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The projection of operating costs for mining, processing, and other site operating costs is an exercise which can be fraught with considerable peril. Not only are the physical characteristics of each mineral property unique, but a range of other factors will influence the consultant's approach to compiling cash flow estimates. This paper details some of the techniques used in estimating operating costs for use in order-of-magnitude cost studies and feasibility studies, and describes how to avoid common areas of difficulty. A series of examples relating to open pit gold mining and processing cost estimates illustrate these problems, and various corrective methods are described. The mining and treatment processes, and their associated cost elements, are followed in sequence of operation from on-going ore delineation through to disposal of the product. In addition the problem of assigning management, administration and overhead costs along with taxation allowances is addressed. Of critical importance is the application or possible misapplication of accrual procedures to the cost elements. In many cases such misapplication can introduce more pronounced errors with projects of short duration, such as the typical open pit/C.I.P. gold operation commenced in the last decade. The importance of providing verification of estimates depending upon the standard of the cost study is also investigated, and opinion is provided upon the minimum levels of verification necessary at various stages. Finally, the amalgamation of the various individual cost elements into a coherent whole is reviewed.

Jan 1, 1990

By P Stephenson, G Mosher, M Berry, C Arnold, P Stoker

"An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation. Globally, private minerals companies considering the transition to a public company and entrepreneurs looking to create a new public company through, for example, an initial public offering or by a reverse takeover have many options. For companies with assets around the Pacific Rim, there are arguably five key stock/securities exchanges that actively promote international minerals company listings, and these are located in Australia, Canada, Hong Kong, Singapore and the United Kingdom.Listing on any of these exchanges requires a range of technical, commercial, financial and legal documentation. Each exchange has specific rules and requirements for technical documentation to support the listing process. Once listed, each exchange also has specific rules for technical information to meet ongoing compliance requirements. The nature and detail of this documentation differs for the five exchanges.This paper presents statistics on the minerals company listings on each exchange and provides an overview of the technical documentation required to prepare for an initial listing and ongoing compliance.CITATION:Berry, M, Stoker, P, Stephenson, P, Arnold, C and Mosher, G, 2015. Technical considerations of public listing and ongoing compliance for minerals companies , in Proceedings PACRIM 2015 Congress, pp 101–108 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 18, 2015

By C J. Hogan

Increasing demand for fine grinding to improve mineral liberation and metal recovery and the need for stricter control of the environmental impact of tailings deposition poses problems for tailings disposal. This has led to an increasing number of investigations of properties of tailings and their disposal. This paper describes laboratory model testing undertaken on Macraes mine flotation tailings to provide information on tailings behaviour under conditions of subaerial deposition. The in-place density or 'dry density' of the impounded tailings and the impoundment depth relationship are important for utilisation of the available impoundment storage facility and results of dry density to depth relationships are given for the Macraes mine tailings impoundment.

Jan 1, 1993

Six years ago it was my responsibility to give the presidential address, and now that privilege has come my way again. On that occasion we were gathered atWhyalla and I took the opportunity of putting before members some observations on the problems we then faced in Australia, and some gains we had been able to chalk up during those early postwar years. You may recall that we were then just beginning to emerge from the difficulties of postwar reconstructions - of fuel and power shortages, and a grossly inadequate manpower for the tasks facing us. The expansion of manufacturing industry in Australia greatly stimulated by wartime activities, and by the postwar developments of many institutions - ran ahead of the supporting services and of the supply of labour to do thejobs. For many industries this unfortunate state of affairs had meant operating at rates well below their installed capacities and therefore levels of output insufficient for Australia's rapidly growing needs. When I last spoke to you these problems were still with us, though their intensity was beginning to lessen as a result of vigorous efforts by industry and governments to reduce them. But I must confess that my thoughts on that occasion were full of those problems and of the effect they were having on the iron and steel industry of this country-of the coal shortage, the labour shortage, and the many other difficulties we were then faced with - and all at a time when the stepping up of our postwar expansion programme was of vital concern to all of us.What a different picture it is six years later! How greatly has the scene changed for the better. In 1951 Australia's postwar immigration programme was only in...

Jan 1, 1957

The widely accepted concept of mineral resources are that they are finite - mining therefore being intrinsically unsustainable. Yet the modern global mining industry continues to grow production at strong rates - how can this be? In reality, mining is a complex industry, starting with exploration, development, operations and then rehabilitation and closure. A recent major study of Australia has shown that for most mineral commodities, exploration continues to find new deposits, or expand resources at existing mines. In parallel, however, there are a number of key 'mega-trends' which are growing in their importance - declining ore grades (or quality), increasing tailings and waste rock volumes, the need for deeper mining, more refractory ore types, increasing energy inputs and higher unit energy costs, increasing pollution issues and, of course, not to forget greenhouse gas emissions issues. This paper will present a detailed case study of the ultimate sustainability of the Australian mining industry - showing long term historical data sets on ore grades, waste volumes and economic resources and placing these trends in light of major twenty-first century issues such as energy supplies (especially Peak Oil), climate change and existing and emerging land use conflicts (eg agriculture versus mining). Australia is a critical case study in the sustainability of mining, as it is a major global exporter of numerous commodities, and this is expected to continue to underpin the ongoing industrialisation of countries such as China and India. The ultimate question begs - can Australia actually meet this fundamental challenge, or will our resources run out, or will we be constrained by environmental issues such as climate change, land use or perhaps water? Rather than a mere optimist's or pessimist's view, this paper will present a range of hard data which underpins the debate about the sustainability of mining this century: ultimately, we cannot assume that the patterns of past mining will continue to work in the future. The sustainability of mining continues to hang in a precarious balance.

Jun 1, 2010

By R Berry, N Bonnici, K Nguyen, S G. Walters, M Kamenetsky, C L. Evans

Mineral maps produced via optical and scanning electron microscope û mineral liberation analyser (SEM-MLA) automated mineral identification systems are being used to examine the relationships between mineral phases in spatially well-constrained samples of intact and crushed rock. The use of sophisticated image analysis software allows data pertaining to individual or groups of mineral phases to be extracted from the mineral maps. Analyses of the extracted data can be used to identify populations of phases. Data extracted from the images can be compared with mineral processing data, eg hardness, grindability, degree of liberation, from the same sampling intervals, enabling ore characterisation to be linked to processing behaviours in a spatially constrained, quantified manner that can potentially assist with mine planning and optimisation.

Jan 1, 2008

The stability of parallel underground coal mine galleries and pillars have been investigated using two- and three-dimensional (3D) numerical stress analysis. Anisotropic horizontal in situ stresses and the direction of the excavations have been considered in the numerical analysis. The stability of the tunnels driven in a coal seam at various working depths has been investigated taking into account different strata conditions and then results from two- and three-dimensional numerical modelling studies were compared. Maximum principal stress components have been chosen in three various directions: vertical, parallel and perpendicular to the tunnel axis. Analysis have shown that in the anisotropic in situ stress field, the favourable direction of underground mine openings which have different strata conditions depend not only on the horizontal in situ stresses but also on the vertical in situ stresses. Furthermore, 3D numerical modelling studies have been carried out to investigate stability of multiple entry longwall panel gate roads and pillars with various width-to-length ratios (W/L). Results of the modelling studies have shown that the critical dimension of coal pillars depends on their width and the direction of maximum horizontal stresses.

Dec 6, 2010

By Moresby J. F

Segregation roasting was used to recover more than 85 per cent of copper from crushed, minus 14 mesh refractory furnace-lining bricks. A plus 14 mesh fraction: which was high in copper, could be recycled directly to the smelter, giving an overall recovery of approximately 90 per cent. An oxidation roast at about 700°C was necessary, before segregation roasting, to convert copper sulphides and copper metal to sulphates and oxides. Withsegregatron temperatures in the range 600°-650°C the quantities of solid carbon and NaCI required are 2-5 per cent and 1 per cent respectively. P.V.C. coating from scrap copper wire can be used instead of NaCl as asource of hydrogen chloride for the segregation reaction.

Jan 1, 1978

By D Chalmers, C R. Ward, B B. Beamish

Coal workers’ pneumoconiosis (CWP) has re-emerged as a major concern in the Australian coal mining industry. Harmful effects from coal dust inhalation have been well documented, but the underlying causes and mechanisms of CWP are still debatable. Research conducted in the USA has proposed a plausible link between the presence of pyrite in coal and the prevalence of CWP. Reactive pyrite in coal oxidises under ambient mine conditions to produce various iron sulfate minerals such as melanterite, rozenite, roemerite and szomolnokite. Rapid reaction rates are promoted by the form (size and morphology) of the reactive pyrite present, which provides both increased surface area and increased porosity for easy air access to reaction sites. The products formed from reactive pyrite oxidation are often needle-like crystals with thicknesses in the order of 1–2 µm (eg melanterite and rozenite) and prismatic crystals with thicknesses less than 5 µm (eg roemerite) have been recorded. The densities of these minerals are significantly less than quartz, which makes them prone to becoming airborne with the normal coal dust. In fact, the mix of these mineral salts is commonly referred to as ‘fairy dust’ by mine workers due to the way they can become entrained and sparkle in the mine ventilation air, particularly if they occur in the upper part of a seam that is forming a coal roof. Examples are presented of the various products of reactive pyrite oxidation found in three Australian coal samples, which provide evidence of the physical and chemical mechanisms that would support the USA findings, particularly in terms of a source of bioavailable iron leading to increased inflammatory stress response.CITATION:Beamish, B B, Ward, C R and Chalmers, D, 2017. Products of reactive pyrite oxidation in the mine environment – implications for coal workers’ pneumoconiosis, in Proceedings Australian Mine Vent Conference 2017, pp 87–92 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 28, 2017

The objective of a mine planning exercise is to plan a safe mine that maximises net present value (NPV) for the project. Two primary elements are key to design of a mine plan optimised to maximise profit: selection of an optimised production rate and selection of an optimised equipment fleet. Both depend upon accurate estimations of capital and operating costs for the equipment and for the life cycle of the mining operation. Once a trial production rate is determined, a primary equipment fleet, ie excavators, haulers, and blasthole drills, can be determined based on material characteristics and haulage distances and gradients. An auxiliary fleet, dozers, road maintainers, service trucks, etc can be determined using less rigid productivity criteria. With an equipment fleet determined, operating and support personnel can be assigned based on shift requirements and equipment operating needs; and material and supply requirements can be estimated. Knowing the areal dimensions of the major equipment items, road widths and repair shop dimensions can be determined. Personnel numbers and supply requirements determine the square metre sizes of offices, change rooms, and storage facilities. Reliable sources of capital and operating unit prices and costs for all these items are referenced in the paper. Once preliminary capital and operating cost estimates are calculated by applying unit costs to equipment, personnel, material and supply needs, potential profit can be tested using DCF techniques. An optimised mine plan can then be determined by testing the potential profitability of multiple mine production rates. Because of the economies of scale, full capital and operating cost estimates must be completed for each production rate in order to produce meaningful comparisons.

Dec 6, 2010

W. Johnson (Consultant, Adelaide) : Is there any mineralogical evidence of temperature of formation of the amphiboles and other minerals present in the crocidolite veins and country rocks7.N. A. Trueman: I am not aware of any definite evidence of the temperature of formation of these minerals, but am of the opinion that high temperatures would not be present during crystallization.No evidence from the qUl'trtz, magnetite and hematite of formation temperatures is indicated and, as the carbonate is later than the other minerals it does not supply any data either.According to Miyashiro and other workers who have studied the composition and stability of the glaucophaneriebeckite series, minerals of riebeckite composition are stable over a wide range of P, T conditions. Recent work by W. G. Ernst, of the University of California, indicate that, in the presence of an Fe203/Fe304 buffer, riebeckite and crocidolite are more likely to form at low temperatures. The occurrence of riebeckite-crocidolite as authigenic minerals has been reported from several localities.Dr. MacLeod (Geol. Surv. of W. A.): Recent regional mapping by the Geological Survey of Western Australia has revealed a total thickness of at least 30,000 ft for the Proterozoic sediments in the Hamersley Basin. In this succession the asbestos-bearing beds of the Brockman Iron Formation at Wittenoom are overlain by some 20,000 ft of younger sediments and volcanics. With such a thickness of superincumbent material, it seems perfectly valid to involve

Jan 1, 1963

By Vaughan J. P

The Pegmont deposit is a stratiform Pb-Zn sulphide body occurring in a thin, iron-rich metasedimentary unit situated near the top of the Kuridala Formation, a part of the Mary Kathleen Group of the Middle Proterozoic"Eastern Geosyncline" succession of the Mount Isa-Cloncurry district. The deposit appears to have developed in a shallow basin or depression on a sea or lake floor.Detailed chemical and mineralogical study of seven diamond drill cores through the ore horizon shows that in addition to galena and sphalerite the orebody contains a large range of iron-rich silicates and aluminosilicates.Further, five drill cores selected to represent a section from basin centre to basin edge exhibit clear and systematic chemical and mineralogical changes in the ore horizon in both a vertical and, most importantly, ill a lateral sense.Reconstruction of the sedimentary environment of the ore horizon as a whole shows this to be a silicate facies of a phosphatic, manganiferous iron formation or, more accurately, of "ironstone" in the sense of James (1966, U.S. Geol. Surv. Prof. Paper 440, chapter W).On the basis of both mineralogy and chemistry this silicate facies may be subdivided into three microfacies according to the dominant iron silicates characteristic of each: a fayalite microfacies, a hornblende-clinopyroxenemicrofacies, and a garnet microfacies. Significant Pb-Zn sulphide concentrations are confined almost entirely to the fayalite microfacies.

Jan 1, 1979

By K S. Fisher, J D. Pease

The installation of the George Fisher flowsheet in the lead/zinc concentrator at Mount Isa Mines Limited has recently been completed. The George Fisher flowsheet involved moving flotation capacity from the lead circuit to the zinc circuit and changes in zinc circuitry, changes in the reagent regime and increased regrinding capacity, using IsaMills, to regrind some streams to 80 per cent passing seven microns. The project was highly successful, delivering a five per cent increase in zinc recovery within a fortnight of commissioning. The George Fisher flowsheet was developed over six years. Laboratory work built upon the knowledge gained from investigating and processing the Mount Isa and Hilton orebodies. The engineering design and construction for the brownfield expansion of the existing lead/zinc concentrator had significant involvement from the operational, maintenance and technical personnel. Experienced personnel were seconded from the concentrator to the design and construction groups to ensure smooth integration of the new flowsheet into the existing concentrator with minimum downtime, and maximising the reuse of existing equipment. The combination of thorough design, good project integration with operations, and a good commissioning plan allowed almost immediate delivery of project gains. The project was highly successful, the full design improvements were achieved within two weeks, allowing the focus to move to developing future improvements.

Jan 1, 2000

By S C. Dominy

The grade of ore at Marvel Loch mine is directly related to the presence or absence of shear zones and quartz-sulfide-rich hornblende (¦ diopside) veining within areas of plagioclase alteration. An experienced geologist can identify these features in hand specimen. Practical rules have been developed to assist this visual identification. The structural sites and styles of alteration and veining most conducive to gold mineralisation have also been determined. The work has enabled a better understanding of the geological controls on mineralisation at Marvel Loch, and has clarified geological understanding for optimisation of grade control modeling, ore block mark-ups, and minimisation of ore loss and dilution during excavation. In addition to this, it has enabled a detailed understanding of mine scale structural controls, geometry and relative grade relationships.

Jan 1, 2003

This Institute, by nature of its charter, draws on various persons in the mining and metallurgical world of Australasia for its President from year to year, and consequently when the presidential address is given by one of these people the topic. which they generally select is a topic to which they are accustomed and on which they are able to speak with authority.As most of you know, my prime object in life has been concerned with steelmaking, so tonight you can steel yourself to the thought that you are going to be spoken to about steelmaking.Even if that were not the case, and were I not particularly interested in steelmaking, I think it would be appropriate to look at steelmaking in a broad sense on a basis of pure metallurgical interest, because the steel industry is going through as big a revolution today as it went through something over one hundred years ago when Bessemer made a theory become a fact.Bessemer, and as the Americans prefer to think Kelly, separately conceived the idea of blowing cold air through molten pig iron, and, contrary to the then general belief, this did not result in cooling of the metal but succeeded rather in heating it, and in burning out of the rather crude pig iron the impurities which prevented it from becoming a ductile metal.For many years before this, steel had been made in a very small painstaking way by what was known as the crucible process. Benjamin Huntsman is credited with having developed the crucible steel making process to a stage where it could make a reliable and trustworthy product, but he...

Jan 1, 1961

Rb-Sr measurements on total-rock samples of granitic rocks from the Mount Isa region have confirmed the existence of two periods of granite-forming activity. The Kalkadoon Granite, together with the Ewen Granite and possibly an older phase of the Sybella Granite, has been shown to belong to the earlier age-group at 1760 m.y.; the Wimberu Granite and a pegmatite associated with the Sybella Granite have been dated at 1540 m.y. The initial Sr ratio suggests that the Wimberu Granite may be new material of deep-seated origin.Further Rb-Sr measurements have confirmed previously-reported K-Ar results upon biotites from these rocks, whilst showing that, in this metamorphic terrain, biotites have lost varying amounts of radiogenic Sr and Ar, and therefore yield ages which are younger than the true age of the second event.

Jan 1, 1966

By H Han, W Wang, E Zhou, D Duan

"In this study, physical, chemical and microscopic characteristics of high phosphorus oolitic hematite were studied firstly. Based on which, the new methods of high phosphorus hematite used in the æsolid state reduction by rotary hearth furnace - magnetic separationÆ and iron nugget by rotary hearth furnace direct reduction processes were discussed. The results showed that high temperature, low basicity and high carbon content is conducive for the apatite in iron ore to reduce into molten iron, but not conducive to the removal of phosphorus. Through optimisation of process parameters, dephosphorisation rate of high phosphorus hematite is more than 60 per cent by æsolid state reduction roasting-magnetic separationÆ process while that is up to 80 per cent by iron nugget process. This study can provide theoretical and technical basis on economical and rational use of high phosphorus oolitic hematite.CITATION:Han, H, Duan, D, Zhou, E and Wang, W, 2013. New methods for high phosphorus oolitic hematite dephosphorisation by direct reduction process, in Proceedings Iron Ore 2013, pp 391-396 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Aug 12, 2013

Some 50 miles of tunnel have been driven in the Snowy Mountains Area since tunnelling commenced in 1951. Hates have improved progressively due to the know-how of American supervision and use of large matched equipment of modern design.The work has been carried out by contractors, working almost exclusively under schedule of rates contracts. The Authority has maintained active research into tunnelling problems, especially that of support, and this has resulted in considerable economies and improved rates of progress. The contractors also have sought economies both by management and equipment techniques. Ammonium nitrate came into favour as an explosive essentially because of its lower cost, and handling techniques have improved progressively. Rock conditions preclude use of the "Mole" type equipment in its present stage of development, but one contractor introduced the "sliding floor" and this could exert a great influence on future tunnelling methods.Examination of tunnels that have been in service for some time confirmed the quality of the work and endorsed the policy of continued research and development.GENEHALThe Snowy Mountains Scheme provides for the diversion of the Snowy and Eucumbene waters through two transmountain tunnels to the western river systems. These diversions, together with additional regulations provided for waters already flowing inland, will provide an average additional discharge of 1,818,000 ac it per year for irrigation.Furthermore, approximately 6,000 million kWh of electrical energy will be generated annually in power stations with a total installed capacity of some 3,000,000 kW (Fig. 1.).INVESTIGATIONThe aim of investigation work is firstly to collect sufficient information to allow the overall scheme to be planned and then to follow up with detailed information on eachproject. The correct balance for all aspects of this work is a matter for keen judgment, as the tunnels must be planned...

Jan 1, 1963

By D Craw

Sulphur-rich minerals such as authigenic pyrite (FeS2) are commonly associated with coal mine workings. Metallic elements such as arsenic (As), copper (Cu) and zinc (Zn) are enriched in the pyrite relative to their concentrations in the surrounding environment. Exposure of pyrite and coal to air and water results in a series of oxidation and hydrolysis reactions that are commonly catalysed by species of Thiobacillus bacteria. These reactions lead to a lowering of the pH in the drainage waters (acid mine drainage, AMD) and subsequent mobilisation of trace metals in environmentally significant concentrations. This study assesses the spatial distribution of As, Zn and Cu concentration in water in relation to pH and Eh (redox potential) downstream from the tailings at the Wangaloa opencast lignite mine in southeast Otago. This mine was abandoned in the late 1980s due to a decrease in the economic viability of mining the lignite. The area is showing the characteristic symptoms of AMD, which is detrimental to the health of several Pinus radiate growing on some of the tailings. The pH of the drainage waters can get as low as 2, and in some instances, lower, but it returns to near neutral (pH 6.5) up to 200 metres down stream from the base of mine waste piles. It is well documented that the atmospheric oxidation of pyrite is catalysed microbially, causing a substantial decrease in the pH of the drainage waters. Acidification is then counteracted predominantly by natural abiotic remediation processes occurring downstream.

Jan 1, 1999

Reasons are given for the seemingly excessive public concern with taxation of the mineral industry. Optimality of mineral extraction is a concept that requires careful definition in terms of one or more objectives. Once defined, the impact of taxation upon optimal mineral extraction may be studied; findings from earlier work on this topic are presented for two basically different cases. In conclusion it is observed that the pursuit of optimality requires the availability of highly skilled engineers; in the event of a large-scale mineral development it is this resource that is probably scarcest of all.

Jan 1, 1983