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By R Garzon

For resources projects with healthy net present value (NPV) and low cash flow volatility, conventional discounted cash flow (DCF) analysis will continue to provide the dominant investment decision-making criteria. However, DCF analysis can be biased because it often applies a single risk-adjusted discount rate (RADR) to compare the value of projects with different risk characteristics. Many of the difficulties with DCF modelling arise from analystsÆ inability to determine appropriate risk discounts and to estimate expected spot prices inputs for the commodities produced over the life of the project. Modern asset pricing (MAP) is a very valuable complement to DCF analysis in addressing some of these issues. Most papers dealing with MAP, however, while academically rigorous, tend not to be explicit in terms of practical application of this methodology in routine project evaluation. This paper has the objective of reviewing the MAP methodology and of demystifying its complexity, by providing a simple but realistic step-by-step evaluation of a mining project, comparing its DCF and MAP NPV values. The paper concludes that MAP provides a minimum, risk-adjusted æfloorÆ value, thus representing a valuable complement to any DCF valuation.

Jan 1, 2007

The process of establishing the design criteria is the key step in commencing a new project.. The method for establishing design criteria and translating them to a workable plant design is described. INTRODUCTION The use of activated charcoal to recover gold from alkaline cyanide leach liquors is the most rapidly expanding technology in hydrometallurgy today. The process, known as carbon-in-pulp (CIP), has replaced countercurrent decantation as the method for recovering gold by cyanidation. Carbon-in-pulp entails mixing activated charcoal with a ground ore-water slurry containing gold cyanide, allowing the charcoal to adsorb the gold, and then mechanically removing the gold loaded charcoal from the pulp. The pulp is sent to tailing disposal and the loaded charcoal is sent for gold bullion production. Activated charcoal's affinity for gold has been docu- mented for over one hundred years. In the first cyanide plants, one of the preferred methods of stealing gold was to place a piece

Jan 1, 1982

According to our experimental results, the following oxygen probe recommended, that is, the magnesia stabilized zirconia was employed as a solid electrolyte and Fe.FexO solid elect- rode was used as a reference electrode. Using such an oxygen probe, we tried to measure the oxygen potentials in molten metals, mattes and gases in the following fields of non-ferrous metal industry, molten copper in the side launder before casting, molten crude lead in the forehearth of ISP blast furnace, molten copper mattes in the forehearth of blast furnace and in the settler of flash smelting furnace, gas in the settler of copper flash smelting furnace and flue gas in the electric furnace for ferro-silicon. In the past ten years or so, many experi- mental results in the field of fundamental studies have confirmed that the equilibrium oxygen potential could be measured conveniently and accurately by an electrochemical method using a zirconia solid electrolyte. Recently, such an electrochemical technique has been also applied to a device for physicochemical invest- igation or process control in the non-ferrous metal industry. Such a device consists of an oxygen con- centration cell with stabilized zirconia, and it is commonly called an "oxygen probe" or "oxygen sensor".

Jan 1, 1980

Underground mine planning is characterised by a series of designs, starting with prefeasibility and culminating in operational. Information on the mineralisation and geotechnical conditions is available in increasing levels of detail, as development occurs. In the recently completed AMIRA Planning and Rapid Integrated Mine Optimisation (PRIMO) project, a methodology for producing good strategic and then tactical designs using new optimisation tools, was developed. At the strategic level, fundamental decisions must be made such as those relating to cut-off grade, bench heights, mining methods, access and haulage systems, properties of the mill, etc. The inputs are the block and financial models, geotechnical data, infrastructure and production costs, etc. Stope definition for strategic designs includes bench RLs (relative levels), orebody envelopes, and design and placement of amalgamated or simplified stopes. If multiple mining methods are under consideration, then stopes need to be associated with these. Access design must take into account decisions such as declines versus shafts, a template for level layouts and the topology of the access network. Some of the geotechnical and physical constraints are relaxed for strategic design stages. Strategic scheduling is high level, from a month to a year at a time. In the PRIMO project, software tools have been developed enabling the mine planner to rapidly produce a large number of such strategic designs. After the designs have been evaluated, the highest value designs are chosen and a small number of these can then be further refined at a tactical level. For these designs, the first step is determination of all stopes meeting physical and geotechnical requirements and constraints, allowing for complex stope shapes. Next, detailed layout of the mine access network is obtained, satisfying all operational and geotechnical constraints. Finally, more detailed scheduling is performed, over shorter time periods. The Melbourne University group has focused on optimal access design. In particular, the access network is optimised for minimum cost, taking into account the cost of haulage and development over the lifetime of the mine. Costs vary over the different parts of the network depending on the quantity of haulage and so a weighted network optimisation problem has to be solved. We have developed two software tools for this task, decline optimisation tool (DOT) and planar underground network optimiser (PUNO). DOT produces an optimal network of declines and crosscuts connecting access points on the levels to a portal or break-out point from existing infrastructure. PUNO designs the level layout, including footwall and hanging wall drives, development drives and connections to vent raises. A survey will be given of the capabilities of DOT and PUNO when used on some recent case studies. Our current goals include incorporating some aspects of ventilation design and modelling the development costs when additional ground support is required. This is an abstract only. A full paper was not prepared for this abstract.

Dec 6, 2010

By Edmonds G. A

The power station went into operation in 1931, when the installed capacity was 12,500 kVA. with a loading of 4,000 kVA. In 1936 the loading increased to 6,750 kVA. which necessitated the addition of a third set which went into operation in 1937, the installed capacity at that date being 18,750 kvA. with a loading of 7,000 kVA. This remained fairly constant until 1945, when a gradual increase was noticed, the loading in 1952 being 10,598 kVA.With the addition of the copper plant, additional generating capacity was required and it was decided to raise the installed capacity by the addition of a fourth set to 34,375 kVA. with an expected loading, when producing copper, of 20,000 kViA.MAIN POWER PLANTThis consists of three GiE.e. alternators of 6,250 kVA. or 5,000 kW. at 0.8 P.F. rating and one G.E.C. alternator of 15,625 kVA. or 12,500 kW. at 0.8 P.F. rating, making a total generating capacity of 34,375 kVA.Each alternator is driven by Fraser and Chalmers turbines at 3,000 r.p.m.SYSTEMThe main 3 phase 3 wire 3,300 volt distribution system has the neutral point of alternators earthed through by one or two earthing resistors designed to limit earth fault current to 3,000 amp. for 20 seconds, in the case of the large machine, and to 1,100 amp. for 10 seconds, in the case of the smaller machines, or full load of either size machine at rated voltage.

Jan 1, 1953

By B A. Mowat, T M. Leach

The Morobe Goldfield inPapua New Guinea has produced in excess of 120 tonnes of gold from predominantly alluvial sources. Hardrock gold has been mined historically at Wau (23 t) and Edie Creek (4 t) and geological resources have been established at Hidden Valley (78 t), Kerimenge (36 t) and Hamata (30 t).Numerous prospects have also been identified within the goldfield. Primary gold mineralisation is related to intrusion of dacitic to andesitic Edie Porphyry (2.4 to 3.8 Ma), often with associated diatremes, which have intruded along major regional structures. A full spectrum of deposit styles from proximal (mesothermal) to distal (epithermal) to the porphyry source is recognised. The transition between the proximal and distal styles is recognised both between deposits and within an individual deposit. The deposit styles should be termed porphyry related gold mineralisation rather than given the generic epithermal and mesothermal labels.   It is proposed that magmatic fluids which evolved from parent melts to the high level Edie porphyry stocks mixed with convecting meteoric fluids and were channelled along major structure and diatreme contacts. Proximal to the intrusives, gold mineralisation is associated with deposition of pyrite-hematite-quartz+/-magnetite-gold (Hamata) and pyritebasemetals-quartz-gold (Wau). The mineralising fluids were hot, and periodically saline due to pulses of magmatic fluid. Gold is non-refractory and occurs as 20 to 30 micron blebs within the pyrite.   More distal from the intrusives or under late cooler conditions, mixing of cool dilute meteoric and magmatic fluids resulted in gold deposition associated with arsenic rich pyrite-and arsenopyrite-mineralisation (Kerimenge, Hamata and Edie Creek). Gold is refractory and occurs within the sulfides either as sub-micron inclusion or within the lattice.   CO2 and H2S gases which evolved off the upwelling hydrothermal fluids as a result of boiling and pressure reductions, condensed within superficial groundwater and formed cool oxygenated bicarbonate fluids. These fluids percolated back down the structures depositing manganocarbonate in the upper parts of the hydrothermal system. At deeper levels in the system mixing of the descending bicarbonate fluid with upwelling mineralised fluids deposited manganocarbonate-quartz-sulfides nonrefractory gold (Hidden Valley, Wau and Edie Creek).   At Kerimenge the cool bicarbonate fluids have also quenched a late stage magmatic fluid rising along high permeability structures. The quenching has resulted in deposition of non-refractory gold mineralisation associated with hessite (Ag2Te)-tennantite-chalcopyrite deposition.   Within the Morobe Goldfield, a transition from deeper level pyrite-quartz+/-hematite-magnetite to intermediate level quartz sulfide and quartz-carbonate-sulfide deposition to upper level, massive manganocarbonate deposition is recognized. Gold mineralisation can occur within all levels up the system.

Jan 1, 1995

Designing and constructing OxianaÆs Sepon gold and copper operations in one of the most remote areas in Laos has been a great achievement; one which was recognised by the engineering industryÆs highest accolade û the Australian Engineering Excellence Award in 2005. The developing nation of Laos has no previous mining or heavy industrial experience, but the support of the Lao Government and a remarkable Lao workforce has enabled the project to be developed and operate as well as it would anywhere else in the world.When making a decision to invest offshore, several geophysical and jurisdictional criteria need to be considered. Laos offers unparalleled prospectivity, a central location with growing infrastructure, a ready workforce and a developing but supportive regulatory regime. In addition, the Sepon copper project has exceptional characteristics, including its high grades, location near the surface, leachable qualities, access to hydropower and the ability to produce cathodes on site. These attributes and its location in the centre of a region hungry for resources contributes to the projectÆs excellent economics.

Jan 1, 2006

By Amer S, Novais A. Q, Limpo Gil J

A proprietary hydrometallurgical ammonium chloride process for the recovery of not only zinc, but also copper, lead and silver from sulphidic zinc-rich concentrates has been developed at bench scale by CENIM and INETI (ex-LNET) as part of a research project supported by the Commission of the European Community (DGXII). This paper deals with the innovative chemical aspects applied to this chloride process and also with the more relevant data relating to mass balance, heat balance and process economics. Under mild temperature and oxygen pressure leaching conditions it is possible to extract practically all the zinc together with the other metals of interest and to precipitate simultaneously the solubilised iron fraction as goethite. The pH is kept close to neutrality in spite of the ammonia released in the leaching of the non-ferrous sulphides. A buffer effect is observed mostly due to the formation of zinc ammines which are very soluble in this medium. The zinc is further extracted by D2EHPA, the acidity being neutralised by the ammonia. Most of the ammonium chloride is naturally regenerated in this step. The zinc is recovered as zinc cathodes in a conventional sulphate electrowinning circuit. All the main raw material consumptions excluding the concentrate, such as oxygen, lime and ammonium chloride are linked to the sulphate formation in the leaching step which must be kept as low as possible by decreasing the reaction time under neutral conditions. The process analysis is complemented by the economic evaluation of a reference case. Difficulties encountered in finding a more convenient method of assessing the economics of the process in the absence of a reference price for a complex sulphide concentrate are examined and discussed. The reason why this analysis was performed with a much more optimistic metal prices scenario is also highlighted. The process economics are primarily dependent on the zinc market quotations and of course on the concentrate cost. Around 70 per cent of the total revenue is due to zinc sales. Assuming an internal rate of return of 17 per cent, the price of the concentrate can be as high as 255 $US/t for a plant capacity of 320 000 t/y (90 000 t/y of zinc).

Jan 1, 1993

By M Gao

Six new IsaMills were installed for the George Fisher flowsheet in the Lead/Zinc Concentrator of Mount Isa Mines to produce a product P80 as fine as seven microns. The objective was better liberation of galena and sphalerite. The IsaMill commissioning was completed by the end of 1999. The six new IsaMills were running to the metallurgical specifications almost immediately after start-up. This paper reports the performance of the George Fisher IsaMills in the zinc circuits and some of the latest development in the IsaMill designs and maintenance during George Fisher commissioning.

Jan 1, 2000

Almost all the countries of the south-west Pacific and the Australian states have recently completed or have commissioned mineral royalty reviews. The prime reasons for this widespread and consistent action is the desire of the governments of these entities to redress perceived effi- ciency and equity imbalances and to ensure that the revenue raising motive does not override the necessity to maintain mineral exploration and development incentives. Governments are tending to adopt royalty systems comprising a com- bination of base royalty and a profit component. Resource rent royalty and royalty holidays have been introduced and anomalies, such as royalty free gold production, still exist but appear to have uncertain futures. Tasmania ranks as the Australian state with the lowest aggregate royalty levy/production value ratio whilst Papua New Guinea has the highest royalty objective achievement level in the south-west Pacific region.

Jan 1, 1988

By Vink L, Johnson N. W, Mackenzie J, Young M. F, Johnston M, Landmark V

The influence of ore textures on metallurgical behaviour is poorly understood for most ores. An alternative method for characterising ore textures and for determining the resulting implications on ore processing has been developed for the Geor

Jan 1, 1998

By S Lowjun, I Verster, C A. Thomas, E Forbes, K Runge, G V. Franks

Fine (<20 µm) valuable mineral particles are difficult to recover in conventional flotation circuits. (Trahar and Warren, 1976; Jameson, Nguyen and Ata, 2007; Kohmuench et al, 2018). This leads to a loss of valuable fine mineral particles to tailings. Recovering these particles would be of economic benefit. Novel reagents, including temperature responsive polymers, for example, are being developed to improve recovery of fine valuable mineral particles by froth flotation (Ng et al, 2018a, 2018b). The approach involves selectively aggregating the valuable fine particles and making these aggregates hydrophobic, resulting in hydrophobic aggregates of appropriate size (in order of 100 microns) being amenable to recovery by froth flotation. The polymers developed have been produced at laboratory scale but not a full scale yet. The exact cost of producing such novel polymers is currently unknown, but they are likely to be more expensive than conventional reagents.

Aug 24, 2022

The æProfit Driver ModelÆ is a tool which builds costs from first principles and integrates revenue, costs and physical mining parameters and, hence, can quantify the impact and leverage on profit. In this paper an æexample mineÆ has been created to represent a typical Australian Open Cut Coal Mine. This has then been input into the Profit Driver Model to allow different variables to be tested. A series of variables were tested to determine which ones had the highest impact on profit and results are useful to management as a guide to the areas in which they can focus effort to achieve better profitability. Whilst the highest profit drivers are those external to the control of management and include selling price and exchange rate, the next most sensitive are those variables related to the geology of the mine and the mining method. These included coal quality, yield and strip ratio. Site management has some control of these. For example, the ability to vary the sequence of mining or improve the yield by a more efficient coal washing process. The efficiency of the workforce and management has similar impact to the mining variables. Finally, there are the supply variables, such as fuel, labour and explosives which are the least sensitive although, cumulatively, still significant. Each mine is different and the results of the example mine will not apply to all mines. However, the approach taken is universal and the tool illustrates a simple method to quantify the profit impact when changing variables. The benefit of the approach is the short time taken to get a set of results. This allows the more detailed and time consuming work to be more focused. The results illustrate that management has a significant influence on profitability.

Jan 1, 2000

By Klenowski

Rational design of layouts for longwall operations is greatly facilitated by use of an accurate and economical method for predicting stresses and displacements. The displacement discontinuity method (a form of boundary element method) is based on replacing actual excavation geometries by thin slits of the same plan area. This approach allows three-dimensional stress- analysis at a fraction of the cost of alternative methods. The analyses can be readily performed on economical microcomputers, putting the analysis capability within the reach of mine-site personnel. This paper describes investigations associated with the German Creek Central Colliery, the first longwall operation in Queensland&apos;s Bowen Basin. The material properties used in the model, in particular the rock mass and goaf properties, have been &apos;tuned&apos; to fit stress measurements obtained during extraction of the first and second longwall panels at the mine. The study shows that model predictions based on suitably scaled anisotropic rock strata properties are in good agreement with the stress measurements made to date. This model predicts average chain pillar loads significantly higher than predicted by models based on United Kingdom conditions. A working chain pillar design method is proposed using average pillar loads predicted by the numerical model and ultimate strength characteristics given by Bieniawski&apos;s formula.

Jan 1, 1988

By C Skublak

The Government of Canada recently passed a new regulation to control the liquid discharges from metal mines in Canada. The Metal Mining Effluent Regulation of the Federal Fisheries Act will come into force within the next six months. As a result the Ontario Regional Office of Environment Canada has developed a compliance promotion program to accompany the new regulation. How the mines implement the regulation will be key to its success. This paper will briefly outline the components of this regulation, including the reporting structure, the discharge parameters and limits, as well as the requirement for the mines to conduct long-term environmental effects monitoring on their effluent discharge. The presentation will give a brief account of the compliance promotion program, and then focus on the spill trends from Ontario mining operations. The province of Ontario has the largest concentration of metal mining operations in the country with approximately 40 active mines.

Jan 1, 2002

By P Dowd, A Adeli, C Xu, X Emery

Geometallurgical modelling is increasingly being incorporated into mineral resource modelling and estimation as a means of increasing efficiency, decreasing operating costs and reducing risk in mining operations. Traditional geostatistical workflows for geometallurgical modelling face several difficulties, in particular, related to the non-additivity of process response variables, to highly heterotopic data sets and/or to preferential sampling designs, all of which may explain why most attempts to estimate geometallurgical response variables from assay data and mineralogy are still based on statistics and machine learning. The aim of the work presented here is to demonstrate the applicability of geostatistics to estimate copper recovery from copper sulfide ores at the Prominent Hill Iron Oxide Copper-Gold (IOCG) deposit in Australia. As recovery is non-additive, the preferred workflow is the joint estimation of the masses of metal in the feed and in the concentrate, both of which are additive variables. While the mass of metal in the feed can be estimated from abundant online assay analyses, the mass of metal in the concentrate can only be estimated from a very limited number of laboratory-scale batch flotation tests. Traditional approaches to estimating the masses of metal in the feed and in the concentrate, such as simple and ordinary co-kriging, are described and discussed. A modified version of co-kriging is introduced, which incorporates linear relationships between the mean values of the input variables, in addition to a spatial correlation model. Co-kriging with related means is shown to outperform traditional simple and ordinary co-kriging in terms of precision, accuracy and consistency of the estimates, and offers a practical and efficient tool to deal with highly heterotopic and preferential sampling designs.

May 24, 2023

By M Pizey, P Lindsay

Coal mining has been occurring on the Stockton Plateau for over 100 years. As a result of both natural conditions and mining activities, surface water on the plateau is known to have low pH and elevated metals concentrations, a condition known as acid rock drainage (ARD). Solid Energy New Zealand Ltd (SENZ), as owners of the current mining operations at Stockton desire to understand the nature and causes of ARD at Stockton to determine whether commercially viable options can be developed to improve the water quality to levels acceptable to the local community and regulators. A series of integrated water quality investigations have been performed towards developing a characterisation of the water quality on the Stockton Plateau and receiving waters. The investigations performed include: design and implementation of a water quality monitoring program to collect a satisfactory base of water quality data from which to develop an understanding of the water quality and its variability, and to collect data regarding the range of flow rates that occur in the principal streams; development of a hydrological model for the Plateau with the ability to predict flow rates at key locations on the plateau and on the Ngakawau River; field investigations of the bio-diversity of the plateau and surrounding areas, to develop a snapshot of the health of aquatic communities and whether streams draining mine workings are æadversely impactedÆ; eco-toxicology; waste dump seepage water quality monitoring at selected basal springs, drilling, investigations and permeability and geochemical testing; data processing of a range of historical data and the newly acquired data for the development of empirical relationships that describe the water chemistry system and its relationship in turn to flow rates in the streams; simulation of the long term water quality record for the measured parameters (pH, acidity and metals concentrations), based on the hydrological model and the empirical relationships developed from the new database; and preliminary development and examination of mitigation options for the ARD issues at the mine. The study has progressed towards design of pilot studies of options for mitigation of the generation of the ARD as well as treatment of the discharges. It is the integrated approach adopted by SENZ from an early time in the investigations, that has enabled fast-tracking of the pilot engineering trials. This paper presents the results of the field investigations and eco-toxicology studies and demonstrates the value of predictive modelling of water quality in the study area, even at a very early stage in the remedial engineering design process.

Jan 1, 2003

Solid Energy New Zealand Limited (æSolid EnergyÆ) is a state-owned coal mining company, producing 4.0 Mtpa from a number of opencast and underground mines in the Huntly, West Coast and Southland regions in New Zealand. The company currently exports 2.1 Mtpa of coking coal. Exports are expected to grow strongly over the next five year as the company expands production into new semi-soft and thermal coal reserves. Domestic coal demand is also expected to grow strongly, particularly in the North Island, as the Maui gas field reserves diminish, and thermal coal becomes more important for electricity generation and meeting the energy needs of forest processing and other industries. Solid Energy is expanding and developing its risk management practices across all areas of the business: strategic planning û extensive use of scenario analysis and probabilistic modelling over a 20 year period; investment decisions û development and application of a rigorous six stage æProject Assessment GuidelineÆ process for all new mine developments; geological and geotechnical risk assessment techniques û use of best practice techniques including seismic surveys; financial risk management û a dynamic approach to hedging based on effects based analysis of Cash Flow at Risk analysis against preset risk tolerances; risk financing û the use of a captive insurance subsidiary, and the experiences of a small coal company seeking to obtain insurance cover on a æhardÆ international insurance market; and integrated risk management û the challenges of trying to implement a broad integrated risk management approach across the company, that supports implementation of strategic objectives as well as meeting æcompliance or legislative basedÆ risk management requirements.

Jan 1, 2003

By Duncan GR

Having passed through a number of previous phases the best longwall results in Australia have shown a significant increase in the last two years. The results expected from a longwall face can be estimated from the ideal production rate, determined by the capacity of the equipment and the conditions in which it is installed, the utilisation, and the available operating hours. Back analysis of the results achieved suggests that, on average, recent improvements arise from the higher capacity equipment recently installed; the utilisation has in fact reduced slightly. Review of the constraints which limit the longwall results, i.e. shearer speed, AFC capacity, support, advance rate, and man travel speed, shows that little improvement can be expected in the ideal production rate in thinner seams. In thicker seams the AFC often proves the overriding constraint and further increase in equipment size could lead to increased future ideal production rates and is expected. In all cases a concerted effort to increase the utilisation achieved is likely. For deep mines with thin to medium seams this offers the most viable path to improvement; by contrast thick seams with highwall/shallow access may benefit from further increase in equipment size.

Jan 1, 1988

Large scale open pit mining at Ok Tedi and Misima are described in this paper. The paper also presents the socio-political problems encountered in the construction, operation and waste disposal of high technology, high output gold and copper mines in very remote and rugged terrains. Despite these handicaps, mining companies from all over the world have established top class mining facilities including huge open pits, underground mines and mineral processing plants to extract rich mineral deposits of gold, silver and copper.Papua New Guinea is the sixth largest gold and copper producer in the world. New projects likely to come on stream before the end of this century would make it the world&apos;s third largest gold producer. The mining industry is the largest organised industry in the country employing over 10 000 persons and investing over US $1000 million on these mega projects per year.

Jan 1, 1992