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By G McCullough, J Bassan, d P. Knights, C T. Farrelly

By 2045, carbon-neutral mines will be economically producing products that are vital for the world’s transition to renewable energy. After overcoming significant technical challenges (and the investment of significant capital), leaders have successfully eliminated the use of diesel and other fossil fuels by introducing a wide range of new decarbonisation technologies. These leaders will be reaping the benefits of lower production costs (resulting from elimination of diesel), stable and predictable operations, and easier access to capital for their future projects. This paper describes a future scenario of how a net zero carbon and zero-entry mine could operate by taking maximum advantage of technologies in development or already proven in other industries. Some miners have been unsuccessful in their efforts to reach decarbonisation targets. Instead, they have been forced to close or offload their assets to be acquired by operators with better sustainability credentials, or, in some cases, to indigenous or community-based enterprises with vested interest in making operations viable and sustainable. Regardless of ownership structure, all successful mining operations will have fostered strong and positive community relations that bring education, health, security and economic development opportunities to the communities while respecting their traditions, land-uses and culture. As shallow, easy to mine deposits have become scarce, the majority of new mines are underground. Advancements in electric underground technology and the feasibility of ‘zero entry mining’ (with no personnel in active mining zones) has made it increasingly possible to economically operate underground mines, even at shallow depths. The newest mines have a near zero footprint on the surface, produce no harmful by-products, and are employing in-place or in situ methods of extraction that are efficient and low impact. Surface land-uses, such as agriculture and renewable energy generation, continue in the immediate vicinity of the mine, with no significant ground disturbance, community impact or environmental footprint.

Sep 1, 2024

By M G. Shaw, M A. Rhamdhani, S P. Singh, A R. Duffy, B Eisenbart, A K. Shukla, G A. Brooks

The field of astrometallurgy is a growing area of study. Metal production on the Moon is likely to begin in less than a decade as major space agencies such as NASA (National Aeronautics and Space Administration) and CNSA (China National Space Administration) are preparing to construct permanent lunar bases. The utilisation of regolith to generate oxygen and metals is expected to be important in the development of a sustainable lunar habitat. This paper provides an overview of potential metallurgical processing methods for lunar conditions, emphasising the impact of lunar factors on slag chemistry. The interaction between regolith and the extracted metals, as well as their impact on slag composition and refractory performance, are critical considerations in metal production on the lunar surface. The initial research on lunar metallurgical technologies is focused on oxygen extraction and Fe-Si alloys are reported as the by-products of these processes. This paper delves into the fundamental thermodynamics associated with the carbothermic reduction of lunar regolith. Thermodynamic analysis using the FactSage™ ver 8.2 software package indicates that the Fe-Si alloy can be produced as a metallic product from the lunar regolith at temperatures ranging from 1400°C to 1600°C under terrestrial conditions. However, under ultra-high vacuum conditions (3 × 10-15 bar) on the Moon, the required operating temperature for producing ferrosilicon would be significantly reduced. Thermodynamic modelling results indicate that under lunar vacuum conditions, Fe-Si alloys only exist as solid phases at lower temperatures below 650°C. At higher temperatures, both Fe and Si are expected to be present in the gas phase. In this work, the carbothermic reduction of the Lunar Mare Simulant (LMS-1) is conducted under terrestrial conditions. The findings indicate that the process can readily yield Fe-Si alloys with 7–10 wt per cent Si at 1600°C. Additionally, energy dispersive spectroscopy (EDS) analysis of the resulting Fe-Si alloy indicates the presence of phosphorus up to 1 wt per cent.

Aug 21, 2024

By P Donecker

Like all chains, iron ore values chains are only as strong as their weakest link, which in ore processing is often the humble chute. While mechanically the simplest element in the iron ore flow sheet, chutes are often the most problematic and regularly the major cause of unscheduled downtime. Chute designs have remained static for decades, despite the extra demands being placed on them by grade reduction, which impacts chutes in three ways viz: 1. Higher volumetric rates as infeed increases to meet production targets. 2. Higher moisture content as mining goes below water table. 3. Stickier properties as the dilution phase is often clay based. While there is no shortage of ideas and the geometry options are infinite, the fact is that chute design has not kept pace with grade decline and has remained essentially unchanged. One reason cited for this lack of innovation is the difficulty evaluating and de-risking designs. While the power of computers running Discrete Element Method (DEM) models has advanced, the models themselves still need to be ‘calibrated’ with the dynamic properties of the ore. Flow properties commonly measured for bin design are useful for static situations only and were never intended to predict dynamic behaviour as in chutes, a critical qualification lost in the mists of time. So while they always produce a colourful and reassuring animation, DEM models informed by static ore properties often result in wildly inaccurate real world predictions. Responding to this low success rate, many operators are now utilising physical modelling to help reduce risk and avoid the consequences of having an underperforming chute in their value chain. Physical testing, in a dimensionless scale-down of the proposed system (bulk material and chute geometry), addresses the shortcoming of mathematical models designs and when used in combination with DEM is the best option. In the ideal world, the focus of chute modelling should be innovative design concepts aimed at addressing future needs, however in reality the focus is nearly always on modifications to installed chutes that are underperforming even today. This situation can be traced back to design procedures which if informed at all, are based static ore properties. As an industry, we need to break this cycle and become more proactive, which means addressing flaws in the current design process. In 30 years of providing modelling support to the industry, I have looking at hundreds of underperforming chutes in the iron ore industry. This practical experience has led to a unique and unbiased perspective on chute design and their performance in the real world. The knowledge presented in this paper can not only be used to help avoid baked-in problems now, but also help guide and evaluate designs so we can deal with the challenges of our low-grade future.

Sep 18, 2023

By D A. Sims

This paper outlines the contributing factors to a series of erroneous Mineral Resource estimates which led to considerable loss, including significant reduction of mine life and consequently a large write-down of asset value. The error prompted divestment of the mineral asset in the short-term by the owners, a major mining company. There were multiple and complex contributions to the result: • The mine was undergoing a transition in the deposit geology with increasing depth that was not accommodated in the models. Early indications of the geological transition in initial drilling were generally unrecognised in resource modelling. The shortcomings of the models became apparent with increasing infill drilling and subsequent production reconciliation. • There was a lack of recognition of, and confidence in, site-based input and skills by corporate technical management. The site had a reputation internally for over-delivery to plan early in its life and that supported the anticipation of ongoing metal delivery into the mine plan by management. • A corporate lack of confidence in site being able to adequately domain the mineralisation led to the use of a CIK domaining process, rather than one which was geologically based. This domaining process led to gross over-statement of mineralisation trends reflected in the subsequent OK estimate. • Timelines on the outsourced estimation process were so short that validation was not possible. Obvious errors in the estimate versus data were not able to be used to correct the issues and the site’s Competent Person sign-off occurred without adequate checks. This case study is presented to reinforce the concept that Mineral Resource estimates are not solely based on the ability of the Competent Person to satisfactorily guide the process. There are usually multiple complex issues in the estimation process which need to be recognised and considered in judging reconciliations of model to actual.

May 24, 2023

By D Bruce

OZ Minerals’ Carrapateena mine is a Sublevel cave mine located in South Australia, approximately 160 km north of the regional centre of Port Augusta. Carrapateena commenced underground development in 2016, with production commencing in 2019 and ramping up to 4.25 Mtpa by December 2020. In pursuit of continual improvement, the Carrapateena mining team sought to identify how it could better interrogate its current productivity levels and its drivers (root causes). During this process the team were confronted by a disconcerting number of different opinions (which often conflicted) on our actual productivity performance which led to a need for review. Although reliable data and a well-designed time utilisation model (TUM) existed, it was still unclear what actions needed to be put in place to improve productivity. This was for the following reasons: • Data sources were disparate unless significant effort was applied to compile them. • Data sources were not available in a format that could be easily viewed or analysed. • General understanding of the data which was collected and how it could be used was poor. • Process of regularly analysing performance and forming tangible actions to improve was lacking rigour. A project was then started with the goal to fix the areas stated above. An initial requirements gathering exercise was undertaken to identify key data sources for site which returned a staggering 42 known systems which were then shortlisted to the key systems that contained operational data and could generate tangible improvements when analysed. This paper discusses the approach to selecting the OZ Minerals Insights Hub as the chosen platform, and the effort and collaboration between cross-functional departments that was involved in transforming the data so it could be displayed in a useful way. The data sources identified included a fleet management system, two planning databases, a control system historian, and a mobile fleet machine data system. New processes were also introduced to digitally capture daily commentary; this was achieved utilising SharePoint Forms. Data pipelines were then developed in the Insights Hub platform to automate the ingestion and transformation of the raw mining data into curated data models for end user consumption. Tableau dashboard packages have been created to support facilitation of short interval control, daily review meetings, and weekly review meetings as well as data analysis of key equipment and locations. These dashboards visualise the mining data models in a form that provides the user a clear picture of what has occurred, why it has occurred, and where to focus improvement efforts. This has resulted in a team which is more accountable, more equipped to assess the root cause of performance, and more regularly able to make data driven decisions. The next step? To build this out from Mine to Mill and create a data indexing tool which will drive self-service reporting, a data agnostic platform and predictive tools that help our people continue to be one step in front.

Mar 29, 2023

By C G. Sweeney

The underground mining industry is seeing unprecedented shortages in skilled labour. Migration to Australia being at an all-time low is a leading concern, with pandemic-induced border closures and lockdowns only exacerbating the skills shortage, not causing it. The skills shortage is forecast to peak in 2023 and remain high beyond 2025. With this skills shortage in mind, mining companies throughout Australia are trying to deal with stricter protocols around Health and Safety (H&S) legislation, as well as more stringent controls on quality assurance, particularly as underground mines are reaching greater depths and extending into ‘unchartered territory’. The cumulation of this is proving to be a major hurdle in ‘effective’ operational geotechnical management. The drive for automation in mining is bringing another level of complexity. However, ‘once automation is up and running, it presents the opportunity to access talent pools that may not normally be available. There is also a change in skillset that will be required to drive automation. ‘The top two emerging roles that will be critical for the future of the mining industry are artificial intelligence and machine learning (AI/ML) specialists, and process-automation specialists’ (Writer, 2021). If anything positive has come from the pandemic, it has shown that remote working can be effective and that the drive for automation and critical evaluation of skills required on-site should be given greater priority. UQ acknowledges that the industry is changing, and that digital technology is required to be offered in mining related disciplines. Industry and academia need to do more to promote geotechnical engineering in mining and balance the curriculum to suit the future of mining and make it more enticing. The average cost of a geotechnical failure is about $5 million in coalmines and can be into the hundreds of millions of dollars if production is affected (Cartledge Mining and Geotechnics, 2020). The cost of a good geotechnical design far outweighs the potential losses if a failure were to occur. This alludes to the growing importance of experienced geotechnical consultancies playing a pivotal role in managing mine site geotechnical hazards, while the industry is developing the next generation of geotechnical engineers.

Nov 29, 2022

By J Player, G Sweby, S Webber, E Jones

Seismic systems are a tool for the monitoring and forecasting the rock mass response to excavation. Common issues encountered at mine site audits and reviews are: how to design an effective seismic system, implementation of the design, interpretation of seismic source results and understanding the reliability of the seismic source. These issues are often a function of several items including: • Experience of site personnel in undertaking seismic system design. • Personnel not envisioning multiple phases of system expansion to understand system robustness issues. • System design/expansion occurring in response to damaging seismic activity rather than planned expansion of a system • The mine access development is often localised in comparison to the total orebody being mined hence, planning sensors in longholes in advance of development rather than in short holes close to development will improve the three-dimensional aspect of the network. • Limited site processing of the seismic event data, hence engineers do not see the uncertainty associated with event location, size, source and system layout. Mine site users require a framework to appreciate the challenges and limitations in locating large events. For example, event locations are given as precise measurements (to the nearest centimetre) whereas the volume of deformation resulting in the event often has dimensions of tens of metres or more (as defined by the source radius). A stronger awareness of the uncertainty of rock mass yield within large seismic sources will assist site users in the interpretation of rock mass damage. The encountered design and implementation errors are reviewed and discussed with a practical set of rules presented to provide a robust seismic system that provides consistent results and increases the user’s understanding of uncertainty in source location and size. The authors’ experience across multiple mine sites, seismic systems and damaging seismic events over a 30 year period has been summarised into practical rules for site personnel of all experience levels.

Nov 29, 2022

By D J. Brake

The importance of mine ventilation to health and safety in both coal and metalliferous mines has been long recognised. The primary and secondary ventilation systems in most metalliferous mines incur 50 per cent or more of the total mine electrical power consumption and frequently about 10 per cent of total underground mine operating costs. The requirements for ventilation-related horizontal and vertical development, fans and cooling have a significant impact on mine capital costs and also on mine schedules and start-up times and hence cash flows. There are increasing pressures on regulators and miners to reduce airborne contaminants such as diesel particulatematter, nitrogen dioxide and heat (wet bulb temperatures), and significant pressures to reducegreenhouse gases such as fugitive methane emissions from coalmines and the carbon dioxide footprint of both coal and metalliferous mines. Many previously Australian miners are now globaloperators and have extensive overseas mining operations where local ventilation standards and expertise may not be consistent with Australian practices. The role of the site ventilation officer is also changing with strict new requirements for the statutory position being introduced into Queensland metalliferous mines and the potential for this to become more widespread. Recent regulator and parliamentary review committees have identified systematic shortcomings in mine ventilation compliance, and statutory certificates in both Queensland and NSW now require continuing professional development to maintain currency. Public and investor support for mining are also increasingly contingent on safe, healthy and environmentally responsible practices and the standards for these are frequently tightening. Good ventilation design and operating practices that are consistently well executed therefore contribute significantly not only to a safe and healthy mine but also to a productive and cost-effective operation and the ongoing social licence to operate. There are a variety of ways of providing technical design and oversight into a mine’s ventilation systems; this paper explores some current trends in ventilation standards and statutory requirements, as well as ways to support and develop mine ventilation staff for both domestic and international operations and also the emerging senior technical roles of Group/Principal/Corporate mine ventilation engineer.

Oct 12, 2022

By P Micale

Geological data provides the foundations for the mining value chain. It is used to underpin the modelling and planning and consequently optimise downstream business decisions. However, it is often forgotten or taken for granted. End users often assume the data to be sound without verification. Geological data can be considered a company’s number one asset. Subsequently, the storage, use and management of this data need careful curation and time invested in preserving and protecting it. An established polymetallic mine with 20 000 drill holes could have a data replacement value in excess of $500M at 2020 prices, excluding labour and salary costs. The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the ‘JORC Code’) provides guidelines for Public Reporting. Within the code, Table 1 requires discussion around the different types of geological data, its collection and use. What is needed is additional details regarding the validation and integrity of the geological database. A comprehensive guideline specifying minimum geological standards for geological databases has been developed. This expands on the critical points outlined in Table 1 of the JORC Code. This guideline can be used by companies where geological databases are managed in-house or used to assess these services’ outsourcing. This guideline will ensure that geological data is reliable and unadulterated and can be used with confidence. Using this guideline will assist in preserving the investment of geological data in the mining value chain

Mar 22, 2022

By S L. Martin, M Wimberger

The binary indicator coding of assay and lithological data according to a single criterion or multiple criteria is a powerful technique for representing mineralised shapes through the modelling of probabilities. This can be as simple as using a single indicator to model the probability of occurrence of a condition, usually a grade threshold or a lithology, but it can also be used with a number of categories. Case studies are presented to show the power of this approach, where the geological controls on mineralisation or on the distribution of a rocktype or alteration, often coupled with mineralisation, are unclear. The categorical approach is often used as a de facto grade filter in disseminated or stockwork mineralisation. The ultimate expression of the indicator formalism is in multiple indicator kriging (MIK), where a conditional distribution of probabilities is generated for each estimation panel. This has applications in recoverable resource estimation, as the input for continuous or categorical simulation, where the distribution of sample grades is multimodal, or when there are superimposed mineralisation events with different orientations. However, in some cases, MIK is being used as an excuse for ignoring a quality geological interpretation. Examples from the public domain show the abuse of the categorical and MIK approaches to modelling probabilities, together with a plea for greater consideration of the geology.

Mar 22, 2022

By W Russell, P Wighton, J Franke

Recent advances in ruggedised industrial control system technology and architecture in combination with latest technologies in the fast-evolving 3D LiDAR sensor sector becoming available have enabled the implementation of sophisticated automation algorithms for mining equipment such as bucket wheel reclaimers, as published by the authors in the peer reviewed AusIMM 2019 Iron Ore conference proceedings. This paper provides an overview of a second use case for such automation technology in bulk material ports integral to iron ore operations. The real-time 3D machine-vision based port automation system described in this paper was originally developed for the BHP-Mitsubishi Alliance’s (BMA) Hay Point port. The system has seen deployment at other major mining and general ports in Australia, such as at Dalrymple Bay Terminal (DBT) (shown in Figure 1) managed by Dalrymple Bay Infrastructure Management (DBIM), Hay Point, Queensland. It has the following use cases:

Nov 8, 2021

By I R. Souza

At the mining industry, there are several uncertainties that may affect the mobile mining equipment fleet sizing and usage, such as commodity supply and demand, which impacts the mineral price, environmental licenses to allow operations and strategic decisions made by the own mining company. Due to that, it may happen to acquire a mobile mining equipment for a specific site and before it finishes the entire forecasted life cycle, the machine gets idle on that operation and a decision must be made regarding this matter. On large mining companies with several sites, equipment transfer provides a good solution to solve this issue and at the same time it provides operational flexibility and allows to use the equipment until the initially planned working hours. This article presents a method to compare technically and financially whether it’s more feasible to transfer a used equipment or to buy a new one. In other words, we will compare a brand-new machine versus a used one in terms of safety, net present value (NPV) considering both capital expenditures (CAPEX) and operational expenditures (OPEX), technological obsolescence, risks, equipment maintenance reliability and lead times. Although it’s not the main purpose of the paper, it will also be briefly discussed the importance of having a considerable amount of backup equipment to handle low likelihood and high consequence risks that may materialise. This backup equipment portfolio is particularly important to avoid loss of sales and profits in case the production plan changes and it demands further equipment than initially planned to cope with the forecasted production.

Nov 8, 2021

By J Northfield, L Neesham

The GRE46 Underground Project lies beneath the environmentally unique and culturally endowed shore of Lake Cowal. The ore body is open both along strike and at depth and is currently defined to a strike length of 1.5km and depth of 800m. The Warraga exploration decline commenced in March 2019 and represents the first stage of the Project, which is expected to underpin production at Cowal Gold Operations (CGO) for a period exceeding 10 years. Mining operations at Cowal commenced in 2005, following a period of over 20 years of exploration and permitting. In 2015 Evolution Mining (Cowal) Pty Limited (Evolution) acquired the operation from Barrick Gold Ltd (“Barrick”). Barrick had a life of mine plan that anticipated a cessation of operations in 2024 at a processing rate not exceeding 7.5 Mtpa. Evolution have grown the regional endowment considerably and have a currently approved mine life out to 2032 with a currently approved maximum processing rate of 9.8 Mtpa. This paper examines the history, current status and future path of one part of that plan, the GRE-46 Underground Project. Topics for discussion include discovery, Mineral Resource growth under different ownership philosophies, planning, permitting and commissioning of an exploration decline and bulk sampling project, and integration with the possible future mine. Environmental sensitivities affecting regulatory approvals, timeframes, technical challenges, opportunities and solutions are discussed, along with the path required to fast-track production from the existing 14Mt, 1.4Moz Mineral Resource while complying with the requirements of modern, responsible project development stewardship.

Mar 15, 2021

By K Fiedler, A Newell, P D. Munro

Test work is the foundation upon which the success of projects and subsequent operations is laid, reflected in Professor Arthur Taggart’s pithy observation: ‘Make your mistakes on the small scale and your profits on the larger scale’. Indeed, Professor AllanTrench has succinctly noted that ‘Get the metallurgical characteristics wrong and you don’t have a project’.With deposits becoming lower grade, more structurally and mineralogically complex, final products requiring lower levels of impurities and tailings management demanding more attention, test work now assumes even greater significance in the acceptance and successful execution of a project. This paper is the first in a series aiming to stimulate thought on the metallurgical test work process by getting back to the fundamental basics through exploring and providing some guidelines for the metallurgical testing world, noting preferred practices as well as precautions and mitigations. This covers the key characteristics of metallurgical test work programs, including what needs to be done, sample selection, quality control and associated drivers, and most importantly, selecting, assessing and managing test work facilities. CITATION:Newell, A, Munro, P D and Fiedler, K, 2018. Metallurgical test work – between a rock and a hard place, in Proceedings 14th AusIMM Mill Operators' Conference 2018, pp 15–32 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 29, 2018

By D Kilkenny

Underground contractors in the mining industry must be prepared to take a position at the forefront of innovation of equipment and work methods in order to maintain a competitive advantage over in-house operations and remain relevant. Innovative concepts such as split-feed development jumbos, high capacity trucks and loader guidance systems were implemented by contractors to stay ahead of ‘the pack’. All of these are now common across the industry.The demands of regular participation in competitive tendering coupled with aggressive fleet depreciation, means contractors tend to have more communication and opportunities to work with equipment suppliers than mine owners. Therefore, they are more likely to influence equipment design and product directions. They also have a unique opportunity to assist in trialling new concepts and technologies across a wide variety of operating conditions rather than being restricted to one mine.In addition, as a ‘guest’ on a mine site, mining contractors do not have the luxury of creating the environment for their preferred systems, rather they must have the capacity to adapt their technology to suit the offered environment at a particular mine. This leads to a pursuit of adaptive technologies that can be implemented selectively and seamlessly without excessive disturbance rather than ‘all-of-mine’ systems. These incremental innovations then become available for use across the mining industry where they can add value as ‘bolt-on systems’ to existing operations.Mining contractors, therefore, act as the bellwether for industry practices and equipment. However, in order to maintain their position they must engage industry stakeholders to deliver practical, innovative and cost-effective technologies that add value and result in an improved bottom line for all. This paper uses case study material to illustrate how the Byrnecut Group has approached innovation and how the theory of Disruptive Technology applies to underground mining innovation.CITATION:Kilkenny, D, 2017. Innovation in mining – a contractor’s role, in Proceedings 13th AusIMM Underground Operators’ Conference 2017, pp 59–68 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 16, 2017

By C Hawtin, B Miller, D Ashton

Ernest Henry mine (EHM) is an Iron oxide copper-gold sublevel cave mine located 30 minutes north of Cloncurry in North-West Queensland. The underground mine lies beneath open pit excavations, which were in operation from 1999 to 2011. Fault structures carry large quantities of water from the cover sequence aquifer into the underground mine area. The open cut excavations exacerbates vulnerability of the underground mine to the high intensity wet season storms of northern Queensland. These factors combine to make hydrogeological issues high priority for mine operation. Water-related risks include the cost of removing water from the mine, flooding risk and mud rush potential.Turnover of key technical staff in late 2015 at EHM resulted in the mine being left in an untenable position of losing the primary source of technical knowledge. Due to encouragement of cross-disciplinary activity coupled with workload and resource sharing, the management team were confident in utilising on-site personnel to offset loss of experienced personnel.Remaining geology personnel took additional responsibility for hydrogeological monitoring equipment and planning of upcoming work. Consultant input was limited to review only and an emphasis was placed on knowledge transfer to the geology team. Using this strategy, a 13 hole dewatering program was successfully implemented, achieving a significant water level drop in areas of elevated hydrological risk, whilst also upgrading the hydrological monitoring sensor array.Through a development program centred on cross-disciplinary exposure, the technical team was able to retain key technical knowledge despite staff turnover and produce strong results outside traditional training and roles. This paper serves as a case study on the methods, strengths and drawbacks of putting a focus on cross-disciplinary exposure as a method to combat staff turnover.CITATION:Ashton, D, Miller, B and Hawtin, C, 2017. Go with the flow – managing hydrogeological staff turnover at Ernest Henry mine, in Proceedings Tenth International Mining Geology Conference 2017, pp 129–136 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 20, 2017

By J King, T Hunter, R Coleman

"The industry that supports operations and new projects is suffering a rapid decline in the currently severely curtailed capital investment environment. This is evidenced by a decline in the number of skilled teams, who are now centred in fewer locations. Other features are an aging and retiring ‘Baby Boomer’ generation, coupled with a low uptake of new graduates and the uncertainty in predicting future capital expenditure programs and requirements. Combine this with a reluctance of cash-poor operations to modernise and adapt in an environment of low metal prices, and there is a real uncertainty in how service providers will meet industry needs as they evolve.The industry that supports operations and new projects is suffering a rapid decline in the currently severely curtailed capital investment environment. This is evidenced by a decline in the number of skilled teams, who are now centred in fewer locations. Other features are an aging and retiring ‘Baby Boomer’ generation, coupled with a low uptake of new graduates and the uncertainty in predicting future capital expenditure programs and requirements. Combine this with a reluctance of cash-poor operations to modernise and adapt in an environment of low metal prices, and there is a real uncertainty in how service providers will meet industry needs as they evolve.Trends amongst service providers will be put forward as well as developing options and alternatives. These embrace a whole gamut of agile alternatives in the areas of partnering, alliances, commercial and shared risk models and mutual innovations. These will be discussed with some case studies and suggested approaches.Particular emphasis will be upon brownfield expansions and upgrades which have emerged recently as a preferred lower capital and focused way to achieve best practical outcome at lowest cost. There are a number of specific features of such brownfields projects including the requirement for very close cooperation between the execution team, operators, maintenance and suppliers and a maximum usage of site resources and ingenuity. Often, required investment hurdle rates are high, downtime allowed is minimal and site resources usage is maximised. This requires mutual trust, good planning and high health, safety, environment and community (HSEC) standards and practice. In many ways the practices and skills needed are the exact opposite of the historical ‘big greenfields’ project with which the industry has been geared for more recently.Another developing area has been with innovative commercial models and practices. These have been as a direct result of the more challenging investment criteria being adopted and the relative hunger of service providers. It has become more common to look at these commercial/costing alternatives very early in the project cycle as an essential project tool and not just as a possible option. These commercial solutions cover such alternatives as leasing and rental, deferred payments, build–own–operate–transfer (BOOT) and build–own–operate (BOO), whole-of-mine preferred spares and maintenance terms, and aggressive performance targets with real assurance penalties. Once again this requires very close mutual dealings and trust, and sufficient time allocation compared to a conventional approach.Citation:Coleman, R, King, J and Hunter, T, 2016. Upgrades, Modernisations and Expansions... Where Will the Expertise, Capability and Skills Come from in the Future?, in Proceedings 13th AusIMM Mill Operators’ Conference 2016, pp 69–76 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Oct 10, 2016

By M McCarthy

Over the last six years Mandalay Resources has increased production rates and improved safety outcomes at its Costerfield mine in Victoria, Australia. This mine is an underground operation utilising narrow mining techniques to extract vertical veins, and produces up to 80 000 equivalent ounces of gold per annum, in both gold and antimony value.The operational challenges of narrow vein mining include controlling overbreak when veins being mined are only 300 mm wide. The mine has developed methods and modified equipment to suit extraction of these veins. Productivity improvements over the period have involved development of a stoping method and equipment to suit 1.8 m wide development drives. Over the last five years and during a skills shortage, recruitment, training and retention of personnel has been key to keeping corporate knowledge and skills to execute a careful efficient mining technique to minimise overbreak.Managing an underground operation close to nearby residents has unique challenges. Historically Victorian residents had family members work as underground miners; however, in the current day with few underground operations in this jurisdiction, community knowledge of mining has decreased. The Costerfield Operations are only 100 m from the nearest residence and the company values community engagement, partnership and investment with local Heathcote organisations.The mine has invested substantially in executive coaching of its leadership team early, which has paid dividends in problem solving potential of that team and ensuring the operation delivers on its promises to all stakeholders. The operation has become safer and employees are now more aware of their individual contribution in producing safe, efficient gold and antimony that benefit the whole operation, community and the region.CITATION:McCarthy, M, 2016. Costerfield – a narrow vein case study, in Proceedings International Mine Management Conference, pp 331-338 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By J Missen, P Currie, J Bohan, D Clark

AGL is one of Australia’s leading integrated energy companies and the largest ASX listed owner, operator and developer of renewable energy and thermal generation in the country. AGL owns and operates the 2210 MW Loy Yang A power station and adjacent 30 Mt/a brown coalmine in the Latrobe Valley, Victoria. It also supplies coal to the nearby 1050 MW Loy Yang B power station owned by the GDF Suez (Engie)/Mitsui partnership. The mine is currently nearly 5 km long, more than 2 km wide at the operating face and up to 200 m deep. AGL employs a large workforce at Loy Yang and a substantial amount of services are performed on-site by contractors and consultants.GHD provides mine planning, earth sciences, civil/geotechnical engineering, dam surveillance, plant engineering and environmental services to AGL Loy Yang through an alliance framework. GHD is one of the world’s leading professional services companies operating in the global markets of water; energy and resources; environment; property and buildings; and transportation. In addition to GHD’s global footprint, the company also has a significant Victorian presence, including a permanent, well-resourced regional office in Traralgon, approximately 10 km from Loy Yang, as well as a permanent site office.A joint paper on the Loy Yang mine professional services alliance model was written for the AusIMM International Mine Management Conference in 2006 by Woods and Wood. Now ten years on, this paper provides an overview of the present relationship and arrangements, including the continued transformation of the alliance model and maturing of the relationship contract.These are challenging times, with increasing cost and regulatory pressure driving change in the broader energy and resources industry, and locally including both the mining and power sectors at Loy Yang. Flexible models to achieve a balance between internal personnel and access to key external skills, whilst achieving value for money and transparency, is increasingly critical. The right drivers and performance measures are essential, particularly when confronted with potential major technical and environmental risks (considering significant ground failure and fire events that have occurred elsewhere within the Latrobe Valley over the last decade) within a sector that is reducing costs and optimising production.This case study discusses the alliance status and changes, reasons behind adjustments and what the future is likely to hold. The paper also explores the validity of the original objectives and the extent to which they have been achieved. The philosophy of the alliance is to continue closely aligning the objectives of the two companies in the best interests of the Loy Yang site and immediate surrounds/stakeholders. Quality of service, costs, timeliness, health and safety (H&S) and some operational activities (aquifer depressurisation) remain important aspects and are reflected in key indicators for which performance is measured.CITATION:Clark, D, Bohan, J, Currie, P and Missen, J, 2016. AGL energy, Loy Yang and GHD – a further case study in alliancing: ten years on, in Proceedings International Mine Management Conference, pp 321-330 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By G Pitkin, D Sorley

The purpose of any consultancy is to provide a superior service for their client. Organisational structure is a key element in providing this service and differentiating between consultants.In an organic organisation the emphasis is on effectiveness, problem solving, responsiveness, flexibility, adaptability, creativity and innovation. Such an organisation is able to respond in a timely manner to change because employees are empowered to be creative, to experiment and to suggest new ideas. The process of innovation is triggered by employees throughout the organisation in a collaborative manner.Problem solving becomes a core competence of the consultancy. A multidisciplined approach arrives at superior solutions that are rigorous, holistic, achievable and often novel. It allows the mining consultancy to extract the most from a very talented and experienced team.This paper highlights the advantages of an organic structure for a mining consultancy and how to implement such a structure. It draws on examples of innovative problem solving from feasibility and strategic studies carried out in Australia and Africa.CITATION:Pitkin, G and Sorley, D, 2016. Organic management structure – its advantages in a mining consultancy, in Proceedings International Mine Management Conference, pp 155-162 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016