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By B Poborowski, A Chen

"For some time, the Australian and Chinese underground coal mining industries have evolvedindependently with minimal infl uence on each other. Despite the fact that in recent years severaltechnologies and solutions have become common to both industries, this trend has seeminglycontinued to the point that there are still many important diff erences in legislation and hazardmanagement systems in both countries. Austar Coal Mine as an Australian based and Chineseowned enterprise has a unique opportunity to benefi t from the technology and knowledge ofboth nations. This paper compares the Australian and Chinese approach towards spontaneouscombustion hazard management in order to exchange experience, identify possible improvements and learn from each other."

Jun 1, 2012

By C Rogers

"The Coal Seam Gas (CSG) industry has seen a rapid increase in activity over a 30-year periodfrom the early 1990s within Australia. Despite public concerns over environmental issues, theCSG industry has increased in Queensland to the point where more than 90 per cent of naturalgas consumed in Queensland is CSG. The New South Wales (NSW) CSG industry has been slowerto respond for many reasons. Ninety-five per cent of natural gas consumed in NSW comes frominterstate. However, CSG activity in New South Wales is increasing notwithstanding publicconcerns. The CSG potential of three Petroleum Exploration Licenses (PELs) are being assessedwithin the Southern Sydney Basin that provides a unique opportunity to develop resourcesstrategically around many abandoned coal mines. The question has been asked - what do theseabandoned coal mines mean to the project? Are they good or bad? Are they friend or foe? Thispaper att empts to answer these questions and in doing so describes the coal mine ventilation andgas management philosophies and practices used to assess gas production potential. The coalmining philosophies not only have the potential to assist in the construction of a highly successfulCSG project, but they also potentially add signifi cant pre production value by re defi ning how theresources and reserves are assessed and therefore valued. The behaviour of abandoned coal minesand the goaves within the PELs are not well understood by the petroleum industry. However, in the Illawarra region there is an abundance of coal mining knowledge and expertise that if properly focused can greatly increase the chances of project success."

Jun 1, 2012

By F Hungerford

"In-seam drilling has been undertaken for the past 30 years for gas drainage to reduce the risk ofoutburst and lower the concentrations of seam gas in the underground ventilation. The drillingpractices have reflected the standards of the times and have evolved with the development oftechnology and equipment and the needs to provide a safe environment underground. Earlypractice was to adapt equipment from other fields, but with changing emphasis, research anddevelopment by the coal industry has created specifi c equipment, technology and practices toaccurately place in-seam boreholes to provide efficient and effective gas drainage."

Jun 1, 2012

By K Schiefelbein, P OÆGrady, R Balusu, T Ren, T Harvey

"An extensive research program has been undertaken over recent years to reduce the risk of fires and explosions in underground coal mines. The research projects have integrated extensive field studies and computational fluid dynamics (CFD) models of goaf gas flow behaviour to develop optimum proactive strategies to prevent and control spontaneous combustion and fires ingoaf areas. The research has developed a fundamental understanding of the air and gas flowbehaviour in goaf areas and provided a detailed understanding of the eff ects of various geological,ventilation, operational and inertisation design parameters on goaf gas distribution. The researchinvestigations have also provided a better understanding of the flow behaviour of gases from the heating in the goaf areas and the effect of various gas and spontaneous combustion controltechnologies and strategies. Field studies conducted at a number of underground coal mines have shown that the proactive strategies were successful in reducing oxygen ingress into the goaf areas and in reducing the risk of fires and explosions in the underground coal mines. The results of various research investigations and guidelines for reducing the risk of fires and explosions in underground coal mines are presented in this paper."

Jun 1, 2012

By M Salu, G J. Kay

"As underground mines increasingly face the challenge of maximising production without losingfocus on safety excellence, the ability to predict the eff ectiveness of mine seals and stoppings andthe identifi cation of defects plays an increasingly important role in mine ventilation management.While technologies for sample testing installed seals provides signifi cant assurance, the difficulty of conducting tests in operational environments, combined with the production impact of destructive testing procedures, has led to the development of a new method for non-destructively testing ventilation control devices (VCDs). This paper addresses the challenges of in situ testing and reviews the approaches previously employed to verify the quality of VCD installations. It then describes a new testing methodology jointly developed by Whitfield Minerals PTY Ltd and Parsons Brinckerhoff (PB) and the range of tests that have been carried out in the laboratory, above ground, at trial underground sites and in active coal mine operations. Although this is a new approach to testing underground VCDs, the method employs recognised testing equipment in a new application. The aim of the new non-destructive technology is to not only verify the thicknessand therefore overpressure rating compliance, of new VCDs, but to allow mine operations t oidentify and locate defects in installed VCDs without causing damage to the material structure.Currently it is difficult, time-consuming and costly to carry out physical sampling and testing ofevery VCD. Therefore, a reliable and accurate means of non-destructively testing concrete andplaster seals in situ will provide substantial operational and safety benefi ts to the underground coal mining industry."

Jun 1, 2012

By D Cliff

"It has been 17 years since the mine disaster at Moura No 2 Mine in Queensland. Recent disasters in the USA and New Zealand prompt the question what has changed since 1994. This paper att emptsto answer this question and identify areas that need improvement."

Jun 1, 2012

By B Beamish

"All underground coal mines in Australia are required to develop a Spontaneous CombustionManagement Plan (SCMP). The New South Wales Government has developed a guideline (MDG1006) to assist operations to comply with this requirement. A reference document is alsosupplied with the guideline that describes the type of information that is needed for input to theplan, including identifying possible tests that can be used for propensity assessment. However,there is no clear indication of what program of sampling and testing is suffi cient to provide adefi nitive assessment of spontaneous combustion propensity prior to and during mining. This paper reviews the existing methods available for quantifying spontaneous combustion propensity and discusses the sampling requirements that are needed from exploration to mining. A new, more defi nitive method of spontaneous combustion testing is also presented that benchmarks coal self-heating performance from mine ambient temperature to thermal runaway. Examples of the eff ectiveness of this new test method for identifying and quantifying reactive pyrite in coal as well as quantifying the diff erence between dry and wet season conditions are provided in the paper."

Jun 1, 2012

By M Ogle

"Booster fans are relatively rare in Australian coal mines. However, as mines become progressivelydeeper it is likely that such fans will be increasingly adopted as a method to sustain or improve the ventilation of underground workings. The reasons why booster fans may be an att ractive alternative include: increased cost of sinking additional ventilation shafts with greater seam depths; environmental objections to shaft sinking projects; and increasing urbanisation and surface constraints limiting availability of potential ventilation shaft sites. As Tahmoor Colliery movedinto its northern lease the ventilation constraints became the limiting factor on production. Thelimitations of the old workings meant that the existing ventilation system would be inadequateto sustain the required production. Extensive ventilation modelling was carried out to evaluatevarious potential solutions and the recommended option was the installation of a booster fanor fans, to gain underground access to an already approved shaft site in the northern lease.Proposals were sought from recognised fan manufacturers and various alternative arrangements were tendered. Ultimately the choice was between one large centrifugal fan and a set (three or four) of smaller æauxiliary-likeÆ fans in parallel. The successful tender was for a single centrifugal, an arrangement very similar to the booster fans that have been operating eff ectively at Westcliff Colliery for a number of years. This paper describes the current ventilation network, evaluation of the ventilation options, the fan selection process, and the project status to date."

Jun 1, 2012

By A Lim

"As Abel Mine continues to expand and increase production, the requirements of the ventilationsystem have also increased. This paper will outline the stages undertaken to increase the AbelMine ventilation system from an operating position of 110 m3/s and 500 Pa to the current operating position of 220 m3/s and 1.6 kPa and outline steps to be taken to ensure all future requirements will be able to be ventilated."

Jun 1, 2012

By J Rowland

"This paper was primarily put together in order to demonstrate what are believed to be acceptablestandards, in relation to ventilation surveys and the subsequent model assembly process. Thiswas brought about by the fact that in many parts of the world it is regarded as acceptable to carryout ventilation surveys and then build and supply the client with a æstick fi gureÆ type ventilationmodel. Such stick models have arguably litt le use and a very short life span in the real world and isalmost impossible for site staff to maintain. Thankfully most underground coal mines in Australia strive to maintain a true replica model of their ventilation circuits and to keep them in a relatively good state. Given that these mines own and maintain the models, it is often seen as necessary to update or rebuild them. The level of survey detail required to do so is totally dependent on the end use of the data and the criticality of the accuracy of the data set, to the ongoing safety and viability of the business. Mine technical personnel should think clearly about the use and importance of the ventilation survey and subsequent report outputs required that will help them bett er understand their mines and bett er prepare them to manage their ventilation circuits, on an ongoing basis. This paper provides some guidance for Australian ventilation engineers so they may plan and execute this work æin houseÆ, should they rightly choose to do so. To this end, methods of data collection and circuit analysis required for surveys of a high order of accuracy are detailed. Also, some of the issues which are important when formulating a strategy to carry out the appropriate ventilation survey for the required purpose are summarised. As well, the major details that should be furnished within any survey and some survey/report outputs and/or omissions, which are clearly not acceptable, are highlighted."

Jun 1, 2012

By R Hughes

"Spring Creek Mine uses high pressure water to extract the thick Main seam in the Upper Rewanuicoal measures. The extraction method results in the creation of large voids which collapsespontaneously. This can result in the displacement of large volumes of methane, which may create a signifi cant hazard if not correctly managed. A system of automatic dilution doors is employed to mitigate this risk. This paper describes the evolution of the system and gives some examples of its eff ectiveness."

Jun 1, 2012

By D Cliff

"Recent underground coal mine incidents have again raised the issue of: under what circumstanceis it safe for personnel to re-enter the mine? Mine rescue guidelines make recommendations aboutthe limits in terms of the circumstances, lives at risk, no lives at risk and training exercises. Theseare based upon percentages of the upper and lower explosive limits. Many factors infl uencesett ing limits for safe re-entry. These include: the representativeness of the sampling location(s),the rapidity of gett ing an underground sample analysed and the rate of change of the atmospherebeing monitored. Value judgements based upon these parameters will then infl uence the sett ing ofa trigger point based upon per cent explosibility. This raises the question of how the percentage ofthe lower or upper explosive limit is established. It is easy to defi ne this when the sampling pointdata sit on the fresh air limit line. However - what value is used when the sample sits somewherein the body of an explosibility diagram? This paper explores the various options and illustratesvarious pitfalls and problems that are faced in making such a determination. These include howthe data are represented and the assumed knowledge of those doing the interpretation."

Jun 1, 2012

By B Belle

"Mines around the world are inherently and operationally diverse. Current methodologies for the design of mine ventilation and cooling infrastructure involve controlling major safety and health hazards. Globally, it can be estimated that mine ventilation systems from various commoditiescirculate over 150 000 m3/s of exhaust air through shafts. Additionally, over 2 000 000 workersare transported every day through shafts in labour-intensive mining countries like China, India,Southern Africa, and the Americas. A key objective of this paper is to share experiences and provide a case for the revision of ætime-honouredÆ ventilation design parameters based on a benchmarking exercise on design exhaust shaft velocity from various global operations (gold, diamond, platinum, coal and base metals). An active fi eld observation on exhaust shaft velocity has indicated that, regardless of the commodity or continent where the mine operates, almost all life-of-mine (LOM) design parameters provided are in the same range of 20 m/s to 22 m/s, which is not convincing considering signifi cant variations exist in shaft depths, geography, commodity, operating and capital costs. From a due diligence perspective, there are no documented views that are available on the most widely used design exhaust air velocity. Based on the global exhaust shaft velocity data, it is noted that a significant portion of shaft velocities are outside the current design velocity of 20 m/s (some operating up to 30 m/s) and other signifi cant portions of the exhaust shafts operate in the critical velocity range. In the case of Australian coal mines, limited data suggests that none of the mines have ever reached the LOM design exhaust shaft velocity. It is self-evident that when the shafts are not operating at their design quantities either the mine system resistance is low or the ventilation and main fan is operating ineffi ciently. The most common reasons given for not reviewing the shaft system were, ætime-honouredÆ design parameter are being used and cannot be changed, mine fan pressure limits, possible fan blade damage, possible spontaneous combustion risks, leakage or simply did not consider such a possibility. In conclusion, the study has reiterated the historic lessons that a safe and expensive airway should not be utilised uneconomically by circulating too litt le air through it."

Jun 1, 2012

By B Maybee

In underground mine planning, many potentially value-eroding decisions are made due to a lack of time and proper evaluation practices. The information required for mine planning decisions goes beyond external sources of uncertainty that are recognised by typical evaluation techniques used in the mining industry, to include technical factors (eg mine development layout) and the ability of a mineral extraction project to achieve its anticipated production levels. Due to the individual characteristics that define underground mining projects, each will exhibit a different risk profile, and thus advanced optimisation and evaluation techniques are required to capture this information.As underground mine planning tools become more sophisticated, mine planners have the capacity to investigate numerous mine sequencing options to identify the best strategy for a given project, creating higher value for shareholders. This paper describes a risk-based evaluation methodology (RbEM) that accounts for financial and technical risk in the evaluation of underground mining projects. While the use of the RbEM has been described in previous works, no benchmarking of the benefits that can be realised from a change in those decisions that are made early in the process has been undertaken. To show the benefits that can be achieved from using the RbEM, this paper updates a case study to which the RbEM was applied, and takes a retrospective look at whether additional value would have been gained by following the strategic recommendation of the RbEM versus a typical optimisation exercise that aims to maximise the net present value.CITATION:Maybee, B, 2012. Can a risk-based evaluation provide a more valuable mine design?, in Proceedings Project Evaluation 2012 , pp 53-58 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

By P Guj, J A. Bell

The valuation of early-stage exploration projects requires a valuer to take into account a large number of uncertain value drivers, the interplay among which may be non-linear. This paper examines some of the key value drivers including geology, target metrics, project area and maturity, the market and the psychology behind the decision-making process. The commonly accepted valuation methods and their underlying logic are outlined, including a view on why they evolved, what value drivers they attempt to address and their potential shortcomings. These methods include the multiple of exploration expenditure, geoscience rating, expected values and market based methods. The potential future valuation methods of replacement values and neural networks are also introduced along with how to minimise heuristic bias and error within the market-based approach.CITATION:Bell, J A and Guj, P, 2012. Exploration value drivers and methodologies, in Proceedings Project Evaluation 2012 , pp 17-28 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

By L Lorenzen, H Muller

"Every year a large number of projects are evaluated by small listed and unlisted mining companies that are hoping to find the ideal project, which will catapult them from a mining junior status to that of a mid-tier mining company. Usually this includes finding the æidealÆ or ærightÆ orebody and then developing a process which will allow cost-effective recovery of the valuable metals and the production of a saleable product. These dreams are seldom realised and there are a number of good and obvious reasons for this. Issues that are generally high up on the agenda for the smaller companies are: cost of developing a project before the feasibility study stage finding a suitable, or optimum processing technology financing of the project dealing with risk.The most expensive part of the development process for the small miner is often the exploration side of the business and finding the æidealÆ orebody. However, finding the right orebody will not be discussed in this paper. The æidealÆ orebody does not necessarily solve the problems of the mining junior, as much of the uncertainty lies in the process required to recover and produce the final metal product. Once a mineralised deposit has been identified and the grade at least reasonably qualified, the development of a suitable process becomes the driver to convert the deposit into an orebody. This paper proposes that a small exploration company has a very limited opportunity to succeed if it does not do sufficient homework before it identifies the æidealÆ orebody. The risk profile for the small mining company, by its very nature, has to be different to that of a major company and as a result the opportunities often lie in managing different and often new process options, which may be the key to bring such projects on line successfully.CITATION:Muller, H and Lorenzen, L, 2012. Project selection and process development for mining juniors, in Proceedings Project Evaluation 2012, pp 149-158 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

May 24, 2012

By B Maybee, L Fava, D Millar

In the context of a case study for an underground gold mine, the value generated by a schedule optimisation tool (SOT) is assessed. SOT is a software tool for underground mine planning that maximises the net present value (NPV) of a development and production schedule. A baseline study measures the NPV of a schedule generated by SOT from a sequence prepared by the site mine planners. Operational resource constraints and precedence constraints are adhered to by the schedule and NPV is evaluated with a financial model including revenues, costs and discount rate, as specified by the mine planner.The case study has several facets in addition to the baselining component. Scenarios were conducted that examined the degree of constraint on operational resources, the projected gold price and unit costs. Life-of-mine schedules subject to optimisation using SOT allowed for equitable comparisons.Haulage was identified as a dominant constraint for the mine. It was one of six operational resources that were used to constrain the optimisation of the mine schedule, with alternative levels for some of these constraints being identified so that their effects on the NPV could be studied. Alternative price projections for gold and different cost projections were identified and their effects on the optimised schedule examined. Price and cost scenarios that brought additional economic material into the schedule at various times in the mine life were considered in comparison to a scenario that assumed no additional economic material would become available.This case study illustrated that the use of a schedule optimisation tool to optimise mine schedules provides mine planners with an ability to perform a wide variety of analyses in a relatively short period of time. Such tools thereby support strategic decision-making that can add significant value to an orebody.The case study demonstrates that by fixing the set of development and production activities to be carried out before optimising the life-of-mine schedule, the mine planners can inadvertently set up a situation where the NPV would be progressively eroded in the last several years of the mine life. This clearly illustrates the need for schedule optimisation to be integrated with life-of-mine planning.CITATION:Fava, L, Maybee, B and Millar, D, 2012. Decision support for an underground gold mining operation - A case study using the schedule optimisation tool, in Proceedings Project Evaluation 2012 , pp 41-48 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

By P Myers, T Elkington, S Wonday

Sierra Rutile LimitedÆs (SRL) heavy mineral sand mining operation in Sierra Leone, West Africa, is embarking on a new phase of its life. After confronting many challenges during the 1990s and 2000s, SRL is embarking on a strategy of growth to recover maximum value from the mine over the rest of its life. Sophisticated linear programming techniques have been used to develop an optimum strategy for extracting SRLÆs many known deposits of economic grade, while considering options for expansion and for a variety of mining and processing methods and combinations. CITATION:Myers, P, Elkington, T and Wonday, S, 2012. Strategic optimisation at Sierra Rutile - A case study in maximising project value, in Proceedings Project Evaluation 2012 , pp 59-66 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

By S Watson, L Martinez

Mine projects are complex opportunities that demand a constant assessment of uncertainty, ie risk and upside potential. This is because the value of a mine project is typically influenced by many underlying economic and physical uncertainties, such as metal/mineral prices, metal/mineral grades, costs, schedules, quantities, and environmental issues, amongst others, which are not known with much certainty at the beginning of the project. But, is uncertainty an enemy or an ally of the mine planner/analyst? To answer this question, this paper first assesses and elaborates upon the general concept of uncertainty. It then looks at the different sources of uncertainty in a mining project, such as the orebody, costs and product price uncertainties, and their effect on the final project value. Next, a general?review?of current mine evaluation techniques highlighting their limitations when dealing with uncertainty is made. Finally, an extended evaluation and risk management framework that addresses the existing uncertainty in the (greenfield/brownfield) mine evaluation process is proposed. One important characteristic of this framework is that it uses and manages uncertainty in order to generate additional value to the project; this is done through operational and managerial flexibility, which allow mine planners to minimise/maximise project risk/upside-potential giving a more realistic estimate of the projectÆs market value - this is shown in practical and simple examples occurring at different stages of a mine project, such as exploration and operation. Final conclusions are provided at the end.CITATION:Martinez, L and Watson, S, 2012. Uncertainty - An important source of (additional) value for mine projects, in Proceedings Project Evaluation 2012 , pp 131-140 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

By W B. Edgar, S C. Dominy

High-nugget effect vein-gold systems are generally considered to be one of the most challenging of deposit types to evaluate and exploit. To potential investors and mining companies, they are viewed as high risk because of the associated uncertainties in the grade estimate and general paucity of Ore Reserves at production start-up. However, despite the well-known risks, these deposits often have a grade upside that makes them potentially attractive. The reporting of resource grade is of importance and perhaps even more so is the reporting of the associated uncertainty attached to the grade estimate. The use of the grade estimate supported by a grade range is recommended to achieve more complete and useful disclosure. The definition of the grade range can be somewhat subjective, ranging from opinion based estimates through to data-based estimates and geostatistical conditional simulation. Whichever method used, the over-riding issue must be the provision of enough data of appropriate quality and full disclosure to the public of relevant uncertainties.CITATION:Dominy, S C and Edgar, W B, 2012. Approaches to reporting grade uncertainty in high-nugget gold vein projects, in Proceedings Project Evaluation 2012 , pp 95-108 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012