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The face of project evaluation is changing continuously, making it ever more critical to get a clear understanding upfront of the objectives, decision-making processes and criteria of the project proponents. Requirements are usually significantly different for emerging æjuniorsÆ compared with long established major mining houses and companies in developing countries compared with western companies. Requirements are also different for different types of evaluations, such as due diligence studies compared with feasibility studies of æownedÆ projects and there are often key misunderstandings around the use of the term æbankableÆ. Further, it has become increasingly important with increasingly remote and lower quality resources to understand risk relativities such as infrastructure compared with the core processing facilities. This has also driven the need for more trade-off studies to determine the best balance between critical issues, such as optimisation of the interface between mine and processing plant, capital versus operating cost and automation versus labour. In every project evaluation, it is also critical to consider emerging trends and changing requirements and standards such as sustainability and community interface. Finally, the inescapable drive to reduce time to market has driven changes such as increased use of more standardised designs and innovative approaches to the transition from project development to execution. This paper begins with a brief review of the different objectives and risks of each project development stage to establish a framework for subsequent discussion of the different requirements of different types of companies in different locations, different types of evaluations and different types of projects and project components. This is followed by a review of changing requirements and standards and some innovative developments in sustainability and community interface are presented. Finally, the paper outlines a number of developments in the area of operational readiness planning that focus on minimising the time to achieve maximum return on investment.

Jan 1, 2009

This paper talks about the experiences of groups we have worked with over the last few years in the Asia-Pacific region (Australia, Canada, New Zealand and Papua New Guinea) and the ways that they have worked to bridge the divide between traditional and introduced structures, governance at a regional level and the introduction of traditional values into monitoring and evaluation practices. In doing this these groups have created structures and processes which have helped them engage both more effectively with external stakeholders while maintaining the legitimacy of their own operations with their own constituents. These are important ideas for those involved in the mining industry that could provide a number of very tangible benefits to mining firms and their engagement with these kinds of groups.

Jan 1, 2009

By C OÆKeefe, A Thomas

Boom time in the mining industry has presented mill operators with several unique challenges including the need for increased throughput while being constrained by a shortage of skilled labour and aging capital equipment. New instrumentation technology that provides reduced installation costs; no process down time for installation; and reduced maintenance costs and labour requirements; has been introduced to address the labour situation while maintaining production. This new tech- nology also enabled more accurate and reliable process measurements thus providing the capability for operators to maximise throughput with their existing capital equipment. This passive SONAR based technology can accurately measure the volumetric flow rate of single phase and multiphase fluids as well as the amount of air entrained within slurries. This is accomplished in a non-invasive manner. This paper will describe the principle of operation as well as the application of the technology to critical minerals processing applications. Included will be operational examples comparing the SONAR measurement performance to traditional measurement techniques. These examples will include hydrocylone feed flow, flotation concentrate flow, and slurry streams containing magnetic ores. Actual plant data will be presented as well as a discussion on the operational advantages such a measurement capability.Also described will be the power of the technology platform to provide novel process monitoring and control capabilities such as pipeline sand-out prevention and pipeline acoustic monitoring.

Jan 1, 2009

By A T. Owen, F A. Benn, J D. Swift, D M. Labbett, A F. Grabsch

The AMIRA P266 æImproving Thickener TechnologyÆ series of projects has sought to provide a firm scientific basis for feedwell and thickener design, a requirement as pressures on water usage in the minerals industry increase. While advanced computational fluid dynamics modelling of feedwell processes has generated the most obvious and successful applications to improving the performance of operating units, such outcomes have drawn heavily on parallel studies into flocculation fundamentals. Central to this has been the development of a linear pipe reactor system that allows the kinetics of flocculated aggregate growth and rupture to be measured for thickener feeds under turbulent pipe flow conditions. This ensures much greater control of the intensity and duration of applied shear than is possible with conventional flocculation test procedures, offering insights into flocculation processes that would be otherwise hidden in time-averaged measurements.

Jan 1, 2009

By P Navarra, R Kuhne

Dynamic simulation (discrete event simulation) is the preferred methodology to evaluate the impact of dynamic aspects of processing plants on the overall plant capacity. This tool can be used to: identify bottlenecks in the plant,justify upgrade and expansion projects by evaluating their impact, oroptimise maintenance and operating practices without disrupting the operation. Iron Ore Company of Canada's (IOC) pelletising plant is a complex operation because of multiple products, varying equipment capacity and shifting bottlenecks. Furthermore, with extensive capital requirements for projects and long lead times, a high level of confidence in project outcome is required. Therefore, a model of IOC's pelletising plant in Labrador City was constructed in 2007 by a joint IOC and Hatch team. The model includes both operational and metallurgical aspects in order to better capture the complexity of IOC operation. In this paper, the justification, boundaries, and functionality of the model are described. A comparison of simulation results to historical plant operation is given. It is observed that projects have interactions and that the benefits of combined projects are not equal to the combined benefits of the individual projects. Projects can have synergies that result in greater benefits when combined or can have overlapping benefits that result in lower benefits when combined. The power of the proposed modeling exercise lies in the ability to assess the impact of projects on overall performance.

Jan 1, 2009

By B Mack

The cost of water treatment is now more than ever a major consideration for maintaining an environmentally and economically sustainable mining operation. As an industry, we often have to consider water sources that are highly impure and difficult to treat. We are also discovering the value of our waste waters in this regard and using new and improved methods and technology to reclaim and reuse water. In many instances, the water or waste water to be treated is highly acidic and saturated in sparingly soluble salts. Conventional systems used to liberate this type of water typically involve high doses of lime with large volumes of waste sludge produced, and are comparatively complex to operate, to pretreat the water in order to reduce scaling tendency on the reverse osmosis stage. However, if the water is considered valuable for reuse, then why not avoid difficult and cumbersome pretreatment processes and treat the water at low pH to keep the sparingly soluble salts, metals and other dissolved species in solution. This paper describes a patented technology that uses and successfully proves this concept as a cost effective option for certain situations. Results from a treatability study on an Australian groundwater are discussed, along with an economic comparison to a conventional method and discussion on full-scale potential.

Jan 1, 2009

The resource sector is conservative industry and people are resistant to change. The methods and procedures used to implement changes in process plants ultimately determine the success of such changes. The financial managers have a large say in where money is spent and the technical personnel must justify the cost and benefits for any expenditure. There are also others who believe it canÆt be done û æwe tried thatÆ. Implementing change needs a æChampionÆ who can assess the risks, plan, define the objectives and scope, set the goals, determine the key performance indicators (KPIs) and stay focused. This also requires preparing a budget and schedule and measuring against this. Contract management, reports and reviews are part of the implementation. Several case studies are given as examples of the implementation of process design changes to highlight the critical aspects involved.

Jan 1, 2009

The global mining industry is perceived to be a world leader in sustainability reporting û with a 2008 Ernst & Young survey placing four mining companies in their top five performers in sustainability reporting in South Africa. There is certainly good evidence to support this finding, but there remain many ongoing issues with respect to sustainability reporting and some important areas for improvement by mining companies globally. This paper begins with a broad (but brief) review of sustainability and the technical basis for reporting against a wide range of typical indicators or measures on the environmental aspects of mining. The various protocols, frameworks or systems are then reviewed, with a particular focus on the Global Reporting Initiative (GRI) and its associated mining sector supplement (including the evolution from environmental to sustainability reporting). A wide-ranging survey of reporting by mining companies is presented, including detailed analysis of 2007 and some commodity sectors over time. Examples of reported data are synthesised and analysed, focusing on their accuracy, consistency and utility for accurate assessment of the life cycle impacts for minerals and metals. A number of areas are identified for improved reporting by all mining companies, including water resources and consumption, energy consumption, process inputs (eg acids, solvents, etc), pollutant emissions, including greenhouse emissions, mine site data (not aggregate company totals) and finally rehabilitation and land status. Given the nature of mining, and considering parallels between æpeak oilÆ and the mining sector, it is critical that the state of sustainability reporting continue to evolve and improve û both in the number of companies using the GRI but also in the level and consistency of data being reported. Overall, the paper presents an important review of the present state of the art in sustainability reporting for mining, and provides a range of insights into ways to help improve reporting in the future for all mining companies.

Jan 1, 2009

By D Barclay, S Mercer, S Wright

Mine water management is often an afterthought in mine planning processes and can introduce significant risks to projects when studied as a stand alone component at a later stage in the mine design. Incorporation of a mine dewatering and pore pressure dissipation strategy in the early stages of mine planning is imperative in order to minimise constraints on the production schedule, to match designed pit slopes and maximise project value for an open cut mine option such as Olympic Dam. A risk-based mine planning approach was adopted during the project selection phase study whereby water management was introduced into mine planning, scheduling and the development of an operational strategy. Hydrological and hydrogeological studies and outputs were successfully integrated into the various iterations of the mine planning cycle during early selection phase to manage the potential water management risks associated with pit slope depressurisation and access to dry working conditions during rapid advancement of mining phases.An extensive network of vibrating wire piezometer sets and long-term depressurisation testing characterised aquifer conditions and demonstrated that hydraulic connectivity exists within the geological profile due to the presence of structures and resource drill holes which enhance vertical connectivity. This connectivity, along with underdrainage from mining activities contributes up to 100 m of depressurisation in low permeability units.A pit dewatering strategy incorporates the mine planning schedules and accounts for operational constraints as to the location and development of the dewatering wells, storages and pipelines. Numerical modelling generated a range of likely pit inflows and dewatering requirements with the average initial dewatering discharge likely to be 150 L/s and reduce quickly to 50 L/s after five years, depending on the premine schedule.Coupled hydrogeological and geotechnical assessments were also carried out as part of the mine planning cycle and indicate that successful dewatering will go a long way to reduce the pore pressures within key geotechnical units during the rapid mining phase where around 300 m of cover sequence is stripped in five years. However, the residual storage in the primary aquifer and the residual pore pressure in underlying low permeability units will need to be dissipated (in-pit horizontal holes) as the pit floor advances. Pit slope design angles are sensitive to depressurisation and dewatering and up to 70 per cent depressurisation of key geotechnical rock units are required. Whilst an accelerated program of aquifer dewatering supported by lithostatic unloading should drive rapid depressurisation in the lower permeability units, intervention is anticipated in key geotechnical units such as the Tregolana Shale and volcaniclastics. The extent of induced drainage will ultimately depend in part upon the mining rate and geotechnical stability requirements. Practical operability testing addressed the potential for operational constraints to mine depressurisation activities such as congestion and mining schedule development within the pit and identified that depressurisation drilling can be achieved even with reduced access availability. Mine operations and planning groups established design criteria and considered the likely inoperable periods following rainfall events of seven to 14 days to manage the base surge and minimise impact on production. In-pit surface water management options to minimise operational disruptions during and after significant rainfall events were estimated used a stochastic approach.

Jan 1, 2009

By M Denton, M Rheinlander, S Mundell, M Broadgate

The manufacturing industry reinvented its approach to the manufacturing process by managing and measuring it end-to-end. This improved returns on production assets, improved information quality and reduced delivery time, resulting in larger net profits through cost reduction and improved cash flow. Today this approach is standard in the manufacturing industry. Resource development has many requirements in common with the manufacturing production line. These include: control of the various steps, transparency of the state of the process to various levels of the organisation and the overall efficiency with which the process is executed. The authors argue that the introduction of manufacturing execution systems (MES) concepts and technologies to resource development processes will lead to similar improvements in control, transparency and efficiency and could improve profitability and enable staff to work more effectively and make better decisions.

Jan 1, 2009

Downhole survey uncertainties observed at various De Beers operations prompted an investigation into their possible effect on deposit shape and volume. An accurately surveyed artificial æboreholeÆ was constructed and different downhole survey instruments tested. In this way an empirically determined error range of 0.1 per cent to ten per cent was derived for downhole survey data. These survey errors were applied to an orebody model at an existing mine. Visualising the sphere of uncertainty associated with a borehole trace using a general mining package (GMP) gives an indication of possible volume variance. The resulting orebody maximum and minimum volume scenarios for three different depths (200 m, 500 m and 800 m) are presented. For certain instruments and borehole angles, the 3D positional error can be as high as 100 m at 1000 m down the hole. At depths below 200 m the resulting volume deviations can become significant for borehole survey errors exceeding 0.35 per cent. At 800 m depth the volume difference can approach 25 per cent. These figures assume that the error is compounded. The impact of these downhole survey errors is greatest for pipe-like orebodies such as porphyries and kimberlite pipes. Subhorizontal sill-like orebodies (and coal seams) will not be significantly affected by these errors. The impact of this type of survey error needs to be stated (and quantified) and is significant in JORC classification.

Jan 1, 2009

The first thing to be aware of is that the warming effect of carbon dioxide is strongly logarithmic. Of the 3¦ that carbon dioxide contributes to the greenhouse effect, the first 20 ppm has a greater effect than the following 400 ppm. By the time we get to the current level of 384 ppm, each 100 ppm increment will produce only about 0.1¦ of warming. With atmospheric carbon dioxide rising at about 2 ppm per annum, temperature will rise at 0.1¦ every 50 years for the next couple of hundred years before the effect becomes minuscule. The warming of the 20th century, as the Earth came out of the Little Ice Age, was a consequence of short, high-amplitude solar cycles. A number of solar physicists have predicted that the next solar cycle, Solar Cycle 24, will be quite weak. Based on the correlation between solar activity and the EarthÆs climate, a temperature decline of 2¦C is predicted for the mid-latitude regions over the coming decade, equating to the experience of the Dalton Minimum. Anthropogenic warming due to carbon dioxide will not ameliorate this temperature decline. Increased atmospheric carbon dioxide is wholly beneficial due to itÆs fertilisation effect. Efforts to inhibit Australian carbon dioxide emissions are exactly wrong in science.

Jan 1, 2009

Water is required as a key strategic resource in most mining and metallurgical processes and, in some countries, it has become a limiting supply for the development of mining activity. During the last years, mining industry efforts have been successfully focused on water use efficiency in the different processes. However, these efforts will not be sufficient to compensate for the growing demand of mining products and the decrease of ore grades. New efforts should be oriented to the search for alternative water supplies such as sea water, with or without desalinisation, or water harvesting. But to survive this growing pressure and to get a social licence to operate, the mining industry can also assume a proactive attitude and pursue a prominent role in water management at regional and local scale. This paper reviews some of these emerging issues, particularly in the context of the Chilean copper industry.

Jan 1, 2009

By R McCarthy, P Hawke

FerrAus Ltd's Robertson Range and Davidson Creek Projects are located in the Hamersley Province about 100 km east of Newman, Western Australia. Significant iron mineralisation defined by an aggressive exploration program within the Marra Mamba Iron Formation is shallowly north dipping at Davidson Creek, and mainly shallowly east dipping at Robertson Range, forming part of a regional scale anticline with the granitic and greenstone basement of the Sylvania Inlier as its core. With minor exceptions, the stratigraphy is comparable with that seen in the main Hamersley Basin. Granite and greenstone basement rocks of the Sylvania Inlier are unconformably overlain by shales and volcanic rocks of the Fortescue Group. The overlying Hamersley Group is locally represented by interbedded chert, banded iron-formation (BIF) and shales of the Marra Mamba Iron Formation (Nammuldi, MacLeod and Mount Newman Members), and dolomites, cherts, BIF and shales of the Wittenoom Formation. Iron enrichment occurs predominantly in the Mount Newman Member, and to a lesser extent in the West Angela Member of the Wittenoom Formation. Enrichment varies from 20 - 30 m in thickness in elongate bodies up to 3 km in strike length, and generally thins down dip. At Davidson Creek iron mineralisation is a haematite-goethite-ochreous goethite assemblage, while at Robertson Range this assemblage is consistently overprinted by a later, goethitic alteration related to 'hardcap' weathering. Near surface hardcap alteration in both project areas comprises more siliceous, aluminous and vitreous goethite. Initial exploration completed by Rio Tinto Exploration between 1999 and 2001 indicated the potential for about 20 Mt of iron mineralisation at Robertson Range. Since 2005 a detailed exploration program undertaken by Australian Manganese Pty Ltd (a wholly owned subsidiary of FerrAus Ltd) has defined a global indicated and inferred resource totaling 164.4 Mt at 58.6 per cent Fe (ASX: FRS 17 April 2009).

Jan 1, 2009

By R Hardie, J Crerar, J Merritt, B Kirsch

Longwall mining and related subsidence, and watercourse diversion for surface mining operations have the potential to impact on fluvial geomorphic processes and the health of river systems. This is evident in the Isaac River in central Queensland. The scale and likelihood of these impacts are a function of the extent of existing and proposed mining developments and of the ongoing geomorphic, hydrologic and ecological processes within the Isaac River. Understanding the objectives for the river, the past and ongoing processes at work, the cumulative impacts of longwall mining development and the options for managing those impacts is essential for the development of an effective strategy to manage the health of the river system. An assessment has been undertaken to identify and understand the cumulative impacts of mining subsidence and other mining influences on geomorphic processes and waterway health in the Isaac River over a river length of approximately 100 km near Moranbah in central Queensland. The assessment included the development of a vision and objectives for waterway health. The assessment has identified mining and landuse changes that have impacted on the hydrology, geomorphology, ecology and hence the health of the Isaac River. The assessment has then sought to identify the cumulative impact of longwall mining and related subsidence on current stream condition and the proposed vision for the system. The primary impact of longwall mining on the river was found to be associated with sediment transport. The investigation included assess- ment of total sand available for transport, the volume of sand transported annually and the fluvial process response to subsidence. Recommendations have been developed for the management of the system and for longwall mining to increase system robustness and achieve the river health objectives.

Jan 1, 2009

The current genesis of pisolites and channel iron deposits (CID) has been defined in a way that presents CID as unique in the world. The published material on detrital pisolites mostly details the West Australian CID; most other global occurrences of iron-rich pisolites would seem to have an in situ genesis. An alternate theory for the origin of the Hamersley CID is suggested, involving an older greensand protore derived from volcanic ash and deposited on a glaciated Hamersley surface. This paper presents the author's observations, sampling and mapping after several years study and exploration for pisolites and CID in WA and in some locations overseas. It is not what one would call scientifically complete, and possibly asks more questions than it answers, but it is presented as a point for discussion.

Jan 1, 2009

By J Lea, D C. Kettlewell

The Carina iron ore deposit lies 105 km northeast of Southern Cross, WA. The area designated the Yilgarn Iron Ore Project (YIOP) is comprised of five prospects along an east-southeast trending greenstone belt that extends from the Helena-Aurora Ranges in the northwest to the Yendilberrin Hills in the southeast, over a strike length of approximately 40 km. The YIOP project encompasses the previously identified iron deposits of Bungalbin, Bungalbin East and Mt Walton. The Carina deposit was discovered by Polaris Metals NL in May 2007. The Carina deposit is located within and parallel to the structurally complex northwest trending Mount Dimer shear zone. The volcanosedimentary Archaean-aged greenstone sequence consists of ultramafic and mafic lavas and flows with interbedded sediments dominated by chert and banded iron formation (BIF). Supergene enrichment processes formed a goethite orebody replacement of BIF sequences within a doubly plunging synclinal fold structure. Mineralised outcrops dominated by goethite form a low ridge 1500 m long, up to 90 m wide and drilled to over 200 m in depth. In the vicinity of the Carina deposit, iron occurrences have been identified over at least a 12 km strike length and the exploration potential of the area is identified as 30 - 40 Mt. Polaris Metals began exploration in the area in 2006. Target generation in the area used existing state geological survey maps and regional magnetic survey data to focus on BIF occurrences associated with major structures. Early field investigations resulted in the identification of a large outcrop of predominantly goethite mineralisation at Carina. Detailed geological and structural mapping was completed, followed by close-spaced reverse circulation and diamond drilling. The mineralisation is predominantly goethite with specular and coarse platy haematite localised along structures that cut the goethite mineralisation. Mineralised zones are moderately vuggy and larger cavities occur in proximity to fault zones that transect the orebody. A capping by a thin veneer up to 9 m thick of canga or ferricrete occurs in places. By December 2008, 178 reverse circulation and 11 diamond drill holes (seven surface holes, four tails) were completed. The current JORC-compliant resource estimate is based on assays from 72 RC drill holes and using a 55 per cent Fe cut-off stands as an Inferred Resource of 27.9 Mt at 58.6 per cent Fe, 1.3 per cent Al2O3, 3.7 per cent SiO2, 0.09 per cent P, and 10.1 per cent LOI. Assaying has recently been completed and will be incorporated into a new updated resource later in 2009.

Jan 1, 2009

By R McCarthy, P Darvall

FerrAus Limited's Robertson Range and Davidson Creek iron ore projects are located on the far eastern margin of the Hamersley Province, approximately 100 km to the east of Newman, Western Australia. The deposits are primarily formed of bedded haematite-goethite-limonite mineralisation within the Marra Mamba Formation, comprising a total combined resource of 164 Mt at 58.6 per cent Fe. The deposits represent relatively new discoveries for the Hamersley Province. The potential for mineralisation at Robertson Range was identified by Rio Tinto Exploration in 2000, while Davidson Creek remained untested until 2007. One of the main reasons for this is that these deposits are almost exclusively concealed beneath Tertiary sediments and recent transported cover making them difficult targets for conventional, prospecting style exploration. Since commencing exploration in the project area, FerrAus has collected nearly 20 000 stations of gravity data within the Robertson Range and Davidson Creek project areas, with most of this data collected at a 50 100 m station spacing. Gravity has proven itself to be an effective technique at predicting the position of the target host stratigraphy and has been a key driver in the exploration for concealed iron ore deposits. However, there is not always a perfect correlation between the position of gravity anomalies and concealed ore. The response of deep haematite bodies may be masked by low-density cover rocks, while other dense lithologies may be the cause of gravity anomalies which appear similar to the Marra Mamba targets. Hence, effective use of the gravity data requires interpretation in a geologic context with an understanding of the capabilities and limitations of the technique.

Jan 1, 2009

The South American mining community leads the world in recognition and adoption of the latest grinding mill relining technologies. Clearly this region has recognised the benefits of improved relining performance as a defence against the Global Economic Crisis. Five of the six RUSSELL TWIN 8 Mill Relining Systems, ordered to date, are either operating or being manufactured for South American mine sites. The sixth is for Sino IronÆs Cape Preston Project in Western Australia. This paradigm shift, towards very short relining times, aims at displacing mill relining activities from the critical path of concentrator maintenance shutdown schedules. The first uses of the RUSSELL TWIN 8 Mill Relining System have seen some of the highest semi-autogenous grinding (SAG) mill new liner placement rates ever observed by Russell Mineral Equipment (RME), as would be expected with two, independent Machines working simultaneously in the one mill. The liner replacement rate, averaged over the whole reline is good (27 per cent improvement over single Machine System in the same mill) but short of full potential. This modest result can be attributed to reline crews unfamiliarity with RUSSELL TWIN 8 System operation. This paper compares a sample of conventional (single machine) RME Mill Relining System performance data with one ædouble headÆ mill liner handler by others. Early performance of EscondidaÆs new RUSSELL TWIN 8 System performance is then compared with recent single machine data from Escondida, immediately prior to RUSSELL TWIN 8 commissioning. RME and Escondida look to constantly improving RUSSELL TWIN 8 System performance as full operational familiarity is achieved. The preparation of this paper revealed a need to develop a global industry standard for mill relining data collection. A web based platform to develop data collection templates is also discussed in Appendix 1.

Jan 1, 2009

By K Zic, P Pickering, P Fraser

Water is a defining feature of the Pilbara. Its management was and remains vital for the pastoral industry which European settlers established when they first came to the Pilbara, and for the mining industry which now dominates economic activity in the Pilbara. Water availability in the Pilbara is, however, problematic. Severe droughts and major floods can occur at close intervals. In response to this uncertainty, the Department of Water undertook a Prefeasibility Study to determine, at a high level, the water requirements and opportunities in the Pilbara region. This paper reports on the outcomes of this study and the water integration opportunities in the region, identifying the sources of water supply and offers possible options for managing this water sustainably for the present and future demand. A range of supply opportunities is reviewed including: dewatering from mining operations, surface water, and desalination. All opportunities were subject to order of magnitude costing, including capital, whole of life and retail unit pricing with preferred options receiving further interrogation through triple bottom line (TBL) analysis to prioritise solutions. Options were also subject to intangible quantification (IQ) including benefits from the reduction of carbon emissions to ensure that the preferred option is based on factors other than just the least cost. Demand analysis was undertaken to identify current and future requirements and were assessed through review and integration of regional and sub regional master plans and consultation with mining, agriculture, industry and the community. The paper concludes that the viability of a Pilbara integrated water supply scheme depends on the development of a financial mechanism involving both government and industry participation models. The agreed scheme formed the basis of a submission to Infrastructure Australia for funding assistance.

Jan 1, 2009