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It is often assumed that geotechnical investigations or studies for open pit mines are confined to providing a slope design. However in an operating mine, the design is only one component of a mine geotechnical program. Reviews of slope designs are ongoing throughout the mine life. The concept of Pit Slope Management has been formulated because the design only entails one component of a total program that contributes to a safe, efficient mining operation. Risk is a normal part of mining. Effective management allows the risk to be contained or controlled. If the slopes are not effectively managed there will be increased risk for the operation. Experience has shown that utilisation of Pit Slope Management coupled with a broad base of experience to define the key controls on stability, provides a pro-active, objective approach. The reasoning is deductive and relies on the behaviour of the ærocksÆ. Once the key aspects are defined, studies are well focused, implemented as required and the risks can be effectively managed. When the key controls on stability are poorly understood reasoning is typically more ægut feelÆ. Under such circumstances studies, if carried out, may meet short-term objectives but often ignore the long-term objectives. Hence the risk to the project is greatly increased. This paper presents several case studies highlighting the above aspects and present elements of the Pit Slope Management Program approach which have been successfully utilised by the author to manage risk in mining projects.

Jan 1, 2003

The Kelian gold mine which was developed in East Kalimantan Indonesia in 1990 - 1992 is scheduled to complete mining and processing operations in 2004. This will have a major impact on the neighbouring communities who have benefited from the jobs, economic activity and infrastructure development which has been generated by the mine. Currently, there are no formal regulations or standards specifying the procedures for relinquishment of mining leases in Indonesia. Furthermore, a move towards regional autonomy, providing greater authority and responsibility to local (regional) areas, has recently been implemented in Indonesia and limited capacity exists in the new regional governments. Consequently, in October 2000, Kelian Equatorial Mining (KEM) initiated a partnership with the local community and government to explore sustainable post-closure options for the mine site and community development programs. The Kelian mine closure strategy seeks full involvement of all stakeholders through the Kelian Mine Closure Steering Committee (MCSC) in the development of sustainable solutions which will enable communities to secure long-term benefits and minimise post-closure risks from the KEM operations. This organisation, jointly chaired by the Head (Bupati) of the regional West Kutai government and the KEM President Director, with representatives from the local communities, governments and NGOs, has developed a Charter, a website and evaluation criteria to ensure accountability and transparency. There are four technical working groups, consisting of representatives from the mine, local community leaders, NGOs, Universities, Local, Provincial and Central Government Departments, which report to the Steering Committee. These working groups have researched, developed and recommended sustainable options to the Steering Committee. The MCSC has met quarterly to examine options in accordance with the criteria set out in the Charter and has endorsed sustainable solutions which have support from Government, Community and the mine. This paper describes the closure risks, sustainable outcomes derived through the Kelian mine closure steering committee process and outlines the methodologies used to develop and endorse sustainable solutions in a society with limited capacity undergoing enormous change and uncertainty.

Jan 1, 2003

The quality of the external water source for a mineral processing plant may influence the extent to which the environmentally desirable practice of recycling of water from plant products is possible. This is particularly likely for froth flotation plants where the chemical quality of the water may affect the plantÆs performance. The quality of the external water source or the recycled water can be improved by a water treatment step, and in turn the extent of recycling which can be tolerated is able to be influenced. The quality of the external water can range from very high quality, soft water derived from melting snow, to poor quality, hard water (high levels of dissolved calcium and magnesium) from underground aquifers, and to even lower quality sea water (very high levels of dissolved species including sodium chloride). It can be noted that some underground water is more saline than ocean water as well as containing high levels of dissolved calcium and magnesium. Occasionally, a different source of water is utilised in the wet and the dry seasons. Increasingly, sewage water from cities is becoming a potential external water source with sustainability implications. If the initial quality of the external water is high, the scope for recycling of water from all the products is maximised. Such reuse or recycling of water from the products allows chemical species from oxidation of the ore and from other inputs to the process such as reagents to increase in concentration in the water returned to the plant. Such accumulation of species can have negative effects on the performance of a process such as froth flotation but instances of positive effects exist. Some reagents which are used in flotation plants such as lime or sodium carbonate also happen to be commonly used for independent water treatment plants. Hence, the flotation process may inadvertently provide some aspects of water processing. Where the quality of the water in the feed to a mineral processing plant (external water plus recycled water) is not an issue, more powerful solid-liquid separation processes can be considered to maximise the removal of water from the products and its reuse. Such processes may also have complementary benefits in a sustainable mineral industry by, for example, producing a tailing stream with a higher per cent solid value which is more suitable for safe storage on the surface or underground. This paper documents findings on the effect of water quality on the flotation process. It also considers current directions of change in the need for increased removal of water from plant products. It then considers the implications of these trends for maximisation of water recycling by such operations.

Jan 1, 2003

By G Solly, P J. Leevers

Day-to-day operating practices at existing operations need provide high quality data for decisions that will impact directly on the potential value of the available resource, in addition to meeting standards of quality expected of data used in feasibility studies that will be completed to obtain additional capital required to finance operational improvements. Drill hole location, down hole survey and assay data standards of accuracy and precision have received considerable attention in recent years. The authors propose that geological descriptions of both cored and non-cored drilling warrant at least equal attention, considering their fundamental role in establishing the framework used for geological modeling and resource estimation. The iron ore deposits of the Middleback Ranges have been a major source of iron ore for almost a century. High-grade hematite-dominant ore is currently mined by OneSteel from three open pit operations supplying ore to the companyÆs integrated steelworks at Whyalla. A review of OneSteelÆs future iron ore resources, commenced in 2002, highlighted the need for more flexible and comprehensive management of all forms of geological data used in resource evaluation. Driving this program was the information needs of feasibility studies of the Iron Magnet deposit, located beneath the existing Iron Duke and Iron Duchess mines. Prior to the beginning of 2003, resource evaluation drilling data collected by OneSteel was managed using an in-house system based on industry standard relational database software. The system was demonstrably effective in ensuring the fundamental integrity of basic drilling data, but lacked necessary capabilities for the acquisition and management of geological descriptions, geotechnical and geophysical data obtained by down-hole logging. OneSteelÆs existing system for the management and interpretation of geological descriptions was restricted to storage of a single three digit code for each lithological description interval. The original logs for a large number of older drill holes could not be located, having been either poorly archived or culled from the database in the belief that they did not contribute to the understanding of the resources currently being mined. The three digit codes represented a combination of lithological and stratigraphic descriptions, including many subtle variations in iron ore colour and texture believed to be associated with variations in geochemistry, but subsequently demonstrated to be either incorrect or inconsistently applied. This resulted in the establishment of a plethora of codes for a relatively small number of distinct lithologies. Improvements implemented by OneSteel geologists addressed these shortcomings by ensuring the new data management system: facilitated the objective description of lithological characteristics; distinguished between obsevations and interpretations (eg lithology versus stratigraphy); promoted consistency between descriptions provided by different geologists; and helped to ensure data integrity by developing an audit trail for alterations made to data subsequent to its acquisition. The data used to develop interpretations of mineralisation distribution and characteristics are fundamental to the effective utilisation of a mineral resource: any mineÆs most important asset. Resource related risk is widely recognised as the principal source of technical risks affecting resource development projects, whether they are new mines or expansions of existing operations. A key lesson from this work is that most commercial or æin-houseÆ developed geological data management systems are able to handle basic data validation tasks effectively. Geologists, however, need to ensure that the data management system is appropriately structured to help promote the acquisition of objective and consistent data for interpretation.

Jan 1, 2003

By A E. Annels, M D. Raine, I M. Platten

Lode-gold systems are often characterised by a high to extreme nugget effect (>50 per cent), and the presence of coarse gold particles (>100 ¦m in size). They rank amongst the most difficult of ore deposits types, in terms of producing an accurate and precise resource estimate. Their effective sampling is generally difficult because of the relatively low concentrations involved and erratic nature of the gold particles. Grade continuity is usually less consistent than gross geological continuity, and is typified by the localisation of grades within discrete oreshoots. In most cases drilling, particularly diamond drilling is an effective measure of global geological continuity, whereas grade can only be reliably resolved from underground development. Depending upon drill density and geology, it is unlikely that anything above an Inferred Mineral Resource can be estimated from surface drilling alone. Underground development, in-fill drilling and, potentially, bulk sampling or trial mining will be required to delineate Indicated and Measured Mineral Resources and subsequent Ore Reserves. Grade estimation will have to account for highly skewed and often multi-modal populations, extreme values, a high nugget effect and low geostatistical ranges. A clear geological model that honours both geological and grade continuity must drive the resource estimation process.

Jan 1, 2003

By B McCreath

Industrial process water for the Commodore Coal Mine and the adjoining Millmerran Power Station is provided by pumping secondary treated sewage effluent 100 km from the Wetalla Sewage Treatment Plant near Toowoomba. (A separate source is used for potable water.) The effluent is not of sufficient quality for discharge to a watercourse, but it is suitable, with further treatment, for the mine and power station. In designing and constructing the pipeline, special emphasis was placed on preventing accidental spills or planned releases to the environment. The pipeline and associated works can transfer 1000 ML/annum for reuse in the coal mine and power station.

Jan 1, 2003

By C M. Hall

We report 40Ar/39Ar ages for adularia and illite from veins and wall rocks at the Waihi and Favona deposits, in the Waihi district. One sample of vein adularia from the Favona deposit yielded a plateau age of 6.04 ¦ 0.06 (la) Ma, and two samples of vein adularia from the Waihi deposit yielded plateau ages of 6.17 ¦ 0.03 and 6.17 ¦ 0.09 Ma. Two samples of wall rock adularia from the Waihi deposit yielded plateau ages of 6.07 ¦ 0.06 and 6.08 ¦ 0.03 Ma. Adularia ages overlap at the 2s level, and we do not consider them to be significantly different. Two samples of illite from wall rocks at Favona have total gas ages of 5.66 ¦ 0.04 and 5.65 ¦ 0.04 Ma, and retention ages of 6.57 ¦ 0.04 and 6.61 ¦ 0.04 Ma, whereas one sample of vein illite yielded a total gas age of 5.29 ¦ 0.17 Ma, and a retention age of 6.26 ¦ 0.19 Ma. The total gas ages of illite are minimum ages that are equivalent to conventional K/Ar analyses, whereas retention ages of illite are maximum ages. Although interpretation of the illite data is complicated, the adularia results strongly suggest that the Waihi and Favona deposits formed contemporaneously in the same fossil geothermal system at 6.0 to 6.1 Ma.

Jan 1, 2003

Managing project exposure and risk has numerous viewpoints, including those of engineers, owners, bankers and insurers. Fewer stakeholders are involved in early stages, though with wider risk management techniques and tools available. The costs and sometimes benefits of the occurrence of risk and uncertainty have different contingent outcomes for different stakeholders. For some, the impact of risk outcomes can be mitigated or managed. Some sectors and stakeholders can manage resources project risks more completely, by choice or by externally imposed forces, opportunities and constraints. The core to resources project risk management lies in the identification and analysis of project risks, the examination of project management risk options and alternatives, and the determination of which risks are able to be controlled, managed or laid off to third parties. Without prior risk identification and knowledge, the wildcard of previously unidentified or unconsidered project risk impact has the potential for fatal impact to one or more stakeholders. A range of case studies is reviewed, from exploration projects to development and operating projects, with relevant learning experiences, from the risk management lessons available from the oil and gas sector as well as the mining sector. For many cases, the emphasis focuses on the risk analysis modus operandi and on risk management and risk mitigation techniques that can be and in some cases have recently been implemented for resources project and related debt, capital markets and equity project fundings.

Jan 1, 2003

Groundwater issues for the mining industry are many and varied. When the depth of mining is below the water table/potentiometric surface, a groundwater æsinkÆ is created which alters the local groundwater flow regime resulting in minewater inflows. Assessment of mine dewatering, mine water balance and wastewater disposal requirements are central to the effective management of water in a mining operation. Each of these issues has a significant groundwater component. Other groundwater issues for mining operations include: water supply, aquifer storage and recovery, the impact on other groundwater users in respect of groundwater levels, bore yields and water quality, and the development of an effective groundwater monitoring network for early detection of impacts and to satisfy regulatory requirements. This paper outlines the techniques involved in assessing groundwater issues for project feasibility, during operation and post closure, and provides an overview of several mine dewatering and water disposal methods. The practical assessment of groundwater issues for the mining industry is illustrated with several case studies of mining projects in Australia, SE Asia and the subcontinent. These are projects to which the author has contributed during a career as a geologist/hydrogeologist spanning more than 25 years.

Jan 1, 2003

By I Kolomaznik

Each technological process can be reduced on the transport networks, and namely on the parametric networks and the non-parametric ones. The parametric networks are created by the piping, electrical cables or channels. The non-parametric network is created by the ways, suspended grooves, trackages and also by the belt conveyors or other conveyors for continuous material transport. If we reduce the technological process on transport networks, then, by the creation of these networks models and their mutual interconnection we obtain the model of the whole technological process. The model can be understood as the universal one, without exaggeration, because it is valid for any technological process. However, for us the mining production process is important what represents the mining and transport of raw materials under the support of the ensuring system. In this contribution one of the first attempt is described, and namely how to connect the parametric network which has been already worked out very properly with the non-parametric network what is presented in this contribution by the transport line of belt conveyors.

Jan 1, 2003

Politicians and economists talk glibly about the so-called knowledge revolution. The reality is that knowledge is fundamental to economic progress. Consequently there have been many technological revolutions. The global impacts of the invention of the steam engine and the development of the frozen meat industry are well known. Another less publicised technological advance occurred in Central Otago late in the nineteenth century. This was the adaptation of the bucketladder dredge to the mining of placer deposits. A product of over 30 years experimentation and innovation, New Zealand dredging technology was taken to the Risdon Iron and Locomotive Works, San Francisco by R H Postlethwaite, a Dunedin based mining engineer. New Zealand-style dredges built by Risdon operated successfully in California, Alaska and the Yukon. Californian engineers assimilated the best features of the New Zealand dredges with American (Bucyrus) designs to produce a standard for the worldwide placer mining industry.

Jan 1, 2003

By N Meyer

This paper presents a research project referring to the stability of submerged walls of open pit mines and the actual state of development. Obviously the slope stability analysis is always a rather complex problem, because it is difficult to reduce the problem to a design scheme and to define the available in situ soil strength. Especially the design of submerged slopes represents a problem. The state-of-the-art slope stability analysis is based on a simplified modelling of slope failure and soil behaviour and with this predicted stable slope inclinations of sand slopes below water-table are less then half the angle of internal friction. Slope angles calculated like that canÆt satisfy the mining companies. One of the problems that have to be solved is the reliable determination of the long-term stability of non-cohesive, submerged slopes, which is not only dependant on geotechnical and hydrogeological parameters of the subsoil, but is also significantly influenced by how the slopes are made. The research project points at the relations between mining and geotechnical engineering with the main aim to find a more suitable stability analysis which takes both soil behaviour and mining influences into account.

Jan 1, 2003

By D Craw

Previous studies of alluvial gold in Otago and Southland placer deposits have suggested a gold-mercury association for some deposits derived from Caples Terrane schist, whereas alluvial deposits on Torlesse Terrane basement typically have no mercury. A regional study of gold from Otago Schist vein deposits from both Caples and Torlesse Terranes has revealed the presence of both Au-Ag and Au-Ag-Hg alloys in both terranes. Au-Ag alloy (3 - 4 wt per cent Ag) is typical for gold found in most Torlesse vein deposits, and Au-Ag-Hg alloy (3 - 8 wt per cent Ag, 2 - 8 wt per cent Hg) is found in many Caples vein deposits. Au-Ag-Hg alloys are not exclusive to the Caples Terrane, however, as Au-Ag-Hg alloys with up to 4 wt per cent Hg are found in vein material from the Torlesse-hosted, HydeMacraes Shear Zone. In addition, not all Caples-hosted deposits have a gold-mercury association; gold grains from the Carrick and Invincible gold fields have no detectable mercury. The present study characterises gold compositions from various hard-rock vein deposits and has potential for determining placer-source relationships.

Jan 1, 2003

By N Currey, G W. Wilson, P Ritchie

Kidston Gold Mine in Queensland, Australia has a 310 ha tailings impoundment that has undergone final closure rehabilitation. Kidston Gold Mine evaluated their closure options for this low acid generating tailings impoundment, and due to a lack of cover soils and the cost of importing material, the mine decided to investigate the possibility of direct vegetation onto the tailings impoundment surface. The mine subsequently embarked upon a well planned and detailed research program to determine the feasibility and sustainability of this closure option. The research program included vegetation trials, toxicology studies for metal uptake by vegetation, as well as a comprehensive closure water balance model for the tailings impoundment complex. This paper describes the results of the long-term closure water balance for the tailings impoundment complex for the pre-closure state of the impoundment, as well as predictions towards the impoundment performance once final rehabilitation of the tailings impoundment complex has been achieved. The water balance presented is unique in that it is founded on unsaturated flow principles and accounts in full the impacts of the surface flux boundary conditions. This novel approach enables the prediction of actual infiltration rates into the tailings impoundment surface, which in turn allows for the calculation of how much seepage will exit from the tailings dam toe drains.

Jan 1, 2003

By C Gypton

This paper gives some insights into what to look for when reviewing feasibility studies. The review by a third party is an important element of the risk management process and may be the last remaining opportunity to uncover errors, or identify and reduce project risks on paper before they are converted to financial disappointments, steel and concrete monuments to process failures or cost overruns. The mining industry has had a spotty record in the area of estimating initial capital costs and operational performance, even though the standard of feasibility studies is generally acknowledged to have improved in the last decades. Third party reviews rarely have the luxury of enough time and unlimited funds, so where should the reviewers focus their efforts to be most effective? Assuming that the project already apparently meets investment criteria, the authors suggest where and how to look among fundamental project parameters for signs that serious flaws exist that have the potential to become project killers. We also give advice on how to review cost estimates without becoming lost in the details. The paper is supported with numerous actual examples.

Jan 1, 2003

By S J. Woods

As a part of Solid Energy's progressive rehabilitation of the Stockton Mine, it was determined that significant rehabilitation of the existing Mt Frederick Sidecast would be required to ensure the long-term stability of the sidecast. The goal of this rehabilitation is to reshape the existing stockpile into a more stable slope configuration, and the construction of a comprehensive stormwater collection and discharge system. The reconfigured slopes will facilitate the final revegetation of the exposed surfaces and the management of surface and groundwater discharges from the area. This paper briefly describes the specific details of the project and the significance of seismic conditions on the long-term stability of the reconfigured stockpile.

Jan 1, 2003

By L Smith, R Beckie

An intermediate scale (8 m + 8 m + 5 m high) constructed waste rock pile experiment was built upon a contiguous grid of 16 gravity drainage lysimeters to investigate the flow of water in unsaturated waste rock. Average net infiltration to the uncovered waste rock pile is 55 per cent of precipitation. Large rainfall events have net infiltration of 55 per cent to 85 per cent. Net infiltration estimates range from 23 to 120 per cent of precipitation between lysimeters. Small-scale lysimeters of less than 4 m2 area are shown to be poor predictors of net infiltration for uncovered waste rock. The appropriate size for lysimeters increases with increasing flow rate. The residence time distribution has an estimated median value of 3.0 to 3.9 years under average infiltration conditions. Water flows within the fine grained matrix, within larger pores (macropores), and in matrix free areas of the pile. In situ tracer concentrations vary between pore sizes, and between spatially distinct areas of the pile, indicating water geochemistry may also be variable. Water samples collected from in situ soil water samplers are dominated by the most mobile water fractions. In situ measurements of water content and matric suction are compared to the measured outflow. The data indicate the focusing of flow in spatially distinct areas can make in situ instrumentation a poor (non-conservative) predictor of volumetric water flow.

Jan 1, 2003

By R Smart

This paper examines the longer-term predictive capacity of the GAMSPATH computer program (developed by the Alberta Research Council) for a waste rock (sample MS) obtained from the Kaltim Prima Coal (KPC) mine, Kalimantan that contained significant framboidal pyrite. The model was refined by comparison with the net acid generation (NAG) and column leach tests to provide a basis for calibration of the model for both short term and longer-term reaction trends. The oxidation of pyrite during the kinetic NAG test using H2O2 provides oxygen directly at the mineral surface, generating a measured oxidation rate for pyrite of 1.16 + 10-6 mol m-2 s-1, whereas the oxygen diffusion limited rate in the leach column air equilibrated reaction was of the order 10-8 mol m-2 s-1 as calculated from the GAMSPATH thermodynamic database. Results indicated that the oxygen derived from hydrogen peroxide had to be included as a reactant (eg a reacting mineral) in the simulation to account for the direct availability of oxygen at the sulfide mineral surfaces. Optical investigations identified the proportion, particle size, and surface area, of framboidal and euhedral pyrite in sample MS. The reactive surface areas of the two morphologies were very different (eg ratio: 5:1). To manage these two different pyrite morphologies the GAMSPATH thermodynamic database was updated to include framboidal pyrite, with similar thermodynamic properties and oxidation rate to euhedral pyrite but with a particle size based on the size of the individual internal framboid microcrysts. This modification, with framboidal pyrite reaction based on the size of its microcrysts produced results that correlated well with the kinetic NAG and column leach test results when the measured (kinetic NAG test rate) and calculated (column test rate) pyrite oxidation rates were employed. This provided some confidence that the model could be extrapolated to indicate longer-term geochemical reaction trends.

Jan 1, 2003

Most mining projects will involve some level of financial markets price risk. This is because commodities are generally traded in $US. The project will also incur costs in $A and if based in Australia will seek to generate a return in Australian dollars. Therefore the project faces commodity, foreign exchange and interest rates risk. As a business you may wish to maintain these risks within your business. However if the project requires financing to be provided then the financiers will want to ensure that there is a level of certainty attached to the cash flows to support the debt repayments. This is achieved by hedging the financial market risks. Traditionally the hedging process has been based on underlying assumptions within project models, which incorporate views on the direction of the underlying price risk. These views can be formed in an ad hoc manner. Gathering information from a variety of sources including economic forecasting and modelling, technical analysis, seeking market expert views. However, given the historical accuracy of such forecasts locking into long-term fixed hedging arrangements can create an inflexible environment that can restrict the opportunity to benefit from the underlying volatility of financial markets.

Jan 1, 2003

By A Goldstone, M Fitzpatrick

Contemporary mine wastewater flows are subject to stringent water quality standards before discharge to local waterways. Strict criteria are often applied as a result of fears of extensive acid mine drainage; a feature of the many abandoned mine adits around the Coromandel, Central Otago, and the West Coast. In most cases the USEPA water quality criteria have been used to set treated wastewater discharge water quality standards. In future it is possible that the recently published ANZECC water quality criteria guidelines will be used for this purpose. The ANZECC guidelines also provide for the establishment of discharge criteria at specific sites, rather than accept the trigger values. The use of site-specific criteria for treated wastewater mine discharges was pioneered at the Golden Cross gold mine, near Waihi, in the late 1980s. The procedure used to derive water quality criteria was based on USEPA guidelines. In developing the Golden Cross criteria, only species that occur, or are similar to those that occur in the Waitekauri River were used. The mine commenced discharge of treated wastewater in 1991, and macroinvertebrate communities in the vicinity of the discharge point have been regularly monitored twice a year for the past 12 years. Despite fluctuations in community composition and abundance over that period, no permanent significant changes in the macroinvertebrate communities occurred between sites above and below the treated wastewater discharge. The success of the site-specific criteria at Golden Cross has shown how the application of this methodology can result in the protection of aquatic life while allowing for the discharge of treated mine wastewater.

Jan 1, 2003