Search Documents

By Hoffmann CF, White NC, Tedder IJ, Wood DG

Since the discovery of Pajingo in 1984, the northern Drummond Basin has emerged as a significant new gold province, and has become the focus of intense exploration for epithermal gold mineralisation. Prospects in the Conway area are hosted by felsic to intermediate lavas and volcaniclastic rocks near the base of the Drummond Basin sequence. These Drummond Basin rocks appear to represent favourable hosts to mineralisation because they are cut by structures which could have focussed and channelled fluids on a regional scale, and because they constitute a possible source of gold and, perhaps more significantly, sulphur for the transport of gold. Prospects in the Conway area are up to 15 km2 in area, and are of the adularia-sericite type. They illustrate many of the classic features (siliceous sinters, alteration mineralogy, and fluid characteristics) recognised in epithermal deposits. K-Ar dating of sericite alteration in three of the prospects has produced a range of ages from 283 to 334 Ma, suggesting that the systems are the product of multiple hydrothermal events.

Jan 1, 1990

By Noakes MJ, Willsteed TV

In the past few years an elevated gold price has resulted in the evaluation of many small scale surface gold deposits in Australia typically containing about 2-3 g/t Au. Operators have tended to assume that at the lower end of the grade spectrum only heap leaching is economically possible whereas above some assumed "cut-off" grade, carbon-in-pulp or similar techniques can be considered to have economic advantages.Studies made on a number of these prospects has indicated that this rather arbitary choice of treatment method can be mis-leading.A case study has been prepared assuming a "typical" situation and is presented. The deposit contains three million tonnes of ore assaying 3 g/t Au and is amenable to open pit mining methods. The mine site is remote but accessable and existing infrastructure is minimal. There are no unusual environmental constraints.

Jan 1, 1984

By Reid JG, Cutfield S

Considerable quantities of dissolved nickel are lost in the waste liquors from the QNPL nickel treatment plant. Cementation, precipitation and ion exchange techniques were investigated to reduce this loss. Ion exchange was the most successful of the procedures studied and a process for recovering nickel from stripped ammoniacal process liquors was developed in the laboratory and scaled up to plant flow volumes. The system developed uses a carboxylic ion exchange resin operated in a completely ammoniacal cycle. The regenerant is itself regenerable using existing plant, thus the only loss is the stoichiometric value of NH4+ required to displace the exchanged cations from the resin. Existing plant sand/anthracite filter beds have been adapted for use as resin columns containing 3 cubic metres of resin capable of treating effluent at a flow rate of 6000 litres/min.

Jan 1, 1978

Robe River Iron Associates (RRIA or Robe) is widely regarded as the worldÆs most cost-effective, consistent and reliable supplier of iron ore. It has been in operation since 1972 and globally is the fourth largest seaborne trader in iron ore exporting 25.5 million tonnes of -9.5 mm sinter fines and 4.5 million tonnes of pisolite lump (-31.5 +6.3 mm) during 1999. Robe is a joint venture that controls major iron ore resources in the Pilbara region of Western Australia. ItÆs participants are North Limited with an interest of 53 per cent (65 per cent including minority interests) and Japanese companies Mitsui (33 per cent), Nippon Steel Australia (10.5 per cent) and Sumitomo Metal Australia (3.5 per cent). Robe River Mining Co Pty Ltd manages the project which is a subsidiary of North Limited and Mitsui.

Jan 1, 2000

By N Ross, N Goldup

In recent years the heavy mineral mining industry has started to look more closely at the feasibility of mining moderate to high slimes deposits. During the initial stages of orebody evaluation the primary purpose of the pilot plant is to produce heavy mineral concentrate for metallurgical evaluation. Hence, generally little consideration is given to the disposal of the waste material (slimes and tailings). This paper suggests additional, simple, low-cost, tests that can easily be incorporated into an initial pilot plant operation. With this data a more definitive evaluation of available waste disposal options can be made during the early stages of the project. Thus, permitting better project focus and utilisation of resources. These tests include free settling of slimes, natural slimes drying and consolidation (undrained and drained), tailings stacking angles, and particle size distributions of input and waste streams, etc. The objective and method of each test is summarised, together with its relevance to possible waste disposal options. The results of this preliminary testwork can later be used to expand upon and define further tests for the second phase of pilot plant operations, which will enable a more definitive evaluation of a proposed waste disposal solution.

Jan 1, 2001

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 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

Accident control has been a pre occupation of progressive industrial and mining companies for many years but few have attempted more than direct injury control. In recent years, particularly in North America, analyses of accident costs have shown that material damage resulting from accidents is usually of greater economic significance than injuries and this has led to the concept of loss control. Loss control is an attempt to take the emphasis off injury prevention and to concentrate on the basic factors which affect both the health of the individual and of the company. The deterrent to greater acceptance of this philosophy has been the apparent diffi- culties of implementing a loss control programme but Associated Minerals Consolidated Limited has adopted a simple approach. It has had a minimum disturbing effect on normal operations because existing systems have been modified to provide the new information required. It is suggested that the programme outlined is applicable to other mining ventures and is a practical method of providing benefits for both the company and its employees.

Jan 1, 1975

In order to achieve optimum results for money spent in construction of new projects there is a need for mining developers to pay greater attention to cost control. Control is achieved by establishing a frame of reference, a method of checking and a means of remedial action. The frame of reference is a well coded set of budget estimates which graduate into definitive estimates as design is completed, backed up by drawings, specifications and bills of quantities. The method of checking is provided by cost engineering and quantity surveying input, at both feasibility study and design and documentation stages. Remedial action follows if the checking process reveals a need. In large complex projects where construction completion time is often of prime importance, control of costs can sometimes be relegated to second place. To avoid this it may be necessary to include specialists in cost control in project management teams. Quantity surveyors are trained specifically in construction economics and can provide develop- ers and project engineers with valuable support at all stages of construction.

Jan 1, 1983

By Choulaj D

Mining and petroleum continue to be the two most vita components of our nation's development, says Sir Julius Char in the Australian Journal of Mining (Nov-Dec 1996). In fact the} account for 71.6% of export earnings, and 21.2% of Gros; Domestic Product in Papua New Guinea. The Misima and Porger, Mines, along with the Kutubu oil project, have essentially rescues PNG's economic viability since the loss of income from Panguna Though the industry cannot create employment in the manner o. intensive industries such as agriculture, it does provid( opportunities to local communities in terms of jobs, financia compensation, and infrastructure. Many ventures take many years and enormous capital investment to set up. There are three phases: exploration, feasibility, an( operations. The operations phase sees a massive development o infrastructure, or the actual `building' of the mine. For mining companies to commit to such lengthy time frames and high level: of investment, without returns, requires confidence and a degree of commitment from government on a number of levels - legislative stability, monitoring social development, and the provision o social infrastructure.

Jan 1, 1997

The use of the heavy media cyclone (HMC) Separation process for the treatment of ores in a particular size range is comparatively new to Australia. The paper describes briefly the principles of HMC operation. Reference is made to early development work, the pilot plant trials and the acceptance of the technique as a mineral dressing process. The Mitchell Cotts pilot plant at Amdel is described briefly and the results of test work on this unit for the processing of a wide variety of ores and ore types are given. Comments are made on the ob- jectives aimed at in the investigation and results are discussed with particular reference to behaviourial differences between ore types. The process is easy to operate, possesses a high capacity-to-unit-size rating and is capable of a high degree of flexibility. Further developments such as specially prepared and graded media for specific applications, automatic media density control and regulation of media consistency by the use of surface ac- tive agents and polymers have increased versa- tility and sensitivity of control to the point where products differing by as little as 0.02 of a specific gravity unit can now be separated with ease.

Jan 1, 1973

By Cunningham DA

Plant based on the New Jersey refluxing process has been installed at the Cockle Creek Works of Sulphide Corporation Pty. Limited to refine portion of the zinc output from the Imperial Smelting Furnace. Refining of impure zinc is effected by distillation in two stages in vertical columns compris- ing a series of superimposed silicon carbide trays designed such that ascending zinc vapours and descending liquid metal are in intimate contact. In the first stage the volatile elements (zinc and cadmium) are distilled from impure metal, condensed, and while still molten, fed to the second column in which zinc is boiled under controlled refluxing conditions to remove the cadmium content. The resultant zinc has a purity in excess of 99,995 per cent zinc. The availability of refined zinc has made possible the production of a number of zinc alloys for marketing in addition to the basis grades of zinc.

Jan 1, 1969

The Lake Rotokaua sulphur deposit, near Taupo, New Zealand, is a lacustrine sedimentary ore body, 220 acres in area and from 7 ft to 96 ft thick, containing, within the area drilled to date, some 20 million long tons of ore averaging 25% elemental sulphur in unconsolidated tuffaceous diatomaceous clay, overlain by about 120 ft of pumice sand and by the shallow Lake Rotokaua. An additional amount of perhaps 4 million tons of sulphur is regarded as probable in the area remaining to be drilled. Current economic studies cover the problems of mining an unconsolidated water-saturated formation with some residual thermal activity nearby; conservation and restoration after mining in a scenic recreation area; beneficiation of the ore and extraction of high- purity sulphur, principally for fertilizer manufacture. The deposit has additional importance as a pointer to possible further discoveries in the Thermal Region.\

Jan 1, 1971

All companies and individuals who embark on a business venture incur costs. For the most part these costs can be conveniently categorised, firstly into capital and operating costs and then into the various elements of these major cost centres. Although the nature of expenditure naturally differs as between industries certain broad cost types are characteristic of all heavy industries. The capital costs of gaining access to an orebody, equipping a new mine, building a treatment plant and perhaps refining and smelting facilities are likened to capital expenditure by a manufacturer on new plant and equipment required for an expansion or new product innovation. Similarly the day to day costs of labour and materials employed in the running of a mining operation can be likened to similar costs in other heavy industry. There is another group of costs that are not so easily categorised. Most industries incur unavoidable costs that do not form part of the direct or capital costs of physical production. These costs include taxes and other payments to government and research expenditure. The mining industry has a particularly heavy burden of non-production costs and it is the objective here to highlight and analyse a few of them. These costs are exploration expenditure, infrastructure expenditure, royalties and income tax. This is not to suggest that these are the only major non-production costs that the mining industry needs to bear. The industry may incur significant costs for environment protection, land tenure maintenance and on liaising with Government on a wide variety of matters. It is for reasons of subject manageability that the list is confined to the four costs mentioned. For the mining industry, exploration and infrastructure expenditure, royalties and income tax have several distinguishing features. Firstly, they are generally proportionately large costs. Exploration and infrastructure expenditure for example, could well exceed mine development costs. Depending on how royalties are levied, they may be very high in relation to profits earned and many in fact exceed profits. Secondly, except for income tax, they are costs that are generally not payable by other industries. Exploration expenditure is in some respects comparable with industrial research and development. However, because mines are wasting assets exploration is necessary for survival, and it is likely to form a larger part of costs per dollar of profits or sales than R&D. It can therefore be said that exploration is of far more significance to the miner than R&D is to the typical industrial company. Furthermore, unlike exploration expenditure, R&D results are transportable and patents permitting, transferable. The infrastructure burden that miners must carry is unique to the industry. Whereas urbanised industry is not usually liable for the capital cost of power, water, transport, townships and community facilities, the miner must finance these projects himself. Neither the payment of royalties, nor of course, income tax are unique to the mining industry. Royalties are more properly described as a unique charge on some primary industries but however described, they are a charge that manufacturing and service industries do not have to pay. Whilst we all pay income tax, the mining industry's uniqueness derives from the special problem that the industry has in arriving at annual net income in view of the capital intensity of the industry, partly due to expenditure on infrastructure, the indefinite life of capital equipment and its unpredictable residual value, funds expended on exploration and long lead times associated with a mine development. The third distinguishing feature of these costs is that, with the possible exception of exploration expenditure, they are heavily influenced by the policies and actions of Government. As such the industry has a responsibility to promote the industry by emphasising its potential to improve national product including exports and by requesting that the Government provide for the industry in its long term planning and seek its co-operation to prevent the industry incurring inequitable penalties relative to other industries.Finally, exploration and infrastructure expenditure are significant because they are front-end charges on a project. When due allowance is given the time value of money and the deferment of income from a mining development to which they relate, exploration and infrastructure expenditure assume greater importance than the raw money expenditure suggests. For all these reasons, exploration and infrastructure expenditure, mining royalties and mining income tax are worthy of detailed study. This is the purpose of this paper. The objective is to examine the determinants that give rise to them and provide some thoughts on their impact on on-going and potential mining developments and, where relevant, to make some suggestions as to how they may be minimised.

Jan 1, 1977

By M Grinceri

The New MetroRail City Project was completed in 2007 in Perth, Western Australia. The project included construction of two underground stations, twin bored rail tunnels of 1.4 km combined length and cut-and- cover tunnels and dive structures of about 1 km total length. It is the first major underground construction project within the Perth central business district (CBD). This paper provides an introduction to the project and describes the geology and hydrogeology of the area. Ground conditions varied significantly along the alignment from soft estuarine muds in an area of reclamation to very dense cemented sands and very stiff to hard clays. Deep foundations for the project extend down into the bedrock below the CBD, a Tertiary siltstone/sandstone. Key geotechnical hazards encountered during the project are discussed. The building protection methodology on the project is described, including damage assessment, condition surveys, monitoring and protection of key structures.

Jan 1, 2008

Surface subsidence caused by coal mining operations was the subject of a very successful symposium organised by the Illawarra Branch of the Australas- ian Institute of Mining and Metallurgy in February, 1973. This symposium dealt with the principles of subsidence and overseas experiences arising out of underground mining. Since that time the i eew South Wales Department of Mineral Resources and Development (formerly the Depart- ment of Mines) has incorporated in the approval for pillar extraction certain conditions related to the monitoring of surface movement. Surveys and plans are required to be kept at mines where total or partial extraction of coal takes place. This paper traces the monitoring of surface movement in the Northern Coalfields of New South Wales over the past ten years. Reference is made to the National Coal Board's Subsidence Engineers' Handbook (1975) and how the guidelines expressed therein have been Beneficial.

Jan 1, 1980

By Sivell W

We discuss the origin of the Patuki ophiolite complex and the Dun Mountain ultramafics of Middle Permian age in Nelson, New Zealand. It is shown that the Patuki volcanics have strong affinities with tholeiites of mid ocean spreading ridges transitional to alkaline basalts similar to those from fracture zones and ocean islands. At D'Urville Island, typically pillowed alkaline basalts enriched in rare light rare earth elements (LREE) - ophitic spilites - are associated with LREE-depleted (N-MORB-like) tholeiitic spilites with intergranular textures. The metabasalts are associated with a wide variety of sediments, and with sediments are intruded by conformable sheets of serpentinite. Coarsely crystalline mafic and plagiogranitic rocks signify vents and magma chambers, and we propose that the group developed as ocean crust from a slowly spreading mid-ocean ridge, transform association, overwhelmed at intervals by volcaniclastic sediment. Detailed mapping at a scale of 1:5000, and stratigraphic and geochemical development and structural coherence, show that the group is not melange in the Franciscan sense. The Dun Mountain Group, of serpentinites, peridotites, dunites, gabbros and other rocks, intruded the upper Patuki Group as a linear series of aligned pods and sheets. They carried up with them tectonic inclusions of older rock, which were metasomatised, and altered wall-rock, and one low angle dike passed several hundred metres into overl~ing sediment, at moderate temperatures (500 C). The rocks did not act as a floor (and alleged source) for the Patuki, but partly post-dated and were emplaced into Patuki.

Jan 1, 1987

The three systems of mining in use in the Southern Coalfield of New South Wales are bord and pillar with or without subsequent extrac- tion, longwall and shortwall. Bord and pillar with extraction is regarded as the conventional system. The application of continuous miners and powered roof supports (Shortwall) to coal min- ing has, grown in recent years from something of an oddity among extraction systems to an acceptable and viable approach in certain min- ing environments. The method can be applied in a high proportion of situations where normal pillar extraction is practised with advantages over the conventional approach. These advantages extend to both safety and efficiency aspects and also include better utilization of coal reserves. It holds hope for further gain in efficiency because its simplicity of layout lends itself to achieving the goal of contin- uous haulage towards which operators are always striving.

Jan 1, 1976

This paper will examine some of the significant developments in the training field in Australia in the past decade and the application of these changes to the mining industry generally, and the coal sector specifically. Three major aspects will be examined:1. Competency - the use of Industry Competency Standards and how these can be used for achieving enterprise performance requirements2. Assessment - making judgements about an individual's competence, and using a rigorous assessment system as the basis for the "authorisation" system at a mine3. Evaluation - ways to evaluate the return on investment in training, and convincing CEO's/shareholders that your training dollar is being spent wisely.Before examining these issues, it is important to understand the drivers of change in the training systems in Australia, and the functions that Industry Training Advisory Bodies (ITABs) perform.

Jan 1, 1998

By M Akbarpour, M Osanloo

In mining industries, materials handling costs represent a significant component of the operational cost. A variety of methods have been applied in surface mine equipment selection in order to select the suitable loading system with the lowest loading operation cost. These are queuing theory, bunching theory, linear programming and genetic algorithm. Among them, genetic algorithm is a simple method and applied for preliminary selection of the loading system. In this study, gathering information from anomaly No 2 of Gol-e-Gohar iron mine of Iran, loading system (number and its capacity) has been optimised by genetic algorithm. The study results showed that two shovels 8.25 m3 are required for the removal of 60 million tonnes of overburden. After removal overburden, these two shovels contribute to the extraction of 42 million tonnes of ore with a stripping ratio of 1:1.

Jan 1, 2007