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By S Azam

Coal is a vital energy source and source of carbon for metallurgical applications, contributing significantly to the world economy. Coal mining and processing involve multiple processes that generate Respirable Coal Mine Dust (RCMD), one of the primary sources of health hazards for coal workers. Since 2000, the rate of Coal Workers’ Pneumoconiosis (CWP) has continually increased in the U.S, with severity of the cases also worsening. Increasing evidence shows that exposure to RCMD in coal workers is a high-risk factor for lung cancer, which causes more deaths than the following three major cancers combined in the US Recent observations show an increased incidenceof CWP or other lung diseases, particularly among young miners in the Appalachian basin. The CWP prevalence in Appalachia is four times higher than the national average. Although various regulations are in place, the resurgence of such disease among coalminers demands additional efforts to better understand all the possible facets of coal dust toxicity, taking insights from current interdisciplinaryresearch efforts. One such important field is the interaction of coal dust with moisture in underground mines. Although moisture is prevalent and dynamic in an underground mining environment, it has never been evaluated for its impact on modifying the toxicity of coal dust and transport or flow behaviour. However, research conducted in atmospheric sciences in the past decade makes it clear that moisture in the atmosphere can significantly alter the behaviour of mineral dust. This paper is a part of research aimed at understanding how moisture interacts and alters the characteristics of coal dust. Such insight is crucial in understanding the potential toxicity of coal dust and developing mitigation technologies.

Oct 12, 2022

By Wetzeil N

High ambient temperatures combined with high surface humidity in the north of Australia and, in particular, the northern areas of the Northern Territory can make underground workplaces relatively inhospitable at certain times of the year. . Woodcutters' silver/lead/zinc mine, situated some 80 km south of Darwin, would be the most northerly underground operation of any significance in Australia. As such, during the build up to the wet season, it has a particular problem of ventilating a deep underground mine with already high dry and wet bulb temperatures at the surface. The Mine Management Act and Regulations mention only that workplaces shall be 'in a fit state for a person to work in or occupy'. Woodcutters therefore set in progress a Heat Stress Program to endeavour to set standards which would be more measurable and justifiable. The aim of the program was to compile a record of ambient atmospheric conditions in the working areas such that areas and/or work activities generating high ambient temperatures and humidities could be identified, quantified and qualified. Once the analysis stage of this program was completed, Woodcutters compiled a set of recommendations for the continued monitoring for, and control of, heat stress conditions to ensure that no underground employee was placed at risk from 'heat stress'. These recommendations are discussed in this paper.

Jan 1, 1994

In essence, these statements concur, However, management predominantly controls the organisation's communication environment (5), Consequently, the participation by employees in safety is greatly influenced by the quality of upward communication, (See section on authority for discussion on two way communica-ò tionò) Emotional survival contributes to the communications and it is said to occur as follows: -- We. aU tend to move towaAA 6.itw tLon,s which aid the achievement oj5 owc goa o and way {y/wm ones which testh ict achievement." Consequently, although the work force are prepared to contribute, they will not make the effort for long if management does not respond in deed. The Robers report includes the following statement; "Satiety and heat h at wank is a matte o6 e66ic,ient management. But it .L not a management pn.enogative. Wank people muht be encouAagad to pattiaipate úu.Uy in the making and movutoni:ng ob a/vua.ngements ban .6aJety and heath, at their. pace ofj wonk.t'(3) Attitudes dominate within this region. Emotional surviv- al is paramount. Management is the catalyst. They dominate the communication channels. Participation does not exist without two way communications and positive responses by those involved, Fault Doctrine. Eliminate faulty human behaviour. This concept lives with us as the predominant prior- ity of many safety programs. The concept is a drain on limited resources., Remember, malaria. At one stage this disease was believed to be caused by the mat or bad air emanating from persons whose profaneness or impious behaviour incurred such reprisal. Today, such a concept of malaria seems so ridiculous, (9)

Jan 1, 1979

By M Rankin, F Medina, R Verburg

We conducted a preliminary assessment of an extensive deposit of historic tailings discharged over a period of 40 years to the shoreline along a Southern Peruvian coastline. The tailings formed an extensive beach approximately 2.4 km long and 300 m wide. The tailings consist principally of pyrite (37 to 59 per cent), hematite (nine to 20 per cent), magnetite (three to 13 per cent) and quartz (11 to 36 per cent). The present operating company was required to evaluate the feasibility of capping the ocean side tailings deposit, however, given the size of the undertaking and the potential to reclaim residual minerals from the tailings, it was prudent to first evaluate whether capping would in fact reduce the impacts to the marine environment. Therefore this preliminary assessment examined: 1. metals contamination in tailings, shoreline porewater and marine sediments; 2. reactivity of tailings and acid generation potential; and 3. the potential for biological effects from metal contamination in the uplands tailings (solid phase) and beach porewater. Based on mineralogy, column leach studies and chemical results, the upland tailings have a high geochemical potential to acidify and release metals, especially copper, nickel and zinc, should they be subject to oxygenated and aqueous conditions. But, the extreme arid climate results in very low potential for precipitation and virtually precludes the transport of acid drainage reaction products from the upland tailings towards ocean. Wind erosion caused by offshore winds is likely a small source of tailing transport to the ocean. Since some potential exists to reprocess the tailings in the future, capping does not seem justified at present.

Jan 1, 2003

The papers to be presented in this Session show an interesting range of subject matter. Three discuss specific problems associated with existing mines, one deals with hydrogeological risk evaluation and one uses the impact of mine drainage on an aquifer to analyse a large-scale hydraulic parameter. Paper 1. Environment studies to determine the impacts of re-opening Banska Stiavnica-Hodrusa ore district in Czechoslovakia - Dusan Cababla - Marian Skaviniak. Future developments in established mining areas may have significant hydrogeological implications, especially where the existing mines are to be deepened. In turn this may have an impact in the area of the disposal of ever larger quantities of mine water, particularly, as is often the case, where the quality of this water is poor.

Jan 1, 1988

By K Watters

API Management Pty Ltd (API) is currently developing the West Pilbara Iron Project (the ‘Project’). The Project is a substantial greenfi elds mining and infrastructure development proposed for the west Pilbara region of Western Australia. The Project will establish API as a new and independent supplier of direct shipped iron ore. API manages the Australian Premium Iron Joint Venture (APIJV) on behalf of joint venture participants Aquila Resources Ltd and American Metals and Coal International Inc. The APIJV was formed in February 2005 with the objective of developing a long-term iron ore export operation in the west Pilbara region.Development of Stage 1 comprises a 30 million tonne per annum (Mt/a) channel iron deposit (CID) operation scheduled to commence in the second half of 2014 subject to approvals. JORC compliant CID resources total nearly 700 million tonnes and the Stage 1 mining area comprises eight iron ore deposits located between 30 km and 85 km south of Pannawonica. Run-of-mine ore from the eight deposits is transported to a central processing facility for crushing, screening and blending into a sinter fines product, which API has named West Pilbara Fines or WPF. Construction of a 282 km main line heavy haulage railway from the Stage 1 mining area to the proposed greenfields multi-user port at Anketell Point near Wickham, is capable of accommodating large Capesize bulk carriers and providing export facilities for other third parties. Capital investment in the order of $A6 billion includes essential support infrastructure including power, water, accommodation, roads and an airport at the mine.A feasibility study for the development of the Stage 1 mine, rail and port infrastructure has been completed along with environmental surveys of the mine, rail and port areas with Public Environmental Reviews (PERs) for each submitted for public review by end 2010. Consultation and cooperation with various stakeholders of the Project areas, and early engagement with traditional owners of the respective areas has commenced. Various sampling and metallurgical characterisation programs combined with independent institute and steel mill based testing have confirmed the positive sintering characteristics of WPF ore, which is higher in alumina (3.37 per cent) than typical Pilbara ores. *This is an abstract only. No paper was provided for this abstract.*

Jul 11, 2011

By I Neilsen, A Walker, A Hooper

Final landform planning in Deswik software was used to determine if integration into the mine plans could achieve better closure outcomes. Using the dump surface outputs from the Deswik Landform and Haulage Simulation (LHS) and the Reshape Landform tool, the project intended to:1.Review costs to achieve the final landform for several grade criteria scenarios;2.Quantify reshape volumes at several stages of the mines development with the objective to contribute to margin ranking inputs; and3.Identify rehabilitation cost reduction measures such as backfilling ramps and pits.CITATION:Neilsen, I, Walker, A and Hooper, A, 2018. Case studies for integrating rehabilitation planning with mine planning in strip mining, in Proceedings Life-of-Mine 2018, pp 93–95 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 25, 2018

By P J. Bangerter, J Pan

Optimising for Net Present Value (NPV) with a strategic optimiser such as COMET, Prober-E, Blaser or Minemax has hitherto lacked a dynamic method for analysing the so-called third-order outcomes (such as Carbon emissions) of optimisation within life-of-mine planning. Optimisation, per se, has natural effects on carbon emissions in a life-of-mine plan. Contemporary strategic planning employs a mathematical optimiser to make sense of non-linear data (ie a block model) and produces a best-NPV optimised mining schedule, within a set of constraints. The very act of optimisation influences emissions, and in a dynamic way.

Aug 2, 2023

By Q Zhou, H Nordberg, W Wang-Geissler

Efficiently controlling foam/froth within mineral processing continues to pose a challenge to the mining sector. The foaming characteristics of aqueous solutions for two-phase systems of air/liquid are well-studied with theories and mechanisms proposed to describe and predict foam formation and stability. The types and structures of reagents that either promote or prevent foaming/froth formation and stability are well-defined in these studies and practiced across various applications. Three-phase systems of air/liquid/solid, such as froth from mineral slurries, however, pose a challenge with the presence of a large quantity of relatively fine mineral particles. Theories and mechanisms that rationalise the effects of chemical additives as a defoamer or foaming agent in aqueous can be applied as a general rule, but do not provide the most effective solution for mineral slurry systems. Silicone-based defoamers, particularly their O/W emulsions, have been widely and successfully used at various stages of mineral processing to efficiently control the mineral slurry foaming properties. However, their foaming control ability could be significantly impacted by different processing aids used during the upstream process. In a zinc-rich mineral system, a silicone-based defoamer starts losing the properties necessary to effectively control foaming in the leaching circuit when throughput is increased. In this study, the synergistic defoaming/anti-foaming effects from surfactants and silicone-based defoamers are discussed to effectively control foaming/froth in the zinc leaching circuit, even with lower total defoamer dosage. Improvements during mineral processing can also lead to a cleaner mineral grade by reducing waste.

Aug 24, 2022

By R Forster

Direct ship iron ore (DSO) operations at Extension Hill in Western Australia’s Midwest region have commenced, with fi rst product railed to the port of Geraldton in July 2011. Reserves are 14.8 million tonnes (Mt) of haematite-goethite ore overlying an Archaean BIF-hosted larger magnetite deposit which Mount Gibson Iron Limited (MGI) sold to other parties in 2006.Some unique geological aspects of the deposit shape DSO mining and processing operations. Owner-operator selective mining, blending, crushing and screening on site will produce three million tonnes per year (Mt/a) of Lump and Fines product to be trucked 86 km to Perenjori, railed 232 km to Geraldton, and loaded aboard Panamax-sized ships through the dedicated iron ore shiploader at the Geraldton Port Authority’s Berth 5 facility.The statutory approvals process for this project formally began in 2004, dominating delays in a predevelopment phase which extended over a longer period than the likely life of DSO operations. The lack of transparency, uncertainties and costs inherent in state government processes have influenced decisions made by MGI while assessing other development opportunities in Western Australia. Potential for additional Reserves exists at Extension Hill, however MGI’s ability to extend the mine life will hinge on statutory approval to explore for and evaluate other DSO resources on surrounding granted mining leases.The nature of the resource and use of existing infrastructure for product transport have enabled MGI to keep operating costs and capital intensity of this project relatively low. A tenacious development approach by MGI and robust project economics have fi nally enabled this site to take its place as a revenue earner beside the company’s other DSO operations at Tallering Peak and Koolan Island.

Jul 11, 2011

By P Andersson, P Marklund

Evaluation of different techniques for bottom fill stabilisation showed that frozen fill was the most economical method. In order to test the method a full-scale field test was performed in the Rehnstr÷m mine. The test was instrumented with temperature gauges and extensometers. Before the field test, frozen fill was tested at the laboratory. The mechanical properties of the frozen fill were determined by uniaxial compression and creep tests. A deformation model for the frozen fill was set up. Calculation procedure for design of spacing between the freezing tubes, time for freezing and calculation of the necessary capacity of the refrigeration plant was developed. These procedures were calibrated against the field test. The results of these investigations allow the following conclusions: From a mechanical point of view, frozen fill has excellent properties as a structural member and it also has excellent properties to support itself and the fill above. Methods for the thermal and mechanical design of freeze stabilisation have been developed and found adequate. The need to place the freezing tubes several years in advance of the future sill pillar mining, requires careful long-term planning and accurate documentation.

Jan 1, 1998

The geotechnical factors controlling the design of the open pit slopes of the Pasminco Century Mine near Lawn Hill, Queensland are presented below. Pasminco Century is a stratiform shale hosted zinc deposit in the Lawn Hill Formation that is overlain in part by the Thorntonia Limestone Formation. Both the mineralisation and overburden is located within a competent rock mass such that intact rock strength and discontinuity spacing is generally sufficient to prevent large-scale slope failure by breakage through the rock mass. Rather, overall slope stability issues are dominated by the major discontinuities within the rock mass. The deposit is located in a structurally complex regime, it consists of a synclinal basin which is truncated by easterly striking normal faults through its centre and northern and southern limits and by an unconformity on its eastern and western margins. Deposit geometry and slope stability is further complicated by small-scale folding, a pattern of northeast and southeast striking subvertical faults and north easterly dipping thrust faults with their associated fault emplaced blocks of Lawn Hill Formation in the overburden. The large size of the deposit requires a staged mining approach with the excavation of both final pit walls around the external sides of each stage and interim pit walls along the internal boundaries between adjacent stages. The deposit geometry and major discontinuities control not only the final pit wall design but also interim wall location and orientation, excavation sequence and in some stages the excavation schedule. Two and three-dimensional limit equilibrium stability analyses were conducted using both deterministic and probabilistic approaches to determine appropriate pit wall design criteria and to select a suitable excavation sequence and schedule.

Jan 1, 2000

Safety bulletins and stickers issued for the paste backfill plant at Cannington read as follows: æCannington Paste Fill Plant, First of ItÆs Kind in AustraliaÆ. We could even dare to state that the Cannington plant is different than any other paste backfill plant in the world because of the overall design, plant equipment and underground delivery. However, one thing to be certain of is, the paste backfill plant works as designed and a pump is not required to deliver paste underground given the general plant arrangement at Cannington. The past two years have been a process of evolution to design and construct the plant and make it work. This paper will describe the paste process using full mill tails along with placement of cemented paste underground. Discussions will include rationale of fixed plant selection along with various control requirements. BHP World Minerals recently commissioned its paste backfill plant in December 1997. Cannington is placing full mill tails underground via two surface boreholes that deliver either to primary or secondary stopes.

Jan 1, 1998

By Lawson F

Chrome chemicals are commercially produced by the alkali roasting of chromite ores with sodium carbonate. Results of tests conducted in a laboratory furnace indicated that the sodium carbonate reacted rapidly with part of the gangue material to form a metastable intermediate that later reacted further with the chromite. For the conditions used, the recovery of water-soluble sodium chromate was able to be described empirically as yield % = a tn with a = 0.24 T - 241.3; n = 3.90 - 3.12 × 10-3 T and t is the reaction time in hours.The major rate limiting step in the overall reaction sequence appears to be the rate at which oxygen can get to the reaction sites across the liquid film coating the solid reactants.Sodium sulfate alone was found to be an unsatisfactory source of alkali for reaction with chromite. However when limestone also was added in quantities sufficient to allow the reaction CaCO3 + Na2SO4 + H20 ? Ca SO4 + 2NaOH + CO2 to take place, the results obtained were comparable to those found when sodium car-bonate was used.For chromite particles in the size range -124 + 105 µm, the use of stoichiometric excess of sodium carbonate did not appear to increase the yield or the reaction rate significantly. However, with smaller sized particles, - 53 µm, increased yields of water-soluble chromate were obtained when roasted with more than the theoretical quantity of sodium carbonate.

Jan 1, 1984

By D McInnes

Rather than look at the problems associated with sampling, this paper deals with the issue of sampling and blending to optimise revenue û predominantly in the mining industry. An example of the use of this methodology in the agriculture industry is also presented. Mining companies, in particular, are experiencing a boom in commodity prices and many believe the industry is in the middle of a æsuper cycleÆ. Production levels are being escalated dramatically to meet the demand coming from China and India. This in turn has further stretched the capacity of our rail and port infrastructure û resulting in significant shipping queues around most Australian commercial ports and increased demurrage costs for the producers. Mining companies are now looking for effective scheduling, planning and blending to maximise production and reduce demurrage charges û given the current infrastructure constraints. Mining companies can no longer use spreadsheets to run their business. This paper further looks at how these outcomes can be met by optimised blending using an integrated supply chain management system such as MineTrak together with effective sampling and analysis.

Jan 1, 2005

Sophisticated pit optimisation software has allowed mine planning engineers to generate mining outlines that consider the numerous factors that have a major effect on the success or otherwise of a mine plan. The outlines are generally generated using a range of values for which one can assume a fixed mining cost and a variable revenue. During analysis, the expected costs and revenues are used to investigate the cashflow and sensitivities. Ultimately, the final pit and incremental outlines, or shells, are selected for a given expected price. This paper proposes an alternative method for incremental pit shell selection that considers the risk the mine be prepared to accept. The life of mine is divided into a number of Business Risk Periods (BRPs). The BRP represents the period of time over which the owner is prepared to invest capital. During each BRP, the mine will then operate at a selected investment cost which is generally equal to or greater than the minimum required to meet production targets. In this way, a robust mine plan can be produced which allows the mine to react to change without having to alter the incremental shell limits while maintaining a strategic risk profile. This paper will summarise factors to be considered in selection of the BRP and the incremental pit shells within the BRP.

Jan 1, 1998

By B J. Wight, R Mackay, S Kim

Improving the understanding of the processes governing ground movements in and around brown coal open cuts is of significant interest for both operating stability and rehabilitation. Brown coal, lignite, is a low-rank coal that is best described as a soft rock, with geotechnical characteristics that derive from its organic origin. It is well-known that low-rank coals exhibit creep behaviour; however, little has been reported on the impacts of chemical processes on brown coal creep behaviour even though organic substances are susceptible to chemical alterations and mining processes will contribute to changes to the geochemical environment; around most mines, groundwater flow patterns are altered leading to enhanced surface water infiltration. Here we study the deformation behaviour of brown coal in response to ion exchange reaction. Our experimental results show that for different ion exchange conditions different characteristics of secondary compression are observed. With the addition of Ca2+, the ratio between coefficients of secondary and primary compression (Ca /Cc) initially decreased, presenting a minimum value at the concentration of 0.005?M, then increased significantly. This implies the importance of ion exchange process for the long-term deformation of brown coal. On the other hand, increasing Na+ concentration did not affect Ca /Cc values significantly over all tested concentrations. The suppression of diffuse double layer was still observed for Na+-treated samples as increasing Na+ concentration decreases Ca values. From a practical perspective, this study did not consider the tertiary creep behaviour and eventual creep failure.CITATION:Kim, S, Mackay, R and Wight, B J, 2014. Creep due to chemical alteration of rocks – a case study in brown coal, in Proceedings AusRock 2014: Third Australasian Ground Control in Mining Conference , pp 61–64 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 5, 2014

By T Leidich, M Van Zyl, H Lacy

Mining ‘as usual’, until the most recent decades has resulted in limited landform planning and a general lack of mine waste landform design. Material characterisation, mine planning and dedicated professionals undertaking these tasks were rarely available or in place at the majority of mines. This has led to landform instability, erosion, sediment and poor quality water emanating from mine landforms. In many cases rehabilitation and reclamation failed and these sites have ‘landform features’ that are difficult to relinquish or leave and have little or no apparent land use. In many cases mined landscapes around the world have resulted in a less functional and degraded environment, with deleterious impacts on surrounding ecosystems.This situation is now slowly being addressed, as global companies, academics and practitioners and their organisations have started to exploit the ideas from an integration of earth sciences and mining through the application of planning software dedicated to the design of landforms.This development has had its genesis primarily in the United States. We suggest that process has been driven, in recent decades, by the application of resources in response to the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), (USA Congress 11 December 1980) and other mine reclamation legislation enacted by federal and states regulators in the USA. The combining impact has seen a huge transfer of capital back from the public purse and ‘potentially responsible parties’, into abandoned mines to affect control, remediation, and reclamation/rehabilitation of those mines.Given this investment in rehabilitation and reclamation, people engaging in the business of landform planning have had the opportunity to address landform reclamation of historic and active sites. The skills of engineers and scientists with improved technology, waste rock characterisation and modelling tools have been combined resulting in the evolution of landform design and in mine planning of active mines. This has delivered cost-effective, sustainable mine closure designs for over 30 years. Integration of mine design with an understanding of geomorphic principals and the natural landscape, coupled with waste and soil characterisation, yield a positive result. Recently work has been applied across large and small-scale projects by companies. As these processes develop, ideas and concepts are evolving that active mines, or mines in the early planning stages, could use to help reduce double handling, and in the long run reduce overall project and closure costs, more effectively attain the desired final land use, and enhance the industry’s reputation and licence to operate.CITATION:Leidich, T,?Lacy, H?and Van?Zyl,?M,?2014. Application of design concepts and engineering controls necessary to deliver well-designed and rehabilitated landforms, in Proceedings Life-of-Mine 2014 , pp 55–66 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 16, 2014

By J Franke, C Gonzalez

One of the regular tasks of geotechnical and mining engineers is the measurement and management of deformation in underground excavations. Although several methods are used to do so, the incumbent methodologies for monitoring deformation and ground support serviceability are limited to the use of visual observations or measurements at discrete points, resulting in a qualitative assessment only. The introduction of LiDAR technology allows a quantitative assessment across the entire excavation volume and its rock surface, by collecting a full three-dimensional image of the entirety of an excavation such as an underground drive, decline, or a tunnel. Comparisons between epochs of complete 3D data coverage allows for change detection over time that doesn’t feature otherwise typical omissions. The implementation of regular scanning has shown to be highly advantageous for mines with swelling or squeezing ground, but also at mines with rapid deformation. Despite the LiDAR potential, its adoption has been slow. A key reason for that is that working with point clouds is foreign to most geotechnical engineers. Point clouds have long been the realm of surveyors, but to fully adopt their use in geomechanics requires retraining, upskilling, and devotion by the individuals and the company. Sites are already stretched, so often there are insufficient resources to be applied to bringing the new technology into use. The solution to this hurdle is to partner with subject matter experts to achieve the desired high-quality outcomes without the commitment of time by geotechnical personnel. This paper presents a new solution of fully automated raw LiDAR point cloud data processing that not only enables geotechnical engineers to avoid having to learn unrelated skills by allowing for deformation monitoring without associated training or expertise, but it also provides instant reporting results as well as a sophisticated database with features otherwise not available. All data processing time and effort is completely replaced by an automated process which at the same time opens up the opportunity to monitor many more excavation volumes at a higher frequency than is possible with conventional tools and methodology.

Nov 29, 2022

By R C. Schodde

The future of any mining company depends on maintaining and growing its access to high-quality mineral resources. Often the true size of a given resource is not fully recognised until after mining has commenced. Also, the strong desire to increase production puts pressure to expand the resource base of the mine to get maximum value out of the capital employed. This, plus diminishing M&A opportunities and declining world-class greenfield discovery rates, makes brownfields exploration a high priority activity in any operating company. For the success and long-term survival of the company it is critical that this is done well. The primary aim of brownfields exploration is to find or acquire new deposits within economic transport distance of an existing mine that will add materially to shareholder value through: mine or capacity expansion, displacement of lower-margin ore from the mine plan, preserving and extending the mine life, and ensuring potential value is understood in order to maximise potential future mine development or exit. A number of strategic principles are important in any program designed to achieve these aims: understanding the life of mine (LOM) production profile and the related key drivers for exploration, understanding the dynamic nature of the brownfields search space, understanding and measuring depletion of the brownfields search space, understanding the potential of the near-mine region, investing in exploration technology to expand the search space, and investing in a basic geological understanding of the ore-environment. Examination of the LOM profile will highlight critical issues facing development plans for the mine including future grade and throughput issues, key technology requirements or innovations and scenarios for increased production. Exploration targets in the brownfields program should address these key issues. Often it is as æsimpleÆ as keeping mine development sufficiently far ahead of extraction to allow time for the various phases of exploration and resource assessment drilling. Because of the low additional capital costs required, expansion of the brownfields search space is strongly leveraged to: metal prices, development of new markets, incremental operating cost reductions, strategic changes in downstream requirements in integrated businesses, depletion of higher unit-value ores, and new technologies (both extraction and exploration). Therefore the brownfields search space is likely to incrementally expand through time and must be regularly reviewed. This is also important as any given search space will be progressively exhausted, resulting in smaller and higher cost discoveries. It is therefore important to monitor and critically review sustained trends of increasing brownfields discovery cost. The first wave of discoveries in any camp are usually empirically driven and do not need a strong geological understanding. However, an improved geological understanding is critical to making the next generation of hidden discoveries. To illustrate these points, a case study was carried out on the exploration and development history of the Kambalda nickel camp. Over a period of 40 years, more than 40 deposits were found containing over 1.7 million tonnes of nickel metal. Efficient mines need to maintain reserves for operating flexibility. Consequently, the company needs to clearly understand the global resource in order to maximise its full potential. In addition, understanding the full brownfields potential earlier in the development of a deposit rather than later, creates optionality through the flexibility that this understanding brings to future development choices. To ensure best practice in attaining this aim, the roles and responsibilities of the exploration team and the mine operation should be clearly understood. It is important for the explorers and the operators to have shared views about what needs to be done. Typically, mine operators would be accountable for identifying future resource requirements to support the life-of-mine production schedule whilst explorers would be accountable to ensure best-practice assessment of brownfields exploration opportunities. This would include an assessment of the global undiscovered endowment in the regional near-mine area. The balance between brownfield exploration drilling and resources to reserve conversion will need to be decided to ensure efficient operations are maintained. Both need to agree the optimum level of brownfields funding taking into account: urgency to replace or grow reserves, and quality of opportunities (relative to those elsewhere). The ultimate cost of ignoring the full brownfields potential of an operating asset can be significant, ranging from inefficient and poorly planned operations, lost opportunity cost and resultant value through under-utilised resources and, in the worst case, early exit from the asset at the bottom of the commodity cycle û leaving behind huge amounts of shareholder value.

Jan 1, 2006