

By M S. Reston

The Tonkolili banded iron formations (BIF), Sierra Leone, host extensive iron ore deposits which are of economic signifi cance to the seaborne iron ore trade. The deposits are dominated by a strategic JORC compliant mineral resource of 11.6 Bt grading 30.1 per cent Fe comprised of primary magnetite mineralisation in the form of a fresh metamorphosed BIF featuring a uniform mineral assemblage of quartz-magnetite ± ferro-silicate minerals. Pilot plant metallurgical test work has demonstrated that the production of a magnetite concentrate is achievable using the established beneficiation techniques of magnetic separation and flotation. The concentrates arehigh-grade, and suitable for blast furnace or direct reduced iron pellet feed. The major challenge facing the development of such magnetite deposits at industry competitive production rates is the significant capital investment required for process plant and associated infrastructure.Two well-developed weathering zones exist within the deposits, and are associated with the progressive development of a tropical weathering profile overprinting the primary BIF. These zones feature a near surface hard indurated duricrust up to 60 m thick, and a soft progressively developed saprolite between duricrust and fresh BIF. These zones have been found to be amenable to producing iron ore products including DSO lump and sinter fines from the duricrust, and concentrate from the saprolite. Mineral resources sufficient to support commercial production of such iron ore products were defined by an intensive exploration program in 2010.African Minerals Limited has developed a three phase production strategy to progressively self fund the development of the Tonkolili strategic magnetite project by:• commencing a Phase I 12 Mt/a DSO operation in Quarter 4 2011,• increasing production in Phase II to 35 Mt/a with the commissioning of a saprolite beneficitation plant and associated infrastructure upgrades, and• developing a 45 Mt/a Phase III operation producing high-grade magnetite concentrate.The comparatively low capital and operating costs of a duricrust DSO lump and sinter fines operation coupled with its proximity to ground surface make it highly attractive for the generation of early cash flow for the Tonkolili project. Revenue from this early production may be used to selffund the subsequent development of phases requiring progressively more significant beneficiation plant and infrastructure.

Jul 11, 2011

By F Phillips, E Deucker, J Kato

It is challenging to determine the optimal mining strategy to maximise value when a mine plan includes mineralised material which does not meet the full cost of mining but has value exceeding the variable cost of mining (‘marginal material’). Mining too much marginal material dilutes the operation’s head grade and undermines profitability. Conversely, leaving too much metal behind fails to achieve the full value of the endowment. Finding the balance between the two will maximise value delivered from the asset. This dilemma has traditionally been approached by calculating a suite of cut-off grades to define the grade of material that meets economic targets for an orebody (or zone within) and should therefore be included in the mine plan. A problem with this approach is that individual mining blocks within the zone have different costs, value and confidence levels, with each having economic co-dependencies between them. Blocks of identical grade but different mining contexts will have distinctly different economic outcomes. For example: • a block may be a low-grade increment or shell around a higher-grade stope; • a block may be available to be mined when there is spare mining capacity; or • a block may defer access to significantly higher cash flow material. Each of these circumstances would result in different value from the blocks if included as part of the mine plan. Cut-off grades calculated as averages over zones of material, or in isolation from schedule-based information, are missing the entire mining context that determines the ultimate economic outcome of making a mining decision. There are tools and techniques available to address this for open pit mining, however underground mining has different nuances. There are more intricate economic and physical dependencies between potential ore blocks, and importantly, the decision to leave material in situ can be made at any time. The case study in this paper explores a new methodology for underground mining, targeted towards strategic planning applications. It examines whether the economic logic usually applied via cut-off calculations can be implemented in the schedule so that optimal economic decisions can be made on a block-by-block basis, taking into account the mining context of the block, with the objective to maximise asset value. The results of the case study scenarios in Table 1 demonstrate the magnitude of the potential improvement in NPV that can be attained by a block by block valuation approach

Mar 15, 2021

By J Samosir, L A. Snyman

Northparkes is located 27 km north of the township of Parkes in central New South Wales, Australia. The operations consist of underground block cave mines and an ore processing plant that produces high-grade copper and gold concentrate. Production is currently sourced from the E48 Lift 1 block cave mine and open cut stockpiles. Mining commenced at Northparkes in 1994 as an open cut operation. Underground block cave mining began in 1997. Northparkes was the first mine in Australia to use the highly efficient block cave mining method, which relies on gravity and natural rock stresses to fragment the ore.An issue affecting production in 2011 was the stability of the E48 mine. A small portion of the drives on the extraction level began to deteriorate as the ground support system failed. The problem was temporarily fixed by stopping production in three extraction drives and tight filling selected areas within these drives (and drawpoints) with low-strength concrete. This action provided immediate support and stability whilst allowing time to investigate potential ground support remedies. From these investigations it was decided to use resin injection technology and additional ground support to stabilise the rock in the aforementioned extraction drives as the concrete plug was excavated in a controlled advance and sequence. This made the area safe and ensured the ongoing safe operation of the E48 mine. The redevelopment of one of these drives began late in 2011, with the remainder being progressively redeveloped over the next two years in order to maintain the extraction level stability.This paper looks at the strategies employed to safely re-open previously converged drawpoints and associated extraction drives that were subject to high abutment loading that was possibly associated with premature cave breakthrough.CITATION:Samosir, J and Snyman, L A, 2014. Redevelopment at Northparkes following significant drive closure, in Proceedings AusRock 2014: Third Australasian Ground Control in Mining Conference , pp 87–92 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 5, 2014

By R Razanatsimba, A Galli

A mining company has entered into contractual commitments to supply certain quantities of its product to clients in each time period. Failure to fulfil its obligations would damage its reputation as a reliable supplier. The planned production would normally be sufficient unless major problems such as highwall failures, roof falls, natural disaster, or strikes that interrupt production or delays in obtaining environmental permits, occur. To overcome these difficulties, the company may be able to obtain more of the commodity: from its strategic stockpile (if there is sufficient there); by buying it on the spot market; or for some commodities such as gold and uranium, by leasing it. Two sources of uncertainty, the spot price of the commodity and the occurrence of serious incidents that interrupt production, are considered. For simplicity it is assumed that the commodity price follows a geometric Brownian motion, that productions incidents have a binomial distribution, that they are independent from one time period to another and that they do not affect prices. A branching tree structure is used to model the joint evolution of prices and production incidents. The aim of this research project was to evaluate the companyÆs options for fulfilling its contractual commitments. When evaluating these options, multi-stage stochastic programming with recourse was used to solve this problem because in addition to providing the dollar value of the project, it gives decision-makers the æroadmapÆ to reach the optimal value. That is, how much material should be bought/sold on the spot market, how much to add to/subtract from the stockpile, how much to lease and in the worst case what the shortfall would be, for each time period as a function of the current spot price and breakdown status. A case-study over a five-year period is used to illustrate the proposed procedure. In this study the production would be sufficient to cover the companyÆs contractual commitments unless production incidents occur. Focus is on evaluating the impact of the quantity initially in the stockpile on the value of the project when the commodity market is tight, that is, when only small quantities can be bought on the spot market or by leasing.

Sep 26, 2011