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By B Mead, N D. Pascoe

The Grasberg block cave rail haulage system will be located in the Grasberg mining district on the island of Papua, Indonesia at an elevation of almost 3000 m above sea level. It will transport 160 000 t of ore per day from multiple chute galleries to the underground crushing systems. The design entails approximately 23 km of rail (ballasted and embedded track), over 120 ore chutes to deliver ore to the muck cars and three unloading stations to deliver ore to the crushers. The rail haulage system is a closed-loop system entirely within the underground mining complex.The GBC rail haulage project will be a substantial operation. Trains consist of 11–12 bottom-dump 20 m3 muck cars driven by a 40 t electric locomotive, about 400 t per trainload. Approximately 12 trains and one spare are required to maintain full production at 160 000 t/d. All rail installations will be 1435 mm (standard) gauge with AS60 steel.The rail system is designed to operate in full automated mode, including chute loading, hauling and dumping. The operation will be controlled from a surface control room.The rail haulage project has been divided into five stages, which will be brought online over the course of ten years. Current development and construction are focused on Stage 1 for initial production that will occur beginning in late 2017. This stage includes 24 chutes in three chute galleries, one unloading station, workshop areas and almost 7 km of track (3 km of embedded and 4 km of ballast).This paper describes the key components of the rail haulage system and reports on the current status of development and construction of the system. This paper also overviews the challenges, successes, issues and risks of this project in areas such as scheduling, development, construction and operation.CITATION:Pascoe, N D, Mead, B and Vega, H, 2016. Grasberg block cave haulage project – design and construction update, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 585–598 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

Don Hausen was a pioneer in the field of quantitative mineralogy. Methodology that he developed at Newmont almost 40 years ago is still employed today, only the technology has advanced. Petrographic methods were stressed with an emphasis on alteration, mineralisation and paragenesis. Methodologies employed by Don on the Carlin deposit were applied to developing the Carlin Trend by helping to work out lithology and structure, which ultimately led to the discovery of deep high-grade deposits. Quantitative methods used by Don on San Manuel, Copper Creek and Superior, Arizona were applied to the development of the Batu Hijau Deposit in Indonesia. Advancements in technology since DonÆs time have made the mineralogist much more efficient. Manual measurement of peak heights off of strip charts for semiquantitative XRD has been replaced by software that does Rietveld refinement and whole pattern fitting. Hand contouring of XRD data has been replaced by digitised data incorporated into geologic models. Optical point counting, which would take a dayÆs work to process 1000 points, has been replaced by automated SEM methods where 20 000 points are possible in an hour. The use of the optical microscope remains relatively unchanged, and still remains as Don emphasised the æeyesÆ of mineral exploration. However, the information can be relayed much more quickly with digital image capture and electronic data transfer. Don insisted on becoming involved in projects at the grassroots level and supporting the project through mine closure. This made the mineralogist a liaison between exploration geologists, mine geologists, metallurgists and mine engineers. The methodology that Don helped develop continues to provide invaluable support to Newmont geologists and metallurgists worldwide today.

Jan 1, 2008

By M Olsen

"Segregation of conveyor roadways is a ventilation practice that is being increasingly applied in Australia. It is largely driven by the legislated requirements in Queensland pertaining to separation of escapeways from the mine. This legal requirement was based on a recommendation from the Moura No. 2 WardenÆs Inquiry (Windridge, 1996) into the mine disaster that claimed 11 lives. The report recommended: ... the introduction of a requirement for all underground mines to have one intake airway that is completely segregated from other parallel intake airways so as to provide two separate means of egress from the mine via an intake airway.This recommendation seeks to assist mine workers in escape from a mine after a fire by providing them with an airway that is free from smoke or contaminants.The concept of an airway being æcompletely segregatedÆ is an ideal that is challenging to implement in practice when considering the effect of leakage. The practice of belt segregation is concerned with the potential for fires in the belt roadway although there are numerous other potential fire sources in underground coal mines. A review of segregation practices has been conducted applying ventilation engineering principles. Four different scenarios have been analysed with regard to the effectiveness of the segregation stoppings in preventing potential fire contaminants migrating to other parts of the mine. The results show that in some cases the benefits of segregation to a person evacuating a mine in the event of a fire range from beneficial to detrimental. This is influenced by many factors including the location of that individual in that particular mine. There is room for improvement in the design and implementation of escapeways in underground coal mines. Escapeways need to be planned and designated with regard to the potential sources of fire, pressure differentials between escapeways and the operational practicalities of maintaining the pressure differential between them.CITATION:Olsen, M, 2013. Belt road segregation and escapeways - Compliance or risk management?, in Proceedings The Australian Mine Ventilation Conference, pp 311-318 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jul 1, 2013

By T W. C Stambolie

Longwall mining is a form of underground mining and the principal extraction method for underground coal mining in Australia. The method is used in the mining of both thermal and metallurgical coal. The primary market for thermal longwall mines is that of the export market where price is governed against the Newcastle Thermal Benchmark index (globalCOAL, 2016).Australia’s thermal coal export outlook is considered moderate due to slower demand from major importing countries, as well as slowing domestic production. However, ‘Australia is projected to increase its share of world thermal coal exports and become the world’s largest exporter over the medium term as lower prices, increased domestic use and infrastructure constraints limit growth from other key suppliers’ (Office of the Chief Economist (OCE), 2016, pp 25, 58). On the contrary, and as a result of current global coal price trends, the basic economic principles of underground longwall coal mining are heavily stressed. From a life-of-mine perspective, influencing return on investment is at its greatest during project evaluation and execution. Appropriate and realistic economic assessment is paramount to ensuring the right outcomes are achieved under the current economic challenges.CITATION:Stambolie, T W C, 2016. Thermal coal industry – is longwall mining currently a life-of-mine option in Australia?, in Proceedings Life-of-Mine 2016 Conference, pp 57–61 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 28, 2016

By D Preedy, J K. Claflin, S R. La Brooy

A gold mine in north-eastern Africa has expanded throughput from 5 to 10 Mt/y in recent years. The original carbon regeneration kiln was incapable of achieving required throughput or meeting process conditions to reactivate the carbon due to heavy fouling by high molecular weight frothers and collectors. A new high temperature kiln was required.The design criteria for the carbon reactivation kiln and associated equipment were revised, then implemented in close cooperation with a kiln vender who had previously supplied kilns operating successfully on highly fouled carbon. The result is a whole facility, holistically designed to achieve the technical criteria.The new carbon reactivation facility has been operating since 1 July 2014. What have we learned? What has performed to expectations? What could be done better?This paper presents lessons learnt regarding the design, implementation, operation and maintenance of the Ausenco Carbon Reactivation Kiln. ‘Lessons’ are associated with threats and opportunities (risks) that have that have been realised. The importance of identifying and managing risks for even small straightforward projects is demonstrated.CITATION:Claflin, J K, La Brooy, S R and Preedy, D, 2015. Lessons learnt and performance – installing and commissioning an Ausenco carbon reactivation kiln in Africa, in Proceedings MetPlant 2015, pp 163–174 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 7, 2015

By G Tranell, E Pastor-Vallés, A Vallejo-Olivares, J B. Pettersen

Metals are essential for the sustainability transition and decarbonisation of society. Yet, it will be paramount to produce them sustainably and minimise the affiliated resource and energy use and the associated emissions. In the circular economy, the metallurgical industry should recycle existing material stocks, and improve its utilisation of wastes, residues and side streams. This increases the complexity of processes, as they become both (often multi-fraction) waste treatment as well as material production processes and brings complexity to the assessment of environmental benefits. Assessing the environmental impact of technological developments frequently is supported by life cycle assessment (LCA). While the method is well documented, its implementation involves several methodological choices that deserve reasoning and analysis, such as how to define the product when former wastes are turned into new products, the selection of impact methodology when converting emissions to environmental indicators, the definition of system boundaries and co-product allocation and the interpretation of sensitivity and uncertainty in final outcomes. In this exploratory study, we investigate how the variation of LCA set-up affects the environmental burden of the system. We consider a metallurgical process where a mix of hard-to-recycle aluminium-containing streams is used to produce aluminium cast alloys in a rotary furnace. Remelting with salt-fluxes allows recovering metals from partly oxidised/contaminated streams, such as dross, bottom ash and industrial shavings, but at the expense of generating significant amounts of salt-slag/salt-cake hazardous waste. The study considers different system alternatives such as landfilling the salt-slag residues versus valourising them into salts, aluminium concentrates, ammonium sulfate and non-metallic-compounds to be used by the metallurgical, construction or chemical industries. Practical recommendations are outlined to facilitate the implementation of LCA in assessing the potential benefits of the circular economy in the metallurgical sector.

Aug 21, 2024

By Clappison D. J

Since its formation in Papua New Guinea and raising of A$2 million in 1980, Niugini Mining Limited (NML) has grown to a company capitalised on the Australian Stock Exchange at about A$350 million. In 1995 the company produced some 237 000 ounces of gold, 700 000 ounces of silver and nearly 5000 tonnes of copper from its operations at Red Dome, in North Queensland and San Cristobal in The Atacama Desert of Northern Chile. This production contrasts with Niugini Mining's first mining venture at Mt Victor in the Eastern Highlands of PNG which yielded 20 000 ounces of gold and 11 600 of silver between 1987 and 1989. Following the formation of an exploration joint venture in 1982 with Kennecott Explorations (Australia) Ltd, now a subsidiary of RTZ, Niugini Mining's early recognition of the gold potential of volcanic rocks at plate margins led to discovery of the Lihir deposit in July 1982. This deposit containing about 42 million ounces of gold in resources, is one of the largest undeveloped gold deposits in the world. Following raising of equity funds through the float of Lihir Gold Ltd and debt finance in 1995, construction of the mine at a cost of US$673 million is now underway with first full-scale production at approximately 600 000 ounces of gold per year expected in early- 1998.

Jan 1, 1996

By R Jacobs

"The Jaguar project is relatively unique in that it was evaluated, financed, built and operated to completion within the last ten years, providing the opportunity to holistically review and reconcile expectations against the actual outcomes. It is a case study that allows wider conclusions to be drawn with respect to the risks and opportunities involved with project evaluation and execution.Jaguar is located in the Leonora Mining District of Western Australia and was commissioned in mid-2007 as an underground accessed, single high-grade volcanic-hosted massive sulfide (VHMS) deposit with an on-site concentrator, producing copper and zinc concentrates exported via the Port of Geraldton to South-East Asian markets.The feasibility study (FS) had several iterations (JML, 2005a); the last dated July 2005 was specifically targeted to secure project funding, and summarised the reserves-only portion of the resource and its planned exploitation. The commissioning of the mine was the transition for the owner Jabiru Metals NL from junior explorer to producer and the project was the dominant asset of the company.Jaguar operated through several significant deviations from the linear project plan set out in the FS, including the Global Financial Crisis (GFC), a corporate takeover and disruption to the mine plan from the onset of material geotechnical issues. Whilst the GFC or mining disruption were not specifically predicted in the FS or peer reviews, the generic effects of the events were assessed in the project risk assessment and they influenced subsequent management decisions. In parallel to the internal project-specific risks, the short planned life of Jaguar was a risk to the continuation of the corporate entity which was being addressed by significant investment into brownfields exploration to extend or replicate the project, and ultimately added value such that attracted a corporate takeover.Holistically, the project delivered the returns predicted in the FS, but in a much different guise than was expected. This paper will describe the reality of operations compared with the study predictions and expectations through the perspective of the project and corporate risk assessment.CITATION:Jacobs, R, 2016. Jaguar base metals project case study – has reality reflected the study?, in Proceedings Project Evaluation 2016, pp 86–97 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

TowerMill - Advantages in Wet Grinding Applications The TowerMill, which has now been in existence for no less than 50 years, is one alternative to the horizontal ball mill and offers several advantages. The TowerMill is widely used in (coal-fired) electric power plants for the grinding of raw material for the FGD (Flue Gas Desulphurisation) process involving very high throughputs, very fine product sizes and high availability. Some companies in the mining industry also looked at the use of such optimised grinding machines several years ago and found that many of the advantages offered in other industries are transferable to new applications. Much development work has been undertaken to improve the TowerMill for new applications and, as part of that work, tests have also been conducted to make direct comparisons of their performance with that of ball mills. Grinding tests were performed using the same raw materials and comparable machine sizes. Some of the results are discussed in this paper, along with a comparison of the advantages and disadvantages. The conclusion provides an outlook for some worthwhile future applications. The test results, which are described and analysed, show that the TowerMill offers significant advantages in relation to operating costs and operational safety. An example based on the wet grinding of limestone is presented.

Sep 13, 2010

By C R. Ure

To substantially reduce, if not eliminate, carbon dioxide (CO₂) emissions from ironmaking it is necessary to convert from blast furnace (BF) ironmaking using coking coal as the reductant to direct reduction (DR) ironmaking using hydrogen (H₂) and green electricity. Currently, almost all natural gas (NG) based direct reduced iron (DRI) production utilises iron oxide pellets in shaft furnaces, as opposed to fines in fluidised beds. Also, these pellets are ordinarily produced from high-grade magnetite concentrate, rather than hematite and goethite with typically higher gangue contents. The use of high-grade magnetite concentrate is driven by the preference to melt DRI in conventional electric arc furnaces (EAFs), thereby avoiding the basic oxygen furnace (BOF) for making crude steel (CS). However, in replacing BF with DR ironmaking it is not economically feasible to source enough high-grade magnetite to replace the lower grade hematite and goethite currently consumed. That is not to say that hematite and goethite, or even low-grade magnetite, cannot be used in DR ironmaking. However, their higher gangue content, resulting in higher slag production, requires that the EAF producing CS be replaced with a submerged arc furnace (SAF) that will produce pig iron (PI) for the BOF as does the BF. Here, critical issues to be addressed are, what are the technicalities in replacing high-grade magnetite concentrate with hematite and goethite and NG with H₂ in DRI pellet production and melting? This paper summarises certain relevant published information on DRI pellet research, test work and production together with relevant information on Pilbara ores. It attempts to illustrate the inter- relationship of composition and processing conditions on DRI pellet properties. It is intended to serve as a rudimentary guide to understanding the complexities of formulation, testing, evaluation, production and goethite and offer insight into this challenge.

Sep 18, 2023

By J Carswell, K McTyer

The Pajingo gold operation in Queensland is approximately 50 kilometres south of Charters Towers and 134km south-west of Townsville. The resource was discovered in 1983 and first open pit gold production began in 1986. The mine traditionally employed a bottom-up sequence – a combination of modified and traditional Avoca methods with run-of-mine waste backfill. This practice caused many high-grade crown pillars to be left in place, yet accessible. In recent years, these crown pillars have been extracted by injection grouting of rockfill. This process facilitated blind up-hole open stoping. To date, thirteen separate injection campaigns have been completed, of which ten were deemed successful. In general, the two key technical difficulties in this mining technique are: maintaining a consistent high-quality ground consolidation of the rock fill material; and controlling the drill and blast practices during stoping. Here, effective drill-and-blast control was found to be essential to achieve the dual aims of 100% extraction, and maximum sill pillar stability to minimise dilution. During stoping, the technical performance of the consolidated rock-fill was recorded; both to verify the design, and to identify operational improvements. The results showed that Pajingo has realised both reduced production down-time through use of early strength gain grout, and more rapid and thorough grout consolidation through changes to the emplacement method. The optimisation of consolidated rock fill has led to several quantifiable benefits to the mine, including: profitable extraction of previously sterilised crown pillars resulting in both increased ore reserves and production profile; improvements to the stability of grouted stope crowns, thereby reducing safety and production related; risks associated with open up-hole stopes; reduction in cost and time constraints, with respect to the grouting of loose fill; and reduction in grout curing time – from 14 days to 8 days – thereby minimising production down-time. This paper is a case study of the evolution and optimisation of the up-hole open stoping mining method at Pajingo. The challenges and successes are discussed in terms of their key mining outcomes. CITATION:McTyer, K and Carswell, J, 2018. Evolution of rock fill consolidation at Pajingo Gold Mine, in Proceedings The Fourth Australasian Ground Control in Mining Conference (AusRock), pp 66–77 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 30, 2018

By J Loeb, R Ramanathan, H Ingham, P Cameron

Most mining operations, including iron ore, maintain a focus on continuous improvement and asset optimisation in their operations. As all the unit operations in the Mine-to-Mill value chain are interdependent, available technologies that address efficiencies across the value chain are once again in the spotlight as companies are driven to improve productivity and maximise mine site profits to increase return on capital invested. Core to continuous improvement is the need to understand the baseline and impact of changes to the process. In this paper, we discuss some of the critical attributes in the Mine-to-Mill process, including their influence on productivity and cost, the need for direct measurement and areas where they should be applied. Many initiatives can be considered to improve Mine-to-Mill processes. Mining operations are planned and executed based on designs and models to achieve the operation's objectives. However, there are many variables in the different parts of the value chain, such as blasting, material handling, crushing and screening. Therefore, measurement of the key attributes establishes the baseline for Mine-to-Mill (or Pit to Plant) performance, which is necessary to understand the impact of any proposed improvements to the process design and execution and monitor the outcomes on an ongoing basis sustain the improvements that have been implemented. This paper focuses on two types of measurement – blast movement and particle size of materials through the Mine-to-Mill process. Several innovative technologies and control loops are readily available to measure these attributes and assist operations to improve productivity and mine site profits. The size of the tangible benefits, which can flow from measuring and optimising fragmentation and blast movement, provide a remarkable return on the investment. Realising these benefits needs a focus outside conventional operation silos as a successful Mine-to-Mill project requires a multidiscipline approach across all the silos in the value chain. Required technologies are available; adding the necessary ingredients of communication and co-operation by all concerned across the silos will ensure the benefits are realised.

Nov 8, 2021

This article focuses on TurkeyÆs gold potential with respect to exploration, development and operation after 1985. Apart from TurkeyÆs geology, which offers a substantial number of volcanic-associated gold (Ag) and gold-copper (Au-Cu) projects, there are numerous other factors which make the country a favourable place for mining. Turkey has a mining history which goes back to pre-Roman times and an excellent mining code which ensures security for long-term production. In the country, the Government and local villagers are very positive and the country works extremely well logistically with excellent road and telecommunication links. The opportunities for new discoveries in Turkey are very high. Moreover, Turkey has its eyes turned west as it moves towards joining the European Community and it is no surprise that international companies believe it has got its timing as well as its partner relationship right. Newmont, Teck Cominco, BHP Billiton, Rio Tinto, Eldorado Gold, etc all have direct or indirect interests in Turkey, as do an increasing number of midtier and junior exploration companies. Turkish Koza Gold Mining is the first Au producing company of Turkey. The Eldorado Gold owned 245 t Kisladag Au deposit in Western Turkey is currently also producing Au. In the meantime Anatolia Minerals Development is advancing the 131 t resource at the C÷pler Au deposit in North Eastern Turkey. These are significant world-class deposits. Further encouragement for investment in the Au mining sector has been provided by the introduction of a new mining law in 1985. Foreign investments in the country were encouraged and have seen a rapid increase in the last two decades. Gross domestic product (GDP) growth is in excess of five per cent per annum, inflation is down from 70 per cent to single figures, the budget deficit has been cut by 40 per cent to 11 per cent and industrial output and productivity are increasing rapidly. Turkey is politically and economically stable, is a member of the European Customs Union, has a supportive mining legislation, is highly prospective and under-explored and hosts significant recent gold discoveries.

Jan 1, 2007

The efficient and profit-maximising daily and long-term management of the Vera Nancy resource depends on decisions based upon assay data. This paper examines the range of sample sources, the methods of sample collection, assay techniques and Quality Assurance used by the mine. The orebody has a relatively low nugget effect for a gold mine (around 25 per cent) and this greatly assists in reducing sampling error and producing reliable assay data for production decision-making. Reconciliation between mine and back-calculated mill grades generally sees the mine under-calling mill grades by around four per cent.

Jan 1, 2000

By T M. Campos, H A. Petit, L M. Tavares, R Olympio

Much practical experience has been gathered in the last 30 years of application of high-pressure grinding rolls (HPGR) integrated with ball milling in size reduction of fine iron ore concentrates. The company Vale S.A, in Complexo de Tubarão (Brazil), was one of the pioneers applying the technology prior to pelletisation with an outstanding size reduction energy efficiency in the circuit and a significant increment in the specific surface area of the product. Recent studies by the authors demonstrated benefits of modelling and simulation to improve the performance of HPGRs in this particular application, with the model being able to describe HPGR performance under different operating conditions and under variations of feed size distribution. Despite these important advances, this modelling approach has only been used offline and under steady-state conditions. The present work applies the modified Torres and Casali model proposed by the authors in pseudodynamic simulations. The ability of the model to predict the characteristics of the product in real-time is evaluated using data available online for the pellet feed preparation circuit. Results demonstrated the model capabilities to map the physical operation and give a realistic representation of the process. Additionally, the model is demonstrated to be able to support the pellet feed production by providing extended real-time information of the process, making it a useful tool for improvement of the operational strategies and process stability.

Aug 24, 2022

The Kaltails Project is situated close to the city of Kalgoorlie-Boulder in Western Australia. Located on the south-eastern fringe of the Golden Mile, Kaltails has been in operation since June 1989. The tailings forming the reserve for Kaltails have been derived from 100 years of underground mining on the Golden Mile, but, some of the re.;erve has been retreated in the past. A map of the tailings reserves and treatment plant site is presented as Figure 1. The gold project is a joint venture between Poseidon 90 per cent and Gold Corporation (ten per cent) and is managed by Poseidon Gold Kaltails.

Jan 1, 1992

By Beevers J

The Ok Tedi Project is now a high production open-pit porphyry copper mine located in the Star Mountains of Papua New Guinea (PNG). At present, total daily production is 190 000t of ore and waste. Large scale drilling and blasting has only been in operation since 1988, prior to which all material was removed by ripping and dozing. This paper reviews the steps taken over the last 12 months in establishing a more efficient drilling and blasting operation and highlights the significant reduction in powder factor. These improvements have been achieved largely through the introduction of air-bags, controlled pattern expansion and an overall focusing on the operation by involving consultants, ICI's technical service and internal departments.

Jan 1, 1991

Judicious placement of a range of geotechnical instruments was employed at the Tasmania gold mine, Beaconsfield, Tasmania, as a key strategy in the monitoring of rock mass conditions over the past four years. The range of instruments employed included vibrating wire stress-meters and hollow inclusion cells to monitor changing stress conditions, resistance wire and multipoint borehole extensometers to monitor the impact of stress changes on the integrity of the rock mass, and instrumented cable bolts and threadbar bolts to monitor the static and dynamic impact of rock mass changes on the installed ground control system. Initially the monitoring was of a qualitative nature, monitoring change from the time of installation. The value of the output was considerable when considered in relation to the ongoing seismic record which was also being monitored. It was clear from the seismic record and the monitoring results that stope blasting was the primary trigger for changing rock mass conditions. However, it was unclear how well observed behaviour was reflecting conditions anticipated by elastic numerical modelling. The latter had predicted significant stress increase in the near field of man-access footwall development. Qualitative monitoring and visual inspection did not support the modelling prediction, and this led to a program of quantitative measurement being undertaken. Measurement of the absolute stress condition in the backs of footwall development immediately adjacent to monitoring hollow inclusion cells provided the benchmark for tracking quantitative stress change. The program provided insight into the evolution of principal stress field magnitude and orientation in relation to rock mass change observed with extensometers and instrumented ground control elements, as well as providing a degree of calibration between the elastic numerical modelling and the virgin stress field. Calibrated monitoring data has also provided a useful benchmark for finite element modelling which is to be used for future mine-wide design.

Nov 25, 2010

Sulphuric acid leaching at atmospheric pressure of a number of Australian nickeliferous laterites was examined in detail. The results obtained indicate that nickel can be extracted from these ores, although the conditions required to achieve about 90 per cent extraction vary widely. These differences in reactivity can be related to the types of nickel-bearing minerals present.Nickel is more readily extracted from nickel-bearing clays such as chlorite, than it is from nickel-containing goethite.The results clearly show the problems associated with the processing of complex ores such as the nickeliferous laterites, and they indicate the need for complete characterization of each deposit.

Jan 1, 1978

By M Gill, A Mathias

The mining industry has always been cost-focussed but in recent times mining companies have moved towards obtaining a competitive advantage through the implementation and sustainability of best practice in the areas of improved safety, operating costs, quality and productivity. This is the concept of Value In Use û that mining companies see value generated all the way to the bottom line through improved change, and those changes become an established mine practice. Many mining companies do not have the resources or the knowledge to sustainably achieve such an outcome. This has led to companies looking to their suppliers to deliver measured value to their business through partnership arrangements. Suppliers have been able to leverage their knowledge of products, product applications and services to offer alternative supply agreements that bring greater returns to their businesses while improving supplier/client relationships. Orica has developed such a partnership with Coal & Allied in the form of a Continuous Improvement Program. Coal & Allied is based in the Hunter Valley region of NSW and is the largest coal producer in that region. Both parties are contractually bound to jointly deliver Value In Use projects to Coal & AlliedÆs Hunter Valley Operations and Bengalla mine sites. It is the request of the Orica and Coal & Allied Steering Committees that this paper does not include the details of actual projects or the costs or key performance indicators associated with the program. This is to maintain the competitive advantage to both Orica and Coal & Allied through the implementation of such a program. It is in the writersÆ opinion that this paper does not lose any significance through this restriction as the most important component of the Continuous Improvement Program is not the projects themselves but the methodology behind them. With this in mind the paper will discuss the development of Value In Use offerings, the key aspects of the Coal & Allied and Orica joint program, what is a Value In Use project, how to measure its value, finally why and even more importantly what makes this program is a success.

Jan 1, 2004