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By A Trench, S Ulrich, S Hagemann

A synthesis of reported All-In Sustaining Costs (AISC) for 57 Australian gold mines in the period 2014–2016 reveals for the first time the clear influence of grade upon cost performance, most evident in gold-only underground mines. Past syntheses of costs on a single quarter basis have viewed grade as potentially subordinate to other factors such as production scale, mine geometry, mineralisation style and a combination of other mining-related costs. Better understanding of the grade to cost relationship on both an individual mine and whole-of-portfolio portfolio basis is needed. Insight into the roles and trade-offs between other cost-determining factors will aid the future sustainability of the gold mining sector in Australia and assist in targeting prospects for future resource growth and development. While the overall trend is toward higher-grade mines displaying lower costs and vice versa, the grade to cost functions appear radically different between mines based on time-series data. The median cost of Australian gold production in the final quarter of 2016 was A$1081/oz. The threshold for lowest cost quartile production was A$965/oz. Underground production now dominates Australian gold output – with 71 per cent of ounces originating from operations that are either entirely underground or hybrid pit/underground mines. Scale economies are evident, with smaller mines predominately among the higher cost producers. For mines of equal grade, open pit mines are lower cost than underground operations. Reserves are modest, with a median mine life for underground operations of 4.7 years based on current production rates. Reserve additions at mines are likely constrained not only by the finite nature of mineralisation at each mine but also by the geometrical difficulty of accessing suitable drilling locations to test for reserve extensions.CITATION:Ulrich, S, Trench, A and Hagemann, S, 2017. Towards an understanding of production costs at Australia’s underground gold mines, in Proceedings 13th AusIMM Underground Operators’ Conference 2017, pp 241–250 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 16, 2017

By Forrest T. Moyer

The National Safety Competition was inaugurated in 1925 by the Bureau o1 Mines, U.S. Department of the Interior, in cooperation With the Explosives Engineer. In the first nationwide contest, 210 mines and quarries were enrolled. In 1962, the thirty-eighth anniversary of the competition, 910 mines and quarries were enrolled. These participating plants were worked a total of 133,292,989 man-hours. Of the enrolled plants, 415 achieved injury-free operations tar the year, the largest number of perfect safety records in the history of the contest. In 1961 and 1962, the National Safety Competition was conducted and sponsored by the Bureau of Mines. In January 1963, the American Mining Congress became a cosponsor and participated with the Bureau in the award activities related to the 1962 contest. The basic purpose of the competition is to stimulate employees to work safely and too give impetus to the building of better accident-prevention programs. A well-designed and efficient safety program helps a company economically by cutting costs, preventing damage to equipment and materials, and reducing nonproductive delays. An effective safety program benefits the employee more directly because his injuries cause personal suffering, lost time, and lower living standards for his family. Since both have much to gain, management and workers should cooperate closely to eliminate disabling work injuries. The greater contest participation and the larger number of perfect safety records indicate increasing safety consciousness on the part of management and employees.

Jan 1, 1964

By E. M. Frost

"A new apparatus has been devised for quickly and precisely analyzing natural gas for its helium content. The following outstanding advantages make it far superior to any equipment now available for the purpose.3/4/5/6/1. It enables more rapid determinations to be made.2. It has far greater sensitivity than previous apparatus. 3. It is portable.Fifty or more samples may be analyzed in an 8-hour day with the new apparatus and procedure. A maximum of about 10 samples per day could be analyzed with previous apparatus. In the apparatus described, the volume of pure helium obtained from a sample is determined by measuring the pressures created by that pure helium when it is expanded into a constant calibrated volume. In older methods the pure helium separated from a sample is pumped into a burette and measured at atmospheric pressure. The new apparatus and Procedure used with it reduce the average time for an analysis from about 40 minutes to less than 10 minutes,Samples containing a few thousandths of a percent helium may be analyzed as readily as samples containing 1 percent or more, This was not possible with former apparatus. Duplicate samples containing a few thousandths of a percent helium have been analyzed, results checking to one ten-thousandth of a percent. Attempts to measure a corresponding volume of helium in a burette at atmospheric pressure become futile. The ability to determine very small quantities of helium has become of great importance recently in gas- and oil-field engineering studies such Os the utilization of helium as a tracer gas in following the movement of gases through underground structures.A complete apparatus was recently carried more than a thousand miles in a passenger automobile. It arrived without breakage, was .set up and ready to make an analysis in a few hours. .Former apparatus was not portable. The portability of the present apparatus permits taking the apparatus to the field for more efficient prosecution of field engineering problems. The only services required in the field are electricity, tap water, and a source of liquid air or liquid nitrogen.The principle involved is based upon the fact that large volumes of all the constituents usually found in natural gas, except helium, are adsorbed quantitatively on cocoanut charcoal that has been cooled to the temperatures of liquid air. A volume of sample is measured and transferred to a tube of cocoanut charcoal maintained at the temperature of liquid air. After adsorption of all the constituents other than helium, the charcoal tube is connected to a sensitive pressure-measuring device, and the Percentage helium originally in the sample is calculated from two pressure readings and the volume of the original sample."

Jun 1, 1946

By James Rowland, Marcia Harris, Richard Mainiero

This paper reviews the potential hazards posed by the toxic fumes produced by detonating explosives in surface mining and construction operations. Blasting operations produce both toxic and nontoxic gaseous products; the toxic being mainly carbon monoxide (CO) and the oxides of nitrogen (NO x ). The quantity of toxic gases produced by an explosive is affected by formulation, confinement, age of the explosive, and contamination of the explosive with water or drill cuttings, among others. Techniques to protect workers and the public from the potential hazards of explosive-related toxic fumes are discussed.

Jan 1, 2007

By Forrest T. Moyer

The National Safety Competition was inaugurated in 1925 by the Bureau of Mines, U.S. Department of the Interior, in cooperation with the Explosives Engineer. In the first nationwide contest, 210 mines and quarries were enrolled. In 1962, the thirty-eighth anniversary of the competition, 910 mines and quarries were enrolled. These participating plants were worked a total of 133,292,989 man-hours. Of the enrolled plants, 415 achieved injury-free operations for the year, the largest number of perfect safety records in the history of the contest.

Jan 1, 1964

By Robert A. Cummings

A rock mass classification system has been developed for recommending drift support requirements in block caving mines. This development follows a two-year program incorporating field observations of support practice and performance in rocks of different classes, at several U. S. block caving mines. Popular rock mass classification systems presently in use for tunneling were applied at the various field sites; and were evaluated for conformance with caving mine support requirements and for general utility to caving mine operations. The developed system (MBR System) accepts readily-obtainable engineering and geologic data to yield a rational estimate of support requirements. The background and development of the MBR system is described in this report (Volume I). The use of the system is given in the Manual, a separate volume (Volume II).

Jan 1, 1984

Underground coal mine tracked vehicles have been studied to determine the state of the art and how brakes might be added to the coal haulage cars. Specific areas of interest are: brake sys terns, couplers, car trucks and car handling procedures. Problems related to adding brakes to the haulage cars appear to be: the limited amount of room to mount the brakes on the cars, brake line connection between rotary dump cars, achieving desirable braking characteristics without over complicating the system and keeping the installation cost to a reasonable figure. This document combines the information contained in the first issue of the "State-of -the-Art of Underground Coal Mine Tracked Vehicle Brake Systems," BRL Report No. 6080, with that contained in a subsequent monthly report.

Jan 1, 1973

A banquet, attended by 467 members and visitors, was held at the Wanderers Club, Johannesburg, at 8 p.m. on Friday, 21st March, 1969, to celebrate the 75th Anniversary of the founding of the Institute. Introduction of Dr Carel de Wet R. C. J. Goode (President) Dames en here: Ons het 'n aantal vooraanstaande gaste in ons midde vanaand en mnr Maxwell sal u later meer van hulle vertel. Dit is my aangename plig om u voor te stel aan sy Edele, die Minister van Mynwese, van Beplanning, en van Gesondheid, Dr de Wet en sy gade, mev de Wet. Sy Edele Dr de Wet het geen bekendstelling nodig nie-alhoewel hy ons minister vir slegs die afgelope twee jaar is, het hy reeds talle funksies van ons Mynbedryf bygewoon en het baie vriende gemaak onder ons. Hy het homself baie bemind onder ons gemaak toe hy Wes-Driefontein onlangs besoek het om hulle ondersteuning en aanmoediging aan te bied in hulle uur van nood. The Honourable Dr de Wet was born in the Free State. He is a grandson of that very famous general Christiaan de Wet, who caused so much pain to the British forces and for so many months so successfully eluded them in the Transvaal and Orange Free State. He was educated at both the Pretoria and Witwatersrand Universities. He first practised medicine at Boksburg and then moved to Vanderbijlpark, so you see he has an early association with gold mining on the Witwatersrand, and in moving to the Vereeniging-Vanderbijlpark district he became closely involved in our coal mining and metallurgical industries. South Africa's first steel was poured from a l0-ton open hearth furnace belonging to the Union Steel Corporation in Vereeniging in 1913. Dr de Wet has been mayor of Vanderbijlpark and for several years has been their member of parliament. More recently, the Honourable Dr de Wet has filled with great honour that most important office of Ambassador for the Republic of South Africa in London. At present he wears two hats, in that he is Minister of Planning and of Health, but more important is his cloak, that of Minister of Mines, which I trust offers him the greatest comfort. To fulfill these three arduous tasks must demand of him a terrific devotion to duty, and in doing this he carries on that loyal tradition of service to his fatherland so evident in his grandfather. Dames en here, dit is vir my 'n groot genoeë om Sy Edele Dr de Wette vra om 'n heildronk in te stel op die Instituut vir Mynwese en Metallurgie. Toast to the Institute of Mining and Metallurgy Dr the Honourable C. de Wet (Minister of Mines): Mr President, ladies and gentlemen, Mr President you have introduced me gracefully to this distinguished company and I am appreciative of your remarks. I am fully conscious of the responsibilities that devolve upon me as Minister of Mines in a country where mining makes so vital a contribution to economic progress and development and has, in fact, laid much of the foundation on which our present proud edifice is built. The achievements of the mining and metallurgical industry in its diversified activities arouse feelings equivalent to paternal pride, but let me speedily add that in considering any family relationship that may exist, the Minister of Mines should not be regarded in the role either of a fairy godmother or an indulgent father.

By M. Grave

Rock Engineers are required to design safe cost effective support systems and stoping layouts for their respective mines. As each stope has its own unique environment, continual re evaluation is required in all stopes to maximize extraction and achieve value from the support standard. This paper presents numerical modelling used to plan early mining within the shaft pillar and a reevaluation of an existing stope support standard.

Jan 1, 2009

By Larry M. Southwick

Extraction of gold and other metals from ores suspended in liquid slurries often involves gases (such as oxygen) as a participant in the reaction. An important factor then in setting the rate of extraction can be mass transfer of the gas into the liquid and/or solids. A number of recent studies have indicated that as solids loadings increase, mass transfer rates of gas into solid-liquid mixtures decreases. This would seem to imply that lower solids loadings would be beneficial to increased reaction rates. However, since it is the solids which are being reacted, a most intriguing paradox is created. More solids should lead to more surface area to react, but it seemingly also provides less gas to react. So is the reaction faster or slower as solids loadings increases? The creation of this paradox is imbedded in how mass transfer and reaction data is collected and measured, how it is analyzed and correlated, and finally on the rate controlling steps in the reaction. An alternative analysis of these studies is presented which clarifies and eliminates the paradox. The analysis applies to water slurries as used in gold or other metal leaching processes or in bio-hydrometallurgy, as well as to molten metal/solid/gas mixtures such as might be encountered in submerged gas injection.

Jan 1, 1999

By Klaus L. Cappel

In 1972, the Bureau of Mines of the U. S. Department of the Interior commissioned the development and design of a Simulator for research and testing of mine roof supports used in long-wall mining. The purpose of the Simulator is to reproduce forces and displacements of a section of a mine roof in contact with one or more supports. This report is an account of the design process that resulted in the final configuration of the Simulator presented here. It includes discussions of engineering considerations that led to major changes in important details of the Simulator. These changes, however, did not substantially alter the basic design originally proposed, except for the elimination of certain originally-specified features that were adjudged as insufficiently cost-effective by both the Bureau of Mines and the design agent at an intermediate stage of the design.

Jan 1, 1974

By Paul B. Queneau

Formulation and commercial utilization of solid-waste incinerator slag by-product is the focus of this paper. Particular attention is given to iron aluminosilicate melts having compositions similar to that of nature's basalt The earth?s crust can be viewed as an environmental laboratory for predicting stability of various silicates; small-scale laboratory experiments are necessary to confirm findings there from. An ideal slag consumes flux additives at acceptable cost, is compatible with furnace refractory, flows readily from the furnace, and has physical properties suitable for its commercial utilization -all within the critical constraint that the slag is environmentally stable. Examples of successful solid waste slagging practice, including tonnage, utilization and pricing, are provided from metallurgical and waste treatment operations of North America. Western Europe and Japan.

Jan 1, 1991

1. Domestic Production and Use: In 1984, 12 companies operated 27 primary aluminum reduction plants, with 3 firms accounting for 57% of production. Washington, Oregon, and Montana accounted for 35% of the production; Indiana, Kentucky, Missouri, and Tennessee 25%; Alabama, Arkansas, Texas, South Carolina, and North Carolina 20%; other States 20%. Based on published producer prices, output of primary metal in 1984 was valued at $7.2 billion. Aluminum consumption by 25,000 firms was centered in the east-central United States. Packaging accounted for an estimated 35% of domestic consumption in 1984, transportation, 20%; building, 18%; electrical, 9%; consumer durables, 8%; and other uses, 10%.

Jan 1, 1985

By Frank A. Peters

An evaluation is made of a lime-soda sinter process for extracting alumina from clay. In this process, alumina is extracted by sintering clay with soda ash and limestone and then leaching the sinter with a dilute sodium carbonate solution. The sodium aluminate solution formed during leaching is separated from the residue and treated with lime in autoclaves to remove dissolved silica before alumina trihydrate is precipitated with carbon dioxide. The tri-hydrate is then calcined to a-alumina. Two options, dry grinding and wet grinding, are used in the sintering step. The fixed capital costs for plants producing 1,000 tons of alumina per day are $72 million for the dry grinding option and $66 million for the wet grinding option on a Marshall and Stevens chemical equipment index basis of 240.0. Specific geographic locations of plant and raw material sources are not assigned, but, since this process requires large quantities of both lime-stone and clay, the plant site is considered as variable with relation to the clay mine and limestone quarry. A nomograph is given to find operating costs at various delivered costs of clay and limestone. If the plant is located nearer the limestone quarry so that the delivered cost of clay is $2 per ton and the delivered cost of limestone is $1 per ton, the operating costs are $76.47 and $71.61 per ton of alumina for the dry grinding and wet grinding options, respectively. On the other hand, if the plant is located nearer the clay mine so that the delivered cost of clay is $1 per ton and the delivered cost of limestone is $2 per ton, the operating costs are $80.15 for dry grinding and $75.34 for wet grinding.

Jan 1, 1967

By Gale L. Hubred

Kennecott?s Ledgemont Laboratory developed the Cuprion Process to recover metal values from manganese nodules in the early 1970s. A reducing leach of monovalent cuprous ion attacks the manganese oxide matrix, converting the manganese dioxide to manganese carbonate and releasing the copper, nickel, cobalt, and zinc as ammine complexes. Cuprous ion is generated by contacting leach liquor with carbon monoxide. Copper, and nickel, are recovered by solvent extraction and electrowinning. Cobalt is precipitated as cobalt sulfide and recovered as cobalt powder. Manganese, molybdenum, and zinc can be recovered optionally but have not been included in this process. Kennecott authors have described aspects of the process, but the Cuprion process has not been revealed except in patents. Tables are included for capital and operating costs and revenue. Even though economic recovery of nodules is not anticipated in the foreseeable future, some of the process steps may have application in other places. The Ledgemont Laboratory was a unique operation we think worth documenting. The report is based upon work done up until the mid 1970s. The report represents the work of the entire Kennecott nodule team. It is this author?s intention to save this result and credit the work of that nodule team. The paper is dedicated to the memory of Dr. Herbert Barner, a key member of the team who died in 2003.

Jan 1, 2005

By John H. Soule

The Torpedo Copper mine in the Organ Mining District, Dona Ana County, N. Mex., was discovered In 1899. Production was begun immediately and continued until 1907. Since 1907 very little ore has been produced, although Many individuals and companies have been interested in the property at one time or another. Approximately 6,621 feet of diamond-core had been completed on the property before 1949. The results from some of this drilling were unsatisfactory because of the poor core recovery. In addition to its investigation of the Torpedo ore deposits, attention was given by the Bureau of Mines to obtaining better core recovery through the use of special equipment and techniques. This project was begun October 3, 1949, and was completed April 30, 1950. Four diamond-drill holes totaling 2,140.5 feet, which includes 18.2 feet of overlap in a deflected hole, were drilled. All drilling was done with a Government-owned hydraulic-feed drill with some special rods and core barrels, in addition to the usual equipment. The over-all core recovery was 89.5 percent. Omitting the drilling in overburden where little or no core was desired, the recovery was 94.6 percent. Core recovery in the ore zones averaged 95.2 percent. This paper describes the location, the general features of the area, the geology, the Bureau of Mines procedures, and the results attained by these procedures.

Jan 1, 1952

By E. P. Carman

This report is the 19th in a series summarizing Bureau of Mines research and technologic work on coal and related investigations. The first 17 reports covered fiscal years; however, the 18th report3/ covered the 18 months from July 1, 1952, to December 31, 1953, to permit the publication of this and subsequent reports on a calendar-year basis. Most of the material in this report relates to publications by Bureau authors issued during the reporting period. Some work is referred to on which the results have not yet been published or may not be published for security or other reasons. In a few instances publications are mentioned that were issued before the reporting period but were not included in previous reports. Further details on the published work described herein may be found in the publications cited in the footnotes. Research and technologic work on coal by the Bureau is directed toward developing and encouraging increased conservation of coal resources through safer and more efficient mining, preparation, and utilization. Significant advances were made during the year in these fields, particularly in coal-mine safety and in preparation and utilization of the various ranks of coals.

Jan 1, 1956

By Scott W. Hazen

METHODS of determining the grade and tonnage in a mineral deposit have not kept pace with scientific developments in certain other fields. The most commonly used methods of computing ore reserves and grade based on diamond-core-drill sampling are the cross section, the polygon, and the triangle. Tonnage and grade may be determined by these methods with acceptable accuracy, providing a sufficient number of samples is obtained; however, there is no means of determining when an adequate number has been taken or conversely if the deposit has been sampled excessively. It is demonstrated that, by using the techniques of statistical analysis, a mining engineer will be able to determine when a sufficient number of samples has been taken to determine the grade of a mineral deposit within a specified degree of confidence. Using statistical analysis to compute the estimated average grade of the ore makes it possible to compute a fiducial interval, when a distribution of the sample means is normally distributed, so that there is 95-percent confidence in the statement that the true average grade of the deposit is covered by the interval. This report utilizes data obtained from the Maggie Canyon manganese deposit, Artillery Mountains region, Mohave County, Ariz. Four separate exploration projects were conducted at Maggie Canyon between 1936 and 1950. Present economic conditions have made it desirable to determine the amount of 5-percent manganese ore developed by these projects.

Jan 1, 1957

By Kai Nielsen

The paper presents the results of several industrial and laboratory blasting, crushing and grinding tests and experiments investigating how blasting can influence the subsequent crushing and grinding operations. The paper also describes how these results can be used in order to optimize the entire comminution process from solid ore to a semifinished or marketable product. Two cases are presented, one looking at the processing of fine grained taconite ore, and the other discussing the processing of raw milling product for cement burning.

Jan 1, 1998

By B. W. Gandrud

This report, consisting mostly of float-and-sink data and washability curves, has been prepared in connection with an exhaustive study of coal preparation in Alabama conducted, by the U, S. Bureau of Mines and the University of Alabama with the cooperation of the different coal operators On the basis of the float-and-sink data, an attempt has been made to determine approximately the extent of ash and sulphur reduction obtainable under given conditions on coal from the mines which were sampled, In the coal-producing districts of Alabama a great deaf of attention has been given in recent years to the problem of improving preparation methods so as to obtain from various coal beds the best possible grade of washed coal. This is especially so where the washed coal is used for the making of metallurgical coke in by-product plants or where there are possibilities of using the coal for this purpose. In the manufacture of metallurgical coke, the sulphur content of the coal is a very important consideration. It is quite often the determining factor as to whether or not a certain coal can be used for coke making. In the studies which form the basis for this report, all samples have been analyzed for sulphur in order to obtain information regarding the possibilities of sulphur elimination as well as ash reduction, and the samples on which reports are made were obtained from beds that are characterized by rather high percentages of sulphur. In connection with the present investigations of coal preparation in Alabama a standardized method of interpreting float-and-sink data has been used extensively for predicting the ash and sulphur reduction and yields obtainable in a commercial washing plant from various sizes of raw coal and from the raw coal as a whole after a certain degree of crushing. This method, which will be explained in subsequent chapters, was used in interpreting the data contained in this report. The samples used for these washability studies were obtained from the following mines in the Warrior field of Alabama: Beltona mine on the Jefferson bed; Dolomite and Mulga mines on the Pratt bed; Coal Valley No. 163 and Coal Valley No. 11 mines on the Corona bed; Cedar Cove mine on the Carter bed.

Jan 1, 1932