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This paper focuses on the significant impact that geological information has in relation to the valuation, both equity market and accounting records, of mining companies. There are many different measures adopted by investors and analysts in valuing mining companies. In particular, focus is primarily on calculation of profit as it is the authors primary expertise. The importance of geological information to the calculation of profit (and to many other measures of a mining company performance) is not always understood by the geologist. The aim of this paper is to raise the awareness of geologists (particularly those who are competent persons under the JORC code) of the impact that reserve statements û and changes to û have on profits. This is the first time that this subject has been presented directly to geologists. Similar versions of this paper have been presented at other forums where other important users (directors, auditors, accountants, analysts, investors) or preparers of financial statements have been made aware of the importance of the geological information. In essence, all mining companies prepare annual financial statements, which are adopted by directors and audited. The major items that require judgement generally revolve around two areas û commodity price outlook and the accuracy of reserves and resources. Reserves and resources are important, and that there is undoubtedly a lack of understanding about the assumptions and accuracy of reserves and resources by accountants, directors and auditors, and a general lack of understanding by geologists as to how the information that they prepare is used. Across the globe the majority of mining companies are listed on stock exchanges (with the main exception being nationally controlled mining companies û eg Codelco). In a very simplistic manner, I have divided all mining companies into three types: exploration plays û these companies are still in the finding or proving modeÆ and typically the stock market and investors rely on geological information and remaining cash in determining their assessment of the company; single mine companies û the major items that investors and the stock market look for are reserves, inferred resources, commodity price outlook and discounted cashflow calculations; and multiple mine companies û the investment community and stock market are looking at reserves, inferred resources (generally to a lesser extent at this stage), commodity price outlook, discounted cashflow calculations and profit and loss accounts. Regardless of the type of company, the equity markets, including analysts, try to determine appropriate valuations for mining companies. In doing this the major two areas that require judgemental consideration are the commodity price outlook and the level of reserves and resources. Generally speaking, most mining companies have a strong understanding of their cost structures û in particular their cash costs as distinct from their accounting costs of production û and therefore this area generally gets less consideration than the other two matters mentioned above.

Jan 1, 2003

By B Maybee, L Fava, D Millar

In the context of a case study for an underground gold mine, the value generated by a schedule optimisation tool (SOT) is assessed. SOT is a software tool for underground mine planning that maximises the net present value (NPV) of a development and production schedule. A baseline study measures the NPV of a schedule generated by SOT from a sequence prepared by the site mine planners. Operational resource constraints and precedence constraints are adhered to by the schedule and NPV is evaluated with a financial model including revenues, costs and discount rate, as specified by the mine planner.The case study has several facets in addition to the baselining component. Scenarios were conducted that examined the degree of constraint on operational resources, the projected gold price and unit costs. Life-of-mine schedules subject to optimisation using SOT allowed for equitable comparisons.Haulage was identified as a dominant constraint for the mine. It was one of six operational resources that were used to constrain the optimisation of the mine schedule, with alternative levels for some of these constraints being identified so that their effects on the NPV could be studied. Alternative price projections for gold and different cost projections were identified and their effects on the optimised schedule examined. Price and cost scenarios that brought additional economic material into the schedule at various times in the mine life were considered in comparison to a scenario that assumed no additional economic material would become available.This case study illustrated that the use of a schedule optimisation tool to optimise mine schedules provides mine planners with an ability to perform a wide variety of analyses in a relatively short period of time. Such tools thereby support strategic decision-making that can add significant value to an orebody.The case study demonstrates that by fixing the set of development and production activities to be carried out before optimising the life-of-mine schedule, the mine planners can inadvertently set up a situation where the NPV would be progressively eroded in the last several years of the mine life. This clearly illustrates the need for schedule optimisation to be integrated with life-of-mine planning.CITATION:Fava, L, Maybee, B and Millar, D, 2012. Decision support for an underground gold mining operation - A case study using the schedule optimisation tool, in Proceedings Project Evaluation 2012 , pp 41-48 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

By A Mortazavi, M Akhmedya

Mining is recognised as being one of the most dangerous industries in the world due to the difficult working conditions. Working in such hazardous circumstances in an underground mine often results in a variety of accidents. The working conditions at Kazakhstan’s underground mines have deteriorated owing to a lack of a risk-reduction plan and methodology. This paper evaluates different underground mines in Kazakhstan and demonstrates the employed mining method and the observed failure modes. Risk assessment has long been recognised as a valuable technique for preventing accidents. In the underground mining sector, risk assessment tools play an important role in avoiding work-related accidents. However, geotechnical uncertainty is a significant source of severe incidents like stress-induced roof collapse, wedge failure, seismicity etc, which result in human and financial losses. A geotechnical risk assessment performed early in the mine design process might assist justify a different mine design component, such as different support systems for a dangerous location within the mine openings during mining. The goal of this research is to create a damage/failure database aiming at the development of a geomechanical risk assessment methodology. This work identifies a thematic structure linked to risk assessment and management for the examined Kazakhstan mining sector. As part of the developed database, the dominant modes of failure within the Kazakhstan underground mining conditions were investigated. The study will provide opportunities to establish future research objectives for Kazakhstan’s mining industry where there are significant gaps between state-of-the-art research and mining operations in practice.

Nov 29, 2022

By CorrOa de Araujo A, Salum MJG

The treatment of mining and metallurgical liquid effluents is becoming, everyday, a necessity felt by these industries. Physical-chemical and chemical methods for treating such effluents are generally necessary whenever heavy-metals and other toxic compounds such as cyanide are present. The present paper discusses the use of precipitate flotation as an alternative physical- chemical method that can be applied for the treatment of effluents containing heavy-metals (mainly zinc and cadmium) and cyanide. Examples of laboratorial scale applications on real effluents are given. In both cases precipitate flotation was able to reduce the concentration of toxic components of the effluents at a very high removal rate, generating a solid waste that can either be disposed, re-used or recycled. A cationic collector - dodecylamine hydrochloride - demonstrated to be the best choice of surfactant for the two systems investigated. Sodium sulphide and dithizone were selected for the precipitation of the zinc bearing effluent whereas a copper salt was preferentially used for precipitating cyanide in a form adequate for its recycling envisaging the use of an AVR (acidification - volatilisation - regeneration) technique.

Jan 1, 1993

By D Duan

In this study, aimed at two kinds of ore (lump ore and iron ore fines) and four types of Australian iron ore resources (haematite iron ore, Mara Mamba iron ore, limonite iron ore, and mixed iron ore, such as Newman, MAC, Yandi and Pilbara iron ore), the physical and chemical properties and high-temperature properties were investigated in detail, to master their behaviour and effects in sintering, blast furnace, and non-blast furnace processes. Then, according to the individual properties of Australian iron ores, Chinese domestic iron ores and Brazilian iron ores, etc, the optimisation of ore-proportioning for sintering, blast furnace, and non-blast furnace processes was studied based on the interaction of the individual iron ores and their complementary properties, and the corresponding tests were carried out. The test work results indicated that this method not only improved the technical and economic indexes of sintering, blast furnace, and non-blast furnace processes, but also increased the addition of Australian iron ore. All of these provide the theoretical basis and technical support for highly effective use of Australian iron ore resources in iron and steel enterprises in China.

Jul 11, 2011

The Myra Falls minesite, of Westmin Resources Limited, is located at the geographic centre of Vancouver Island, within the confines of Strathcona Provincial Park. The operation includes two active underground mines, II-W and Lynx, together with a modem 3650 1/d milling facility. Recent exploration successes will lead to the commissioning of a third mining area in late-1993 - The Battle/Gap Mine. These ore deposits are complexly metal-zoned volcanogenic massive sulphides of Devonian age, hosted in the Myra Formation of the Sicker Group volcanic assemblage. Three distinct felsic volcanic units are defined within the 450 metre thick Myra Formation. They are, from oldest to youngest, the H-W Horizon, the LMP Horizon and the Upper Rhyolite Unit. Massive sulphide mineralisation occurs throughout the property in the H-W and LMP Horizons. There are a number of orebody types, including polymetallic massive sulphides, polymetallic disseminated sulphides, zoned pyritic massive sulphides, elastic sulphide zones and stringer sulphide zones. Individual orebodies range in size from 10 000 tonne zinc-rich polymetallic lenses to the ten million tonne, zoned massive sulphide H-W main lens. The property has been in continuous operation for 26 years, producing over 13 Mt of ore averaging 2.2 g/t Au, 64.0 g/t Ag, 1.9 per cent Cu, 0.6 per cent Pb, and 5.6 per cent Zn. Current geological reserves stand at 12.5 Mt at a comparable grade, including 4 Mt of recently discovered high grade ore in the Battle and Gap Zones. Mining and milling methods have evolved over time to enable successful extraction and milling of these complex ores. Change is on-going with the recent conversion of the H-W Mine to large-scale bulk mining methods, and the development of effective computerised ore reserve calculation and mine planning tools. These changes, in concert with successful exploration techniques that led to recent high grade ore discoveries, have breathed new life into the operation and should assure its present and future viability.

Jan 1, 1993

By A Purvee, M F. Lee, L J. Mollison

Oyu Tolgoi is a large Cu-Au porphyry deposit in the south Gobi desert, Mongolia. The first of several deep, large-diameter, concrete-lined shafts, Shaft 1, is nearing completion. It will have a finished depth of 1380 m at a diameter of 6.7 m. These shafts will provide access to and hoisting capacity for block caving of deep underground ore. Geotechnical site investigations, and associated predictions of stability and ground support requirements, are compared against actual construction performance. Routine mapping is essential, along with checks against predictions and informing the contractor of ground conditions and variances.Advance rates are compared against predicted rock mass quality. A reasonable correlation exists between Qwall and advance rate. Overbreak and concrete liner thickness is related to the blockiness quotient, RQD/Jn.A ætool-bagÆ of just a few support elements (chain-link mesh, fibrecrete and 2.4 m long friction anchors and resin grouted re-bar bolts) was able to cope with the ground conditions encountered. QA/QC procedures are essential from the factory, through site storage to installation.

Jan 1, 2008

By Johns AS

Comissioning of a new residue disposal tcluding upgraded classification for none backfill preparation, new variable speed pumps and a new residue dam took place in 1¦76. The system is described.

Jan 1, 1978

By I Arburthnot, N Lawler, C Loan

The function of a thickener is to optimise and accelerate the process of gravity sedimentation. The desired end product (be that maximised concentrated solids or clarified liquid) determines how the thickener is designed and operated.Significant internal research, together with extensive on-site piloting, by Outotec has resulted in the determination that the application of the appropriate amount and type of shear to hindered settling aggregates can result in a substantial change to the sedimentation process. A new patented technology, called shear enhanced thickening (SET), has been developed. SET results in considerable design implications for full-scale thickeners, including a substantial reduction in required footprint and/or significant increases in underflow density.The development of SET, combined with laboratory and pilot scale verification, will be discussed along with the introduction of this technology to a number of full-scale thickeners. The associated implications and benefits for industrial thickeners are outlined.CITATION:Loan, C, Lawler, N and Arburthnot, I, 2012. Industrial scale results from shear enhanced thickening technology, in Proceedings 11th AusIMM Mill OperatorsÆ Conference, pp 341-346 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 29, 2012

The development and distribution of gold placers in Otago û Southland is related primarily to the evolution and architecture of three distinctly different drainage networks that developed during and since Gondwana breakup: +        Late-Gondwana û Pre-marine; +        Middle Tertiary Post-marine; and +        Modern. Late Gondwana û Pre-marine drainage was dominantly recti-linear and controlled by normal faults and sedimentary basins formed before or during Gondwana breakup. Placers formed dominantly in 2nd order transverse drainages with primary sources in their catchments. This drainage network was progressively destroyed by inundation and burial by marine strata during Late Cretaceous û Middle Tertiary marine transgression that ultimately covered most of New Zealand. Middle Tertiary Post-marine drainage evolved on and incised the newly emergent low-relief landscape during regional marine regression driven by development of the present plate boundary through South Island. Most of Central Otago was drained into Southland and to the southern coast via a large braided river system with an extensive network of tributaries in its Central Otago reach. East Otago was drained by several smaller systems. Placers formed dominantly in proximal and medial reaches of 1st and 2nd order drainages with primary or pre-existing placers in their catchments. This drainage network was destroyed by inundation and burial of the Central Otago reach of the major system by lacustrine strata following tectonic damning of its middle reach by range uplift and development of a lake complex that covered >5000km2 of Central Otago. The Modern drainage network evolved from the Middle Tertiary network through complex response, firstly to uplift of NW-trending and NE-trending ranges throughout the region since the Late Miocene, and secondly to the effects of major Pleistocene glacial advances in West Otago. Placers formed in alluvial fans at range margins, proximal and medial pre-glacial fluvial systems and glacial outwash sequences. Evolution of each of these drainage networks has been accompanied by widespread sedimentary recycling of alluvial gold from older to younger placers, augmented locally by input of first-cycle gold derived from erosion of primary sources in the repeatedly exhumed basement rocks.

Jan 1, 2006

The addition of a thallous salt to the cyanide leach of a calcined pyritic concentrate causes a marked increase in the"rate of extraction of gold. This probably is due to the activation of passive gold by.th,e. thallous ions'.''Lea'd, bismuth, and mercury salts, which should produce ' a, similai effect, fail to do so. It is postulated that'this latter result, together with'the reprecipitation of silver at low cyanide levels, is due to the presence of soluble sulphide. The use of thallous salts to reduce leaching time is discussed briefly.

Jan 1, 1964

By Hayba DO

Metal-rich slurries discharged from excess-enthalpy geothermal wells at Kawerau (NZ) indicate that an efficient ore precipitation mechanism operates in some feedzones. In our conceptual model, which takes into account the relative permeabilities of liquid and gas phases in boiling fluids, a metal-precipitating liquid phase is effectively immobilised along boiling fronts, leading to the formation of highly concentrated ore. Chemical equilibrium and heat/mass transport modeling demonstrate the general applicability of this conceptual model to hydrothermal eruption environments.

Jan 1, 1995

By Campbell J

After eighteen months of discussions with employees and their trade unions, multiskilling was introduced at the Hellyer concentrator in early 1989, coinciding with the plant commissioning. Multiskilling was introduced with the Hellyer Skills Acquisition Program together with intensive training and performance assessment. Design innovations have helped to improve productivity. There have been some difficult times with personnel tending to return to the old and traditional ways of operating. In general, these have been overcome to ensure the success of multiskilling at Hellyer. The main factors making multiskilling effective have been continual training and assessment, and a competent team of shift supervisors. This has improved work standards towards the high level expected from a multiskilled approach without compromising safety standards.

Jan 1, 1991

British Coal's Selby Complex is the newest producing mine in the United Kingdom. The reasons behind its origins, planning and design are explained. Some detail is given of equipment used, with the emphasis being placed on the unique features of its layout. The entire project has been planned and constructed over many years and the design has consequently changed, principally in response to the geology of the coalfield and improving technology. In spite of many totally unexpected difficulties, the mine, which is not yet in full production, has the highest productivity in the United Kingdom.

Jan 1, 1991

Excavation through fill material in underground metalliferous mines is usually avoided where possible, unlike in Civil Engineering application where excavation through soft ground is normally a matter of course. In the mining situation, where excavation is normally for access only, then excavation designs are engineered for mining in hard rock, except where previous lack of forward planning has made such excavation inevitable or a mining strategy sequence necessitates some mining through fill in order to achieve optimum recovery of ore. Historically, this has been the case, because of the lack of knowledge of the support characteristics of the fill material placed underground and the lack of knowledge of the composition of the fill material as placed. The expertise and experience available from mechanised excavation techniques in Civil Engineering application (shield jacking, forepoling, spiling, and soft tunnel boring, to name a few) are available for application to the underground mining situation if the need ever arises. This paper describes the situations in underground mining development where mining through fill material is required, the different types of fill material encountered and the types of support available

Jan 1, 1981

By Blackham M

West Wallsend No. 2 Colliery is a new mine that is presently being developed in the New- castle Coalfield by J. & A. Brown & Abermain Seaham Collieries Ltd., a subsidiary of Coal & Allied Industries Ltd. It is situated near Barnsley and is some 15 miles by rail from the port of Newcastle. The mine will produce coal from both Bore- hole and Young Wallsend seams. The Borehole seam has a working seam thickness varying from 7 ft to 5 ft while the Young Wallsend seam presents a choice of two distinct working thick- nesses, i.e. 5 ft. or 8 ft, the upper 3 ft containing much high ash material. The inter- seam interval varies from 10 ft on the western edge of the area to more than 70 ft in the central portion. The Borehole seam lies at a depth varying from 550 ft to 750 ft and the overlying surface terrain is gently undulating bushland with limited surface development.

Jan 1, 1972

By T N. Little

This review paper presents an integrated and practical insight to blasting geology and its importance. This approach involves developing blasting objective up front and implementing geology specific blast designs. The author refers to this approach as ‘starting at both ends’. There are many human-imposed controls on blasting operations, such as: safety, security, legislative, company standards, heritage, and environmental constraints. Thus it is possible for some operators to lose sight of the controls imposed by nature. This paper demonstrates how site geology controls or influences many aspects of the rock breaking processes and how a focus on this aspect has potential to add considerable value to mining operations. It is obvious that mining companies concentrate their efforts on economic/ore geology (good rock geology). However it is the author’s experience that they also concentrate on engineering geology (bad rock geology) only when forced to do so by the ground conditions, but seem to run out of puff before they apply blasting geology (big rock geology). This paper contains five main sections. In the first section, the impact of geological controls on blasthole drilling is briefly discussed in terms of drill selection, penetration rates, bit wear, blasthole stability, blasthole deviation, and health precautions. In the second section the geological controls on aspects of geometric design are reviewed. These include: hazardous minerals, valuable minerals, selection of the blasting techniques, geological structures, blasting direction, and blasting geometry. Section three overlaps with the geometric design section and deals with aspects related to explosives. Topics addressed include selecting the explosive type based on geology, distribution of explosive charge in space and time, explosive performance, and the rock response to explosive loading. In the fourth section, examples are given of the operational complexity needed to implement a blast to cater for difficult bench geologies, environment constraints, past mining (voids) and need for a high degree of quality control. Section five demonstrates geological controls on blast results. Blasting results include the muck pile characteristics, downstream handling and processing, damage to the remaining rock, and blasting emissions.

Nov 8, 2011

By Jarvensivu M, Ylinen R, Jamsa-Jounela S-L

The paper presents a new integrated system for control of concentration processes. The system is based on cluster-based modelling taking the ore quality into account and a new on-line particle size analyser capable also for reliable measuring of particle size distribution of concentrate. A metallurgical precontrol audit was performed at the Hitura concentrator in order to design the control strategy of the integrated grinding and flotation control. A new analyser PSI-200, was used to the measurement and control of the distribution of nickel in the total particle size range. An expert control system using the cluster model together with a new control strategy for decision of necessary control actions is outlined. The method has been tested to real data from mineral processes. The results are in good correspondence with empirical process knowledge. KEYWORDS: Cluster analysis, expert control, flotation control, mineral processes, modelling, particle size.

Jan 1, 1993

By Palmer DJ

Mercury is introduced into EZ's electroly tic zinc/sulphuric acid plant complex at Risdon, Tasmania, in zinc sulphide concentrate. Mercury is volatilised during the roasting operation and then distributed in the sulphuric acid plant effluents and product acid. Following an investigation of the factors determining the mercury distribution, a plan was formulated to-provide an environmentally accep- table degree of mercury containment at Risdon. This paper discusses details of the various control measures investigated and out- lines the reasons for selecting the particular procedures finally adopted for the Risdon plant.

Jan 1, 1980

By Cameron A

In recent years there have been significant developments in the tech- nology available for blast monitoring, analysis and simulation. Progress in these areas has been achieved through research conducted by explo- sives manufacturers and independent research groups from universities and mining companies. Miners are increasingly keen to exploit this tech- nology to help them design blasts which make optimum use of explo- sives to produce easily excavated muckpiles for the minimum possible cost. The art of blast design in the future will increasingly depend on an adequate understanding of the nature of the rock mass, the perfor- mance of explosives and the characteristics required of the muckpile to suit the chosen excavation machinery. Despite recent advances in blast simulation and the prediction of blasting performance, the best way to determine how a particular explosive will function relative to other explosives is to conduct properly designed and monitored field trials. This paper discusses recent work at Mount Thorley Colliery which demonstrates that field blasting trials can be monitored and analysed to provide quantitative data on the relative performance of bulk explosives. Techniques used in the trials included the sampling and analysis of explo- sives, insitu measurement of VOD, monitoring of near and far field vibra- tions, high speed and still photography and survey measurement of muckpiles. These techniques provided data for the analysis of throw, swell, fragmentation and burden movement together with data on the consistency and robustness of different explosive products. The blasting trials allowed both the shock and heave energy of various explosives to be observed in the field and led to the derivation of design rules for the use of differ- ent explosives at the mine.

Jan 1, 1988