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XstrataÆs Mount Isa Copper Operations (MICO) is a world-class mining operation producing in excess of six million tonnes of copper ore per annum from its underground mining operations. The Mount Isa Copper Mines have been producing from the underground operations since 1952. Current copper reserves are 87 million tonnes at 2.8 per cent Cu, extending the mineÆs life beyond 2018. The underground orebodies in the copper mines are divided into nine distinct areas and are mined by sublevel open stoping techniques. One of the nine areas is the hanging wall lens, which consists of two sections; a northern lens (NHWL) and a southern lens (SHWL). The SHWL has a proven reserve of 2.2 million tonnes with an average grade of 2.9 per cent copper. Stopes in the SHWL have an average size of approximately 245 000 tonnes and will be extracted in a primary-secondary mining sequence, producing ore until 2009. This paper discusses various aspects of stope design applied in the southern hanging wall lens, including sequencing options and the rationale for the selected sequence. Design features are also discussed and how they have evolved as more is learnt about the SHWL orebody. These include mass firing techniques, focusing on minimising ground vibrations, using seed wave form analysis and prediction. Rock mechanics issues will also be discussed, in particular the reinforcement of stope hanging walls and the use of instrumentation to monitor behaviour within the hanging wall.

Jan 1, 2006

By D Fergusson, J D. St George

Highwall stability is a major consideration in optimising opencast mine geometry. It involves assessing the risk of those slope failures that are large enough to have significant cost, safety and/or operational implications. These risks are then balanced against the value of the resource to arrive at an acceptable slope design. Load-deformation models (commonly referred to as ænumericalÆ models) of slopes provide a powerful tool in this decision-making process since they can be verified well before slope failure occurs. This gives the slope designer increased confidence in reviewing designs during excavation, potentially allowing early revision of pit geometry to either increase or decrease safety margins as appropriate. However, these models are not always adopted as they depend heavily on an appropriate choice of constitutive model and material parameters.   A preliminary load-deformation model of a 170m highwall in Solid Energy North (SEN) OperationsÆ Awaroa 4 opencast coal mine in the Rotowaro Coalfield has been prepared. This uses a strain-dependent constitutive model based on laboratory test results, strength parameters developed by SEN and excavation monitoring data. The laboratory testing has included triaxial compression tests on large-diameter fractured samples to characterise the stress-strain response of the closely-jointed soft rock masses that exist in many parts of the mine. Data from the monitoring of a 25m cut made during excavation of a haul road has been used to refine and verify the constitutive model. The resulting highwall model has predicted highwall crest movements corresponding to the excavation of each bench, for comparison with monitored values. Key model outputs are total horizontal movements of about 0.5m near the highwall crest and shear strains of 0.5-0.7% at the locations of potential bedding-parallel shear planes underlying the highwall. Most of the movement is expected to occur as creep rather than as an immediate response to excavation.

Jan 1, 2006

The mineral resource that a mining company has access to, represents the majority of the embedded value that exists within the company, as well as the competitive advantage that the company has over its peers. However, the real value is only realised once effective mining plans have been put in place, which optimise the extraction of the resource, and add measurable value to the company. The concept of mineral resource management (MRM) has been developed in South Africa, to ensure this optimisation happens in an integrated and quantifiable manner, such that value is added and risk is reduced, resulting in bottom line improvement for the stakeholders of the business. This paper describes the process of mineral resource management, and draws on successes and failures of various companies, to illustrate how it should be implemented, and what measures should be put in place to ensure its success. This requires a fundamental re-appraisal of the way in which mining companies plan and execute their businesses, and focuses attention on real value adding activities and behaviour through the use of economic value added as an appropriate metric by which to measure real value and risk. Specifically, the paper focuses on these aspects as applied to planning models and processes, exploration activity and risk management, to ensure operational and project success.

Jan 1, 2006

This short paper outlines the authorÆs views regarding the present ability of the resources industry to manage its mining assets. It represents a personal view û but one founded in fact-based observations of mining companies and of the mining industry in general. It contends that whilst a great deal has been learnt about the management of mines over the last 500 years since the seminal work of Agricola, observations suggest that best practice management is the exception rather than the rule across our industry. Although insights regarding the successful management of mines have become apparent, we still witness unnecessary errors in our industry that lead to the loss of shareholdersÆ funds. By highlighting some aspects of current best practice, particularly in the arena of operations improvement, it is hoped that this short paper contributes a small step along the next 500-year-long learning curve. At a time of key skill shortages in our industry as mineral producers attempt to ramp-up production to capture historically high commodity prices, achieving best practice operations management has seldom been more critical.

Jan 1, 2006

By K Rozlapa, P Waters, H Middlemis

A major challenge for closure planning at mining operations below the water table is evaporation from final void pit lakes and concentration of salts, which can impact on downstream groundwater (and surface water) flows and quality. Where such impacts are deemed unacceptable, the closure approach that is often adopted is to infill the final voids with waste rock to above the pre-mining water table to prevent the development of a pit lake and subsequent evaporative losses. BHP Billiton Iron OreÆs Marillana Creek (Yandi) mining operations face these issues. The orebody is a channel iron deposit that forms the major aquifer in the region, which will be completely mined as a series of elongated open pits over tens of kilometres. The major constraint on mine closure planning was the stripping ratio of less than one, which means that there is insufficient waste rock to infill all areas to the pre-mining water table. Hydrogeological investigations and groundwater modelling indicated that standard mine closure approaches would result in pit void lakes becoming saline sinks unless the residual void geometry was optimised to minimise evaporation and maximise throughflow. The solution developed is a cost-effective long-term mine plan that meets all mine closure objectives, and involved:the selective infilling of all pits, largely using run-of-mine waste dumping with limited re-handling; the diversion of the major part of up-catchment creek flows around the mining operations to allow mining of the resource under Marillana Creek crossings, which in turn restricted overall aquifer recharge and reduced the elevation of the long-term water table; the diversion of some minor creek tributary flows into specific locations within the mine path to induce hydraulic gradients to maintain groundwater throughflow and water quality; and close integration of mine plan optimisation (mining and waste dumping schedules) with groundwater modelling scenarios to achieve acceptable environmental outcomes. This approach is designed to result in no reduction in downstream surface water flows or quality, maintenance of adequate downstream groundwater throughflow to support groundwater dependent ecosystems, and no reduction in the beneficial use status of the downstream groundwater resource.

Jan 1, 2006

By N Vagias, R Shaw, M Coghill, W Easman

Rio Tinto Technology and the Rio Tinto Foundation for a Sustainable Minerals Industry have funded the development of a practical floating module that can reduce water losses through evaporation from water dams at mining and mineral processing facilities by about 75 per cent. The modules, which are also suitable for use by farmers and communities, were designed for easy deployment, to allow the water to æbreatheÆ, harvest rainfall and resist wind speeds of more than 100 km/h. A large-scale demonstration trial will be conducted at the Northparkes Mine, located near Parkes (New South Wales, Australia). The objective of the trial is to demonstrate to Rio Tinto business units, community, farming and government groups the moduleÆs operating costs and water saving potential.

Jan 1, 2006

The Martha deposit is an economic giant epithermal gold deposit, with mined and unmined resources of more than 218 000 kg (7 Moz) Au. The Au-Ag, base metal sulphide-bearing quartz lodes in the Martha deposit form an extensive braided pattern within hydrothermally altered andesite wall rock. There are five main quartz lodes: 1.      Martha, 2.      Welcome, 3.      Edward, 4.      Empire, and 5.      Royal.   Information from historic mine plans and reports has been used to determine the depth distribution of economic ore within the Martha deposit. Economic ore (average of 10 g/t Au) in the Martha underground mine was at a maximum width and strike length between a vertical depth of 160 and 350 m. Below this depth the quartz-sulphide lodes continue, but the grade declined to sub-economic grades (< 4g/t Au) at about 575 m depth and economic ore shoots were localised, mainly on the hangingwall side of the lodes. Samples from exploration drill holes indicate that this decrease is associated with a depth zonation from electrum-bearing Zn-Pb-Cu-Ag sulphide ore (average 10 g/t Au) to sub-economic (< 2 g/t Au) electrum-poor Zn-Pb sulphide mineralisation.

Jan 1, 2006

By C Chen, W J. Bruckard, F R. A Jorge

The base metal industry mines and processes hundreds of million tonnes of ore per annum to produce saleable products and large tonnages of waste by-products such as tailings. These ores usually contain less than 1 wt per cent of toxic elements (As, Sb, Bi, Cd, Se, Te, Hg, etc), which are subsequently treated with the other components in the ore during the production of concentrate through to saleable metal products. The deportments of minor elements across the various unit operations of a process flow sheet do not normally receive the attention that the major elements receive. However, these minor elements can have a major influence on the quality of the products as well as an economic and environmental impact. Therefore, a high degree of control over their deportments is a key step in reducing their dispersion in the biosphere. Ongoing work at CSIRO has been examining minor element deportments across unit processes used for smelting and refining and the options for early removal of minor elements, as well as methods for safe disposal of some toxic elements. This paper provides an overview of the R&D activities undertaken at CSIRO to develop tools and methodologies for improved management of minor elements during the processing of sulfide ores.

Jan 1, 2006

By D Hodson

Current classification of resources is entirely a subjective task. The various international reporting codes (such as the JORC Code) provide Competent Persons and practitioners with little specific guidance on the standard of work and levels of uncertainty required to classify resources into Measured, Indicated and Inferred. Furthermore, little guidance is given in the conversion of Resources to Reserves and the potential impacts on classification of uncertainties in the modifying factors. Working back from the intended use of the resource estimates, and in understanding the tolerance for uncertainty by the end user of such estimates, insights into the objective and requirements of classification can be determined. Following this approach a comprehensive set of (quantitative where possible) guidelines have been determined that will ensure resources meet the desired objective of each classification, and are consistent and comparable. The guidelines look at what is required for each step in the resource estimation process in order to ensure the final resource estimate meets the desired level of confidence. This approach provides a transparent, comprehensive, justifiable and largely objective method of classification. The implication of introducing such a guideline or approach is to highlight areas of a resource estimation that do not meet the requirements (ie drive the uncertainty beyond the objective) and then focus in on the risks that may flow on from that particular uncertainty, to mitigate or attempt to control those risks.

Jan 1, 2006

By A M. van Niekerk, W Mey

Coal mining has an impact on the water management of the water scarce Upper Olifants River Catchment. A prefeasibility study was carried out by Anglo Coal and Ingwe Collieries Limited to establish the water supply and demand in the catchment. A geohydrological model was used for the coalfields to determine the stored water and excess water available. Two distinct collective and treatment systems were proposed for the Witbank and Middelburg municipalities to treat excess water from the Anglo Coal and Ingwe Collieries Limited. The Emalahleni Water Reclamation Project for Witbank was initiated first. Water management and treatment experience gained at Anglo Coal was the cornerstone to develop the collection, treatment and distribution system. A full enquiry was issued to Keyplan, Veolia, Bateman Africa and IST Technik to construct, commission, operate and maintain a 20 ML/day desalination plant to treat acidic, saline mine waters to a South African National Standard (SANS) 0241 Class 0 potable water. After the technical and financial adjudication, Keyplan were awarded the contract. An integrated regulatory process was adopted through consultation with all the relevant regional and head office staff of the Department of Minerals and Energy, Department of Water Affairs and Forestry and the Mpumalanga Department of Land Affairs via an authorityÆs steering committee. A rock engineering evaluation was done to select both the plant and waste disposal sites as all possible sites are undermined. Various contracts are required with the individual mines for water supply, the Emalahleni Local Municipality for the delivery of potable water and for the disposal of wastes.

Jan 1, 2006

By E Haren, A Winchester

The CSA Mine has a long and varied history from initial discovery in 1871 through to the present. Lead-zinc mineralisation was mined historically near the surface. Today copper and silver are extracted from the deeper regions of the mine. The mine has passed through a number of owners over this time, each with a unique operating philosophy and understanding of the mineralisation. Cobar Management Pty Ltd re-opened the mine in 1999 and has undertaken extensive drilling programs to expand the resource and gain a better understanding of the mineralisation characteristics. Presently mineralisation has been located over a strike length of 1.2 km and to a depth of over 2.0 km with over 30 mineralised lenses from four identified ore systems. The refinement of geological and mineralisation models led to further discoveries and prompted a review and modification of resource modelling processes. Advanced statistical analyses prompted the implementation of ordinary kriging as a grade estimator. Improved stationarity from enhanced geological domaining has been supported by variography and kriging neighbourhood analysis studies. Resource models at CSA are now quantifiable in terms of mineralisation style and estimation reliability. The new techniques are assisting the definition of more mining fronts, which are creating new opportunities to increase mine output.

Jan 1, 2006

By K R. Vining, T E. Norgate

A study was carried out to compare the environmental impacts of the two major iron ore agglomeration processes, sintering and pelletising, using life cycle assessment (LCA) methodology. The following agglomeration processing routes, with the fuel options shown, were investigated:sintering with combined natural gas/coke breeze or charcoal as fuel, grate-kiln pelletising with combined natural gas/coke breeze as fuel, and straight-grate pelletising with combined natural gas/coke breeze as fuel. Inventory data for each process derived from the literature, and in some instances supplemented by additional simulations and calculations, were used in the study and the environmental impact categories considered were gross energy requirement (GER), global warming potential (GWP) and acidification potential (AP). The results of the study showed that the GER, GWP and AP for a sinter plant are higher than those for a pellet plant for the same amount of metallic iron in the agglomerated products. These results are partly due to higher consumption of solid fuel and flux in the sintering process. However, it should be pointed out that the study only compared substantially fluxed sinters with acid pellets that may require additional flux (and hence potentially more greenhouse gases emissions) to be a balanced blast furnace feedstock. Extending the LCA to the blast furnace process stage was beyond the scope of the current study. Within the sinter plant, the sintering stage itself is the largest contributor to the GER, GWP and AP. In the case of pellet plant, the pellet induration stage is the largest contributor to the various environmental impacts. The GER and GWP of a straight-grate pellet plant are marginally higher than those of a grate-kiln pellet plant due to the higher electrical power required by the straight grate system. The substitution of coke breeze with charcoal in the sintering process results in an increase in GER but a decrease in GWP. However, a substantial proportion of the GER is derived from renewable sources (wood), resulting in a decrease in the non-renewable components of this environmental impact. Given the source of the inventory data and the assumptions and approximations made in carrying out the LCAs, it is emphasised that the results presented in this paper should be considered as indicative rather than as definitive results for the two iron ore agglomeration processing routes considered.

Jan 1, 2006

The Committee for Mineral Reserves International Reporting Standards (CRIRSCO) was formed in 1994 to promote development and adoption of international standards for estimation and reporting of exploration results, mineral resources and mineral reserves. The CRIRSCO standards have been accepted by most mining companies and professional societies worldwide. Market regulators from Australia, South Africa and Canada require that these standards be followed when releasing public information. Among these requirements is the use of specific definitions for what constitutes exploration results, mineral resources and mineral reserves. If such information is publicly disclosed in must be estimated by a Competent or Qualified Person. In the United States of America, public disclosures are regulated by the US Securities and Exchange Commission. The SEC does not recognise the CRIRSCO guidelines, and some of the SEC requirements for public release of information are materially different from those applicable in other countries. The CRIRSCO definitions and the Competent Person requirements are reviewed and compared with those of the SEC. The organisation of the SEC and its rule making process are briefly discussed. Ongoing efforts to bring the US regulatory requirements closer to those applicable in other countries are presented, as well as other activities that CRIRSCO is entertaining with the United Nations, the International Accounting Standard Board and other international organisations to reach the objective of worldwide standardisation of reporting procedures.

Jan 1, 2006

The Pilbara region, located in the north-west of Western Australia, is significant as the second-largest source of iron ore on the planet. Iron ore mines owned and operated by Pilbara Iron are located within the Hamersley Basin. This paper refers to the Greater Paraburdoo mines, the 4WEST and 4EAST pits, located on the southern margin of the Hamersley Basin. The groundwater model refers to ephemeral watercourses: Seven Mile and Pirraburdoo creeks, which are adjacent to the two pits, and Ratty Springs, located upstream from 4WEST and within Pirraburdoo creek. The spring and creeks hold cultural heritage significance for local Aboriginal communities. Two of these, the Gobawarrah Minduarra Yinhawanga (GMY) and Innawonga native title claim groups, initiated hydrological work on the two creeks and Ratty Springs, with the aim of determining the affects of dewatering on the natural water flows of these systems. The numerical model used to simulate drawdown in the Pirraburdoo and Seven Mile Creeks was derived from PMWIN Pro software and covered an area of 77 km2. The modelling period was from January 1998 to December 2004, and the prediction period was from January 2005 to December 2015. The model has four layers and incorporated effects caused by mining voids, 4WEST and 4EAST pits, creek bed material, weathered bedrock below creeks and surrounding banded iron formations (BIF). The model has been calibrated using the trial-and-error method set down by Middelmis et al (2001). The current dewatering schedule (12 ML/day) in the 4WEST and 4EAST mining areas does not affect the water table levels in the adjacent creeks significantly or for any considerable periods of time. However, changes to mine plans may occur, for example, in response to changed commodity price and may lead to significant increase in rates of vertical advancement. This, in turn, affects dewatering schedules, as greater vertical advancement requires increased dewatering effort. When an accelerated mine plan is applied to the model and dewatering rates increased to 18 ML/day, drawdowns in the creeks are more noticeable. The model has therefore helped to indicate the extent to which increased dewatering rates may be acceptable, especially in terms of immediate and longer-term damage to riparian species, ie Melaleuca and Eucalypt. Predictions from the model may also allow mine planners to schedule decreased rates of vertical advancement, where these are required to meet environmental constraints.

Jan 1, 2006

Quay Magnesium Limited (QMG) listed on the Australian Stock Exchange in late September 2004 having raised approximately A$30 million with the object of designing, constructing, commissioning and operating a 15 000 tpa magnesium alloy production facility in Nanjing, China. Site construction commenced in February 2005, with installation of all major components completed by the end of October 2005. Hot commissioning was simultaneously commenced with the final stages of installation, leading to the first stage of continuous ingot casting by mid November 2005. Since that time, ramp-up to the name plate capacity has been undertaken. This presentation highlights some of the more significant technical and logistical hurdles that have had to be overcome in order to meet the high quality product specifications required by a range of QMG customers.

Jan 1, 2006

BHP Billiton Olympic Dam produces copper cathode, uranium oxide concentrate and refined gold and silver. The operation is comprised of an underground Mine and Processing Plant and is located 560 km north of Adelaide. Water for the operation is sourced from two wellfields located 120 and 200 km from the operation in the Great Artesian Basin (GAB) at a rate of approximately 36 ML/d. Regulatory drawdown limits were established to protect regional GAB springs and are monitored at compliance bores. Drawdown was predicted in the æOlympic Dam Environmental Impact StudyÆ (Kinhill, 1997); however, pumping at higher volumes may have the potential for increased drawdown resulting in a trend towards the compliance limits. In recent years increased usage of water in the Concentrator and Hydromet sections of the Processing Plant has caused excess process water reporting to the Tailings Retention System (TRS). This has resulted in excessive amounts of liquor ponding on the tailings cells with a potential impact being contamination due to seepage of liquor to groundwater. Effective management of water by the operation is necessary to both reduce GAB drawdown and reduce the amount of liquor on the tailings cells. A site working-group has been established to investigate and pursue opportunities to improve the water use efficiency of the operation. This paper will highlight the issue of water management at Olympic Dam and discuss the various options currently being investigated to improve management of this important resource.

Jan 1, 2006

By D Craw, J Pope

The Greenland Group, Westland, can be characterised with respect to environmental issues by the application of a GIS database (DAME), and specific sampling campaigns. Waters draining gold mineralised areas have a distinctive chemistry characterised by neutral pH and arsenic as a trace element. The acid neutralising capacity (ANC) from carbonates usually exceeds the maximum potential acidity (MPA) from sulphides resulting in circum-neutral pH. These waters are readily distinguishable from waters draining coal mine related areas, which commonly have low pH (~4) and low As concentrations (~0.1 ppm). In contrast, dissolved arsenic mobilised from Greenland Group historic gold mining areas is up to 2.4 ppm. This As mobilisation is controlled by the secondary As mineral, scorodite (FeAsO2+2H2O). Maximum dissolved As concentrations increase with increasing pH, corresponding to the increasing solubility of scorodite with increasing pH. Dissolved As is attenuated by dilution, precipitation of scorodite, and/or adsorption to iron oxyhydroxide (HFO). Adsorption to HFO is an important attenuation mechanism in and adjacent to many mine sites. HFO is abundant at mine sites where pyrite was abundant in fresh rock, such as where the mineralised zone is dominated by disseminated pyrite. Pyrite, and resulting HFO, are relatively rare where mineralisation occurred as well-defined quartz veins. Localised HFO occurs also where ankerite oxidises in host rocks. Arsenic output flux (ca. 25 g/day) from historic gold mine sites is commonly less than the natural background flux from mineralised rocks (>5000 g/day).

Jan 1, 2006

Increasingly, mineral operations need to manage water as a key business asset. Managing water solely as an environmental issue leaves a business exposed to social, cultural and economic risks associated with water. Adopting a company-wide strategic approach, which takes account of the true value of water will provide businesses with opportunities and risk protection. Rio Tinto has recognised the business imperative for water stewardship and has responded by producing the Rio Tinto Water Strategy. This strategy commits the company to managing water assets in a responsible manner, taking account of environmental, social and economic values. To incorporate the true value of water in site decision making, a new set of tools is required at the operational level. A key part of the strategy focuses on developing a framework to value water based on case study examples from around the Group. This paper presents progress on the companyÆs experiences in developing and implementing the water strategy.

Jan 1, 2006

By P Lindsay

A numerical model has been developed to simulate the effectiveness and costs of a number of conceptual remedial measures aimed at reducing acidity and metal concentrations in the Ngakawau River and its tributaries near the Stockton Coal Mine, situated on the West Coast of New Zealand. The Stockton Coal Mine has been in operation over the past 100 years. During that time, seepage from waste rock dumps has contributed to elevated acidity and metal concentrations in the Ngakawau River and some of its tributaries. The yearly mean rainfall at the mine site is 6000 mm. The model, developed using GoldSim software, simulates rainfall, run-off and stream discharge for 26 tributaries. It then calculates acidity and metal concentrations in the mine impacted tributaries and the dilution downstream from the mine. The model has been calibrated to measured flow and acidity and metal concentrations in the Ngakawau River and some of its tributaries. Acidity and metal loads are removed from the system in accordance with specified efficiencies and capacities of the respective conceptual remedial measures. The user can compare specific remedial measures, or a combination of conceptual remedial measures. The model predicts the acidity and metal concentrations at a number of monitoring stations for any remedial strategy selected by the user. It also calculates the capital and operational costs for that particular remedial strategy. This paper presents the development of the numerical model and describes how the end-user can use it to compare the efficiency and costs of various remedial strategies by running different æwhat ifÆ scenarios.

Jan 1, 2006

As part of the response to the increased demand for products such as iron ore, coal and gold many resource companies have identified the need to develop strategies focused on attracting high demand professionals and retaining current employees in the business. Recent graduates are entering a time where they can expect high starting salaries, attractive benefits and lifestyle options. At the same time high work expectations and large demands on both personal and professional development will also be the norm. Some of the challenges faced may include high demands on performance, working with limited resources, long hours, and tackling unfamiliar areas of work with little guidance. However, managing your career and these challenges effectively can give you valuable experience in a short amount of time. By offering situations from my relatively short, yet active, career in the mining industry during these boom times I will raise some key points on how to best leverage your commodity and make the most of a bullish market.

Jan 1, 2006