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By A C. Robertson

Over the past decade there has been continual change in the way that mines have been managed and the component roles of those people who make up the total mine management system. Major issues have included the change in the business structure of mining companies, the change in on-site infrastructure, increased personal liability of managers for the safety and health of employees and increasing social and environmental pressures on managers and their staff. This paper looks at the changing roles of two of the many groups of professionals associated with the mining industry - the equipment supplier and the mining consultant. The profiles of the ACME Group Pty Ltd, suppliers of ventilation equipment and ancillary canvas and plastic products to the mining and construction industry, and Tennent, Isokangas Pty Ltd, Consulting Mining Engineers, are presented.

Jan 1, 1998

By V M. Silva, P A. A Martins, V O. Matthew, A L. S Fonseca, E B. Cunha, A J. D Ferrari, E M. S Silva, A C. Silva, D R. T Vilela

The Anglo American phosphate mine is located in the Brazilian state of Goiás and possesses one of Brazil’s most important phosphate rock deposits, with the site being the country’s second largest producer of phosphate rock concentrate. Despite the site having been in operation since 1979, the mining team only started using explosives in 2004 when rocks with greater hardness started to appear in the mine’s geological profile. Rock excavation was previously performed mechanically. Until 2013, only rocks with high hardness were blasted, this following the standard drilling grid that was defined in 2004 without any changes in the blast parameters. The aim of this paper is to show how fragmentation optimisation has yielded positive results at all stages of the production chain, from the mine to the mill passing through an impact hammer crusher, a rod mill and ball mill, operating in close circuit with hydrocyclones.While incorporating the mine to mill holistic approach during the operational integration, the focus was on defining the blasting domains and respective optimal fragmentation and measuring the benefits of blasting in terms of reduction in energy and grinding media consumed in the comminution processes. In the first stage, the blasting team made changes to the blasting parameters and assessed the effects of these changes on fragmentation using computer software and on-site measurements. This generated a database that made it possible to divide the mine into blasting domains. For the second stage, teams from the plant, geology, mine planning and operation departments jointly made comparisons between the performance when processing stockpiles, which only included high hardness blasted ore (20–30 per cent of blasted ore). Changing the drilling grid’s size from 3.0 m × 3.8 m to 2.0 m × 2.6 m for high hardness rock with the presence of silicates resulted in a 40 per cent reduction in the P80 for the blasted material (from 459 to 278 mm), while changing the grid from 3.0 m × 3.8 m to 2.6 m × 3.2 m for high hardness rock without the presence of silicates generated a reduction of 25 per cent (from 270 to 204 mm). There were gains observed from the measurements at the mineral processing plant in terms of specific energy spent on comminution and on the consumption of grinding bodies in the rod mill. There was a measured reduction of circulating load during secondary grinding and a reduction in slime generation.CITATION:Silva, A C, Martins, P A A, Silva, E M S, Fonseca, A L S, Ferrari, A J D, Cunha, E B, Silva, V M, Matthew, V O and Vilela, D R T, 2015. Fragmentation optimisation – adopting mine to mill for reducing costs and increasing productivity, in Proceedings 11th International Symposium on Rock Fragmentation by Blasting, pp 363–368 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 24, 2015

The homologous series of saturated fatty acids investigated in this study generally show a steady gradation of properties with chain length. The solution pKa values were assumed constant at 4.9, however reported pKa values could be lower or higher. Hematite flotation response and surface pressure for aqueous solutions of these fatty acids were measured as a function of pH. For the shorter chain fatty acids, the undissociated acid was shown to be the predominant surface active species with flotation, supplemented by the physical adsorption of acid anions as the chain length increased. The reduced solubility of the longer fatty acid carbon chains made these reagents ineffective as flotation agents. The maximum flotation response of hematite using tetradecanoic acid corresponded with the precipitation edge of the reagent. The results show that the values of surface pressure of the surfactants are not always a good indication of their effectiveness as flotation collectors.

Jan 1, 2005

By J Greberg

This paper discusses the use of simulation in the mine planning process. A case study on the Newcrest Cadia East project is presented, and the challenges and possibilities for using simulation as a tool for mine planning and scheduling is discussed.The simulation study presented in this paper was performed during the project’s prefeasibility stage, and focused on the planning and scheduling of the development of panels in the future mine. The Cadia East project will be the largest underground operation in Australia and the first using panel caving. Simulation was used in order to optimise the development of panels; it was mainly used in order to verify the plans for the development process and allocate resources in an optimal way. The work was performed as an iterative process and adjustments to the plans were made according to simulation results. Bottlenecks were identified and different scenarios were tested.The results from the simulation study shows how different operational constraints affect the planned development process and how changes in priorities can be necessary in order to maintain a high development speed. Furthermore the study shows how changes in planned mine layout requires changed strategies, and how this was solved using the simulation tool.In this paper the authors critically discusses the use of simulation in mining operations: what are the limitations and challenges of using simulation as a tool for mine planning and scheduling, what are the benefits, and what do we aim for in the future?

Nov 22, 2011

Tailings management trade-off studies are done for all mining projects. There is wide variability in these studies as their approach, details and outcomes are determined by the experience and focus of the project team. While some of these approaches may consider the whole life cycle of the project others may focus only on capital and operating costs and direct environmental impacts. A complete life cycle approach is not standard practice. This paper describes an approach to implementation of formalised life cycle assessment (LCA) following ISO 14044 to tailings management trade-off studies. The paper describes the implementation of the methodological framework for the LCA, ie goal and scope definition, life cycle inventory analysis, life cycle impact assessment and life cycle interpretation. This standardised approach to implementing tailings management trade-off studies following the LCA approach will contribute to the state-of-the-practice in sustainable mine development.

Jan 1, 2009

By E Bouchard March, F Lavoie, B Legare, K Bourassa

Quebec Iron Ore (QIO), a subsidiary of Champion Iron Limited (Champion), completed the restart of the Bloom Lake iron ore mine located in the heart of the Labrador Trough region of Northern Quebec, Canada in February 2018. Prior to its restart, the concentrator flow sheet underwent major upgrades which brought the iron recovery to the highest of all Labrador Trough operations. After two profitable years of production, QIO, supported by Soutex, started to look at technologies to improve its current performance and integrate into its expansion project flow sheet. From the lessons learned while optimising Phase 1, the addition of a scavenger-cleaner processing stage was identified as an improvement opportunity to increase recovery, produce a higher-grade product, and further improve the stability of concentrate quality. In 2019, the NI-43101 feasibility study for the Phase 2 expansion, aiming to double the production of high-grade iron ore concentrate, was published. Based on the metallurgical test work, the hydraulic classifier was selected to perform the scavenger-cleaning duty for its well-established performance and known behaviour at the cleaning step in the Phase 1 plant. To validate laboratory results, a pilot scavenger-cleaning hydraulic classifier was installed in Phase 1. Although the hydraulic classifier was selected for the feasibility study, metallurgical test work performed with the REFLUX® classifier showed interesting potential. It was thus decided to also install a pilot RC300 Reflux classifier at the scavenger-cleaning stage in Phase 1. Despite their apparent great similarities, the metallurgical performance was significantly different, and many dozens of sampling campaigns highlighted the different performance of both pieces of equipment considering the feed material particle size. This article presents the pilot plant results in terms of recovery, selectivity and stability for both the Reflux classifier and the hydraulic classifier operated in a scavenger-cleaner stage at the Bloom Lake iron ore concentrator.

Nov 8, 2021

By V O’Brien

The suitability of magnetic surveys flown at low altitudes to identify buried heavy mineral (HM) strands has long been accepted. This is despite the low intensity magnetic response often obtained from such strands. The fundamentals of the magnetic survey method dictate that the closer the instrument is to the source the stronger the response. As such the optimal elevation for the magnetometer is at or near the surface. Iluka sought to use a ground based magnetometer to aid in the exploration target generation process and allow accurate targeting of exploration drill holes. Following the initial trial Iluka recognised the potential additional application of data obtained by a ground based magnetometer over known strand deposits. The detail of the ground magnetic images can confirm the assumed strand continuity between cross-sections of close spaced drilling and can aid in the definition of the geometry of different generations of mineralisation. The ability to confidently determine that the deposit has not been truncated by post emplacement erosion of the mineralised deposit may enable reductions in drilling requirements as well as assisting mine planning activities. Iluka intends to investigate advanced modelling of the magnetic data to determine the level of strand geometry and HM content resolution that can be achieved from the ground magnetic survey data and its potential application in the mining grade control process.It is anticipated that the surveying of Iluka’s known resource deposits will provide the ability to correlate the magnetic response from new exploration targets with those from known deposits for a given depth, HM grade and mineralogy suite.

Oct 5, 2011

The Pilbara region, located in the north-west of Western Australia, is significant as the second-largest source of iron ore on the planet. Iron ore mines owned and operated by Pilbara Iron are located within the Hamersley Basin. This paper refers to the Greater Paraburdoo mines, the 4WEST and 4EAST pits, located on the southern margin of the Hamersley Basin. The groundwater model refers to ephemeral watercourses: Seven Mile and Pirraburdoo creeks, which are adjacent to the two pits, and Ratty Springs, located upstream from 4WEST and within Pirraburdoo creek. The spring and creeks hold cultural heritage significance for local Aboriginal communities. Two of these, the Gobawarrah Minduarra Yinhawanga (GMY) and Innawonga native title claim groups, initiated hydrological work on the two creeks and Ratty Springs, with the aim of determining the affects of dewatering on the natural water flows of these systems. The numerical model used to simulate drawdown in the Pirraburdoo and Seven Mile Creeks was derived from PMWIN Pro software and covered an area of 77 km2. The modelling period was from January 1998 to December 2004, and the prediction period was from January 2005 to December 2015. The model has four layers and incorporated effects caused by mining voids, 4WEST and 4EAST pits, creek bed material, weathered bedrock below creeks and surrounding banded iron formations (BIF). The model has been calibrated using the trial-and-error method set down by Middelmis et al (2001). The current dewatering schedule (12 ML/day) in the 4WEST and 4EAST mining areas does not affect the water table levels in the adjacent creeks significantly or for any considerable periods of time. However, changes to mine plans may occur, for example, in response to changed commodity price and may lead to significant increase in rates of vertical advancement. This, in turn, affects dewatering schedules, as greater vertical advancement requires increased dewatering effort. When an accelerated mine plan is applied to the model and dewatering rates increased to 18 ML/day, drawdowns in the creeks are more noticeable. The model has therefore helped to indicate the extent to which increased dewatering rates may be acceptable, especially in terms of immediate and longer-term damage to riparian species, ie Melaleuca and Eucalypt. Predictions from the model may also allow mine planners to schedule decreased rates of vertical advancement, where these are required to meet environmental constraints.

Jan 1, 2006

By K G. Fleetwood

This paper proposes an approach to determine the influence of non-ideal detonation characteristics related to the charge diameter, explosive type and confinement conditions on the available shock energy of ANFO and a representative chemically-sensitised (gassed) emulsion. The proposed degrees of non-ideality of the two different blasting agents are indicated by the Gurney ratios, determined from existing cylinder expansion testing data. The influence of the non-ideal detonation properties on blast design and performance are also compared using a series of theoretical, equal powder factor open pit blasting patterns with hole diameters ranging from 102 mm to 270 mm. The non-ideal shock energy factor (NSEF), which is the available shock energy per tonne of blasted material (MJ/t), is used to compare the different blasting patterns as charged with either ANFO or the gassed emulsion of equal charge density (0.85 g/cm3). The intended purpose of this investigation is to provide explosive users with an approach to compare different explosive types or charge diameters in the absence of dedicated non-ideal detonation modelling, which is generally not available to explosives users.The results of the comparisons suggest that at low charge densities, the example gassed emulsion displays a higher velocity of detonation (VOD) than ANFO in smaller charge diameters but similar degrees of non-ideality (based on proposed Gurney ratios). The results also suggest that the confined, non-ideal gassed emulsion VOD at hole diameters greater than 270 mm can be less than ANFO due to the low density effects on the emulsion matrix. The differences in non-ideal detonation properties and Gurney ratios between the ANFO and gassed emulsion resulted in gassed emulsion NSEF values ranging from 15 per cent lower to 65 per cent higher than ANFO for equal powder-factor patterns in blasthole diameters from 102 mm to 270 mm.

Nov 8, 2011

By B A. Webler, P Su, P C. Pistorius

Advanced high-strength steels (AHSS) typically have much higher aluminium concentrations (by an order of magnitude or more) than conventional low-carbon aluminium-killed steels. The resulting lower oxygen activity at the steel-slag interface changes the kinetics and thermodynamics of steelslag reactions. Previous work showed that the rapid transformation of alumina inclusions to spinel inclusions, and spinel to periclase, occurs because of the relatively high concentration of dissolved magnesium. In this paper, experimental results on nitrogen removal by ladle slag are compared with predictions based on the available thermodynamic databases. As in previous work, the kinetics was modelled by assuming mass transfer control, with steel or slag mass transfer limiting. The results show that significant removal of nitrogen by steel-slag reaction is possible.

Aug 21, 2024

By P B. Hills

A simple algebraic method of aligning large scale underground excavations such as a crusher station or workshop or indeed any large cavern or mine layout to the optimal stress condition is outlined. The method uses the stress transformation law to determine how the component stresses vary as the stress tensor is rotated around its axis. The aim is to define the orientations at which the maximum and minimum horizontal stresses occur such that the excavation can be aligned with its long axis paralleling the trend of the maximum horizontal stress leading to the minimum potential for overstressing of the side walls. The physical environment in which the stress field is acting is unchanged. At the design location, the trend and plunge of the major principal stress is unchanged. However, the coordinate system by which the location of the stress field is described is arbitrary and the stress transformation law allows that coordinate system to be rotated to a more convenient orientation and for the component stresses to be calculated within the alterative coordinate system. The stress field is typically described in terms of normal and shear stresses aligned to a north–south, east–west, vertical, coordinate system. In this scenario, there are two orientations in the 360° horizontal plane defined by the coordinate system where the horizontal normal stresses are equal, and at 45° to those orientations, two orientations where they diverge to the maximum extent. Those orientations of maximum divergence correspond to the trend of the maximum and minimum horizontal stresses, usually designated σH and σh, and that is what the algebraic manipulation seeks to determine. This technique is a first pass assessment which relies on a knowledge of the full stress tensor. It is not a replacement for numerical modelling or detailed design, but a tool to guide planning.

Nov 29, 2022

By A Murphy

Mining plants and infrastructure, and the decisions made by their designers, can have large impacts on their environmental and social context, commonly referred to as the site or plant footprint. They can also be the source of constructive contributions to sustainable development when designers are enabled via the information, systems and tools to incorporate sustainability in engineering processes. A facility’s footprint and the project’s contribution to sustainability – economic, environmental and social aspects – are now key considerations in regulatory approval processes and are the fundamental drivers of support, or opposition, from the project’s stakeholders.Historically, plant and infrastructure designers have not been well integrated with the environmental and social professionals who are engaged to pursue regulatory approvals. Despite this, many objectives central to technical and process engineering have in fact contributed positively to a facility’s footprint and indeed its contribution to sustainable development. Examples of these objectives include increasing process and energy efficiency, and minimising the quantities of waste requiring disposal. With the framework of sustainability, mining plant and infrastructure designers are indeed at the forefront of incorporating sustainability into resource industry projects and are central to the process of obtaining regulatory approvals and ongoing stakeholder support. The process of incorporation starts with a shared understanding of sustainability and sustainable development, and continues with project processes that facilitate information and knowledge exchange throughout the project life cycle.CITATION:Murphy, A, 2014. Incorporating sustainability into mining plant and infrastructure design, in Proceedings Life-of-Mine 2014 , pp 637–646 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 16, 2014

By J Rola

This paper outlines a laboratory-based design method, founded in critical state soil mechanics, for identification of an appropriate compaction specification to ensure dilative conditions prevail across the design TSF stress range. The method makes use of the critical state line (CSL) and consolidation tests prepared at varying compactive efforts. The CSL and consolidation curves are plotted together in e-log p’ space, with the compaction curves transformed from vertical effective stress to mean effective stress using the coefficient of earth pressure at rest (K0). Consideration is given to the sensitivity of K0 as it is generally not available during the design phase. An example of the design method is illustrated with laboratory data.

Jul 1, 2021

By P Donecker

Like all chains, iron ore values chains are only as strong as their weakest link, which in ore processing is often the humble chute. While mechanically the simplest element in the iron ore flow sheet, chutes are often the most problematic and regularly the major cause of unscheduled downtime. Chute designs have remained static for decades, despite the extra demands being placed on them by grade reduction, which impacts chutes in three ways viz: 1. Higher volumetric rates as infeed increases to meet production targets. 2. Higher moisture content as mining goes below water table. 3. Stickier properties as the dilution phase is often clay based. While there is no shortage of ideas and the geometry options are infinite, the fact is that chute design has not kept pace with grade decline and has remained essentially unchanged. One reason cited for this lack of innovation is the difficulty evaluating and de-risking designs. While the power of computers running Discrete Element Method (DEM) models has advanced, the models themselves still need to be ‘calibrated’ with the dynamic properties of the ore. Flow properties commonly measured for bin design are useful for static situations only and were never intended to predict dynamic behaviour as in chutes, a critical qualification lost in the mists of time. So while they always produce a colourful and reassuring animation, DEM models informed by static ore properties often result in wildly inaccurate real world predictions. Responding to this low success rate, many operators are now utilising physical modelling to help reduce risk and avoid the consequences of having an underperforming chute in their value chain. Physical testing, in a dimensionless scale-down of the proposed system (bulk material and chute geometry), addresses the shortcoming of mathematical models designs and when used in combination with DEM is the best option. In the ideal world, the focus of chute modelling should be innovative design concepts aimed at addressing future needs, however in reality the focus is nearly always on modifications to installed chutes that are underperforming even today. This situation can be traced back to design procedures which if informed at all, are based static ore properties. As an industry, we need to break this cycle and become more proactive, which means addressing flaws in the current design process. In 30 years of providing modelling support to the industry, I have looking at hundreds of underperforming chutes in the iron ore industry. This practical experience has led to a unique and unbiased perspective on chute design and their performance in the real world. The knowledge presented in this paper can not only be used to help avoid baked-in problems now, but also help guide and evaluate designs so we can deal with the challenges of our low-grade future.

Sep 18, 2023

By C Dowding, C Aimone-Martin, P Abeel

This paper presents measurement and analysis of the dynamic response of a five-storey building to very high frequency excitation (>100 Hz) from blasting vibrations originating from a contiguous excavation of rock. Velocity response measurements in the rock and on the structure were employed to calculate the time-correlated dynamic displacement response of the building to blasting. Time-correlated structure response measurements are needed to advance the understanding of the response of urban structures to high-frequency excitation. Current regulations and understanding are based upon measurements of the response of one- to two-storey residential structures by 10 to 40 Hz excitation. The extension of these observations to taller structures when excited by high-frequency excitation needs to be investigated further.Measurements show that the amplification patterns at the ground level and top of the structure match or are lower than that observed by the US Bureau of Mines (Siskind et al, 1980) for the shorter residential structures. They decrease with increasing peak particle velocity. From the measurements, the global transverse shear strains found by differentiating ground floor and top displacements were calculated to be 12 µstrains. Time-correlated bottom and top of structure displacements show that building response may be more reflective of wave propagation up the structure than whole-structure inter-storey drift.In addition, a 3D model was used to compare computed displacements and strains to measured results. Modelled responses varied considerably, both in magnitude and location of the maximum strain. No conclusion can be made regarding the best 3D model to employ to simulate building response. More data such as motions measured at many points in the structure are needed. Maximum inter-storey transverse shear strains calculated with the model were found through the acceleration excitation and were less than 12 µstrains for 37 mm/s rock motion excitation. The inter-storey transverse shear strains calculated with rock displacement input were less than that found with the acceleration excitation.CITATION:Dowding, C, Aimone-Martin, C and Abeel, P, 2015. Measured and modelled response of a multistory, urban structure to high-frequency blasting excitation, in Proceedings 11th International Symposium on Rock Fragmentation by Blasting, pp 211–220 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 24, 2015

This paper presents an overview of the current status of mine water management in South Africa. The regulatory framework within which mine water management operates is set out, based on the principles and policies embodied in the relevant legislation. The status of the gold and coal mining industries, with regard to water management, is presented on the basis of studies that have been undertaken to develop water and salt balances for these industries. While the data is not available to quantify the status of ARD in South Africa, the range of typical mine water quality problems faced by South African gold and coal mines is presented. The status quo, problems and challenges relating to mine water management are presented and discussed. It is shown that, while there have been major strides in the last decade, and mine water management and treatment in South Africa has moved onto the forefront of mine environmental management, important problems still persist. There is still a significant amount of improvement required, particularly in the field of prediction of water quality deterioration and the application of such predictions to the identification of management actions that can be applied to prevent or minimise mine water pollution in the shortmedium- and long-term.

Jan 1, 2003

By J Elder

Magnetic separation equipment has long been used to upgrade and beneficiate a wide variety of minerals and materials. Over the years, significant advances in both wet and dry magnetic separators have improved their operability and separation performances, broadening their use.But no one answer exists to the question: what is the right type of magnetic separator? For many minerals, including ilmenite, both process routes may be viable. There are technical, production, as well as economic reasons for choosing wet versus dry. However, recent developments illustrate that a new generation of wet magnetic separators is approaching performance once seen only in dry magnetic separation. With quality and production performance becoming similar, the choice between wet and dry magnetic separation is not as cut and dry as it once was.

Oct 5, 2011

By D Bradshaw, J R. R de Villiers

The non-stoichiometric sulfide mineral pyrrhotite (Fe(1-x)S), common to many nickel and platinum group element (PGE) ore deposits, occurs in varying crystallographic forms with the different types exhibiting subtly different physical and chemical properties. These differing properties are likely to influence the flotation performance of pyrrhotite, which in the case of PGE operations is actively recovered, whereas in nickel operations pyrrhotite is depressed. In this study, examination of natural pyrrhotite samples from Southern African and Canadian nickel and PGE ore deposits revealed a variety of pyrrhotite compositions in terms of iron content (Fe7S8, Fe9S10, Fe11S12) and solid solution nickel concentration. Pyrrhotite composition was correlated with its mineral association depending on whether non-magnetic pyrrhotite occurred in conjunction with troilite, non-magnetic pyrrhotite occurred as single phase pyrrhotite, magnetic pyrrhotite occurred as single phase pyrrhotite or whether the two phases; magnetic and non-magnetic pyrrhotite co-exist. Subsequent microflotation tests of selected single phase pyrrhotite samples revealed that the non-magnetic pyrrhotite is slightly more floatable than magnetic pyrrhotite. Microflotation tests also showed that varying flotation responses occur between differing magnetic pyrrhotite samples. These differences in flotation performance are postulated to be a result of the effects of varying pyrrhotite crystallography, trace metal content and mineral association on pyrrhotite oxidation, formation of surface species and subsequent adsorption with xanthate collector.

Jan 1, 2008

By A Golsby

Gunite was invented in 1907 by Carl Akeley to repair a crumbling facade of the Field Columbian Museum in Chicago. The method used was to blow dry material out of a hose with compressed air and inject water at the nozzle as it was released. In 1911, he was granted a patent for his invention, the ‘cement gun’; the equipment used; and ‘gunite’, the material that was produced.The advantages of using the dry mix process is that the water content can be adjusted instantaneously, allowing more effective placement in overhead and vertical applications without using accelerators. The dry mix process is useful in repair applications when it is necessary to stop frequently as the dry material is easily discharged from the hose.This paper describes the applications and principles of the gunite pump system in underground coal mining and discusses why it is the preferred spraying system for both cement and plaster products.It also addresses improving productivity and examines dust, respirable crystalline silica (RCS) and health issues around gunite pump systems. The solutions include development of the latest componentry for current gunite pumps to improve their efficiency and allow their operation to be dustless.In particular, this paper addresses:why and where RCS is a problem in underground coal mininghow RCS hazards and its propagation can be managedhow the gunite pump system has become dustlesshow the gunite system has become more productivegunite occupational health and safety issues and how they have been solveda case study of gunite dry spraying.CITATION:Golsby, A, 2015. The development of a dustless dry gunite pump system in underground coal mining – a case study, in Proceedings The Australian Mine Ventilation Conference, pp 41–48 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 31, 2015

By R Knight

"In project evaluation there are two matters of keen interest to non-executive directors: the process by which an investment recommendation is reached, as well as the investment itself, as presented. It is sometimes mistakenly believed that Boards of directors are interested only in the result. That is not so. The process by which project evaluations are derived and socialised with the Board is as important as the result, sometimes more so.Setting aside the gloomy predictions of the doomsayers and looking through short-term volatility in supply and demand, the overall availability of mineral resources more often than not exceeds demand. There are in reality more development projects in prospect at any one time than are needed to meet the market. Only the fittest will prosper, although some others may survive.Optimism springs eternal in the mining industry and every project promoter, executive or entrepreneur has a convincing project development case. Some will create value for shareholders, but the historical evidence suggests that many will fail to meet the expectations set in their evaluation.Boards of directors make the final decision to invest, or not, in a new mine. Knowledge is power, and on that basis the balance of power favours management. Management has the facts (or in some cases, what passes for fact) and the passion to invest. The non-executives have the power of approval – yes or no – but before making a decision directors must demonstrate due diligence, the essential precursor to project approval.Management has a vital part to play in facilitating that due diligence process and in encouraging the independent thought processes of the Board. A closed approach by management fosters a negative, risk-averse attitude on the part of the Board. One that encourages an understanding of the rigour of the project evaluation process and the robustness of the result will allow directors to understand better the implications of their decision.CITATION:Knight, R, 2016. Project evaluation – a non-executive director’s perspective, in Proceedings Project Evaluation 2016, pp 11–19 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016