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By S Vink, V Nanjappa, C J. Moran

Poor quality water resulting from interaction of surface run-off with saline mine spoil and soils can cause significant problems for water reuse on mine sites. Not only can this saline water lead to machine corrosion and increased maintenance costs, but may cause detrimental effects on the environment. Determining the geochemistry of mine spoil, and the likelihood of salt dissolution during rainfall events, may aid in more effective mine site management of water. Spoil samples were taken from three areas of the German Creek mine site, situated in the Bowen Basin coalfield, Queensland. Samples from two undisturbed areas on the lease were also collected for comparison. Analyses were performed using a variety of laboratory techniques: leaching tests, effective cation exchange capacity determination, X-ray diffraction, clay quantification, and total organic content determination. Results show that dissolution of surface (top 2 cm) salt minerals from spoil areas is an important contributor to surface run-off salinity during rainfall events. Equally, ion exchange with clay minerals appears to be a significant source of elevated ion concentrations in run-off waters. Findings from the undisturbed areas show undetectable quantities of salt mineral species, resulting in waters with low ion concentrations. More generally, monovalent cations (sodium, and to a lesser extent potassium) appear to be derived from dissolution of salt precipitated whereas divalent cations (calcium, magnesium) are more likely to be sourced from exchange reactions with clay minerals. Incorporating knowledge about the mechanism of cation mobilisation from spoil with the spatial distribution of spoil properties and understanding of the dynamics of water quality variations on the site will aid in development of integrated water quantity and quality management strategies.

Jan 1, 2009

By S Hapugoda, A Edenton, M Adam, R J. Holmes, J R. Manuel, R Smyth

Lump ore is one of the key ferrous feeds used in the blast furnace ironmaking process, normally accounting for ten to 20 per cent of the blast furnace burden. Like other feeds, the characteristics of lump ore have an important impact on the stable operation and productivity of the blast furnace. Lump ore is usually assessed chemically, physically and mineralogically to establish its likely blast furnace performance. The physical characteristics of lump ore are strongly related to the chemistry, mineralogy and texture of the ore involved. In this paper, the blast furnace ironmaking process is reviewed, with particular emphasis on the key quality requirements for the ferrous burden material. A variety of key physical characteristics of lump ore measured using standard and non-standard methods are then described and subsequently correlated with the chemical and mineralogical characteristics of the ore wherever possible. Finally, the impact of these physical characteristics on blast furnace operation is assessed.

Jan 1, 2009

In the last 30 years, human appropriation of global renewable resources has accelerated to the point where 35 per cent of the earthÆs land surface is now in managed agro-ecosystems, consumptive water use consumes between 50 per cent and 85 per cent of freshwater supply and 60 per cent of ecosystem services are utilised in an unsustainable manner. There are virtually no landscapes in which renewable resources are not already fully allocated among different economic and environmental uses. Furthermore, it is increasingly recognised that water availability issues do not exist in isolation but are linked with the related environmental issues of biodiversity preservation, the carbon cycle, soil degradation, and energy use and supply. It is against this background that the sustainable management of water in mining is increasingly developing a strategic viewpoint where water is viewed as a resource within an interconnected landscape, having economic, environmental and social value and providing a range of environmental services in the provision of public and private goods. This paper explores the issues associated with sustainable management of water in mining from a strategic viewpoint. The cumulative impacts of multiple water users, both within and outside the mining sector, is increasingly threatening the security of supply for all users. To quantitatively assess the ætrueÆ value of water it is necessary to: Better understand the science of ecosystem functioning and how human actions impact on environmental processes. Develop appropriate policy, finance and governance structures to support innovative programs that preserve ecosystem function and services (including market based instruments). Apply knowledge as interventions across landscapes in ways that maximise benefits and minimise unintended consequences taking into account differences in the value of water among sectors. A strategic viewpoint of water management relies on knowledge to guide decision making that has been acquired at a range of scales from mine site to mining region. This knowledge must be based on rigorous science, sound data and syntheses of different types of information. Strategic management of water resources will better position the industry in terms of understanding the risks posed by complex, interlinked environmental issues that are increasingly impacting on future access to land and renewable resources, including water, thereby ensuring miningÆs future social licence to operate.

Jan 1, 2009

There are no large rivers in Western Australia capable of supplying water for processing magnetite ores. If sea water is used there are severe corrosion issues and the requirement to wash the concentrates with potable water. If groundwater is used there is a need to treat the water and sustainability is an issue for large projects because of potential drawdown of the aquifer.If sea water is desalinated the cost of the water is high because of the power requirement. At the same time the necessity to conserve water has lead to flow sheets where all of the tailings have to be filtered to minimise the water requirement.Managing the various water qualities and optimising water recovery and quality has resulted in optimising the water balance and issues meeting environmental obligations. Reverse flotation is a critical final step in reducing the silica level in the final concentrate and requires good quality water.

Jan 1, 2009

By G Yeowart, P D. Munro

The Prominent Hill copper-gold concentrator of OZ Minerals Limited in South Australia was built in 2008 and commenced commercial production in early 2009. It has a design ore throughput of eight million tonnes per year (Mt/yr). While the flow sheet has many items in common with other plants treating ores from iron oxide-hosted copper-gold deposits, the Prominent Hill concentrator also has some unique features. Plant design has been based on a 'template' of the very successful Ernest Henry concentrator. Initial options considered for processing Prominent Hill copper-gold ore are briefly examined as well as potential complications arising from the presence of a considerable tonnage of 'gold-only' material present in the deposit. Metallurgical test work and the subsequent decisions leading to the selection of a conventional crushing, semi-autogenous grinding (SAG) and rougher flotation circuit is discussed. One particular difference with other plants treating this ore type is that metallurgical tests and mineralogical studies identified that rougher concentrate had to be reground to a P80 of 20 - 25 microns or finer for adequate liberation of fluorine-bearing minerals. Subsequent satisfactory separation of fluorine-rich gangue material from the valuable copper sulfides requires highly efficient cleaner flotation to make a commercial quality copper-gold concentrate. Xstrata Technology's IsaMillÖ and Jameson Cell technologies developed to meet similar taxing fine grinding and flotation duties for the treatment of the refractory zinc-lead-silver ores of the Carpentaria-Mount Isa Mineral Province were selected for regrinding and cleaner flotation. Plant design has features aiding ergonomics for ease of operation and maintenance not commonly seen in recent projects with large sulfide flotation concentrators.

Jan 1, 2009

By D Yan, D Connelly

Beneficiation of magnetite is an integral part of the future of iron ore processing. Historically, the focus of Western Australian producers has been on exporting direct shipping ore (DSO) namely haematite. The future for new DSO resources is limited so companies are changing their emphasis into processing the very large, undeveloped magnetite ores in Western Australia (WA), using beneficiation to produce shippable magnetite concentrates. These magnetite resources require higher cost processing techniques such as fine grinding and beneficiation to produce saleable concentrates. This distinct difference, from the DSO ores, has led to the development of a number of new technologies. This paper reviews: the different techniques used for magnetite beneficiation and provides some case studies in the WA industry; the use of mineral liberation analysis (MLA) to describe the nature, grain size, occurrence and associations of the mineralisation;the consideration of coarse cobbing as a critical upgrading; the application of high pressure grinding rolls (HPGR) to save energy; how the field of magnetic separation has resulted in new machines with higher field strength (SLon Separators); ultra fine grinding requirements of magnetite concentrates; andthe application of reverse flotation to reduce silica in the concentrates.

Jan 1, 2009

By C Moorhead

The classification of Mineral Resource estimates for reporting in accordance with the JORC Code is a statement of the Competent PersonÆs confidence in the estimate and an attempt to convey that confidence to the various users of the resource estimate. In general the classification process is either largely subjective, relying on the Competent PersonÆs experience, or relies on statistical measures derived from the estimation process. These statistical measures may not necessarily relate to the overall confidence in the resource which must also take account of the confidence in the geological inputs to the estimation. Several authors, including Jackson et al (2003) and Dominy, Noppe and Annels (2004), have addressed methods of including consideration of geological data and its reliability into the classification process. Henry and Parker (2005) have discussed a quantitative measure for classification of Measured and Indicated Resources related to mine production parcels. These methods rely on the availability of sufficient information for the application of geostatistics, data evaluation techniques or repeated interpretation of data to provide an indication of confidence. They are suitable for very advanced projects. In 2005, using a modification of the financial audit æcontrol and quality criteriaÆ principles, then widely accepted within Newcrest Mining Limited (Newcrest), the principal author developed a scheme which categorised the classified resources into æcontrolÆ and æqualityÆ (or risk) categories. Control covers all aspects of the data collection, the geological interpretation, the data analysis and the modelling of tonnage and grade; it is also influenced by the documentation of the estimate. The quality criteria are a subjective measure of risk associated with the estimation of the resource and refer to the risk that the tonnage and grade are not realised and the consequences if decisions are made on the basis of these estimates. By evaluating the generally accepted level of risk attributed to these quality ratings by Competent Persons within Newcrest, a graphical representation of the confidence in the resource ounces was prepared for communication of the expected confidence in the resource statement.

Jan 1, 2009

By R Benton

Since commencement of underground production in March 2006 the Kencana K1 orebody has delivered over 0.9 Mt of ore containing 1.18 Moz Au until April 2009. The Kencana deposits are part of the Gosowong goldfield located on the island of Halmahera in eastern Indonesia. The district has produced over 2.3 Moz since mining commenced in 1999 with the first two deposits extracted by open pit methods. The K1 deposit is technically challenging being a vein style deposit with poor to very poor ground conditions and a relatively low overall dip of around 45 degrees to mine grid east. It is mined under geological control by underhand cut and fill methods utilising cemented paste backfill aiming for 100 per cent extraction. With these conditions the operation was mine limited in the initial two years of production resulting in low stockpile levels for mill feed blending and hand-to-mouth mine to mill production. Mill feed rates have increased from 30 t/h to 55 t/h over this period following business improvement projects while mine production has escalated to match this increase as deeper levels of the deposit are accessed. The operation has now become mill limited. Monthly mill gold production from Kencana has ranged up to 50 000 oz with head grades ranging between 8 g/t and 122 g/t Au on a daily basis. As individual grade control assays can extend into the per cent Au range there are challenges in sampling, modelling, mining, blending and milling the Kencana orebody. At the time of commencement of ore driving in K1 the national geology team had little prior experience in underground mining and systems were in early development. The variances in feed grade and tonnages have been reduced with time as the operation evolves and business improvement initiatives are undertaken to smooth peaks and troughs in ore supply. Two such initiatives in the geology department have added over US$20 M of additional revenue per annum.

Jan 1, 2009

By J Centofanti, D Conti, R Riske, C Morley, A Cook

Why is it so difficult? Why are there differences throughout the resources industry in how reconciliation factors are reported and calculated? Why is there no standard formula to use? These are common questions asked when mining companies try to compare reconciliation results across operations or attempt to undertake internal or corporate governance reporting processes. For many mining companies the calculation of reconciliation factors is often a very time and resource intensive part of mandatory reconciliation reporting. Some major mining companies, that move millions of tonnes of material per annum, dedicate full time resources to the calculation of reconciliation factors. The willingness of these companies to set aside resources demonstrates the value that operations place on good reconciliation reporting. Reconciliation is about measuring the variance between two like measures at different points along the mining sequence. It can be undertaken between predictive models, forecast plans and actual measured performance. Calculations are used to derive a variance between two sections within the mining sequence, with the result being commonly known in the resources industry as a æfactorÆ. Mining companies use the calculation of reconciliation factors as key performance indices (KPIs) to provide a æhealth checkÆ of their operation, with variances often pointing to issues either with the accuracy of the original estimate or the quality of the measurement being used in the comparison. There are many reconciliation factors that can be calculated and reported. This paper will set out, clarify and provide a recommended standard means of calculating each specific factor that, where adopted by a company, will ensure compliance with the international reporting codes, such as JORC. Using case studies from Rio Tinto Group (Rio Tinto) and BHP Billiton Mitsubishi Alliance (æBMAÆ), and the authors experience across a wide range of mine sites, the outline of a generic solution for tracking a parcel of material from the pit through to the port along with appropriate reconciliation factors is provided. The intention of proposing standardised reconciliation factor terminology and methodology is to provide the foundations of a system to enable communication and comparison across different commodities, companies and mines sites.

Jan 1, 2009

Most mining operations have been happy to live in blissful ignorance of what their equipment is really capable of. Shareholders have been shown increasing tonnes output per employee (due to rationalising employee numbers). It is now known that the best practice for large mining trucks is 52 per cent higher than average or best practice for excavators is 41 per cent higher than average, or 38 per cent in shovels or 35 per cent with draglines, etc. The data is available. The bell curve of performance is flat. Substantial underperformance is rife. If you are working in or supplying equipment or services to one of the majority of operating mines that donÆt achieve best practice surely you want to know why. Or maybe you donÆt? For many mining people this sort of knowledge could be dangerous to their career so keeping the MD or CEO in the dark is a good option. Many suppliers donÆt want the performance of their equipment benchmarked? Mining consultants donÆt have the data so they are happy to keep guessing. Unfortunately, many Business Improvement or Business Excellence projects are about ticking the participantÆs æcareer boxesÆ. The first step to capacity utilisation is knowing what the capacity is. Even then people and culture will get in the way. People are the biggest hurdle to capacity utilisation. This paper will discuss what the mine of the future (and today) will need to do to utilise the productive capacity of its assets. It is not just benchmarking. It is not just automation. It is not just technology. It is about engaging those people who impact on equipment performance; right from the operator up to the Mine Manager. Doing it better involves a process to facilitate change and a culture which says it is OK to try even if you are wrong.

Jan 1, 2009

Dust emissions from mining, material processing and ship loading operations (fugitive dust sources) are an environmental issue of increasing concern to both government regulators and the community. The main concerns relate to potential amenity, health and environmental impacts from the emissions. Therefore it is imperative that mining/ processing operations, as part of their overall environmental management, reduce fugitive particulate emissions to as low a level as is practicably possible. This technical paper outlines the mechanisms that lead to fugitive particulate emissions, the importance of understanding the exact cause of fugitive emissions, monitoring methods that can be used to quantify the emissions from specific sources, the use of atmospheric dispersion modelling in dust management and innovative dust management strategies including predictive meteorology and proactive management.

Jan 1, 2009

By M Kuruppu

The paper explores the sustainability of the Australian mining industry, and the potential for application of a substitute fuel into existing mining operations. This alternative fuel biodiesel is produced from biological oils and not from refined hydrocarbons like the transport fuel diesel (petrodiesel). The fuel is compatible with all current diesel equipment with little to no modification and has many superior properties. As biodiesel is derived from biological sources it is æcarbon neutralÆ meaning there is no net carbon addition to the atmosphere when the fuel is burned. The current fuel, petrodiesel releases long stored carbon dioxide (CO2) and is of concern to Australian government targets which seek to reduce these emissions. The mining industryÆs unique reliance on petrodiesel is of particular interest when assessing the substitution of biodiesel into underground and open cut operations. The underground benefits of biodiesel see a reduction in the noxious emissions of carbon monoxide and diesel particulate matter, both contaminants which require extensive diluting ventilation to ensure safe levels. As biodiesel is both safer to store due to its higher flash point and produces less exhaust emissions, its occupational health and safety benefits in underground mines is clear. The use of biodiesel in open cut mines benefits the environmental sustainability aspects of the project. The formulation of national targets relating to carbon dioxide emission reductions promotes any measure to reduce CO2 within the mining environment. As the diesel engine is one of the least emission efficient (kWh/tonne CO2) energy sources on-site, its potential for reduction in CO2 at minimal cost is the greatest. By substituting the fuel, significant quantities of site emissions are reduced, thereby achieving the goals of improved site sustainability and the governmentÆs targets to reduce emissions. This aspect of gauging mutually beneficial relationship regarding government interests and mining industry profitability is the underlying outcome for this paper.

Jan 1, 2009

Many types of micro-organisms inhabit iron ore deposits contributing to biogenic formation and conversion of iron oxides and associated minerals. Bacteria such as Paenibacillus polymyxa are capable of significantly altering the surface chemical behaviour of iron ore minerals such as haematite, alumina, calcite and silica. Differing mineral surface affinities of bacterial cells and metabolic products such as proteins and polysaccharides can be utilised to induce their flotation or flocculation. Mineral-specific bioreagents such as proteins are generated when bacteria are grown in the presence of haematite, alumina, calcite and silica. Alumina-grown bacterial cells and proteins separated from such cells were found to be capable of separating alumina from haematite. Biodegradation of iron ore flotation collectors such as amines and oleates can be effectively utilised to achieve environmental control in iron ore processing mills.

Jan 1, 2009

Completion of a project requires two separate money-focused activities, namely economic evaluation of the cash flows underlying the project (before financing) and if the economics look promising, how it can be financed. Economic evaluation might be best led by a person with a technical-operating background, whereas financing might be best led by an accountant. Both should be presented in simple language with easy to understand models. Economic evaluation has a sad and bad history because it evolved from the fringes of accounting. Anyone can become a self-appointed practitioner. Some still take pride in mathematical complexity without realising that they distance themselves from the decision-makers and alienate other team members. Today there is no evaluation modelling consistency across the mining industry and this reflects poorly on our discipline. It is not tolerated amongst our peers in engineering and accounting. In 2009 æbest practiceÆ economic evaluation modelling is well defined. It is:easy to follow;tailored to its purpose;transparent;discipline, rigour and consistency;recording of all source data; and hencequick to audit. Mantra: If you cannot readily understand my model you do not have a problem, I do! The task of the economic model is to make the range of business cases underlying the decision easy to understand. Intellectual power is used to simplify the decision to its key issues and risks and to present the full range of possible business outcomes in readily understood terms. Project team members, management and the board must be able to make their decisions with æeyes wide openÆ. A steering committee should be established to develop a set of standards and practices that could be adopted for economic modelling within the industry. The industry needs to purge itself of the undisciplined economic evaluation modelling that now characterises the discipline.

Jan 1, 2009

By M Maulen, K van Olden, T Elkington

A large open pit is planned at the site of an existing underground mine. Strategic planning work has been undertaken to investigate the project value associated with an expansion of underground operations in conjunction with the proposed pit. Previous analysis determined that any depletion of the available pit resource that changes the optimum pushback sequence has a significant negative impact on overall project value. Therefore, to investigate the viability of an underground expansion requires a system to identify the stope resource that would add value to a combined operation if mined ahead of the pit. The key solution to this problem was to generate a resource model variable that defines the blocks, which have greater discounted value if mined by stoping rather than by the open pit. A key assumption was that the open pit is the main driver of overall project value. From the identified potential underground resource, series of mineable stope shells were generated at a range of cut-offs. This stope reserve data formed the input to a mixed integer program based software tool that was developed and used to optimise the underground mining plan, at conceptual level, for various project configurations. A dynamic programming tool was then applied to evaluate the optimum value of a combined open pit and underground operation. The overall objective of this project was to determine the strategic plan that yields the optimum value for a combined undergroundûopen pit operation. The results provided a clear focus and direction for more detailed design and planning.

Jan 1, 2009

By C Mason, A Littleboy

This paper presents the results of a large scale survey of The Australasian Institute for Mining and Metallurgy (AusIMM) membership. This survey aimed to understand and define the key issues and drivers that AusIMM members perceived would shape the development of the Australian minerals industry over the next 20 - 30 years. Nine hundred and fifty-nine participants rated the importance of 11 issues and six drivers (generated from interviews with AusIMM members), and 236 of these participants also provided qualitative descriptions of the future. Issues were defined as problems or opportunities for the minerals industry that may be controlled or influenced by the industry, while drivers were defined as those factors that will influence the direction of the industry that are not within the control of the industry. The quantitative data revealed that the top four issues, in order of their perceived importance to the Australian minerals industry, were: investment in exploration, workforce, health and safety, and innovation. The top three drivers in order of their perceived importance, were: economics of mining, global context and Australian society. While the top four issues were largely consistent across professional groups examined, metallurgy and mineral processing professionals rated water inputs and energy inputs significantly higher than the other professional groups. For the list of drivers, there was strong agreement regarding their ranked order of importance across the professional groups examined. Within the qualitative data, however, a single issue (technology) and a single driver (economics of mining) dominated participantsÆ descriptions of the future. These findings provide important input into a broader program of scenario development for the Australian minerals industry being undertaken by CSIRO and its partners. The results of this study demonstrate the importance of using a mixed methodology in generating these inputs to understand more fully how important stakeholders view the future and the factors that will shape it. The results of this study are also discussed with respect to the role that CSIRO may play in facilitating the exploration of uncertainty around the future of the Australian minerals industry.

Jan 1, 2009

The objectives of this paper are two-fold. First, it will show what problems can arise when single estimated values are substituted for a distribution of values when evaluating an open pit mine project in the face of uncertainty. Secondly, it will show how the ability to deal with uncertainty and risk in mine project evaluation can have a significant impact on the ownersÆ and stakeholdersÆ investment decision-making. Here a new mine evaluation framework, the integrated valuation/ optimisation framework (named IVOF), is introduced as an alternative tool for mine project evaluation where uncertainty and risk are incorporated in the evaluation process.

Jan 1, 2009

By M Russ, J Gediga

This paper shows an economic feasible approach to implement greenhouse gas (GHG) reduction measures into the mining and metallurgy industry (MMI). The goal to improve energy consumption is directly linked to the reduction of GHG emissions in the MMI. A baseline scenario of the considered reference system and of the respective reference year has to be designed and analysed. In a second step an analysis of the same operation using the best available technology (BAT) processes is carried out to generate a basis for a benchmark system. The identified gaps will be reported and the potential GHG emission reductions will be put into relation to the investment, running cost and generated carbon credits of the new process technologies to be implemented. This economic feasibility calculation is necessary to realise a cost efficient GHG reduction roadmap decision-making for implementing new technology into the companyÆs business operations. The GHG reduction roadmap is developed using the marginal abatement curve approach.

Jan 1, 2009

By M Fallon

The full history of exploration successes, failures and related costs from initial greenfield exploration in 1987 to the current brownfield stages was analysed for the Plutonic Marymia Gold Belt of Western Australia. This belt, which had escaped the attention of turn-of-the-century prospectors and had not produced any gold until 1990, is an ideal area for a collectively exhaustive, progressive value and risk case study of expected return on gold exploration. The study analyses the progressive screening of over 200 greenfield and near mine prospects, through various stages of exploration to the establishment of 38 mining sites, ranging from a few large mines to small satellite operations. It provides empirical estimates of the historical Bayesian probability of projects advancing to successive stages of exploration, eg from reconnaissance, to systematic drill testing, resource delineation, feasibility and mine development, given a successful outcome in any exploration phase. The ratio between the estimated value of the gold discovered and the corresponding historical exploration expenditure in each year and cumulatively, ie the average cost of discovery per ounce of gold, are then computed as measures of historical return on the exploration investment in this belt. These, together with an estimate of the æresidualÆ gold endowment, ie of the number and size of possible as yet undiscovered deposits, generated through the use of rank statistics (ie ZipfÆs law), provide a basis for future strategic consideration in exploration targeting in this and similar geological terranes.

Jan 1, 2009

A key issue in maintaining the mining industryÆs social contract to access community-owned resources, is the need to be able to demonstrate professional management of resource extraction and the risk associated with mining hazards. Significant failures such as disease relating to coal dust and asbestos and mine disasters such as Moura, Appin and Gretley have resulted in judicial and legislative interventions that respond to the community outcry but do not necessarily effectively manage the longer term risk in a sector driven by new technology. With the implementation of recent amendments to the Queensland Professional Engineers Act, senior engineers in all industries including the mining industry are required to be registered and to demonstrate that they have æmaintained competency in the practice of engineering in the area of engineering for which the (engineer) is ... registeredÆ. This may be facilitated through a report produced by an æAssessing EntityÆ. These entities are approved by the Minister on advice from the Board of Professional Engineers, Queensland. Engineers Australia and The Australasian Institute of Mining and Metallurgy (The AusIMM) are the two professional bodies approved as æassessing entitiesÆ charged with facilitating successful implementation of the process established by the legislation. The scope of the legislation covers engineering enterprises in Queensland and engineering activities elsewhere that may have been designed in Queensland. There is currently a challenge to determine what the necessary health and safety competencies for the mining industry are and how the maintenance of these competencies will be assessed. The different approaches taken by the two assessing entities are compared and contrasted. At the legislative level, establishing an obligation to assess professional competency is simple, but at the level of the profession, it is new ground that warrants a substantial research and development input. The challenge is to develop criteria by which the quality of such system can be assessed. The comparison is made by considering such issues as equity, effectiveness, efficiency, objectiveness and transparency. These five indicators are considered in terms of how they are applied in other sectors and how they might be applied in the mining sector.

Jan 1, 2009