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By G Pattenden, R Hargreaves, P Pettit

"Even with the cyclic nature of mining, when it comes down to it, the bottom line is that whatever direction the commodity market is going there is always a desire to improve the economics of an operation in order to deliver a greater return to investors. Adapting to market pressures by introduction of an operational process change can often have a downstream impact. What may be less obvious is that reconciliation can play an important part in measuring the effectiveness of many operational changes. Through the adoption of best practice reconciliation and related comparisons, it is possible to measure the impact of changes across the mine value chain and identify variability that may have been introduced. Using analytical business improvement tools, examining and monitoring planned changes can be crucial in understanding whether the introduced changes have been effective and whether they have provided the expected result. Using several case studies, the authors will highlight the benefits provided by modern business intelligence tools, which can provide data validation and accurately report data trends related to both planned and unplanned change events.Citation:Hargreaves, R, Pattenden, G and Pettit, P, 2016. Measuring the Effectiveness of Change through Best Practice Reconciliation, in Proceedings Ninth AusIMM Open Pit Operators' Conference 2016, pp 71–83 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Nov 15, 2016

Production sharing and cost apportionment in joint ventures is commonplace in Australasia today and elsewhere. It is a recognised convention that, with the exception of a free carry situation, joint venture participants usually share the proceeds of the joint venture in direct proportion to their respective participating interest, after having first paid its respective cash calls, in advance, to cover the projectÆs ongoing operating and capital cost requirements.In surface mines, the parties simply pay their way and take their proceeds in this manner. In underground mines, the situation is no different, though treatment of capital, depreciation and tax may differ between the parties. A common feature in many cases is the creation of a joint venture entity to conduct the business. This entity then collects cash from the parties, banks it, employs the staff, runs the operation, provides reports and pays out the proceeds. This convention appears to be relatively simple in application. In practice, it has been known to be complicated in the situation where the participants take their product at the mine gate and undertake their own marketing and selling arrangements. A more complex situation presents itself where the joint venture tenement boundary with an unrelated third party straddles an economic deposit. In this scenario, both the joint venture parties and the third party may wish to mine the deposit, sharing some infrastructure and costs, yet taking their own product as it is produced. A case study outlining such a situation is presented in the paper, outlining firstly how the major cost categories were identified and treated for cost apportionment purposes. Secondly, a mechanism for the equitable apportionment of product is suggested. Finally, issues such as timing and cost reporting are dealt with, together with a checklist of points which should be considered when a similar situation might arise in the future.

Jan 1, 2002

By M Salu

Ventilation control devices (VCD’s) and bulkheads are critical controls used for managing risk in underground coalmines. Following the Moura No. 2 mine explosion in 1994, the Queensland Mines Department required that the design of VCDs be based on live testing (such as in a mine testing explosion gallery) and more recently on numerical modelling using measured seal material properties. While the stipulated methods represent an idealistic solution, they are not practical to implement as solutions to daily challenges presented in underground coalmines.Not all VCD’s and bulkheads are placed in areas which have been mined to standard roadway dimensions. Operationally, VCD’s may be required to be placed close to intersections or require large dimensionally different areas (eg overcasts and pre-driven recovery road shutters) compared to the live testing or numerical modelling originally undertaken.This paper describes the various structural engineering methods utilised to account for the design of VCD’s where the operational requirements are non-standard. Siting and construction of VCD’s near the entry of cut throughs and geological structures requires additional design considerations. While VCDs constructed from a single material (eg sprayed mining plaster) are relatively straightforward to design, the addition of multiple openings (doors) or large pipes will complicate the structuralanalysis significantly.Temporary bulkheads used for the containment of grout such as for the construction of pre-driven recovery roads in coal mining have a significantly different risk profile to VCDs and should be designed accordingly. Recent failures and near-misses in such bulkheads have highlighted this issuefor the authors.The existence of an Australian Standard for Underground Mine VCDs and Bulkheads would go a long way to addressing many of the issues raised in this paper. Without a single, industry-accepted reference for VCD design, individual mines will have to continueto exercise their best judgements using whatever local expertise is available to them.

Oct 12, 2022

By J Jones

A common problem in the mining industry is that company exploration groups operate in relative isolation to the rest of the company; resulting in poor knowledge transfer (Qureshi and Briggs, 2006) and often priority conflicts with mine geology, operations and project departments. In recognition of this problem, Newcrest created a Minerals Division responsible for stewardship and governance of mineral assets across the value chain from reconnaissance to rehabilitation. It was recognised at an early stage that effective collaboration both internally and externally would be required to improve decision making, deliver faster cycle times and improve governance.Collaboration in companies is generally associated with the introduction of new IT functions. However, modern IT-based collaboration systems and practices are relatively simplistic compared to the long-standing practices associated with collaboration and knowledge management in science and engineering disciplines such as geology and mining.The authors of this paper have started a trial of a 12-point plan for effective collaboration, which recognises that significant efficiencies can be gained and barriers to future success removed if more effective collaboration can be achieved between science and engineering divisions in a company along with external professionals and with the collective intelligence (Tapscott and Williams, 2006) of the outside world. To meet growth aspirations some companies, like Newcrest Mining Ltd, are adopting this comprehensive, step change approach by moving from a closed model the isolates mine geologists to an open and collaborative model that uses IT visualisation systems strategically. The paper describes how an open model provides people with the right work environment and the right information at the right time, which will help individuals and workgroups to work more collaboratively day-to-day. The aim is to achieve speed, focus and mitigate risk through an environment where everyone and anyone can contribute effectively (Cisco, 2008).

Aug 22, 2011

By H Kim, M J. Sun

In order to reduce carbon emissions from the steelmaking process and achieve carbon neutrality, global steel companies are establishing their own medium to long-term strategies and implementation plans using competitive technological advantages held by each steel company. At this point, Hyundai Steel has formulated a product-oriented carbon-neutral strategy based on innovative processing that makes use of Hyundai Steel’s own strength. Based on our experience in electric arc furnace product manufacturing and blast furnace operation in an integrated steel mill, Hyundai Steel is driving the Hy3 (Hy-cube) project, which involves a unique hybrid production system utilising hydrogen and hydrogen-based renewable energy sources. This initiative aims to achieve carbon-neutral production and eventually specialise in producing premium carbon-neutral automotive parts. The project has originality in that it involves not only designing processes using electric furnaces to produce premium steel products such as car body panels and electrical steel sheets, but also aims to reduce carbon emissions from the process, developing carbon-neutral products based on market demand. To assess the feasibility of the Hy3 project, Hyundai Steel conducted two pilot productions. The first pilot was producing a prototype of lower-arm part using electric arc furnace with three different kinds of raw materials: molten iron, HBI (hot briquetted iron), and scrap. Successful performance evaluation of auto parts with 1 GPa strength was achieved. The second pilot has been focused on tire cord steel, with the first-phase tests yielding a 33 per cent reduction in carbon footprint (CFP). Using the advantages of operating experience in electric arc furnace, Hyundai Steel is preparing for test operations producing various automotive parts using an electric arc furnace (EAF) to advance the Hy3 concept. From a medium to long-term technological development perspective, Hyundai Steel’s blueprint includes producing high-end carbon-neutral steel products using hydrogen-reduced iron as raw material.

Jun 19, 2024

By G Guy, J Summerville

Over the past five years in coalmine slope evaluation the application of 3D modelling has increased significantly as software has become more user friendly but also areas requiring evaluation have become increasingly complex. Often simplistic 2D Limit Equilibrium modelling and analysis has been poorly used to solve slope stability issues by back analysis and subsequent forward predictive analysis. A plane strain condition with slope movement perpendicular to the slope strike is assumed where in reality the problem is more complex. This often leads to a misinterpretation of the failure mechanism because the failure mechanism being modelled in 2D does not generally represent the actual failure mechanism observed in the pit, with 2D modelling often oversimplifying a slope. This paper presents a case study where the initial slope assessment and remedial design evaluation was undertaken as a 2D Limit Equilibrium model which led to an overly conservative and costly remedial solution being implemented. Subsequent modelling of the slope using both 3D Limit Equilibrium and Finite Element methods were able to provide a better understanding of the structural complexities associated and correlate well with slope monitoring data to create a more realistic outcome.

Nov 29, 2022

By A Fern, A Hawkes, o

This presentation will cover: the importance of high-quality safety leadership; insights from a Safety Climate Survey that includes responses from 7903 employees working at 19 Australian mining organisations; the results of a critical control verification (CCV) coaching intervention; and recommendations for improving safety leadership in high-risk work settings. Safety climate is a representation of the deeper culture that exists in an organisation. Safety climate is predictive of behaviour, performance and reporting in organisations. Leaders play an important role in the establishment and maintenance of culture. Perceptions of safety climate were collected from 19 Australian mines (n = 7903 employees). These results indicate that the Australian mining sector is doing well in team support for safety and supervisor safety commitment. There were negative perceptions of willingness to report errors, employee involvement in safety initiatives, psychological safety and emergency readiness. Perceptions of safety leadership were in the fair range, with recognising behaviours perceived lowest, falling in the poor range. The underreporting rate was at 25 per cent indicating that 1 in 4 incidents are not being reported. Analyses exploring climate, leadership, safety behaviour and well-being will also be discussed. The integrity and success of critical risk management systems is often determined by the quality of safety leadership. Leaders need a mix of technical safety knowledge and interpersonal skills to be able to support the workforce to build critical control knowledge that invites open and collaborative discussions to find new or improved solutions. Forty leaders at a major mining operation completed training and 5-weeks of coaching focused on developing critical control verification competencies. The follow-up evaluation demonstrated significant improvements in relationship building, observation of controls and overall capability. Overall, insights from multi-organisation climate data and a prepost coaching intervention will be discussed and recommendations and practical guidance for leaders will be provided.

Apr 16, 2024

By M Qiao, A Sugden, W Zong, J Hines, J Roberts, T Ren

Long-term exposure to respirable dust continues to present an occupational health and safety hazard to mine workers in underground mines. Workers who are exposed to mine dust can develop occupational lung diseases including coal workers’ pneumoconiosis (CWP) or ‘black lung’, progressive massive fibrosis (PMF) and chronic obstructive pulmonary disease (COPD). To demonstrate the exposure impact of certain working conditions and improve dust management in longwall development panels, this paper details the development of a computational fluid dynamicsvirtual reality (CFD-VR) based training tool. The tool has been developed as an educational platform to facilitate the effective communication of workplace health and safety (WH&S) dust control measures for continuous miner operators and engineers. The study introduces a promising approach to model ventilation and dust flow patterns based on site-specific data, employing computational fluid dynamics (CFD) for a detailed analysis and visualisation of these mechanisms. Additionally, an algorithm has been developed for processing the large and complex CFD data sets into a form amenable for visualisation within a virtual reality (VR) environment using standalone VR headsets with limited processing power. This training tool has been deployed to mine sites with the specific purpose of educating users on the hazards of dust emissions and the best practices for control.

Apr 16, 2024

By B E. Hall, D B. Kahler

"'Optimisation' has become a catchcry among many mining companies looking to tell the market how mining businesses will be improved and shareholder value increased. Consequently, the term 'optimisation' has been adopted by many service providers as they look to assist mining companies in achieving their objectives. But the explosion of services and products being offered with the label 'optimisation' has created some confusion. Mining companies ask for help in 'optimising' and service providers offer their assistance because they have a product that has the word 'optimisation' in its title. This is of course an over-simplification, but not by much! The authors' discussions in recent years with both mining companies and service providers have uncovered a number of very different definitions of optimisation.This paper provides a framework for identifying the scope and approach of different mining optimisation products and services, particularly the distinction between optimisation of components of the operation and the business as a whole. The different types of business optimisation are discussed, highlighting the failings of the mining industry's typical approach of strategy selection (as opposed to strategy optimisation). Mining business optimisation is discussed as a wicked problem, with the implication of this on how strategy optimisation models should be used and what the objectives of a business optimisation study should be.Case studies are also included to illustrate how fully flexible strategy optimisation models have been applied to assist decision-makers understand the impacts of changes in one part of the operation on the whole mining and treatment process, from geological models to the sale of product to customers.CITATION:Kahler, D B and Hall, B E, 2016. Strategic decision-making in mining – business optimisation using flexible evaluation models, in Proceedings Project Evaluation 2016, pp 215–225 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By R Bourcier, T Rafferty

Following an underground coal mine explosion, it is important that ventilation is quickly restored to ventilate the mine and affect a mine rescue. To achieve this, surface ventilation fans must be suitably protected from explosion damage, but still able to be quickly restored.A review of all Australian coal mine regulations was carried out, revealing that Australia has no prescriptive regulations that specify the design of explosion relief panels and the protection of ventilation fans in the event of an underground explosion.To better define the level of protection required, this paper reviews and extracts details from relevant major international regulations and standards on the subject.A suitable design methodology for the protection of ventilation fans is presented that could be applied in Australia, using a combination of explosion relief panels, appropriate isolation of the fan, and ventilation shaft/mine design.CITATION:Rafferty, T and Bourcier, R, 2013. The protection of surface ventilation fan installations from underground explosions, in Proceedings The Australian Mine Ventilation Conference , pp 169-173 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 1, 2013

By W Malone, J Garrett

FLSmidth (FLS) has spent the last 15 years, working with customers and engineering houses to deliver innovative improvements in crusher safety, coupled with the latest, maintenance friendly, crusher design. The key focus being to prevent service personnel from working underneath the crusher during maintenance and obviate the need for personnel to be exposed to suspended loads when performing tasks such as, main shaft installation, for example. Improvements include: full top-service capability to ensure the safest and fastest way to disassemble the crusher for maintenance purposes, which also removes the requirement for a service cart; a selfaligning main shaft which ensures remote assembly is now possible, keeping service personnel well out of harm’s way; And rotable shells, or the ability to perform relines off-station, allows for quick shell ‘swap-over’ without the downtime associated with removing, refitting and curing time associated with epoxy backing. The high flow spider improves large material entry into the crusher, reducing blockages and downtime and therefore maintains crusher capacity. Each size of crusher in the range comes with an option to increase the standard feed opening to a larger one if desired to compensate for ‘blocky’ or ‘elongated’ feed material, a common problem for Pilbara hematite iron ores. Power capability has also been increased with a maximum of 1500 kW, to match the higher throughput capacities being achieved. This due to uprated eccentric speeds and larger discharge annulus. Increased eccentric throws and mantle diameters are also now a reality, when compared to more traditional designed gyratory crushers. To keep up with the improved design features of the Mk V, digitalisation has also been upgraded to maximise performance capabilities to ensure that the most efficient reduction and throughput capacities are achieved, whilst utilising the higher powers now available as standard. Condition monitoring ensures that the crusher is at its optimum operating capability by monitoring and adjusting the crusher settings via feedback from additional sensors, ie main shaft spin, temperature and vibration. Camera monitoring capabilities are available as is an advanced oil contamination monitoring system. As a result of the above design improvements, it will be shown that the Mk V range offers benefits such as: enhanced safety features, increased availability, faster maintenance turnarounds, higher power utilisation, equivalent product size at higher throughput capacities and with Remote operation capabilities. All of which result in a gyratory crusher with higher levels of safety and a lower per tonne operating cost.

Sep 18, 2023

Waihi Gold Mining Company Limited, a wholly owned subsidiary of Normandy Mining Limited, operates the Martha gold mine, located in the township of Waihi, New Zealand. The operation, an unincorporated joint venture, comprises Normandy Mining Limited (67.070/0) and Otter Gold Mines (32.94%). Since gold was first discovered at Waihi in 1878, it has formed a key part of the region's economy. In 1909 the Waihi mine was described in a report to Parliament as æthe most important gold mine in Australasia and one of the greatest in the world.Æ That was a record year for production, with 416,813 tons of ore mined and some 1,120 men employed. Today the mine produces up to 1,250,000 tonnes of ore annually, and the project employs some 234 men and women. In 1999 the value of the gold and silver produced ($59 million) made up 47% of Waihi's estimated GDP. Waihi Gold has made significant contributions to the Waihi economy, community and the Hauraki region as a whole. Since the mine was re-opened in 1987, thousands of local people have benefited from the mine. In 1999, consents were granted allowing an extension to the mine life (the Extended Project) and this will result in a further seven years of economic benefits resulting from mining activity. The Company has undertaken extensive consultation throughout project planning, construction, operations and rehabilitation. Ongoing liaison and involvement with all community sectors, including Tangata Whenua and Iwi, local residents, recreational groups and schools remains an integral part of the operation. Throughout the life of the modern Martha Mine, the Company has actively supported the local community in the form of donations, sponsorships, the provision of amenities, and by participating in community events. A well established environmental team exists at the site. Environmental and community performance is measured by an independent five-assessment process, and the Company is committed to achieving excellence through ongoing improvement programmes and staff awareness. When the mine is closed, the open pit area will be transformed into a recreational lake, and the tailings storage facilities will be rehabilitated to become a combination of wetlands, grassed areas and ponds. Resources will be provided by the Mine to ensure the rehabilitated site remains in a safe and self-sustaining, stable condition in perpetuity. The mine is regarded as a showcase on a world standard of how a modem mining operation can successfully coexist with the nearby community.

Jan 1, 2000

By R Jacobs, J Yeates

"The Stockman base metals project is situated in State Forest in the alpine area of East Gippsland, Victoria, adjacent to a National Park and within the headwaters of a major Ramsar-listed wetland catchment and the Murray-Darling River system. Site topography is steep, and elevated (650 m – 1200 m above sea level), and subject to circa 1 m annual rainfall, with occasional winter snowfall. The project consists of two volcanogenic massive sulfide (VMS) deposits to be mined by underground methods and treated in a 1.0 Mt/a central concentrator to produce copper and zinc concentrates for export over a ten year operational life. New resource projects are rare in Victoria. Recognising the sensitive setting, planning for the Stockman Project, which is now in the advanced permitting stage, has focused on balancing economic, environmental and social outcomes to ensure social licence to operate is secured and can be maintained. This has involved close attention to triple bottom line (TBL) risks and outcomes. Stockman has successfully gained State and Federal approvals via the Environmental Effects Statement process. The process of obtaining these approvals has required close attention to effective stakeholder involvement, and management of a lengthy and difficult approvals process, which is still to be finally concluded. This paper is a case study of the process of that permitting and the issues encountered to date. Key learnings from the experience have included: successful approvals require close attention to much more than just the project and its technical aspects and physical setting – effective stakeholder involvement and endorsement is critical the differing consultation requirements for local, regional and government stakeholders, to design and plan implementation of a project to meet TBL objectives, and to gain social licence to operate within the Victorian approvals process, the need for an effective lead government agency with policy authority dealing with material policy change requiring post-closure financial sureties estimating realistic permitting time and cost during the project evaluation phase. CITATION: Jacobs, R and Yeates, J, 2016. Stockman base metals project – sustainability, social licence to operate and permitting lessons learnt, in Proceedings Project Evaluation 2016, pp 98–110 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By G Brudek, P Elestedt

Schalker Eisenhütte und Maschinenfabrik GmbH, Nordic Minesteel Technologies and Bombardier Transportation have developed an evaluation tool that considers the main cost drivers of the rail, truck and conveyor haulage systems on the market today. In almost every circumstance, the advantages of a haulage solution are clear. A haulage system is outlined that is fully automated, including driverless operation, and that provides increased tonnage, safety and equipment life and reduced maintenance downtime. The haulage system has been implemented by a number of companies, including Codelco, LKAB and Freeport’s Grasberg mine. CITATION:Brudek, G, Elliott, R P and Elestedt, P, 2016. Moving mORE for less, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 535–542 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By D R. Anstey

The mining of magnetite iron ore in Western Australia will generate large volumes of waste rock and tailings over many decades. The need to dispose of these materials will result in massive waste landforms that will require significant planning and management. The formation of comparable man-made landforms is relatively common, as exemplified through past practice in gold and iron ore (haematite) mining. Unfortunately, the performance of these landforms, with respect to long-term stability (erosion resistance), the release of low pH seepage water and aesthetic impact, has commonly been disappointing and environmental legacies have been created as a result. Lessons that have been learnt from past, large mining operations indicate that there is a need to rethink the methods of waste disposal and landform development applied to magnetite mining. The environmental compliance criteria applied to magnetite mines for the storage of tailings and waste typically include minimising dust generation (particularly as the tailings and mine waste may contain asbestiform minerals), control of silt, minimising visual intrusion and management of potentially acid forming materials. In addition, the climate of Western Australia and the paucity of both surface and groundwater in the vicinity of the magnetite mines frequently necessitate water consumption to be minimised. This paper discusses the potential to co-mingle magnetite mining waste streams in a variety of ways to concomitantly satisfy the environmental compliance criteria and the operational requirements of the mine. These methods include co-mingling of coarse tailings and waste through dry-stacking, deposition of tailings as a paste, co-disposing of all wastes to form an integrated landform and the co-mingling of all waste streams to produce PasteRockTM (a blend of tailings paste and crushed waste rock). The paper demonstrates how these techniques can be applied to the magnetite mining industry to provide better outcomes than might be achieved using more conventional techniques, currently employed in large-scale mining operations.

Jan 1, 2009

By L Vimercati, R Williams

Transitioning to a green future requires the mining industry to adopt sustainable practices. Filtered tailings are become a key expectation of the communities we operate in and are growing in a number or mining commodities including bauxite, nickel, gold and iron ore. The filtration technologies required range from dewatering screens to vacuum and pressure filters. Particular challenges faced in iron ore applications include large scale which means several units of large size are often required. In addition, a high specific gravity that cause sedimentation issues and a high abrasion level make demands on achieving reliability level at above 90 per cent. This paper describes the testing, selection criteria and specific features required to provide a rational option for equipment and plant design. An example of how this has been applied in an iron ore application in Brazil is used to demonstrate a successful outcome. This project installed four overhead beam filter presses each producing around 200 t/hr utilising a recessed chamber plate, feed pressures up to 15 bar, cake thickness of 5 mm. The moisture lower than 20 per cent that was produced was considered to provide material with handling and geotechnical properties to guarantee a safe stacking. Regular high pressure washing at 100 bar was considered imperative to maintain cloth life and process performance. The correct management of the system (OPEX control) by PLC control ensures a balance between machine potentials and plant needs. With this equilibrium it is possible to limit mechanical wear preserving equipment lifetime.

Sep 18, 2023

By S Fityus, K Koosmen, J Simmons

The purpose of this paper is to therefore investigate the hydrogeological characteristics of tailings, coarse and mixed rejects from coal processing to enable better understanding of the potential for undrained behaviours in coal mine spoil piles. This is achieved by analysing the results from permeability and oedometer testing of tailings, coarse rejects and mixtures thereof. Focus is given to the effect that tailings content has on the behaviour of mixed rejects, the transition point between drained and undrained material behaviours, and the evolution of properties with increasing stress that would occur with increased depth of burial in a mine spoil pile. The implications of the findings are discussed with respect to spoil pile stability.

Jul 1, 2021

By D J. Logan, J Jackson

"As of 1 December 2014, the 2012 edition of the JORC Code requires Ore Reserves to be defined by studies at the pre-feasibility or feasibility level. This paper examines how the pathway for most mining developments is determined in the Pre-Feasibility Study and how a trade-off must be made between the need to make the best decision, the constraints of limited time and resources, and the level of the project’s accuracy and uncertainty in terms of value. Issues considered include framing the scope of the study, planning for robust decision-making and ensuring effective communication between the diverse disciplines within the team.An inherent conflict exists between the immediate value added to a mining business from an increase in ore reserves resulting from a ‘quick’ Pre-Feasibility Study and the long-term value of pursuing a development strategy based on proper investigation and evaluation of the options. Recognition and resolution of this conflict is necessary if a project is to progress into future development stages, both in a timely manner and with the optimal development alternative and strategy.The challenge for project developers and those conducting the Pre-Feasibility Study is to understand what the key deliverables are (ie an Ore Reserve statement, option selection, business evaluation, forward work plan or risks) and how to follow good practice to ensure that these deliver value.CITATION:Logan, D J and Jackson, J, 2016. The pre-feasibility study – big choices, little time, in Proceedings Project Evaluation 2016, pp 122–132 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By M Jones, G Corder, A C. Keith

"Sustainable development has become an issue of ever increasing importance to the mining industry. The Ernst & Young (EY) mining industry risk radar regularly shows several sustainability elements in the top ten risks, with social license the number three risk in the 2014/15 survey. This is supported by the Fraser Institute survey results of 2013 showing that 36 per cent of responding companies indicated public opposition had affected their permitting and approvals process.Addressing these issues in a strategic way across a mining business that is then translatable to actions at operational level has remained an elusive goal in the industry. In addition the environment and community issues are commonly viewed as somewhat separate from financial and production issues and as a compliance cost rather than a value add. In their Harvard Business Review paper of 2011, ‘Creating Shared Value’, Porter and Kramer outline changes in thinking required for companies to improve their business sustainably through considering the societal issues impacted by their operations and products. Along the lines of ‘doing more with less’ companies’ value chains can be redefined to reduce energy, transport, water or other resource usage leaving additional resource for societal usage and/or reducing environmental impacts. This paper explores the linking of the holistic Five Capitals-based approach with the creating shared value (CSV) concept to help businesses unleash the benefits of innovation. Previous papers have demonstrated the potential for Five Capitals approach to create strategic value through sustainable development. Building on previous work, this paper provides an overview of the current status of holistic approaches to mine management and presents the application of the CSV concept on an African mine currently undertaking capitals-based strategic planning. The paper also demonstrates the value that has been created through utilising this approach and proposes improvements for changing the way the industry tackles and delivers benefits related to sustainability issues.CITATION:Keith, A C, Corder, G and Jones, M, 2016. Strategic sustainable development – creating shared value in the mining industry, in Proceedings International Mine Management Conference, pp 249-264 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 22, 2016

By C Tonkin, S D. Howell, P V. Johnson, J Moriarty, P W. Duck

This paper presents the scientific framework underpinning the resource valuation and optimisation model (RVOM). The RVOM is a partial differential equation based real options software package, which helps mine owners optimally plan their operations, understand their project risks, and make defensible valuations. This is achieved in the presence of both financial and physical uncertainty, as well as processing capacity constraints. The RVOM can be applied to any multi-ore mine, open pit or otherwise, where the block-order of extraction has already been planned using existing software tools such as the Gemcom WhittleÖ strategic mine planning package. The RVOM can also take account of multiple commodities within a single mine, and multiple forms of price behaviour. The three key outputs from the RVOM are: valuation, optimal decision and probability of decision. A decision takes account of upfront costs, and can include an unlimited number of transitions between: normal operation, expanded operation, care and maintenance and abandonment (and variants thereof). The RVOM then employs stochastic process theory to determine the probability of reaching these decisions. This gives the mine operators clear indications as to where their risks lie, aiding their mine planning. A clear example of the RVOMs usage to a case-study gold mine is presented, demonstrating its broad applicability, the added value it can create and how users can easily make use of the RVOMÆs state-of-the-art algorithmic engine.

Sep 26, 2011