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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 I Haine, J Penm, T Waring

During 1999 there was a considerable turnaround in world prices for most minerals and energy commodities, except for the bulk commodities (coal and iron ore). The main reasons for this turnaround were: improved prospects in demand for most minerals and energy commodities in the Asian region following a return to both economic and industrial production growth in key economies in that region; continued moderate growth in demand in Europe and North America; substantial production cutbacks in a range of minerals and energy industries; effective reductions in the supply of oil by OPEC nations; and an announcement by European central banks that they would cap the amount of gold they sell and loan in the next five years. Most of these influences are expected to be sustained into the first years of the new millennium. In 2000, with exception of coal, average world prices of minerals and metals are forecast to rise significantly. Gross domestic product and industrial production is expected to grow in some European countries and most Asian countries in 2000 and, with moderate growth expected to be sustained in the United States, demand for minerals and energy is expected to increase. AustraliaÆs main bulk commodities, iron ore and coal, saw prices set for 1999 - 2000 at substantially lower levels in negotiations in early-1999. Double digit price cuts were locked in. However, similar falls appear to have been avoided for coal in Japanese Fiscal Year 2001, while increases of between four and six per cent were achieved for iron ore. Forecast modest recovery in economic growth in Japan and increasing demand elsewhere in Asia are expected to lead to tighter market conditions in 2000. Beyond 2000, world minerals and energy markets will be influenced by the expected robust global supply responses of minerals and energy companies, against a background of sustained economic growth and industrial production growth in major consuming countries. Over the medium-term, a return to declining real prices which have been evident for most commodities in the recent past, is expected as exploration, mining and processing technological change and associated productivity growth continues to reduce industry costs. While lower rates of exploration and mining investment in Australia between 1998 and 2000 will modestly constrain the rate of future industry expansion, Australia remains an important contributor to expected growth in global minerals supply over the medium-term. Australian mine production is forecast to grow between 1999 - 2000 and 2004 - 05, boosted by production from recently commissioned mines and minerals processing facilities and comissioning of other projects at advanced stages of planning.

Jan 1, 2000

This paper examines the broader implications of recent and ongoing changes in mineral resource managementå and reporting practices and the impact that these might have on mining companies. It is likely that an International Reporting Code will be developed in the near future, based on a number of National codes produced in recent years. However, this is only part of the reporting story, as an International Code brings with it a range of further issues to resolve. For the Code to be effective, there needs to be international recognition and perhaps licensing of Competent Persons and an expanded base of sponsoring professional bodies. Also, in an increasingly global business, shareholders, regulators and other interested parties need to know and understand the general processes involved in resource and reserve estimation and reporting in order to recognise companies that maintain the highest standards. There is a current trend towards greater scrutiny of company performance in a range of areas under the banner of corporate governance, and many changes are happening that will place greater disclosure burdens on all companies in the future. Good corporate governance means management of company assets for the benefit of the stakeholders. For a mining company, there is no greater asset than its mineral resources and reserves and directors are just as responsible for effective management of their mineral resources as they are for financial good practice. The paper looks at the relevance of corporate governance principles to mineral resource management and the changes that this could bring to the way that companies deal with regulators, shareholders, financiers and others. Finally, increased scrutiny and further regulation inevitably means greater effort by the industry and higher costs. Despite this the author believes that there are substantial offsetting benefits to be gained by companies prepared to take the initiative in improving resource management practices and communicating these improvements to shareholders. In order to achieve the benefits however, the industry needs to fully engage in the changes that are taking place û setting its own standards and working with the regulators rather than sitting back and being legislated against. Mineral resource reporting provides a good model of how this process can work and there will be other opportunities in the coming years as the industry seeks to develop best practice in mineral resource management. The author is an employee of Rio Tinto but wishes to point out that the views expressed in this paper are his own and not necessarily those of Rio Tinto.

Jan 1, 2002

Life inside the mining family was regulated by the mine. The whistle shrieked the change of shift to the Cornish, Welsh and German miners digging the alien soil for copper at Burra in the 1840s and the deep quartz gold mines at Bendigo in the 1880s.During the golden years of alluvial mining in the 1850s, and later out on the frontier fields of Kalgoorlie and Jarrahdale in Western Australia, the lure of the mine dominated family life. How could it do anything else? The canvas tent, bark hut or weatherboard cottage in which the mining family lived close by the mine facilitated prompt access. The working man of the family attended to the demands of the mine first, and those of his family afterward. Who then organized and nurtured the mining family? The role of the mining wife was multi-fold. She played the traditional roles of home-maker and comforter, raising her children, tending her house and vegetable garden and supporting those friends and acquaintances who had lost children to disease, or menfolk to the mine. Epidemics of measles, the whooping cough or influenza carried away children in infancy or at too young an age. The death of a husband through accident or disease (pthisis was a likely killer) forced upon the mining wife another role, that of provider. When Elizabeth Vigus' husband died in a Bendigo mine accident in March 1880 Elizabeth set up a grocery business to support her young children.' But in other cases the mining wife supplemented the family earnings by part time work, not in the mines for the Mines Act legislation of 1842 forbade the working of women underground, but in auxilfiary occupations which were in demand.2 Ann Mitchell, a herbalist ,found plenty of work in the goldfield towns of Daylesford and Maldon in the 1860s and 1870s.3 So too did Susan Rule and her daughter Catherine who conducted a sewing and millinery establishment in Beechworth in the 1870s.4 The making of the family's clothes was another task of the mining wife and mother.Until the wonderful invention of the sewing machine, this was a tedious and time-consuming task. James Slater Edmonson bought his wife a Wertheim for the sum of 12 pounds in June 1886, just before leaving her and his chil- dren in the Adelaide suburb of Goodwood whilst he went alone to the goldfields of the West. In October of that year he wrote to Louise telling her how he missed the childrens' wondering "whether Slater wore my old shirt now. I always think of him as he sat on my knee at breakfast in that old shirt; and how pleasant it would be if I could rock both of them and sing as I used to do".5

Jan 1, 1988

The quality of the external water source for a mineral processing plant may influence the extent to which the environmentally desirable practice of recycling of water from plant products is possible. This is particularly likely for froth flotation plants where the chemical quality of the water may affect the plantÆs performance. The quality of the external water source or the recycled water can be improved by a water treatment step, and in turn the extent of recycling which can be tolerated is able to be influenced. The quality of the external water can range from very high quality, soft water derived from melting snow, to poor quality, hard water (high levels of dissolved calcium and magnesium) from underground aquifers, and to even lower quality sea water (very high levels of dissolved species including sodium chloride). It can be noted that some underground water is more saline than ocean water as well as containing high levels of dissolved calcium and magnesium. Occasionally, a different source of water is utilised in the wet and the dry seasons. Increasingly, sewage water from cities is becoming a potential external water source with sustainability implications. If the initial quality of the external water is high, the scope for recycling of water from all the products is maximised. Such reuse or recycling of water from the products allows chemical species from oxidation of the ore and from other inputs to the process such as reagents to increase in concentration in the water returned to the plant. Such accumulation of species can have negative effects on the performance of a process such as froth flotation but instances of positive effects exist. Some reagents which are used in flotation plants such as lime or sodium carbonate also happen to be commonly used for independent water treatment plants. Hence, the flotation process may inadvertently provide some aspects of water processing. Where the quality of the water in the feed to a mineral processing plant (external water plus recycled water) is not an issue, more powerful solid-liquid separation processes can be considered to maximise the removal of water from the products and its reuse. Such processes may also have complementary benefits in a sustainable mineral industry by, for example, producing a tailing stream with a higher per cent solid value which is more suitable for safe storage on the surface or underground. This paper documents findings on the effect of water quality on the flotation process. It also considers current directions of change in the need for increased removal of water from plant products. It then considers the implications of these trends for maximisation of water recycling by such operations.

Jan 1, 2003

For the last decade Australia has been the leading exporter of both steam and coking coal. In the ten-year period 1989 - 1998 steam coal exports increased by 93 per cent and metallurgical coal exports increased by 50 per cent. However, profitability of the steam coal sector has been disappointing. The coking coal sector, especially the hard coking coal segment, has fared better but its profitability was more because of its ability to maintain relatively high prices rather than its inherent productivity. Until quite recently the Australian coking coal sector was widely expected to be able to maintain this comfortable state without undue effort for the three major æpartnersÆ; the companies, the State Government and the unions. But coking coal could now be heading down the path followed by steam coal that ends with long-term over-supply and, despite steady improvements in productivity, poor profitability. Steam coal entered the ænewÆ era of long-term over-supply some years ago. Over-supply was due to the rapid increase in production in Indonesia, often from new mines and Australia. AustraliaÆs production rise was underlain by the apparent belief that the best way to lower costs was to increase production. In the first couple of years costs didnÆt fall much but the additional tonnage was sold at lower and lower prices into the spot market. By mid-1998 the difference between the contract price set with Japanese utilities and spot sales was often in excess of $US12 per tonne. Japanese contract prices and tonnages have since fallen significantly. Steam coal has moved from being a product to being a commodity. Any profits are due more to the low Australian dollar rather than inherent mine productivity. Seaborne coking coal trade has been dominated by Australia, Canada and the USA, with the USA becoming less competitive. Unfortunately, when the Queensland capacity expansion was well down the pipeline, the Asian financial crisis occurred and the Japanese economy entered what appears to be a long-term recession. Contract prices fell 18 per cent, tonnages decreased and some mines have been reclassified as supplying lower priced coking coal. The paper analyses past and expected future trends in labour and mine productivity, rail freight and FOB export port cash and total costs of the Australian steam coal and coking coal sectors and discusses the market outlook for Australia. The future economic viability of the industry is analysed and discussed in the light of the rapidly changing global environment.

Jan 1, 2000

The Telfer Gold Mine, owned and operated by Newcrest Mining and located in Western Australia, is currently being expanded. A new underground sublevel cave development is proposed along with an appreciable expansion of the open pit. The Telfer area is generally subject to low rainfall, however, during the wet season cyclonic events can result in sizable rain events, which have the potential to cause substantial inflow. In addition to this, during the first five years (nominal) of the mineÆs life, there is the potential for drainage paths between the pit and the underground mine via decommissioned underground workings which lie directly under the pit. After this initial five year period the pit floor will be mined out below the old workings and will therefore no longer connect to the underground, however cave breakthrough to the surface may start to occur thus providing another water path into the underground mine. To arrive at an optimum, safe solution for dewatering the mine that successfully addressed the above items, a rigorous risk analysis was included as an integral part of the design process. This involved the determination of the probability of events occurring and the consequences of these occurrences. This was compared against the cost of mitigation for the various events. This paper outlines the process by which a safe concept addressing all the issues relating to dewatering the proposed mine has been arrived at. This process included: Establishing the pit catchment areas. These were based on historical run-off data and took into account practical mitigation works. Establishing an Average Recurrence Interval (ARI) based on reference material and historical rainfall data. Utilising a standard approach based on Australian Rainfall and Run-off (ARR) to calculate pumping and storage requirements for the various catchments. Analysing the 20 years of recorded rainfall in the Telfer area to establish the duration, magnitude and sequence of events. This analysis assisted in determining the surface run-off coefficient. Establishing potential water storage areas and determining the risks associated with using particular storage options. Establishing the percolation rate through the cave zone. A degree of uncertainty regarding the percolation rate in the cave zone required that the consequences of using various percolation rates were considered to aid in establishing the rate which was adopted. Establishing preliminary concepts and determining the most economically viable concept. Conducting a risk assessment based on the principles outlined by Australian Rainfall and Run-off (ARR) to confirm that the appropriate Average Recurrence Interval (ARI) had been selected. A risk assessment was also conducted in accordance with client requirements. Establishing the optimum pump station sizes and storage capacities. Establishing the appropriate numbers of duty and standby equipment. By using the foregoing process, which included a number of stages of risk analyses, an optimum dewatering system concept was produced.

Jan 1, 2003

By P G. Gaylard

P754 has been an unusual project in that its main aim was to develop a code of practice for metal accounting with the following key objectives:Development leading to an agreed industry standard at corporate governance level Significant improvement of the credibility of metal accounting from deposit to saleable product Development of guidelines for data collection, data analysis, reporting and audit A data analysis toolbox which provides go/no go testing for metal balance data Promotion of industry adoption of these guidelines to improve transparency and financial credibility. Over time, these guidelines may evolve into a code and eventually into a standard Develop and train engineers to become expert in metal balancing and reporting. Papers like this one and the workshop which follows this conference are part of promoting the code for adoption by industry. Developing a code of practice has traditionally been the provenance of professional bodies associated with particular industries û often on a voluntary basis. Given todayÆs industry pressures, it was felt that funding key input might accelerate the development process as well as offer opportunities to research some of the problems and to train some post graduate students in a difficult discipline. In fact, the project has brought together six industry sponsors from a wide range of process types, three research providers, and funded students in South Africa and Australia. The project has also attracted input from the financial community. A textbook to support the application of the code has also been written. The industry sponsors have made the Code and Guidelines available on request to help to facilitate its use by the mineral industry beyond the sponsor group. The Code and Guidelines have already been translated into Spanish and Portuguese which suggests that industry acceptance may happen quite quickly. The main thrust of the code is to integrate commercial and technical performance to a much higher degree. The Check in-Check out (CI-CO) method has been chosen as the vehicle for this combined approach. The mass and metal values used for CI-CO are 'absolute' and provide the basis of financial transfers. The CI-CO process occurs at each transfer of custody - whether between divisions within a company, or between companies. This approach means that measurement of mass and metal flows becomes the critical element of the process and that a quantitative knowledge of measurement accuracy and precision is also essential. This knowledge allows technical differentiation between differences which are within the expected margin of variation and those which must be formally identified as discrepancies and subject to a process of investigation and sign off. Hence, the application of the code for most companies should be more evolutionary than revolutionary, but with substantially more emphasis on measurement and definition of measurement error. Where this can be achieved, it should bring the mineral industry more into line with other industries competing for investment funds, community acceptance and future employees.

Jan 1, 2008

By Littlewood E

We offer these notes as a practical contribution. All the arguments we advance have been tested by practical experience.In its preparation we realised that our subject was one of such importance and covered so wide a field that, dealt with by one of us alone, it might easily have been too much for him, so we have endeavoured, by mutual criticism and advice and a pooling of ideas, to bring forward a few points that may be of advantage to members. If any of the paper is of benefit to mining on the "Golden Mile," or elsewhere, we shall feel amply repaid for our efforts.It is obvious to all that the longer the machine is working productively per shift the greater the return, to all concerned; the machine-man himself and the company. Furthermore, if a man commences a shift with a definite objective in view; for instance, to bore and fire a specific cut, which he recognizes will give him a good financial return, then that man will exercise all his capabilities to attain that objective.In this paper we hope to demonstrate the value to the machine-man of the knowledge of the capabilities of each hole he bores, so that he will be enabled to utilize his drilling time to the greatest advantage. Also, we hope to show that such drilling time can be advantageously extended.After the war, with the influx of new men to the industry, some education on the finer points of machine work may be desirable, and any instruction in this branch must stress the realization of the value of each hole.We realise that most of those present have a sound workable knowledge of machine-mining, and we are not trying to teach anyone the fundamentals of machine work, but we would like to bring to their attentIon some of the finer points which we believe are very important.The machine-man has control of gear of a capital value of over £150, and the use or misuse of that material has a direct bearing on working costs. Therefore it is imperative that the capital outlay is gainfully employed.A "bogger" in charge of a 5/- shovel engaged unproductively is bad enough. How much worse for £150 worth of gear to be not fully productive.Figs. 1 and 2 demonstrate angles of break, and the full realization of the importance of this angle is essential to our paper. Although these Sketches are two-dimensional, we hope they will be sufficient to demonstrate our meaning. We will pass over them as briefly as possible.Fig. 1 shows three holes asked to perform an identical task.(a) 7-ft. hole bored 2 ft. into solid ground-will not come out.(b) 4-ft. hole bored 1 ft. from solid ground-will come out easily.(c) 5-ft. hole bored to solid ground-the best that can be expected under general conditions encountered.The angle of break is a right-angle, normal to direction of hole.

Jan 1, 1944

The value derived by good mine planning is often underestimated as many mines steer their attention to the more immediate and more easily recognised successes made by the day-to-day operational æbush fireÆ fighting. Similar to machine maintenance, the efforts made to quickly rectify short-term breakdowns are well recognised; whereas the value derived from the work in planning, scheduling and undertaking preventative maintenance is not so obvious or readily quantified. Too often the focus of the business shifts to building and supporting an efficient operations team at the expense of developing a highly experienced team of mine planning practitioners that are well trained with procedures and purpose-built tools to develop optimum mining strategies. A resource has an inherent value based on its quality parameters and its likely mining conditions. How well that value can be unlocked is governed, to a large degree, by the proficiency of the mine planning practitioners, as they, essentially, set the foundation of the mine business and the path along which the mine will operate. The importance of having a well documented and procedural mine planning methodology that integrates both a thorough technical and economic understanding of the resource cannot be over emphasised. The aim of the mine planning process is to develop a robust mine design and production capability which can best cater for future uncertainty whilst providing the best opportunity to maximise cash flow into the business. The planning process must be transparent and auditable, clearly summarising the process steps and assumptions made to arrive at a justifiable and defendable outcome. To provide maximum value to the business, the planning process must be repeatable and scalable to enable easy replication throughout the different mines and projects within an organisation. The diminishing numbers of highly experienced personnel within our industry, coupled with the growing pressure to clearly demonstrate that appropriate due diligence has been exercised, means that well documented and monitored mine planning processes using purposed built and innovative tools need to be developed to ensure optimum outcomes.

Jan 1, 2009

Forty two new apatite and zircon fission track analyses on the Kubor-Marum-Bena Bena area of northern Papua New Guinea severely constrain the timing of tectonic events and hence the tectonic models for New Guinea, particularly arc-continent collision. In addition, the data can be analysed regionally in terms of known and assumed lithospheric fault zones inferred to control mineralisation (eg. Corbett 1994; Kendrick et al 1995; Hill et al 1996) to determine reactivation of these zones. When combined with the new kinematic plate models for the evolution of New Guinea (Hall 1997) there is the potential to predict likely zones of mineralisation. The low-medium grade? Palaeozoic rocks of the Bena Bena terrane yielded a zircon fission track age of 17 Ma, indicating the time of cooling below 200¦C. The age is consistent with `the shift, at about 16-18 Ma, from volcanolithic sediments to mixed provenance sediments rich in quartz and metasedimentary lithic fragments in the southern Finisterre Ranges (Abbott et al. 1994). This shift was recorded in the Sukurum Formation, which ranges in age from Middle Miocene to Pliocene with quartzose and metasedimentary grains in all samples. Although recording rocks at temperatures of 200¦C and hence depths of ---5km, the 17 Ma age suggests the Bena Dena terrane was rapidly cooling at that time due to uplift and erosion, supplying metasediments to the southern flank of the Finisterre Range, currently 100 km to the east. Significantly, the Middle Miocene Akuna Intrusive Complex, dated 14-17 Ma by Page (1976), lies almost entirely within or adjacent to the Bena Bena terrane. Potentially the uplift, erosion and cooling of the terrane at 17 Ma may have been caused by the rising plutons. If so the 800 sq km exposure Akuna Intrusive Complex at the SE end of the Bena Bena terrane may have been the focus of uplift and supplied the metasedimentary detritus to the Finisterre Range. This suggests that the Finisterre Range was not far removed from the Bena Bena terrane, perhaps less than the 200 - 400 km indicated by Abbott et al (1984). The Akuna Intrusive Complex probably resulted from subduction of the Solomon Sea Plate beneath the PNG margin. In order for the subducted slab to reach depths of -100km below the area to facilitate partial melting and plutonism (Hamilton 1994), subduction probably commenced 3-5 Ma Ma before plutonism, ie at or prior to 20 Ma suggesting a significant change in the tectonic regime at -20 Ma, perhaps related to collision of the Solomons - Ontong Java Plateau collision (eg. Hall 1997). The main result to emerge from the 28 apatite fission track analyses is that the whole of the study area underwent rapid cooling due to uplift and denudation in the Late Miocene, mainly between 7-10 Ma. Results from several samples indicate that they were not totally overprinted prior to uplift indicating maximum burial of -3 km in the Middle Miocene, assuming normal temperature gradients. The burial is less if higher gradients are assumed, allowing for Middle Miocene plutonism. The Late Miocene cooling in the Mobile Belt agrees well with the Pliocene to Recent cooling in the Fold Belt to the SW, interpreted to be due to uplift and erosion associated with fold and thrust deformation of the Miocene Limestones (Hill & Gleadow 1989). This timing relationship suggests, that compressional deformation in the Mobile Belt occurred in the Late Miocene, at 105 Ma, and that the deformation migrated towards the undeformed foreland in the southwest in the Pliocene, at 5-2 Ma. The regional Late Miocene uplift and denudation in the Mobile Belt is also consistent with that postulated by Crowhurst et al (1996; 1997) for northwest PNG, although they considered the event to have occurred mainly from 8-5 Ma. If so, then the uplift and denudation may have been migrating from east to west as well as to the south into the Fold Belt. These timing relationships place significant constraints on tectonic models for the area, indicating that the major compressional pulse in PNG commenced in the northeast at -10 Ma and migrated to the southwest and west in the latest Miocene to Pliocene. This suggests that the initial arc-continent collision and associated shortening occurred in the Late Miocene around -10-12 Ma. This immediately followed intrusion and cooling of the Akuna Intrusive Complex at -17-14 Ma and the Bismarck Intrusive Complex at -12.5 Ma (Page 1976), indicating a linkage between the end of plutonism and the start of compressional deformation. The timing is consistent with the observation of Hamilton (1994) that in areas of subduction `the common regime in overriding plates is extensional and leading edges are crumpled only in collisions. This suggests that the Middle Miocene magmatism in northern New Guinea occurred during extension above a subducting slab and was terminated by Late Miocene arc collision and resultant compression commencing at -10-12 Ma. In general, these data indicate that the acme of denudation and cooling in the Mobile Belt was in the Late Miocene, with relatively little denudation there since. In contrast, Hill & Gleadow (1989) found that the peak of denudation in basement outcrops in the Fold Belt was in the Pliocene at -4 Ma. However, in this study some samples from the Mobile Belt yielded Pliocene ages or high

Jan 1, 1997

By R Valenta

Most developing projects face a range of technical and non-technical challenges, and examination of development histories can potentially provide insights into improved approaches to project development. The Kestanelik project in the Canakkale region of Western Turkey was acquired by Chesser Resources Ltd in 2008. Turkey is a significant and growing source of gold production, with sector participation by both domestic and international companies. While the broad ranges of challenges faced by developing projects is well known, there are relatively few case studies in which the range of technical, environmental, social and governance challenges are presented in a single contribution. Recent studies of undeveloped complex orebodies have particularly shown the extent to which environment, social and governance (ESG) complexities contribute to project delays and failures. The Kestanelik project faced a full range of technical and ESG complexities, and provides an illustrative example of the associated challenges. CITATION: Valenta, R, 2018. A case study of technical, social and environmental challenges for a gold project development in Western Turkey, in Proceedings Complex Orebodies Conference 2018, pp 73–74 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 21, 2018

By S Williams, N McBride

The aim of these analyses was to utilise the latest available production information for the Wandoo operation to determine the optimal blasting parameters, costing information and predicted results (fragmentation, muckpile shape and vibration). Much of the data used as input was made available from the information gathered during the excavation of the test pits during 1995. As with any æplanning stageÆ analyses, many assumptions were required to fill gaps in the available data. The calibration of computer blasting models was conducted using data from the last of the test pit blasts (this blast was carried out in material that closely resembled rock expected to constitute the bulk of the base case design pit). This calibration was refined using observation and experience based judgements to extend the accuracy of the predictions as far as possible. All the simulations were performed assuming that the blastholes will be wet (as instructed by BGM). This has consequently determined that the appropriate explosive for the simulations and the actual blasting will be a pumped emulsion/ANFO blend. The following blast design parameters were derived by determining a likely range of powder factor (from other similar scale gold mines) with a median value of 0.62 kg/m 3 being the powder factor arrived at through the field optimisation process conducted during the test pit excavation. The total swell/displacement percentage (volume after blast/volume before blast) largely determines the diggability of a well fragmented muckpile. Consequently where fragmentation is good any reduction of total swell will probably reduce diggabilty. Any reduction of diggability can and should be traded off against increased gold recovery. In most gold mines, diggabilty will be substantially compromised at the balance which produces the most profit. When these considerations are combined with the cost to drill and blast material, processing costs and the achievement of æacceptableÆ diggibility, the analysis becomes extremely complex and qualitative. Many trends are evident including:the relationship between powder factor (for each blast design) and maximum forward displacement (throw), see Figure 1; and the relationship between powder factor (for each blast design) and drill and blast cost per BCM, see Figure 2. The following blast designs are matched to each of three ore-tonnage alternatives (as supplied by BGM) (Table 1). They are all based on powder factor of 0.62 kg/BCM and are considered optimum from a mining æpoint of viewÆ. The costing of each design includes drilling, explosives and labour cost to load, stem and tie-in holes. Using the available rock data and relying heavily on the wall exposures in the test pit(s), it is the opinion of the author that between 20 per cent to 40 per cent of the final walls excavated in the Wandoo pit would be likely to have the angle between the dominant foliation and the wall plane that is well suited to presplitting and be cost-effectively served by presplit technique. The drilling cost for 125 mm blasthole is about $11.40 per drilled metre and the cost of 40 mm presplit explosive is about $140 per 25 kg (17 metre) case. This implies that the cost to drill and blast presplit on the above parameters would be about $10.90 per square metre of presplit face. The remaining wall area would be most cost-effectively delineated using modified production blasting techniques. This requires the use of modified parameters such as smaller hole diameters, smaller spacing/ burden, higher powder factor, free face firing, less rows per blast and longer delays. These altered blast parameters would usually be applied uniformly across the entire blast fired adjacent to the wall and this ætrimÆ blast would relieve burden away from the wall, into the pit. In simplest terms, this method relies upon maximised burden relief to minimise blast energy applied to the wall. It is only applicable where the material to be blasted is waste since the throw achieved is inconsistent with ore dilution control. The largest charge weight per hole for these analyses is 360 kg and the nearest domestic structure to the proposed Wandoo pit is about 6100 metres distant. From these parameters and assuming a worst case example of rock controlled site factor, the predicted ground vibration is 0.5 mm/sec that is about five per cent of the lower limit set down in AS 2187 part two (1993). This suggests that for the current location of neighbours, ground vibration will not be an issue for the Wandoo operation.

Jan 1, 1999

By T G. Measham, D A. Fleming

When attempting to understand potential regional or community socio-economic changes that resource-extraction industries may produce, it is important to analyse the channels that promote these changes. In this study, we propose a conceptual framework to better understand how socio-economic effects are likely to emerge in regions impacted by mining. The framework considers three levels of hierarchical effects (Measham, Fleming and Schandl, 2016).In the first level, the resource-extraction industry causes four direct initial impacts on nearby communities: labour demand shock (mining employment generation), income generation (compensation to landowners and higher wages), environmental consequences and land tenure/Aboriginal issues and an increase in local tax revenues.The second level is shaped by the subsequent population increase (given by immigration of permanent or temporary residents) produced by the new levels of employment and income that resource windfalls can generate in resource-extraction regions. These increases in employment, income and population become the source for a rise in the demand for local (and non-local) goods and services.Finally, the third level is given by boomtown-like and other socio-economic effects generated from the initial effects.CITATION:Measham, T G and Fleming, D A, 2016. A conceptual framework to understand the local community/social impacts of mining, in Proceedings Life-of-Mine 2016 Conference , pp 188–190 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 28, 2016

By D Williams

Recent advances in global positioning systems (GPS), machine guidance technology and telemetry allow an unprecedented level of control of surface mining operations. GPS technology can now locate the bucket of a shovel or the blade of a dozer within 50 mm. Some of the outcomes possible are: precise selective mining û even when the ore is visually indistinguishable from waste; tracking grade and tonnage of every ore parcel through the mine; real time productivity monitoring; detailed post accident safety analysis; and tracking the movements of every piece of equipment. This paper will consider the contribution that GPS based machine control systems can make to ensuring that surface mining projects deliver the outcomes promised in the feasibility studies. Case studies of installations are presented.

Jan 1, 2003

By P Crorkan

Within the framework in which future exploitations for Codelco-Chile Divisi=n El Teniente are situated, regarding the deepening of its reserves and the geotechnical problems that affect their recovery, it becomes strategic to evolve with new variants, which make deep mining possible. Codelco ChileÆs Divisi=n El Teniente is progressing within its long-term planning the exploitation of a sector called Esmeralda, which includes its removal through the gravitational caving method (panel caving). It is planned to use pre-caving, which basically consists of developing and undermining the undercut level, without having developed the infrastructure of the production and transport levels. This is carried out in order to achieve a better redistribution of the stresses, thus obtaining higher quality in the infrastructure development of these levels as well as less risk. The extraction reserves for this area, estimated through the opportunity cost selection criteria, were determined at 348 million tons with an average grade of 1.014 per cent Cu. The project carried out geological and geotechnical studies in order to prevent the geomechanical risks of the sector to be exploited, which is a site conformed totally by primary ore. Lithologically, it occurs mainly in Andesite, located at the western limit by Brecha Braden Pipe. There are also varieties of porphyries and hydrothermal breaches of anhydrite. The Esmeralda Mine production program will increase from 4000 tpd (average) in 1998 to its 45 000 tpd rate of production estimated for the year 2005. The approved investment for the period 1995 to 1999 is $US 150 million, out of a total $US 213 million for the project. At feasibility study level and before the project, it showed a Net Present Value of $US 342 million, an Internal Rate of Return of 37 per cent and an IVAN indicator of 2.3 for a ten per cent discount rate and a copper price of 100 US cents/lb.

Jan 1, 2000

By A Chandra, P Guj

Only a few complex real options can be valued using closed-form equations, such as the Black and Scholes formula, because these algorithms are restrictive and prevent the construction of practical project evaluation models. Although a binomial lattice method paired with the ærisk-neutral probabilityÆ provides an easier and flexible modelling of exploration and mining projects, it has limitations when projects are complex, long-lived and influenced by the interplay of various market and private uncertainties. In order to overcome these limitations, modern decision tree software using dynamic programming capability can be used for real option valuations. This is a powerful computational tool in which the impact of various sources of uncertainties can be differentiated, so that the optimal decision path can be explicitly displayed visually. There has been significant academic controversy surrounding whether different real option (RO) valuation methods would lead to different real option values (ROV). This paper, using a realistic copper mining example, demonstrates that as long as the same degree of subjectivity and consistency are used in different real option valuation methods, they yield the same result. This conclusion is valid irrespective of whether the cash flow volatility generated by various sources of uncertainties is handled in an aggregated or in an explicit and differentiated manner. This paper compares two choices for an investor either to æbuy now and developÆ a project or to enter into a ætwo-year option to purchaseÆ after the proponents have developed it. It also shows how significantly different net after-tax operating cash flows may be generated by these different choices on the same underlying asset represented by the project. This is due to the difference in the amount and timing of the relevant capital investments affecting the depreciation and amortisation charges and as a consequence, the income tax paid. CITATION:Guj, P and Chandra, A, 2012. Real option valuation of mineral exploration/mining projects using decision trees - Differentiating market risk from private risk, in Proceedings Project Evaluation 2012 , pp 177-188 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

By S Chaudari, T Ren, T Harvey

Management of respirable dust on longwall face remains a challenging issue for mine operators, particularly for the new generation of thick seam longwalls. A fundamental understanding of the airflow behaviour around the shearer is critical for dealing with the dust control issue on longwall faces. Computational fluid dynamics (CFD) modelling techniques have been used in this study to conduct a detailed investigation of the air and respirable dust flow patterns around the longwall shearer. Three CFD models have been developed to represent different longwall cutting heights. The results of these modelling studies tallied well with field measured airflow data from different mines. The validated thick seam longwall face model was then used for detailed parametric studies to simulate the effect of various parameters and dust control concepts. The dust control options investigated include various spray configurations, shearer clearer, modified cutting sequences and shearer scrubbers of various capacities to minimise the respirable dust migration towards the walkway area of the longwall face. This paper presents a summary of the results of these CFD modelling investigations.

Jan 1, 2005

By G V. R Goodman, G J. Chekan, J M. Listak

The extraction and transport of coal from underground coal mines can result in significant liberation of coal and/or silica dust into the mine atmosphere. Mine operators have long used ventilating air as a primary means of diluting generated dust, removing dust from the working faces and preventing dust from reaching the minersÆ working environment. As production levels have increased, mine operators continue to be challenged in maintaining dust concentrations below compliance levels. The need for maximising the effectiveness of available ventilating air in conjunction with other effective controls, such as water sprays and dust collectors, continues to be critical to the long-term health of mine workers. The National Institute for Occupational Safety and Health (NIOSH) has conducted full-scale laboratory and mine-site research to evaluate improved application of dust controls for both longwall and continuous mining methods. A summary of recent research results and recommended practices will be provided.

Jan 1, 2005

By C M. Côte, S Worden, K Svobodova

Mines in Queensland are transitioning to the progressive rehabilitation and closure plan (PRCP) framework. Mine operators are required to select and justify appropriate and viable post-mining land uses (PMLUs) following consideration of the surrounding landscape, community views and the objectives of local and regional planning strategies. The new approach offers opportunities for considering innovative PMLU options and collaborative use of post-closure mine assets, such as infrastructure (power, road/rail, buildings), dams and residual voids. Consideration of regional planning strategies will require a shift in thinking as mine closure is regulated and planned on an individual site basis and selection of PMLUs are commonly considered from this perspective. Planning at regional rather than site-specific scale offers strategic advantages, including the ability to align PMLU selection with the regional context and stakeholder aspirations (which could foster sustainable outcomes); address cumulative environmental and socio-economic impacts; consider options that are only viable at scale (ie across larger geographic areas); establish more extensive and connected ecological habitat corridors; reinstate larger expanses of functional agricultural land; and optimise regional resources (Hattingh, Williams and Corder, 2019). This paper presents the findings from a multidisciplinary project that identified PMLU options within Queensland’s four mining regions: the North-west Minerals Province, North Queensland, Bowen Basin and Clarence-Moreton and Surat Basin (Figure 1). To enable spatial analysis at the appropriate scale and to accommodate geographic diversity, North Queensland was divided into three geographical ‘focus areas’ – Weipa, Charters Towers and Tablelands. Delineation of the areas captured most of the mines within the wider region as well as regional characteristics and features.

Aug 2, 2023