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By S Shafiee, N Abbate

The evaluation of mining projects requires a methodology that will give flexibility and manage the existing uncertainty within the projects. The discount cash flow (DCF) and other traditional evaluation approaches, which are widely used in evaluating a significant number of mining projects, have simply assumed that the main variables remain constant in their evaluation; elements such as discounted rate, mine life, operating cost and production rate. The DCF ignores managementÆs flexibility to adapt and reforecast and revise decisions. Real options valuation (ROV) is one of the modern evaluation methodologies that provide a tool to adapt and revise mining projects under uncertainty and future variables movements. ROV brings more variables into the evaluation model compared to DCF and assumes them as uncertain and dependent. Finally, ROV provides a range of solutions that can assist in managing this flexibility.This paper endeavours to compare ROV and DCF for mining projects comprehensively and applies these two techniques in the model. The paper shows that ROV will be inclusive of extra value in mining projects due to variables not allowed for, or even ignored, when the DCF model alone is used. One of the significant advantages of the ROV method is being able to evaluate mining projects under different scenarios from the inception of the projects. Furthermore, ROV gives the ability to evaluate the mining project while allowing for abandonment, temporary suspension, or expanding the mining project. In other words, the ROV evaluation process creates an analytical environment, which allows for optimisation of the mining plan within the mining project, as well as the ability to change the capital structure dependant on existing circumstances over the life of the project. The ROV is a new evaluation method that can add value in mining project analysis and offers opportunities to amplify gains, or to mitigate losses. This paper also discusses some of the reluctance to use ROV instead of DCF in current project evaluation.CITATION:Shafiee, S and Abbate, N, 2012. Now, this is the time for mining companies to choose - Real option valuation or discount cash flow, in Proceedings Project Evaluation 2012 , pp 225-234 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

By P Williams

The Sunrise deposit is one of AustraliaÆs largest and most profitable gold deposits. It has consistently and spectacularly outperformed every resource model created. Currently over the life of the Sunrise pit there has been a 50 per cent under estimation of ounces mined. Without a solid basis for predicting the tonnes and grade or the spatial location of mineralisation, mine planning becomes problematic. Recently, through a better understanding of the mineralising processes the reconciliation of the resource model has improved to be in the order of ten per cent under on ounces mined. This paper will describe how the mine geologists at Placer Granny Smith have implemented the changes required to improve the resource model. Work began with the development of a three-dimensional lithological and structural model based on historical drilling and pit mapping. Continual updating of the geological model with grade control logging, assays and in pit face mapping, now allows for the on-going improvement of the resource model and the planning of mine development drilling.

Jan 1, 2000

The Golden Cross mine is a Joint Venture between Coeur Gold New Zealand Limited, as Manager, and Viking Mining Limited. The mine is targeting Zero Lost Time Accidents as a goal.   The Golden Cross operation produces gold and silver from both underground and open pit. The mine is based on an epithermal gold-silver deposit. Treatment of ore is on a campaign basis for each ore type (i.e. underground or open pit). Milling is conventional SAG Mill and Ball Mill grinding circuit followed by carbon in pulp recovery of gold and silver. All tailing materials are treated through the Cyanisorb process to reduce cyanide levels prior to being discharged into the tailings dam.

Jan 1, 1995

By R Belissont, C Veloso, L Senez, F Vasconcelos, E Kleiderer, J Mesquita, Y Basselin

Mont-Wright mining complex is an important asset of ArcelorMittal located in the province of Quebec, Canada. It is composed by Mont-Wright and Fire Lake mines, operating 365 days per annum, and producing 25 Mtpa of iron ore concentrate with 66 per cent Fe. Mont-Wright concentration plant is composed by seven lines with a flow sheet encompassing AG/SAG milling, primary and secondary classification stages, spiral concentrators (rougher, cleaner and recleaner stages) and dewatering unit operations. In this context, an equation called ‘Wrec’ was developed in 1971 with the objective of estimating the mass recovery of the different blocks in the beneficiation plant and support the mining planning works of Mont-Wright complex. This equation was based on the correlation between the results of heavy liquid tests performed with drill core samples and spiral concentrators pilot scale tests, returning an estimative of concentrator yield. However, since its first development, no updates have been done in the equation, which lead to some deviations from expected recoveries in the last years. This is probably due to the changes in the process and in the ore fed into the concentrator during the period. In this way, the study presented here corresponds to the execution of heavy liquid/spirals pilot scale tests with 26 composite samples collected at Mont-Wright deposit aiming at revising and updating ‘Wrec’ equation. Based on test work results, an updated formula was established to estimate the plant recovery and a comparison performed using industrial data showed that the old formula overestimated the real yield by 5.40 per cent, on average. At the end of the study the new equation was incorporated into the mining planning process.

Sep 18, 2023

Performance trials followed the commissioning of three large mine fans at Mount Isa in 1965. Actual performance characteristics were determined. These were in good agreement with predicted performance. Piezometer rings for volume flow and pressure measurement were calibrated, and the performance of some aerodynamic components of the installation was studied.Test equipment, preparation, and conditions are described.

Jan 1, 1967

By D Hillier, A Giblett, K Parker, V Ramsell

Kalgoorlie Consolidation Gold Mines (KCGM) operates the Kalgoorlie Super Pit open cut, Mt Charlotte underground mine, Fimiston process plant and Gidji Roaster facility for joint venture partners Newmont Mining Corporation and Barrick Gold. In 2004, the Fimiston plant was upgraded by the addition of gravity concentration to the Fimiston and Mt Charlotte grinding circuits, including the installation of a central intensive cyanidation reactor to process the gravity concentrates. The gravity project was justified after detailed analysis demonstrating an expected increase in overall gold recovery of approximately one per cent, in addition to reduced elution costs and reduced gold inventory in flotation concentrate stockpiles. The gravity circuits were commissioned in August 2004, and have since consistently recovered 10 to 20 per cent of the gold present in the KCGM ore, delivering a reduction in coarse gold losses equivalent to 0.45 per cent additional metal recovery and contributing to improved metal accountability.CITATION:Giblett, A, Hillier, D, Parker, K and Ramsell, V, 2012. The impact of gravity gold recovery at Kalgoorlie Consolidated Gold Mines, in Proceedings 11th AusIMM Mill OperatorsÆ Conference, pp 199-206 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 29, 2012

By A Tawadrous, D S. Preece

Cave mining is of interest to the mining community as it offers a chance to extract large, deep orebodies with low operating costs and high production rates. It allows for extracting large low-grade orebodies, which may not have previously been considered for mining. Cave mining is done either top down (ie sublevel caving) or bottom up (ie block/panel caving). Both approaches rely on gravity, stresses and weakness of the rock to fracture and achieve a controlled collapse.Block caving starts at the base of the orebody. It progresses upward and across through continuous collapse of the roof. To achieve this, a critical hydraulic radius must be exceeded. This is accomplished by blasting drawbells, through which the caved ore passes to the production level. An entire level above the drawbells (undercut level) is excavated to help initiate the cave. The undercut level ensures the connection between drawbells and achievement of the required hydraulic radius.Conventionally, drawbells are generated by drilling and blasting several times from the production level as well as the undercut level. Mucking between each shot is required to generate enough void space for the rock to swell. The need for several blasts necessitates some downtime between each blast. Also, the cost of developing and maintaining the undercut level can constitute up to 35 per cent of the cost of mining the panel.A new blasting technique was developed to create the drawbells in a single blast from the production level. The technique ensures the connection of the drawbell to the neighbouring ones, thus, the critical hydraulic radius is reached and propagation of the cave achieved without the need for the undercut level. The technique has the potential to reduce the capital cost of a block caving operation, increase its feasibility and reduce time to reach the ore and consequently the payback period. This paper presents the modelling of a traditional drawbell excavation process, the philosophy of the developed technique, the modelling of that new design and its implementation.CITATION:Tawadrous, A and Preece, D S, 2015. A novel blasting technique to create drawbells and eliminate the undercut level in block cave mining, in Proceedings 11th International Symposium on Rock Fragmentation by Blasting, pp 617–624 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 24, 2015

In the Ora Banda area of the Eastern Gold- fields, the ultramafic rocks tend to be more deeply lateritized than most of the surrounding rock types, and lateritic nickel concentrations have been formed. Extensive drilling_has shown that, of the two intermixed suites be- neath the laterite - an extrusive peridotite- pyroxenite suite and an intrusive, highly magnetic dunite - the latter weathers to a more nickel enriched laterite. The top horizon I of the laterite consists of ferricrete. Horizon II consists mainly of bands of secondary silica in a clay matrix, formed in the reworking zone around the water table and stranded as the weathering profile migrated downwards. Horizon III ('ºaprolite") is composed of serpentinite, magnesite, iron oxides and silica, and grades dowil to the fresh bock composed variously of olivine, ser- pentine, talc, amphibole-chlorite and iron oxides. The main locus of nickel deposition is the zone containing the bottom of horizon II and the top of horizon III. The water table is also at this general level. .

Jan 1, 1973

By S J. Kim, S W. Kim, L Tomas da Rocha, S Jung

Al2O3 has been regarded as a harmful gangue component in iron ore, especially causing reduction degradation in industrial sintering of iron ore. The current study aimed to utilise low-grade iron ore containing high Al2O3 content in sintering process. In order to counteract the adverse effect of Al2O3 on reduction behaviour of iron ore sinter, mill-scale and calcined dolomite were chosen as FeO- and MgO-bearing materials. Firstly, mill-scale was added to high Al2O3 sinter and addition was optimised as 10 wt per cent, then calcined dolomite was added further. Magnetite and magnesio-ferrite were identified as the major phases in iron ore sinter when adding mill-scale and calcined dolomite. As the dosage of calcined dolomite increased beyond 4 wt per cent of in sinter mix, unreacted MgO particles were observed, which is ascribed to the limitation of MgO dissolution into magnetite matrix. Both mill-scale and calcined dolomite were effective in improving compressive load and Reduction Disintegration Index (RDI) of iron ore sinter although its reduction degree was highly decreased. The addition of both FeO and MgO-bearing materials to high Al2O3 sinter has a potential to improve the sinter quality, also contribute to the recycling of industrial by-product. However, the amount should be optimised in views of phase development and deterioration of reducibility.

Jun 19, 2024

By J Canterford

There is an apparent push to develop and commercialise "new and innovative" process flow sheets. A not-too-difficult reality check clearly demonstrates that the success rate of this push is not particularly significant and in fact could be regarded as a waste or misappropriation of R&D funding and the associated brain power. As Julian Sumner Miller would comment "why is this so?" To put it bluntly, many of the so-called innovative developments are equivalent to gold plating the dunny door - visually interesting but of very limited practical value. This presentation encapsulates some personal lessons learnt over the past 45 years.CITATION:Canterford, J, 2013. Developing a ænew and innovativeÆ process flow sheet - Traps for all players of all ages, in Proceedings MetPlant 2013 , pp 1-5 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 15, 2013

By Schaap W

A test on Taylor's rule of mine life using published data on open pit porphyry copper mines confirmed that mine life is, on average proportional to the fourth root of reserve tonnage. Deviations from this rule-of-thumb occur to a large extent as variations between regions that are qualitatively explained in terms of differences in grade, infrastructural needs or special taxation effects.

Jan 1, 1984

In the course of an investigation of the influence of bismuth on copper carried out some years ago, (1) the author found that phosphorus exerted a beneficial effect on bismuth-copper alloys of low bismuth and oxygen content by neutralizing the embrittling effect of the bismuth. In the intervening years, a further examination of bismuth-phosphorus-copper alloys has been canied out and the influence of other elements and combinations of elements on copper containing bismuth has been studied.The results recorded in the present paper are part of this investigation.MATERIALSAll the alloys were made from high-grade copper (KS.A. wire-bar) of the following composition: copper 99·95%, oxygen 0,040'%, iron 0·0015%, sulphur less than 0-001%, bismuth less than (j>'OOl%, other elements each less than O· 0010/<-. The bar was hot rolled and cold drawn to strip which was cut into short lengths and cleaned in nitric acid ready for melting.A piece of this 'strip was drawn to wire 0·08 in. diam., annealed at 5000 C, and measured for electrical conductivity as a check on purity. The result was 101·5% of the I.E'.C. standard.In making the alloys, phosphorus was added as 14% phosphor-copper, bismuth as 17% bismuth-copper, and the other constituents either as copper alloys or as elements of a high degree of purity.PREPARATIQN OF STRIPSThe charges were melted in plumbago crucibles (Morgan salamander brand) in an oil-fired furnace, Le;, in the manner commonly adopted in industrial practice. The copper was first melted under charcoal, well stirred with a chaned stick, and the necessary alloying elements added and stirred in with the stick. The weight of a charge varied according to requirements but generally was about 4 lb. The charges were poured into slightly tapered brass moulds heated to about 1000 C and dressed with a mixture of mineral oil and tallow. They were not only poured under charcoal through the burning mould dressing but also- through a ring of flame produced by burning kerosene on asbestos cord wrapped round the top of the mould. Experiments carried out with plain copper proved that by this means oxygen could be excluded from the stream of metal. The billets were 7·5 in. long x O·83 in. diam. x 1·3 lb. weight.The billets were cropped about 1 in. from the top, cleaned in nitric acid, and measured for density by the usual method of weighing in air and -in water. As these measurements were required only as a check on casting, technique a high degree of accuracy was not essential (accuracy = -+ 0·2%).

Jan 1, 1942

By C N. Hatton, K Ward

Tailings operations are inherently reactive as operations personnel continuously contend with a concentrator reject feed (tailings) transient in physical and engineering properties, which places a constant constraint on capital and operational spending. It requires a unique skill set to manage the prescribed distribution of tailings under unenviable conditions. Enter the tailings operator, an oftenundervalued commodity and untapped resource that can provide benefits beyond the rigors of dayto- day operational support. Experience consistently demonstrates that skilled and committed operators can serve a vital function in the safe construction of a tailings storage facility. It takes a village to raise a tailings dam. An important part of this process is establishing a culture of operational accountability and ownership. Operator development training is nothing new. However, we find that many of the intrinsic operator skills are left unexploited, and an operator's experiential knowledge base and creativity are commonly overlooked and underutilized. With proper training and guidance, these skills can be harnessed, contributing to safe dam operations. Operator engagement, when properly facilitated, provides tangible benefits ranging from improved tailings engineering properties to reduced closure costs. One important benefit is helping transitioning tailings management from reactive to proactive. There are many processes involved in the reactive to proactive transition process. One element of that process includes engaging operators in the tailings management process and facilitating legacy ownership. The core of operational legacy ownership is measured and described using five-stage operator engagement rubrics. Levels of operator engagement are presented with a description of the incremental benefits of each stage. An important part of legacy engagement is providing the tools to operators necessary for managing the tailings. Therefore, the approach identifies specific methods used by operations personnel to control tailings distribution and in-place properties. The end goal of leveraging operator engagement is to facilitate committed ownership and transition tailings management from an inefficient, reactive process to an improved, cost-effective, proactive practice.

Jul 1, 2021

By A Jakowetz

OxianaÆs Sepon Copper Operation (part of the combined Sepon Gold and Copper Operation) is located in Savannaket Province, in southern central Lao PDR. The site is relatively remote, being some five hours inland from the Laos/Thailand border crossing on the Mekong River. The copper processing plant was designed to treat 1.3 Mtpa ROM ore to produce 60 000 tpa of copper cathode. Commissioning of the processing plant was completed in mid March 2005 with ramp up completed in January 2006 with 5260 tonnes of cathode harvested in this month. The focus of this paper is on SeponÆs unique grinding circuit. The entire grinding circuit is operated at highly acidic conditions, adding a number of different operational issues over and above those normally associated with grinding circuits. It became evident early in the ramp up, that reaching design mill throughput of 170 dry tonnes per hour with the original design would be challenging, coupled with the realisation that ceramic grinding media consumption had been underestimated. In order to lift the overall throughput of the processing plant, a significant continuous improvement process has been implemented within the grinding circuit to lift this key unitÆs production capacity. This presentation will focus on the key areas that have been addressed in the 12 month ramp up period and highlight areas for future work. Results to date have shown this improvement process to be very successful, with throughput rates in excess of 200 tph regularly achieved.

Jan 1, 2006

By H Ishikawa, S Palaniandy

The gravity-induced stirred mill such as the TowerMill is an energy-efficient grinding solution used in secondary, tertiary, and regrinding duties in the mineral processing concentrator. The interest in this technology is emerging, with more than 300 mills installed globally in various grinding duties and commodities for the last 30 years. Although the technology is matured, there are still opportunities for improvement and the development of new knowledge to improve its circuit energy efficiency and reduce water consumption. Recent studies show that a combination of stress intensity, ore hardness, slurry density, and mill feed configuration can be used to evaluate the performance of the grinding circuit. A recent pilot-scale TowerMill test work at various stress intensities shows that a lower operating work index and size-specific energy were achieved at higher agitator tip speed and using medium size grinding media. These outcomes were confirmed through several site trials. A smaller 17 mm grinding media has reduced the operating work index and size-specific energy by 18 per cent and 11 per cent, respectively, compared to the 20 mm in a magnetite concentrator. Moreover, the conversion from top feed to bottom feed configuration has reduced the operating work index and size-specific energy by 13 per cent and 37 per cent, respectively. The circulating load was reduced by 34–38 per cent, leading to a reduction in the dilution water consumption in the hydrocyclone feed sump by 20 per cent. A variable frequency drive offers flexibility to change the stress intensities on the TowerMill, where a 35 per cent reduction in specific energy was achieved when the ore became soft. This paper explores the potential design and operating strategies that can be implemented to enhance the energy efficiency, reduce water consumption and reduce CO2 emissions in the circuit and finally evaluate its impact on the total cost of ownership.

Aug 24, 2022

In undertaking to write a few notes on practical mining in Bendigo, the great quartz mining centre of Victoria, which just now is celebrating its fiftieth anniversary of gold mining, satisfaction must be expressed which is, no doubt, shared by all mining men and inyestors, that Bendigo has not lagged behind other Australian mining districts in the evolution of mining from its crude state, subsequent to the discovery of gold in 185 to its present more perfect state; and though it may be said that it has not yet reached the high pinnacle of perfection towards which advanced science and change of conditions may yet lead it in the course of future progress, yet, what has already been done in this respect, the adoption of the most approved methods appliances and modern machinery, tending towards greater and still greater efficiency, facility, and economy in our mining industry, must be accepted as a guarantee that in tne future as well as in the past, progress in our means of developing our mining resources will ever remain our watchword, by means of which future difficulties will be overcome as well as they have been removed in the past.The adoption of this principal, combined with a study of rigid economy, has raised gold mining here, as well as in other places, from a state of speculation, and sometimes wild speculation, to the status of a solid, stable industry, the strong supportand backbone of the country in which it flourishes. Two of the principal factors which have been to a great extent instrumental in bringing about this satisfactory state, must be specially mentioned.

Jan 1, 1902

By G Balog, T Ormerod, D Cox

This paper discusses the methods utilised by the technical team to identify and quantify the SLC risk factors, the modifications to mine design and scheduling, and the changes to the planned risk management practices. The paper also describes the future work currently planned by the OZ Minerals technical team to quantify the various risk factors in terms of space, time and magnitude. This may better inform the future mining practices within not only the Carrapateena province but also the wider Gawler Craton.

Mar 15, 2021

By J A. Wells, K G. Thomas, R F. Dewhirst

"One of the contributing factors to the extreme cost escalation in the first decade of the 21st century was the increase in the amount and cost of engineering work that went into studies and projects. Various reasons for this were identified, including unsatisfactory productivity due to a shortage of experienced/qualified engineers, the increased complexity and infrastructure requirements of many projects due to location, metallurgy that is more challenging and increasing environmental and social requirements. These conditions often led to unsatisfactory project results in terms of cost and schedule blowouts and created a loss of confidence – both internally and externally – in the industry’s ability to complete projects on time and on budget.Technical fundamentals aside, the experience and effectiveness of project teams has had, and continues to have, a major impact on project cost, schedule and ramp-up to nameplate capacity and operating parameters. There are unfortunately too many examples of where project teams have not been as effective as they could or should have been, all to the ultimate detriment of the project.Using the authors’ extensive experience on both owner’s and engineer’s teams, this paper discusses some of the main reasons for suboptimal team, and hence project, performance and offers thoughts on how best to build and maintain project teams. The analysis and conclusions drawn are built around the Tuckman model of group development known as ‘forming-storming-norming-performing’, which was first proposed some 50 years ago. Given the importance of good teamwork to project success, understanding how project teams grow and become efficient and productive is an essential part of good project management that should receive more attention.CITATION:Dewhirst, R F, Thomas, K G and Wells, J A, 2016. Building and maintaining effective project teams, in Proceedings Project Evaluation 2016, pp 38–48 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By J D. St George

In this paper a laboratory investigation into the effect of confining stress, water content and gas desorption on coal permeability is presented. Of major significance is the effect of coal permeability on outburst occurrence and methane production, which is influenced by changes in stress. Test results indicated that the shrinkage of the coal matrix associated with desorption is greater than the coal matrix compressibility which will cause a reduction in the effective stress, hence increasing coal permeability.

Jan 1, 1998

By A L. Stewart, M Baatar

"An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation.The Middle Palaeozoic Gurvansaikhan Belt (Southern Mongolia) of the Central Asian Orogenic Belt is one of Central Asia’s most significant emerging porphyry copper provinces. The belt has become the focus of extensive exploration for porphyry copper-gold deposits over the last decade following the discovery of the giant Oyu Tolgoi porphyry copper-gold deposit. The Gurvansaikhan Belt is known to host porphyry deposits of Late Devonian (~370 Ma) and Early Carboniferous (~320 Ma) age. The characteristics of Early Carboniferous porphyry systems are poorly known compared to their older counterparts, despite their probable abundance and potential economic significance. Exploration within the Kharmagtai porphyry breccia complex has identified multiple cogenetic gold-copper-porphyry centres and late-stage mineralised magmatic-hydrothermal tourmaline breccias emplacement within a composite high-K calc-alkaline quartz monzodiorite intrusive complex. Early porphyry alteration and mineralisation at Kharmagtai are zoned around vertically attenuated early- and inter-mineral quartz monzodiorite dykes and stocks and comprises a complex sequence of calc-potassic, potassic and propylitic assemblages. Hematite dusting is a common alteration product that gives intrusions and the host rocks a distinctive pink-orange colour. Several of the systems have bornite-rich cores, where mineralisation is characterised by high gold grades (0.7 to >5 g/t Au) that zone outward to chalcopyrite-rich and then outer pyritic halos. Early stockwork mineralisation is overprinted by magmatic-hydrothermal tourmaline breccias. High-grade magmatic-hydrothermal tourmaline breccias form part of a major copper-gold mineralised breccia system with significant exploration potential. The Early Carboniferous porphyry copper-gold systems of the Gurvansaikhan Belt represent a substantial exploration challenge in an area of increasing exploration maturity. This paper summarises the characteristics of the Kharmagtai porphyry system that have helped to define the Early Carboniferous porphyry province of the Gurvansaikhan Belt and discusses implications for future exploration.CITATION:Stewart, A L and Baatar, M, 2015. The Kharmagtai porphyry breccia complex – characteristics of early Carboniferous porphyry mineralisation in the Gurvansaikhan Belt, Southern Mongolia, in Proceedings PACRIM 2015 Congress, pp 383–388 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 18, 2015