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The objectives of this paper are two-fold. First, it will show what problems can arise when single estimated values are substituted for a distribution of values when evaluating an open pit mine project in the face of uncertainty. Secondly, it will show how the ability to deal with uncertainty and risk in mine project evaluation can have a significant impact on the ownersÆ and stakeholdersÆ investment decision-making. Here a new mine evaluation framework, the integrated valuation/ optimisation framework (named IVOF), is introduced as an alternative tool for mine project evaluation where uncertainty and risk are incorporated in the evaluation process.

Jan 1, 2009

By Mining Geophysics

Modern geostatistics has eliminated much of the guess-work in ore reserve estimation, and can calculate levels of confidence for the reserve estimate. Geological modelling software has brought about a revolution in the communication of complex geo-variables to mining engineers, metallurgists, surveyors and managers. Mine planning and scheduling can now avail itself of a veritable toolbox of enabling technologies.

Jan 1, 1994

By M Delaney

Alliancing is a contractual relationship in which organisations with an interest in a project are brought together in an atmosphere of co-operation to produce superior results to benefit all of the participants. Fundamental to the concept is the management of the risks associated with the project. The traditional risk management strategy adopted by clients has been to transfer this risk to others in the belief that this will result in the lowest overall project cost. It is assumed that competition in the market place will allow these risks to be transferred without paying a premium. However, this approach often results in the development of an adversarial climate, a high level of litigation, time and cost overruns and an overall poor project outcome. Under an alliancing arrangement the parties (client, designer and contractor) are aligned through shared interests in the projectÆs success by linking profitability to performance. Under such an arrangement, an atmosphere is created whereby the participants are motivated to focus on cost-savings, pursue best value and to innovate. Successful alliancing can result in highly motivated project teams and realisation of extraordinary productivity and cost-savings flowing from increased efficiencies. The situations in which alliancing can be successful are discussed with particular reference to the Wandoo Alliance which successfully completed the $375 million Wandoo B offshore oil platform in record time and with considerable savings to the project budget.

Jan 1, 2000

A review of publicly available coronial inquiries into fatalities that have occurred within the resources sector since the year 2000 reveals that a loss of corporate memory has been a contributing factor in 40 per cent of these accidents (National Coroners Information Service, 2010, Appendix B). With the highest levels of employee turnover within the Australian economy, increasingly complex operations and an ageing workforce, the management of corporate memory within the Australian resources industry poses a significant and often unrecognised safety risk.    The North Parks airblast of 1999 is used as a case study to highlight how corporate memory loss poses a significant hazard to resources projects and how such incidents will continue to occur if corporate memory is not effectively managed. Best practice from other industries is discussed to demonstrate how knowledge management systems can effectively work. This paper discusses how systems can be put in place within the geographically diverse resources sector, and how at the heart of any knowledge management system a culture of knowledge management needs to exist within an organisation.   The paper then discusses the importance of retaining key personnel and utilises findings from primary survey data collated in 2009 to show the size of the retention problem within the industry. From the data possible solutions to retaining key staff are proposed.   Finally the large and increasing role of contractors and consultants within the industry is discussed and methods of managing their knowledge are proposed.

Jun 1, 2010

By Johnson D. P, Beamish B. B

The northern Bowen Basin has a very large resource of coalseam methane gas-in-place - 136 TCF(7ohnson and White, 1988). The gas is pipeline quality, being 98-99 per cent methane with traces of carbon dioxide and higher hydrocarbons. The largest resource of natural gas within the coalseams of the northern Bowen Basin is contained in the Moranbah Coal Measures (75 per cent). The next most important resource is in the combined upper Fort Cooper (16 per cent) and Rangal (nine per cent) Coal Measures. The far northern parts of the basin have low gas contents due to the combined effects of limited extent of the coal measures, shallow depth and low rank. Reserves per well are more than double that of the best coalseam methane wells in any basin in the United States. In some areas of the Moranbah Coal Measures, the gas-in-place estimates exceed 225 million cubic metres per well (80-acre spacing). A distinction is made between resource base, as determined from this basin assessment, and the deliverability potential. Parameters used to estimate gas-in-place (coal area, thickness, density, rank and depth) can be adequately extrapolated from areas of high- to low- data density. Parameters affecting methane production (permeability, gas depletion factor and critical desorption pressure) cannot be generalised. Exploration and development programs must rapidly develop a predictive capability for these factors, on a local scale, through geological modelling and confirmation drilling.

Jan 1, 1991

The conventional approach to the disposal of fine coal mine tailings, which involves piping the tailings as an aqueous slurry to a storage where they remain in the form of a permanent wet deposit, is becoming unacceptable. This approach is a legacy of a "contain and forget" mentality, which has economic advantages only in the short term. In the longer term, wet tailings deposits occupy large areas of land and present extreme rehabilitation difficulties. Alternative tailings disposal systems, which are sustainable and which facilitate rehabilitation, are required. The possible alternatives include the mechanical dewatering of fine tailings prior to disposal in combination with coarse reject, tailings disposal into spoil pile valleys, and the combined pumping to disposal of tailings and coarse reject. The most appropriate choice of fine tailings disposal strategy will vary from mine site to mine site. The chosen strategy should be optimised to meet increasingly stringent environmental requirements, within the constraints imposed by each mine. The alternative approaches represent significant departures from past practices, and require considerable industry driven research and development before they can be adopted with confidence. All three alternatives involve mixing of the fine tailings and coarse waste streams, aimed at creating a mixture of reasonable engineering properties. Understanding the engineering behaviour of such mixtures is central to the success of these alternative disposal strategies.

Jan 1, 1991

By C G. Ryan, T P. Mernagh, S R. Hunns, R A. Both, R R. Large, J B. Gemmell

 The Hellyer and Mt. Chalmers deposits are mound-style volcanic-hosted massive sulphide (VHMS) deposits in Australia. Textural, petrographic and microthennometric investigations of fluid inclusions in the Hellyer stringer system indicate that Type I, primary, liquid-vapour inclusions are 10 - 15 J.UIl in size, and yield homogenisation temperatures of 170 - 220¦C in early 2A veins, 165 - 322¦C in main-stage 2B veins and 190 - 256¦C in late-stage 2C veins. These data suggest a waxing and waning thermal history. However, the average salinity remained between 8 - 11 NaCl equiv. wt % in all Stage 2 veins. At Mt Chalmers, Type I inclusions up to 20 urn are found in quartz from the mineralised zone, and these inclusions yielded homogenisation temperatures of 160 - 268¦C and salinities of 5 - 8 NaCl equiv. wt %. Laser Raman spectroscopic (LRS) analysis indicates the presence of CO2 (<1 mole %) in the Hellyer and Mt. Chalmers VHMS systems. Semi-quantitative SEM/WDS microprobe analyses of fluid inclusion decrepitates indicate that the Hellyer and Mt Chalmers ore fluids were enriched in potassium and calcium but depleted in magnesium relative to seawater. PIXE microanalysis of fluid inclusions in quartz also indicates a significant base metal concentration in these fluids. Cation composition and higher salinities relative to seawater suggest that recycled seawater alone cannot be the sole source of the ore fluids. High base metal content and the presence of CO2 in the fluid inclusions imply that magmatic input of ore metals during seawater leaching of the footwall volcanic pile is a distinct possibility.

Jan 1, 1995

By MáAndrusiewicz, M M. Hilden, M S. Powell, P D. Kay, B Foggiatto

Circuits with unconventional and potentially more complex designs are predicted to become more common in the future as plant designers and operators look to process ores more efficiently. Ideas have been presented on how circuit design may be changed to utilise todayÆs technology to address tomorrowÆs challenges (Powell and Bye, 2009; Powell, Benzer and Mainza, 2011a). High pressure grinding roll (HPGR) installations in various configurations; application of preconcentration plants eg sorting, magnetic or gravity separation; and preweakening devices eg microwave processing; are all examples of technologies having the potential to deliver a significant reduction in comminution energy for ores amenable to these processes. Not only will future novel circuits contain equipment for which models are not as well developed (if at all), many will likely require the ability to respond to variations in feed, and interact with geometallurgical models requiring process adjustments when the ore characteristics change.In order to confidently simulate more complex circuits and accommodate variations in feed type, a significant advancement in modelling and simulation capability is required. This includes dealing with multiple components in the feed, accommodating different competencies of ore, utilising physical separation opportunities and tracking the grade reporting along the different potential processing routes. Developing the means to simulate complex circuits has been a key priority of a collaborative group of comminution researchers working to solve these challenges.Simulations are presented utilising a new configurable simulation interface called the model developers kit (MDK). The MDK is designed to accommodate multi-components and incorporate new models under development. These will be used to demonstrate the potential of flexible circuit design, based on measured ore properties and equipment performance.CITATION:Foggiatto, B, Hilden, M M, Powell, M S, Kay, P D and Andrusiewicz, M, 2012. Simulation of flexible circuits, in Proceedings 11th AusIMM Mill OperatorsÆ Conference, pp 291-298 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 29, 2012

By R P. Callaghan

Underground production from the low grade copper orebodies at Mount Lyell in recent years has involved surface subsidence of open cut areas. Relevant structural and lithological features of the geological environment are described. The highly mechanised underground mining system involves sublevel caving and sublevel open stoping with associated hanging wall cave. Monitoring of subsidence and caving has been made by regular visual inspection and measurement of crack development, and by surface profile surveys. These simple techniques have proved adequate in assuring management that ground movement is proceeding normally and safely.

Jan 1, 1980

High precision GPS systems for mining are accurate to within a few centimetres. Typical systems consist of one or more GPS antenna, GPS boards, sensors to detect the position of the blade or bucket of the machine radios to pick up correction signals, a computer to control the system and a display screen to give instructions and information to the operator. GPS systems offer two benefits û they give information to the operator to get his job done faster and more accurately and they can send information to management about how the job was done. On dozers, GPS systems allow the operator to accurately complete earthmoving jobs with no survey pegs. On hydraulic excavators the systems can be used to accurately locate the position of the bucket teeth for selective mining. On blasthole drills the systems can guide the operator to each hole and record accurate as-drilled plans. By reporting the position of the blade or bucket in three dimensions it is possible to continuously upgrade a mapfile of the excavation. From this file it is then possible to report productivity numbers in real time. High precision GPS works best with a minimum of five satellites visible. This may be difficult in a pit. Systems which also access the Russian GLONASSS satellites offer significantly better uptime. GPS systems will become indispensable for efficient mining operations in the future.

Jan 1, 2003

By J, J M. Young, P T. Nielsen, R Zhu

Improved understanding of the variables that influence hydrocyclone performance is of increasing interest to the iron ore industry, where hydorcyclones are widely used to deslime fine ore. In many cases, the impact of particular variables is not quantified sufficiently well experimentally to ensure that industrial performance will match expectations. The current work focused on developing and implementing a systematic methodology to evaluate and compare the performance of four different hydrocyclones in a desliming application. A critical component of the project was the design and construction of a pilot-scale hydrocyclone rig using state of the art monitoring and sampling methods. A wide ranging test programme was conducted to quantify the effect on metallurgical performance of the key hydrocyclone variables such as pressure, feed density, vortex finder size, spigot size and hydrocyclone make/overall design. Details of the experimental approach are presented, along with a discussion of the sizing analysis methods used. Performance criteria were established to assess the four hydrocyclones. The effects of each major variable were quantified over a wide range of conditions. The results show that clear performance differentiation was achieved, enabling the selection of the optimum configuration. The results from this work demonstrate the benefit of objectively assessing the performance of nominally equivalent units in selecting an optimum configuration that best satisfies the performance criteria.

Jan 1, 2002

By Jardine G, Woodall C

The Henty Gold Mine, located in Western lasiuania use, uuiusatise solutions to effectively manage a mining operation in an environmentally sensitive setting and has been presented with several environmental awards. Fill is required as part of the mining method to provide passive ground support, minimise rock exposure and ensure maximum recovery of the small but high-grade orebody. The use of the whole portion of leach residue in the backfill reduces the surface tailing disposal requirements. Therefore, High Density Paste Fill (HDPF) has been selected as the most appropriate fill method to meet these objectives. Additional benefits include the minimisation of excess water from fill and the subsequent need for the collection and treatment of water and slimes. There are minimal equipment requirements during placement, thereby optimising mine resources for production. The initial paste fill design was based on the Bad Grund and Ranunelsberg Mines paste fill systems of Preussag in Germany and comprised pumping filtered tailings paste some 1.2 kin uphill from the mill to the mine portal, where cement was to be added before being distributed underground. The system was designed following initial testwork that was undertaken on a bulk sample of ore mined from the scar surface Sill Zone. Subsequently, during the mining of the Zone 96 orehody, it was found that there were significant mineralogical variations in the composition of the ore mined. Following processing, the resultant Icach residue caused significant changes in the paste rheology and therefore the pump and flow characteristics. An alternative solution was implemented that involved the use of agitator trucks to transport the cemented paste to the portal. This required modifications to the fill preparation system and also the underground distribution system. Laboratory strength tests of the HDPF using actual gold plant leach residue showed low early strengths were attained with HDPF containing only filtered leach residue. Therefore, high binder addition rates or an increase in the fill cycle time would be required to allow the fill to gain sufficient strength. A considerable amount of potentially acid generating waste rock also requires underground disposal. By blending the waste rock with the HDPF, the strengths were improved and the required cement addition rate reduced by about one-half. The potentially acid funning waste rock is encapsulated in the highly alkaline cemented paste, minimising the potential for acid generation.

Jan 1, 1998

By Thatcher R

In areas where undeveloped land represents a scarce resource, an upgraded post mining land use can result in economic benefits to both the mining company and to the community. A study undertaken at Allied Queensland Coalfields Ltd's Aberdare Colliery located between Brisbane and Ipswich during 1986/1987, assessed the costs and benefits of developing the site following mining for grazing, forestry and residential uses. The proposed final land use plan comprised a combination of these uses which can be upgraded to higher valued uses once subsidence monitoring of backfilled opencut areas and dumps indicates that total settlement has reached acceptable levels. The study involved the documentation of existing site environmental parameters and the delineation of site opportunities and constraints. The unpredictable nature of settlement over backfilled opencuts and overburden dumps represents the major constraint to urban development on mined areas.

Jan 1, 1987

By V Liebezeit

Data management is a significant, but perhaps unrecognised, consideration for any organisation embarking on a geometallurgy program. While resource geologists are accustomed to dealing with thousands or millions of samples and their associated assays, metallurgists and mineralogists have traditionally carried out only a few expensive and complicated tests and consequently tend to manage the resultant data in spreadsheets. The emerging discipline of geometallurgy arrives with significant challenges as a result of the sheer volume of data generated. As an example, the Olympic Dam geometallurgy program has generated more than:60 000 physical subsamples analysed for up to 30 analytes; 25 000 spreadsheet-based laboratory test results; 30 000 sized fractions analysed via QXRD, MLA and/or QEMSCAN;multiple external providers of data, and more than seven terabytes of data. Considerations for any geometallurgy data management system include storage space, data integrity, accessibility, traceability (sample provenance), maintenance and ease of use, integration with data providers and the ability to modify the system to adapt to changing requirements. Further, aspects of a geometallurgy program, such as conducting a range of tests on one sample, producing subsamples such as concentrates and tailings, compositing and routine QA/QC may not be well handled by existing software and providers geared to standard geochemistry, mineralogy or metallurgical test programs. The development of a geometallurgy database using existing software (AcQuire), and the associated file management system will be described for a large geometallurgy program at Olympic Dam. As with many aspects of geometallurgy there is no approach that meets the needs of every site or program. Recognition of data management as an issue, a structured approach in the program planning phase and commitment to executing the strategy will increase the chances of successfully mining the geometallurgical data.

Sep 5, 2011

By R Strand, L Reading, G Keir

A major challenge in managing coal seam gas (CSG) water is predicting how much water will be produced as the industry develops. Klohn Crippen Berger Ltd (KCB) was commissioned by the Queensland Department of Natural Resources and Mines (DNRM) to develop a tool to forecast where, when and how much CSG water will be produced in the Surat and Southern Bowen Basins under various industry expansion scenarios.The water production tool (WPT) uses the Theis equation, a non-equilibrium groundwater flow equation that accounts for the effect of pumping time on well yield in confined aquifers, to predict water production volumes. Where multiple pumping wells are in close proximity, the required pumping rates for coal seam depressurisation are reduced. Therefore, pumping effects are projected spatially to assess interference effects between wells. Water production is then upscaled to the projected scale of the CSG industry within the Surat and Southern Bowen Basins.Two modifications were made to address the dual phase nature of CSG extraction (a transmissivity reduction factor) and the impact of weathering at the eastern margin of the Surat Basin (a ænear edge effectÆ factor). These factors modify relevant hydrogeological parameters in a consistent and defensible manner to more closely match observed water production.The WPT was verified by comparing results to equivalent Theis equation calculations and to type curves provided by CSG proponents. Calibration was achieved by varying the spatial distribution and intensity of the near edge effect factor in conjunction with a chi-squared analysis of residuals.The tool, which is now being maintained and further developed by the Centre for Water in the Minerals Industry (CWiMI), was built to balance numerical complexity against relative flexibility and simulation speed. The result is a tool that can produce statistically relevant results of prescribed scenarios to plan water handling and treatment requirements in discrete zones of operation.CITATION:Strand, R, Reading, L and Keir, G, 2013. Water production simulation tool for coal seam gas operations in Bowen and Surat basins, in Proceedings Water in Mining 2013 , pp 311-320 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 26, 2013

By D Kotzen

Online cyanide analysers have been successfully used to control free cyanide in the gold/silver leach process for over 15 years. Use of such analysers leads to cyanide savings and improvement in recoveries. Plants with leach cyanide analysers show both lower and more consistent cyanide levels in tailings. Cyanide code compliance requires meeting residual cyanide targets in tailings. Monitoring and logging of the residual cyanide in plant tailings and effluent is required. Meeting targets may require cyanide recovery/destruction processes to be implemented. The operating cost of destroying cyanide is often the same order of magnitude as the cyanidation cost. Various cyanide destruction and/or recovery processes are reviewed. Choice of a process consistent with the environmental and operational requirements is illustrated. Online weak acid dissociable cyanide (CNWAD) analysers have recently been developed and introduced on gold plants. The application of a WAD 1000 online CNWAD analyser at a large gold plant is presented. The analyser ensures code compliance, reduces cyanide destruction process operating costs and forms a historical record of CNWAD values in tailings.

Jan 1, 2007

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

Jan 1, 2006

Truck fires in a tunnel can create heat release rates (HRR) significantly higher than 100 MW. Because of a fast spread of smoke and heat the self-rescuing period is shortened significantly. Furthermore, it was experienced that firefighters are not able to approach the fire because of enormous heat and radiation. As consequence, the fire may spread to adjacent vehicles, which is reported for distances of more than 50 m. Tunnels can be damaged severely by fires and the repair works causes long closing time of tunnels. In addition to direct costs for the refurbishment of the tunnel, further economic losses will occur due to the closure time. Conventional deluge systems in Japanese and Australian road tunnels have been known since the 1960s. During the last years the research work was concentrated in the development of more effective and cost-effective solutions based on water mist technology. Orientating fire tests as well as specifications of minimum requirements were carried out within the European research project UPTUN. This basic work was extended by the safety of life in tunnels (SOLIT) research project, funded by the German government. The scope of SOLIT was not only to study the effects of water mist fire suppression systems in tunnels, but also the interactions with other safety systems, such as fire detection, passive fire protection or ventilation. Furthermore, the integration of active fire suppression systems into a holistic tunnel safety system was part of the work program. Within this research project a large-scale fire test program with more than 50 fire tests, including 25 truck fires with a potential HRR of almost 200 MW, was carried out in the test tunnel of San Pedro des Anes (Spain). Furthermore, a two-week testing and training period with the Madrid Fire Brigade was carried out after the SOLIT program. Two fundamental results were achieved during the fire tests:Primarily, water mist systems are able to control the HRR of fires in tunnels, so the atmosphere will be improved significantly. Hazardous effects of toxic smoke on people will be reduced and due to the reduction of temperatures and radiation, a firefighterÆs approach is improved significantly. Furthermore, the fire spread will be hampered and the thermal load on the building structure also be reduced. Secondarily, due to positive interactions with the ventilation system, the effectiveness of a tunnel ventilation system, longitudinal as well as semi-transversal, is increased significantly. Based on the results of the SOLIT research project, a water mist system was applied into several parts of the M30 tunnels in Madrid. As a basic principle the technical equipment and the methodology of implementation comply with the UPTUN 251 guidance, recommending minimum standards for water-based fire suppression systems in tunnels.

Jan 1, 2008

By L Mollison, K W. Mills, N R. P Baczynski, M F. Lee, I A. de Bruyn

This is the first of two papers concerned with rock stress inputs to various mine design issues at the large Ok Tedi open pit mine in Papua New Guinea. The companion paper (also published at this conference) is ‘The Application of Rock Stress Inputs to Stability Assessments at Ok Tedi Mine, Papua New Guinea’ (de Bruyn et al, 2014).Stresses are a required input for numerical modelling of mine design issues. However, for some operations, like the very large Ok Tedi open pit mine in remote rugged mountainous terrain, direct and representative measurement of rock stresses can be technically difficult and expensive. In such situations, development of an appropriate and sufficient understanding of rock stresses can be challenging.This was addressed for Ok Tedi by considering the following:The tectonic and regional geologic setting of the mine.Results from three different programs of rock stress measurement over 19 years, including hydraulic fracturing (1991), acoustic emission (2007) and overcoring (2010). Some interesting results of the overcoring work are discussed. It was done in a 4 km long drainage tunnel, which intersected a thick monzodiorite intrusive that has metamorphosed contacts to host contact Ieru Formation siltstones; anomalously low horizontal stresses were measured within the monzodiorite.Compilation of rock stress measurements from other New Guinea mines and prospects, both in Papua New Guinea and Indonesian West Papua.Comparisons between the variable Ok Tedi rock stresses and similar data from other porphyry copper deposits.CITATION:Lee, M F, Baczynski, N R P, Mills, K W, de Bruyn, I A and Mollison, L, 2014. Rock stresses at Ok Tedi, Papua New Guinea, in Proceedings AusRock 2014: Third Australasian Ground Control in Mining Conference , pp 337–346 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 5, 2014

A number of gases, such as carbon dioxide, methane, water vapour, nitrous oxide, ozone and chlorofluorocarbons are transparent to incoming short-wave radiation, but are relatively opaque to outgoing longwave radiation. Variations in the concentration of these gases in the troposphere can alter the thermal balance of the earth's atmosphere. Outgoing terrestrial radiation which would otherwise escape to space, is trapped within the inner layer of the atmosphere, resulting in a greenhouse effect. It is estimated that at present greenhouse gases other than carbon dioxide, contribute about 50% to the greenhouse effect. However, in the future, the contribution made to the greenhouse effect by gases other than C02 will become increasingly more significant. Greenhouse gases arise from a wide range of sources and their escalating increease is largely related to an increase in the world's population, an increase in the standard of living of many areas and changes in lifestyle. The effect of increasing man-made greenhouse gases in the troposphere is unknown but it is proposed that it may increase temperature and may modify climate, agricultural response and land use. The sources of greenhouse gases are identified and found to comprise a wide range of activities. The contribution that coals use makes to the greenhouse effect is examined in detail. It is concluded that coals total contribution is small being about 10% of man made greenhouse gases. Envisaged expansion of coal's use will only cause a small increase in greenhouse gas emissions. Whilst developing technology for coal's use for power generation has the potential to reduce greenhouse gas emissions from new plants by approximately 25%.

Jan 1, 1989