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In November 1992, the Internal Revenue Commission (IRC) was formed from the rperggr of the Papua New Guinea Taxation Of- fice (PNGTO) and the Bureau of Customs, and now has the re- sponsibility for the administration of direct and indirect taxes on a national basis in Papua New Guinea (PNG). Since that date we have undertaken many initiatives to make the new organisation more efficient and responsive to clients' needs. Income Tax The mining industry is catered for, in respect of income tax, un- der a separate taxation regime within the Income Tax Act (ITA), Division 10, as well as some general provisions within that Act as may be applicable. Division 10 is itself broken up into subdi- visions to cover the different types of mining leases, namely Spe- cial Mining Leases (SMLs) and Mining Leases (MLs), and peri- ods of time during which those sub-divisions apply. Ring Fencing Income tax assessed on the mining industry, with the exception of Mining Leases (these will be explained later), has a project basis of assessment, that is, each project is assessed separately as if the taxable income of the taxpayer from operations attributable to the project was the only assessable income derived by that taxpayer. This is often referred to as "ring fencing". This is an important point to consider because losses from unsuccessful projects cannot be set off against income from those that are suc- cessful, except in very limited specific circumstances, such as where an unsuccessful exploration licence is cancelled or surren- dered. The project basis of assessment applies to both resident and non-resident companies. A relaxation in the 'ring fence' provisions was applied from 1st January 1995, where ten percent of exploration expenditure, in- curred in areas outside of Special Mining Leases and Petroleum Development Licences in a particular year of income, can be claimed as an outright deduction which is limited to ten percent of the tax otherwise payable in that year. This was introduced to encourage exploration in PNG.

Jan 1, 1997

By D Suppel, Y Miezitis, S Jaireth

The competition between various options for the use of land is ever increasing. Commonly in Australia large tracts of land were un-encumbered by sweeping land use option limitations, but this situation has been rapidly altering in recent decades as governments are obliged to maximise the utility of the land for a broad range of competing interests. While the interests of miners have always been considered, the effects on limiting access to land for exploration and possible mining have not always been effectively incorporated into decision-making processes. As a result the challenge for national and state organisations representing these interests has been to develop a transparent process to allow for the mineral potential of an area to be systematically assessed and for information to be presented for use by specialists and non-specialists. Government agencies are called upon to implement government policy but also to provide accurate and meaningful advice which can assist in policy and land use decisions. Commonly timeframes are short and information can be less than complete. Nevertheless on-going decisions are made based upon the best available understanding. It is in this operational framework that the methods described in this paper are set. The paper describes a process for quickly and systematically providing advice on mineral potential for use by government agencies and ultimately the community within tight time and resource constraints. It is a method of combining the accumulated knowledge about mineral resources and their potential and presenting this information in an easily accessible form which can be used in a negotiation and policy development environment. Development of the method was undertaken to meet the needs of the Regional Forestry Agreement process in Australia. The method has been applied to study areas in New South Wales, Tasmania, Western Australia and elsewhere. Examples in this paper are taken from north eastern New South Wales.

Jan 1, 1999

By Z Li, Z Yan, M Yang

Recycled cement paste (RCP) is a kind of CaO-rich recourse, which is separated and recycled from waste concrete. Due to its chemical composition, RCP could partially replace lime as a flux and be loaded into electric arc furnace (EAF) steelmaking process. Rapid RCP assimilation and liquid slag formation have significant effects on EAF steelmaking process. In this study, the dissolution behaviours of RCP and lime at temperatures of 1400°C to 1500°C were investigated using static dissolution experiment. The dissolution rate, interfacial microstructure, as well as dissolution mechanisms were discussed. It was found that the dissolution rate of RCP was much higher than that of lime. RCP could be completely dissolved into slag in 60 secs at 1500°C. The dissolution rate of lime was in range of 3.910-4 g/(cm2ꞏs) to 2.610-3 g/(cm2ꞏs), while that for RCP was in range of 1.510-3 g/(cm2ꞏs) to 4.910-3 g/(cm2ꞏs). As for lime dissolution, a dense layer of dicalcium silicate (C2S) generated at the dissolution interface, and the diffusion of Ca2+ in C2S layer was the limited step for lime dissolution. Some of calcium ferrite could be observed at the interface between lime and C2S layer. As for the RCP dissolution, there is no obvious product layer of C2S formed at the dissolution interface, Fe2+ continuously diffused into RCP layer during the dissolution, and small amount of FeOꞏMgO solid solution generated and gathered at the dissolution interface. The dissolution rate of RCP in EAF slag was quite higher than that of lime, partially add RCP as flux in EAF could accelerate the slag formation process.

Aug 21, 2024

The term æindustrial mineralsÆ covers a wide range of minerals, from diamonds to silica sand, which are fundamental to the sustainability of a wide range of industries, from drilling mud to autocatalysts. The paper commences with an overview of the industrial minerals markets, with particular reference to the characteristics that impact on the development of a successful marketing strategy. This is followed by the identification of the steps to be taken in the negotiation and execution of an industrial minerals sales contract, from identification of the appropriate product through negotiation of the contract to ongoing customer relations. An understanding of your customerÆs business is fundamental to a mutually successful long-term relationship with that customer. The paper concludes with an overview of the techniques and approaches through which such a relationship may be achieved and maintained.

Jan 1, 2006

By J MacNeil, R Dimitrakopoulos

As open pit mining of a deposit deepens, the cost of extraction may increase up to a threshold where transitioning to mining through underground methods is more profitable. This paper provides an approach to identifying an optimal depth at which a mine should transition from open pit to underground mining. The value of a set of candidate transition depths is investigated by optimising the production schedules for each depth’s unique open pit and underground operations. By considering the sum of the open pit and underground mining portions’ value along with the cost of transitioning corresponding to each candidate transition depth, the optimal transition depth can be identified. The optimisation model presented is based on a stochastic integer program that integrates geological uncertainty. As an input, the stochastic integer program utilises a set of several stochastic simulations that represent equally probable scenarios of the mineral resource. This group of simulations describes the uncertainty in the deposit, while the optimiser aims to maximise value based on discounted profits of both the open pit and underground components of the deposit.CITATION:MacNeil, J and Dimitrakopoulos, R, 2014. A stochastic optimisation formulation for the transition from open pit to underground mining within the context of a mining complex, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014, pp 363–368 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014

By D Connelly

The Iron Road Limited Central Eyre Iron Project (CEIP) area, located on the Eyre Peninsula of South Australia, covers extensive Archaean iron formations that occur as coarse-grained magnetite bearing gneiss. The cumulative strike length, estimated from aeromagnetic data, is at least 95 km.The project is located in a grain growing area 185 km west of the existing iron ore and steel making operations of OneSteel at Whyalla. A narrow gauge railway built to transport agricultural products to the deep-water port of Port Lincoln, 175 km to the south, traverses the project area. A number of well-serviced rural townships are located nearby. Current activities include resource expansion drilling, extensive metallurgical test work, community consultation and a Prefeasibility Study (PFS) that commenced in April 2010.The PFS has encompassed the Central Eyre Iron Project, comprising the three significant iron occurrences (Warramboo, Kopi and Hambidge) and was completed in early 2011. Extensive test work programs and metallurgical modelling confirmed viable process options for the project, using simple off the shelf processing technology.Preconcentration by coarse cobbing yielded promising results, and is the key to reducing not only the capital expenditure but also the operating cost, in particular the power cost, which is the highest operating cost component of a magnetite benefi ciation plant. The ore is also amendable to high pressure grinding rolls (HPGR) processing. This offers a potential for further reduction of the energy requirements.Test work also confirmed that a high grade blast furnace quality concentrate (~68 per cent Fe) can be produced at a relatively coarse grind (P80 106 µm).

Jul 11, 2011

Great new drilling results! What's so sinful about being a multi-national company? Overseas protestors flown to Australia for a free holiday How to counter the protectionist danger? Our current economic standing Over-regulation puts a convicted paedophile on the payroll The broken window fallacy Mining - A shared history Aristotle and the camels A brighter future? Something over which we do have far greater control, i.e. leadership within our own industry My challenge to you The expanding gold- producing company of which I am proud to be Chairman, Croesus Mining NL, is by definition a æmultinationalÆ. Our shareholders are based in 36 different countries, 77% of our 107 million shares are held in Australia, 23% are held outside Australia, and include New Zealand holdings of 7%. In September, Croesus Mining presented our company at the Mining 2000 Forum in Melbourne, a city caught up with multinational protestors demonstrating against multi-national companies.  

Jan 1, 2000

By K E. Mudzanani, T A. M Msagati, D T. Maiga, T T. Phadi, M R. Letsoal, B M. Chabalala, S W. Limani

This paper addresses critical environmental, health, regulatory and scientific concerns related to gold mining activities in the specific area of Barberton, Mpumalanga, South Africa. The paper thus calls for informed decisions to be made by the authorities to safeguard both the environment and people’s health. The novelty of this study is based on its comprehensive nature of the simultaneous assessment of both cyanide and potential toxic elements (PTEs) in tailings, while taking into account their composition variability over time. By combining these aspects, it is then possible to provide a holistic understanding of the contamination risks associated with mining tailings and thus justify the need for regular monitoring and supervision to ensure compliance against regulatory limits. Additionally, this paper considered investigating the dynamic nature of tailings, which are subject to changes in their chemical composition due to exposure to weathering by various agents. In this study, the determination of weak acid dissociable (WAD) and free cyanide in tailings was performed using a validated method employing the South African Council for Mineral Technology (MINTEK) Laboratory Cynoprobe. The PTEs in tailings were determined by an inductively coupled plasma optical emission spectrometer (ICP-OES). The results revealed that the tailings contained primarily substantial amounts of PTEs, including Fe (87 566 to 37 800 mg/L), Cu (271 to 110 mg/L), Mn (2100 to 680 mg/L), Ni (400 to 390 mg/L), Zn (180 to 68 mg/L), Cr (645 to 510 mg/L), As (450 to 128 mg/L), and Pb (up to 35 mg/L). The cyanide concentrations in tailings varied between 0.20 mg/L and 0.26 mg/L for free CN (with a mean of 0.23 mg/L in water leaching), 0.23 mg/L to 0.28 mg/L for free CN (with a mean of 0.25 mg/L in alkali leaching), 0.24 mg/L to 0.35 mg/L for WAD CN (with a mean of 0.28 mg/L in water leaching), and 0.31 mg/L to 0.39 mg/L for WAD CN (with a mean of 0.35 mg/L in alkali leaching). The measured concentration of cyanide and the PTEs was compared to the minimum permissible levels enforced by the South African Department of Water and Sanitation (DWS) and the Water Research Commission (WRC) regulations that govern the disposal of hazardous constituents into the environment. Additionally, it was observed that the concentrations of contaminants in the tailings exceeded the acceptable minimum limits for hazardous waste exposure, posing risks to the environment and human health.

Apr 16, 2024

Various influences determine how an Environmental Management System (EMS) for a mining or petroleum project is developed and administered. These influences include the environmental and resource legislation applying to the project, the culture of the organisation, the environmental sensitivity of the area, and the administrative policies of the regulatory agencies involved. While financial penalties and even imprisonment may be imposed for non-compliance with environmental legislation, there are other compelling reasons for the establishment of an effective EMS. If a company wishes to be considered by Governments for the grant of exploration or mining rights, it is important that it can demonstrate environmentally responsible operations at existing facilities. The development of an effective EMS requires commitment from the Board of the company and the issue of an Environmental Policy to empower all levels of the staff and workforce to achieve environmentally responsible operations. This must be supported by the provision of appropriate human and financial resources, and environmental training of staff at all levels from the Board to the mine site, workshop and office. A regular environmental auditing programme is essential to ensure that the EMS is in place and is effective in achieving compliance with regulatory requirements, corporate policies and protection of the environment. An EMS can be developed on the basis of existing management systems, quality management systems, existing and emerging environmental management standards (such as BS7750 and ISOI4000), or sophisticated computerised systems which may incorporate international experience, standards, and codes of practice.

Jan 1, 1995

By D Reid

The engineering properties of soils and tailings often exhibit significant anisotropy. One area where this has been well documents is undrained shear strength. Materials sheared in directions close to the principal stress direction in situ, i.e. triaxial compression, typically exhibit higher undrained strengths than those sheared in other directions such as simple shear. Importantly, along the most common critical failure surfaces relevant to tailings stability, whether primarily through tailings or a critical foundation layer, saturated materials are generally much closer to the simple shear loading direction than triaxial compression. Therefore, testing undrained shear strength of tailings or foundation soils in triaxial compression is likely to result in overestimation of the relevant strengths for design. Although these issues have repeatedly documented in the geotechnical literature for over three decades, they are not appreciated sufficiently across our industry. In an attempt to address and highlight these issues, a review is carried out of historical reference to the importance of simple shear loading. Attention is then drawn to the techniques applied in three recent post-failure investigations, where simple shear testing was applied. Finally, some relevant laboratory test results from a recent project in which the author was involved are outlined.CITATION:Reid, D, 2018. Importance of the simple shear loading direction to the stability of tailings storage facilities, in Proceedings Mine Waste and Tailings Stewardship Conference 2018, pp 274–284 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 23, 2018

By W D. Erskine, M J. Saynor

Ranger Uranium Mine, surrounded by Kakadu National Park is located in the Alligator Rivers Region (ARR) in the wet-dry monsoonal tropics, 250 km east of Darwin, Northern Territory. A trial landform (TLF), measuring approximately 200 m by 400 m (8 ha) was constructed during late 2008 and early 2009 by Energy Resources of Australia (ERA), adjacent to the northwestern wall of the tailings storage facility at the Ranger Mine. A collaborative research program involving the Environmental Research Institute of the Supervising Scientist (eriss) and ERA, has been underway to measure long-term (five to ten year) rainfall, run-off, sediment and solute losses, seepage and vegetation establishment on the TLF (Saynor et al, 2012; Lowry et al, 2014). This paper reports on bed load losses from four erosion plots built on the TLF. These were achieved by physically isolating approximately 30 × 30 m areas from the surrounding landform on three sides with sidewalls along with an open polyvinyl chloride (PVC) pipe on the downslope side. Each plot was instrumented with a range of sensors. Two plots, 1 and 2 were constructed on waste rock material, while plots 3 and 4 were constructed on waste rock mixed with approximately 30 per cent lateritic material. Plots 1 and 4 had tube stock planted in early 2009, and plots 2 and 3 were initially planted by direct seeding in July 2009 and were infill planted with tube stock in January 2011.CITATION:Saynor, M J and Erskine, W D, 2016. Bed load losses from experimental plots on a rehabilitated uranium mine in northern Australia, in Proceedings Life-of-Mine 2016 Conference , pp 168–171 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 28, 2016

By G R. Power

A useful way to assess potential productivity of SLC mines is by quantifying tonnes/drawpoint/day to be extracted from the mine. However limited industry information has been published to help mines benchmark this number. This paper assesses industry data which can be used to support estimates of potential productivity from new mines based on tonnes/drawpoint/day. The information used has been extracted from historical production schedules which indicate what was achieved, rather than what was planned. It has been assessed using an algorithm created for the purpose and is presented with discussion of varying definitions of active drawpoints, analysis of the data and inquiry into some of the underlying contributing factors.

Mar 15, 2021

By S F. Wang, J J. Yin

Dust pollution poses a persistent challenge within mining processes, giving rise to a spectrum of concerns, including occupational diseases, mechanical degradation, diminished visibility, and the potential for dust explosion incidents. Existing dust detection and monitoring methodologies face limitations, including insufficient measurement accuracy and intricate processing procedures. Consequently, a comprehensive identification and evaluation system rooted in image processing technology is proposed to facilitate real-time measurements of dust pollution in mining worksites. The study primarily employs grey scale average and fractal dimensions to characterise particle features evident in collected dust images. As a result, the data processing platform can dynamically process data and present dust pollution conditions. Notably, this research integrates the monitoring and assessment of dust pollution with the systematic adjustment of mining parameters, ventilation parameters, and strategies for dust reduction. Through statistical analysis of dust concentration and particle size during mining processes, rock properties such as components and cuttability can inform mining parameters. This information, in turn, guides detailed excavation strategies, including cutterhead speeds, torque, and excavation speed. Similarly, analysing dust characteristics derived from images is a valuable resource for gaining deeper insights into the efficacy of implemented ventilation strategies. By harnessing vision-based information detailing dust concentration and distribution, a wealth of direct guidance becomes available for refining ventilation parameters. This encompasses crucial aspects such as the selection of appropriate ventilation systems tailored to the specific mining environment and the optimisation of operational conditions for ventilation fans. Additionally, the detailed information derived from the visual data allows for strategic decisions on factors like the spatial arrangement of ventilation outlets and the calibration of airflow rates. Moreover, precise choices for dust reduction measures and parameters can be made based on the prevailing dust conditions. Upon real-time monitoring of dust pollution using the proposed method, corresponding measures such as spraying and foaming can be promptly implemented. Crucial parameters, such as spray angles and volume, are integral to these application processes. In essence, the proposed method assumes a pivotal role in not only dust monitoring but also the formulation of preventative and control measures within mining processes.

Sep 1, 2024

By F Ramos

Conventional techniques for resource estimation generally involve the laborious analysis of variograms and the specification of parameters for covariance functions. In large deposits, construction of resource models and their update require significant amount of manual work, expert knowledge and time. In this paper we take a machine learning view to the problem of resource estimation. This is a non-parametric Bayesian method, leading to automatic parameter estimation (learning). Through Bayesian learning, the parameters of the model can be obtained by optimising a quantity known as the marginal likelihood. The main advantage of this approach over conventional maximum likelihood estimators is that the objective function incorporates the OccamÆs razor principle. This allows the comparison of different statistical models û for example, models designed with different covariance functions û and naturally penalises complexity, thus avoiding overfitting. Our technique presents significant flexibility for the definition of mean and covariance functions and permits the usage of more sophisticated models.The second contribution of this work is the formulation of a data fusion mechanism that continuously updates the resource model. As mining progresses, more information becomes available. For example, the hardness of the rocks can be measured while drilling blast holes, grades of ore and contaminants are obtained from cone logging. This information is in general available at a finer spatial resolution but can be more uncertain. The data fusion mechanism can seamlessly estimate the uncertainties of the different types of information and fuse them as new measurements are acquired. This procedure can significantly improve the quality of the resource model, defining new grounds for stochastic mine planning. We demonstrate the effectiveness of our approach in estimating iron ore deposits by integrating information about different grades.

Sep 26, 2011

By Warren M

Many Australian tunnelling and mining companies regularly investigate different methods or equipment in an attempt to keep ahead of their competition. Sometimes the result is a new approach or process which wins a tender or provides an advanced solution to a problem.The Australian Government has a policy of encouraging forward thinking among Australian companies and provides a range of incentives. One of these incentives is currently available retrospectively to 1985 - 86, and the registration process is relatively simple with only one form to be completed. Companies who investigate methods of raising productivity could be reimbursed for the costs of the investigation.

Jan 1, 1993

By O J. Restrepo Baena, S Nowosad, R Webber-Youngman, N Mojtabai, P Foster, A Binder, S Hazuria, erson, S Raval, L Liu

As the mining industry faces times of change, new challenges arise to ensure raw material supply for the younger and future generations. Different scenarios are currently shaping the way we mine and teach mining engineering. Led by an increasing demand for raw materials, net zero requirements for improving long-term operation performance, technological advancements such as automation and digitalisation, safety improvements, environmental considerations and a need for social acceptance, mining is pursuing to change and adapt to these requirements at a faster pace. Such changing times raise new concerns, one of the most relevant is the lower number of students interested or enrolling in mining engineering and related fields leaving mining engineering as one of the less preferred career options between the younger generations. Nonetheless, it is essential to continue addressing and supplying the skill sets that is suited to contemporary and future of the mining industry. To this end, globally, academia is currently undergoing several initiatives such as curricula updates and adaptation, up skilling, improving teaching practices and techniques, including e-learning techniques, enhancing industry-academia and inter-university collaboration, and much more

Sep 1, 2024

By P Hofmeyr, D Pretorius

Iron ore, which is transported by rail from the iron ore mines at Sishen in the Northern Cape, to the Saldanha Iron Ore Terminal in the Western Cape, needs to be analysed while loading to be exported. Every shipment will be sampled and an average analysis of the ore will be produced which is required by the purchaser at the receiving port. On arrival at the iron ore terminal at Saldanha, the ore is tipped from the rail trucks onto conveyor belts to be either stockpiled or direct-loaded. The conveyor belts run under the sampling plant and the ore is sampled periodically by means of an automated cross-belt sampler. This is the first iron ore port sampling facility in which the automated sampler is situated above the conveyor belts and not adjacent to them. A portion of the primary sample taken off the belt is moved to the dedicated sampling laboratory situated behind the cross-belt sampler and over the conveyor belt lines. The sample is split in the laboratory, one split being used for moisture and particle size determination and the other part is dried and then analysed by means of X-ray fluorescence spectrometry (XRFS) on fusion beads for major and minor elements. Particular care is taken to obtain high quality data for penalty elements.This sampling plant is completely automated and from the primary cross-belt sampler to final analysis by XRFS no manual steps are involved. This has meant that some processes are used which are suitable for automation and are ISO compliant but not necessarily ISO-certificated. The ISO manuals were developed with manual laboratory processes in mind. Precautions are also taken to maintain the integrity and representativity of the samples. This paper is a case study?describing?the automated sampling systems used at the Saldanha Iron Ore Terminal sampling facility and laboratory from conveyor belt to analysis.CITATION:Hofmeyr, P and Pretorius, D, 2012. Automated sampling of iron ore for analysis at the Saldanha Iron Ore Terminal in South Africa, in Proceedings Sampling 2012 , pp 25-32 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 21, 2012

By Mwaba CC

Ok Tedi Mining Ltd has been using flotation for the production of copper/gold concentrates from a complex copper sulphide ore for several years. During this period, much effort has been devoted to metall- urgical treatment of the ore. This paper examines some of the mineralogical aspects of the sulphide minerals in the ore using the electron microprobe analyser. Results have revealed the complexity of the copper sulphide minerals and in particular, chalcocite. Analysis of both plant and laboratory flotation products has provided further insight into the effects of mineralogy on the flotation of copper and iron sulphides. A significant observation is that some of the pyrite minerals apparently exhibit natural floatability. The implications of the mineralogical characteristics of the sulphide minerals on the flotation of the ore are also discussed.

Jan 1, 1991

By M Morey

Ok Tedi Mine is located eighteen kilometers from the Irian Jaya border in the Star Mountains, Western Province, Papua New Guinea. Sequential flotation concentrators produce a copper / gold concentrate for market, and a pyrite concentrate for environmental containment, with low sulphur tailings from the pyrite flotation sequence being discharged to river. Strict sulphur assay targets are set for the riverine discharge. Current porphyry and skarn ore blends from open pit operations at Mt. Fubilan will cease by 2017. However, drill cores indicate an economic ore body in the skarn ores surrounding and below the current pit limits. With proposed mining from a western pit wall ‘cut back’ and an eastern pit wall underground operation, potential for ore ageing in sub level cave underground stockpiles is apparent. With little information in the literature, Ore Ageing test work at prefeasibility level consisted of multiple one tonne stockpiles of -50 mm crushed rock. For the bankable feasibility study, a successful test work program was implemented utilizing 40 tonne ROM ore stockpiles composed of exposed pit extensions of future ores. Realistic ageing profiles of Skarn ores were obtained from one tonne monthly samples subjected to laboratory testing. Test work outcomes included:• Similar ore ageing profiles from both the pre feasibility study (PFS) and feasibility study (FS) programs, suggesting ore susceptibility to oxidation has greater effect in ore ageing than rock size for Ok Tedi skarns. • Laboratory rougher flotation of pyrite showed significant variation in sulphur recovery rate, suggesting three classes of pyrite floatability.• Laboratory rougher flotation of both copper and pyrite for up to 19 months ore ageing from 11 stockpiles, suggested three stages in the ore ageing process.

Aug 8, 2011

By J E. Everett

Ore selection is generally a highly subjective task, with emphasis on producing product with a consistent target grade matching a perceived market requirement. A composite selection criterion ‘Comp’ (a linear function of the grade vector) can be used to maximise ore tonnage at a specified target grade (in Fe and contaminants) extractable from a block model. The blocks correspond to the selective mining units, with grades interpolated from diamond drill hole data. An iterative procedure has been developed to identify the coefficients and cut-off value for the composite function ‘Comp’, maximising potential ore tonnage at target grade.Commonly, target grade is predetermined by marketing; however, there is no guarantee that maximising ore tonnage at a specified target grade maximises the potential value of the mine. If the value of ore could be expressed as a linear function of the grade components, then these coefficients would be appropriate for the selection criterion ‘Comp’. The cut-off value for ‘Comp’ would correspond to the marginal cost of production; all blocks with a ‘Comp’ score above the cut-off would be classified as ore; and the cumulative grade of these ore blocks would be the average product grade over the life of the mine.Unfortunately, no such value function for iron ore is generally available. Methods for estimating the value function are discussed, using the spot price and sensitivities based either upon operational tolerances for Fe and the contaminants or upon published price differentials. This approach has been applied to an anonymous Pilbara deposit with about one million blocks averaging 1.1 kt. It is shown how the optimal target grade, cut-off grade and maximum tonnage can all be explored as a function of marginal cost and iron ore price. Alternatively, given marginal cost and an iron ore price, the effects of changing the tolerances (and therefore the relative costs of the contaminants) can also be explored.It is suggested this procedure can enable informed decision-making for an iron ore mine. Rather than setting final policy for the entire life-of-mine, the method enables target grades and tonnage estimates to be revised by re-computation as the mine life proceeds to recognise changes in market conditions and knowledge about the resource.It should be emphasised that this paper is concerned with ore selection rather than ore sequencing. Appropriate ore selection is a necessary but not sufficient condition for maximising value. Having identified the set of blocks that potentially maximise value, the sequence in which they are mined will present a trade-off between producing at constant grade and extracting high value ore early. The sequencing issue is not considered here. It is shown that optimum ore selection for an open pit mine is independent of any consideration of discount rates, although ore sequencing will depend upon the time value of money if the product grade is to vary across time.CITATION:Everett, J E, 2015. Ore selection to maximise value, in Proceedings Iron Ore 2015, pp 443–448 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015