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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 S R. Williams

There is a sense of geometallurgy being new; a new methodology for mining project development and improved operational strategy. One of the main challenges that any ænewÆ technology faces is a validation of the value and the need to produce case studies. However, producing case studies can often be problematic particularly given the long cycle from mineral deposit project, through feasibility and construction to stabilised operation of a mine.However, the roots of geometallurgy go back quite some time. Successful practices with geometallurgy can be seen from as early as the 1980s. Many times those practices were not called geometallurgy but something else and, in other cases, what can be seen are various components of the geometallurgical ævalue chainÆ.This paper will analyse a selection of published past practices from a geometallurgical perspective to demonstrate the value realised from the application of this methodology. The paper will then make some general comments on where this history of work in geometallurgy has lead us to and what are the challenges today for the geometallurgical effort.CITATION:S R Williams, 2013. A historical perspective of the application and success of geometallurgical methodologies, in Proceedings The Second AusIMM International Geometallurgy Conference (GeoMet) 2013 , pp 37-48 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 29, 2013

By Zharinov SE

Geonechanical modelling of island arc sys- tems and their analogs is investigated. Slow seismotectonic movements along the inclined deep fault zone under the compressive horizontal stress conditions are proposed to be the princi- pal mechanism controlling the structures and processes in the active continental margins. A model of shearing surface crack in an elastic half-plane is used for simulation. The main ele- ment of the model is viscous interaction bet- ween the crack sides, the viscosity varying with depth. To describe the stress-strain state of the medium an integro-differential singular equation is derived and solved numerically. The results of simulation are in good agreement with geological and geophysical data on the ac- tive continental margins.

Jan 1, 1987

By F Carrick, W A. Ellis, D R. Mulligan, S I. FitzGibbon

"One of the major environmental impacts of mining is the destruction of habitat. The koala (Phascolarctos cinereus) is an iconic Australian marsupial that has been severely affected by land clearing and its decline is continuing. This has placed pressure upon mining companies and government agencies to ensure koalas are managed throughout the life-of-mines - from land clearing through to rehabilitation of post-mining landscapes. This paper reports on the æKoala VentureÆ research partnership between The University of Queensland and Rio Tinto. As part of the Koala Venture program we examined koala use of two types of restored environments: rehabilitated mined land (20 sites) natural regrowth forests (six sites), at Blair Athol Coal Mine in Central Queensland, Australia. Searches for koala scats revealed evidence of koalas in ten per cent of rehabilitated sites (2/20) and 33 per cent of natural regrowth sites (2/6). Two factors were identified as being of greatest importance in facilitating koala recolonisation of restored habitats. Firstly, all recolonised sites were located close to native forest occupied by koalas (mean 135 m ¦ 52). Proximity to source animals is considered crucial to recolonisation of suitably restored habitats. Secondly, three of the four recolonised sites were dominated by koala food trees, most of which were large enough to be utilised by koalas. Availability of suitably abundant food resources is, therefore, also considered crucial. The requirement for these two factors, in combination, is highlighted by the absence of koalas at several sites that contained abundant food trees, but that were distal to areas with source animals, and vice-versa.Our research demonstrates the enormous potential for restoration of wildlife habitat on post-mining lands, even for species with specific requirements such as the koala. Consideration of the ecological requirements of wildlife during rehabilitation planning is critical to enhancing the likelihood of recolonisation.CITATION:FitzGibbon, S I, Ellis, W A, Mulligan, D R and Carrick, F, 2012. Rehabilitating post-mining landscapes for wildlife - A case study from the Koala Venture research program in Central Queensland, in Proceedings Life-of-Mine 2012, pp 319-324 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jul 10, 2012

By H Arvidson, J Vann

When only wide-spaced drilling is available, for example at concept, prefeasibility and feasibility stages, properly implemented linear estimation (including ordinary kriging) predicts grade tonnage relationships that are over-smoothed compared to final production estimates (and production). Non-linear estimation and conditional simulation are alternative geostatistical approaches that can provide more reliable estimates of the recoverable tonnage and grade from wide-spaced drilling. Non-linear estimation and conditional simulation have been rarely used on iron ore deposits. However, these techniques have had wide application in other commodities such as gold and base metals. Conditional simulation has been used in the iron ore industry (eg Guibal et al, 1997); however, its use here is outlined as a means of generating non-linear estimates, not just its use for variability and drill spacing analysis. As a rule, regardless of commodity, the decision to use non-linear geostatistics will necessitate increased skills and require more time. This decision must therefore be justified in terms of cost-benefit. Such cost-benefit analysis is not straightforward, and to help an approach for determining when linear estimates are inadequate is presented. Recommend in this paper is a well-established non-linear geostatistical approach, the global ædiscrete Gaussian modelÆ (DGM) of change of support, as a tool to establish whether moving from linear to non-linear estimates will materially improve estimate results. Also discussed is the additional use of DGM as a block model validation tool. One specific factor contributing to the lack of application of non-linear geostatistical methods in iron is the added difficulties that arise when conditional simulation and non-linear estimates are required to reproduce the numerous and often important correlations between variables in iron ore deposits. Consequently, presented in the paper is a synoptic review of non-linear estimation and simulation methodologies applicable to correlated variables.

Jan 1, 2007

By Sturchio NC, Williams SN, Fischer TP

Chemical and isotopic analyses of fumarole gases from Galeras Volcano, Colombia provide significant insights into the origin of volatile components in the magma.. Water comprises a mixture of magmatic (rock-equilibrated at high temperature) and meteoric, with the relative proportions varying through time. Carbon isotopes are most consistent with a mantle source, although other contributions to the system cannot be ruled out. Nitrogen most likely originated from organic matter in subducted oceanic sediments. All of these "primary" components have been modified somewhat by interaction or exchange with other reservoirs during ascent to the surface. In addition to information on the origin of the gases, these data show significant temporal variations precursory to eruptive events. Chemical ratios change and water becomes more meteoric in character prior to eruptions.

Jan 1, 1995

By A H. Gray

Gekko Systems Pty Ltd engaged in the test work, design, manufacturing and commissioning of the pre-concentration plant at Silver Standard Resources Inc’s Pirquitas mine in the north western Jujuy province of Argentina. Testing of the ore at coarse feeds of between 2 and 12mm returned probable recoveries of up to a total of 95% silver into 50% of the mass fed to the InLine Pressure Jigs (IPJ’s). The plant has been designed and built based on the test results to include a preparation screen to bypass the fines that are naturally higher in grade and repulping of the coarse which is then pumped to three parallel trains of 2-stage IPJ roughing-scavenging. The target 50% yield to concentrate passes over a dewatering screen and the solids are returned back to the mill feed conveyor. The IPJ tails are transferred to a dewatering screen and solid rejects are stockpiled off the end of a transfer conveyor. All dewatered underflow products are processed via hydrocyclones to recover dirty water for use back into the IPJ circuit and return entrained fines to the fines bypass line.With the sulphide orebody being processed, the results from operations to date have shown that plant performance is matching the original laboratory sulphide ore testwork data. The objective of the pre-concentration step is to both reject gangue and achieve grades between 300-400g/t Ag to the float circuit as flotation recoveries are maximised within this range. The plant currently achieves overall upgrades of approximately 150% of feed grade with the IPJ only circuit producing an average 180% increase from calculated feed grade.

Aug 8, 2011

By A G. Tomkins

"Approximately 32 per cent of the worldÆs total gold production has come from greenstone belts (Frimmel, 2008). In these regions numerous small to large, quartz vein-associated gold deposits are hosted in metamorphic rocks ranging from lower greenschist to granulite facies. Historical exploration has focused its efforts on rocks of greenschist to lower amphibolite facies because these seem to contain the most deposits. Consequently, these regions are now reaching mature brownfield status, particularly in developed nations, and finding new deposits is becoming progressively more difficult. In comparison, regions of similar tectonic setting, but instead containing high-grade metamorphic rocks of mid-amphibolite to granulite facies, have received little attention because the first explorers found fewer deposits there.However, these regions certainly do contain some very significant gold deposits such as Hemlo in Canada (~684 t Au), Renco in Zimbabwe (~31 t Au mined since 1980), the very profitable Challenger deposit in South Australia (~36 t Au; recovered + reserve + resource), and the most recently discovered Tropicana deposit in Western Australia (~182 t Au; reserve + resource). High-grade metamorphic terrains therefore offer explorationists an excellent opportunity to move onto relatively green fields within developed nations, which carry less risk associated with development. However, explorationists have comparatively little knowledge of the geological controls on gold distribution in high-grade terranes because: industry experience lies in traditional lode-style gold deposits these gold deposits are geologically more complex there has simply been minimal research conducted on these deposits as a holistic group.Furthermore, research conducted in the last five years has shown us that the previous widely accepted model for gold genesis in these terranes, the crustal continuum model, is incorrect. Here, I discuss features from several gold deposits hosted in high-grade metamorphic rocks and use these to define two categories for explorationists to consider: deposits that formed prior to peak metamorphism (metamorphosed gold deposits) deposits that formed well after peak metamorphism (post-metamorphic gold deposits). There are none that have been convincingly shown to have formed during peak metamorphism.CITATION:Tomkins, A G, 2013. Gold deposits in highly metamorphosed terranes, in Proceedings World Gold 2013, pp 23-26 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Sep 26, 2013

By Bukeikhanov D. G, Syedin V. F, Sagyngaliyev K. S

The present paper describes a method of simulating deposits of com- posite structure by means of computers. The method employs mathematical tech- niques to study the openworks zone formation dynamics in open-pit mines with any mode of the works front ad- vance as well as to determine, on oriented graphs,the optimal direction of openworks expansion.

Jan 1, 1977

The development of present methods of pillar extraction has evolved from the very earliest of hand mining operations which were limited in scope by venti- lation and transport considerations. Conservation and safety considerations also have led to the current shortwall operations with conventional equipment and powered supports. The shortwall methods have had significant effects on safety, costs, con- servation, flexibility, and other aspects of pillar extraction. The present stage falls short of the ideal but is some guide to prediction in what direction may lie the ideal methods for the future.

Jan 1, 1974

ATTENTION has recently been directed to the subject of dust production and methods of allaying same in the Broken Hill mines, so that the time would seem opportune for the local branch of the Institute to discuss certain features of an important phase of the health question in connection with underground work. Tests conducted in the Broken Hill South mine and at other mines at Broken Hill have shown that the ordinary operatioils of mining, such as boring, blasting, and shovelling, may be accompanied by the production of considerable dust unless water is judiciously used.In South Africa·dust particles under 5 microns size are regarded as dangerous, becailse they are so small as to be invisible to the naked eye, and wm esc'ape the protections set up by nature in the nose and throat, and thus may be inhaled in large quantity. A micron is 1 25000th part of an inch. This paper contains an account of the work done on the Broken Hill South mine chiefly, though some tests were done on other local mines.An acknowledgment is due to Mr. T. A. Reid, of the Broken Hill South mine, who conducted some of the tests herein mentioned, and under whose supervision most dust counts were made. Numerous dust samples have been taken by means of thekonimeter, an instrument designed by Dr. Kotze, the Government mining engineer of the Union of South Africa, and fully described...

Jan 1, 1921

A forecast of energy demand in the non-commu- nist world to the year 1990 is presented with com- ments on the expected effectiveness of conservation efforts in achieving more efficient utilization of energy. A forecast of energy supply for the same period is presented showing the contribution of oil, gas, hydropower, coal, and nuclear fuels, with brief comments on the factors constraining the rate of growth of non-oil energy supplies. The role of `synthetic fuels', i.e. liquid or gaseous fuels produced from coal, oil shale, and tar sands, is reviewed with brief discussion of factors affecting the development of this industry. In somewhat greater details, the growth of demand for oil by geographic regions is analyzed. Particular attention is directed to the source of the oil supplies which will be required. The anticipated rate of discovery of new oil reserves is discussed with comments on lead times required in the development of new discoveries in hostile environments such as the Arctic and deep oceans. The continuing importance of oil supplied from countries which are members of the Organization of Petroleum Exporting Countries (OPEC) is illustrated. Oil will continue to be the marginal ('balancing') source of world energy supply throughout the forecast period and although it now appears that oil supplies will be sufficient to balance the energy equation during the 1980s, little flexi- bility will exist to cope with unexpected growth in demand or slippage in supply. Prudent energy re- source management will require major efforts to stimulate conservation and also to stimulate the rapid development of conventional and new forms of energy supplies and changes in energy consump- tion patterns to utilize the new supplies. Because of the long lead times and the massive capital require- ments involved, governmental policies are needed soon which will stimulate conservation and which will encourage businesses to move rapidly to assure the energy supplies the world will require in the 1990s.

Jan 1, 1978

By Ryan A, Dennis R, Dekker D, Ellis W, Sowerby B

An automated facility for non-destructive elemental analysis of mine samples has been developed and tested at Mount Isa in association with the CSIRO. The analysis is based on the prompt and delayed measurement of gamma radiation emitted by the sample during and after separate fast and thermal neutron irradiation. No sub-sampling or sample preparation is required and the analyser is operated by one person that would otherwise be splitting drill core in preparation for conventional analysis. The analyser has been calibrated to measure the following (precision in parenthesis): Ag (14 ppm), Pb (0.5 wt%), Zn (0.5 wt%), Cu (0.04 wt%), Fe (0.7 wt%), S (1.1 wt%), SiO2 (0.8 wt%), A1203 (0.07 wt%), Mn (0.05 wt%), specific gravity (0.02 g cmt). Crushed or whole drill core samples that range in size between 0.5 m and 1.8 m of equivalent BQ size drill core can be analysed at a rate of six samples per hour. If required, drill core samples can be re-packed in their original configuration for storage following analysis. Standard samples are measured every day to ensure operational stability. The analyser is controlled by a personal computer which prints the results and stores them along with the raw data on the computer hard disk. This paper reports the performance of the analyser during 1992 for routine analysis of drill core from the lead ore bodies of both Mount Isa and Hilton mines.

Jan 1, 1993

By Ramani R. V

In this paper, a comparative performance evaluation of geostatistical, spectral, and fractal methods is made for short-scale variability prediction. The algorithms compared are: sequential Gaussian simulation method; a random fractal algorithm based on the generalised stochastic subdivision method; and a spectral simulation approach adopted for direct multi-dimensional simulation. The data for this study have been obtained from a mined out coal property. As this property was being mined, a 7315 m by 7315 m (24000 ft by 24000 ft) coal block was extensively sampled at an approximate spacing of 107 m (350 ft) and the 60-ton samples were analysed for sulphur in the 1.50 float gravity fraction. This data set is used here with the three methods to generate the simulated realisations, which are analysed for semivariogram reproduction and for simulation errors. Although all three methods converge to the true semivariogram in an average sense, the coefficient of variation of the average semivariogram for the Fourier integral method is minimum. The realisations generated by the sequential Gaussian method have minimum mean simulation error. The choice of a simulation method based on variability reproduction and simulation errors remains difficult.

Jan 1, 1995

By S C. Dominy

The Bendigo Goldfield is located in the state of Victoria, Australia, and is one of a number of quartz-reef fields that make up the greater Central Victorian Goldfield. At Bendigo gold particles are characterised by their very coarse nature, ranging from below 100 to over 10 000 ¦m in size. Some 60 per cent of the gold occurs in particles greater than 1000 ¦m in size. This characteristic ensures that the mineralisation is very challenging to both sample and evaluate. Diamond drilling provides a measure of geological structure, but is a poor measure of in situ grade, understating it by up to 75 per cent. Drilling combined with on-reef development, bulk sampling and geological interpretation has been used to define Indicated Mineral Resources. For grade control, a balance had to be sought between sample representivity, cost, turn around time and practicality. Sampling of extreme nugget effect deposits generally requires the use of bulk sampling in order to be representative. However, the cost and turn around time is significant. As a result, a 50 kg micro-bulk sampling system has been introduced that attempts to overcome these problems by providing a fast, practical method that can discriminate between ore and waste. As the mine passes into production, grade control will increasingly become dependent upon geological data collection and interpretation.

Jan 1, 2005

By R Moreby

This paper is a demonstration of the techniques developed during an Australian Coal Association Research Program (ACARP) funded research project aimed to develop aids, principally computer based, to assist mine personnel to more efficiently manage significant incidents in coal mines. These aids include software to aid in the location of the incident, electronic information storage and retrieval, online site emergency response manuals and software to aid in decision-making.

Jan 1, 2005

Safety remains a critical priority for the Australian mineral resource industry and will receive increased focus in the future. This is particularly evident in underground coal mines where reserves are becoming deeper and more hazardous to extract. The CSIRO, through its Exploration and Mining Division, have recently delivered on two projects aimed at providing step-change capabilities in real-time risk management and hazard control. This paper describes the key outcomes of these projects.

Jan 1, 2005

By Hill G

The Boddington Gold Mine (BGM) is managed by Worsley Alumina Pty Ltd (Worsley) and is located 110 km south-east of Perth, Western Australia. The gold mine, which has operated since mid-1987, was originally constructed to treat 3 Mtpa of gold bearing oxide ores, has subsequently been expanded to treat 7 Mtpa and is presently one of the largest gold producing operations in Australia.During 1990 a Supergene/Basement Plant was constructed to treat 250 000 tpa of copper supergene and hypogene ores and basement ores which contain significant gold grades and which are encountered at the lower levels of the existing oxide orebody. The SupergeneBasement Plant has the versatility to treat a wide range of ore types, producing both gold bullion and copper-gold concentrates. It is a stand-alone facility adjacent to the existing 7 Mtpa gold plant.

Jan 1, 1992

By Yambu J, Titus K

Geotechnical investictations and monitoring have been integral to development of the Porgera Gold Mine. The steep, unstable terrain has required a program for monitoring of slopes and foundations which includes survey stations, borehole inclinometers and piezometers. Case studies of the Maip Pass landslide, Yakatabari land-slide, Anawe Plant Site CIP pond excavation and batter, and a load test study for mine waste dumps are presented.Monitoring is needed to ensure that geotechnical risk is kept to a minimum. A vigilant program will be required for the life of the mine.

Jan 1, 1994

By Read T. A

PART 1The quantity of dust present and the methods used for suppression of dust in metalliferous mines has, in recent years, received considerable attention from mining engmeers in various parts of the world. Shortly after the publication of the General Report of the Miners' Phthisis Prevention Committee, South Africa, in 1916, the officers of the Broken Hill South Limited started investigations into the conditions of the dustiness of the air in the underground workings. As the methods used are not generally known in Australia, the writers are of the opinion that the present is an opportune time to place them before members of the Institute. A large amount of the subject matter of this paper has been drawn from the 1916 and 1919 reports of the Miners' Phthisis Prevention Committee, South Africa, the paper of Mr. Innes published in "The Chemical, Metallurgical and Mining Society of South Mrica"; also various articles appearing in the Journal of Industrial Hygiene, and the American Journal of Public Health. A great deal of research work into the cause, prevention and estimation of mine dust has been made by the Miners' Phthisis Prevention Committee of South Africa, and officials of the United States Bureau of Mines. The writers considered it advisable to begin the investigation at the South Mine with apparatus and methods developed by the South African Committee.Through the Australian agent of the Cape Explosives Company, inquiries were made preliminary to procuring the necessary apparatus for the determination of dust, from South Africa. The writers then learned that the older gravimetric method used by the Phthisis Prevention Committee was likely to be superseded by the konimeter...

Jan 1, 1922