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Downstream value-adding is a strategic issue for a country like Australia, which has a resources-driven sector of a scale that has significant impact on the national economy. The question of why producers are not doing more to ævalue-addÆ is often asked. In Australia this debate takes place within the context of: an era of unprecedented growth in demand for resources driven by the rapid urbanisation of China, India and others;impending legislation and uncertainty around carbon pricing;rapidly rising energy costs;significant supply-side shortages including infrastructure, skills and manufacturing capacity; andsignificant industry consolidation of primary resource producers with commensurate improvements in market power.There are several examples of resource-based industries which have developed their business along the complete value-chain; for example large oil and gas producers successfully span upstream and downstream operations including refining and petro-chemicals as well as retail distribution of fuel and other products. Relevant frameworks that provide insight and understanding into the strategic issues around value-adding are reviewed and examples of the application of these frameworks to companies and industries which have successfully adopted a strategy of integrating along the value-chain, as well as those players who have focused on parts of the value-chain are presented. The issues around value-adding in Australia are then reviewed with reference to these frameworks and it is concluded that the issue is a conflict between the objective companies who wish to maximise financial value versus the desire of governments to increase economic benefits. An approach to aligning these objectives is proposed.

Jan 1, 2008

By M Noppe, I Glacken

There are many critical nodes along the mine value chain, from orebody to mineral product, and inter-disciplinary input is required to analyse the variability and uncertainty at each node in order to identify and mitigate areas of risk. Mining differs from many other industries in that the variability in the product is dictated largely by the inherent nature of the input material (the orebody). The true characteristics, including the variability of the orebody, are never known exactly and are instead based on estimates derived from sample data. A further difference is that bottom-line gains are largely controlled by world commodity prices, which can vary with time, rather than by local supply and demand issues. Methods for identifying, reporting and responding to this inherently variable raw material are discussed. These include analytical and reporting methods, equipment and software, risk analysis and reality checks (eg reconciliation). Sampling results, mineral resource and ore reserve estimates and economic assumptions are a function of the variability of the orebody. Risk quantification should be expressed as a level of confidence, which takes into account the scale or period over which the risk is being assessed (life-of-mine, annual or shorter production periods) and should convey the likelihood, severity and consequence of occurrence of a given event. The future generation of mining specialists needs to understand the entire mine value chain to better manage risks and maximise mine dollar-value.

Jan 1, 2002

Conventional blasthole sampling for grade control has acquired an extremely bad reputation for the last 50 years. The introduction of many sources of bias is a structural reality. Delimitation biases are devastating. Extraction biases are of great concern as well. Weighting biases aggravate an already bad situation. Furthermore, preparation biases are many. Some of these biases are due to the type of drilling machine that is used and are nearly unsolvable. Some of these biases are due to the sampling tools that are used and often unsatisfactory. Attempts to automate blasthole sampling at the drilling site have failed, not because it cannot be done, but mainly because it interferes with drilling productivity. As a result the miner most often rejects the idea after a few weeks of practice. Manual sampling of blasthole piles is a disaster for many reasons; some are related to the methodology, some to the selected sampling protocol, some to the training of operators, some to limited manpower available, and some to limited supervision. Furthermore, with blasthole sampling a time logistic problem is unsolvable as the miner wants the ore grade control geologist to make up his mind within two or three days at most; as a result not enough time is allowed for samplers, preparation facilities, laboratory, and resources department to perform a good job as everyone is working under unreasonable pressure. The economic impact of poor blasthole sampling for grade control has been vastly underestimated by mining companies. The resulting ore grade misclassification is responsible for severe reconciliation problems and massive financial losses every year. This paper suggests areas along this grim scenario where things can be greatly improved; however it is clear that too many problems are unsolvable. An alternative using reverse circulation drilling for grade control is suggested. A thorough analysis of the respective advantages and disadvantages for blasthole and reverse circulation drilling for grade control is presented in this paper.

Jan 1, 2008

There are a number a stages in a project at which an audit must, or should, be undertaken. An independent audit may be necessary for the comfort of directors and/or financiers before the major finance is committed, but an internal pre-development audit is the opportunity for the management team to take stock of the project and reaffirm their confidence and commitment. Maxims for project success are given and a check list for pre-development audits is presented. The need of mid-development audits may arise and their brief will depend on the circumstances arising. A game theory approach to decision-making is demonstrated in which the alternative of fast-tracking a development is considered. At the conclusion of the project, before the team is disbanded, a post-development audit should be made. Valuable learning can come from this process which could give important guidelines for future projects and a check list is presented.

Jan 1, 1997

By J K. de Wet, G Balassone, J D. Singleton, V Arseneau

The Accha-Yanque zinc belt in southernPeru is a major zinc-lead rich metallogenic province. In the belt are comprised several non-sulfide-type occurrences, extending on the periphery of the Yauri-Apurfmac batholith (Oligocene-Miocene). Zinc mineralisation at Accha (almost fully oxidised) occurs in breccias of sedimentary and tectonic origin in the limestone of the Ferrobamba Fm (Middle to Upper Cretaceous). Non-sulfide association consists mainly of smithsonite and hemimorphite replacing both primary ore minerals and carbonate host rocks. Mn(hydr)oxides and Zn-clays (sauconite), can be locally very abundant. Differences in mineralogy of the ore and gangue minerals, as well as the composition of the host rock can have a profound impact on zinc recovery and reagent consumption, and therefore on the economic value of the deposit. An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation.

Jan 1, 2008

By P D. Williams

The Phoenix mine is one of NewmontÆs open-pit operations located in Nevada. Mining started in 2005, with the mine producing gold, copper and silver. The mine life is about 20 years. The gold grade estimation uses the Newmont in-house indicator kriging approach to handle the high variability in drill hole composite grades and support mining selectivity. Each block contains up to 200 subblocks with different gold grades. A flotation mill is designed to process oxide and sulfide ores, recovering gold, copper, and silver. An additional copper leach process is currently under study to process low gold and high copper oxide material with low copper recovery in the mill. The metallurgical recoveries and processing costs are dependent on many variables including rock formation, metallurgical domain, cyanide soluble copper and sulfide contents. This paper describes the Newmont in-house indicator kriging procedures and the revenue based mine planning software system implemented at Phoenix mine to address the complexity resulting from multi-process, multi-metal and indicator kriging model.

Jan 1, 2007

By R Dunne, D Yan

In flotation where a bulk flotation concentrate is produced or a gangue sulfide such as pyrite contaminates a concentrate, residual collector has to be removed from the sulfide surfaces to allow selective separation in a subsequent flotation step. Depending on the sulfide mineral, the main species that needs to be removed when using a xanthate collector is either a metal xanthate or dixanthogen. For the identification of surface species, specific solvents may be used to remove each species û metal xanthates are known to be soluble in acetone whilst dixanthogens are known to be soluble in non-polar solvents such as diethyl ether. Xanthates break down with time, temperature and pH into various decomposition products. The major decomposition product is dixanthogen which can aid flotation but other products such as perxanthate and carbon disulfide can have an adverse effect on flotation. Various analytical techniques can be employed to monitor the formation of decomposition products on the surface of the mineral and in solution. The best of these is ultraviolet spectroscopy as it has diagnostic peaks for decomposition product determination. In this work two approaches were taken to understand the relationship between the flotation of a chalcopyrite and pyrite from an ore containing these two minerals. One approach was to remove the xanthate species with an organic solvent and then use ultraviolet spectroscopy to determine the concentration of dissolved species. The second method involved measuring xanthate decomposition in solution by measuring the residual xanthate concentration using ultraviolet spectroscopy. These experiments confirmed the species adsorb at the surface of the mineral and how these species affect the recovery and grade of the valuable mineral. In both cases pH and temperature were varied and two xanthate collectors (SEX and PAX) were used to study these relationships. These relationships could be applied to industrial flotation systems and allow for more accurate determination of optimal xanthate dosage and hence save on reagent costs.

Jan 1, 2005

North Broken Hill Limited came into prominence as a producing mine at· the commencement of the present century, when a great many of the disabilities experienced in earlier mining operations th:rough lack of adequate stope filling had been overcome.The northern or narrower ore-body was first mined in the upper levels and, in the early stages, no great difficulty in mining was experienced. In depth, under the influence of its northerly pitch,. the wide southern ore-body entered the North mine between the 400 and 500-ft. levels. Owing to its flat dip and the relatively weak nature of the hanging wall and footwall, the value of close filling was recognized and this policy has been followed throughout the life of the mine. This feature undoubtedly contributed to the freedomfrom "creep" action to which some of the older mines had been subjected.The Broken Hill lead-zinc-silver ore-bodies occur as well defined replacements of favou:rable horizons, in intensely folded Pre-Cambrian sedimentaries. In the North mine two main replacement zones occur, the Gre being found where the beds are involved in a certain set of minor folds. The resulting ore-bodies are roughly elliptical in cross-section, the long axis of one being north-east of, and somewhat offset from the long axis of the other. The ore-bodies pitch eastwards at 40° and dip northwards at 60° in a fairly regularmanner. The southern Ore-body has an average length of 700 feet and an average width of 90 feet with a maximum width of 230 feet, whilst the nonhern ore-body on the lower levels averages 500 feet long and 40 feet wide.

Jan 1, 1940

Australian wheat belt agriculture is causing a decline of its natural resource base. The major problem, salinity, arises from a small reduction in water consumption by agricultural crops compared to what prevailed under the prior native vegetation. This causes groundwater accumulation which, in the low relief landscapes of the wheat belt, is leading to extensive surface saturation in low landscape positions and dramatic, destructive change in the hydrological behaviour and habitat of streams and rivers. The ability of agriculture to invest in salinity control is severely limited by its long-term decline in its terms of trade. Extensive planting of perennial vegetation has the potential to increase water use and arrest the salinisation process. If these perennials were also commercially attractive, the cost of salinity treatment could be minimised. Given the difficult commercial position of food commodities, it is logical to develop ænon-foodÆ perennial crops, in particular woody crops suitable for industrial products. This paper looks at the example of Sweden, where there has been a generation of investment in developing forest harvest residue recovery, and short cycle woody crops for bioenergy, but with only limited success. In contrast, secondary residues (processing wastes) from forestry industry are readily saleable for low value uses like bioenergy. This suggests that the model woody crop must have a higher value fraction to facilitate delivery and commercial use of its lower value fractions. This model is being emulated in the development of native mallee eucalypts as short cycle woody crops in Western Australia. Some $50 million has been expended on mallee development in the past decade and this has culminated in an engineering demonstration of integrated processing. The putative high value products are activated carbon and eucalyptus oil and the residue (plus waste heat) will be converted to electricity. The potential scale on which crops of this type would be required to achieve salinity control means that many more high value and residue products will have to be developed. Metallurgical charcoal appears to be a promising product option.

Jan 1, 2006

By S La Brooy, C Fountain

Throughout its history the mining industry has focused on the highest-grade deposits sited in the most convenient locations. The burgeoning global population and higher standards of living not only increase the demand for mineral products but also make it harder to mine and process them. The future will include the development of lower-grade, more complex orebodies, and orebodies in difficult locations. The industry will be expected to provide for humanityÆs needs while reducing its environmental footprint and maintaining profitability. This paper reviews some of the likely adaptations in mineral processing that will occur over the next 20 years. The challenges inherent in adapting to lower grade and more complex materials might be exacerbated by such factors as the availability of water and low-cost energy. In underground mining, higher energy costs are likely to foster further developments in underground preconcentration, especially for ores that can be upgraded at relatively coarse sizes. The adoption of underground crushing could also render material amenable to semi-dry preconcentration options such as might be achieved by the rotary classifier developed by CSIRO and being commercialised by RCR Tomlinson, or more modern versions of the hand-sorting of ore that use sensors based on colour or other suitable rock properties. The cement industry and some gold roasters have used the alternative of dry grinding and classification, which might also have a part to play in dry processing. There is also likely to be increased interest in options such as in situ leaching that further minimise the surface disturbance. Underground operations will have to balance the energy savings from reducing the amount of material brought to the surface and reduced surface disturbance against the practical limitations of installing and maintaining processing equipment underground. On the other hand, surface disturbance and energy issues in open cut operations will be balanced by potentially lower mining costs and higher overall recovery from the deposit.

Jan 1, 2008

By B Roberts

The Department of Industry and Resources (DoIR) is responsible for several sets of legislation, which, among other things, regulate the storage, handling and transport of dangerous goods as well as every aspect of the life cycle of explosives in order to prevent explosions, fires and spillages. The legislation with particular relevance to explosives includes: The Explosives and Dangerous Goods Act 1961; the act deals with the storage, manufacture, sale, import, authorisation and use of explosives. It is primarily framed for use of explosives and fireworks in the general community but also has relevance for storage on mine sites. The Dangerous Goods (Transport) Act 1998; this act regulates the transport of explosives on public roads, but not on mine sites. The Mines Safety and Inspection Act 1994 (MSI Act); this act and supporting regulations deal with the full spectrum of occupational health and safety in the mining industry. There is a substantial section in the regulations dealing with the use of explosives at a mine site.DoIR has identified the need for security upgrades of the Government Explosives Reserves, the need to tighten security measures at mine sites, the need for improved security checking for licensed shotfirers and the need to restrict the availability of explosives to authorised people who have had appropriate security checks. It is also clear that we need restrictions on the sale and use of ammonium nitrate (AN). A number of additional security measures are being proposed and all proposals are being refined by ongoing industry consultations. These will be adopted into new explosives regulations in association with the new Dangerous Goods Safety Act 2002 (DGS Act). Government finalised the act in June 2004. The act remains dormant until new explosives and dangerous goods regulations have been prepared. When the DGS Act and a suite of regulations are proclaimed as a package, sometime between December 2004 and April 2005, the old legislation consisting of the current two acts, will be automatically repealed. It is also proposed that all explosive regulation, including those under the MSI Act will be consolidated in one place under the DGS Act for user friendliness.

Jan 1, 2004

By D A. Williams

The conventional method of transporting mine tailings from a process plant to a tailings storage facility (TSF) is in the form of a low to medium density1 slurry, which can be pumped using centrifugal pumps. Over the past several decades, therefore, mine operators have generally adopted this default approach. There are, however, some convincing arguments why consideration should be given to thickening the tailings slurry to a higher density paste consistency. In particular, the minimisation of environmental impacts, the reduction in water consumption and the cost savings relating to TSF closure make paste an attractive option for the life of mine tailings disposal. There are several environmental impacts that are associated with a conventional slurry TSF, such as land sterilisation, aesthetics, dust, seepage and acid mine drainage. Some of these impacts, such as dusting, may be difficult to mitigate while the TSF is in operation. Others can be influenced by adjustments made to the tailings slurry density at the plant. Unplanned fluctuations in slurry density and/or viscosity can have a significant influence on TSF performance and can exacerbate the environmental impacts relating to the facility. Relatively minor changes in the solids content of the slurry can affect tailings beaching behaviour, degree of segregation, position of the phreatic surface, amount of freeboard, consolidation behaviour, placed (settled) density (and hence TSF capacity) and in situ strength of the tailings. Paste is a non segregating slurry and many of these effects can be minimised at the TSF when the tailings slurry is thickened to a paste. These improvements are manifested by reduced seepage, flexibility in selecting an appropriate final landform, ability to rehabilitate progressively and reductions in plant water usage. It is possible to minimise environmental impacts of a TSF through the use of tailings paste. Ideally the paste production plant should be part of the initial design of the process plant. However, significant benefits can be gained by adding a paste production plant at some time later in the operational life of the mine to reduce environmental impacts and facilitate an environmentally acceptable TSF closure.

Jan 1, 2002

By H W. Scriba

The development and improvement of computer-based process simulation packages over the past 20 years has provided process engineers with a powerful tool to use in the design of complex metallurgical plants. The use of such modelling tools has enabled the design of process plants that minimise operating and capital costs whilst optimising plant efficiency and recovery. Almost every new project developed in the current market is underpinned by a simulation of the process. In line with engineering best practice this simulation should be based on laboratory/pilot plant test work results and sound assumptions. Any errors that are not identified in the development of the process simulation may have significant effects on the final design and operation of the processing plant. Developing a simulation of the process in a comprehensive, logical and auditable manner is thus essential in ensuring the simulation accurately represents the expected process plant behaviour. A methodology that ensures these requirements are met has been developed by SNC-Lavalin Australia and is described in this paper. The methodology includes the major review stages of data collection, model planning, model building and optimisation, model review, scenario testing and options development, and model reporting. All of these stages should incorporate comprehensive client interaction and review by a suitably qualified representative. In applying these methodologies SNC-Lavalin Australia ensures that the process simulation model developed can be confidently utilised in the design of the process plant, and in the estimation of operating and capital costs, whilst ensuring that engineering best practices are met.

Jan 1, 2008

One common public perception of mining is that financially it is an extraordinarily risky business. Another and contrary view, in certain circles, is that price risk and other financial risks can be relatively easily removed or shifted by a number of schemes or devices. In reality, beyond the orebody discovery stage, mining need not be any more risky than most heavy industrial businesses. Nevertheless, as stated by Rappaport, (1986): Risk is a parameter of central importance in establishing the economic value of any asset. The level of risk is determined both by the nature of the firm's operations and by the relative proportions of debt and equity used to finance its investments. These two types of risk are commonly referred to as 'business risk' and 'financial risk' respectively. The term financial risk is used somewhat more loosely herein to recognise the reality that any risk inadequately addressed in the design, construction and operation of a mining project can have significant financial consequences; usually negative. For instance, a specific area of business risk in mining is often called technical risk which definitely has severe financial consequences if not managed correctly. The various risk shifting, hedging and risk management tools available all have their place and range from merely useful to almost indispensable. However, in the long-term, financial risks are maintained at acceptable levels by the application of sound, more fundamental business management principles. There are many with a vested interest in perpetuating a perception that the conceptual foundations of sound management practice are extremely complex. In reality, most management concepts are prosaic, but their application requires incredible discipline and hard work. There is no magic formula or 'silver bullet'. It appears that a company whose activities are restricted to mining can analyse the range of risks specific to mine development and operations more clearly than companies in which mining is just one of many businesses. The almost universal failure of large oil companies in the mining business is probably the best example of lack of any clear comprehension of fundamental business characteristics and risks. Conversely, in regard to risk management, choosing to be in other business as well as mining does nothing to reduce the risks of the mining business. The individual shareholder can probably make such 'diversification of portfolio' decisions better than most management teams. It could be argued that diversification across a number of disparate businesses may actually increase overall corporate risk due to lack of management concentration and focus. These differences between the perceptions of financial risks and the realities in mining need to be further elaborated in relation to some uncompromising business concepts.

Jan 1, 1994

Monazite sand is processed at the rate of 25-30 tons per week at Rare Earth Corporation of Australia's plant at Port Pirie. Main products are rare earth concentrates of cerium, lanthanum and yttrium. By-products are commercially pure water soluble thorium sulphate and tri sodium phosphate. The more recent developments in volume rare earth applications are Discussed.

Jan 1, 1972

The Income Tax Assessment Act ["the Act"] levies tax on a taxpayer's taxable income. At a time when commerce and life were more simple, the calculation of taxable income had some connection with logic and a taxpayer's capacity to pay. However, as a result of successive governments' different views of equity, their perception of avoidance, their needs for revenue and their changing views on capacity to pay, the rules determining the calculation of taxable income have continually changed to the point that logic is no longer relevant. Taxable income now is simply the product of the application of a complex set of rules.

Jan 1, 1990

The Newmont Waihi Operations mill has undergone significant growth over its life. Initially designed as a single SAG mill operation, the circuit has been progressively upgraded since 1988 from a nameplate capacity of 600 000 tonnes per annum to the current rate of 1.3 million tonnes per annum. With future mining potential there is renewed interest to increase the processing rate even further. Over the next twelve months five sustaining capital projects will be undertaken and two major eco-efficiency projects will be completed. With the exception of the large grinding mills, most equipment on a gold treatment plant is replaced after 10-15 years. Waihi Gold mine has been operating for 14 years and has just recently received approval to replace equipment in five main areas; carbon elution, carbon regeneration, scats crushing, intertank screens and variable speed drives. Each project has been justified on improved process efficiencies and operating/maintenance cost savings. The two eco-efficiency projects involve a water balance model and a cyanide optimisation project, both of which are Corporate key performance indicators (KPI).

Jan 1, 2002

By P Alspach, R Buxton, C Morgan, C Ross

Mining companies worldwide have an increasing interest in restoring indigenous ecosystems following mining. Low levels of plant nutrients and organic matter, pH extremes, heavy metals, physically challenging media, and difficult climatic conditions all hinder revegetation of steep rockdump slopes. Our techniques use colonising pioneer plants to accelerate natural soil development and plant succession processes on minesites that are difficult to revegetate with locally sourced plants by traditional techniques. Suitable treatments and pioneer species must first be identified for each rocktype. Field trials at the Stockton Coal Mine in Buller have shown that successful acceleration of moss and pioneer plant establishment is possible. Best plots showed a mean of 15 per cent moss cover and 3.3 per cent vascular cover after 12 months compared with 0.1 per cent and nil respectively for controls. Techniques have been extended to field-scale trials, using hydroseeders and dryblowers. These techniques show potential for practical land rehabilitation, whilst conserving local biodiversity.

Jan 1, 2003

The present-day arrangement of old ( ? ) Palaeozoic and Mesozoic metamorphic rocks in eastern New Guinea lends some support to the concept of tens:konal dilation in Upper Cretaceous to Lower Tertiary time, It appears that the metamorphic core of the Morobe Arc (Glaessner, 1950) could have been rifted from the eastern flank of Cape York Peninsula, and then been carried north-eastward by some unspecified sub-crustal. tangential force. In the early stages of the rift it is thought.that submarine basalts may have extruded up the .'tension .scar and spread across the floor of the opening rift. Thick clastic muddy sediments derived almost exclusively from the rifted block were then spread across the floor of the opening rift. Later ~ertiary lateral movements from east to west along the Markham-Ramu Fault appear to have bent the northern end of the Morobe Arc towards the.east,,causing the intense folding in the sediments of the Aure Trough.

Jan 1, 1962

With the continued drop in export coal prices (as measured in US$) delivered to the Pacific Rim market, and a fixed annual 12 per cent increase in overburden, Usibelli Coal Mine Inc was faced with the need to reduce mining costs substantially or else forfeit its foreign coal contractual commitment which amounted to about half of annual mine output. Management made a difficult and fortuitous decision to proceed with an engineered plan to switch from a two seam, extended bench dragline operation to a two seam, cast blast and spoil side operation. While down-sizing and cut-backs became the rule in all departments of the mine, the drilling and blasting budget was more than doubled. Most will agree that this is contrary to what usually happens when a mine is faced with down sizing. The more common scenario would have management target the drilling and blasting budget for decrease as a first priority to cutting cost, and then later witness a decrease in equipment performance leading to an increase in the production cost per tonne. Although Usibelli Coal Mine more than doubled its annual drilling an blasting budget three years ago, the overall stripping cost has be, reduced by more then 37 per cent.

Jan 1, 1995