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By F R. M Pires, R M. Carvalho

Supergene processes in banded iron formation (BIF) result in important dissolution, material transport and simultaneous disorder of the residual bands. The rock physical properties such as density, porosity and rheology change during the weathering attack. The itabirite, Paleoproterozoic metamorphic BIF from Quadrilßtero Ferrffero (QF) û Brazil, shows several weathered facies. Strong linking between topographic surface, rock density and iron grade occurs within the weathered zones. This linking is due to partial dissolution of silica and carbonate from itabirite and gravitational rotation and break of the remaining blades, generating kink-like slump structures. The original itabirite density, 3.7 t/m3, decrease at the first leaching steps, until 2.7 t/m3, and increase at the end of the leaching process until 3.6 t/m3. Iron grade increases from 38 per cent to 68 per cent and depressions (sinkhole), subsequently filled by Cenozoic basinal sediments, are developed over the enrichment zones. The formation of important supergene iron ore deposits of QF is intimately related to such a process. Several iron deposits at QF, such as Pico do Itabirito, Fßbrica Nova, Casa de Pedra, Tamanduß, -gua Claras, Cappo Xavier, etc., reveal the aspects related to the proposed evolution, implying that the formational process of the soft iron ores had a regional character. Granular medium model helped in the understanding of the development of the structure and the formation of the deposits. A numerical model has been developed in order to simulate a leaching system in a two-dimensional matrix, composed of two types of materials: leachable and unleachable. Equal volume proportion and vertical banding were considered. Drilling data was used as multipoint attractors to remove leachable matrix nodes.

Jan 1, 2002

Magnetite cenospheres 40-270 I/m in diameter have been found during the combustion of pyrite concentrate.Micrographs of the surface and internal structures are presented together with comment on the mechanism of forrnation.The similarity to cenospheres found during the combustion of pulverized fuel was noted and speculation raised to their contribution to the dust and fume load in flash smelters.

Jan 1, 1980

ALTHOUGH the development of the various flotation processes during the last 8 years has been so revolutionary, this development has been, until recently, entirely confined to the separation of the gangue from the mixed metalliferous sulphides.The desirability of finding some method of separating the independent sulphides from such a miXture, by means of flotation, has long been recognized. ThIS need was emphasized when the slimes resulting from the grinding of Broken Hill sulphide ores were for the first time successfully dealt with by the Mineral Separation Company's process on the Central mine. This process proved the practicability of separating the sulphides of lead and zinc as a mixed concentrate from the gangue present in slime. Although this was a very notable achievement, the process has not been generally used, owing to the mixed lead and zinc concentrates resulting from the treatment being acceptable neither to the zinc nor the lead smelters.Although the introduction of eucalyptus oil in minute quantities as an emulsifying agent has simplified the work of the subsequent tabling of mixed sulphide concentrates, rendering unnecessary the burning off or removal of the oil, there will always be a considerable quantity of slimy product too fine to settle on the moving surface of the concentrating machines, and therefore requiring other means for its division into lead and zinc concentrates.

Jan 1, 1912

Production of oic at BHP Minerals Pty Ltd's Cannington Mine commenced in May 1997. The initial sloping blocks at the [nine are located in the upper part of the Footwall Lead lode, and the Hangingwall Lead and Glenholme Breccia lodes. This paper discusses the geological investigations, interpretation and modelling that was undertaken for the Footwall Lead lode production block at Cannington Mine, as well as providing a basic geological introduction to the Cannington deposit.

Jan 1, 1997

The Prominent Hill copper-gold deposit is located approximately 150 km north west of Olympic Dam, on the southern margin of the Mount Woods Inlier in South Australia. Its discovery in November 2001 resulted from the application of a geological model developed from geological, geophysical and petrophysical data pertaining to the Olympic Dam deposit. The discovery has dispelled the notion the Olympic Dam may be unique, and that another deposit like it is unlikely to be found. The Prominent Hill mineralisation is hosted by haematite-matrix hydrothermal breccias, which have suffered extensive iron-sericite-silica alteration and overprinting. Copper, gold, barium, fluorine, uranium, cerium and lanthanum are all intrinsically associated with the hydrothermal iron. Breccias intrude an east-west striking, fault-controlled sedimentary succession, which is flanked to both the south and north by volcanic complexes. Many similarities between Prominent Hill and Olympic Dam are documented including geological setting, mineralogy, breccia styles, and alteration. Differences relate largely to the nature of the immediate host rocks. The similarities and difference provide key data for improving exploration models for this style of iron oxide copper-gold deposit, both within the Gawler Craton as well as globally.

Jan 1, 2004

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

By G R. Hancock, D Verdon-Kidd, M J. Saynor, J B. C Lowry, T J. Coulthard

The ability to simulate the stability of post-mining landscapes over time scales ranging from decades to millennia is a critical element in the assessment of closure designs for uranium mines. Landscape Evolution Modelling (LEM) technologies provide a means to simulate and assess the long-term geomorphic stability of a conceptual rehabilitated landform for periods of thousands of years. However, a major issue with simulations derived from long-term modelling are the limitations associated with the data inputs. Specifically, simulations which utilise historic rainfall data only represent the variability of rainfall events that have occurred over a relatively short period. Consequently, these simulations run the risk of not accounting for the full range of rainfall variability that might be expected over an extended period of up to 10 000 years. Therefore, for this study a probabilistic approach was adopted to generate a stochastic synthetic rainfall data set to produce a series of unique rainfall scenarios, each representing a simulated period of 100 years. Importantly, utilising such an approach allows uncertainty in predictions to be better accounted for and provides a range or probability of likely outcomes.In this study, the effect of ten individual rainfall scenarios are assessed in terms of their impact on the predicted erosion and denudations rates produced by the CAESAR-Lisflood LEM for a conceptual rehabilitated landform of the Ranger Uranium Mine (RUM) in the Northern Territory of Australia, focusing on the Corridor Creek catchment (Figure 1). While legislation requires this site to be erosionally stable for at least 10 000 years (Commonwealth of Australia, 1987), here the focus is on the first one hundred years of landscape evolution, as this is the period in which erosion is expected to be higher, with limited vegetation cover or pedogenic development in the initial decades after rehabilitation. It is also the period where the drainage pattern is set.CITATION:Lowry, J B C, Verdon-Kidd, D, Hancock, G R, Saynor, M J and Coulthard, T J, 2016. Application of synthetic rainfall data to long-term modelling of a rehabilitated landform, in Proceedings Life-of-Mine 2016 Conference , pp 75–79 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 28, 2016

An on-stream iron ore analyser has been developed in collaboration with Hamersley Iron Pty. Limited for determining the iron content of both lump (- 30 + 6 mm particle size) and fines (- 6 mm particle size) on conveyor belts. The analyser, which is called IRONSCAN, is based on pair production, and is now commercially available from Mineral Con- trol Instrumentation Limited (MCI) in Adelaide. It can be mounted under existing conveyor belts with minimal modifications to the conveyor struc- ture, and the presence of steel cables in the belt does not interfere once the analyser has been correctly calibrated. The analyser has been exten- sively tested on both lump and fines on the shiploading conveyor at Damp- ier, and typically the root mean square (r.m.s.) deviation between single IRONSCAN measurements and conventional chemical analyses is better than 0.5% Fe. It is currently being evaluated on - 150 mm ore from the primary crusher at Mount Tom Price, and initial results are encourag- ing. The principal advantage of IRONSCAN is that it provides rapid infor- mation on ore grades. But perhaps its greatest potential is at the primary crusher where conventional sampling and analysis is very expensive to Implement. at the University of Melbourne, and those of us who were his students had learnt of the application of physical chemistry to pyrometallurgical processing, pioneered by Chipman in the USA, Wagner in Germany, and Richardson in the UK. It was possible, by applying this theoretical insight to the equilibria between metal, speiss or Legierung, matte and slag phases, to find a practical and effective way to recover metal values in some residues which had been accumulating for many years at the NA, but which had defied all attempts to treat them to that date. There was also an opportunity to study the batch lead refining methods still in use at all lead refineries apart from Port Pirie, and to devise optimis- ing techniques which greatly improved the operations and effected considerable savings. Next the writer spent some six years alternating between the BHAS, Port Pirie, and Imperial Smelting at Avonmouth in the UK, concerned with lead or lead-zinc smelting, and the develop- ment of several further continuous lead refining processes, before returning to Australia as Section Leader, Process Development in the CSIRO Division of Chemical Engineering, Fisherman's Bend, Victoria. Metallurgical opportunities which arose during this last period included the problem of tin smelting which had developed over about a decade: the world's tin smelters had been accustomed to treating fairly high grade tin concentrates, con- sisting of almost pure cassiterite, with very little impurity-mostly quartz, limestone, iron oxides, and sundry other silicates. Most such concentrates had been produced from alluvial deposits, where nature had already done some of difficult part of the mineral processor's work-at who knows what recovery-so that he could now produce high grade concentrates at high recovery. The smelters were not really set up for the treatment of lower grade concentrates, such as could be made with reasonably high recoveries from rock mining. Thus they imposed such penalties on impurities and lower than desired tin grades, that whenever a mineral processor improved tin recovery at the expense of lower- ing grade, such an improvement entailed a lower financial return to the miner. There was clearly a need for improved understand- ing of tin smelting, (at that time shrouded in secrecy) and develop- ment of techniques better suited to the treatment of lower grade concentrates. As well as the practical development, a start was made with the computer modelling of the smelting process, with the obiect of optimising the process parameters.

Jan 1, 1988

The discovery of nickel sulphide deposits at Kambalda in 1966 heralded the development of ò an industry with a capital value of over $1.5 billion producing about 10% of the western world's nickel. ò an unprecedented exploration boom in which over $200 mil- lion was expended in 10 years in the search for nickel deposits. ò a major new class of nickel deposits stimulating exploration for similar deposits overseas. and rapidly propelled a struggling small mining and exploration company to become one of Australia's corporate giants, provid- ing a much-needed stimulus to economic activity in a region suffering from a severe downturn in its principal industry, gold mining. Production of nickel in Western Australia commenced at Kam- balda in 1967 and grew rapidly to a rate of over 30,000 t of con- tained nickel per annum in 1970, 40,000 t in 1973 and 50,000 t in 1975. Early production was aided by a shortage of nickel on the world market due to disruption of supply from the major Canadian producers, resulting in high free market prices for the metal. Since these early years, the industry has experienced a number of cycles of indifferent health due principally to market developments overseas, although the level of production of nickel in Western Australia remained fairly consistent. The two most serious of these, in 1977-8 and 1985-6, forced the closure of a number of mines. Current nickel prices are allowing remaining producers to enjoy a measure of relative prosperity, although there is little general speculation that this will be long-lived. Nickel deposits discovered in the exploration boom were almost exclusively related to ultramafic rocks. Volcanic peridotite (komatiite)-associated deposits, exemplified by the Kambalda ore- bodies, were the targets of initial exploration which was concen- trated on ultramafic sequences near lower stratigraphic contacts with underlying mafic rocks. Subsequently, discoveries made in coarse-grained dunites in interpreted intrusive settings broadened the search parameters.

Jan 1, 1988

By H Arvidson, B Spence, S Helm

Mining is the art of disturbing ground. All phases of a mine’s life cycle from exploration to building and operating a mine, through closure, has a physical impact on the earth. There is currently increasing public and stakeholder awareness owing to a wide range of issues including heritage protection, environmental stewardship, and social impacts therefore ground disturbance must be conducted in a way that honours and respects all agreements, regulations, legislation, and social expectations. A comprehensive ground disturbance permitting process has been developed through consultation with major mining companies and Traditional Owner groups. It operates from strategic business planning through to closure and rehabilitation. Adherence to the principles and process of permitting helps to minimise risk by ensuring that mining companies conduct their business in an inclusive, professional, reliable, and consistent manner that stakeholders reasonably expect, and that mining companies can be proud of. Built on a geographical information system, supplemented with a specialist database, this process allows request, review, and approval by subject matter experts, to operate in a common environment that is transparent, facilitates collaboration, improves efficiencies, and reduces the risk of error or omission. The application of new technology can effectively highlight changes that naturally occur in today’s dynamic ESG domain and provides the perfect platform to record actual disturbance against authorised and planned allowances. The social license to operate demands that strong governance of the ground disturbance process, described herein, can be demonstrated to any interested stakeholder, and mining companies recognise that this principle is central to the betterment of the mining industry.

Sep 18, 2023

Western Australia has often been referred to as the fly-in, fly-out capital of the world. Fly-in, fly-out is a commonly used practice in Western Australia due to the geographic size and isolated location of the vast resource projects. In the State today, approximately half of all resource sector employees operate on a fly-in, fly-out basis, with a minority utilising drive-in, drive-out arrangements. fly-in, fly-out arrangements are generally beneficial from a sustainability perspective, delivering significant economic, social and environmental benefits to regional communities, the State and nation as a whole. Skills shortages and labour supply issues mean that the industry will be required to discover new ways of attracting and retaining employees, one of which is the adoption of fly-in, fly-out work journey arrangements. By 2015, the minerals sector in Australia will need to employ 70 000 more employees than it currently employs to achieve predicted increases in output. Of the 70 000 additional employees required, 42 000 will be required in Western Australia, almost 15 000 in Queensland and approximately 5000 in both New South Wales and South Australia. The fly-in, fly-out lifestyle as a preferred method of employment should be recognised as a valid lifestyle choice by all members of the community, offering a profound improvement in the quality of life for large numbers of employees and family members. It should be acknowledged that whilst fly-in, fly-out is a preferred option for many companies and their employees, individuals who make a choice to engage in fly-in, fly-out must balance the difficulties associated with the work û isolation and separation from family and friends û against the economic and lifestyle benefits that the work offers. This paper aims to illustrate the significant steps that the resources sector has taken to facilitate the fly-in, fly-out choice by ensuring that the commute option is a safe, attractive and manageable work journey arrangement.

Jan 1, 2008

In October 1993 it was decided to undertake the fourth phase of mining at Big Bell. This decision followed the exhaustion of open pit reserves in January 1993. Two stages of mining were proposed for the new underground mine. The initial stage would mine the remnant ore, consisting of the rib and crown pillars and lower grade ore on the hangingwall and footwall side of the old open stopes, which were mined from the 1930s to 1950s. Most of the old open stopes were backfilled with either deslimed mill tailings or development mullock, both of which were economic to recover. However, the mineable ore from this resource was difficult to evaluate. The second stage focused on mining ore outside the remnant areas and was initially proposed as a Core and Shell method under a caving hangingwall. This method has since been superseded with sublevel caving, in part due to the very high and deviatoric stress conditions encountered at Big Bell and the relatively long mining cycle required for open stoping. The problems and challenges discussed in this paper will cover the identification of remnant ore reserves, dewatering the old workings, and remnant mining.

Jan 1, 1998

By S Gossmann, J Barlow, S Denner

"Unconventional gas resources, including coal seam gas (CSG) reservoirs, can be located above and below aquifers that provide groundwater for agricultural, industrial, urban and other uses. Development of these resources may, therefore, lead to potential impacts on groundwater supply.Management of reservoir/aquifer interconnections necessitates a program of focused data acquisition. For example, groundwater transfer from shallow aquifers to underlying CSG reservoirs may occur where CSG-containing units subcrop beneath shallow aquifers, possibly at significant distances from operating wells.Arrow Energy is undertaking studies of connectivity between aquifers including an investigation in collaboration with the Queensland Office of Groundwater Impact Assessment to evaluate connectivity between the Condamine Alluvium (CA) and CSG-containing Walloon Coal Measures (WCM).The Condamine Valley hosts highly productive agricultural land with groundwater resources heavily utilised for irrigation. Water demand outstrips available supply and groundwater has been subject to restrictions on further development since the early 1970s. Developments that could have an additional impact on groundwater resources in the CA are of major concern to local landholders. This paper describes: planned field investigations at two sites: 1. Stratheden, where pumping from the WCM will be undertaken 2. Daleglade, where pumping from the CA will occur how the data to be collected from field investigations will be used to refine predictions of flux between the CA and the WCM.CITATION:Denner, S, Gossmann, S and Barlow, J, 2013. Planned field investigation of connectivity between the Condamine Alluvium and Walloon Coal Measures, in Proceedings Water in Mining 2013, pp 91-98 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Nov 26, 2013

By Brotzmann K, Turner RE, Philp DK, Rusden RC

New approaches in the last decade have led to the supplemental use of raw coal as a direct energy source in several iron and steelmaking processes. The dependence on more expensive coke and electricity is being progressively reduced. The Technology Venture of Klockner Werke and CRA has pionered several of these developments and is pushing ahead to processes for scrap melting and direct smel- ting of iron where coal is the ONLY energy source. Such complex developments depend strong- ly on the experience gained in the simpler but related processes for coal use already in operation. The longer term implications of a successful coal-based direct smelting process for the world steel industry are substantial.

Jan 1, 1986

By S Yang, J Wang, J G. Ning

A series of conventional dynamic uniaxial compression (CDUC) tests and coupled static-dynamic loading (CSDL) tests were conducted using a split Hopkinson pressure bar (SHPB) system to explore the dynamic mechanical behaviour and fracture characteristics of medium sandstone on a microscale in the laboratory. In the CDUC tests, the dynamic uniaxial compressive strength of the medium sandstone was rate-dependent, while the dynamic elastic modulus was not dependent on the strain rate. Then, we proposed a generalised model to characterise the rate-dependent strength from 17.5 s-1 to 96.8 s-1. In the CSDL tests, with increasing initial pre-static stress, the dynamic elastic modulus and dynamic strength increased nonlinearly at first and then decreased. The results show that two classical mechanical types (ie Class I and Class II) are observed from the dynamic stress-strain responses of the CDUC and CSDL tests. By means of scanning electron microscopy (SEM), the micro difference of post-loading microfracture characteristics in Class I and Class II behaviour was identified. In Class I behaviour, intergranular fracture (IF) usually initiates at or near the grains, most cracks deflected along the grain boundaries, resulting in a sharp angular edge, then coalesces to the main fracture surface that splits the specimen along the direction of stress wave propagation. In contrast, Class II behaviour results from the combined IF and transgranular fracture (TF).

Nov 29, 2022

By C X. Zhang, W K. Ru, S C. Hu

To study the creep properties and the energy evolution characteristics of the weakly cemented rock (WCR) in western China, the creep deformation damage law of weakly cemented mudstone (WCM) under graded loading and the energy evolution characteristics of each creep stage were analysed based on the triaxial graded loading creep test of WCR. The results showed that as the confining pressure increased, the creep failure strength of the WCM increased from 9.5 to 24.8 MPa, and the relative displacement of the mineral particles in the mudstone increased gradually, resulting in a reduction in the fracture angle from 79.7° to 58.3°. At the same stress level, the strain energy Ue, the total energy U, and the dissipation energy Ud all increased as the confining pressure increased, but the growth rates of U and Ud decreased gradually, while the growth rate of Ue remained high. At the end of the stable creep stage, Ue increased slowly with the confining pressure, while U and Ud increased rapidly with the confining pressure, and their growth rates were basically the same. At the end of the accelerated creep stage, the growth trends of these three energies were all positively correlated with the confining pressure, Ue was significantly lower than that at the end of the stable creep stage, and Ud and U were further increased. These results revealed the unique creep properties and energy evolution characteristics of the WCR, providing a theoretical basis for long-term stability control of roadways that are built with WCR.

Nov 29, 2022

By Z R. Guo, Y Qiu, X F. Wang

Mechanical damage leads to the increase of effective stress of sediments, and pore closure hinders the discharge of methane gas. Ignoring the influence of mechanical damage leads to an excessive prediction of hydrate gas production. Therefore, a fully coupled model considering mechanical damage-chemical decomposition-gas-water two-phase seepage-temperature was developed in this study, and the model was verified by Masuda experiment. Based on the fully coupled model, the temporal and spatial evolution of the whole process of hydrate decomposition under the influence of three initial absolute permeabilities, three pressure drops and three water saturations were considered. The results showed that: • The gas production rate reached the peak value in a short time after depressurisation, and the peak value increased with the increase of the absolute initial permeability. The larger the initial absolute permeability was, the faster the damage variable reached the peak value. The porosity increased gradually before the damage variable reached its peak, and the gas flowed more easily. • When the pressure drop was low, the hydrate remained stable in solid form. As the pressure drop increased, the hydrate gradually began to decompose. The greater the pressure drop was, the faster the initial decomposition rate of the hydrate was. So the damage variable increased rapidly and the porosity increased continuously, resulting in a large gas production rate at the initial stage of decomposition. • The larger the initial water saturation was, the smaller the effective stress wss, resulting in the slow growth of the damage variable and the small change of porosity.While the gas relative permeability was small, it resulted in a smaller gas production rate, and hydrate decomposition was slower. • The damage variable showed a process of rapid growth first, then slowly increased to the peak, and then gradually decreased to a stable state. When the damage was considered, the hydrate decomposition time to the steady state was longer, and the gas production was about 80.68 per cent of that without considering the damage.

Nov 29, 2022

By C Laming, S Staude, D Hammond, S Sheppard, J Griffith, S Stanfield, S Marriott

Long Operations is located on the eastern slope of the Kambalda Dome in Western Australia. Kambalda hosts nickel deposits that are modelled to have formed from an exsolving sulfide melt from a parental komatiite melt. The nickel deposit model predicts a stratigraphical relationship where massive Fe-Ni-Cu-sulfides are deposited in troughs at the base of komatiite channels. The basal contact of the sulfides is generally tholeiitic basalt. The Kambalda geological sequence form a dome structure with a granodioritic core and have undergone tectonic and metamorphic overprinting, resulting in the formation of upper greenschist to lower amphibolite-facies units.On the basalt-ultramafic contact, within the Long Operations, there are two separate channels hosting seven different orebodies. The Moran orebody is the most undisturbed orebody at Long Operations, with many primary magmatic textures preserved, making it ideal for studies to improve the existing nickel sulfide formation model. Detailed exploration and production infill drilling and systematic sampling indicates consistent nickel tenor variations over the entire Moran orebody. This was also observed in other deposits in Western Australia and was explained as metamorphic variations. Similar variations are observed with some trace elements that cannot be explained by metamorphic overprint but with gravitational segregation in the liquid sulfide. Other more complex trace element patterns (eg Cr) require additional explanations and are partly originated from incorporation of underlain basalt and sediment and partly from gravitational segregation.From a mining perspective, the Moran orebody can be used as an example of modern high-speed mining, but at the same time preserving samples for the future and allowing knowledge from the geological context and geochemical signatures to improve future exploration.CITATION:Staude, S, Marriott, S, Griffith, J, Laming, C, Hammond, D, Stanfield, S and Sheppard, S, 2014. Improvement of existing ore-forming models due to systematic sampling during mining – an example from Kambalda, Western Australia, in Proceedings Ninth International Mining Geology Conference 2014 , pp 341–348 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 18, 2014

WMC Limited, owner/operator of Olympic Dam, the worldÆs largest underground uranium mine and the fourth largest underground copper mine has now completed an expansion that has been classed as a benchmark in the mining industry. To achieve a production increase from 3.4 to 9.25 Mtpa from an underground mining operation in two years was a major challenge, it was essential to review the overall materials handling system from æthe face to the stockpileÆ. The challenge was two-fold:How to deliver 30 000 tonne of ore per day to the processing plant, from a single underground mine? To provide the processing plant with a consistent metallurgical feed. This paper traces the transformation from the old to the new materials handling system at Olympic Dam.

Jan 1, 2000

All companies and individuals who embark on a business venture incur costs. For the most part these costs can be conveniently categorised, firstly into capital and operating costs and then into the various elements of these major cost centres. Although the nature of expenditure naturally differs as between industries certain broad cost types are characteristic of all heavy industries. The capital costs of gaining access to an orebody, equipping a new mine, building a treatment plant and perhaps refining and smelting facilities are likened to capital expenditure by a manufacturer on new plant and equipment required for an expansion or new product innovation. Similarly the day to day costs of labour and materials employed in the running of a mining operation can be likened to similar costs in other heavy industry. There is another group of costs that are not so easily categorised. Most industries incur unavoidable costs that do not form part of the direct or capital costs of physical production. These costs include taxes and other payments to government and research expenditure. The mining industry has a particularly heavy burden of non-production costs and it is the objective here to highlight and analyse a few of them. These costs are exploration expenditure, infrastructure expenditure, royalties and income tax. This is not to suggest that these are the only major non-production costs that the mining industry needs to bear. The industry may incur significant costs for environment protection, land tenure maintenance and on liaising with Government on a wide variety of matters. It is for reasons of subject manageability that the list is confined to the four costs mentioned. For the mining industry, exploration and infrastructure expenditure, royalties and income tax have several distinguishing features. Firstly, they are generally proportionately large costs. Exploration and infrastructure expenditure for example, could well exceed mine development costs. Depending on how royalties are levied, they may be very high in relation to profits earned and many in fact exceed profits. Secondly, except for income tax, they are costs that are generally not payable by other industries. Exploration expenditure is in some respects comparable with industrial research and development. However, because mines are wasting assets exploration is necessary for survival, and it is likely to form a larger part of costs per dollar of profits or sales than R&D. It can therefore be said that exploration is of far more significance to the miner than R&D is to the typical industrial company. Furthermore, unlike exploration expenditure, R&D results are transportable and patents permitting, transferable. The infrastructure burden that miners must carry is unique to the industry. Whereas urbanised industry is not usually liable for the capital cost of power, water, transport, townships and community facilities, the miner must finance these projects himself. Neither the payment of royalties, nor of course, income tax are unique to the mining industry. Royalties are more properly described as a unique charge on some primary industries but however described, they are a charge that manufacturing and service industries do not have to pay. Whilst we all pay income tax, the mining industry's uniqueness derives from the special problem that the industry has in arriving at annual net income in view of the capital intensity of the industry, partly due to expenditure on infrastructure, the indefinite life of capital equipment and its unpredictable residual value, funds expended on exploration and long lead times associated with a mine development. The third distinguishing feature of these costs is that, with the possible exception of exploration expenditure, they are heavily influenced by the policies and actions of Government. As such the industry has a responsibility to promote the industry by emphasising its potential to improve national product including exports and by requesting that the Government provide for the industry in its long term planning and seek its co-operation to prevent the industry incurring inequitable penalties relative to other industries.Finally, exploration and infrastructure expenditure are significant because they are front-end charges on a project. When due allowance is given the time value of money and the deferment of income from a mining development to which they relate, exploration and infrastructure expenditure assume greater importance than the raw money expenditure suggests. For all these reasons, exploration and infrastructure expenditure, mining royalties and mining income tax are worthy of detailed study. This is the purpose of this paper. The objective is to examine the determinants that give rise to them and provide some thoughts on their impact on on-going and potential mining developments and, where relevant, to make some suggestions as to how they may be minimised.

Jan 1, 1977