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This paper examines some of the fundamental economics of mining - in particular, for optimisation studies, for production rate determination and for reserve estimates.It includes introductory discussion on the principles as to how economics drives mining investment decision-making, applicable to the optimising of pit shapes and production, or truck fleets, or any other part of the mine.The main part of this paper looks at the decision to start-up a mine and why the 'optimum' production rate to start-up a mine is not the point of lowest cost according to traditional discounted cash flow (DCF) analysis. The optimum production rate is usually substantially less than this rate. The paper recognises the difference between typical mining investments and investments in other industries that do not have the unique characteristics of mining and the problem of uncertainty resolution. It examines the marginal revenue effects, the marginal cost of capital and the value of a real option to expand pending uncertainty resolution as determinants of optimum initial production rates.The final part of this paper looks at applying these principles to renewable and non-renewable resources. It examines mine life and reserve estimates from an economic perspective.

Dec 6, 2010

The maximum current density at which conventional copper electrowinning plants will result in satisfactory, adherent, and dendrite·free cathodes is determined by the thickness of the diffusion boundary layer. A decrease in the value of that thickness will permit an increase in the current density. This fact is utilized to develop a high current density cell in which the reduction of the boundary layer thickness is accomplished by means of a specially designed electrolyte circulation system. The high current density cell is used to determine the effect of current density on such process parameters as current efficiency, cell voltage, power consumption, and cathode purity. A number of empirical equations are developed for the purpose of estimating the magnitude of these effects.

Jan 1, 1972

By L Teixeira, C J. Greet, P Karageorgos

Pyrite is ubiquitous within copper ores, and presents significant challenges to most operations in terms of its impact on copper sulfide concentrate grade and recovery.Samples of ore containing from 3 to 47 percent pyrite, with nominally the same chalcopyrite feed grade, were collected from a copper mine in eastern Australia for testing. The ores were ground under standard conditions using forged steel grinding media in the Magotteaux Mill® to determine the impact of increasing pyrite feed grade on the pulp chemistry of the system and subsequent rougher flotation response. Attempts were made to correlate the pulp chemical parameters (oxygen demand and EDTA extractable metal ions) with flotation behaviour to determine if one (or more) could be used as a metric to infer metallurgical behaviour.The observations made were then tested under different grinding environments (obtained using more electrochemically inert high chromium) grinding media to determine if they hold true.CITATION:Greet, C J, Karageorgos, P and Teixeira, L, 2015. The influence of pyrite on the pulp chemistry and copper flotation response of a chalcopyrite ore, in Proceedings MetPlant 2015, pp 175–187 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 7, 2015

By E Skinner, G Lane

Project delivery strategies are determined by project context, business case requirements, scale of project, market conditions, ownerÆs capability and preference, contractorÆs experience, resource and skill availability, project location and type of project or facility.Successful project management requires the setting of coherent, effective and realistic business objectives and success criteria. The management team needs to lead, prioritise, resource, align, plan, track and communicate the processes that enable the realisation of these business objectives and success criteria.For any given project there is a unique balance between selection of a simple project delivery strategy that minimises interfaces and a complex strategy that necessarily engages the use of expertise and experience from numerous parties. The right balance for a project between these "book-end cases" is a function of how the project owner or managing contractor defines its objectives and chooses to manage risk, cost, schedule and project quality, in the context of the conditions affecting the project.Selection of an effective project delivery strategy requires a detailed appreciation of the range of external and internal environmental / shaping factors which influence the project. These factors include the project constraints imposed by the business, market or operational environments and the selection of an effective mix of primary (head contract), secondary (mix of vertical and horizontal packages) and tertiary (type of individual contract) strategies. The selection of the primary, secondary and tertiary strategies also shapes the project, the size and responsibilities of the ownerÆs team and the framework for delivery of outcomes.How does an owner or prime contractor decide? What is the optimum for a given project? Those with operations management backgrounds will have different views to those with project and construction management backgrounds.Is the simplest practical approach the best approach? Each and every interface needs to be managed.The owner will want a very experienced team that is engaged directly with the owner. The team will have a track record of successfully performing projects using contractors skilled in their respective disciplines and selected using competitive tendering on brilliantly designed scopes of work and good contract terms, with a fully defined project scope and appropriate schedule, for which all significant risks have been addressed and no scope changes are outstanding. Budget and schedule will be expected to have been developed with a full understanding of the scope, situation, risk management requirements etc.The problem is that these conditions rarely exist. The challenge in selection of a project delivery strategy is to resolve how best to address the inadequacies between the ideal case and the present reality. The mechanism for addressing the inadequacies defines the likely outcome of the project.CITATION:Lane, G and Skinner, E, 2013. Project delivery, in Proceedings MetPlant 2013 , pp 50-65 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 15, 2013

After a snap-shot survey of water quality of streams draining various coal measures carried out in 2000 - 2001, West Coast Regional Council expanded its monitoring programme to better establish the condition of streams draining coal mining areas and to characterise the variability of water quality with respect to stream flow. Samples were collected for water quality indicators such as pH, sulphate, turbidity, conductivity, temperature and dissolved oxygen as well as macro-invertebrates, fish and assessments of stream habitat. Water quality sampling was carried out at 27 sites on 21 streams located from Page Stream near Seddonville in the north, to Seven Mile Creek near Dunollie in the South, and to Garvey Creek east of Reefton. There was relatively low variability of pH, conductivity and sulphate concentrations at most of the sites sampled. Conductivity and sulphate concentrations reduced with increasing flow and pH generally increased. Significant effects on macro-invertebrate and fish populations were identified at several of the sites where water quality sampling was undertaken. Of the water quality parameters tested, macro-invertebrates were mostly affected by pH. Although not sampled directly (conductivity was used as a surrogate) heavy metal concentration may explain some of the variation in macro-invertebrate communities. Three creeks affected by mine drainage were sampled for fish and no fish were present. Fish appear to be more sensitive to acid rock drainage that invertebrates. Using data from this survey and other studies conducted in the region, the total length of stream that is actually or highly likely to be adversely affected by acid rock drainage was estimated at 125 km. This figure is useful as a gauge as to the magnitude of the issue in this region and for setting of priorities for remediation. However, as it is only an estimate based on limited sampling sites, it should be used with caution.

Jan 1, 2003

The dynamic response of holdup in a continuous ball mill has a direct influence on the rate function of grinding kinetics and is useful for predicting the variation in the size distribution of the finished product with time.A model was proposed involving three interacting, completely mixed chambers and this was used to derive analytically the transfer function of the system, from which the unit impulse response and the unit step response of the holdup with feed rate were obtained.The theory was confirmed by comparing it with previously published experimental data for the residence time distribution of particles passing through a ball mill.

Jan 1, 1975

A new test coke oven of 7 cu. ft. capacity is described. The oven was designed to simulate conditions in a central section of a battery oven and a special feature is the achievement of unidirectional heating from theflues on either side of the charge.The method of charging permits close control of charge conditions such as bulk density and moisture content.These conditions, as well as coking conditions (e.g. flue temperatures and coking time) must be varied to simulate conditions in different batteries. The effects of several variables on coke quality are discussed.Using test oven conditions corresponding to those of Newcastle steelworks batteries, good agreement was obtained between strength indices of test oven and battery cokes. For 17 tests, the average ASTM stability and hardness indices for the test oven coke were 38· 5 per cent and 69·7 per cent, while those for the battery coke were 37· 4 per cent and 67·6 per cent.Observed relationships between coke yield and productivity, and volatile matter and charge moisture are given.The use of a test oven to classify test coals into prime-, medium-, poor-, and non-coking coals is discussed.This may be achieved by observing the effects of the test coal in blends with other coals. The results of a series of blending tests are presented.The dangers of attempting to predict coke quality from a single coal property are pointed out, since this can be done only for very restricted ranges of coals.A diagram is given showing the established trends in the effects of blending various types of Australian coals on coke strength.

Jan 1, 1970

By R B. Turner

The authors have studied and analysed many mineral resource and related projects in Australia. These studies have lead them to conclude that the past performance of many project developers does play a major part in any external financial investment for new or expanding resource based projects. In this paper the authors look particularly at the influence of parties outside the direct control of developers and the effect of' these parties on projects and conclude with a number of points as guidelines for potential project developers.

Jan 1, 1980

By A D. Stewart Gillies

Resource rent taxes are taxes which only become effective at such a time as a pre-determined rate of return has been achieved by an operation. Resource Rent Taxes have from time to time been considered for implementation in bothAustralia and New Zealand. The offshore petroleum industry in Australia is already subject to RRT as is the Roxby Downs (Olympic Dam) Mine in South Australia. Both the mining and petroleum taxation regimes in Papua New Guinea include a resource rent tax component called Additional Profits Tax.   The implications of the current form of additional profits tax for shareholder cash returns are that the tax burden on the operation may suddenly increase at some stage in the life of the mine if and when the threshold level of profitability for the tax to be triggered is exceeded. From that point in time onwards the cash return to the shareholders on the capital invested is greatly diminished. For mining companies in Papua New Guinea, the effective tax rate increases from 35% to 57.75% as a result of the onset of additional profits tax. This tax rate penalty is so severe that there appears to be merit in considering the concept of managing profitability through time rather than purely maximising annual pre-tax profits as is currently the case in most mining operations. This would have the benefit of deferring or perhaps preventing altogether the onset of the tax. One possible method for the effective management of profitability is through the control of average mining grade by cutoff grade manipulation.   Traditional cutoff grade theory has usually considered taxation as a direct cost at a fixed or variable percentage of annual profits. As a result of this most analyses are conducted on a pre-tax basis. If tax is included in analyses it is usually present as a time independent function of gross profit. Additional profits tax is both time, and rate of return dependent and therefore not adequately accommodated by currently accepted cutoff grade theory.   A review has been made of the effects of resource rent taxes on both the investment decision-making process as well as possible development and mining strategies which may be employed by mining companies faced with resource rent taxes. The review includes examples based on the structure of additional profits tax which is levied in Papua New Guinea.

Jan 1, 1995

The paper outlines the development of a solvent extraction process for the recovery of scandium, yttrium, thorium, and heavy lanthanides from waste sulphate liquor at the Port Pirie uranium treatment plant. A summary is given of known solvents for these elements, including the recently developed alkyl-phosphoric acid esters which are applicable to sulphate solutions.A kerosene solution of di- (2'-ethylhexyl) phosphoric acid (EHPA) has been suggested by some workers as a suitable solvent for fractionation of the lanthanides. Experimental work with this solvent showed that it could be used for initial recovery of the above elements from low concentrations in the complex sulphate liquor. In particular, scandium could be recovered as a high grade product by extraction with 0·lM EHPA, followed by a purification strip with 9N sulphuric acid, and final stripping of scandium with sodium hydroxide solution.To enable alkaline stripping to be used successfully, the kerosene solution of the reagent was modified by the addition of a small proportion of nonanol. Experimental work included laboratory scale batch tests and small pilot scale continuous tests.A proposed extension of the process for the separate recovery of individual heavy lanthanides, yttrium, and thorium is described.INTRODUCTIONAt the Port Pirie uranium treatment plant of the South Australian Government, large volumes of "barren liquor", free from 'uranium, are at present run to waste. This "barren liquor" results from sulphuric acid leaching of Radium,Hill uranium concentrate, followed by separation of solid residues and removal of uranium from the clear solution by ion exchange. The mineral davidite, from which the uranium is derived, contains other potentially valuable components, notably vanadium, chromium, thorium, yttrium, scandium, and the lanthanides. These constituents are...

Jan 1, 1961

My speech this morning is not a technical one, rather I will aim to tell you about the New Zealand Aluminium Smelters Limited and how I see it fitting into the Western World aluminium scene.

Jan 1, 1983

By J Pric, M Fulton, C Xia

A cyanidation study was conducted on a mild refractory gold ore sample from the Central zone of Clarence Stream Property, owned by Freewest Resources Canada, to develop a leaching strategy to extract gold. Gold, at a grade of 8.00 g/t, is present as native gold, electrum and aurostibite. The ore also contains 2.8 per cent pyrrhotite, together with several antimony minerals (0.8 per cent berthierite and gudmundite, 0.18 per cent native antimony and stibnite). It also exhibits weak preg-robbing properties with 0.16 per cent organic carbon. Aurostibite, a gold antimony compound, is particularly known to be insoluble in cyanide solution. The antimony dissolves in cyanide solution to form antimonates, which retards gold dissolution. Industrial practice of extracting gold from aurostibite generally consists of producing a flotation concentrate, which is leached in a pipe reactor at low alkalinity and high oxygen pressure with about 20 g/L cyanide. The proposed new approach is efficient and allows the extraction of gold directly from an ore at atmospheric pressure and a low cyanide concentration at pH 10.5. The effects of grinding, pretreatment, lead nitrate, kerosene and cyanide concentrations have been investigated. The maximum gold extraction obtained on the ore was 87.9 per cent using 800 ppm NaCN, 500 g/t lead nitrate, 30 g/t kerosene, DO 10 ppm and pH 10.5 in 168 hours. The associated cyanide consumption was 1.3 kg/t. The additions of lead nitrate and kerosene increased gold extraction. In comparison to a P80 of 74 ¦m, a P80 of 30 ¦m significantly increased gold extraction. Gold in solid solution in gudmundite and arsenopyrite was believed to be responsible for the unleached fraction until mineralogical analysis of hydroseparation concentrates of leach residues showed that most of the unleached gold occurs as aurostibite, either as locked grains in sulfides/sulfarsenides or as grains with passivation rims of an Au-Sb-O phase. Coarse gold was also found. Gold extraction was not sensitive to cyanide concentration from 250 ppm to 1200 ppm NaCN and high pH was detrimental. Decreasing the cyanide concentration reduced the cyanide consumption to 0.85 kg/t. The removal of coarse gold using a Knelson concentrator and a Mosley table prior to leaching increased the gold extraction to 90.4 per cent (leach residue at 0.77 g/t).

Jan 1, 2007

Fine Coal Evaluation by Gravity Methods

Sep 13, 2010

By Yates C, Gillie E. W, Finucane K. J

During the year 1940 a complete investigation was made of the whole of the stoping operations throughout the Great Boulder Mine and, as a result, it was decided to convert some of the existing shrinkage stopes into cut-and-fill stopes, and also to mine many of the more recently developed ore blocks by the latter method. The necessity for filling was due primarily to the structure of the ore blocks, the character of the walls and possible excessive dilution, but was influenced also by the grade of the ore-block and by the fact that cleaner mining can be carried out by cut-and-fill stoping.The comparatively few cut-and-fill stopes in operation prior to 1940 had been filled mainly with waste rock from development work, but as the amount of this material available, or likely to become available, would have been wholly inadequate for future operations, it was proposed to construct a system of passes to supply filling material from the surface.Owing to the distribution of the stopes, no central pass or system of passes could be devised which would service all the stopes satisfactorily.However, work was commenced on two passes, one designed to service the cut-and-fill stopes in the Eastern Section of the mine, and another to service those in the Western Section. It was realised that these passes could serve only a small proportion of the total number of Stopes (Figs. 1 and 2). During the progress of this work experiments were undertaken to test the possibility of using filtered tailings underground as an adjunct to the above scheme, but for various reasons these were only partially completed.Early in 1942 it was suggested by the Mill Superintendent that an attempt be made to fill with wet classified flotation tailings as practised at Mt. Lyell in Tasmania and at the Triton Mine at Reedy, West Australia. For the purpose of testing this, an experimental stope was prepared on the 309-ft. level, "X" Lode. This was 100 feet long and averaged 4 feet in width. Water-tight rearings were built at each end of the stope and waste rock fill was spread to a height of 6 to 8 feet above the timber. Used filter cloths were laid on top of the fill and brought a few feet, up the walls of the stope. A two-inch victaulic drainage line was then placed in position, the end passing through a hole in one of the bearings and thence to a sump. In the central portion of the stope two vertical pipes were brought up from this line. These were bored with one-inch holes staggered on opposite sides of the pipe, the vertical interval between each hole being one inch. The holes were then stopped with...

Jan 1, 1945

The richer, shallower sapphire deposits of the New England region of New South Wales which have been traditionally mined by the small miner are almost worked out. Larger mining and exploration companies are replacing the small miner and exploring for the primary source of sapphire or lower grade alluvial deposits.   Although in recent years considerable exploration effort has been directed at locating the primary source, commercial exploitation of sapphire is still restricted to the working of alluvial deposits.   If the Australian industry is to compete against Asian and African producers it must use cost effective exploration, mining) processing and marketing methods.

Jan 1, 1990

By F Gervilla, J Laukkanen

The Kevitsa Ni-Cu-PGE deposit in northern Finland contains disseminated Ni-Cu-Fe sulfides, and platinum-group minerals (PGM). The 2.05 Ga-old ultramafic-mafic, funnel-shaped intrusion is intruded into a volcanosedimentary sequence. The major ore minerals are pentlandite, hexagonal pyrrhotite and troilite, chalcopyrite, cubanite and magnetite. Pyrrhotite and pentlandite are replaced by pyrite, millerite and heazelwoodite near the surface. Nickeline, maucherite and gersdorffite are locally abundant. A pilot feed sample of 575 t of the main orebody at Kevitsa had average grades 0.45 per cent Cu, 0.36 per cent Ni, 1.85 per cent S, 0.33 g/t Pt, 0.34 g/t Pd and 0.19 g/t Au, with 0.06 per cent Ni contained in silicates. Higher PGE contents (2 - 27 ppm) occur in a vertical N-S bearing fault zone. The PGM (n = 6022) mapped in specimens of four drill holes, consist of sperrylite 34.7 vol per cent, braggite and cooperite 18.5 vol per cent, geversite 17.2 vol per cent, moncheite 14.7 vol per cent, merenskyite 6.7 vol per cent, stibiopalladinite 4.3 vol per cent, sobolevskite 1.9 vol per cent, kotulskite 0.7 vol per cent, michenerite 0.6 vol per cent, keithconnite 0.3 vol per cent, rustenburgite 0.1 vol per cent, melonite, froodite, laurite together 0.1 vol per cent and only a few grains of sudburyite, irarsite, vysotskite, erlichmanite, hongishiite, Pt-Cu-alloys, three undefined Pd and Pt bismuthinides and antimonides and a Pd-Cu-bearing Pt-Ni-Fe sulfide. Most of the PGM, 62 per cent, are enclosed in silicates, 29 per cent are intergrown with sulfides, nine per cent are within sulfides. A portion of the PGE occurs in solid solution in sulfides and arsenides. Ni flotation yielded smelter-grade concentrates averaging 12.2 per cent nickel. The average sulfide Ni recovery is 78.8 per cent and total Ni recovery is 65.3 per cent. The average Pt is 10 g/t at 55 per cent recovery, Pd 7.7 g/t at 38 per cent recovery and Au 1.6 g/t at ten per cent recovery. Cu concentrates averaged 28.6 per cent Cu with an average recovery of 78 per cent and further 11 per cent in the nickel concentrate. The copper concentrate contains 4 g/t Au at 24 per cent recovery. The average Fe to MgO ratio 17.9 is well above the targeted minimum of 4.5. The pilot results show that the previously used TETA (triethylene tetramine) can be avoided and good quality, smelter-grade concentrates can be produced from the Kevitsa ore at economical levels of recovery by conventional flotation methods.

Jan 1, 2008

The Department of Mineral Resources has a statutory responsibility for mine site environmental management and control in New South Wales. The Department is focusing on an environmental management systems (EMS) approach, as a management tool to achieve æbest practiceÆ outcomes both within our own organisation and on mine sites. One of the DepartmentÆs tools is environmental risk assessment and management which incorporates the Mining, Rehabilitation and Environmental Management Process (MREMP). The MREMP was introduced many years ago in order to integrate the activities of key stakeholders who may have a material interest in the mine. The MREMP provides an ideal mechanism by which ædue diligenceÆ requirements and environmental management programs can be integrated into mining operations and lead to a sustainable post-mining land use.

Jan 1, 2002

Same-batch and non-blind as well as blind pulp duplicates are often submitted as quality assurance/quality control (QA/QC) control samples to a routine laboratory along with routine assays (and other control samples such as reference material samples). The current ways of interpreting the results of duplicate assays to derive QA/QC conclusions and decisions, however, has not yet been formalised in a scientific manner. The current, prevailing approach and its limitations are reviewed and a new method is proposed as a substitute tool. This new tool should allow for operational error detection on a batch per batch basis (ie batch rejection) as well as laboratory performance assessment with time on reproducibility.

Jan 1, 2008

MR. W. E. WAINWRIGHT occupied the chair, and in introducing the lecturer said, on account of the absence of the vice-president, it fell to his lot to introduce the lecturer. Mr. Tennberg, he said, was visiting Australia, and those present might wonder who he was.He understood that the lecturer w~s a reputable practising geophysicist, associated with a reputable company! It was rather desirable perhaps to say that the Institute had made some inquiries with regard to his status. Geophysics was a comparatively newscience, and had suffered several hard knocks in Australia and elsewhere. Most of those knocks had been the result of undue optimism of a number of people who did not understand what they were talking about. It had been claimed that geophysics was a...

Jan 1, 1930

For small particles of niekel flotation eoncentrate (av. size 50 pm) the predominant heat transfer mechanism under suspension smelting conditions, prior to ignition, is conduction from the gas and not radiation from nearby hot bodies. Results of laboratory tests using gas temperatures 380-700°C and furnace wall temperatures 380-1100°C were in accord with heat transfer theory. In practieal flash smelters earlier ignition, and hence better utilization of the space in the shaft, would result from introduetion at the top of the shaft of gases hotter than the ignition temperature of 500-600°C.

Jan 1, 1979