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Performance driver trees or KPI trees are reasonably well-known tools for analysing performance in mining operations. However, the tools are often not user friendly. They may be technically correct but they are often clunky. This means they donÆt promote simple management decision-making and donÆt encourage businesses to make them an integrated part of optimising their operations. This paper describes a simple but effective driver tree process and tool that has been successfully implemented and used to aid decision making across a number of mining and processing operations. The important aspects of employing driver trees to assist in management of operations are to ensure that the chosen solution:includes a reporting solution, provides the bottom line impact of the performance indicators, automatically gathers the necessary data that reconciles with existing reports, and is built around a review process that fits with existing management processes. An adequate solution enables operators to identify where there are performance gaps and to quickly prioritise the urgency for addressing these issues. Two case studies are chosen to illustrate the critical success factors of implementing a performance driver tree solution. The first is a large, complex open pit operation. The driver trees, reporting and management processes were initially established for the mining and processing aspects of the operations. Once the initial solution was bedded down, a follow-up project was carried out to establish the equivalent solution for the support areas of the business. The final solution covered stand alone performance driver trees for mining, processing, engineering, maintenance, health and safety, human resources and finance. These individual driver trees were integrated into a total solution that showed how all of the identified KPIÆs impact profit and quantified the dollar impact of all variations. The reporting solution that was put in place automatically creates prioritised lists of variances for the business to address. The second case study is a performance diagnostic project where driver trees were used to assess where gaps in performance were occurring, and then to evaluate the impacts of proposed initiatives.

Jan 1, 2007

SLon magnetic separators utilise the combined force fields of magnetism, pulsating fluid and gravity to continuously beneficiate fine weakly magnetic minerals. They possess the advantages of high efficiency, low operative cost and high reliability. Until now there were about 600 SLon magnetic separators widely applied in processing oxidised iron ores, ilmenite, manganese ore and many other minerals. In this paper, several typical oxidised iron processing flow sheets with SLon magnetic separators are introduced.

Jan 1, 2007

By C A. Fleming

Gold extraction is largely driven by mineralogical factors, which often cause gold losses to various tailings. Mineralogical factors affecting gold recovery include grain size and shape, surface coating or rimming on gold particles, the presence of cyanide or oxygen-consuming minerals or preg-robbers, the presence of slow-dissolving gold minerals and the refractory nature of submicroscopic gold. Among these factors, locking of fine gold particles in sulfide, silicate and other minerals, either as visible, fine-grained gold inclusions and/or as invisible submicroscopic gold, is by far the most common factor leading to poor gold recovery in gold ore processing. This paper discusses the mineralogical characterisation of gold lost in tailings and its metallurgical implications. The techniques used in characterising the un-recovered gold are also briefly introduced.

Jan 1, 2007

By P Grouhel

In the recent years several new blasting technologies have come into use in surface mines. Electronic initiation, low-density emulsion explosives and modelling software are in regular use throughout the world. In Australia, these new technologies have achieved significant application, largely in open cut coal mines where more than 20 per cent of blasting is now conducted with electronic initiation systems. These new techniques have contributed to the vast improvement in blasting outcomes evidenced by increased recovery of saleable product and faster excavation rates. In large surface mines, OricaÆs unique combination of electronic initiation systems, bulk emulsion explosives and modelling software can be harnessed to target critical value outcomes. This includes targeting better fragmentation, increased ore uncovery rates and better wall stability û all adding to improved mining operation profitability. Orica Mining Services have combined these technologies into a set of offerings called Blast Based Services (BBSÖ). The paper describes applications of these new technologies and possible benefits in large surface mines.

Jan 1, 2007

By M Baker

Biodiversity offsets are conservation actions intended to compensate for the residual, unavoidable harm to biodiversity caused by development projects. The use of biodiversity offsets in the context of mining has significant potential for enabling mining to take place in areas with biodiversity values, where it would not otherwise be possible to meet the relevant legal tests under the Resource Management Act 1991, and potentially the Conservation Act 1987. This paper looks at the concept of biodiversity offsets (and environmental compensation generally) both in New Zealand and internationally, and considers how lessons learned overseas may be adapted for this country. In New Zealand the practice of biodiversity offsets and environmental compensation is ad hoc and variable. The challenge with biodiversity offsets is to establish a transparent and coherent means of identifying the overall priorities and objectives of adopting such an approach, as well as how the relevant values are measured and protected. Establishing a methodology for quantifying biodiversity value, and the need for clear policy guidelines on biodiversity offsets are identified as key areas in need of wider discussion.

Jan 1, 2007

By B Menzel, M Wlasenko, J Phillips

Yandicoogina (Yandi) open pit mine is located in the eastern part of the Pilbara region of Western Australia. It hosts pisolitic iron-oxide mineralisation distributed within a meandering paleoriver channel. The deposit is characterised by clays occurring as lenses, accretions, desiccation joint infill and voids in the pisolite ore. The irregular shapes and highly erratic distribution of these clay pods represent a serious challenge for grade control at this mine.The current grade control approach used at the Yandi mine is based on sampling of production blastholes on a 6 m X 6 m spacing. Their good spatial coverage, tight spacing and low cost make blastholes a very convenient media for grade control and ore-waste definition. However the potential downside of this grade control approach is poor sample representivity. An alternative grade control approach is to drill and sample using reverse circulation (RC) holes distributed on a 25 m X 25 m grid. This approach has been tested in Yandi mine and compared with the blasthole sampling approach for sample representivity. The impact of increased drill spacing on mining block predictions has been studied using a conditional simulation technique. Blasthole and RC samples proved to be similarly biased, underestimating Al2O3 and SiO2 grades and overestimating Fe grades, when compared to full cone assays. These results show that using RC drilling for grade control at the Yandi open pit will not necessarily improve the representivity of the grade control samples. However, increasing the grade control spacing to 25 m X 25 m will lead to more than 12 per cent of the selective mining unit (SMU) sized blocks being misclassified. This is approximately a two-fold increase in the number of misclassified SMU blocks in comparison with 5 m X 5 m spacing.

Jan 1, 2007

By S C. Sc, J Young, N Belluz, D Nicholas

The heavy sulfide zone (HSZ) of the Grasberg deposit has the geometry of a funnel and is located at the contact of the mineralised intrusive and the relatively barren sedimentary rock types. The geometry and the rock properties associated with the HSZ plays a significant role in pushback design and sequencing. Most of the HSZ has relatively low strengths which must be considered in slope design and management. This paper presents the open pit mine geotechnical and planning design considerations associated with the HSZ.

Jan 1, 2007

The Argyle AK1 Pit has been operating and producing over 25 per cent of the worldÆs diamonds by volume for over 20 years. The mining boom in Western Australia is creating upward cost pressures to ArgyleÆs mining operation while the price received for its product remains flat in comparison to many other Western Australian commodities. This incongruity, which when combined with other circumstances such as the pit being close to the end of its mine life, a decline in head grades and a tightening in operational constraints caused by the pitÆs maturity, is causing the leadership team at the mine to utilise innovative strategies in order to ensure that the open pit continues to perform economically until its final closure in late 2010. The strategies that will be discussed in this paper are step change business improvement methods, localisation of the workforce, employment of Aboriginal people and the use of a clear and concise consultation process in order to provide certainty to a workforce working in a pit during boom times where pit closure is imminent.

Jan 1, 2007

Solid EnergyÆs project evaluation process utilises a standard staged gate approach, with five levels leading ultimately to project execution (level 6). For a project to progress through each level, specific financial criteria need to be satisfied. Solid Energy primarily use value based (discounted cash flow) metrics to support investment decisions. Within this approach Solid Energy utilise a number risk-based techniques to quantify project uncertainty. This includes the use of risk-based probabilistic analysis using Monte Carlo simulation and probability-based scenario analysis. Figure 1 shows the net present value (NPV) cumulative probability. Project risks are identified through comprehensive risk workshops. The output of these workshops (list of key risks, ranges of uncertainty and probability of occurrence), is quantified within the financial models. Incorporating this risk information on a probabilistic basis allows an investment decision to be made with a robust knowledge of the range of possible project outcomes along with the likelihood (probability) of those outcomes occurring, for example 80 per cent confidence that the project value will be greater than NZ$10 M, 50 per cent confident it will be greater than NZ$50 M and ten per cent confident it will be greater than NZ$70 M. Incorporating risk implicitly into the financial analysis allows the business to easily evaluate/measure projects with different risk profiles. The detailed risk analysis does away with the complexity of arbitrary risk-based hurdle (discount) rates, as projects can be evaluated based on their specific risk characteristics. Whether a project will progress to the next level of investment and ultimately into implementation depends firstly on the value assessment in comparison with the associated risk/uncertainty, and secondly matching this with the businesses appetite for risk. At Solid Energy standard criteria are used for specific project evaluations, but in addition projects are considered on a portfolio or strategic basis also. Solid Energy attempts to maintain a mix of low risk (low value) projects with some high risk (high value) opportunities. The mix of projects must remain in line with the shareholdersÆ risk appetite. One of the keys to a successful investment decision is ensuring that the appropriate information is available to decision-makers so that they may proceed with a comprehensive understanding of the risks and impacts associated with the decision.

Jan 1, 2007

Mining in the twenty-first century brings with it a new range of challenges, some unfamiliar to our industry. Skilled staff recruitment and retention is a significant issue. Equipment supply lead times are changing the risk profile under which we operate. And the new landscape of this century demands accountability at all levels while also requiring that we deliver more to our shareholders and our host communities. This paper draws on experiences in Waihi, addresses some of the challenges facing the modern mining industry and suggests some modest mitigation strategies.

Jan 1, 2007

By J Pric, M Fulton, C Xia

A cyanidation study was conducted on a mild refractory gold ore sample from the Central zone of Clarence Stream Property, owned by Freewest Resources Canada, to develop a leaching strategy to extract gold. Gold, at a grade of 8.00 g/t, is present as native gold, electrum and aurostibite. The ore also contains 2.8 per cent pyrrhotite, together with several antimony minerals (0.8 per cent berthierite and gudmundite, 0.18 per cent native antimony and stibnite). It also exhibits weak preg-robbing properties with 0.16 per cent organic carbon. Aurostibite, a gold antimony compound, is particularly known to be insoluble in cyanide solution. The antimony dissolves in cyanide solution to form antimonates, which retards gold dissolution. Industrial practice of extracting gold from aurostibite generally consists of producing a flotation concentrate, which is leached in a pipe reactor at low alkalinity and high oxygen pressure with about 20 g/L cyanide. The proposed new approach is efficient and allows the extraction of gold directly from an ore at atmospheric pressure and a low cyanide concentration at pH 10.5. The effects of grinding, pretreatment, lead nitrate, kerosene and cyanide concentrations have been investigated. The maximum gold extraction obtained on the ore was 87.9 per cent using 800 ppm NaCN, 500 g/t lead nitrate, 30 g/t kerosene, DO 10 ppm and pH 10.5 in 168 hours. The associated cyanide consumption was 1.3 kg/t. The additions of lead nitrate and kerosene increased gold extraction. In comparison to a P80 of 74 ¦m, a P80 of 30 ¦m significantly increased gold extraction. Gold in solid solution in gudmundite and arsenopyrite was believed to be responsible for the unleached fraction until mineralogical analysis of hydroseparation concentrates of leach residues showed that most of the unleached gold occurs as aurostibite, either as locked grains in sulfides/sulfarsenides or as grains with passivation rims of an Au-Sb-O phase. Coarse gold was also found. Gold extraction was not sensitive to cyanide concentration from 250 ppm to 1200 ppm NaCN and high pH was detrimental. Decreasing the cyanide concentration reduced the cyanide consumption to 0.85 kg/t. The removal of coarse gold using a Knelson concentrator and a Mosley table prior to leaching increased the gold extraction to 90.4 per cent (leach residue at 0.77 g/t).

Jan 1, 2007

By E Topal

There are presently no suitable underground mine production scheduling optimisation models available for application to sublevel stope mining. Scheduling underground production for maximum return is therefore still a manual process, which generally involves scheduling production from the next available highest cash flow stope within the operational constraints of the project. In most mining operations, the scheduling problem is too large and complex to guarantee truly optimal results through manual scheduling. This paper reviews some general optimisation studies that have been proposed for underground hard rock mining. Furthermore, an example of a mixed integer programming model is presented for a small conceptual sublevel stoping operation. Comparative results of a schedule generated by a mixed integer programming (MIP) production scheduling model and a manually generated model on a nine stope example is presented. Results indicate that the potential benefits of the MIP production scheduling model for the purpose of maximising NPV are significant. Finally, a new constraint was formulated to limit multiple exposures of fill masses for use in an existing MIP production scheduling model. Testing of the formulation took place on the central stope of the nine stope example, which showed that the formulation performed its task without breaking other operational constraints.

Jan 1, 2007

A new approach to strategic planning, the Life of Business Optimisation System (LOBOS) optimises production systems from the scale of stopes in a single mine to an entire business strategy consisting of multiple mines and products competing for capital and processing capacity. LOBOS has optimised cash flow for a wide variety of operations, including large metalliferous or coal mines and as an aid to high-level strategic business optimisation solution to multi-mine/processing/product complexes. This paper discusses the application of optimisation technology to strategic planning with an emphasis on project evaluation with examples on the application of LOBOS to a variety of recent projects.

Jan 1, 2007

By K E. Barns, P J. Sharman, S A. Thomas and

This paper presents the development of a regrind facility design at BHP BillitonÆs Leinster Nickel Operations (LNO) in Western Australia. The recovery opportunity was identified from an analysis of plant operating data together with scanning electron microscope (SEM) measurements on relevant tailings streams from LNO. A laboratory procedure was developed to determine the potential recovery improvement of installing a regrind facility at LNO. The last step in formulating the process flow sheet and defining the process design criteria was to construct and operate a pilot plant, which incorporated four banks of flotation cells and an Xstrata M20 Isa Mill. Pilot plant on/off trials were used to define the expected metallurgical benefit. A prefeasibility engineering design and cost estimate was completed. Following a successful internal business evaluation, a feasibility study is currently underway.

Jan 1, 2007

By H Jha, M C. Thomas, P Gupta, S K. Sit

The modern jig with a state-of-the-art control system is much more effective than its older version. This improved control system is used to modulate the amplitude and the frequency of the jig cycle. These two prime parameters are optimised with respect to feed characteristics for best jigging performance. Based on this understanding any jigging plant can be optimised. In addition to these established facts present study shows process efficiency improves further through optimisation of the feed quality.

Jan 1, 2007

By R Bunduwongse

The oil crisis had repercussions throughout the world and most importantly on mining, where the drive to reduce the use of liquid fossil fuel led directly to the appearance and subsequent growth in the design of mobile crushers in late 1970s early 1980s, which heralded a new era in both quarrying and mining. Even though mobile crushing has now become common, even preferred in the quarrying industry, this has not been the case in mining. This paper looks at why, in spite of the initial optimism, this technology has yet to gain full acceptance in the mining industry. The paper examines some of the problems that have been encountered in the past and offers suggestions as to how they can be avoided by applying the appropriate technology. It then takes a look at the successful application of the semi-mobile in-pit crushing system used by Italian Thai Development Company (ITD), on the Mae Moh Phase 5 contract and examines how the techniques used successfully there could be applied to the industry at large.

Jan 1, 2007

By R Cunningham, P Duniam

Late in 2005 it became apparent that cave propagation at the Northparkes Mine was not progressing as planned. By mid-2006 sufficient Reserves were identified to warrant an extensive drill and blast program to assist in cave propagation. This program began late in 2006 and concluded early 2007. A significant challenge faced was the drilling and blasting of holes between 75 - 240 m in length in the South Wedge in Lift 2 at Northparkes Mines E26 orebody. The project set new benchmarks in production drilling and charging in underground metalliferous mining. This paper discusses the drill and blast designs, the challenges and the operational issues encountered with this project. Also highlighted are ways in which these were overcome.

Jan 1, 2007

In 1939 Dr Neil George gave us the statement: Safety is a state of mind by which men are constantly made aware of the possibility of injury at all times. Is this statement still relevant? Have we been able to capture the essence of Dr GeorgeÆs statement in our current safety management systems and have we been able to capture the lessons from the past? Drawing upon 25 years of experience in the mining industry we explore what was done in the past, how this related to Dr GeorgeÆs statement and how the industry has progressed to the current safety management systems. We review the safety management system used by Roche Mining and demonstrate how it has improved safety outcomes for Roche. We then look to the future û are there new challenges? Are the current management systems equipped to cater for these new challenges and deliver continued improvement in safety outcomes? There will always be a desire to improve the industryÆs safety outcomes and so how are future generations going to achieve the improvement in safety outcomes?

Jan 1, 2007

By B Leyland

The media in Australia is currently rife with articles and pronouncements on global warming as the most significant crisis of our time, which may æthreaten the future of civilisation as we know itÆ. This has been recently reinforced by release of Al GoreÆs film æAn Inconvenient TruthÆ, and one would be led to believe that the science of global warming is settled. And yet there is a strong body of literature disputing this apparent consensus which suggests that care should be exercised in introducing radical policies to solve a crisis which may not be real. Such policies would have a major impact on those in professions such as engineering (project approvals and design to minimise greenhouse gas emissions), accounting (carbon tax issues) and the law (corporate disputes on greenhouse gas issues are already in train in the USA). This paper addresses the hysteria apparent in the climate change debate by presenting factual evidence relating to climate change and the current phase of mild global warming. Some of the more extreme statements on future impacts are repudiated with published data, and alternatives to the purported role of fossil fuels in temperature change are offered. The potential impact of political decisions on professional activity is discussed, as are the implications of a possible future reversal of the scientific consensus, as has occurred in the past. The paper concludes with a call for the professions to exercise their Learned Society role to ensure that a rational and public debate is held on the broad issue of climate change.

Jan 1, 2007

By P Hucker, E Hall

Harmony Gold operates the Mount Marion underground gold mine near Kalgoorlie, Western Australia. The mine consists of two ore zones, East and West, and mining of these zones is currently conducted using the sublevel caving method. When mining commenced in the Western zone, the span was insufficient to induce caving of the country rock above. Dyno Nobel, together with Harmony and 360 Drilling, developed an innovative drill and blast solution in order to promote cave propagation and improve the safety of personnel at the operation. The solution involved a series of shallow angle drill holes up to 90 m into the hanging wall of the West zone. These were charged with Titan« 7000 underground bulk emulsion and the HotShotÖ electronic initiation system. The blast used over seven tonnes of emulsion and 46 detonators and achieved the desired result without damaging nearby mine infrastructure.

Jan 1, 2007