Search Documents

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 S Vearncombe

SpaDiSÖ is a revolutionary approach to the spatial analysis of point data using geometry to analyse geometry! SpaDiSÖ uses each and every spatial relationship and is not dependent on mathematical models. For n points there are n2 û n spatial relationships and, because of the square function, the method yields interpretable results for both small and large data sets. SpaDiSÖ is an alternative to variography for directional studies. At the regional scale, the analysis can assess distribution patterns of mineralisation and potential controlling structures. At the deposit scale, the characteristics of zones of mineralisation such as direction, spacing, high-grade ore direction and grade distribution can all be deduced.

Jan 1, 2000

By J P. Burr

The Waterview Connection will complete a strategic Auckland motorway route linking the south, west and north. The project will include 2.1 km of ‘undrained’ driven tunnels, 500 m of drained cut-and-cover tunnel and tunnel portals.The project is aligned beneath a stream valley of Oakley Creek, which is incised through alluvium and in places overlain by landfill, between Mt Albert volcano and a ridge formed in alternating sandstones and siltstones. The resulting topography, geology and hydrogeology of the tunnel alignment are complex.The Assessment of Effects required estimation of the likely settlements resulting from the tunnel construction and assessment of their effects on the buildings, services and other features. A conservative approach was taken when estimating settlements in order to provide an upper bound estimate of the consequent effects. There are three sources of these settlements: mechanical settlement from the tunnel excavation, mechanical settlement from the displacement of retaining walls and consolidation settlement from the groundwater drawdowns during construction and, in some cases, in the long-term.The settlements from these sources were calculated independently and then combined to identify the most critical effects. These combined settlements were used to assess the potential damage to the buildings, services and other features above and around the tunnels. The combined settlement results generally followed the anticipated trough shape centred on the underlying tunnel but with some noticeable effects relating to the underlying geology and hydrogeology.The effects on buildings were typically assessed as negligible with some areas of very slight to moderate damage predicted. Effects on services are anticipated to be minor but some large and older pipes will require specific monitoring during construction. A monitoring programme is proposed to allow the actual settlement and effects to be compared to those estimated with appropriate responses should those effects significantly differ.This paper describes the methods used to calculate and combine the settlements and assess their effects.

Mar 8, 2011

By M T. Nguyen, S Vink, M Ziemski

On any given mine site the water system is contingent upon its initial design. Through time the initial design is adjusted by a myriad of water management options in order to improve water system performance or to adapt to a new production capacity or method at the mine site. These options generally do not comprehensively consider energy requirements, so it is unlikely that any given mine water system will be optimised in terms of both water and energy uses. Thus this may simply shift constraints of efficiency of one resource dimension, water, to another, energy. As a result, changes in water systems would cause more energy-related issues to mining companies. For example, the companies would have an increase in operational cost and/or pay more for carbon tax with changes in their water system. Therefore, in order to avoid undesirable and potential unforseen energy and infrastructure issues in a mine life cycle, it is essential to select suitable water management options for a mine considering both water and energy resources simultaneously.Considering water and energy criteria in evaluating water management options consists of net water volume availability, net operational energy demand and net water replacement energy demand. Ideal water management options should be high in water volume availability but low in both operational energy demand and water replacement energy demand. A water option would also be favourable if it has low potential of causing adverse environmental impacts such as lowering groundwater tables due to groundwater withdrawal, or elevating saline constituents in surface waters when reusing brine for dust suppression. However, these environmental impacts are not considered in this analysis.This article presents a graphical method to assess mine water management options, based on these three criteria. The proposed method to assist in screening mine water management options includes two main steps:1. categorise water management options into prioritised groups2. rank the options within each prioritised group.The method is applied to a gold mine and presented in this article as a worked example. CITATION:Nguyen, M T, Vink, S and Ziemski, M, 2013. Selection of mine water management options considering both water and energy impacts, in Proceedings Water in Mining 2013 , pp 29-34 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 26, 2013

By Hansmire WH

The 14.7 km Mt. MacDonald Tunnel beneath Rogers Pass in Canada used both drill-and-blast and machine boring methods. A unique ventilation system provides for diesel operations. The design featured minimum construction support and an unrei.nforced poured concrete lining. The west heading was excavated in a single-stage drill-and-blast operation. The east heading used a TBM top heading with a drill-and-blast keyhole bench. The choice of methods was controlled by varying geology, with up to 1,700 m rock cover. Construction performance and progress are evaluated.

Jan 1, 1987

By A Jankovic, D David, P Payne

Although the majority of current steel production is supported by iron ore sourced from high-grade haematite deposits, the long-term growing demand for steel has led to higher raw material prices and opened the way for many new magnetite deposits to also be developed. There is a rich and long history of magnetite ore processing in Western countries, including large operations such as Cleveland Cliffs in the USA and LKAB in Sweden, as well as smaller operations like Savage River in Tasmania. The challenge for virtually all magnetite operations is to minimise operating costs, which is dominated by the cost of power required to fine grind the ore in order to achieve acceptable concentrate iron grade together with low impurity content. This remains the case today and will be even more important in the future when a carbon tax is expected to become a significant addition to the operating costs for magnetite deposits. Historically, the lowest operating cost was achieved by multistage fully autogenous grinding with integrated magnetic separation steps between the stages. The major benefit of fully autogenous grinding is the elimination of steel grinding media costs and the need to discriminate between steel and magnetite in coarse magnetic separation. The separation step between grinding stages progressively reduces the amount of material to be ground. Application of more efficient grinding technologies developed in the last 20 years, including high pressure grinding rolls (HPGR) for fine crushing and stirred milling for fine grinding, has provided opportunities to further reduce the operating costs associated with comminution. Both technologies are already implemented in some magnetite processing operations, although in limited capacity. The results of a theoretical option study for high capacity processing of a hard, fine-grained silica-rich magnetite ore is presented in this paper, with the emphasis on comminution circuit options. Several circuit options are ranked based on a net present value analysis incorporating an estimate of carbon tax added in the operating cost. The study demonstrates the significant advantages of applying more efficient autogenous grinding technologies.

Jan 1, 2009

By J Maxlow, M J. Woods, M P. Sandy

The Newcrest Mining Limited Telfer operation comprises both open pit and underground operations producing gold and copper. The underground operation is made up of three production areas, the sublevel cave (SLC), M Reefs narrow vein open stoping and Western longhole open stoping areas. With stoping situated on the abutments of a mature and active sublevel cave, the interaction between mining areas is often complex. This is particularly evident in the M Reefs orebodies with high levels of extraction in all four reefs, and reliance on pillars to maintain local and global stability. A key concern was the potential for a cascading pillar failure to develop and rapidly progress through the M Reefs stoping area. The monitoring plan needed to capture any change in overall stability and identify if deformation was caused by pillar failure within the M Reefs and hanging wall closure, or shear on the reefs caused by SLC influence.

Nov 29, 2022

By B Levasseur, C Olsen, E Ghasemian Langeroudi, F Larachi, F Safizadeh, C Gagnon

Gold recovery by the cyanidation process is often accompanied by the leaching of other species. This leads to the depletion of the level of free cyanide and oxygen available for gold cyanidation. The largest proportion of the consumed cyanide is diverted by the cyanicides (eg S, Cu, Zn, Fe, etc) into non-valuable complexes.COREMÆs Extractive Metallurgy team has been conducting a research program on the improvement of the gold cyanidation process. As a part of this program, the current study aims to investigate the effect of certain operating parameters on the reactions involved during preoxidation and cyanidation. Flotation tailings and single mineral samples such as pyrite, sphalerite and chalcopyrite, along with their different combinations, were analysed to highlight the influence of ore mineralogy on the operating conditions. The effects of different kinds of oxidants (oxygen, hydrogen peroxide, ferricyanide and ozone) and chemical additives (ammonium sulfate) were investigated.Experiments conducted in alkaline solutions reveal that mineralogy is a key parameter since pyrite, chalcopyrite and sphalerite react quite differently during preoxidation and cyanidation. A significant increase in sulfur dissolution, especially on pyrite, was observed by applying preoxidation. H2O2 preoxidation showed a positive effect on increasing sulfate formation, a desirable by-product from the cyanide consumption point of view. Preoxidation of synthetic ores with ferricyanide resulted in boosting thiosulfate formation. Tests conducted on flotation tailings from a polymetallic mine revealed that a short preoxidation increases the dissolution of the ore leading to higher gold recovery and lower cyanide consumption. Regarding the formation of thiocyanate, the most undesirable by-product of the cyanidation, ferricyanide and ozone were found particularly efficient to hinder their formation. Finally, the addition of ammonium sulfate during the cyanidation process showed some promising results in terms of both gold dissolution and cyanide consumption.CITATION:Ghasemian Langeroudi, E, Levasseur, B, Safizadeh, F, Olsen, C, Larachi, F and Gagnon, C, 2013. Optimisation of operating parameters for cyanidation of sulfide-bearing gold flotation tailings in order to prevent the impact of cyanicides, in Proceedings World Gold 2013 , pp 111-120 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 26, 2013

By S Garnes, W Austerberry, S Fraser

Despite significant investment in safety in the mining industry (mostly focused on processes and systems), many companies are unable to sustain and further improve their performance resulting in continued workplace incidents. The problem persists despite the best efforts of companies and allocation of resources to achieve Zero Harm. A DSS survey in 2019 found that two out of five companies that cannot manage risks and face disaster, leave the market within five years. All safety/risk management systems have the common steps of risk identification, prioritisation, design of controls consistent with risk tolerance, and verification of implementation/operability of controls. This is then complimented with improvement to one or more of the above elements through learnings obtained from incident investigations. In principle, the above process should work to reduce risks to, and keeping them at, a risk level consistent with risk tolerance in the organisation.

May 5, 2022

By I Neilsen, A Walker, A Hooper

Final landform planning in Deswik software was used to determine if integration into the mine plans could achieve better closure outcomes. Using the dump surface outputs from the Deswik Landform and Haulage Simulation (LHS) and the Reshape Landform tool, the project intended to:1.Review costs to achieve the final landform for several grade criteria scenarios;2.Quantify reshape volumes at several stages of the mines development with the objective to contribute to margin ranking inputs; and3.Identify rehabilitation cost reduction measures such as backfilling ramps and pits.CITATION:Neilsen, I, Walker, A and Hooper, A, 2018. Case studies for integrating rehabilitation planning with mine planning in strip mining, in Proceedings Life-of-Mine 2018, pp 93–95 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 25, 2018

The structure and tectonic setting has had a strong influence on gold mineralisation at the Porgera gold deposit. Here, the structural controls on the mineralisation at Porgera are discussed and placed in a regional tectonic context. The Porgera gold deposit is related to the emplacement of the Porgera Intrusive Complex. Prior to intrusive emplacement at Porgera,Papua New Guinea was affected by a major fold and thrust episode which occurred in response to arc-continent collision in the Late Miocene. After crustal shortening the region experienced a relaxation of compression which is expressed in the deformation accompanying mineralisation at Porgera. The first stage of mineralisation (stage I) is hosted by extension fractures, and is spatially associated with exposed intrusive stocks. A later episode of mineralisation (stage II) is hosted by the faults and fractures of the Roamane Fault Zone, which was active as a dip-slip normal fault during stage II mineralisation. Therefore a change in the tectonic environment from shortening to extensional tectonics can be seen at Porgera before and during mineralisation. Rapid fault-slip during stage II mineralisation may have aided high-grade gold mineralisation by subjecting hydrothermal fluids to changes in pressure, temperature, fluid-fluid and fluid-rock interaction. Uplift to form the highlands of Papua New Guinea occurred after mineralisation and was largely complete by 4.0 Ma.

Jan 1, 1995

By R Coleman

The flotation mechanism plays a key role in the flotation process. It is used to provide the contact between solid particles and bubbles and also the energy for these particles and bubbles to attach. The mechanism must therefore provide sufficient mixing to keep the solids in suspension so that they can be transported into the froth and recovered to the concentrate. The design of the mechanism is critical and over the past decade Outotec has developed and optimised a new mechanism design to improve metallurgical and energy performance. The FloatForce® mechanism consists of a rotor and stator arrangement and has been specifically designed to provide sustained mixing at higher air flows and lower power inputs.Over 500 FloatForce® mechanisms have been installed in existing and new operations. This paper outlines the technological aspects of the FloatForce® mechanism and provides metallurgical, operational and energy performance results from a number of flotation circuits in which these have been installed.

Aug 8, 2011

Development of the Davcra flotation cell has continued over the past seven years. Preliminary testwork on single cells has now been extended to a com- plete Davcra flotation circuit, to cells ranging from 5 to 400 tons per hour capacity and to cells operating on a variety of materials. Operation of both test and production units has shown the Davcra cell to be competitive with conventional flotation machines. It offers a lower capital cost installation than conventional cells and in addition has a number of. operating advantages, particularly in its adaptability to automatic control.'

Jan 1, 1971

By Ibil S

The Gameta Gold Deposit is located on the north-eastern corner of Fergusson Island in the D'Entrecasteaux Islands of Milne Bay Province, PNG, at lat. 9¦ 25' 5, long. 150¦ 47' E or AMG co- ordinate 256740 E/8959000 N (Figure 1). The area is covered by the Fergusson (SC56-05) 1:250,000 scale Topographic Map Sheet and the Koitabu (9079)1:100,000 scale Topographic Map Sheet. The property is held 100% by Union Mining NL (UMG) and lies 105 km NNE of Alotau and 33 km to the ESE of UMGs recently developed Wapolu Gold Mine, a Joint Venture between UMO (51%) and Macmin NL (49%). The inferred resource estimated from surface results and 105 RC drill holes, currently stands at 1.89 million tonnes at 2.6 git gold (1.0 g/t Au cut-off) or 155,000 oz. Evaluation of the property is currently proceeding. To date 111 RC holes have been drilled for a total of 4611 m.

Jan 1, 1997

By Y Chen, G Xu, B Albijanic

High concentrations of airborne coal particles is the main reason leading to health and safety hazards in underground coalmines. Water spray is one of the effective methods to suppress coal particles in mine sites, but the use of plain water is not effective enough to capture coal particles. By adding surfactants, coal wettability can be improved which will increase the coal dust suppression efficiency. In this study, a modified sink test was employed to evaluate coal wettability in the presence of two anionic surfactants: sodium dodecyl sulfate (SDS) and sodium dodecyl benzene sulfonate (SDBS). Sink rates were calculated by measuring sink weight over test time. Different surfactant concentrations (0.01 per cent, 0.05 per cent, 0.1 per cent, 0.2 per cent and 0.4 per cent) and two types of water (tap water and deionised water) were selected to investigate coal wettability over three size ranges (0–38, 53–75 and 75–90 µm). The results show that both SDS and SDBS surfactants can lower the water surface tension and improve coal wetting performance. Sink rates increased as the surfactant concentration increased, and surfactant solutions prepared by tap water performed better than deionised water in enhancing coal wettability. Also, coal wettability varied for different coal particle sizes; the smaller coal particles were, the worse the wettability they possessed.CITATION:Chen, Y, Xu, G, Wang, R and Albijanic, B, 2017. Study on coal wettability for dust suppression in the presence of surfactants by sink test, in Proceedings Australian Mine Vent Conference 2017, pp 105–110 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 28, 2017

By B Belle, M Biffi

Cooling of coal mines in the Bowen Basin, characterised by steep geothermal gradient, is presently achieved mostly through rental surface bulk air cooling in summer months. This paper argues that future mines will be required to focus their cooling resources more intensively to manage a challenging thermal environment where virgin coal temperatures of over 50¦C at a depth of 500 m are expected. Currently, mine cooling systems are employed to maintain the wet bulb temperatures (WBT) to below 27¦C at which point the risks of heat stroke or other heat-related issues are manageable. The capacities of these systems are in the range of 6 MWR to 10 MWR. The relationship between high working temperature environments and injury frequency rates is well established. Therefore, provision of appropriate cooling strategies and understanding their optimum performance and suitability are important to Australian coal mines of the future. This paper evaluates the underground temperature profiles of deep, gassy coal mines with propensity for spontaneous combustion and proposes the long-term cooling pathways to effectively manage thermal hazards. Thermodynamic modelling is performed on a longwall face and includes air leakage effects from goaf streams at various locations along the longwall face. The strategy summarises the application of underground bulk air cooling, chilled water sprays on the shearer and the resulting temperature profiles. Considering the new mining projects planned for the Bowen Basin region, a review of implementable cooling strategies such as mid-gate mobile bulk air coolers (BACs), spot coolers, underground bulk air cooling and the use of chilled water to enhance the positional efficiency of cooling plants, are discussed in this paper. Finally, the comparison of ærentalÆ versus æownershipÆ of cooling plants is analysed as part of long-term cooling strategies.CITATION:Belle, B and Biffi, M, 2013. Cooling pathways for deep Australian longwall coal mines of the future, in Proceedings The Australian Mine Ventilation Conference , pp 223-236 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 1, 2013

My speech this morning is not a technical one, rather I will aim to tell you about the New Zealand Aluminium Smelters Limited and how I see it fitting into the Western World aluminium scene.

Jan 1, 1983

By A Asadov, D Nair

This paper discusses the determination of the percentage of crystalline material in a natural silica deposit which would be considered harmful to health (<10 ¦m). A sample of the natural silica material was recovered and split into a number of subsamples. Samples were sieved using a conventional dry sieve to remove material >300 ¦m before testing. Particle size analyses of the fine fraction showed 75 per cent of the material was below 10 ¦m. Initially XRD and XPS were run on the samples to determine the minerals and composition of the sample. The XRD revealed strong quartz peaks and smaller tridymite peaks with a high amorphous background. The XPS indicated traces of iron, titanium and carbon with dominant silicon and oxygen peaks. The structure of the sample was investigated using the SEM. It was apparent that there were a number of larger quartz crystals (>30 ¦m) with a mix of amorphous and crystalline in the finer fraction. It was also observed that amorphous material was attached to the surface of the crystals. In order to determine the percentage of crystalline quartz a known amount of quartz was added to the sample incrementally. On each addition an XRD scan was performed and the area under the peaks recorded. Back analysis of these peaks with an assumed percentage of crystalline material in the original sample gave a crystalline content of 30 per cent. The quantity at the respirable fraction was estimated to be 18.7 per cent.

Jan 1, 2003

By D Thornton, R Hodson, D Sprott

Blast fragmentation size distribution and thus blast design have been found to have a direct impact on the load and haul cycle through excavator dig time and bucket payload. Previous studies have demonstrated that by reducing the excavator dig time and increasing bucket payload, significant improvements can be made in both productivity and unit cost. Simulation work reported in the literature indicates that a 20 per cent improvement in dig time may result in only a three per cent improvement in load and haul productivity and unit cost. At the same time, a ten per cent improvement in bucket payload will directly translate to a ten per cent improvement in load and haul productivity and unit cost. Based upon these findings, extensive laboratory and field work have been undertaken in the past to correlate blast fragmentation distribution to bucket payload. In contrast, the literature reports limited studies quantifying the impact of blast fragmentation on excavator dig time. Field work was conducted at Placer Dome Asia PacificÆs Granny Smith Mine (Wallaby Pit) in Western Australia, concentrating on quantifying the impact of blast fragmentation on the dig time of a Liebherr 994 hydraulic excavator (shovel attachment with 14 m3 bucket). Fragmentation was assessed for each truck load of material using the Split Desktop system, while the excavator cycle analysis was conducted manually. Measured fragmentation P80 (fragment size at which 80 per cent of material passes) values ranged from 200 mm to 1200 mm. The field study investigated the impact of various fragmentation parameters (P20, P50, P80, cumulative per cent passing 250 mm size fraction, and uniformity index) on the average and total dig times. The results indicate that the fragmentation P80 provides the best correlation to average dig time (total dig time divided by the number of bucket passes to load a truck). The total dig time was found to be dependant upon the fragmentation P80 and the number of bucket passes to fill a truck. Monte Carlo simulation results, based upon these relationships, indicate a 26 per cent improvement in average dig time and a 12 per cent to 46 per cent improvement in total dig time (bucket passes ranging from 4 to 8), with a change in fragmentation P80 from 600 mm to 200 mm.

Jan 1, 2003

Underground mining of the ore below the West Lyell open cut commenced in 1972 with the 10 Series stopes above rail haulage level. The third lift of stoping (30 Series) com- menced this year, and access to the 40 Series stopes is being developed. The method uses transverse open stopes with subsequent mass blasting of the rib and crown pillars and consequently there is sub- sidence and caving of the old open cut area above.

Jan 1, 1982