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By L A. Martinez Tipe, J McKibben, S Barry

"Metal prices are central to a mineral investment decision and have a profound impact on the financial performance of companies in the mining industry. At its most basic level, metal prices are influenced by the disequilibrium between international metal volume supply and demand. That is, the commodity price is a regulator that equates international metal supply and demand where inventories act as a buffer between the emergence of this disequilibrium and its dissolution through a price change.From this viewpoint, mining companies are required to forecast metal and bulk commodity prices when evaluating minerals projects through discounted cash flow (DCF) analysis. While supply-demand models are instructive, many companies use historical prices, spot prices, futures/forward pricing and consensus opinion (or a combination of all of these) to develop price forecasts.This paper discusses the definition, fundamentals and differences between futures/forward and consensus pricing and the appropriateness of each in a DCF model for mine project economic evaluation.Our results demonstrate that great care is required when using either futures/forward or consensus pricing and that the decision to use one rather than the other requires consideration of other important elements in the DCF model (ie the risk-adjusted discount rate).CITATION:Martinez Tipe, L A, McKibben, J and Barry, S, 2016. Metal prices and the differences between forward and consensus pricing – which one is better for use in a discounted cash flow model?, in Proceedings Project Evaluation 2016, pp 149–158 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

Tumbling mills and some theoretical and practical aspects of milling are discussed. Attention is directed towards the difficulty of relating the dynamical analyses of the motions of particles within mills to the existing treatments of breakage processes. This synthesis may be advanced by a study of milling that utilizes the matrix analysis of breakage processes. Application of the matrix analysis to results obtained on (i) grinding in open-circuit a zinc ore in a conical pebble mill and in a modified conical mill, (ii) "grinding of cement clinker in a compound mill, and (iii) to some drop-weight grindability tests is discussed. It is shown that the 'IT-breakage model adequately describes the breakage processes of each of the tests. (The proportion broken in each breakage cycle is given by 'IT and is independent of particle size.)The size distributions of the products are accurately predicted in the cases considered. Matrix analyses of the breakage of coals, various ores and a cement clinker have been made. Appendices give an elementary account of the matrix methods and give the equations fully describing reverse order closed circuit operations. The matrix analyses of breakage processes and the survey are used to examine briefly closed circuit grinding.INTRODUCTIONTumbling mills are slow-speed crushing and grinding machines which have been developed from some fairly simple types into many widely differing forms. Many of these versatile mills have proved extremely useful in ore dressing and mineral beneficiation, whereas others have been used in the cement industry and less extensively in the coal industry.The performance of even the simplest tumbling mill is very imperfectly understood, whilst the more difficult problems associated with the balancing of complex milling circuits and with the establishment of the optimum operating conditions for the whole of a complex circuit are even less well apprehended.Our knowledge of the performance of tumbling mills is rather sharply divided into two categories: the first consists...

Jan 1, 1957

The problem of stability of the development working at the great depths of coal winning is of great seriousness. Numerous researches of the problem were carried out in the USSR, the results of which determined that raising of resistance of existing support will not lead to a considerable rise of working output. It is necessary to try to find ways at the expense of heightening the support ability of rock massif. For these purposes it is necessary to direct it correctly and in proper time. While carrying the development working the most intensive deformations of rock occur at a depth of 30m from the entry face. The zone of destruction of rock around the work is realised here for 60 to 70 percent. These facts show that in influence zone of entry face a kind of embryo of the working steadiness is forming, which greatly determines its following conditions. Therefore, it is necessary to begin direction of mining pressure around the work directly in a face.Complex research of the mechanism was carried out starting with the effect of moving face upon the surrounding rock massif. It was ascertained, that the zone influenced by the face is a section of 5 equivalent diameters of the work by the length within which the rock of the sides, roof and floor, experience the cyclical influence of stresses at the time of cyclical shift of the face. The elastoplastec deformation is occurring with it at the moments of rock removal and the deformation of creeping takes place at such intervals.

Jan 1, 1991

By J F. C L Costa, J C. Koppe, C Diedrich

Currently mineral resources evaluation is firstly expressed in terms of volume. Next the resources are transformed into tonnes by using an average bulk density applied to the whole deposit or, in some other circumstances, various different densities to distinct geological domains. Previous work in uranium, copper and nickel deposits used linear correlation between grades and bulk density to derive the density. Geophysics methods are also another good way to obtain density indirectly.These approaches do not take into account that two samples with the same grade but with different bulk densities can characterise different sample supports, leading to severe bias in grade and tonne estimates. It is important that the systematic measurements of bulk density are included into the estimation process, particularly when density is not correlated with the grades. Additionally, the extra time and costs involved in obtaining the bulk density data have made the mining industry disregard it.This study reports the impact in resource estimates by using a methodology that includes the bulk density variability. It involves the determination of a variability model for the bulk density and another model for the composite that was weighted by density as well as by its length. Next, these variables are estimated by kriging and the final grade estimates are obtained. The tonnages are obtained with the bulk density estimates. The conventional methodology was also applied and both estimates are compared to the reconciliation data from a major copper deposit. The results show a significant difference between the tonnage and grade estimates obtained from these two methodologies.The results show that considering density variability when compositing leads to a more accurate methodology resulting in better grade and tonnage estimates locally and globally.

Sep 26, 2011

Effects of High Pressure Grinding Rolls on Platinum-Bearing Ores and the Flotation Response as Compared to the Conventional Ball Mill Three major PGM ore types from the Bushveld Complex of South Africa: Merensky, UG2 and Platreef were comminuted with the use of the high pressure grinding rolls (HPGR). The influence of the feed characteristics and the various operational and design features of the HPGR on energy consumption, throughput, mineral liberation and PGM flotation recovery were investigated. The test work variables included two feed top sizes of 12 mm and 6 mm, specific grinding forces ranging between 3 - 7.5N/ mm2 and zero gaps of 1.5 mm and 3 mm. The results show that the influence of the HPGR operational and design features on energy consumption, throughput, mineral liberation and PGM recovery are ore dependent. The size reduction-specific energy relationships show that the most energy efficient utilisation of the HPGR for Platreef ore was at the lower specific grinding force of 3N/mm2 and the zero gap at 3 mm. For Merensky and UG2 ore on the other hand, the most energy efficient operation was at the higher specific grinding force of 7.5N/mm2 and the zero gap of 1.5 mm. At a specific energy input of 3 kWh/t, reduction ratios (F50/P50) of 6.5, 3.8 and 10 were obtained for Merensky, UG2 and Platreef, respectively for feed top sizes of 12mm. Further application of the HPGR as a pregrinding stage to a ball mill showed a 25 - 30 per cent increase in throughput for Merensky and UG2 ore. Batch flotation tests performed on selected samples appear to indicate that ore comminuted with the ball mill had superior grades compared with that ground with the HPGR. However, Merensky and UG2 ore comminuted at different HPGR operating conditions showed distinctions in PGM recovery. Platreef on the other hand did not appear to show any differences. Therefore, this study highlights the significance of ore type and operating variables in HPGR applications with regards to energy efficiency, throughput and PGM recovery.

Sep 13, 2010

By C M. Wawryk, S L. Garwin, J D. Foden

"An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation. The Batu Hijau porphyry Cu-Au deposit in south-western Sumbawa, Indonesia is an ideal natural laboratory to study the fractionation of iron isotopes in magmatic rocks that range in composition from basaltic andesite to tonalite. Intrusive rocks are associated with a porphyry system that contains well-preserved early hypogene copper mineralisation. We analysed pre-, syn- and post-mineralisation igneous intrusive rocks. We also separated magnetite, chalcopyrite and bornite from hypogene porphyry-style quartz veins, and measured the Fe-isotope ratios of samples by solution multi-collector ICP-MS. Iron isotopic composition of samples from the magmatic suite show an increasing d57Fe with increasing SiO2, supporting geochemical and textural evidence that the Batu Hijau Tonalites underwent closed system fractionation. Equilibrium and co-existing mineral textures allow the calculation of the following preliminary empirical mineral-mineral fractionation factors at 500°C for certain mineral pairs.Iron isotopes have the potential to provide geothermometric data to complement fluid inclusion data, especially where heating stages have operational limitations and where fluid boiling results in a wide variety of inclusion types that may make analysis difficult.CITATION:Wawryk, C M, Foden, J D and Garwin, S L, 2015. Iron isotope fractionation in magmatic-hydrothermal minerals – a porphyry copper case study from the Batu Hijau deposit, Sumbawa, Indonesia, in Proceedings PACRIM 2015 Congress, pp 389–396 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 18, 2015

By S R. La Brooy, T Giraudo, I C. Ritchie

The treatment plant at the Macraes Gold Project in New Zealand processes a carbonaceous, refractory sulphide gold ore. Since its commissioning in 1990, there has been a programme of continuous improvement of the plant, leading to higher recovery, increased throughput and low operating costs. During this time, a number of processes for treating both, or either, the preg-robbing carbonaceous fraction of the ore and the refractory sulfide fraction have been evaluated, trialed and utilised. The latest phase involves the installation by Minproc of plant utilising Newmont Gold's Pressure Oxidation Technology, a process which is anticipated to mitigate both problem factors when commissioned in 1999.

Jan 1, 1998

There is an alternative theory of the high grade orebodies of the Middleback Group, based on the primary nature of the high grade ores in an area of carbonate deposition, with lesser amounts of siliceous and aluminous sediments. The environment is thought to have been unstable, possibly volcanic, and to have been a subsiding basin, substantially isolated from the open sea.Jaspilites, iron bearing talc rocks and iron bearing carbonate rocks were derived from the primary sediments by metasomatic alteration after metamorphism.The metasomatic agents were carbon dioxide and water vapour which were mobilized from the primary dolomite and reacted with a metamorphically produced group of iron bearing and iron free amphiboles, forming talc and progressively releasing silica and iron oxides from the iron amphiboles.The talc rocks in turn released silica which reconstituted jaspilites into their present 200 ft thick crust or zone.The theory accounts for the present disposition of a jaspilite zone over a talc zone which in turn overlies a carbonate zone, and accounts for the down dip changes found in bores which penetrate these zones.INTRODUCTIONIron Duke (Fig. 1) lies some 34 miles south west of WhyalIa in South Australia, and is the most southerly ore body in the Middleback Ranges.The Middleback Ranges are divided into a northern range and a southern range meridionally disposed and separated by an erosion gap called Kimba Gap.The South Middleback Range contains four orebodies;Iron Duke at the southern extremity, Iron Duchess north of Iron Duke and on the same ridge, Iron Knight also on the same ridge, which has been breached by erosion between theDuchess and Knight orebodies, and north east of Iron Knight, the Iron Chieftain.Cook's Range is the eastern range of the South Middleback Range and no large orebodies are known to occur there.

Jan 1, 1963

The stratigraphy of the Western Coalfield is briefly reviewed and the important units of the Lithgow Coal Measures, particularly the coal seams, are defined. The possibility of coal measures of Tomago age ocurring near the edges of the Sydney Basin is discussed onpresent evidence.Using data obtained from unpublished drilling records, detailed structural, isopachous and lithofaeies maps have been drawn. These show that the structure of the coal basin has been influenced by the underlying basement in many ways.The prominent jointing in the overlying Triassic sandstones is discussed in relation to jointing in the coal measure sediments.It is concluded that in addition to the general knowledge obtained with respect to the coal basin, useful information regarding coal quality and quantity can be gained by the study of broader sedimentary and structural features.INTRODUCTIONThe term "Western Coalfield" covers approximately the area from Katoomba to Rylstone, together with the smaller, separate Ulan area (Fig. 1). The area studied is part of the great sedimentary Sydney basin named by Osborne (1948). The first discovery of coal in Sitlt in the area was made in 1824 by Andrew Brown, although George Bass noted the presence of coal float in the Grose River in 1797. Production is recorded from the Western Coalfield in 1838 but mining was intermittent until 1868 when mines in the Lithgowvalley (producing coal from the Lithgow Seam) came into production. In 1882 the Katoomba Seam was first worked at Katoomba.The work of J. E. Carne (1903, 1908) defined the limits of the Coal Measure sediments and also contributed a great amount of valuable detailed information about the region.

Jan 1, 1960

Modelling and Optimisation of Direct Reduction of Iron Ore by Coal in a Rotary Kiln

Sep 13, 2010

By D Craw

Formation of gold-bearing veins in Otago Schist was intimately linked to the structural evolution of the schist belt. The currently-exploited Macraes gold deposit formed in a regional scale shear zone during latemetamorphic uplift of the schist belt. Further exploration for this type of deposit will be facilitated by an increased understanding of the late-metamorphic structural evolution of the schist belt. To this end, a three-dimensional cross section through the Otago Schist has been drawn using structural data gathered at outcrops in a 20 - 40 km wide transect across central Otago. This is the first continuous detailed structural section to be drawn through the belt. The section spans an area from Textural Zone 1 metagreywacke of the Torlesse terrane in the northeast through TZ 4 schist in the central region and across the Caples-Torlesse boundary to Textural Zone 3 schist of the Caples terrane in the southwest. Two different late-metamorphic structural generations are identified in this section: the long-recognised Manorburn Generation, and a new æPoolburn GenerationÆ. The location of the Caples-Torlesse boundary has been refined on this transect by field mapping combined with whole rock geochemistry.

Jan 1, 2001

A new lead refinery with a capacity of 230,000 tons per year commenced operation at Port Pirie in October, 1959. This plant superseded the refinery which had operated from 1933 with the advent of the continuous lead refining process. The incorporation of new equipment following local metallurgical developments, together with the overseas demand for lead of extremely low antimony content createddifficulties in operating the original plant. The new refinery project was undertaken to cover this disability and to gain the full advantage of the new processes.Desilverising and softening are carried out in units identical in size to those used previously. Metallic zinc is recovered from the entire output of desilverised bullion by vacuum distillation. Final refining is carried out by batch treatment with caustic soda yielding lead of purity previously unattainable at Port Pirie.These two processes replace continuous dezincing by oxidation, a high temperature process which caused large quantities of lead and antimony to be recirculated. The final stage is a batch process; therefore the product composition can be checked before casting. Individual batches can be adjusted to produce special alloys to consumer's specification.Improved casting equipment allows the quantity production of pigs of good physical characteristics either as 56 lb bars or 2000 lb pigs.This, together with the high purity of the lead, assures the Broken Hill Associated Smelters Pty. Ltd. (RH.A.S.) position in world markets.Automatic control systems are extensively employed, particularly on the vacuum dezincing unit.The anticipated financial benefits have been achieved mainly by a reduction in the tonnage of recirculated materials, a smaller labour force, and reduced maintenance requirements.INTRODUCTIONIn December 1956 a decision was made to build at Port Pirie a lead refinery on a completely new site, and in October 1959 the new refinery was brought into operation. This plant superseded the lead section of the old refinery which...

Jan 1, 1963

Five types of mineral resource were known in the sedimentary cover of the oceans and seas floors prior to the 1980s: 1. hydrocarbon fields including some very large zones of oil and gas accumulation; 2. æRed SeaÆ type thermal oozes with increased concentrations of noble metals; 3. ferromanganese nodules; 4. concentrations of metallic sulphides (æBlack SmokersÆ); and 5. cobalt-bearing ferromanganese crusts on the summits and slopes of seamounts.   Since then, the so called æWhite SmokersÆ, containing sulphides of copper and zinc, have been discovered. The ore horizons (manganese, copper, nickel and other metals) of the sedimentary cover of deep-sea basins comprise a sixth type of mineral resource in the oceans. These horizons have not only a theoretical, but also a principal economic significance.

Jan 1, 1995

By P Ridley

EnergyAustralia’s Sydney Central Business District (CBD) cable tunnel network will form a loop 6.2 km in length. The 3.2 km long, 3.5 m, diameter city east cable tunnel (CECT) currently in design, will complete the loop in 2014. This paper discusses the ventilation design of the CECT, considering operation for four functions:1. normal (unmanned),2. access (manned),3. purge, and4. emergency fire modes.The dominant design criterion which determines the required ventilation capacity for CECT is the specification of an upper air temperature limits of 35°C (dry bulb) and 24°C (wet bulb) for manned access, during all ambient weather conditions and cable heating loads. Simplistic static heat transfer analyses do not yield a sufficiently accurate calculation of tunnel air temperature and humidity to provide a safe and yet economical design. The primary refinement in the analysis discussed in this paper is associated with modelling of the system’s dynamic behaviour.Our means of analysis is through a thermo-fluid-dynamic simulation of the interactions between the diurnally and seasonally varying loads (cable heat generation, ambient air conditions and groundwater inflow), tunnel airflow and the resulting tunnel air temperature and humidity. These simulations are validated using experimental data from the existing city south and city west cable tunnels.Fire life safety scenarios are also analysed and discussed in association with the ventilation design. Ventilation strategies are developed for dealing with such emergency fire situations.The understanding and insight provided by the work offers the ability to optimise ventilation plant provisions in future cable tunnels, particularly long and high energy density tunnels.

Mar 8, 2011

Mineral exploration and mining in New Zealand has had almost five years of new legislation. The requirement for different consents is a challenging, time consuming, expensive exercise but in most cases the new procedure is working, although the matter of obtaining access to land is still a major issue. Priority is critical. After lodgment of an application for a minerals permit there are many other matters to address such as identifying land owners, occupiers and administrators, preparation of access applications, consultation and preparation of various resource consent applications.

Jan 1, 1996

Longhole open stoping was introduced in the zinc-rich 'B' lode at New Broken Hill Consolidated Limited (NBHC) during 1968. Since then one longitud- inal and a series of transverse longhole open stopes have been developed. The longholes are drilled using Gardner Denver airtrac drilling jumbos and the broken ore is loaded from drawpoints and transported to chutes using Wagner ST5 scoop- trams. The holes were drilled from sill stopes 160 ft apart. The width of an emptied transverse longhole stope was successfully widened by blasting rings of blastholes drilled parallel to the stope wall. Proposed stope and pillar designs for a series of transverse longhole open stopes were assessed using a method of finite element analysis, applied to a longitudinal section through the area. Blastholes have been surveyed for dip and bearing using an Eastman borehole survey camera. The data produced has provided the basis of a study of blast- hole deviation. Deviation of boreholes is considered to be the major cause of the formation of benches in longhole stopes.

Jan 1, 1971

CONTENTS.IntroductionAcknowledgementsDescription of MineVentilation of MineOrganisation of Fire Fighting SquadsTraining of Fire Fighting SquadsRescue WorkFire Fighting and Rescue EquipmentFire AlarmsConclusionINTRODUCTION.This paper should be read in conjunction with that by R. P. Hooper, entitled "Underground Mine Fire Prevention at the South Mine," Broken Hill. Contents of the paper have been arranged similarly for easy reference. The methods used in educating employees in the use of Proto apparatus remain basically the same, but many changes in the methods and equipment used in subjugating fires have been brought about by the practical experiences gained by officers of the company in extinguishing the outbreaks which occurred in the latter half of 1944.Three fires took place during this period, the first in July, on M.L. 11 in openings leading to timbered workings previously worked and subsequently abandoned by...

Jan 1, 1946

By D K. Weatherley, G R. Ballantyne, S Ali, M Yahyaei, M S. Powell

This paper explores development of a novel ore characterisation method for the precise measurement of practical minimum comminution energy. A monolayer of particles with a narrow size distribution is broken using a precision rolls crusher (PRC); an ore characterisation device developed to overcome the shortcomings of conventional tests. For energy measurement, PRC uses two shaftmounted rotary torque transducers. These transducers acquire precise torque and angular speed data in response to the load applied to the rotating shafts during breakage events, which is converted into energy. The test progressively crushes feed particles down to final product size in many controlled breakage stages. The generation of fines in each breakage stage is then plotted as a function of input energy. The inverse of the gradient of this plot provides the size specific energy (SSE) in kWh/t of material generated below a predefined marker size; -75 μm in this case. The PRC has potential to evolve as a geometallurgical ore characterisation test—it is simple, fast, requires small sample mass (200–300 g), covers a wide feed particle size range (10 mm to 115 µm), and provides ideal SSE measurements that can be used for the calibration of on-site production equipment.

Aug 24, 2022

By A Jewbali, J Phillips, C Boyle

Normal practice in the mining industry is the creation of a single geological model. These models provide a single interpretation of the geological and mineralisation domains. These interpretations infer the exact behaviour of ore domain contacts at shorter scales when resource definition drilling is done on wider scales and are thus locally highly uncertain. The interpreted geological model provides a single number for the volume and tonnes of mineralised material enclosed by the mineralisation envelope. It is on this single number for volume and tonnage that capital intensive mine development decisions (mine design and scheduling, stockpile strategy, waste management, closure planning, dewatering strategy, product quality, etc) are based. Some of these decisions require knowledge of grade variability for small volumes of material such as quarterly production periods. It is generally recognised that this information cannot be derived from single kriged geological models, but can potentially be modelled by conditional simulation techniques. Uncertainty in the extent and continuity of the mineralised envelope and its effect on grade variability for shorter production periods is thus recognised as a major source of uncertainty in new mine development.CITATION:Jewbali, A, Boyle, C and Phillips, J, 2013. Quantifying domain uncertainty for an iron ore deposit, in Proceedings Iron Ore 2013 , pp 157-168 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 12, 2013

There are no large rivers in Western Australia capable of supplying water for processing magnetite ores. If sea water is used there are severe corrosion issues and the requirement to wash the concentrates with potable water. If groundwater is used there is a need to treat the water and sustainability is an issue for large projects because of potential drawdown of the aquifer.If sea water is desalinated the cost of the water is high because of the power requirement. At the same time the necessity to conserve water has lead to flow sheets where all of the tailings have to be filtered to minimise the water requirement.Managing the various water qualities and optimising water recovery and quality has resulted in optimising the water balance and issues meeting environmental obligations. Reverse flotation is a critical final step in reducing the silica level in the final concentrate and requires good quality water.

Jan 1, 2009