Search Documents

By C B. Smith, G L. Boxer, S W. Moss, A L. Jaques, V Lorenz, M J. Rayner

The Ernest Henry Iron Oxide Copper Gold deposit is hosted in a large dilation between two moderately dipping shear zones found in the footwall and hanging wall of the deposit. These shears are controlled by a large diorite intrusion to the north-east and south-west of the deposit, formed ~1660 Ma. A shear zone dubbed the ‘Interlens’ uncovered through underground workings truncates the main orebody into two lenses, and is hypothesized to have formed in conjunction with the Hanging Wall Shear Zone and Footwall Shear Zone. All three shears dip moderately to the SSE (50–140) from open cut exposures through to the current mining horizon approximately 800 m below the surface. Routine geological work and a capital drilling campaign has identified a significant flexure in these sub parallel ore bounding shears with increasing depth. A shift in shear orientation in the Interlens over approximately 100 m vertically from ~50° to the SSE to a steep, easterly trend (~85° to the east) is observed in both drill core and exposures in the underground workings. It is hypothesized the diorite intrusive to the south-west of the deposit controls the shear zone geometries at depth. The geometry of the Interlens mirrors the surface expression of the Proterozoic package of the orebounding shears to the south-west of the deposit, suggesting the surface geometries of the shear zones are consistent with depth. Additional drilling to explore the validity of this hypothesis is planned for the near future to better understand the structural controls on the Ernest Henry mineralisation with increasing depth.

Mar 22, 2022

By P Hunger, H Günter, F Heinicke

High pressure grinding rolls (HPGR) have been used for more than 20 years to grind iron ore pellet feed. Besides coarse comminution (crushing), where HPGR are installed upstream of the ball mill, there are numerous flow sheets where HPGR are used after ball milling and dewatering for re- or finish grinding.There is a clear growing interest in grinding of pellet feed with HPGR during the last few years. In addition to their known advantages of low specific energy consumption, high availability, low steel consumption and improved pelletising processes the lower environmental load (reduced or no water consumption) became a strong driving factor for the application of HPGR in pellet feed grinding.This growing demand increases the interest in better understanding of the HPGR grinding process with fine iron ore concentrates. One of the most important process parameters is the moisture content of the feed material which influences the performance of the HPGR enormously. The HPGR can react to fluctuations of the fresh feed properties to a certain degree by adjusting grinding force and roller speed. Nevertheless, there are limitations by the physics of the compression process and the capability of water absorption by the concentrate. The capability varies for different concentrates and different specific surface areas. This fact has to be considered during engineering of the beneficiation plant.The paper focuses on the influence of feed moisture content on the HPGR performance in view of throughput, increase of Blaine number and process stability on the basis of numerous pilot plant tests, modelling results and industrial experiences.CITATION:Heinicke, F, Günter, H and Hunger, P, 2017. Influence of feed moisture on high pressure grinding roll pellet feed grinding, in Proceedings Iron Ore 2017, pp 187–194 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 24, 2017

By A T. Spathis, K E. Leslie, K R. Blay

Many open pit mining operations seek to control blasting-related movement of ore and waste to minimise loss and dilution. Tracking the movement of ore boundaries can result in the maximisation of ore recovery and minimisation of waste sent to the mill, thereby optimising the economic performance of the operation.A novel solution for tracking the ore–waste boundary location before and after a blast uses subsurface markers placed along the boundary with all measurements and scans conducted remotely from the blast block. Upon system activation, user-operated equipment on the surface determines the three-dimensional (3D) location of the subsurface markers.The patented system concept combines two electromagnetic mechanisms, magnetic positioning and radio frequency through-rock communications to enable remote battery-powered markers, buried within the rock to be accurately located in 3D space.Field trials at a quarry have demonstrated the system can comfortably handle over 100 subsurface markers with a complete scan, including set-up, taking less than an hour. Location accuracy for each marker in 3D space is better than 0.5 m at a range up to 50 m from the magnetic source, and the system has an overall operational range in excess of 75 m.CITATION:Blay, K R, Spathis, A T and Leslie, K E, 2015. A remote, rapid and accurate three-dimensional ore waste boundary tracking system, in Proceedings 11th International Symposium on Rock Fragmentation by Blasting, pp 297–306 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 24, 2015

By S C. Dominy

For any gold deposit-based geometallurgical study, the collection and processing of representative samples for gold grade and recovery tests is critical. Sampling protocols should be designed to suit the style of orebody in question. The proportion and size of gold particles has a direct impact on the effectiveness of sampling protocols and metallurgical recovery processes employed. Studies focussing on ore mineralogy and gold particle deportment, size and distribution are required. Key issues are the presence of gold particle clustering (important for sampling optimisation) and proportion of coarse versus fine to refractory gold. X-ray computed tomography (CT) is a radiographic technique that produces high-resolution 3D computerised models of objects based on density distribution. The ‘virtual’ specimens are made up of voxels, the 3D equivalent of pixels each assigned a grey value based on X-ray absorption. This paper presents the results of recent research on the imaging of in situ gold particles in a coarse gold-bearing ore. The technique shows promise as a rapid non-destructive method for preliminary characterisation to facilitate more detailed studies. Early and rapid gold particle determination enables sampling protocol optimisation and metallurgical recovery parameters to be defined prior to detailed feasibility studies

Sep 5, 2011

By S Jokanovic

At New Zealand Steel MiningÆs Waikato North Head operation a Bucket Wheel Excavator û shiftable conveyor mining system is used to excavate titanomagnetite bearing sand and clay. The system utilises two Bucket Wheel Excavators and two Beltwagons with a two shiftable bench conveyors and two common trunk conveyors to deliver material to a processing plant. The original system was commissioned in 1984 as a high capacity, low cost method of excavating. In 1996 a second Beltwagon was purchased, increasing the flexibility of the mining system.

Jan 1, 2002

By B W. Atkinson

Full-stream mechanised sampling apparatus, that collect a full cross-sectional increment from the complete screen discharge, will always be the preferred option for sampling screen overflows. However, the reality is that provisions for automated sampling are rarely, if ever, provided at the discharges of individual screens within beneficiation plants.Sampling from the discharge of high capacity vibrating screens, especially multi-slope screens, is subject to sampling bias, due to the stratification of the ore that occurs on the vibrating screen deck. The stratification in the vibrating bed translates to a stratified falling stream at the discharge end of the screen, typically with smaller particles at the back of the falling stream and large particles at the front of the falling stream (Figure 1).The chemical and physical characteristics of heterogeneous ore (mineral or coal) particles vary significantly with particle size. If samples do not correctly reflect the source material size distribution, they will be biased and the resulting analytical/assay data will not reflect the actual physical nor chemical characteristics of the source material.Prior published data for coal preparation research (Australian Coal Association Research Program) has demonstrated that a bias appears to exist for samples collected from high capacity multi-slope screens.A new form of sampling scoop has been developed with the aim of overcoming this issue.Bias was evaluated at a coal preparation plant by comparing the desliming screen overflow size distribution to that for æreferenceÆ coal preparation plant feed samples collected using the recognised stopped-belt technique. The study procured 20 sets of comparison samples in order to ensure statistical relevance.Two forms of sampling device were employed for the multislope screen discharge.A conventional square aperture scoop was demonstrated to exhibit a significant coarse bias, in that the resulting samples exhibited a significantly coarser size distribution compared to the reference samples. In other words it was evident that the conventional scoop æfavouredÆ material from the front of the falling stream.A new æcollapsibleÆ sample scoop was evaluated in parallel, and its samples were found to exhibit no relevant bias.CITATION:Atkinson, B W and Swanson, A R, 2012. A new method for sampling from high capacity screens, in Proceedings Sampling 2012 , pp 89-94 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 21, 2012

Blasting is an essential component of most mining operations, and is used to reduce the rock mass to a workable size distribution, as well as to create stable openings and pit walls. Frequently, there is little difference between the designs of blasts to achieve these two functions, though more advanced operations have developed different designs for these very different functions. To assist in the appreciation of how blasting practices can impact on the stability of rock openings and pit excavations, this paper reviews the role of high pressure explosion gases on final block stability. It is assumed that the stability of all surface and underground excavations are, to a greater or lesser extent, controlled by the interaction between discrete rock blocks. Typically, these blocks will be defined by either natural, or excavation induced, jointing.

Jan 1, 1999

By B M. Patterson, A J. McKinley, M E. Grassi

Large-scale column experiments were undertaken to determine the effect of a step decrease in groundwater pH on metal remediation by bioprecipitation. Metal contaminated groundwater at pH 5.5 was amended with ~1 g/L of ethanol in one column using a polymer mat ethanol delivery system to promote bioprecipitation, while another column was left unamended and used as a control. Sulfate reduction and zinc removal were observed after eight weeks. Zinc removal was observed in the zone of sulfate reduction, indicating precipitation as ZnS, while, copper was removed in the denitrification zone. Once steady state bioprecipitation of zinc had been established, the pH of the metal contaminated influent groundwater was decreased stepwise from 5.5 to 4.25. As a result of the change in pH, a significant increase in copper concentration was observed in both columns. In the ethanol column, the zones of denitrification and copper removal migrated up the column, while both sulfate reduction and zinc removal ceased. Bioprecipitation of metal contaminated groundwater via sulfate reduction was shown to be an effective remediation strategy for zinc removal. However, this in situ biological remediation process was sensitive to changes in groundwater pH.

Jan 1, 2004

By B K. Hebblewhite, G Sharrock

The strength and deformation properties of a rock mass are important parameters influencing the design of civil and mining excavations or structures. The mechanical behaviour of jointed rock masses are controlled by the characteristics of discontinuities and the strength of intact rock bridges between discontinuities. To date, analytical, empirical and experimental methods have not captured the key mechanisms controlling the mechanical properties of actual rock masses with non-persistent joints. The emergence of the synthetic rock mass (SRM) in 2007 provides a promising approach for this purpose. In this paper a rock mass with non-persistent joints is analysed with the SRM model based on PFC3D. The influence of joint geometrical parameters on the uniaxial compressive strength (UCS), rock mass deformation modulus (Em) and failure mode is studied. Joint parameters include joint orientation, persistency, spacing and step angle. Prismatic numerical samples with dimensions 300 mm × 150 mm × 50 mm were generated and a sensitivity analysis of each joint parameter on UCS and Em was undertaken. The results show that of the parameters tested, joint orientation has the greatest influence on UCS. Minimum UCS occurs when the angle between the major principal stress and joint surface is approximately 60°. The joint step angle was found to have a significant effect on failure mode and a joint step angle of 90° is the most favourable joint orientation for step-path failure. The importance of joint step angle is highlighted in the discovery of a failure mode bifurcation point at joint step angles of 60° and 90° for joint orientations of 75° and 90°, respectively. For these parameters the failure mode transitions from block rotation to a new failure mode where the coalescence of cracks results in the formation of new small regularised blocks.

Sep 26, 2011

By R Belissont, C Veloso, L Senez, F Vasconcelos, E Kleiderer, J Mesquita, Y Basselin

Mont-Wright mining complex is an important asset of ArcelorMittal located in the province of Quebec, Canada. It is composed by Mont-Wright and Fire Lake mines, operating 365 days per annum, and producing 25 Mtpa of iron ore concentrate with 66 per cent Fe. Mont-Wright concentration plant is composed by seven lines with a flow sheet encompassing AG/SAG milling, primary and secondary classification stages, spiral concentrators (rougher, cleaner and recleaner stages) and dewatering unit operations. In this context, an equation called ‘Wrec’ was developed in 1971 with the objective of estimating the mass recovery of the different blocks in the beneficiation plant and support the mining planning works of Mont-Wright complex. This equation was based on the correlation between the results of heavy liquid tests performed with drill core samples and spiral concentrators pilot scale tests, returning an estimative of concentrator yield. However, since its first development, no updates have been done in the equation, which lead to some deviations from expected recoveries in the last years. This is probably due to the changes in the process and in the ore fed into the concentrator during the period. In this way, the study presented here corresponds to the execution of heavy liquid/spirals pilot scale tests with 26 composite samples collected at Mont-Wright deposit aiming at revising and updating ‘Wrec’ equation. Based on test work results, an updated formula was established to estimate the plant recovery and a comparison performed using industrial data showed that the old formula overestimated the real yield by 5.40 per cent, on average. At the end of the study the new equation was incorporated into the mining planning process.

Sep 18, 2023

By A Clarkson

Cannington Mine is an underground silver lead zinc operation located in north-west Queensland which has been in production since 1997. Ore is primarily moved through an underground material handling system comprised of a crusher, conveyor and hoisting shaft. The Fowler Shaft was constructed in 1997 using a strip and line method with the intent for it to provide a means to hoist ore from the loading station 600 m below surface. The shaft also serves as the route of key services including high voltage power, mine dewatering and fresh air. Despite the adherence to a mining exclusion zone, large-scale change in geotechnical conditions around the shaft were first observed in 2015. Ongoing ground movement around the shaft lead to cracking and delamination of the concrete liner. Shaft management required the on-site team to measure deformation rates and magnitudes, forecast change, manage rockfall risk and deforming pipework, and ultimately, hoisting skip clearance. Monitoring techniques to observe and measure deformation were required to evolve with the magnitude of movement. Some techniques leveraged off modern technology while some of the most useful techniques were based on logic and first principles. All shaft deformation management strategies relied on the co-operation and alignment between Cannington’s Infrastructure Maintenance, Survey and Geotechnical Departments.

Mar 29, 2023

Same-batch and non-blind as well as blind pulp duplicates are often submitted as quality assurance/quality control (QA/QC) control samples to a routine laboratory along with routine assays (and other control samples such as reference material samples). The current ways of interpreting the results of duplicate assays to derive QA/QC conclusions and decisions, however, has not yet been formalised in a scientific manner. The current, prevailing approach and its limitations are reviewed and a new method is proposed as a substitute tool. This new tool should allow for operational error detection on a batch per batch basis (ie batch rejection) as well as laboratory performance assessment with time on reproducibility.

Jan 1, 2008

By S Liu, N M. Rana, A Take, N Ghahramani, D Clohan, S McDougall, S G. Evans, H J. Chen

Tailings dam breaches have caused significant life loss, social, economic and environmental damage in recent years. The term "tailings-flow" refers to various forms of tailings outflow movement resulting from the breach of a tailings dam. These flows, comprising a mixture of tailings, water and dam materials, can take different forms, ranging from a debris flood to a flowslide, and can travel long distances and impact large areas. The inundation extents depend on the failure mechanism, tailings dam height, total released volume, sediment concentration (associated with the rheological behaviour of the flow) and downstream conditions (including topography, land cover and presence of a water body). Numerical runout modelling of tailings dam breaches is important for predicting the dynamics and extent of tailings-flows, which are crucial steps in tailings dam consequence analysis and risk management. This paper presents a comparison of numerical simulations of the 1994 Merriespruit tailings dam breach using three numerical models: DAN3D, FLO-2D and MADflow3D. Using compiled site condition information and data from the literature and public domain, model performance was evaluated primarily based on comparisons between the observed and simulated inundation extents. The main purpose of this preliminary model benchmarking exercise was to help us evaluate the capabilities and limitations of each model, and to identify opportunities for future model improvements as part of a broader research initiative known as CanBreach. This exercise also highlights the inherent complexity of tailings-flows and the importance of using judgement to interpret model input and results.

Jul 1, 2021

By D Eschebach, D Mathewson

A belt press filter (BPF) handbook containing practical information for the reference of plant designers and operators has been created as part of Australian Coal Association Research Program project C23040. The handbook combines research and experience with newer generations of equipment and circuitry. BPFs are increasingly finding application in the dewatering of thickener underflow tailings slurries due to changing environmental regulations, difficulty obtaining tailings storage facility approvals and limited water availability. Sources of BPF inefficiency and low availability stem from a lack of understanding of the key operational parameters that affect their performance. This lack of understanding typically leads to increased operational expenditure due to suboptimal reagent dose rates and increased maintenance costs, or decreases in plant availability due to excessively high filter product water contents and equipment failure. It is essential for the continued economically competitive operation of Australian coal handling and preparation plants that complex factors affecting BPF operational performance are clearly defined and understood. Installation and operation handbooks are often provided to sites with new installations, but these manuals are manufacturer- or even model-specific and are often focused on mechanical maintenance. The handbook identifies industry ‘best practice’ and improvements developed by other sites, such as extra spray bars, air system bleed valves, guarding designs, feed and filtrate protection screens and roller tensioning systems. Equations to predict optimum operating conditions – such as free moisture, belt tension and reagent dose rates, with simple feed-specific variable inputs – have been developed from site-specific test work. The correlations developed provide a benchmark for plants to attempt to achieve. This provides operators and process engineers with a tool to explain BPFs and assist them in optimising the performance of BPF dewatering plants of both contemporary and less modern design.CITATION:Mathewson, D and Eschebach, D, 2015. ACARP belt press filter design, operation and maintenance handbook, in Proceedings Tailings and Mine Waste Management for the 21st Century, pp 73–82 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 27, 2015

By R Symes

The Fosterville Goldmine in Victoria Australia employs the BIOX« Process to liberate gold from its sulfidic flotation concentrate through bacterial oxidation. Gold occurrence is primarily as submicron particles in pyrite and arsenopyrite and has been described as being in æsolid solutionÆ and therefore not amenable to direct cyanidation. Once liberated by the oxidation process, the gold is then available for cyanide leaching. During the oxidation process it has been found that a portion of the liberated gold becomes suspended in the liquid phase in what appears to be a colloidal state. This liquid becomes a waste stream during washing of the oxidised solids and the suspended gold is therefore lost. A method was previously developed using an addition of quebracho tannin to significantly reduce this loss by formation of an iron-tannin precipitate which captures the gold which then reports to the cyanide leach circuit with the oxidised concentrate solids onto which it is adsorbed.This paper discusses the development and plant trial of a second processing step to further enhance gold recovery by use of flotation tailings essentially as a source of extra surface area to capture residual tannin-iron precipitate and its associated gold not recovered in the first step.CITATION:Symes, R, 2012. Recovery of colloidal gold from oxidised concentrate wash liquor - Further improvement, in Proceedings 11th AusIMM Mill OperatorsÆ Conference, pp 383-388 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 29, 2012

By B Mead, N D. Pascoe

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

May 9, 2016

By P Cherepanskiy, G Elphick, R Hus, C Perring

When an iron orebody nears its end of life, the extracted material can become increasingly problematic to handle. Higher moisture content occurs as larger portions of originally-below-water-table material is mined, which in some deposits is accompanied by further changes in physical and/or chemical properties present along the edges of the orebody. Plant delays related to problematic material have affected all of BHP’s mining hubs to various degrees. Following the recent successful work in Yandi, where the development of an index to quantify the handleability of channel iron ore deposits resulted in an increase in extracted volumes and an extension to the expected life-of-mine, the value of implementing similar indices for bedrock iron ore deposits has been recognised. A materials handling index has been developed by combining observed empirical relationships between material properties and processing plant performance. Indices for each deposit were further refined and optimised by implementing a back-testing strategy which facilitated an understanding of what weighting or scaling each of the contributing components should carry to yield the highest success rate of predicting actual delays at a given plant. Currently materials handling indices are deployed to all mine sites and are made available in block models as well as calculated for individual blasthole and production samples. Values in block models are obtained by predicting the required properties using machine learning models, whereas hyperspectral data is used to ‘measure’ some of those properties on a sample level. This paper discusses the work that has been undertaken to obtain materials handling indices, the testing that has been done to optimise them, and what processes have been developed to ensure the best metrics are being used in the different planning and scheduling horizons to optimise extraction.

Jun 22, 2022

By D Craw, J Pope, B Peake

Southland contains over 70 per cent of New ZealandÆs recoverable coal resources, and an investigation into the potential effects of coal mining on SouthlandÆs water resources is therefore of interest. This paper investigates pit-lake water quality in relation to current mining activities within the sub-bituminous coal and lignite deposits of Southland.   Water quality data was collected from pit-lakes in sub-bituminous and lignite deposits from October 2005 to March 2006. After periods of settled weather, turbidity increased with depth at the sub-bituminous pit-lake (10 - 21 NTUs from 5 - 30 m). In the stratified sub-bituminous pit-lake in March 2006, heavy rainfall caused higher turbidity in the epilimnion than the top of the hypolimnion (20 NTU vs 13 NTU) reflecting surface water runoff (up to 1993 NTUs) and epilimnion mixing. In contrast, turbidity at the lignite sites was variable due to the shallowness of the lakes, but noticeable increases following disturbance and adverse weather were recorded. High turbidity at the sub-bituminous deposits was attributed to the presence of clay minerals such as kaolinite whereas turbidity at the lignite sites was more likely short term and a result of heavier minerals such as quartz.   Trace element concentrations at both sites were low when compared to mine waters in other coal areas in New Zealand and no samples exceeded ANZECC water quality trigger values for 80 per cent species protection. Pit-lake water pH levels were lower and more variable in the lignite deposit (4.18 - 7.30 vs 7.24 - 8.98 in the sub-bituminous deposits). In the lignite pit-lakes, higher concentrations of trace elements (eg Dissolved As - 0.034 ppm and Dissolved Mn - 1.09 ppm) and lower pH (ÿ4) were observed at the bottom of active pits compared to inactive pits. It is possible that quartz pebble conglomerates containing sulphide minerals within the lignite seams are responsible for this.   Further investigation into the mine waters, waste rock and lake sediments will help get a better understanding of the results observed and long term processes that occur.

Jan 1, 2006

By G R. Ballantyne, M S. Powell, M Tiang

This paper reviews the proportion of energy attributable to comminution within the Australian gold and copper mining sector. The need for this is motivated by inconsistencies in the quoted energy usage data and the lack of a common basis for reporting the fraction of energy in mining that is attributable to comminution. This study should form a reliable basis from which to assess both demand and opportunities to reduce energy consumption.The proportion of milling energy was calculated for the major producers in the Australian gold and copper sector. A sampling methodology created by Powell et al (2003 - 2010) was initially used to provide an accurate and meaningful measure of the energy used in the comminution process. However, no useful method for grouping similar mines was found. Fortunately, a surprisingly large amount of high quality data was found from a number of different sources, allowing the development of robust relationships to be used to estimate a high proportion of the unknown values. The fraction of energy attributable to comminution was found to be dependent on how the total energy consumption was defined. For instance, comminution accounted for 52 per cent of the electrical energy, but only 21 per cent of the total energy publicly reported by the mines because a substantial proportion of energy used on a mine is in the form of transportation fuel (mostly diesel). Critically, the measured electrical energy consumption does not account for transmission and generation losses, while diesel energy usage is typically quoted according to its calorific value. This review proposes that diesel should instead be converted via the mechanical efficiency factor for diesel engines. Using this conversion, comminution was found to account for 36 per cent of the available energy on average. This approach allows a useful basis of comparison for mines regardless of whether milling energy is obtained from electrical or diesel generation. A summary of the results are shown in Figure 7 with other values obtained from literature. The total comminution energy assessed in this study accounts for 1.3 per cent of AustraliaÆs electricity consumption, this figure will increase as the other mineral commodities are added to the study.CITATION:Ballantyne, G R, Powell, M S and Tiang, M, 2012. Proportion of energy attributable to comminution, in Proceedings 11th AusIMM Mill OperatorsÆ Conference, pp 25-30 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 29, 2012

By Dodd SF

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

Jan 1, 1994