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By L I. Rozman

"There have always been development projects that fall short of expectations. In the last decade, we have seen more than the usual number of mining and oil/gas development projects taking significantly longer to develop and costing materially more than expected. The recent resource-equity market slump proves that investors are now far more cautious about investing new capital in the mineral and petroleum resources sector.What have we learned since 2005? Why have projects missed their targets? Why do investors often feel misled?Valuation of a project and the estimation of value is a more complex process than the evaluation of the merits of project development. The merit of project development can be clear from a prefeasibility evaluation, but this is no reason to skip the rigour of a feasibility study. The valuation of any project that is developed with any added risk should be discounted for this added risk.The development of a project impacts on other stakeholders, and the indirect cost of these impacts can have material implications for the cost structure, time and ultimate valuation of the project for its financial backers. The development of new projects (and thereby supply) can also have an impact on commodity prices, and therefore an impact on returns for financial backers.This paper will provide commentary on the author’s experiences and observations as a project developer and operator for 25 years, before becoming a project financier a decade ago.CITATION:Rozman, L I, 2016. Project evaluation and valuation – an investor’s golden rule, in Proceedings Project Evaluation 2016, pp 31–36 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By M Sandy, P Bamford

The Challenger Gold deposit was discovered in 1995 by Dominion Mining Ltd in a remote western area of the Gawler Craton in South Australia. Mine development commenced in 2002 with initial production from an open pit supplemented by ore from a very small adjacent auxiliary pit. Development of the underground mine commenced in 2004. The orebody plunge of just less than 30 degrees requires careful attention to mine design. Production from the M1 orebody, with less than 800 ounces per vertical metre (ovm) and very limited æsurgeÆ capacity, requires careful scheduling and implementation to ensure continuity of ore feed for milling. Initial production results from underground stopes included more dilution than anticipated. The narrow, high-grade zones proved to have much more complex geometry than early interpretations had indicated. Greatly improved understanding of the mineralisation controls resulted in important changes being made to the underground mine design and method. Coupled with careful control of development and drilling and blasting practices, this resulted in an immediate reduction in dilution and high recoveries of the resource. The benefits of these changes flowed through in the 2005/06 financial year, resulting in a 150 per cent increase in gold production to 108 080 oz and a sharp reduction in cash operating costs to A$280/oz. This was followed in 2006/07 with production of 108 91 oz of gold at an operating cost of $309/oz and in 2007/08 with 109 326 oz of gold at $367/oz. Production to June 2008 has been mainly from the M1 orebody, with the lowest stoping to date on the 580 m Level (615 m below surface) above development mining on the 520 Level. The rate of vertical advance of mining this orebody has averaged 150 vertical metres per year. The increased current combined JORC compliant resource and reserve position of over one million ounces, now includes the M2 and M3 orebodies with a current total average gold inventory up to 1400 - 1500 ovm. Exploration has intersected other shoots and all shoots are open at depth. The adjacent M2 and M3 orebodies are being developed for stoping. The narrow width of these zones from 1 m up to 4 m will require continued focus on ore zone definition, accurate development and careful drill and blast practice. In addition, to minimise cost increases in the current period of rapidly escalating labour, equipment, consumables and energy costs, high productivities will need to be maintained to allow the established rapid mining advance to continue at low unit costs.

Jan 1, 2008

Population growth, social inequality, pollution, global warming, poverty, overexploitation of natural resources and biodiversity loss, are a few examples of the many challenges facing the world today. Sustainable development is about meeting these challenges and improving the standard of living for the benefit of the maximum number of people. These issues concern governments, communities, environmental and social action groups and individuals all over the world. Business too, has a fundamental role to play in delivering sustainable development. In particular, sustainable development is becoming increasingly recognised as a critical issue for the oil and gas industry to address and act upon. BP is committed to positively respond to the challenges posed by the objective of sustainable development.

Jan 1, 2002

GENERALTHE coal deposit, where it is being worked, consists of a bed of brown coal varying in thickness from 120 ft. to 200 ft., covered by an overburden of clay, drift, loam, etc., of a thickness of 22 ft. to 40 ft., and averaging 28 ft.The overburden is first entirely removed from the coal, and then the coal is excavated by. large revolving shovels which work at the bottom of the hole or open cut in the coal and deliver it in shovel bucketfuls to the transport system. The shovels owned by the Commission and available for this coal excavation are two Bucyrus steam revolving shovels, one being type 150B, weighing 150 tons, having a 21-cub. yd. bucket, and capable of digging a 47-ft. face; and the other being type 175B, weighing200 tons, having a 31-cub. yd. bucket, and capable of digging a 61-ft. face.In addition to these two steam shovels, the Commission has recently obtained a No. 250 Ruston electric revolving shovel weighing 340 tons, and having a bucket of 10 cub. yd. capacity, and capable of digging a 75-ft. face. When this electric shovel has been erected it will replace the steam shovels on the coal excavation, and the permanent transport system has been designed to take delivery of the coal from its bucket.The duty to be performed by the transport system is to take the coal from the shovels, elevate it out of the open cut, transport it to the screening house, deliver it iuto the hoppers at the top of this building, then to take the coal after it has passed over the screens and distribute the required grades to the power house and to the briquetting plant.

Jan 1, 1924

By J P. Sykes, T C. McCuaig, M Jessell, A Trench

The election of Donald Trump and the Brexit referendum herald a shift towards a tighter definition of economic value, at the expense of the broader value concept of sustainable development; as well as a rise of protectionism, reversing a long-term trend of globalisation. However, the situation is complex, especially over the longer term in which mine project development and exploration operates. The minerals sector should proceed with caution. A greater focus on the local impacts of mining may be strategically beneficial, not only to mitigate against a potential protectionist future, but also because sustainable development has become more ‘localist’ via the concept of ‘social licence to operate’, whilst globalisation also seems to provoke increased ‘localist’ sentiments (known as ‘glocalism’). Localist strategies, therefore, seem a good hedge against multiple political futures. By contrast, moving away from sustainable development appears strategically riskier. Not only are ‘unsustainable’ activities, such as pollution and civil rights infringements harder to reverse, but a movement towards a more sustainable global economy may already be predetermined, even if the journey there may seem oblique. It appears that the increased economic development that is coveted globally is intrinsically linked to a rise in environmental and social consciousness.CITATION:Sykes, J P, Trench, A, McCuaig, T C and Jessell, M, 2017. Charles Dickens on the (potentially) changing role of globalisation and sustainability in the long-term future of mining and exploration, in Proceedings Tenth International Mining Geology Conference 2017, pp 239–256 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 20, 2017

By P Jones

Fosterville Gold Mine is an underground operation located approximately 20 km northeast of Bendigo and 170 km north of Melbourne. Fosterville is the most productive gold mine in Victoria, producing over 100 000 ounces of gold annually. Access to the underground is via two portals cut into previously mined open pits. Fosterville is 100 per cent owned and operated by Northgate Minerals, a gold and copper producer with mining operations, development projects and exploration properties in Canada and Australia. (Northgate Minerals Corporation, 2010).Underground operations commenced in 2006 with ore production focused on three orebodies – Phoenix, Ellesmere and Falcon. Primary ventilation to the existing operation is provided by wall mounted exhaust fans located underground. This system provides approximately 220 m3/s of primary ventilation to the operations with intake achieved through the portals. Exploration drilling during recent times has uncovered another lode, the Harrier orebody, located 2.2 km to the south of the existing workings. Due to the location of the new Harrier orebody, vent analysis revealed the requirement for a separate source of primary ventilation to service Harrier. Figure 1 shows a current underground long section and the location of Harrier in relation to the existing workings. A number of options were considered, including a parallel decline from one of the existing two portals, however, a 4 m diameter, 350 m deep surface ventilation shaft was selected as the most suitable and feasible option for the mine.In December 2009, geotechnical drilling commenced to determine the most suitable location for the shaft. Site locations were constrained by a number of factors including interaction with current and planned surface infrastructure as well as proximity to nearby community members at the southern end of the mining lease. Results from the geotechnical drilling indicated that the majority of the proposed shaft would be suitable for a 4 m raise bored shaft. However, the top 40 m of the proposed shaft were deemed unsuitable for raiseboring due to zones of weakness that would likely influence the stability of a 4 m diameter shaft (Robinson, 2010). Following independent geotechnical advice and input from experienced raiseboring contractors, it was decided to construct a 40 m presink prior to raiseboring activities.A crane mounted auger was chosen as the preferred method to construct the presink. This method differs substantially from traditional blind sinking methods which are highly labour intensive. The auger, or drill, is designed and built to be attached to a crane base using engineered pivoting cradles. The auger is suspended from the crane jib by pennant ropes attached to hydraulic rams. The auger applies rotation and axial loads to the drilling tools via a telescopic steel bar (Kelly Bar). Drill tools are attached to the bottom of the Kelly Bar and comprise an assortment of drilling buckets and reaming barrels. Drilling buckets cut in situ material and collect the spoil for removal and are used for the excavation of the ‘pilot hole’. Reaming barrels are used to expand the diameter of the excavation by directing cuttings into the pilot hole which are then removed by the drilling bucket. In June 2010, the presink was constructed utilising a crane mounted auger with support to the shaft walls applied via a remote fibrecrete unit. The excavation method involved cutting a series of smaller diameter holes (2.4 m wide) before reaming out to the final diameter (4.7 m wide) in 4 - 5 m vertical increments. Fibrecreting activities were carried out on the backshifts, to ensure the stability of the excavation and minimise interaction between the two units. The presink was completed on time and offered many advantages compared to traditional blind sinking methods, including safety, costs and timing. This paper will examine the benefits of this method as well as lessons learnt and future applications in the mining industry.

Mar 21, 2011

By T QUINLAN

A resource estimate uses data obtained by sampling an orebody. An example is described in which a random drilling pattern did not provide a representative set of assays, and the estimated resource was significantly less than the mine production. It is believed that a better estimate would have been made if the exploration holes had been drilled on a regular grid.

Jan 1, 1992

Research on the Design and Processing Characteristics of 320 m3 Air-Forced Mechanical Flotation Cell

Sep 13, 2010

By D Yates, C C(te, M Rodgerson

This paper describes how specific technical and regulatory issues related to water management have been dealt with at Anglo AmericanÆs Moranbah North mine. It compiles the collection of practices that have been implemented since 2010 in response to climatic and regulatory drivers. Operations must continually evolve as they face emerging challenges. For Moranbah North mine, one key challenge is the integration of its mine water system to that of its new neighbouring mine Grosvenor. The commitment to ongoing improvement has placed the mine in a good position to face this particular challenge.Water-related risks were identified then mitigated by technical practices, which have focused on improving underground water management, increasing storage capacity and installing a state-of-the-art control system for the management of water on-site and for releases of mine-affected water to the environment. These practices are supported by an extensive monitoring and audit system that provides confidence in the reporting of activities and outcomes. The strategy has helped the operation with its continual attempts to minimise reliance on high-quality third-party water and improving its interaction with the surrounding environment and community.CITATION:Rodgerson, M, Yates, D and C(te, C, 2013. Leading practice water management at Moranbah North Underground Mine, in Proceedings Water in Mining 2013 , pp 301-310 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 26, 2013

Banks' focus in using cash flow methods can differ markedly from that of equity investors. This paper attempts to explain and describe bankers' approach by: ò outlining the fundamental difference between banks' and investors' risk / return profiles. ò describing lenders' consequent use of cash flow methods in mineral valuation. areas. explaining lenders' specific treatment of key risk Fundamental to understanding banks' appraisal of mineral projects is the appreciation that lenders have a basically different risk profile and outlook from those familiar to equity investors. Lenders do not normally participate in any project upside. The economics of lending dictate that banks can only accommodate a low probability of loan default and consequently banks' principal focus in mineral ""valuation"" is ensuring an acceptably comfortable probability of debt repayment. A simple conceptual explanation of lenders' risk / return position is outlined.

Jan 1, 1994

By A Buckley

Many policy issues facing the mining industry and affected communities are at a level of complexity that they can be called ‘wicked’ problems. The term ‘wicked’ in this context is used, not in the sense of iniquity, but rather as social and economic issues highly resistant to resolution. For the resource extraction sector and affected communities there are an array of challenges embedded in the industry’s production and profit paradigm, the remoteness of mineral reserves and affected communities’ expectations of economic benefit and a positive legacy. The mining industry as a whole is dominated by economic, political, legislative and market structures that influence and constrain interactions between mine operations and local communities. For communities, with particular reference to regional Western Australia, intractable problems include the uncertainty of, yet increasing dependence on, a mining economy. Questionable outcomes for local communities include the limited realisation of local employment and business development benefits, and low overall outcomes or low multiplier effects. ‘Wicked’ problems, according to the literature, are best addressed via collaboration. In the mid-west region of WA, with mining and infrastructure construction underway, alliances have formed between mining companies, the major port and rail infrastructure project (Oakajee Port and Rail) and regional and local governance stakeholders. The major impetus for these affiliations is to expedite planning and associated infrastructure development taking into account the lessons from other mineral-led regions. What has resulted is an array of innovative approaches to stubborn problems including planning well in advance of full-scale mining; regionally coordinated procurement; ‘mine ready’ local businesses; and strategic investments in social infrastructure; including community trust funds paid in advance of project delivery. This paper examines these innovative approaches/alliances and assesses their effectiveness in addressing long standing mining/community dilemmas.

Nov 22, 2011

By D J. Bradshaw, E M. Wightman, B Newcombe

Flash flotation plays an integral role in many of the gold and sulfide mineral concentrators around the world, and yet despite this widespread use, very little information on this unit process is available in the published literature. For operations to maximise the performance of their flash flotation circuits, understanding how these cells operate, the nature of the particles they target and how to predict whether a flash flotation cell should be used on a specific ore type is of vital importance. This paper provides a summary of the key findings of a large flash flotation research project based in the operating environment of a refractory gold concentrator. The influence of key flotation performance criteria including gas dispersion, residence time and particle segregation within the cell will be discussed and recommendations for process improvements will be made throughout. The nature of the particles within the flash cell will be examined, as will the impact on the type of particles that are passed to downstream processes when the flash flotation cell is taken off-line. The development of a laboratory method to determine whether an ore is suitable to undergo the flash flotation process is also presented for its potential to aid in flow sheet development and optimisation for new ores.CITATION:Newcombe, B, Bradshaw, D J and Wightman, E M, 2012. Into the belly of the flash à Insights into the mechanisms at work within a flash flotation cell, in Proceedings 11th AusIMM Mill OperatorsÆ Conference, pp 163-170 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 29, 2012

By H S. Shin, H Jin, B H. Ryu, J Lee

Prospecting ice on the Moon necessitates drilling systems to obtain subsurface samples and measure the composition of ice deposits. Landers and rovers equipped with drilling equipment are essential for analysing ice and subsurface resources located at the Moon’s poles. These devices must be small, lightweight, low-power, highly efficient, and high-performance units to function properly in the extreme conditions of the lunar environment. Researchers have developed a prototype drilling apparatus capable of operating in atmospheric and cold environments. A newly developed drilling system in Korea, capable of performing not only sampling but also subsurface investigation, is introduced.

Sep 1, 2024

By E Philippa, B Miller

Material characterisation, ore sequencing and process capability are commonly regarded as the key parameters to consider in designing and operating an effective pit to plant supply chain. Therefore, an understanding of rock mass properties is the starting point for controlling the presentation of problematic material to the ore handling plant and optimising process utilisation. There are different methodologies for characterising problematic material and ore handleability which exist across a spectrum of sophistication. At one end of this spectrum are simple indices built using first principles geology and at the other are complex algorithms developed using advanced analytical methods, machine learning and ore traceability. Regardless of the method, without an integrated process for careful management of problematic ore, material handling delays (ie blocked, bridged, blinded and buried events) will interrupt the stable flow of production. The ability of the ore control geologist to mitigate these delays is central to the ore handleability challenge. This paper describes a quick and easy solution that links the presentation of ore to the operating window at the crusher. This operating window is based on material characterisation, using the physical, textural and mechanical properties of the rock mass, and crusher performance. It also describes how a basic problematic ore index (POI) can be developed using ore tracking to the production face, petrographic studies of ore texture and mineralogy, and existing variables in the geological model. Finally, this paper will demonstrate that by coding the POI into the geological model for mine planning, together with performance monitoring through compliance to plan routines, material handling delays at the crusher can be reduced, unlocking significant resource value.

Mar 22, 2022

By S Coward, S Jackson, S Moayer, J E. Vann

The variability and uncertainty of mineralisation, coupled with subsequent uncertainty in mining and processing, is often paid scant regard or overlooked during the evaluation of mining projects. In many instances, when the project transitions to the operational phase, the reality of feed or product variability and the consequences of unquantified uncertainties throughout the value chain become obvious. The outcome is the familiar picture of frequent ramp-up underperformance and failure to deliver on planned targets and objectives.Both mine and exploration geologists are expected to generate mineral deposit models that are based on an integration of diverse sources of data. These multifaceted deposit models already play a pivotal role in the design, development and optimisation of mining project value, and the trend to a fully digitally engineered future means that this importance is increasing. It is therefore vitally important that tools be made available to the geologist (as well as mining engineers and metallurgists) that enable them to characterise and assess variability and uncertainty via appropriate deposit models and thus articulate their impact on potential project configurations and decisions. Scenario-based project evaluation (SBPE) provides a framework for full and proper analysis of the downstream impacts of inherent deposit variability and uncertainty on project performance.SBPE has been developed by the authors over several years and aims to propagate geological uncertainty and variability through the mining value chain. The outcomes of SBPE can be tested against future external scenarios capturing financial, economic and socio-political factors that also drive project performance. Stochastic representations of the orebody (via conditional simulation (see Chilès and Delfiner, 1999)) that explicitly incorporate variability and represent uncertainty are propagated through the value chain on a block-by-block basis (ie on a much more granular basis than traditional project evaluation approaches).Conventionally, metallurgical processes are modelled with deterministic equations (eg regression models) based on limited data. The SBPE approach allows for the modelling of process performance uncertainty using geometallurgical sampling fully. Multiple outcomes of SBPE are passed through financial modelling, which can also incorporate stochastic components, thus allowing full quantification of the risks and opportunities of a set of project alternatives. The value of the SBPE system is that once a base case has been established, multiple engineered alternatives coupled with external scenarios are easily evaluated and compared in terms of incremental value.A new case study of SBPE is presented that shows how, by analysis of the various aspects of variability and uncertainty, project managers are able to focus on the areas that have the greatest ability to reduce risk and/or add significant value. This can lead to sufficient flexibility being built into operations that allow operators to cope with the real orebody delivered to the plant.CITATION:Jackson, S, Vann, J E, Coward, S and Moayer, S, 2014. Scenario-based project evaluation – full mineral value chain stochastic simulation to evaluate development and operational alternatives, in Proceedings Ninth International Mining Geology Conference 2014 , pp 21–32 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 18, 2014

By K H. Esbensen

The Theory of Sampling (TOS) has contributed significantly to chemometrics by allowing data analysts to become more aware of total measurement uncertainty as total sampling error + total analytical error. This has allowed a new view on, for example, validation of multivariate data models and their performance. This keynote focuses mostly on the reverse perspective: how can chemometric multivariate data modelling be of help in an augmented sampling context? The basic principles of multivariate data analysis are presented and application examples are outlined from several areas in the geosciences to facilitate answers to the question posed, including a geochemical multivariate anomaly concept defined by a multivariate background model. Applications from geochemical prospecting, geochemical mapping, environmental chemistry and anthropogenic outlier recognition are outlined, as are the interdependent relationships between geostatistical modelling (variographics) of singular variables versus linear combinations of a multitude of variables, in chemometrics called scores. The potential synergy between chemometrics and TOS is far from exhausted at this time; much work remains.CITATION:Esbensen, K H, 2014. Theory of sampling in a multivariate perspective – what can chemometrics contribute?, in Proceedings Sampling 2014 , pp 7–10 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 29, 2014

By G Pizarro, O Miranda, D Rosales

In panel/block caving mines, large amounts of information are collected at the operations. This information includes grades and extracted tonnage, fragmentation, lithology, design of stopes and main infrastructure, geotechnical information, overbreak progress, seismicity, numerical modelling and many other mine variables. To improve the reliability of the production plan it is required to integrate the mine data into one platform. In this paper, the logic of a new technological platform is presented for analysis, modelling and design in panel/block caving mines. The platform includes an acquisition system for mine data and geotechnical information, a back-analysis module for calibrating statistical models and a module of visualisation of the results. The application and benefits of the platform is illustrated for mining induced seismic risk for panel/block caving mining operation. The platform can be used in the mine design and planning processes and is useful for reducing uncertainty in the mining business of panel/block caving operations.CITATION:Miranda, O, Rosales, D, Pizarro, G and Vallejos, J, 2016. Development of an integrated platform for the analysis, modelling and design in panel caving mines, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 237–240 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By P G. Doig

Recent drops in commodity prices and economic uncertainty have seen many businesses re-evaluate their operational expenditure to ensure mine profitability. The high capital and operational cost of truck and digger fleets has resulted in loading and hauling of material being a significant proportion of a mine’s expenses (Nel, Kizil and Knights, 2011), thus it is often one of the first areas to be considered for cost reduction. If an operation requires additional trucks to maintain or improve productivity, a robust justification is crucial due to the expenditure involved.Mining schedules form the basis of productivity and cost estimations for mining operations and therefore must have a significant level of confidence with regards to achievable quantities and rates. Traditionally, a mining schedule is produced without detailed consideration of the trucking capacity or requirements. Although some mine planning software incorporates haulage predictions into schedules, most cannot model the dynamic nature of dumping and haulage. Previous studies have shown that it is necessary to have detailed haulage analysis instead of the traditional mining block centroid to dump block centroid methods for more realistic mining schedules and cost estimation (Doig and Kizil, 2013).Recent developments in software have allowed the dynamic integration of haulage analysis with mining schedules. Engineers can now create mining schedules in conjunction with dumping schedules, allowing mining schedules to reflect the restrictions created by the number of available trucks, combined with dynamic consideration of available in-pit and out-of-pit dumping locations.A study has been completed producing a mining schedule in conjunction with a dumping schedule and haulage analysis. Multiple schedules were run with various haulage strategies (including minimising rehabilitation liability) and truck availability to identify the impacts on coal production, and hence revenue. A financial analysis was then completed where a net present value (NPV) was calculated for each scenario. The study showed that trucking shortfalls can significantly impact mining schedules and cost estimations, both in terms of cost as well as revenue lost when trucks cannot maintain forecast production rates, thus dumping schedules and haulage analysis should be completed simultaneously. If dumping and haulage is not considered when planning the mining schedule, a mining business is ignorant to the impacts trucking has on the mine production, closure risk and profitability.CITATION:Doig, P G, 2014. Value impacts of truck limited scheduling, in Proceedings Life-of-Mine 2014 , pp 513–524 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 16, 2014

The operations management system at Olympic Dam has evolved over a two-year period to the state described in this paper. This evolution has been driven largely by the requirements of the recent expansion of the Olympic Dam operation from three to nine million tonnes of ore per year. Such a change process demands an holistic approach to mine management and several techniques have been employed including XPAC, Mine Works Planner as well as a basic philosophy of æjust-in-timeÆ completion. The philosophies, software and tracking mechanisms for managing a large tonnage operation are described, outlining a fully integrated scheduling system from shift to shift detailed activity planning to a 20 year production plan. Moreover, the vision of production exceeding the current limit of nine million tonnes means that there are to be further developments to this state-of-the-art system in use at the Olympic Dam mine.

Jan 1, 2000

The complicated mining-geological conditions in the Kuzbass have led to some difficult mining situations in the past. Now, with historical data, supplemented by geomechanical information and measurements, together with an appropriate kinematic theory, a more reliable basis exists for prediction and control of the geomechanical state during extraction, with caving and with backfilling. Continued progress and improving reliability comes from data banks and computations, and now prediction of geomechanical situations is upgraded by more routing measurements and monitoring. Not only in the Kuzbass, but throughout the USSR, 14 dedicated groups are ready to solve various specific problems of prediction an control of geomechanic situations with assured increase in the quality of mining.

Jan 1, 1991