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By J Cronin

For the last decade, we have read about the great technical innovation that is coming to the mining industry that will increase safety and productivity. There is consensus that it will be a technical innovation that will produce a step change in mining costs and outputs (as opposed to bigger machines or less people); however, this innovation (while freely available) has not taken hold in the industry. While there are a few mines that have embraced technology, the majority of underground mines simply do not have the expertise or technical capability to implement innovation and automation.With unexploited mineral deposits becoming deeper and more remote, and thus more hazardous to mine, telepresence offers the ability to remotely execute production tasks while separating personnel from hazards. As the technologies required to deliver telepresence mature, the potential for there to be no personnel underground during production activities is becoming a reality (the ‘dark factory’). So significant is the capacity of telepresence to mitigate risk, it is proposed that it be included as a separate entry in the hierarchy of hazard mitigation controls.Technical innovation such as the optimised short-term interval control of the production process and the automation of underground mobile fleets offer significant increases in production along with lower operating costs. This paper explores the most critical components for the successful implementation of technology in underground mining; redundant, robust and high-bandwidth communications networks to carry data from distributed networks of smart sensors and to convey teleoperation commands; and high-definition video to provide operators with detailed, real-time data. The days of analogue ‘leaky feeder’ as a base case for communications are over. The human resources required to support the expected wave of innovation are significant and will be difficult to maintain in remote areas as the same skills and expertise are in demand in other industries.The paper highlights barriers to innovation in the mining industry, and a lack of technical and scientific expertise within the industry to be able to identify, implement and manage technologies that can increase safety and productivity. As well, an over-reliance on basic net present value (NPV) financial analysis that is used in the industry punishes investment in technology (capital expenditure; CAPEX) and accepts higher operating expenditure (OPEX) due to the discounting of future savings in operating costs.CITATION:Cronin, J, 2017. Telepresence – the application of remote control and automation technologies for increased safety and productivity, in Proceedings 13th AusIMM Underground Operators’ Conference 2017, pp 213–224 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 16, 2017

By M Logsdon, B Johnson, M Fordham

The underground Neves Corvo copper-tin mine in southern Portugal currently disposes of its tailings in a ætraditionalÆ wet tailings impoundment. With the development of new technologies for preparation and transport of thickened tailings or paste, alternative tailings disposal options have become available that provide a more sustainable water management system and a higher degree of environmental protection. In addition, growing European resistance towards subaqueous disposal may well result in mandatory use of dry disposal methods in the near future. Twenty-four tailings disposal alternatives were evaluated through a cost-effective and easily-implementable bench-scale geochemical screening program conducted at site. Since the tailings are pyrite-rich and highly acid generating, particular emphasis was placed on monitoring likely indicators of sulfide oxidation under the various simulated disposal scenarios. Dependent parameters investigated as part of the program included moisture content, use of alkaline additives (lime, cement), use of a bactericide, and agitation. Response parameters included paste pH, specific conductance, and temperature as indicators of oxidation. The testing was carried out for 30 weeks. Results indicate that a number of relationships between the geochemical stability of the samples (ie sulfide oxidation) and sample characteristics can be readily identified. Based on the results of the screening program, a limited number of tailings mixtures have been selected for further long-term testing in field weathering cells to aid in the identification of the optimal mix design for future tailings disposal at the Neves Corvo Mine. This type of testing provides an inexpensive and reliable methodology for semi-quantitative comparison between tailings disposal alternatives, in particular at locations where more rigorous evaluation through long-term, fully replicated testing is not immediately feasible.

Jan 1, 2003

By D R. Swinbourne, T Lehner

Study of the distribution of minor elements between copper matte andfayalite slag is important in determining appropriate methods tomaximise the recovery of valuable metals and the rejection of harmfulelements. Boliden Mineral AB operate a large copper smelter in northern Sweden, where they had noted that the loss of silver to the slag in the settling furnace appeared to be a direct function of the tin content of the slag. This work was aimed at determining whether or not this was a cause-and-effect relationship. Copper matte containing approximately 50 wt per cent copper and small amounts of silver and tin was equilibrated with silica-saturated fayalite slag at 1250¦C, then quenched. The matte and slag were then analysed for their silver and tin contents. It was found that there was no relationship between the silver distribution and the tin distribution. The silver matte/slag distribution ratio had a value of 120 ¦ 40 while that for tin was 2.8 ¦ 0.3. It is suggested that the most likely cause of the relationship observed at the Boliden smelter was matte entrainment in the slag.

Jan 1, 1999

By L Lorenzen, H Muller, L Bernard

Australian companies and consultants are becoming ever more involved in projects in African, South American, East European and Middle Eastern countries. However, significant differences in culture and approach to projects sometimes make these projects challenging for reasons that are not purely technical. Often the challenges are rather related to how the project owner and local authorities perceive the reality. These perceptions and sometimes unrealistic expectations regarding project costs and potential outcomes need to be addressed by the æWesternÆ project developer and consultant.This paper will discuss the specific experience of Snowden in studies commissioned by companies from such countries for the development of very large, low-grade gold deposits in some of the most inhospitable areas in the world. The paper will further review similar projects undertaken in other ænew worldÆ countries and compare these to the initial Snowden experience.As the process operating costs of operations in many of these countries are extremely competitive when compared to the typical Australian operating costs, the paper will review the operating costs and the factors which may be pertinent to a large project of this nature, both in the Australian and the ænew worldÆ context. Will Australian-based operations be able to compete in the global gold market when the gold price softens again, as it will do at some stage in the possibly not-so-distant future?CITATION:Muller, H, Lorenzen, L and Bernard, L, 2013. Challenges of developing low-grade deposits in ænew worldÆ countries from a mining consultantÆs perspective, in Proceedings World Gold 2013 , pp 307-314 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 26, 2013

The following paper outlines the types of employment immediately available to graduates following their university degree, a discussion on mine manager requirements, mentions career advancement and time frames to achieve this as well as providing some key information regarding student vacation work. The author hopes to educate present graduates, as well as inform students of characteristics to develop the most opportunities in life.

Jan 1, 2006

By J M. Wallis

Heavy mineral sand exploration drilling prior to the 1970s generally utilised open hole auger and air-blast type drilling. However, mining reconciliations were poor and limitations on accuracy and precision of drilling results were severe.Working with the exploration companies, Wallis Drilling principals designed various systems, including what was termed the ‘Eneabba System’ and then the ‘Capel Twin-Tube System’. Eventually the company with its improvements developed and patented the Aircore Drilling System.Aircore drilling has subsequently become recognised as an excellent drilling system for exploration and mine-sample drilling that gives good precision and accuracy in sampling both above and below water. Its use has also been extended to many other commodities and is used in a number of overseas countries.This paper documents anecdotally the development of the system, identifying problems encountered during the times it was evolving and of the means to overcome the problems as being the documentation of the story by the inventors and developers in Wallis Drilling Company. Aircore drilling system is a Western Australian technological development owing its existence to the designing and incorporation of a number of discrete improvements along the way and recognises the tenacity and inventiveness of all who contributed to the system, in both Wallis and also in a number of companies that gave the impetus to succeed.

Oct 5, 2011

The An Shan iron ore deposit is the biggest low-grade oxidised iron deposit in China. Over the past ten years, about 120 SLon verticalring-pulsating high gradient magnetic separators units have been installed in An Shan to process oxidised iron ore. This paper describes how several plants have upgraded their old technologies to new technologies with SLon magnetic separators as the key equipment for controlling tails grades, including using reverse flotation as the key technology for iron concentrate cleaning, These plants have been modernised with beneficial results at low cost.

Jan 1, 2009

By R J. Goldfarb, A B. Christie, D I. Groves

Small orogenic gold deposits have the same deposit-scale geological and geochemical features as those that characterise giant orogenic gold systems (>16 Moz Au). Therefore, a broader-scale approach is needed to identify the critical controls on giant deposits and their disproportionate distribution throughout time and space. Ages of giant gold systems cluster around well-defined periods of lithospheric growth at continental margins, and it is orogen-scale processes during these Late Archaean, Early Proterozoic and Phanerozoic times that determine gold endowment of a province.   A critical factor for giant orogenic gold provinces appears to be asthenospheric upwelling at the time of gold mineralisation to most effectively transfer the thermal energy required to initiate and sustain high hydrothermal fluid flux. The extent of this fluid flux should be related to thickness of the lithosphere beneath a province at the time of gold mineralisation, such that giant gold deposits are much more likely to develop in orogens with oceanic or thinned continental lithosphere. A proxy for the latter is likely to be a short premineralisation crustal history such that thick subcontinental lithospheric mantle was not developed. Conversely, orogens with protracted premineralisation crustal histories are more likely to have a thick subcontinental lithospheric mantle, which is difficult to delaminate and, hence, such provinces will normally be poorly endowed. The nature of the lithosphere also influences the intrinsic gold concentrations of potential source rocks, with back-arc basalts, transitional basalts and basanites enriched in gold relative to other rock sequences. Thus, segments of orogens with thin lithosphere may be defined by conjunction of giant-scale fluid flux through gold-enriched sequences.   Although the nature of the lithosphere plays the crucial role in dictating which orogenic gold provinces will contain one or more giant deposits, the precise siting of those giants depends on the critical conjunction of a number of province-scale factors that control fluid conduits, traps, and seals in tectonically and lithospherically suitable terranes within accretionary orogens.

Jan 1, 2005

By T Berryman, C Adams, L Griesel, C Buxton

The Kalgoorlie Consolidated Gold Mines (KCGM) schedule model is used for short- to medium-term planning and scheduling at the Fimiston Open Pit Mine (the Superpit). The model bridges the gap between grade control models, which are generated one to seven days prior to mining, and the annual Resource and Reserve model update that is used for budget and life-of-mine plans. The schedule model uses close-spaced grade control data (up to 20 000 m drilled each month) as well as resource definition drilling to estimate production volumes three to six months ahead of current mining. From this, a rolling 12 week mining and processing schedule is generated on a monthly basis. As the KCGM operation is mill and sulfur constrained, the schedule model needs to be an accurate predictor of ounces as well as tonnes, gold and sulfur grades. The process must also be time efficient in order to meet monthly planning and reporting deadlines. Due to the large amount of new data generated each month, model updates using conventional interpretation and estimation techniques have proven to be impractical and too time consuming. This paper will examine the evolution of the Superpit schedule model process over time, recent improvements and the effect of different model outcomes on short- and medium-term mine planning.CITATION:Griesel, L, Buxton, C, Adams, C and Berryman, T, 2014. The superpit schedule model – A time-efficient data-driven estimation for short- and medium-term planning, in Proceedings Ninth International Mining Geology Conference 2014 , pp 397–410 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 18, 2014

My roots span four generations. My great grandfather, Christian Frederick Fisher, along with twenty-one others was drowned in the New Australasian mine disaster at Creswick in Victoria in 1882. My grandfather, also named Christian Frederick Fisher, escaped and then followed a career of shaft sinking for large companies and operating small mines (very unprofitably according to my father) when funds allowed. My father, an excellent practical mining and mechanical engineer, was also a small miner and my early entry into the industry was, like many before me, very basic. My introductions to the business end of a No. 4 shovel, drilling with hand steel and later with jack hammers without the benefit of airlegs, feeding heavy cordwood to hungry boilers and felling trees for mine timber soon dispelled any illusions I had that mining was a bed of roses.Before it became well known I knew "Life was not meant to be easy".In a family-owned small gold mine in a remote part of Cape York Peninsula in far north Queensland I was fortunate in obtaining an excellent grounding in reef and deep alluvial mining. Operating in vertical and underlie shafts the variable ground conditions often required close timbering. Steam pumps were used underground and steam winders for hoisting.The complete absence of municipal or government infrastructure in this remote mining field threw responsibility on each mine operator to be self-sufficient, and responsible for mine development and installation of crushing and milling equipment, accommodation and water supply. Conditions, although harsh, were acceptable in the 1930s, and fostered great self-reliance.The first crushing from our Black Cat Mine in 1935 returned nearly 200 oz from 10 tons of ore. Gold was then worth $13 an ounce compared to about $400 an ounce today; but in those depression years of the 1930s our operation was profitable.This basic education not only returned dividends when confronted with difficult mining problems, but created a deep respect for the miners who develop the small mines and who continue to contribute to the industry today, often under difficult conditions.Australia and mining are synonymous. The industry has been immortalised by the famous historian, Professor Geoffrey Blainey, in his book "The Rush that Never Ended".Initial gold discoveries were concealed and exploration was frowned upon by authority as being disruptive to early rural development. But with the discovery of gold in the Bathurst area of New South Wales by Hargreaves in 1851, the rush to the gold fields began followed by an influx of migrants. The traumatic effect on industry and society that followed, created the pattern of the love-hate relationship that at times became temporarily submerged, but is so evident today.In the harsh economic climate of the 19th century with low wages and no welfare, the opportunity to wrest riches from the earth was literally "rushed" by the adventurous, the poor, the rich, people from all walks of life. Pressures developed on preFederation Governments to provide law, order and infrastructure to the rushes that have never ended.

Jan 1, 1984

By C Balci, D Tumac, A Sheterpour-Mamaghani, E Dogan, A Kocbay, T Erdogan, A Gumus, H Copur, E Altintas

Excavation of vertical and/or inclined shafts in the underground structures requiring careful design and planning. Raise Boring Machines (RBMs) are commonly used for excavation of shafts for different purposes such as ventilation, orepass, and human-material transportation. Proper selection and accurate performance prediction of RBMs are two main parameters affecting the cost estimation and planning/scheduling. Indentation test is one of the most preferred methods that can be used to predict advance rate of RBMs. This study aims at suggestion of new prediction model for instantaneous penetration rate of RBMs based on indentation tests. Different rock (core) samples (with different geological origins) are obtained from the raise boring application projects in Turkey; then, the indentation tests are carried out on them by using a real-life insert (button), which is used in reamerhead cutters investigated in this study. Finally, the statistical relationships between the field performance and the indentation indices are investigated. The study indicates that the brittleness index (the ratio of maximum applied force to corresponding penetration) can be used to predict instantaneous penetration rate of RBMs used in the vertical raise bored shafts excavating rocks having uniaxial compressive strength lower than 100 MPa.

Nov 29, 2022

By G N. Phillips

Global annual gold production has been remarkably constant over the last decade at ~2500 t/a3. The major producers today are China (annual production over 350 t and rising), Australia (250 t), USA (240 t), Russia (200 t) and South Africa (190 t and falling); these figures are representative of recent years but approximate. Demand from jewellery, investment, industrial and dental uses has been in excess of mine production for the last decade, by approximately 1000 t/a.Ongoing exploration is the life-blood for gold mining, and more so than for many other metals. Explorers consider sovereign risk, security, labour costs, commercial terms, land availability and inherent geologic prospectivity to determine where to focus their activities. Exploration success over the last decade has been shared by established major producers like Australia, Canada and USA, several countries in West Africa, and many parts of the Pacific margin. Although gold-only deposits have dominated world gold production historically, the gold-plus types, especially copper-gold, are becoming more important.Australia experienced a major period of exploration success from 1979 that has led to annual gold production rising from 17 t in 1979 to 250 - 300 t/a recently. Today, Australia has economic demonstrated resources of over 9000 t Au, which has risen progressively from 220 t in 1979. The majority of production has come from gold-only deposits in the Yilgarn craton in the southern half of Western Australia, but there are a few large Proterozoic deposits in central Australia including Olympic Dam, Telfer and Starra, which are mostly gold-plus types with copper and gold. Large goldfields in the younger host rocks of eastern Australia include the gold-only deposits of Victoria and North Queensland, and gold-plus deposits of New South Wales.CITATION:Phillips, G N, 2013. Australian and global setting for gold in 2013, in Proceedings World Gold 2013 , pp 15-22 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 26, 2013

The Australian coal industry has undergone sevenfold growth over the last 30 years and since 1985 has been the world's largest coal exporter. Three quarters of Australia's coal production is exported so its future is dependent on it remaining internationally competitive with other energy sources and other coal exporting countries. Coal is likely to increase its share of the energy market during the nine- ties as oil prices increase, new coal-fired capacity is commissioned and some form of nuclear energy is developed which is of acceptable safety standards to the community for use in the 21st century. Gas may take a part of coal's anticipated market share by the Year 2000. While coal exports will increase from China, Colombia, Indonesia and Venezuela and satisfy some of this additional coal demand Australia will also expand its export production, due to its existing advantages. The United States, Canada, South Africa, Poland and USSR seem unlikely to enjoy the same degrees of expansion and some, particularly Poland and USSR, will decline. Australia will always find it difficult to compete in the more distant markets due to levels of ocean freight, although its high quality coals will tend to partly offset such disadvantage.

Jan 1, 1988

By J J. Boshoff

This iron ore mine site, located in the Pilbara region of Western Australia, commenced operations in 1998, with ore derived by mining of open-cut pits in Channel Iron Deposits (CIDs). A portion of the ore extracted at the mine is processed at wet processing plants that produce both ore saleable product and waste fines (i.e. tailings) slurry. The waste fines produced at the wet plants are presently stored within Waste Fines Cells (WFCs).Waste fines cells A (WFCA) and B (WFCB) are located within an Autonomous Haul System (AHS) area and consist of embankments that span the width of the pit in east-west alignments. Technical studies and design analyses were carried out to support embankment raises and ongoing development of the WFCs. During operation and development of the WFCs, a multitude of simultaneous activities took place to the immediate north and south of WFCA respectively. These activities included the construction of the embankment raises using the AHS fleet, mining of the CID to not only mine the ore but to also create future deposition space for WFCB, blasting next to the WFC embankments as part of the mining activities, seepage collection and dewatering of the pit in the vicinity of the WFC.This paper discusses the material characteristics, design approach, construction staging and equipment requirements, blasting near embankments, water management, facility consequence category and closure concept.CITATION:Boshoff, J J, 2018. A waste fines cell with a multitude of concurrent activities, in Proceedings Mine Waste and Tailings Stewardship Conference 2018, pp 39–49 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 23, 2018

By L A. Martinez Tipe, J McKibben, S Barry

"Metal prices are central to a mineral investment decision and have a profound impact on the financial performance of companies in the mining industry. At its most basic level, metal prices are influenced by the disequilibrium between international metal volume supply and demand. That is, the commodity price is a regulator that equates international metal supply and demand where inventories act as a buffer between the emergence of this disequilibrium and its dissolution through a price change.From this viewpoint, mining companies are required to forecast metal and bulk commodity prices when evaluating minerals projects through discounted cash flow (DCF) analysis. While supply-demand models are instructive, many companies use historical prices, spot prices, futures/forward pricing and consensus opinion (or a combination of all of these) to develop price forecasts.This paper discusses the definition, fundamentals and differences between futures/forward and consensus pricing and the appropriateness of each in a DCF model for mine project economic evaluation.Our results demonstrate that great care is required when using either futures/forward or consensus pricing and that the decision to use one rather than the other requires consideration of other important elements in the DCF model (ie the risk-adjusted discount rate).CITATION:Martinez Tipe, L A, McKibben, J and Barry, S, 2016. Metal prices and the differences between forward and consensus pricing – which one is better for use in a discounted cash flow model?, in Proceedings Project Evaluation 2016, pp 149–158 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By C Jenkins, M Mativenga, C Stanton, J Gerber

In 2014, Arrium completed an optimisation program on its magnetite concentrator, enabling a reduction in the overall cost base of producing concentrate through an increased ability to treat a wider range of ore types, previously considered waste. The development was the culmination of four years of work, conducted in house by Arrium’s mining development group. The overall intent of the plant design focused on improving the concentrator’s ability to treat a wider range of magnetite ore types. Metallurgical analysis of these feed ore groups outlined a need for more grinding power if production quality was to be maintained and throughput increased. As such, a tertiary grinding circuit was designed which, alongside the rectification of key operational bottlenecks, would allow the plant to continue to produce concentrate at the required specification and rate. The technology chosen for the tertiary grinding application was the XT IsaMillTM, which is known for efficient fine grinding when compared to conventional ball milling. The transfer sizes between the existing comminution circuits were coarsened, allowed for the treatment of different ores at the required rates. The optimisation project was successfully completed in February 2014 after a three month commissioning phase. The initial metallurgical testing and engineering of new equipment proved highly successful with all equipment meeting or exceeding design parameters.CITATION:Stanton, C, Mativenga, M, Gerber, J and Jenkins, C, 2015. Unlocking plant capability through targeted debottlenecking of Arrium’s magnetite concentrator, in Proceedings Iron Ore 2015, pp 185–190 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

By E Hawkins, S Sheldon

Block caving is becoming a more widely adopted mining method allowing for underground massive low grade orebodies to be extracted economically. Underbreak during cave propagation is difficult to predict in terms of recovery and is not well-researched due to the small number of caving operations. During mining of E26 Lift 2 (E26L2) block cave at CMOC Northparkes Mines, a wedge of high grade material failed to cave, even with the assistance of preconditioning and subsequent attempts to induce caving. The ultimate solution for recovery of the uncaved wedge was the establishment of the E26 sublevel cave (SLC), which commenced mining in 2015, with production following in 2016. The SLC provides approximately 1Mtpa to supplement the lowering grade of the current E48 block cave feed. Applying the sublevel caving methodology to recover block cave underbreak has proven challenging. The impact of the caving stresses and preconditioning of the wedge have caused production limitations requiring continual remediation throughout production of the E26 SLC. The dependence on remediation work created a roadblock to implementing precharging as the prevalence of brow loss raised concerns over the inability to hook up the charged ring. In 2018, a wireless initiation trial was completed in the E26 SLC over 24 rings. The trial showed that precharging was achievable in this environment and greatly improved the safety of charge up personnel.

Mar 15, 2021

The 3.5 million tones per annum Enterprise mine is the newest underground copper mine at Mount Isa in northern Australia. At a depth of up to 2000 metres, it is the hottest and deepest mine in Australia. In situ rock temperatures sometimes exceed 60¦C requiring the installation of substantial amount of refrigeration to provide safe working conditions for mine workers. The latest refrigeration project at the mine, R67, required the design and installation of the worldÆs largest bulk air cooler and AustraliaÆs largest chilled water plant. The plant is mounted on the surface of the mine and provides 25 MW of refrigeration to cool some 580 kg/sec of ambient air to 11.4¦C. This is equivalent to the production of 6300 tonnes of ice per day. The plant was designed for high availability, as any downtime would result in substantial production losses to MIM, and also had the potential to quickly result in unsafe levels of heat stress within the underground workplaces. The bulk air cooler has been designed for a capacity of 34 MW(R), the expected ultimate carrying capacity of the 7 m vertical intake shaft. Being located well inside the tropics, technical issues such as control of thermal pulldown required special consideration. Also, the bulk air cooler had to be designed to handle whatever demand for fresh air was imposed by the mine below, with over 100 per cent variations in airflow expected, and without loss of thermal efficiency. A substantial program of risk assessment and HAZOP studies was used to protect underground miners from leaks of ammonia into the air or water circuits. Fully automatic control systems result in a totally unmanned plant that is supervised remotely. To improve efficiency, the plant is controlled by the outlet air temperature from the bulk air cooler û the first in the world to be controlled in this fashion. Engineering solutions to address environmental considerations were incorporated at the design stage through features such as the use of ammonia (a greenhouse-friendly gas) as the refrigerant, zero atmospheric discharge and a wastewater collection and re-use system.

Jan 1, 2002

Opening AddressThank you for inviting me here today to open what promises to be a significant conference on the technological aspects of extractive metallurgy. I would especially like. to welcome delegates who have travelled great distances in order to contribute to, and be participants in, this examination of the technical innovations which have always been a crucial part of our industry.

Jan 1, 1992

By S Shafiee, N Abbate

The evaluation of mining projects requires a methodology that will give flexibility and manage the existing uncertainty within the projects. The discount cash flow (DCF) and other traditional evaluation approaches, which are widely used in evaluating a significant number of mining projects, have simply assumed that the main variables remain constant in their evaluation; elements such as discounted rate, mine life, operating cost and production rate. The DCF ignores managementÆs flexibility to adapt and reforecast and revise decisions. Real options valuation (ROV) is one of the modern evaluation methodologies that provide a tool to adapt and revise mining projects under uncertainty and future variables movements. ROV brings more variables into the evaluation model compared to DCF and assumes them as uncertain and dependent. Finally, ROV provides a range of solutions that can assist in managing this flexibility.This paper endeavours to compare ROV and DCF for mining projects comprehensively and applies these two techniques in the model. The paper shows that ROV will be inclusive of extra value in mining projects due to variables not allowed for, or even ignored, when the DCF model alone is used. One of the significant advantages of the ROV method is being able to evaluate mining projects under different scenarios from the inception of the projects. Furthermore, ROV gives the ability to evaluate the mining project while allowing for abandonment, temporary suspension, or expanding the mining project. In other words, the ROV evaluation process creates an analytical environment, which allows for optimisation of the mining plan within the mining project, as well as the ability to change the capital structure dependant on existing circumstances over the life of the project. The ROV is a new evaluation method that can add value in mining project analysis and offers opportunities to amplify gains, or to mitigate losses. This paper also discusses some of the reluctance to use ROV instead of DCF in current project evaluation.CITATION:Shafiee, S and Abbate, N, 2012. Now, this is the time for mining companies to choose - Real option valuation or discount cash flow, in Proceedings Project Evaluation 2012 , pp 225-234 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012