Search Documents

The following notes apply more especially to the purchase of silverlead ores produced in the neighbourhood of Zeehan and Dundas; for it is this class of ore that is principally mined in those parts, and which creates competition among the ore buyers.In the early days of this field, most of the ore passed through the hands of the first buyer who had sufficient enterprise to establish himself at Zeehan but in more recent times, competition has been so keen that there are generally three or four buyers tendering. lf the output was large this would not matter so much from the buyers' point of view but when we consider that the output of the field is only some 1,650 tons per month, and that of this 70 odd tons are produced by the Western and Montana mines, aud being sent home for realization, is withdrawn from local purchasers, there is really not enough for four buyers, especially at the present exorbitant prices they pay the miners.Some of the mines have a fixed sampling day, on which it is tacitly understood that the ore buyers will attend. Others, such as Grubb's Silver Mining Oompany, No-Liability, send round a printed reminder, stating the quantity of ore, and the date of sampling.

This paper discusses equipment replacement strategies and specifically addresses the upgrading of technologically superseded equipment. The process of equipment replacement evaluations is reviewed, and areas have been highlighted where currently accepted practice results in a bias towards retaining existing equipment longer than otherwise justified. The Discounted Average Cost Method is described and the advantages of the technique for this style of decision making discussed. Several key issues influencing the replacement evaluation are also presented together with examples from recent consulting work.

Jan 1, 1992

By Bowra N

Working capital is best described as money that must be supplied from a company's treasury to buy inventories for raw materials and finished products and to provide credit to customers who have not yet paid for delivered products. Working Capital requirements for resource projects are to a large extent, dependent on specific characteristics of the projects concerned. Important variables are the nature of the project and speed with which sales can be realised. The project's location is also important as this will influence inventory levels. Working capital requirements have a time profile, the present value of which can represent a significant portion of a projects overall capital needs. A significant component of a project's working capital is not readily recoverable or able to be reassigned should the project fail or be deferred.

Jan 1, 1986

This brief overview of the history of Brown Coal mining in Victoria is a luncheon presentation -I do not intend to make it indigestible with extensive listings of resources or production. There is a vast pantry of collated historical records and of vari- ous predictive studies available for the enquired with a hearty digestion. A gourmet collation is provided in The Aus IMM Monograph No 11 published in 1984 entitled "Victoria's Brown Coal-A HUGE FORTUNE IN CHANCERY", currently still on offer by the Institute and available at a bargain price in the foyer at this conference. Monograph No 11 also provides a feast of excellent references on the theme of Victorian Brown Coal assembled by the several contributors. In contrast, my presentation paper is a fast-food service, extracts from the printed paper only-you have no choice-you "get what you get" and in small quantity. I hope it will tantalise your appetite -like Oliver Twist you will ask for more. -Buy the Monograph!

Jan 1, 1989

In the early stages of opening up a mine, when there is some uncertainty as to its future career, necessitating caution in laying out works of a permanent character, the want is often felt of an assay furnace, easily built and easy of transportation, should the" mine " prove to be " no mine." Again, cases occur in which parties buy the right to treat comparatively small heaps of tailings, and then shift their plant to other localities. Under these circumstances it is necessary to restrict the plant to the barest necessaries, to suit, so to speak, the nomadic character of the work.An assay furnace that is really portable, easily transported, erected, taken down, of little weight, always ready for action on short notice, is indeed in these cases a desideratum which has long been wished for. The gasoline furnaces introduced intothe Australian market some time since practically fulfil these conditions; but they have the fatal drawback of being dependent on a constant supply of the liquid fuel, gasoline, which is seldom, if ever, obtainable locally in' any wayback mining township...

Jan 1, 1904

Newmont Waihi Operations is participating in the initiation of a community liaison forum in association with the local district council. The objective is to provide a forum for the free and regular exchange of ideas, concerns and information, and through improved communication seek to achieve a more comprehensive set of solutions to community, operating and closure issues associated with Martha Mine. A similar liaison forum has been operated on two previous occasions during earlier phases of the present mine's operation. This paper deals with the practical aspects of setting up a liaison forum to act as an effective conduit between regulators, mine operators, local businesses and the community. The mechanisms and procedures for identifying community issues and concerns are dealt with. The actions and structures required to ensure effective ongoing community 'buy in' at all levels are discussed. Corporate philosophies are addressed. Specific examples from Martha Mine, Waihi New Zealand will be used to illustrate the paper. This will include a brief explanation of previous and current community issues, Newmont Waihi's operations both at Martha Mine and the proposed Favona underground mine, and the practical issues involved in setting up a liaison forum.

Jan 1, 2003

By L Boczek

The term Engineer of Record (EoR) is commonly used in North America and South Africa to define the responsible person for the design, construction and operational phases of a tailings storage facility (TSF). Recently, this role has been elevated in prominence within Australia, but what does it really mean? Recent updates to international TSF guidelines suggests appointing an EoR is good practice, but where does the responsibilities of the EoR start and finish. Interestingly, both Samarco and Mount Polley failures had active EoR’s in place. This suggests that nominating an EoR alone, is not the full answer to mitigating the potential for a TSF failure. Appropriate construction and operational practices are key to the success of the design of TSFs, where all too often, operators ignore the operating plans developed by the designer. To be successful, a key consideration of the EoR role, is involvement in the operational phase of the TSF. This requires ‘buy-in’ from the mine managers and a change in the way TSFs are perceived by site. This paper explores how the roles and responsibilities of the EoR can assist in improving governance of TSFs if implemented effectively and what role the client has to ensure the success of the EoR.

Jul 1, 2021

'Nothing happens until something is sold' This statement is not original - it is a necessary orientation for marketing industrial minerals. The most important single philosophy of marketing is that it recognises the consumer as the starting point. Production orientation is concerned with producing products that the customer might buy. Market orientation is concerned with finding the needs of the customer and how they can be satisfied. The difference between the two approaches can be recognised in company structures but the most tangible difference is in the approach by a company to selling and development. In other words, it is the market that decides what can be done with a mineral. The markets requirements dictate what mineral, what grade and what price will be paid. Therefore it follows that when pricing a product we should avoid taking the basic cost and arriving at a final selling price through a series of standard markups (unless government insists on it). We should start with the price the market can stand and work backwards to find out whether you have a profitable product or one that will fail because it is too dear. Naturally a thorough understanding of production costs is necessary particularly when marginal markets are concerned.

Jan 1, 1978

The mining industry is the largest source of foreign income for South Africa. It is also the main source of employment in the country and, as an industry; it is also one of the largest. Due to the labour-intensive nature of the industry, labour costs in South African mines make up nearly 50 per cent of the total mine cost. It is thus imperative to have optimum labour planning and labour management systems in place.The focus of this study was to investigate current underground labour-planning models. It is shown that there are serious limitations. The range between an oversupply and undersupply of labour can be as high as ten per cent. A new system was therefore developed to ensure a constant labour demand and supply on a daily basis. One of the main objectives was to determine the existing labour supply range and thus the requirements to fill the undersupply. For this purpose, a specific methodology was designed to capture and process all the relevant information. Mine personnel was involved throughout the entire process to ensure ownership of the new model. This buy-in was achieved through planning workshops, interactive presentations and discussions. The improved frequency of daily blasts validated the new system by providing the correct amount and mix of the labour force. The new labour-planning model was then extended to optimise revenue. Implementation on a mine resulted in increased income of R95 million.

Dec 6, 2010

By I R. Souza

At the mining industry, there are several uncertainties that may affect the mobile mining equipment fleet sizing and usage, such as commodity supply and demand, which impacts the mineral price, environmental licenses to allow operations and strategic decisions made by the own mining company. Due to that, it may happen to acquire a mobile mining equipment for a specific site and before it finishes the entire forecasted life cycle, the machine gets idle on that operation and a decision must be made regarding this matter. On large mining companies with several sites, equipment transfer provides a good solution to solve this issue and at the same time it provides operational flexibility and allows to use the equipment until the initially planned working hours. This article presents a method to compare technically and financially whether it’s more feasible to transfer a used equipment or to buy a new one. In other words, we will compare a brand-new machine versus a used one in terms of safety, net present value (NPV) considering both capital expenditures (CAPEX) and operational expenditures (OPEX), technological obsolescence, risks, equipment maintenance reliability and lead times. Although it’s not the main purpose of the paper, it will also be briefly discussed the importance of having a considerable amount of backup equipment to handle low likelihood and high consequence risks that may materialise. This backup equipment portfolio is particularly important to avoid loss of sales and profits in case the production plan changes and it demands further equipment than initially planned to cope with the forecasted production.

Nov 8, 2021

By Dodd SF

Valuation of mining companies and their underlying assets prepared by brokers' analysts are, by necessity, approximations. The reliability of the valuations is entirely proportional to the quality of available data, the reliability of forecasts and the nature of underlying commodity price assumptions. The latter is perhaps the greatest single cause of gross variations in company and asset earnings estimates and- valuations. Assumptions are often necessary regarding commodity price achievement based on commodity hedge positions. Public disclosure from listed companies provides a sound base from which to project earnings, cashflows and balance sheets. The uncommon disclosure of projected production and cost schedules often reduces the reliability of future estimates. The application of reserve and resource estimates is contentious with practitioners applying differing weightings to importance of resources in estimating mine lives (and therefore cashflow streams). Valuation methods applied in equity markets usually focus on relative value and the identification of pricing anomalies. The commonest ""rules of thumb"" applied in the valuation of mining companies (and therefore their underlying assets) is with the use of year specific price/earnings (P/E) and price/cashflow (P/CF) ratios, with low multiples suggesting undervalued assets, high multiples overvalued situations (but these rules can often be clouded by market expectations of underlying commodity price movements). Another simply applied valuation tool is to examine the examine the value placed on reserves and resources by the market. Inexpensive gold in the ground (expressed as $ of market capitalisation per ounce of reserves or resources) might indicate a buying opportunity, but the market does discount the value of gold in the ground prior to mine development and where development risk is perceived.

Jan 1, 1994

By A Stasi, B Brice

Water is a limited and precious resource in Australia. Because of the increasing demand for water from all sectors of the economy and the variability in supply, efficient management of water resources is of vital importance. The national water reform agenda has provided a strong impetus to all states and territories to progressively move towards more efficient and sustainable water management. The Queensland Water Act 2000 is the legislative framework for providing water for the environment and for planning for the security of supply to water users. The comprehensive water planning process prescribed in the Act results in new tradeable water allocations that are separate from land. These water allocations are well specified and can be traded on a permanent or temporary basis. Trading of water allows it to move to its highest value use, thereby encouraging the most efficient distribution of this limited resource. In addition to transferring ownership of water allocations, it is also possible to change the attributes of the allocation, such as the location from which water may be taken. Changes to water allocations are subject to approval from the resource manager. Pre-testing allows for certain changes to be approved very quickly, making the trading process more streamlined and cost effective. Temporary trades, or seasonal water assignments, currently account for the majority of water trades in Queensland. However, permanent trading activity is expanding steadily as old water entitlements are converted to tradeable water allocations and as the market matures. The permanent trading market provides significant opportunities to the mining sector. It allows mining companies to buy water allocations at market prices without compromising environmental outcomes or causing third party impacts.

Jan 1, 2006

By Weyer J

Many existing computer planning programs for the mining industry focus either on big mining enterprises with a high production rate or on smaller operations for high value minerals. Big mining enterprises, like the hardcoal company `Ruhrkohle AG' in Germany have their own R&D departments which develop powerful computer programs for planning purposes, partly in co-operation with mining universities. However, there is a remarkable number of small- scale mining operations which are either not able to buy expensive hard- and software or don't have the skills for the operation of extensive software programs. Partly there is also a trend in using rule of thumb calculations rather than computer programs which need a lot of - partly unavailable - data. For this reason a computer program was developed which does not need expensive hardware and software and which can help the planning engineer in the selection of a limited number of possibilities. Until this time the planning engineer established two or three different cases and calculated the results with a pocket calculator. This could last some hours or even some days. Now he or she can use the computer program with a normal PC to compare the cases. All activities are menu-driven. The basis for all, calculations are fixed and variable costs as well as average performance for special activities. The paper gives an example for a possible planning situation in fluorspar mining (originally this program was developed for the fluorspar enterprise Lengenfeld in Germany). It shows the initial situation, the main structure of the program, the input logic and the results. Benefits, limits and possible extensions of the program are discussed.

Jan 1, 1995

In 1556, Agricola noted that "a prudent owner, before he buys shares, ought to go to the mine and carefully examine the nature of the vein, for it is very important that he should be on his guard lest fraudulent sellers of shares should deceive him"(1). In today's world, the owner rarely has the opportunity to visit the mine and, instead of reading about the `nature of the vein' in annual reports, prospectuses, government publications, et cetera he sees the words `reserves' and `resources'. Unfortunately, the subject of reserves and resources has become increasingly complex and Canadians, along with their counterparts in Australia and elsewhere, are still struggling with definitions which will attempt to cover all conceivable circumstances from national or regional resource endowment to the material to be extracted next week from a given stope or open pit bench. The providers and recipients of reserve and resource data are: - Government agencies who are concerned with questions of national endowment, strategic use of raw materials and other questions of public policy. - Stockholders who have a vested interest in the basic assets of their companies. - Financiers who are concerned about the security of their loans. - Regulatory bodies whose function is to protect a frequently naive investor from unscrupulous practices. - Management, at head office and on-site, who need basic information for decision-making, whether it be to open up a new mine, expand or close an existing operation, acquire or merge with other entities, or, more mundanely, for routine mine planning. To satisfy their demands with unanimously accepted definitions is a formidable task but, it is my impression that, little by little, a concensus appears to be growing within the industry.

Jan 1, 1987

By D Thornton, B Smith, S Demey

Mine to Mill (MTM) optimisation, a total systems approach to the reduction of energy and cost in mining and mineral processing operations, is well-established technology. However, successful applications of MTM optimisation have been largely confined to gold, copper and lead/zinc semi autogenous grinding (SAG) operations, where the goals of tweaking the blast design to increase fines and hence throughput through the mill have been relatively easy to meet. The application of MTM optimisation in a more demanding environment, like that of a multi-stage crushing and screening aggregate operation, was conceived as part of a Department of Energy (DOE) initiative in 2004, aiming to reduce the energy consumption in the US aggregates industry. Two quarries operated by the Luck Stone Corporation of Richmond, Virginia, were selected for the demonstration sites. Dealing with ore variability and a requirement to maintain a fixed feed size distribution to the tertiary plant, whilst still aiming to increase yields of saleable products, presented some unique challenges. Despite these variables, the implementation of the MTM approach at Luck StoneÆs aggregate plant in Pittsboro, North Carolina, has led to a tangible improvement in productivity, particularly in the primary and secondary plants. The successful outcome was dependent upon several key factors, including reliable blasting and processing models, careful analysis of the rock conditions and plant configuration, understanding and buy-in from the Luck Stone operations staff, excellent collaboration with Virginia Tech staff and students, and long-term monitoring made possible through comprehensive PLC logging. This paper presents a review of the work conducted at the Pittsboro quarry and highlights the key reasons behind the successful implementation of the MTM approach in a complex plant environment.

Jan 1, 2007

The following data are put together to assist those who are responsible for ordering stores for mines and works. When making out a list of mine stores for a new plant, one can hardly be expected to remember everything, still it is all the more important that articles should not be forgotten, should the mine be situated in an out of the way place, where the manager has to look several weeks ahead. A man who has been accustomed to buy stores on a small scale, from local merchants, where he could pick out personally what he wanted, may suddenly find himself in a place where he has to order wholesale quantities or make out store lists to send contractors for quotations. As it is of course cheaper to purchase stores by the hundredweight, coil, barrel, etc as the case may be, in which they are made up, than to break such a parcel, the way in which the materials are placed on the market is mentioned, so that those who don't know may take full advantage of wholesale terms. The most frequent sizes and brands employed in connection with Australian mining are also mentioned. It would be useless to enumerate all sizes made by the trade, as many would be of no value for our purpose; still I have put down what will serve as a reminder to the manager to mention what size he requires when giving an order, such as the diameter of dynamite cartridges a slight neglect of this sort has often caused serious delay. By mentioning certain brands I do not wish to recommend them in preference to others inadvertently omitted they are simply mentioned as some of those frequently met with.

By S W. Richards, J Buys

"An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation. Magmatic arcs are prime targets for porphyry- and epithermal-style mineral deposits, although settings within continental arcs and/or tectonically-thickened crust generally tend to be more prospective than intra-oceanic arcs in extensional settings. In this paper, we report new geochemical and geochronological data on igneous rocks of the Western Belt of the Vanuatu intra-oceanic arc. Dating of igneous hornblende (Ar-Ar) and zircon (U-Pb) from the igneous rocks place their formation in the late Eocene to Miocene. In most respects, these are typical arc igneous rocks. However, they contain inherited zircon grains with significant age populations at ca 2.8–2.5 Ga, 2.0–1.8 Ga, 1.75–1.5 Ga, 850–700 Ma, 530–430 Ma and 330–220 Ma. This inheritance signature is unlike anything recognised from the oceanic realm of the south-west Pacific, but, in general, does match the age of the major crustal blocks of the Australian continent. An exception is the significant proportion (~20 per cent) of zircons of Rodinia breakup age (~800 Ma), which previously has not been found in eastern Australia or the south-west Pacific.We propose that part of the Vanuatu arc basement comprises a ribbon of continental material rifted from northern Australia prior to, or during, the Cretaceous. The presence of ancient continental material within the Vanuatu island arc may help reconcile the relatively large thickness and low density of the crust of Vanuatu, and may enhance the prospects for significant porphyry and epithermal ore deposits in the region.CITATION:Spandler, C, Buys, J, Holm, R J and Richards, S W, 2015. Remnants of ancient Australia in Vanuatu – implications for south-west Pacific tectonics and mineralisation potential, in Proceedings PACRIM 2015 Congress, pp 183–188 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 18, 2015

By G Kirk

Definition and delineation of in-pit ore and waste material are the most significant tasks for an open pit production geologist; adding or destroying value in the mining value chain. Anglo American’s Mogalakwena Platinum mine, an open pit operation in South Africa moving 100 Mt/a, has recognised the value of improved material definition and is in the process of changing from blasthole to reverse circulation (RC) sampling for in-pit grade control. This is aimed at obtaining more representative samples, which are required to maximise ore recovery, minimise waste dilution and to increase the accuracy and confidence of production forecasts. Early in the project, it was realised that the key risks for implementing RC grade control were related to change management processes, rather than failure of technology. Recognising the importance of this issue, Mogalakwena chose an integrated implementation approach that incorporates all stakeholders of the mining cycle in order to develop a process that delivers maximum value and is sustainable within an active mining environment. The following core goals were addressed over five phases of project implementation: extensive definition and design of integrated project implementation, comprising: project buy-in and ownership from all key stakeholders, including survey, geology, mine planning, drill and blast, load and haul, maintenance, supply chain and finance; and detailed analysis of all potential issues and possible solutions, allocated to stakeholders as part of the scoping process; optimising hole patterns and drilling procedures, focusing on delivering maximum value for minimum cost using multiple scenario analysis from borehole data and operational sequencing requirements; and evaluation of lessons learnt during project implementation in order to optimise the technical solution and operational efficiencies. Although this project is not yet finalised, Mogalakwena Platinum Mine is already providing a blueprint for the effective development, implementation and optimisation of sustainable in-pit grade control RC drilling for other open pit mines within Anglo American plc.

Aug 22, 2011

By S Hanrahan, S McLaughlin

A case study is presented that details the safety journey at a North American project involving two major contracts: a 1000 m shaft recovery and rehabilitation, and the development of a drainage gallery in a large open pit operation. In the early stages of the contracts, there were a number of incidents that created tension between the owner and contractor, which resulted in the contractor being placed on a final warning with almost imminent potential termination. As a result of this, it was agreed to initiate a focused safety recovery plan as a ‘last chance’.Over a period of two years, the engagement and consequent performance of the contractor was turned around, steadily working to set it up for success such that in one of the contract work areas, a record of ‘one year LTI (lost time injury) free’ was achieved. The journey involved the owner and the contractor teams working cohesively to educate all parties in the safety requirements and, most importantly, providing the context and understanding for certain requirements being put in place. Early on in the process, it was recognised that the owner team unknowingly was an impediment in that they did not fully understand the safety requirements and so was not able to lead the way for the contractor effectively. The journey to rectify the situation was supported and followed up by focused engagement with the project team, which generated a progressive improvement in a very challenging environment.In particular, the contractor turnaround was significant and of enough value for the contractor to ultimately export some of the safety systems from this site to other contract sites. This demonstrated the ultimate benefit of the contractor understanding and buying into a safety culture and system.CITATION:Hanrahan, S and McLaughlin, S, 2016. Winning the safety battle, in Proceedings International Mine Management Conference, pp 181-186 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By D Laurence

Mining cycles have come and gone and with them there have been dramatic swings in the levels of interest and student entry into minerals-related education programs, hence graduate supply to the industry. So what is the problem? These trends will keep happening and the industry will keep on keeping on – or will it?This paper discusses recent trends in Australian minerals education programs and some international examples, together with some of the more recent initiatives taken by both the minerals education sector and the industry, such as the Minerals Tertiary Education Council (MTEC) and MEA. The real problem is that things will not just keep going the way they have over recent decades – there will come a time when there is no longer a supply of minerals academics available to provide the educational programs; and universities will simply shut down subcritical mass mining programs and invest in the much more lucrative programs such as commerce, law, medicine, etc. By the time this starts to happen it will be at least ten years too late for any last-minute reactive response by industry, if they were to try and avert such a consequence. International experience with mining programs bears out this scenario quite clearly.It is therefore timely for industry individual mines and mine management to take a much more strategic look at their role in the education sector. Sustainable mining also means sustainable minerals education – without one, the other will not function over the long-term. There is a pressing need for long-term strategic buy-in by industry into the education sector – not just for the good times, but also through the tough times. This means much more than a scholarship here or there, but includes such commitments as major industry-university research partnerships; collaborative recruitment initiatives and much more. The paper will discuss a range of such issues, problems and opportunities to address these important issues through strategic, comprehensive, long-term commitments by industry and equally significant and appropriate responses by the education sector. We care – do you?

Mar 21, 2011