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By N Cusworth, W R. Mackenzie

"In 2007, the authors presented a framework for the conduct of resource project feasibility studies and provided guidance on minimum standards and best practice (Mackenzie and Cusworth, 2007).This paper will present the authors’ observations in relation to feasibility studies undertaken to support investments made during the unprecedented period of resource project capital investment since 2007. It will also provide comments on general trends in the mining industry’s approach to project assessment and update recommendations on best practice.CITATION:Mackenzie, W R and Cusworth, N, 2016. The use and abuse of feasibility studies – has anything changed?, in Proceedings Project Evaluation 2016, pp 133–148 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By D Prior

The Australian mining industry is a significant contributor to the nation’s greenhouse gas (GHG) emissions, and like any industry, it must make efforts to reduce these. Medium- and long-term strategies will include the replacement of diesel engines with alternative energy sources, but what can be done in the short-term to reduce diesel consumption and hence CO2 emissions? Haul trucks are identified as the major contributors of CO2 emissions in the mining fleet and this paper focuses on firstly identifying what drives haul truck emissions and secondly, discussing what is the role of the Fleet Management System (FMS) in reducing these. A key enabler of this is having a robust fuel consumption model within the FMS, and I describe how this may be done. Besides novel approaches to incorporating fuel consumption (CO2) management into truck assignment algorithms, this paper also describes how the FMS can be used to implement and manage procedures and policies to reduce haul truck emissions.

Jun 22, 2022

Mr. President, Ladies and Gentlemen, it gives me great pleasure to welcome you, on behalf of the Council and Administration, to this University and extend to you our very best wishes for a most successful and stimulating symposium. We as a College of the University of N.S.W. were always proud of the excellent support we received from your Institute members and the close association that existed between our organisations. Now we have matured into the University of Wollongong and have to stand on our own feet, we will need all the support we can get from such bodies as yours to ensure that we are not only producing graduates but are also playing a vital role in the community. Although there is no planning for a school of Mining Engineering in the near future, we do look forward to this being a viable proposition eventually and we will then be able to offer to your Institute wider facilities for your activities and ones which will embrace both the Mining and Metallurgy phases. Thank you Mr. President.

Jan 1, 1975

For years traditional optical microscopic techniques have been used successfully to carry out mineralogical studies on processing products. Essential information could be obtained by supplementing microscopic data with X-ray powder diffraction data, chemical analyses, etc. However, most of the time the mineralogists working on plant related issues, would supply qualitative information to the metallurgists, due to quantification not being possible in the available time. Since the late-80s, the use of semi-automated to automated techniques for mineral quantification has impacted positively on the use of mineralogy for optimising processing plants. Rustenburg Platinum Mines (now Anglo Platinum) were the first mining company to purchase a Qem*Sem in 1987. With the success achieved in quantifying the minerals in the concentrator streams of the Rustenburg Platinum operations, a second instrument was purchased soon after. These instruments have proven invaluable tools in understanding the flotation behaviour of the sulfide and gangue minerals in the various reefs of the Bushveld. Restrictions in the resolution of these earlier instruments, as well as the time involved in searching for and correctly identifying the fine-grained platinum-group minerals (PGM), meant that these investigations focused on the deportment of the more abundant base metal sulfides, rather than on the actual PGM. The Mineral Liberation Analyser (MLA), which became available in the late 1990s, was well suited to detect and analyse minerals occurring in trace amounts such as the PGM. Anglo Platinum was the first mining company to purchase such an instrument and now has fourteen systems operating at the AR Crown Mines site. One of the applications of these systems involves the study of feeds, concentrates and tailings from the various concentrators on a monthly basis. These routine investigations provide information on a variety of mineralogical parameters, including liberation, association, and grain size. Results are used to emphasise areas for improvement, and specifically underline those areas where improvements will have the most impact on recovery. After new or different technologies have been implemented, mineralogical characterisation of the different process streams is an essential component in the assessment of the impact of these changes on flotation performance. In addition, the knowledge is databased for future reference to draw trends across the various concentrators around the Bushveld complex, and is also used for comparative studies when plants experience high losses to tailings. Due to the success of these investigations the question was posed whether it was possible to obtain data on a daily basis, as compositing samples could hide the impact of daily events. Although the instruments currently used are suitable for a research environment, these are not ideal for mine-site implementation. For that reason Anglo Platinum, together with FEI embarked on a development program to develop a system that can be implemented on-site to measure the important mineralogical characteristics on a daily basis. Important requirements for such a system include time-to-data, ease of use and regular quality control. Highlighting some results from concentrator studies, the presentation will review the progress on the development of automated mineralogical techniques for fast, automated mineral measurements. This is an abstract only. No full paper was prepared for this abstract.

Sep 13, 2010

By B T. Qin, C Zhu, Y W. Jia, Y Lu, F L. Li, Q L. Shi

Air leakage through rock fractures in coal mining is a major cause of coal spontaneous combustion. In order to overcome the deficiency of the existing fire control technology and prevent coal spontaneous combustion by isolating coal from oxygen, the article proposes a novel technology of inorganic solidified foam (ISF) with high expansion to fill fractures effectively. ISF consists of fly ash, cement, setting accelerator, redispersible polymer powder, water and aqueous foam. For preparing homogeneous and stable ISF, a preparation system with a pore type foam generator, a mixer device installed with a hollow shaft and helical blades, air compressor, slush pump and monitoring instruments was developed, and the working principles of key devices were elucidated. Based on a series of experiments on the different ratios of each component material and technological parameters of the preparation system, ISF with a foam expansion ratio of 8~10 and dry density of 250–400 kg/m3 was prepared. The relationship between elastic compressive strength, modulus of elasticity and density was summarised. Based on the injection experiment for fracture of loose coal pile with high temperature, the characteristics of sealing air leakage, compressive strength, thermal insulation, flow and cooling of ISF in the fresh state were investigated, indicating that ISF can effectively cut off the air leakage and cover the coal sample to reduce the temperature in the earlier stage, and ISF can remain stable and not crack. The ISF was applied to Luwa coalmine to seal small coal pillar pressure fractures and loose coal fractures in goaf. After press-casting the ISF in Luwa coalmine, the pressure-difference of inner-outer increased, meaning the effect of external conditions on the pressure-difference decreased, showing that it could plug the air leakage effectively.CITATION:Qin, B T, Shi, Q L, Lu, Y, Zhu, C, Li, F L and Jia, Y W, 2015. The novel technology of inorganic solidified foam with high expansion for preventing coal spontaneous combustion, in Proceedings The Australian Mine Ventilation Conference, pp 121–126 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 31, 2015

By A Horne, Z Graszkiewicz, D Dettrick, R Evan, B Neal

"Most of VictoriaÆs rivers and aquifers are already fully allocated or reaching full allocation. In regions without a well-established water market, access to water entitlements to facilitate new development is limited. In areas with established water markets, mine developers face an undue cost burden in circumstances where they are only planning to consume a fraction of the water entitlements that they purchase. The challenge for water managers is to ensure protection of water resources and other water users without creating an unnecessary disincentive for those types of developments that return most of the water that they take from water sources. The opportunity for development of a mine is explicitly linked to a particular location and must be developed where a resource is located or it cannot be exploited at all. Regulatory arrangements that facilitate development may have a positive impact on economic development, particularly where water availability is a potentially limiting factor. Net volume licensing has the potential to allow increased economic outcomes through improved licensing of access to water. Net volume licensing differs from traditional water licensing in that it authorises access to water on the basis of ænet useÆ rather than æthe gross volume takenÆ. This paper asks under what conditions net volume licensing is likely to be feasible and effective. In particular, the paper examines the information and accuracy requirements to allow net volume licensing decisions to be made. This work is based around five case studies in Victoria that were used to examine the potential for net volume licensing for mines and quarries. Assessing a potential net volume licensing arrangement requires the regulating authority to have an understanding of the inputs and outputs of water to a site. In contrast, assessment of take and use licences consider only a single input. It was concluded that the conditions that lend themselves to net volume licensing include: well understood water inputs and outputs, including appropriate accuracy of information where the location of site water inputs and outputs are the same where the timing of extraction and discharge can be managed to minimise impact on the water resource.A key remaining challenge is establishing an accounting framework that allows net volume licensing under current water resource limits. CITATION:Graszkiewicz, Z, Horne, A, Neal, B, Evan, R and Dettrick, D, 2013. The practicalities of implementing net volume licensing of water use in mines and quarries - a discussion based on Victorian case studies, in Proceedings Water in Mining 2013, pp 241-250 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Nov 26, 2013

By J O. Watson, V S. Vutukuri

This paper presents results of an investigation on acoustic emission characteristics of granite, sandstone and rock-like material in the unconfined compression and tensile tests. Both the acoustic emission signature and stress-stain curve are analysed in the experiments.The experimental results show that different acoustic emission characteristics are observed at different stress and deformation stages in unconfined compression and tensile testing. Extensive and unstable acoustic emission changes may be interpreted as indicating failure of the rock.

Jan 1, 1999

By R Riquelme

The El Salvador porphyry Cu deposit (26¦ 15Æ Lat S, ~2700 masl) and associated exotic mineralisation is situated at the back-scarp of the late middle Miocene Atacama pediplain in the western Precordillera. New, together with published 40Ar-39Ar data from El Salvador combined with morphologic analysis reveal that the palaeospring plumbing system related to exotic mineralisation at the Damiana exotic Cu deposit and the local geomorphology has not changed fundamentally between the late Eocene and late Miocene. Stable H/D isotope data on supergene alunite from El Salvador indicate an overall increase in dD values (VSMOW) from -74ë at 35.82 ¦ 0.95 Ma to -23ë at ~11 Ma. The transition from strongly to moderately negative deuterium values occurred between ~16 and ~13.5 Ma. Supergene alunite from the El Hueso (3950 masl) sedimentary rock-hosted epithermal deposit ca 35 km SE from El Salvador was dated at 8.19 ¦ 0.01 Ma and yielded a dD value of -25ë. We interpret the increasing deuterium excess as the result of strong evaporation and recycling of meteoric water after ~15 Ma and as indicative for a change in precipitation patterns and climate desiccation. In contrast, the strongly negative dD value for late Eocene supergene alunite points to a more humid climate and an elevation similar to the present. The late Miocene supergene activity at El Hueso is probably related to an uplift of the Precordillera to elevations sufficient for capture of orographically controlled precipitation. An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation.

Jan 1, 2008

Thank you for your introduction and the opportunity to speak at such an important forum. I feel honoured to be the Tas McKee speaker for this yearÆs conference. I can honestly say that Tas McKee typified the spirit that has ensured the survival of the mining industry despite the modern-day challenges that we encounter. He was one of the most influential people in the New Zealand minerals industry. In 1938, with his father and brother, Tas established Lime & Marble Limited. Over its history, this company evolved from its original base of marble mining to diversify into gold mining and exploration for other industrial minerals, uranium, precious and base metals. He was truly a pioneer that persevered against the odds.   That leads me to the subject of my discussion today. I am going to delve into todayÆs challenges as they apply to gold companies. While we gold miners should be generating record returns, the gold industry shareholder return performance in this buoyant market has barely equalled that of the gold price. It is a dilemma but one that can be resolved with the right strategy.

Jan 1, 2006

By G S. Esterhuizen, M M. Murphy, T S. Bajpayee

The strength reduction method (SRM) has been implemented in the FLAC3D finite difference software and applied to coalmine entry support evaluations. The FLAC3D numerical models have been calibrated against instrumented field sites in varying geologies, depths and field stress conditions. The calibration between the field and model results obtained a satisfactory match for rock deformation and support response. Previous research has also developed good correlations between numerical model stability estimations using the SRM and empirically derived stability estimations using the analysis of roof bolt systems (ARBS) software and the coalmine roof rating (CMRR). The purpose of this paper is to further apply the SRM to investigate how specific geotechnical and support parameters can impact coalmine entry stability. Results from different studies demonstrate how the calibrated models were used to investigate a few of the well-known questions in both mine design and support design. For mine design the impact of strong and weak beds in the roof strata, rotating the principal stresses and weakening the floor on excavation stability is investigated. For support design the impact of support length, support spacing and adding cable bolts to the design is demonstrated. These scenarios are evaluated in developmental coalmine entries for a variety of geology and field stress conditions. Stability factors are calculated for each scenario using the SRM. The SRM allows the impact of each parameter to be quantified and allows the support system to be optimised for given geotechnical conditions.CITATION:Esterhuizen, G S, Murphy, M M and Bajpayee, T S, 2014. Analysis of geotechnical and support parameters on coalmine entry stability using the strength reduction method, in Proceedings AusRock 2014: Third Australasian Ground Control in Mining Conference , pp 383–392 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 5, 2014

By J E. Everett

Maximising ore tonnage at a selected target grade requires that appropriate ore identification criteria be established. Iron ore mining block models may consist of many millions of estimated blocks, each block corresponding to the selective mining unit (SMU), with grade interpolated from drill hole data. Each block can be considered as a potential ore candidate. Analysis of such a huge database can require large computational resources, especially for sensitivity analysis requiring multiple computations. However, an alternative streamlined approach is possible, where the data are compressed to an appropriately smaller and representative subset. The consequent data reduction not only makes it feasible to consider the simultaneous analysis of multiple pits but also considerably speeds up computation, enabling sensitivity analysis of the potential ore tonnage as a function of the required grade. Ore identification criteria can be successfully established using appropriately chosen reduced data comprising less than one per cent of the blocks. The ore identified is virtually indistinguishable in tonnage and grade from the ore that would be selected using the entire block model.Two methods of data reduction are tested: sampling (using a proportion of unaltered blocks) and binning (consolidating groups of blocks to a single average grade). The source blocks are first sorted (such as by location, analyte grade, principal component score, random order or value) before sampling or binning. In this study, the sorting options considered were by location and Fe grade. The effectiveness of each method was evaluated using the block model subsets to select the maximum tonnage of ore at a specified target grade. Block model data from an anonymous Pilbara iron ore project with about one million blocks averaging 1.132 kt were used. The blocks are from multiple resource models, to be blended to a single product. Sampling is shown to be superior to binning because sampling preserves the full variability while binning, although matching the mean block grades reduces their variability.It was found that the appropriately sampled data sets (sorted by location) gave results virtually identical to the results for the full data set, even when the samples comprised less than one per cent of the original blocks. The reduction in computer time to identify maximum tonnage at a specified grade was approximately proportional to the sample percentage. The increase in computation speed greatly facilitated sensitivity analysis. A sampled data set of one-eighth the total block model was used to investigate the effects of changing each of the component grades around the original grade specification. The results of this sensitivity analysis are discussed, and illustrate the potential benefit of carrying out sensitivity analysis in determining feasible and marketable product grades.CITATION:Everett, J E, 2015. Block model data reduction and sensitivity analysis, in Proceedings Iron Ore 2015, pp 263–270 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

By S Tjerry, S Szylkarski, B Willis-Jones, I Dubinski

Achieving relinquishment of mining sites is becoming increasingly difficult, with a study by Byrne (2013) estimating that out of a set of 73 mining and metals sites around the world, less than ten per cent had achieved relinquishment over the last 50 years. The median forecast duration of time allocated for water management in the closure plans studied was approximately ten years, while the reality at the actual sites was a median duration of 22 years to date and growing.One of many challenges in mine closure planning is managing geomorphic stability of stream diversions. The challenge is to be able to demonstrate to regulators and the community that a proposed rehabilitation solution will be stable over the long term.During the mining operations, local watercourses and surface drainage can be diverted and managed using engineered channels and drainage structures. However, during the post-operations stage, the engineered channel and drainage may require modification to a more natural condition that will facilitate long-term environmental sustainability. Achieving geomorphic stability of a diverted watercourse is difficult, with the majority of stream diversions in Australia failing to meet expected design performance (White et al, 2013). Geomorphic stability is a complex process that is controlled by a combination of factors, including hydraulic flow conditions, geotechnical conditions and vegetation.This paper proposes that a fully dynamic and deterministic geomorphological model can be used to supplement the traditional empirical approaches to assess long-term geomorphic stability. The paper provides an overview of the geomorphological models and how they have been applied in engineering studies for forecasting future evolution of stream systems. The paper discusses the potential application of these models in the mining industry for forecasting and optimising surface water structures for the operations and post-operations stages of the mining cycle.CITATION:Szylkarski, S, Willis-Jones, B, Tjerry, S and Dubinski, I, 2016. Improving the reliability of stream diversion designs in mine closure plans using a morphological tool, in Proceedings Life-of-Mine 2016 Conference, pp 212–215 (The Australasian Institute of Mining and Metallurgy: Melbourne)

Jun 28, 2016

By J Vann

Mineral Resource and Ore Reserve estimation is a challenging and demanding field, requiring application of professional knowledge, skill and experience of the highest order. If the many potential pitfalls are to be avoided, however, there are two other requirements which are of equal, if not greater, importance:good communication, and common sense. Estimation of Mineral Resources and particularly of Ore Reserves is almost always a team effort, involving a number of disciplines. Good teamwork requires good communication, both between team members and between the team and other parties having an interest in the process. Breakdown in these lines of communication can have far reaching effects on the project under consideration. The need to use common sense during a Resource or Reserve estimation exercise would seem to be self-evident. It is surprising, however, how often rigid adherence to procedures and methods prevails at the expense of clear thinking, usually with adverse and sometimes fatal effects on the project under consideration. This has become increasingly true as computerised methods have assumed a central role in Resource/Reserve estimation. The critical question that estimators should ask themselves at all stages of the process is: æIs what is being done sensible given the data available, what is known of this deposit and the purpose of the exercise?Æ

Jan 1, 1999

Determining the controls of high-grade mineralisation at Vera Nancy requires careful data collection and assessment on a global and specific deposit basis. The techniques developed over 60 years ago to analyse structure, grade and width data are just as applicable today and can be enhanced using modern geological modelling software. High ore grades at Vera Nancy are controlled by both the primary geometry of the mineralised structure and the intersections of the main mineralised veins with subordinate splay veins. The main mineralised structure dilated as a consequence of extensional tectonics while the splays acted as conduits bringing oxidising surficial fluids into mixing zones precipitating high gold grades. Near-mine exploration is focussed on identifying zones of vein flexure and splay interaction to locate the relatively small high-grade shoots. Data modelling in a 3D environment is an essential process for understanding the geometry of the system being explored.

Jan 1, 2000

By R Whittering, C Greet

High chrome grinding media has been used in the mining industry for quite some time, as it often proves economical on a wear basis. However, it is unusual for an operation to change to high chrome solely due to its metallurgical benefits. KagaraÆs Mount Garnet operation made the change from forged steel to high chrome media after laboratory testwork indicated that copper grades and recoveries would improve. The outcome was remarkable with positive changes in pulp chemistry throughout the circuit accompanied by marked improvements in copper, lead and zinc grades and recoveries. Reagent dosage rates were reduced, often by more than half, and the grinding media wear rate dropped to less than a third of the wear rate of the forged steel media. The economic analysis showed that out of the total increase of revenue and savings from metallurgical improvements and reagent and media consumption reductions the metallurgical improvements made up approximately 73 per cent, the reduced reagents saved 25 per cent and the savings through reduced media wear contributing by just over one per cent. This indicates that the popular view of high chrome media only being trialled in the plant for wear economics is outdated and the focus of operations should be shifted to using high chrome media for the metallurgical benefits.

Jan 1, 2006

By D J. Brake

The risk from fire remains one of the most serious of underground mine disaster scenarios. The impacts of mine fires on the underground ventilation system and the production of toxic gases have been difficult to model and therefore assessments have relied largely on empirical data, historical precedent and subjective opinions. Underground fire modelling software has had limited availability and been technically challenging and time consuming to use especially for routine mine investigations. There has also been no well-accepted set of assumptions for fire modelling in mines, which has resulted in a lack of confidence in adopting its use more widely. This paper describes modelling of three critical fire scenarios in underground hard rock mines: a fire (LHD) in an underground diesel refuelling facility, a fire in an underground explosives magazine and a fire on an underground ore transport conveyor. Modelling was undertaken using VentsimÆs VentFIREÖ fire simulation module. It describes the basis of design, the key assumptions, the methodology used and provides examples of the outputs, conclusions and recommendations. It reviews the impacts of these fires on egress and entrapment strategies in the mine. Some general principles regarding improvements to ventilation circuit design based on this analysis are also recommended. Whilst the fire scenarios were based on actual case studies, they have been disguised for this paper.CITATION:Brake, D J, 2013. Fire modelling in underground mines using Ventsim Visual VentFIRE software, in Proceedings The Australian Mine Ventilation Conference , pp 265-276 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 1, 2013

By A R. Cruden, M S. Egglseder

The formation of banded iron formation (BIF)-hosted high-grade iron ore deposits in the Hamersley Province, Australia has been debated for decades. Although a structural control on their formation is widely accepted, only the roles of large-scale structures (ie faults and folds) formed by brittle and ductile deformation have been considered to date. However, the deformation of multilayered sequences in the Hamersley Province (ie the Mount Bruce Supergroup), with their contrasting rheological behaviours, creates challenges for understanding the complex structural framework at regional to deposit scales, including the significance for mineralisation and orebody location.Our approach to understanding these complex relationships is based on an established principle of structural geology, which is to extrapolate microscale structures to deposit-scale structures and vice versa, supported by state-of-the-art 3D modelling techniques. Complexly deformed hand samples associated with the Mount Tom Price iron ore deposit (Hamersley Province, operated by Rio Tinto Ltd) have been analysed and visualised with 3D explicit (Move™, Midland Valley Ltd) and implicit modelling software packages (Leapfrog™, AranzGeo Ltd) and supported by microstructural investigations (optical and X-ray microscopy) and fieldwork.Our study shows that the deformation of BIFs in the central Hamersley Province is controlled by microscale chemical processes (ie dissolution precipitation creep) due to rheological differences between iron oxide and chert layers, contrasting fluid flow properties and layer thickness variations. These processes account for the removal of vast amounts of silica, its transportation by diffusion in the presence of a fluid and reprecipitation at low-pressure sites. Consequently, this structural framework was used by different upgrading fluids to form iron orebodies.CITATION:Egglseder, M S and Cruden, A R, 2015. Evolution of a structural framework for high-grade iron ore deposits, in Proceedings Iron Ore 2015, pp 255–262 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

Study on Reasonable Mineral Processing Flow Sheet of Yunfu Low-Grade Pyrite Ores Low-grade ores in Yunfu Pyrite Mining Area were investigated, in order to find an economical, reasonable and environment-friendly mineral processing technology, which is of low consumption and high efficiency in pyrite recovering, which can ensure that the quality of pyrite concentrate product is eligible for sale and the sulfur content of the discharged tailings meets the national emission standards. A flow sheet with a classification, a jigging for coarse-grain minerals and a spiral chute separation for fine-grained minerals was adopted, and the sulfur grade and recovery of the pyrite concentrate is 35.50 per cent and 86.70 per cent respectively, while the grade of tailings is only 6.70 per cent.

Sep 13, 2010

At depths greater than several kilometres in the crust, elevated temperature, confining pressure, and the presence of reactive pore fluids typically drives rapid destruction of permeability in fractured and porous rock. Ongoing deformation is required to regenerate permeability and facilitate the high fluid flux necessary to produce hydrothermal ore systems. A dominant influence on the evolution of fluid pathways in hydrothermal systems is provided by stress states, fluid pressures and reactions that drive permeability enhancement and compete with permeability destruction processes (Cox, Braun and Knackstedt, 2001). An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation.

Jan 1, 2008

By A Trench, S Ulrich, S Hagemann

A synthesis of reported All-In Sustaining Costs (AISC) for 57 Australian gold mines in the period 2014–2016 reveals for the first time the clear influence of grade upon cost performance, most evident in gold-only underground mines. Past syntheses of costs on a single quarter basis have viewed grade as potentially subordinate to other factors such as production scale, mine geometry, mineralisation style and a combination of other mining-related costs. Better understanding of the grade to cost relationship on both an individual mine and whole-of-portfolio portfolio basis is needed. Insight into the roles and trade-offs between other cost-determining factors will aid the future sustainability of the gold mining sector in Australia and assist in targeting prospects for future resource growth and development. While the overall trend is toward higher-grade mines displaying lower costs and vice versa, the grade to cost functions appear radically different between mines based on time-series data. The median cost of Australian gold production in the final quarter of 2016 was A$1081/oz. The threshold for lowest cost quartile production was A$965/oz. Underground production now dominates Australian gold output – with 71 per cent of ounces originating from operations that are either entirely underground or hybrid pit/underground mines. Scale economies are evident, with smaller mines predominately among the higher cost producers. For mines of equal grade, open pit mines are lower cost than underground operations. Reserves are modest, with a median mine life for underground operations of 4.7 years based on current production rates. Reserve additions at mines are likely constrained not only by the finite nature of mineralisation at each mine but also by the geometrical difficulty of accessing suitable drilling locations to test for reserve extensions.CITATION:Ulrich, S, Trench, A and Hagemann, S, 2017. Towards an understanding of production costs at Australia’s underground gold mines, in Proceedings 13th AusIMM Underground Operators’ Conference 2017, pp 241–250 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 16, 2017