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By G Ferguson a, P Carrasco, P P. A Dowd

International codes of practice offer broad definitions with respect to the classification of resources in terms of risk. Specific guidelines and protocols, to analyse sample data, carry out geostatistical appraisals, develop geological models and finally estimate and classify resources, are not addressed. Neither are detailed requirements for engineering mineable reserves from estimated resources. In addition, international codes of practice fail to distinguish between types of deposit, other than in broad terms, as for example, The AusIMM JORC Code (JORC, 1999) which makes reference to diamond and coal deposits. The objective of this paper is therefore to set in motion the process of specifying detailed protocols, acceptable to the international community, for the assessment, reduction and management of risk associated with the development and extraction of mineral deposits. Ordinarily, the main risks and issues encountered during the process of estimating resources and subsequent conversion to reserves, encompass:failure to understand relevant geological controls of mineralisation; validation of grade interpolation; optimism in geotechnical appraisals of dilution and stability and the consequent selection of inappropriate mining methods; metallurgical modelling of minerals and contaminants reporting to concentrates; appraising the hydraulics of heap leaching and the numerous factors that can affect recovery; difficulty of managing metal price cycles and changes in regulations within the constraints of long-term mining plans; and development of better evaluation techniques for mining ventures. Uncertainty is inherent in estimation and engineering work, and its identification, reduction and management should be a fundamental goal of all involved in the mining industry (Figure 1). Variability may be reduced by:following internationally accepted practices for the collection, manipulation and analysis of geoscientific data; and verifying that the procedures actually performed meet the associated standards. Increasing amounts of data will also reduce uncertainty, but only if the procedures used to collect and appraise such data follow the relevant procedures. It is thus the aim of a series of papers in preparation, Beniscelli et al (in prep), to put forward detailed guidelines, for:project sponsors û to provide a global view of the work and documentation needed to support requests for funding various phases of project development and budget approvals; geologists û to indicate a checklist of the requirements and standards for the exploration and estimation of resources; and engineers and economic analysists û the protocols for characterising, modelling, engineering and evaluating the extraction of reserves. It is therefore hoped to encourage the development of consistent standards for declaring reserves within the mining industry. Data from projects and operations will be utilised to illustrate the benefits of adopting a rigorous approach to estimating resources and engineering reserves, Beniscelli et al (in prep).

Jan 1, 2000

By D T. Ribeiro, J F. C L Costa, J C. Koppe

Drilling and sampling are responsible for most of the costs during mineral exploration, especially in multi-elements and polymetallic deposits, such as iron, manganese and bauxite deposits. On these deposits, often it is necessary to estimate multiple attributes at several granulometric fractions, ie distinct particle sizes. This paper investigates the effect of sampling at a close spacing grid only the head grades for the multiple chemical species in iron ore deposits. The remaining required data at the various grain sizes are sampled at a sparse grid. The derived geological model is checked for precision and accuracy comparing the output obtained against a model obtained using a complete isotopic data set including head grades and chemical analysis at each granulometric fraction analysed at all sampled positions. Among the several tested alternatives, the best procedure for dealing with the posed problem involved utilising the correlation coefficients between the grades at distinct fractions to obtain an isotopic database prior to interpolation. Cokriging was the method used, based on the intrinsic coregionalisation model. Estimates were obtained with the quality needed for the proposal of the study. Results showed that at least 50 per cent of the blocks were estimated with errors less than ten per cent relative to the grades obtained at the reference model, using only 15 per cent of the granulochemical data employed to obtain the reference model. The methodology also preserved the correlations between the attributes in their several granulometric fractions on the estimated model.

Sep 26, 2011

By L Mikhael Gurieff, D Baas

The Phu Kham Copper-Gold Operation (Phu Kham Operation) is located in the Lao People's Democratic Republic and is owned and operated by the Lao-registered company, Phu Bia Mining Limited (PBM). Australian-headquartered copper and gold producer, PanAust Limited holds a 90 per cent interest in PBM; the Government of Laos owns the remaining 10 per cent. The Phu Kham Operation was commissioned in 2008 with an initial concentrator nameplate throughput of 12 million tonnes per annum (Mt/a). Subsequent improvement projects, including the Phu Kham Upgrade Project (PKU), completed in 2012, and the Phu Kham Increased Recovery Project (IRP), completed in 2013, increased the design throughput to 18 Mt/yr. In 2016, the actual mill throughput exceeded 19 Mt/a, this throughput is budgeted to be maintained until the end of 2020.The concentrator flotation circuit upgrade, completed during the IRP, called for a non-selective bulk sulphide concentrate to be generated from the rougher circuit. This in turn caused the mechanical flotation cells in the cleaner circuit, particularly those in the second cleaner bank, to become volumetrically overload. The overload reduced the cleaner circuit performance to approximately 92 per cent copper recovery at a 23 per cent copper concentrate grade, below the expected 95 per cent recovery. This bottleneck restricted copper units entering the plant to approximately 14.5 tonnes per hour (t/h) due to uncontrolled recirculating load build-up in the mechanical cleaning circuit.Maintaining the operating methodologies would have led to a copper production shortfall beyond 2016, to address this shortfall the Phu Kham Operation looked to optimise the Jameson Cell and mechanical cleaner circuit performance. The work included fundamental application of flotation practice and modelling, mineralogical analysis, bubble size analysis, plant surveys and test work. The results were used to develop and implement an innovative automated control system strategy incorporating flotation theory and operating strategies. The automation has the ability to quickly adapt to disturbances in the circuit and maintain optimised performance with little or no intervention by flotation operators.Upon completion, cleaner recovery increased to 95 per cent at a final concentrate grade of 23 per cent copper, and copper units entering the plant increased to 17.5 t/h.CITATION:Baas, D and Mikhael Gurieff, L, 2018. Developing flotation circuit control and automation for the Phu Kham Copper-Gold Operation concentrator, in Proceedings 14th AusIMM Mill Operators' Conference 2018, pp 37–58 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 29, 2018

By G Bubner, C Gaughan

Magnetite mineralisation within the South Middleback Range has been known since the early 1930s; however, it was not until 1989 that BHP (then owners of the Middleback Ranges mining leases) drilled 10 700 m of diamond core into what was then known as the Iron Duchess low-grade deposit. In 2002 a review of Iron Resources left in the Middleback Ranges and the identification of downstream processing benefits using magnetite as a primary feed source led to the commencement of an 18 000 m resource drilling program of the high-grade core of the Iron Duchess low-grade orebody (renamed the Iron Magnet deposit). This paper describes the geology, processes and procedures used since drilling recommenced in early 2003. The Iron Magnet deposit is located 53 km southwest of Whyalla in the South Middleback Range, South Australia. It is a Paleoproterozoic stratabound magnetite deposit that lies down-dip and lateral to the Iron Duke hematite deposit, hosted within the Lower Middleback Iron Formation of the Hutchison Group meta-sediments within the Cleve subdomain of the Gawler Craton. Magnetite bearing host units within the Lower Middleback Iron Formation can be divided into a æmixedÆ basal sequence, a lower iron carbonate unit, a middle iron talc unit and an upper iron silica unit, all units grading up sequence and laterally into one another. The magnetite mineralisation is hydrothermal in origin. The strongest consistent mineralisation coincides with the iron carbonate unit, and the hematite orebodies of the Iron Duke are interpreted to represent up-dip supergene enrichment of the same unit. The Iron Magnet occurs within a large-scale parasitic syncline-anticline pair on the west limb of a larger syncline. Major bounding north-south shear zones occur on the east and west sides of the deposit. Cross-cutting west-northwest, northwest, northeast and east-northeast trending faults displace mineralisation. The commencement of drilling in 2003 lead to the migration of geological and geochemical databases, re-logging and re-assaying of all old cores that intersected the deposit, updating of logging codes and procedures, and strict Qa/Qc procedures to ensure the study satisfied JORC standards. External consultants were used for auditing and bench marking. The strong geophysical responses of magnetite and the wealth of close spaced ground magnetic and gravity data already completed over the Middleback Ranges allowed for refining of drill hole targets for the drilling program. It also provided an indirect method for ascertaining magnetite grade and tonnage volumes.

Jan 1, 2005

By M P. Sandy, R M. Stephenson

Portals to access underground mines are important infrastructure and their design requires careful consideration. Portals are generally expected to last for the life of the mine. Typically, the exposure of personnel and equipment is high, with many hundreds of movements through the portal per day. Consequently, the risk associated with geotechnical instability must be extremely low. Portals are often established from a boxcut. In areas where the weathering profile is well developed, the design and execution of the boxcut can involve significant effort, with the objective of minimizing the volume of the boxcut, whilst ensuring that conditions at the design depth are suitable for establishing a stable portal. Properly designed site investigations are a critical part of this process. Currently available portal design guidelines have not been updated for decades, however the equipment and ground support systems have changed significantly in recent years. Many mine portals have since been constructed in a relatively short time frame with success, often in challenging ground conditions using some of the more modern approaches to ground support. This is beneficial because delays in establishing a portal will generally delay other critical path activities, and lead to cost overruns.

Mar 15, 2021

By E C. Holloway

"The financial valuation of mining assets has a number of fundamental differences to the valuation of many other asset groupings. One such difference is that typically, the greater proportion of both the cost and revenue sides of the cash flow are inherently governed by systemic market forces.As a result, the range of outcomes for the valuation of each mining asset is more unpredictable, with higher levels of risk and uncertainty. In contrast, the management function of many other non-mining businesses or industry groups can control at least a portion of the cash flow by maintaining the margin or controlling the sales price. The management teams of mining businesses and operations typically have limited options, and are thus price-takers for both costs and revenues. As mining is an inherently cyclical industry, large, long-life operations can exist through several price cycles, making valuation both subjective and challenging.The outcomes of both static- and stochastic-based valuations, as well as the internal probabilities of the associated cash flow statements, are significantly impacted when the correlations between the appropriate parameters are quantified, modelled and incorporated into the valuation framework. The appropriate parameters for correlation modelling primarily include those that are governed by systemic market forces. Applying this process results in a different risk profile for the asset by allowing the risks resulting from systemic market movements to be more accurately quantified and then objectively minimised. This process also reduces the level of residual uncertainty in the valuation outcome.This paper presents a valuation methodology to pragmatically incorporate this level of valuation sophistication and statistically quantify the associated increase in the level of confidence of the valuation outcomes reported.CITATION:Holloway, E C, 2016. Correlated valuation methodology, in Proceedings Project Evaluation 2016, pp 181–200 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By R Sinclair, D Landwehr, I Hunter

"The Syama Gold Mine, located in southern Mali, was established in 1990 by Broken Hill Propriety Limited (BHP). The operation began treating oxide, and in 1994 it transitioned to processing hard and refractory ore based on ‘whole-of-ore’ roasting. In 1996, BHP was succeeded by Randgold Resources and the operation ran until 2001, when it was placed into care and maintenance.The Syama ore is classified as a double refractory ore with pyrite occluding the fine grained gold present in the ore and high levels of organic carbon presenting a challenge in terms of preg-robbing behaviour. The ore is extremely competent and this combination of metallurgical features was the main source of metallurgical problems encountered by the previous owners.Resolute Mining Limited (RML) acquired the Syama project in 2004. Following a feasibility study and the development of a revised processing flow sheet the plant was recommissioned in 2008 using a combination of old and new equipment. The revised flow sheet enabled primary sulfide ore to be treated by flotation and roasting of the concentrate to produce a calcine suitable for conventional carbon-in-leach (CIL) processing.Commissioning and ramp up of the plant was a troubled process, with monthly gold production being as low as 3000 oz in 2010. Poor availability of equipment and lower-than-forecast recoveries were the primary contributors.During the last five years, RML has utilised a systematic approach to improve production, focusing on mechanical reliability, metallurgical recovery and process bottlenecks. Modifications to the circuit have been as a result of both innovation and the application of technological improvements. Improvements have been made to the flotation, roasting and CIL circuits and RML has introduced a deslime circuit to treat flotation concentrate, in addition to the very successful commissioning of a new 1 Mt/a oxide circuit in December 2014. These changes have resulted in gold production increasing to more than 20 000 oz per month in 2015.This paper presents the processes, change implementation and outcomes of the modifications made to the sulfide circuit to address the availability and recovery problems.Apart from the expansion of an existing, world-class deposit and discovery of new resources, future improvements on the path to a class-leading gold mine include the continued reduction of the unit cash cost, increase in overall sulfide circuit gold recovery, increased throughput through continued innovation and consistency in the plant’s operation.Citation:Sinclair, R, Hunter, I and Landwehr, D, 2016. Syama Gold Mine - the Journey towards a Class-leading Gold Mine, in Proceedings 13th AusIMM Mill Operators’ Conference 2016, pp 213–224 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Oct 10, 2016

By A Dunne, R Kruger, H Coleman, P G. Laurens

External and internal challenges in mining are increasing the difficulty and complexity of operating mines. The external mining environment has a big impact on mining operations and is driving the focus on safety, sustainable mining, green issues, profitability and productivity. There is a very high emphasis on ‘reducing cost to improve’, lower mining and beneficiation costs by eliminating waste/inefficiencies (reduce people, use less consumables, multiskilling, etc). The internal mining environment is getting tougher to operate in, with the deposits being more difficult to mine, more difficult to manage due to external pressure along with issues associated with maintaining quality, etc.Technological and environmental developments too numerous to mention, mean that cost control models, reduction in human resource numbers, as well as other drastic measures to curtail expenditure and increase profitability have become part of everyday business. The capability to manage the mining environment in a systemic manner has been lacking and this increases the pressure for performance on those individuals operating and managing mines.Working smarter has become crucial to ensure that businesses optimise the use of their resources, become more safety conscious, more productive and remain cost-effective, while recognising the importance of sustainable mining now and in the future. The logic of determining and managing to the capability of the mining value chain will be examined and the underlying assumptions or beliefs guiding behaviour and decision-making will be highlighted.In order to identify the obstacles in the mining value chain that hinder achievement of its full potential, the following questions have to be asked:What are the factors that influence the performance of a mining value chain?What is the design capacity of the mine?How can the inherent flow and value capacity of a mine be determined?What types of solutions will allow a mine to operate at its inherent flow and value capacity?This article will discuss the way we plan, measure, assess and manage the mine value chain, by addressing the following factors:balanced capacity versus flow and value capacity designthe use of averagingoptimising individual components in a value chain versus optimising the whole value chain.Optimising flow and value through the mining value chain is one of the three pillars of Mineral Resource Throughput Management (MR™). MR™ is an entrenched and academically supported philosophy that has been successfully applied in the past decade in various mines throughout the world by EXXPLEO, a mining and beneficiation consulting company. EXXPLEO has partnered with HCL (a global IT company) to embed the MR™ philosophy, methodology and toolsets into a formal software product called Synchronised Digital Mining (SDM). The SDM system will provide mining companies with a sustainable platform to effectively apply the MR™ principles and toolsets effectively across all operations targeting increased productivity, efficiency and profitability without having to train operations and management staff into expert MR™ practitioners to successfully achieve the desired results.CITATION:Dunne, A, Laurens, P G, Kruger, R and Coleman, H, 2015. Optimising flow in the mining value chain, in Proceedings Iron Ore 2015, pp 437–442 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

Cable bolts have been used extensively in the development of the footwall of the Mt Whaleback Mine as a part of the ground improvement program since 1986. High tensile seven wire stress relieved steel strand similar to that used in pre-stressed concrete and grouted in place with sulphate resistant cement have been employed for rock-mass reinforcement.Most of the footwall is developed in Mt McRae Shale which contains a 20 m thick pyritic shale layer 14 m below the ore/waste contact. Due to extensive folding of the footwall rocks, the pyritic shale layer regularly occurs on, or close to the pit slope. Rain water run-off seeping through pyritic shale becomes acidic to the extent where its pH value can be as low as 1.5.

Jan 1, 1992

By Goto T, Sato K, Mori N

A field investigation by making use of the seismic method has been carried out in order to comprehend the mechanism of rockburst and gas outburst and their predictive measures. The seismometers were so arranged both on the surface and underground as to enclose a mining panel. Seismic signals detected by the array were recorded and processed by the 32-kwords computer system. At present the system is available for analysing the source location and Richter's scale of each event and for visualizing the distribution of seismic foci and released energy at any mining stage. The magnitude distribution of events can be regarded as a comparable index of the seismic activities among mining panels. An analysis of the spatial density distribution of seismic energy in the mining panel can be useful to distinguish a highly stressed zone from stress released areas. The energy released curve or the rate of energy release determined from seismic data is also a good indication of the seismicity.

Jan 1, 1980

By W R. Adamson

"Optimisation of drill and blast design and engineering can deliver a significant positive impact on the profitability of any mining operation; however, true engineering of the blasting process is less common than might be thought. The paper that follows explores this gap and suggests a process control-based approach to the challenge.The concept of applying modifications to drill and blast designs in order to achieve efficiency improvements in downstream mining processes is far from new. However, the author suggests that the practical application has become less than rigorous in a number of different sectors of the mining industry in a wide range of countries.There is a common tendency for the design process to become simplified to the point where the objective is merely the communication of instructions to field implementers (drillers, explosive suppliers, blasters, etc). In effect ‘design’ often degrades to ‘cut and paste’ with consequences that vary from mild to critical, with respect to the profitability of the business.Engineering of the drill and blast process involves the design function, not on a one-off basis but rather as a component of a more complete cyclical process that includes a statement of objectives, a design based on a suggested hypothesis, field measurement of results, comparison with the target ‘set point’ and the application of control measures followed by new measurement, including interpretation of the results in financial terms.When applied in this fashion, engineering provides practitioners with the means to optimise the drill and blast impact on the full spectrum business result of the mining activity.These concepts are discussed with reference to a surface gold mining operation applying run-of-mine heap leach extraction. Engineering optimisation by adapting process control and measurement techniques is demonstrated to be a key component of the solution set applied to generate enhanced operations productivity and stakeholder value. It is shown that a combination of rigorous measurement, model calibration and hands-on quality assurance/quality control facilitates the creation of a road map to profitability, stressing the need to consider economic trade-offs between operational expense (investment) and measurement of enhanced value (return on investment).The process, however, does not cease at this point. Implementation of true design practices, incorporating innovation and discipline in implementation or execution can drive the process to deliver demonstrable, technically validated outcomes. Furthermore, these technical results can be related to financially quantifiable impacts. However, this accomplishment does not guarantee that these gains or savings will reach the bottom line of those mining, quarrying and construction companies that begin the process with such high hopes.CITATION:Adamson, W R, 2015. Application of engineering discipline and a full-process optimisation focus – productivity to profitability without profuse pruning, in Proceedings 11th International Symposium on Rock Fragmentation by Blasting, pp 3–12 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Aug 24, 2015

By N Winkelmann

Underground coal heating is a significant hazard in some coal mines. The broad principles of how underground coal heatings occur is reasonably known, however the technique for locating the heatings in often inaccessible goaf has been proved to be difficult. Since 2002, CSIRO, with the support of the Australian Coal Association Research Program (ACARP) has been undertaking investigations to apply and develop innovative surface-based radon technique for locating the underground heatings in Australia. This paper presents the progress of the investigation.

Jan 1, 2005

By P Hawke, J Hurst, B KrapeP

Hancock Prospecting Pty Ltd (HPPL) drilled two deep diamond stratigraphic holes (ECD0001 and RHD0296) within the eastern Fortescue Valley in the Pilbara of Western Australia. Located south of the Roy Hill Iron Ore project, the holes aimed to define the stratigraphy of the Marra Mamba Iron Formation (MMIF) of the Chichester Range and its south-dipping extensions below recent cover. Previous attempts to define the MMIF of the Chichester Range have resulted in differing interpretations due to the data available at the time.The unweathered MMIF beneath the Fortescue Valley in the HPPL drill holes is characterised by dolomitic carbonate interbedded with stilpnomelane-rich shales, chert and banded iron formation (BIF) with hematite staining. This intersection equates to ~75 m of carbonate-facies iron formation, as opposed to the ~230 m thick oxide-facies BIF and shale sequence encountered south of the Fortescue Valley.Various detailed geological core analyses and interpretations from ECD0001 and RHD0296 were integrated with regional diamond and reverse circulation (RC) holes from across the Fortescue Valley. Interpretation of the data indicates that the eastern Fortescue Valley MMIF represents a thinned thickness sequence of the whole formation. The MMIF of the Chichester Range and Fortescue Valley has gamma logs that correlate strongly in parts to the type section used for MMIF south of the Fortescue Valley. Therefore, the outcropping MMIF in the Chichester Range represents an eroded equivalent of the æreducedÆ thickness MMIF observed in ECD0001 and RHD0296.Data from deep diamond drill holes across the valley, from the Hamersley Basin to the Carawine Basin, were correlated. The correlation shows that the depositional site of the MMIF in the HPPL diamond drill holes is consistent with a proximal ramp setting, in which iron-rich shales wedge up-palaeoslope and shelf-derived carbonate turbidites wedge down-palaeoslope. Not only is it the occurrence of these shales that define the MMIF, but they also determine the northward potential to develop orebodies, as they are the source of iron from which iron-rich oxides and carbonates of metamorphic or diagenetic origin form.CITATION:Hurst, J, KrapeP, B and Hawke, P, 2013. Stratigraphy of the Marra Mamba iron formation within the Chichester Range and its implications for iron ore genesis at Roy Hill - evidence from deep diamond drill holes within the East Fortescue Valley, in Proceedings Iron Ore 2013 , pp 91-106 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 12, 2013

State ownership of minerals results in domestic legislation regulating mining operations. The mining industry today is dominated by a number of transnational companies, each subject to internal and external pressures for a more responsible approach to resource management. Thirty to 40 major companies are responsible for the bulk of the worldÆs mineral production with the balance coming from state-owned, second tier and junior companies and from artisanal miners.Mining companies operating within competitive commercial environments formerly focussed on mineral production. Companies worked to standards and expectations then current which largely failed to recognise the impact of mining activities on community interests. The mining industry acquired a reputation for arrogance, and for placing profitability ahead of issues considered equally or more important by local communities. Current perceptions continue to reflect disquiet about industry attitudes towards traditional land-owners and access to their lands, to environmental contamination, handling and storage of waste materials, utilisation of water and electricity, and to rehabilitation of worked out areas. Major international mining companies concerned at continuing criticism sponsored a series of initiatives with the objective of providing guidance on working harmoniously within the community. Industry commissioned studies, performed through the agency of disinterested parties, resulted in May 2002, in a Declaration being issued at an International Conference in Toronto. The Declaration was based on, but did not reflect all of the recommendations of the MMSD Report, æBreaking New GroundÆ.This paper considers whether benefits would result from the negotiation of a legally binding and enforceable international protocol encompassing the objectives of the MMSD report or the Toronto Declaration. It attempts to identify the problems associated with implementing and enforcing international mining law, should it be introduced. Aspects of mining operations having cover under customary international law are reviewed, as are rights, obligations and remedies for breaches of national mining law. Conclusions are drawn based on established procedures relating to implementing international agreements. The continuing ability of mining companies to operate within communities will result from each satisfying the communityÆs expectations rather than by complying with largely unenforceable legislation.

Jan 1, 2004

By F Phillips, E Deucker, J Kato

It is challenging to determine the optimal mining strategy to maximise value when a mine plan includes mineralised material which does not meet the full cost of mining but has value exceeding the variable cost of mining (‘marginal material’). Mining too much marginal material dilutes the operation’s head grade and undermines profitability. Conversely, leaving too much metal behind fails to achieve the full value of the endowment. Finding the balance between the two will maximise value delivered from the asset. This dilemma has traditionally been approached by calculating a suite of cut-off grades to define the grade of material that meets economic targets for an orebody (or zone within) and should therefore be included in the mine plan. A problem with this approach is that individual mining blocks within the zone have different costs, value and confidence levels, with each having economic co-dependencies between them. Blocks of identical grade but different mining contexts will have distinctly different economic outcomes. For example: • a block may be a low-grade increment or shell around a higher-grade stope; • a block may be available to be mined when there is spare mining capacity; or • a block may defer access to significantly higher cash flow material. Each of these circumstances would result in different value from the blocks if included as part of the mine plan. Cut-off grades calculated as averages over zones of material, or in isolation from schedule-based information, are missing the entire mining context that determines the ultimate economic outcome of making a mining decision. There are tools and techniques available to address this for open pit mining, however underground mining has different nuances. There are more intricate economic and physical dependencies between potential ore blocks, and importantly, the decision to leave material in situ can be made at any time. The case study in this paper explores a new methodology for underground mining, targeted towards strategic planning applications. It examines whether the economic logic usually applied via cut-off calculations can be implemented in the schedule so that optimal economic decisions can be made on a block-by-block basis, taking into account the mining context of the block, with the objective to maximise asset value. The results of the case study scenarios in Table 1 demonstrate the magnitude of the potential improvement in NPV that can be attained by a block by block valuation approach

Mar 15, 2021

By R Daiyan, G Burge, M Haider Ali Khan

Australia’s mineral and metal exports have a substantial carbon footprint, twice that of its domestic emissions, mainly due to fossil-fuel-dependent downstream processes like processing into secondary metals and their transport. The country’s vast renewable energy and low-carbon hydrogen potential offer a promising alternative to mitigate this impact. These resources can be leveraged to displace fossil fuel use and become embedded into the metals value chain. Ultimately, it will yield ‘Green Metals’ that can be scaled to reduce the environmental footprint and provide an avenue for Australia’s vast green resources to be embedded (incorporated during production and supply) in green metals that can be exported. One potential green metal is copper, which is in great demand and likely to drive global decarbonisation through renewable electrification due to its role as an energy conductor. Given that Australia is a large producer and exporter of copper, this paper provides a techno-economic model of the copper value and applies it to Queensland (a hub of Australia’s copper production) as a case study. The results show that under incumbent hydrogen (A$8/kg) and renewable energy costs, the cost of green copper would be A$9704/t (~10 per cent higher than current copper costs). Further analysis revealed that the cost of hydrogen is a major cost driver; therefore, if the cost of hydrogen can be reduced to A$2/kg (a 2030 target of the Australian government), the cost of green copper would become competitive. Furthermore, if a carbon pricing regime ($54–79/kgCO2) is introduced, green copper would become competitive at a hydrogen cost of A$3/kg. Altogether, these findings provide insights for a future green copper export opportunity in Australia. Additionally, as the next step, the model can be extended to include other metals and released as an open-source resource for assessing global green metal opportunities.

Sep 1, 2024

By A Esfahanipour, M Osanloo

Determination of cut-off grade?strategy is one of the most important stages of open pit mine planning and design. It is the parameter directly influencing the financial, technical, economic, legal, environmental, social and political issues in relation to mining operation. Choosing the optimum cut-off grade strategy that maximises the economic outcome has been a major topic of research workers for nearly one century. Many researchers have contributed in devising methods and algorithms, such as dynamic programming, linear programming, optimal control and so on for various aspects of its determination. In this paper, a non-linear mathematical programming for cut-off grade strategy optimisation is presented, considering the three main stages of mining operation introduced by K F Lane. In this model maximisation of net present value of mining operation, under the three constraints of mining stagesÆ capacities, considered as the optimisation criteria. Due to the discrete representation of the mining resource, the proposed non-linear formulation is approximated by a non-linear signomial geometric programming. According to non-convexity and the complexity of the proposed model, an augmented Lagrangian genetic algorithm was used to find the optimum cut-off grade strategy under varying and fixed price circumstances. To validate the proposed non-linear model efficiency, the results were compared with the results obtained by the K F Lane methodology. It was found that the proposed non-linear model works efficiently in the determination of cut-off grade strategy. According to the simplicity of the structure of non-linear programming modelling in comparison with dynamic programming it is hoped that, further development of this model would certainly provide the ability of considering managerial and technical flexibilities as well as incorporating more real mining conditions in the determination of cut-off grade strategy optimisation.

Sep 26, 2011

By R Urie

Dilution and loss of ore during the mining process invariably occur in all underground mining operations. This dilution and ore loss can have a significant effect on the performance and value generated from a mining operation. Further, excessive dilution or greater than anticipated ore loss during mining is often one of the key reasons for the underperformance of a mining project when compared to a feasibility study or annual budget. Mining professionals often go to great lengths preparing detailed mine plans, schedules and economic models only to then apply high-level estimates or rule of thumb values for dilution and mining recovery that can ultimately lead to inaccurate forecasts for the performance of a mine with the resultant loss of value due to the mining of uneconomic material or the loss of potentially valuable ore. This paper discusses processes and practices that can be practically used to manage dilution and mining recovery in an underground mining operation with a focus on understanding and then maximising value. The processes cover items such as the definition and measurement of dilution and mining recovery, techniques for the estimation of dilution and mining recovery, consideration of the economic implications, management of dilution and mining recovery through the stages of the planning cycle, and practices to reduce dilution and improve mining recovery. Common misconceptions and omissions are also discussed.

Mar 29, 2023

By H Kim, J Park, J Lee

Silico-ferrite of calcium and aluminium (SFCA) is a bonding phase in the iron ore sinter. The phase transition upon melting of SFCA was investigated with Differential Scanning Calorimetry and Confocal Laser Scanning Microscope. The initial melting of SFCA occurred at 1183.2°C and a massive melting was found at around 1351.1–1358.2°C. A phase transition-melting was investigated at 1476.5–1478.7°C. The liquid phase was composed of immiscible phases. The present results would be utilised to design a new iron ore sinter for better processing performance in a hydrogenenriched ironmaking process.

Jun 19, 2024

By Marshall T. E, Finfinger G. L

Gulf Coast domal salt mining operations have had sporadic encounters with methane gas emitted without any warning. In virtually all confirmed cases, the methane was localized in methane enriched zones. In a few cases large quantities of methane were expelled rapidly with salt outbursts, resulting in dangerous methane concentrations. Estimates of methane liberated by face blasts in methane-enriched areas is needed in determining how much air should be supplied to the face for proper dilution. A relationship between the gas content of salt samples collected from the face and the amount of methane liberated would be helpful in estimating how much methane will be produced by a face blast. Little is known about the layering or stratification of methane in large area-low velocity airways. This publication reports on three tests conducted by the Bureau of Mines which monitored the immediate return air of four faces during blasting. The test locations were in a methane gas-enriched section that had previously experienced two large outbursts and many smaller ones. A comparison was made between gas content values of face salt samples from the dissolution test and the gas liberation quantities. The characteristic movements of the methane in a large room with low air velocities were charted. This will help to better understand the factors involved in proper placement of methane sensors as a warning system.

Jan 1, 1988