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By McCarthy J

In both the U.S.A. and Canada regulations concerning the reporting on mineral resources and especially ore reserves have been established. The regulations are virtually identical for the two countries with the main exceptions being who is franchised to write the report and how the various reserve categories may be used in reports to the public. Both countries divide ore reserves into "proven", "probable" and "inferred" categories. "Proven" reserves are those for material for which tonnage is computed from dimensions revealed in outcrops, trenches, underground workings or drill holes and for which the grade is composed from the results of adequate sampling. "Probable" reserves are those which are less well defined than "proven" while "inferred" reserves are generally those which may exist through geological and geophysical interpretation. The AusIMM/AMIC draft guidelines as proposed for use in Australia define more rigidly the ore reserve categories into "proved" and "probable" terms, which can only be applied following a full and favourable analysis of economic, mining, metallurgical, marketing and sociopolitical factors. If the ore reserves are not supported by this analysis they are placed into a "resource" category. Proper application of this proposed Australian model could prove useful when dealing with grass-root prospects or mining properties in the pre-feasibility stage. Combined with competent reporting, use of the proposed guidelines should ensure standardised and more verifiable analysis/valuation of a company's mineral assets.

Jan 1, 1987

By P D. Munro

The Mine to Mill concept, as it has become known, is a philosophy which is being increasingly embraced by mining companies committed to increasing their profitability through better integration and global optimisation of their mining and processing operations. Autogenous (AG) and semi-autogenous (SAG) mills are the principal primary grinding devices currently in use, their performance is particularly sensitive to feed size distribution. Most efforts to-date have centred on modifying and controlling the run-of-mine (ROM) size distribution to maximise grinding mill throughput. The complexity of the interaction between ROM size distribution, primary crusher product and AG/SAG mill performance precludes the trial-and-error approach as an effective means of determining the optimum blast-induced fragmentation size distribution. To overcome this limitation, the Julius Kruttschnitt Mineral Research Centre (JKMRC) has developed modelling and simulation techniques that are able to accurately reproduce both the fragmentation processes during blasting and the subsequent performance of the comminution circuit. These models are tailored to suit local ore types, rock structure and comminution circuit design and calibrated using high quality field data. MIM Holdings Limited (MIM) have been particularly active in the Mine to Mill area and have instituted optimisation programs at three of their associated base metal operations viz Alumbrera, Ernest Henry and the Mount Isa Mines. This paper describes these programs with particular reference to the data acquisition and modelling phases, the predictions of potential productivity gains and the extent of the realisation of these gains to-date.

Jan 1, 2000

By P J. Harper

Maximising shareholder value is a widely stated strategic goal of many mining companies. Mining projects can be capital intensive and achieving good returns is essential to encourage future investment in the industry. Despite the widely accepted importance of shareholder value, the minerals industry is often accused of providing relatively poor returns when compared to other industries. There are many recent and well publicised examples of minerals companies that have failed to deliver value to their shareholders. There are numerous business improvement initiatives employed within the mining industry to assist mine operators improve performance. Some are more effective at creating value than others. Benchmarking is one technique that is commonly used to identify performance gaps and target and prioritise opportunities for improvement. However to be effective, Benchmarking must be used appropriately and result in actions that lead to measurable operational improvement. When conducting a Benchmarking project it is important to remember that the aim should be to improve value. For this to be achieved, the strategic goals must be incorporated into the process. This paper details a structured and comprehensive approach to conducting a successful Benchmarking project. Focusing on Benchmarking as a technique for measuring and improving operational performance in underground mines, the underlying drivers of best practice in underground mining are identified.

Jan 1, 2005

By Neville WE, Parkinson J

One of the earliest recorded risk management schemes was implemented by the boatmen of the Yangtze river some 4,000 years ago.. Between them they arranged for shipments to be split up in such a way that a load was divided five ways: if one was lost, then 80% of the shipment got through. Bottomry contracts were in vogue in Babylonian times with similar systems being used in India, in 60OBC and 4th century Greece. One of the first accepted mutual insurance ideas came in 1835 when a mill owner in America negotiated a lower insurance premium in return for installed fire safety measures. Approximately 20 years ago risk management as a philosophy was developed in the U.S.A., the philosophy followed to England and hence to Australia about 10 years ago. The business climate which induced the philosophy of risk management was that of "tight money". The definition of "assets" was then broadened to include earning capacity, skilled personnel and in a negative sense, a corporation's liabilities. In more affluent days losses were comfortably absorbed into the ongoing business expenses, the more prudent managers took out insurance which "covered everything" at a suitable premium. Statistics are available to indicate that a high percentage, (over 60%) of businesses which suffer massive plant damage due to fire, do not restart operations, or in the event of restarting have closed operations within the next 2 to 3 years - in spite of collecting an insurance payout.

Jan 1, 1986

In 1965, Peter Flawn author of the famous text-book on Mineral Resources (1966) published a paper in Economic Geology with the delightful title `Who took the `Economic' out of Economic Geology?'. He opened this most interesting article with the following paragraph:If one were called upon to cite an example of a fish out-of-water he could hardly pick a better one than a recent graduate of geology of an America university who is suddenly faced with the responsibility of evaluating or appraising a mineral property. And I venture to say that the 'ftsh' with a doctorate - even in economic geology - is not much better equipped than one holding a lesser degree. The new graduate with a major in economic geology probably knows the significance of the various sulphur isotopes, he surely knows a great deal about the chemistry of the ore forming fluids and he recites with ease the arguments which prove deposits are epigenetic rather than syngenetic. However he is a rare bird indeed if he knows anything about the economics of the mineral industry. The truth is that geologists who are engaged in evaluation work are largely self taught. I ask my more distinguished and experienced colleagues - `Has it always been this way? Who took the `economic' out of economic geology?

Jan 1, 1993

By J Koppe, J F. Costa

A fundamental error of sampling occurs when a sample is extracted from a larger mass of ore or lot. The act of sampling requires that all particles belonging to the lot have an equal chance of being extracted. This type of sampling is called unbiased sampling. The sampling equipment (herein referred to as the sampler) should be constructed with some additional mechanical characteristics to guarantee that the samples will be unbiased. Samplers, extracting increments from a continuous flow, such as a conveyor belt, collect aliquots at regular time intervals. These time intervals relate to the number of aliquots extracted from a given mass of lot, whilst passing through the continuous flow. The frequency of extractions will influence the precision or the error of the sample (integration error). Further, the ore variability influences the amount collected from the continuous flow. Normally, the sampling protocol utilised is designed for the extractions obtained from the conveyor belt, omitting any error committed during this operation, ie the error of extracting from the continuous flow. This study aims to analyse the error of sampling a continuous flow by using a variogram with added on auxiliary functions. Each different piece of material passing through the flow will exhibit a distinct temporal variogram, which should influence the frequency of the samples being extracted for each chosen sampling error. The methodology used is presented in the form of a case study from a coal processing plant.

Jan 1, 2005

The value of water is defined by its marginal utility. Challenges arise where the marginal utility is difficult to estimate. Therefore, when two or more interested parties wish to access water and they cannot use commensurate units for marginal utility; other means of value comparison must be sought. It is asserted here that sustainability principles can be used to guide this valuation if this is supported by a transparent decision framework. This paper proposes that the ICMM sustainable development principles provide appropriate guidance. In addition, a generic framework for decision making is suggested as a complement. Indicators of water management are recognised widely as an integral part of the accountability of minerals companies towards meeting sustainability goals. Less widely recognised are the ways in which sustainability principles can be used to guide decisions on water management which demonstrate growing awareness of its value. This paper illustrates the use of this logic in water issues associated with global sustainability challenges. It then goes on to demonstrate, using examples, that these links exist at all levels of the minerals industry and that indicators of this type are potentially as powerful as those currently being used. The reason for this is that the path from cause to effect is transparent and direct.

Jan 1, 2006

WITH the exception of the deposits of the Milburn Cement Co near Dunedin, Wilson's Portland Cement Co., on the Mahurangi River (a short distance north of Auckland), and those of the New Zealand Portland Cement Co., at Limestone Island, the cement. Tesources of New Zealand remain practically undeveloped. The Milburn Company utilizes a mixture of limestone and mud for the manufacture of cement, while Wilson's and the New Zealand Portland Cement companies both have the advantage of a natural cement stock which requires but small additions of highgrade limestone to give the mixture required. The plant and deposits of the New Zealand Portland Cement Co are located in Whangarei Harbour, some six miles from thetownship of Whangarei. The works and dwelling-houses are situated on Limestone Island, which, with an area of 92 acres, and rising to a height of 212 ft., supplies the bulk of the raw material required. In addition to the island, the company possesses a high-grade limestone area of, roughly, four acres, situated on the mainland, 11 miles to the south. A better location for a cement works could not well have been chosen. On the east side of the island there is a deep channel, which never shows less than 18 ft. of water alongside the company's...

Jan 1, 1911

In the future, Illawarra Coal, the primary metallurgical coal producer in the southern coal fields of New South Wales, will face many unique challenges not found in other coal or minerals production areas. To manage these challenges and determine the best strategy for the business, Illawarra Coal has adopted a systematic strategic planning process, which starts from the broadest possible options analysis and culminates in a ægo-forwardÆ operating case that individual mine sites use as the basis for short-term planning. This paper will discuss two major topics. Firstly an overview of the Illawarra Coal and BHP Billiton strategic planning processes. This will demonstrate the range of variables and inputs that are required for the planning process, and the system which is followed to evaluate different alternatives for the extraction of the resource. Secondly, having discussed the primary external and internal factors that must be accounted for in the planning process, and the main issues affecting the viability and likelihood of each alternative, the paper will discuss the particular challenges that Illawarra Coal will face in the coming decades. These challenges include: market and price uncertainty; managing impact on surface features, infrastructure and environment; community interaction; transport and logistics constraints; unknown mining environments; lack of geological knowledge; limited surface access for new mining domains; changing attitudes to longwall mining in the Illawarra; ageing workforce; and cost and overhead management. The paper intends to discuss how these issues impact the business currently and how they are incorporated into Life of Asset plans and overall corporate strategy for Illawarra Coal.

Jan 1, 2007

There is very little in Australian mining law that sets out the rights of mining tenement and exploration licence holders as against other parties who wish to carry out ground or aerial surveillance over those areas.There have already been several legal actions arising out of this lack, and more can be expected as the public places more rigorous constraints on corporate and individual behaviour. Field personnel, who are mainly fairly junior and less experienced, are entitled to some guidance from the minerals industry, guidance which up to now appears to have been either lacking or covering such a wide range of standards from corporation to corporation as to be virtually useless.Because each State writes its own laws there is no consistency, and the laws generally are lagging behind developments in the industry. In particular, the practice of granting mining tenements for sporadic exploration, a practice that is a leftover from much earlier mining law, has dotted the Australian continent with unattended and unmarked or poorly marked tenements that are difficult to find but confer on the holder prior rights to the minerals under them. Entry onto those areas in most jurisdictions is an offence and their existence compromises the efforts of regional explorers.This clearly unsatisfactory situation requires remedying, which is the purpose of these proposals. A more systematic approach to the granting of reconnaissance, regional and detailed exploration, mining, and retention rights will eliminate much of the problem. For the rest, a code of practice needs to be adopted as soon as possible.

Jan 1, 1996

By G Mulder, M Adams

Since the introduction of raiseboring 30 years ago there have been many operational and mechanical design improvements in the raiseboring machine, its reamers and associated cutters. These have now made the technology of raiseboring a routine and practical operation within the underground mining world. Over the last decade these advances have been aided by the introduction of robust automation packages which have allowed unattended drilling and reaming, real time performance monitoring and enhancement and the rapid diagnostic investigation of mechanical and electrical abnormalities. The constraint to higher raiseboring performance is now the drill string. However when it comes to a cost-effective solution of applying the high drill string torque and tension necessary for the next step change in performance, designers have æhit the wallÆ. Whilst carbon fiber reinforced plastic composites with abrasive resistant sheaths may offer a solution, the limit of conventional steel, drill string technology has been reached. This limit to advancement is however based on the drill string being in tension and alternative solutions may exist by literally turning the raiseboring paradigm on its head. This paper describes the story of a small Australian company engaged in the design and manufacture of mechanical excavation machines, two Australian raiseboring contractors and three Australian mines going against tradition and pushing down rather than pulling up.

Jan 1, 1998

The Hail Creek coking coal deposits are situated in Central Queensland, inland from the port of Mackay. A joint venture of Australian and Japanese companies has been formed to examine the feasibility of developing these deposits for sale on the overseas markets. The project envisaged involves large scale mining operations and on site benefic- iation to wash the coal to marketable quality. Infrastructure items include a 140 kilometre railway to the coast, a port facility, and at Ilail Creek, power and water supplies, roads and communications, and accommodation for a substantial workforce. The need for town development and the responsibility for the development are established. The town planning implications of coal production at the rate of five million long tons of washed coal per annum from open cut and underground mines are considered. A procedure for estimating the size of the town is expounded and the town size is determined. The factors influencing site selection are explained and a site is suggested. A method of designing the town is described and comments are made on developmental aspects. Spaciousness and preservation featuring the natural environment will be the theme of the town development.

Jan 1, 1973

By Roberts JD

The design and installation of a major on-line stores and purchasing system, with built-in maintenance reporting and plant register capabilities, needs more than just close attention to computer design details. When the system must be available almost 24 hours a day to a number of mine stores sites, and is used by a variety of mining staff including engineers and stores clerks, as well as by remote purchasing and office staff, then simplicity of use, availability, fast response times, and other human factors become vital. Critical aspects include easy to use screen design, involving a change from the traditional hierarchical menu system, and fallback and recovery to the last transaction. Business, people and systems objectives need to be established at the preliminary design stage, so that results can be measured and corrective action taken. The amount and type of user involvement and training, at all stages from initial design to systems tuning, has a major effect on people wanting to use the system. Active user participation in systems design, data definition and collection, and use of relevant training material is needed. Project management and design problems can arise in working with database oriented computer staff, and certain design features are found useful in ensuring a responsive, robust overall system.

Jan 1, 1983

In the mining and minerals industry, development, introduction and construction of new plant designs, to meet sustainability objectives, face a series of major hurdles. Typical are the long investment cycle times, the designer does not normally control the spending (the owner does), and the industry is inherently technologically conservative or risk adverse while accepting the often more significant geological, market and political risks.æSustainable Plant DesignÆ is an approach to plant and facility design that drives the necessary culture change and acceptance by minimising technical risk and maximising potential returns. The approach forces consideration of sustainability objectives and risks early in the project, where cost saving and efficiency improving opportunities can be maximised.In Hatch, we are using three proven tools under the ærisk managementÆ umbrella to drive sustainable development principles into our projects:Sustainable Plant Design, FutureWatchTM Reviews, and Clean Plant DesignTM . These proactive practical, not theoretical, techniques for driving change from within and reducing whole of life cycle costs will be discussed and illustrated with case studies.

Jan 1, 2004

BHP Billiton Mitsubishi Alliance, or BMA, is AustraliaÆs largest coal miner and exporter, and is currently responsible for around a quarter of AustraliaÆs total annual coal exports. BMA and its predecessors have been part of the Queensland mining scene for around 40 years, developing world-class mines, a port, overseas markets, and an international reputation for quality and reliability. From its production base in QueenslandÆs Bowen Basin, BMA produces a broad suite of coals which are supplied to 73 customers in 24 countries. BMA was formed in June 2001 as a partnership between BHP Billiton and Mitsubishi Development Pty Ltd, under which the two companies share equal ownership and management of eight Central Queensland coal mines û Goonyella Riverside, Broadmeadow, Peak Downs, Saraji, Norwich Park, Gregory, Crinum and Blackwater û and the Hay Point coal export terminal near Mackay. This case study focuses on Peak Downs Mine, which was the second largest open cut mining operation to be developed in the northern Bowen Basin for the original CQCA Joint Venture. The first coal was mined in April 1972 and today, Peak Downs has a production capacity of over nine million tonnes of coking coal per annum. The mine is located 30 km south of Moranbah and 195 km south west of the Hay Point port facilities. Coal is mined by open cut mining methods using six draglines and two truck/shovel stripping fleets for overburden removal. Coal seams are mined using excavators and front-end loaders and 210 tonne capacity coal haulers.

Jan 1, 2007

In this paper, a subtle, but important, difference has been drawn between responsibility and mandate. Responsibility has a connotation of financial involvement assigned to an organ- isation as a result of some action it takes, the ramifications of which can be ascribed directly to the organisation. In contrast mandate relates to the power and authority to act. The paper outlines the role of poli- ticians as community decision-makers and the need for Government policy to be flexible in an advanced industrial society so that decision- making options are kept open for as long as necessary. Further, broad community objectives need to be understood and defined so that plans and policies can be consistent. Co-ordination through communication at all levels, especially at the public administration interfaces and with the private sector,is essential for effective resource allocation and efficient implementation. The paper discusses several aspects of the infrastructure responsibility question and some considerations which might be viewed as important by the community decision-makers in considering what responsibility the "community" should accept in providing infrastructure.

Jan 1, 1974

Timely disclosure of information germane to the taking of investment decisions makes an essential contribution to ensuring the growth, efficiency and integrity of our capital markets. It is a core contributor to the maintenance of fair, orderly and transparent markets. Australia has a strategic need to protect and enhance market integrity. Australia is ranked tenth in the Morgan Stanley Capital International (MSCI) World Index, yet represents only 1.59 per cent of that Index. In order to survive and grow in this globally competitive environment, Australian capital markets û the drivers for economic activity in Australia û need to attract foreign investment and engage retail capital. The communication of relevant and comprehensible information to the investor plays a vital part in fostering investor confidence, thereby building depth and liquidity in our market. We have had a rewarding partnership with the mining industry to develop and recognise reporting standards which could allow ready comparability and investor understanding of the mining investment vehicle. Our mining market has been successful because of the high standards of professionalism and the intellectual capital that has been built up among the participants û the mining professionals, brokers, analysts, mining investors, professional advisers and the market operator. The balance of knowledge and understanding among these participants combined with the competition for capital, contributes to the standards for our mining market in a way that the market operator simply cannot replicate by market rules alone.

Jan 1, 2002

Erratic, though spatially localised occurrences of gold particles are a common feature of high-nugget gold systems. In many cases, gold is present as isolated or clustered, often coarse particles. The nugget effect is a part consequence of small-scale geologically controlled enrichment, and the inclusion or exclusion of gold particles from samples. Economic zones are generally contained within discrete structurally-controlled ore shoots which are surrounded by, and may include barren to low-grade background material. Problems are often encountered where small sample types (eg drill core and channel samples) of a few kilograms mass understate in situ grade by up to a few orders of magnitude, due to their general inability to represent the true gold particle distribution. This leads to uncertainty in mineral resource estimates. This contribution presents case studies where geologically-based parameters have been collected from drill core and underground faces to support grade determination. These parameters - or proxies - are based on mineralogical and/or geochemical (eg specific elemental ratios, fluid inclusion compositions and elemental correlations) criteria. Such criteria can be correlated with different grade domains to provide an indication of true grade within a geologically-controlled context. Proxies have recently been used to support resource estimates reported in accordance with the JORC Code.

Mar 1, 2010

By A Crawford, P Manton

Telfer is a gold/copper operation, currently operating one open pit mine and one underground mine. The ore processing plant consists of two parallel trains involving semi-autogenous mill, ball mill and crusher (SABC) grinding, flotation and leaching. Due to receiving relatively high grade underground ore for over half of its total feed, Train 1 frequently experienced cleaning circuit overloading during high production periods. This resulted in losses in recovery and ineffective concentrate upgrade. As a quick and simple solution, the Train 1 copper flotation circuit was reconfigured to send concentrate from the first two rougher cells directly to the final concentrate and return the cleaner scavenger tailings to the third rougher cell. These modifications have resulted in a 1.4 per cent increase in plant copper recovery with no change in final concentrate grade. Preliminary results also indicate gold recovery has increased by more than 1 per cent since the circuit reconfiguration. Other benefits include less spillage, more friendly circuit to operate and a more consistent metallurgical performance. Focus for the next phase of optimisation is on concentrate upgrade. A number of opportunities have been identified and are currently being investigated, including staged reagent addition, single stage cleaning of the first two copper rougher concentrates, regrinding of the remaining copper rougher concentrate prior to cleaning and process control based on a machine vision system.

Jan 1, 2009

By M Delaney

Alliancing is a contractual relationship in which organisations with an interest in a project are brought together in an atmosphere of co-operation to produce superior results to benefit all of the participants. Fundamental to the concept is the management of the risks associated with the project. The traditional risk management strategy adopted by clients has been to transfer this risk to others in the belief that this will result in the lowest overall project cost. It is assumed that competition in the market place will allow these risks to be transferred without paying a premium. However, this approach often results in the development of an adversarial climate, a high level of litigation, time and cost overruns and an overall poor project outcome. Under an alliancing arrangement the parties (client, designer and contractor) are aligned through shared interests in the projectÆs success by linking profitability to performance. Under such an arrangement, an atmosphere is created whereby the participants are motivated to focus on cost-savings, pursue best value and to innovate. Successful alliancing can result in highly motivated project teams and realisation of extraordinary productivity and cost-savings flowing from increased efficiencies. The situations in which alliancing can be successful are discussed with particular reference to the Wandoo Alliance which successfully completed the $375 million Wandoo B offshore oil platform in record time and with considerable savings to the project budget.

Jan 1, 2000