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By M Boon, M Franklin

This paper outlines the journey of cultural maturation and management system development at the Mt Rawdon (MRO) gold mine from its acquisition by Evolution Mining Limited (Evolution) in late 2011 to 2016.Evolution embarked upon a series of projects that aimed to improve the operational consistency and implementation of change on-site, while leveraging off the existing strengths of the operation. This document describes the gaps that were identified, the processes used to close them, and the resulting cultural change and production outcomes, with a specific focus on how to optimise the culture at any mining operation.MRO had a history of four owners in less than three years when it became a key asset of Evolution. The site leadership team (SLT) decided to influence the culture at MRO by reviewing and upgrading the existing management processes.The first priority was to improve transparency and collaboration at the SLT level, followed by improving competency in project management. The next phase was to strengthen the internal communication using a deliberately designed network of meetings, communication screens and other initiatives. Once there was some traction, the focus moved toward increasing production volume and decreasing cost per unit by improving short-term planning and execution capability. Together with other initiatives, this resulted in improved collaboration between all functions, which in turn netted over 37 per cent mining production uplift.Following solid success, a process of prioritisation and alignment management was implemented. This supported the ‘Mine to Mill one operation’ ideal and allowed the SLT to decide month-by-month what actions were to be prioritised. These priorities incorporated production realities and longer term imperatives of the balanced business plan.Much of this work was completed during a period of declining gold prices and a relentlessly strong Australian dollar, making it difficult to justify spending money on improvement projects. This work proved critical for the operation’s long-term survival.CITATION:Boon, M and Franklin, M, 2016. Improving consistency of delivery at Mt Rawdon Operation, in Proceedings International Mine Management Conference, pp 305-320 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By Swayn G. P, Floyd J. M

BHAS, together with the G.K. Williams Laboratory, and Ausmelt Pty. Ltd., has examined a number of possible alternatives to conventional silver cupellation in gas fired reverberatory furnaces. Of these alternatives, a Sirosmelt furnace was preferred for both technical and economic reasons. Small scale work on Sirosmelt processes was carried out at the G.K. Williams Laboratory at Melbourne University in 1985/86. Pilot scale work was carried out at the Ausmelt plant in Melbourne in July 1987. Board approval for construction of a full size plant was received in October, 1988, and construction of the plant is currently underway. The plant is expected to provide significant savings in operating costs and silver inventory. Hygiene around the furnace should also be greatly improved. An increase in cupellation rate of at least ten times is expected, compared with the conventional reverberatory furnace.

Jan 1, 1989

By K Nakashima, K Aya, T Sumita, N Saito

Electro slag remelting (ESR) is one of the methods used to produce high-cleanliness steel. In the ESR method, the product steel electrode is immersed in flux, and the electrode is melted by the Joule heat of the flux generated by high current. CaF2-based melts are mainly used as fluxes, but the electrical conductivity of CaF2-based melts varies widely among researchers and measurement methods. Therefore, this experiment aims to measure the electrical conductivity of CaF2-based melts based on the van der Pauw-Ohta method, which does not require the cell constant that is a fundamental error factor in electrical conductivity measurement at high temperatures. The measurement temperature was set at 1450–1600°C, and dehydrated Ar flowed through the furnace at 200 mL/min. Electrodes were fabricated by Pt-30mass per cent Rh alloy, and the electrodes were connected to an impedance analyser using a four-terminal probe. The electrodes were immersed in the melt, and the impedance and phase angle were measured by AC frequency sweep (50 Hz to 200 kHz). The electrical conductivity was then calculated by utilising the impedance’s real part values when the impedance’s imaginary component was zero. The electrical conductivity showed a positive temperature dependence. The electrical conductivity of 60(CaO⋅Al2O3)-40CaF2 melt increased with increasing temperature but was found to be roughly one-third of those of the previous studies. In the conductivity measurement of 60(CaO⋅Al2O3)-40CaF2 melt, the AC frequency with a phase angle of 0° was found to be different depending on the temperature and immersion depth. By sweeping the frequency, the impedance at the phase angle of 0° can be obtained, which enables us to measure the electrical conductivity more accurately.

Jun 19, 2024

By Ring R. J, Waters D. J, Vautier F. E, Fulton E. J

Laboratory leach tests have been carried out by the Australian Atomic Energy Commission to compare the effectiveness of Caro's acid (permonosulphuric acid) as an alternative oxidant to pyrolusite in the leaching of uranium ores. Results demonstrated that Caro's acid reduced acid consumption in leaching and the lime required for neutralisation of tailings liquor. The uranium extraction was unaffected by choice of oxidant.Following this study, Interox Chemicals Pty Ltd arranged a plant trial using Caro's acid at the Nabarlek uranium mill of Queensland Mines Ltd. The trial confirmed that significant savings in acid and lime usage can be achieved under plant conditions.Plant operations also demonstrated that Caro's acid has a number of significant operating advantages over pyrolusite.Queensland Mines Ltd have recently decided to convert their leaching process from pyrolusite to Caro's acid. The new system is expected to be fully operational by mid 1983.

Jan 1, 1983

By R Hargreaves, T Elkington, W J. Shaw, G W. Booth

Every day, around the world, thousands of tons of ore are loaded onto ships completing the miningproduction process and starting a multimillion-dollar economic transactions process. These transactions are based on the supply of tons of a commodity with certain specifications of assays of the main element (or physical properties) and concentration of contaminants, which are finally verified and evaluated by buyers, and also are considered ‘as true’ during Reconciliation process. On Sample Stations, this ‘true’ is based on a few kilograms of sample, often representing thousands of tons, that are sent to laboratories for further sample preparation and chemical analysis, where finally assay information is obtained from a few grams of pulverised sample, and are used for further production, planning, operational and financial-marketing decisions. Different International Standards (depending on the commodity) are used to establish the methodology to be followed, to set-up and obtain samples from the Sample Stations, and the specifications are visually inspected to give an estimation on the performance of the sampling point. This paper seeks to highlight with examples, the importance of the implementation of a continuously monitored Quality Program (QAQC and QM) on Sample Stations, focused on the parameters that directly affect the quality and representativeness of the samples. By this implementation, a proactive approach and better-informed decisions can be taken for mining companies to: a) quantify/improve production and reconciliation results, and b) to supply the right specifications of shipped ore, increasing the value of the Resources. Finally, laboratory results are normally used as an indication of the quality of the information applied for the economic transaction, but it should be considered, clarified and highlighted that the laboratory will only process and analyse a sample obtained from a Sample Station, and potential problems on bias or precision may occur in stages prior to the laboratory reception. Hence the importance of the implementation of a quality assurance program that protects multi-million dollar decisions.

Mar 22, 2022

By T Ross, S Cameron

The requirement to use explosives in ground temperatures exceeding 50¦C is becoming more common as mines work to maximise the recovery of their resources. Orica Explosives was requested to assist in the development and implementation of æhot blastingÆ safe working procedures at Liddell Coal Open Cut in the Hunter Valley. The mine operator, Hunter Valley Earthmoving (HVE), had to contend not only with elevated temperatures in their overburden resulting from burning coal beneath, but also old underground workings which tended to exacerbate the problem. The paper discusses the following issues:the consultative process that was used to develop the procedures employed to ensure the process could be carried out safely; the technical issues surrounding blasting in hot ground, including temperature monitoring, product selection, application and design to ensure safety and performance were maintained; the need for confidence and trust in the team that was working together in a potentially hazardous environment, the emotive issues that were encountered and how they were addressed; the value of a regular review process combined with open and honest communication to ensure the procedures represented best practice and that all stakeholders understood the process; and the value delivered to Liddell Coal when sterilised areas of coal became accessible with little disruption to the mining process. The paper also discusses the challenges that were encountered in the Reservoir Block where proximity to major power lines and rail infrastructure meant that hot blasting procedures had to also consider vibration limits and the need for Energy Australia to disconnect the power.

Jan 1, 2001

By D M R Stone

Failings di,posal presents many challenges at metal mines in Peru where the extreme relief yields very little useable land area. These challenges are amplified by other hazards such as the high seismic environment, high rainfall, and frequent debris torrents down the steep hillsides. As a result many mining operations have resorted to in-river disposal of mill tailings. This paper presents a case history of one underground metal mine located in the high Andes mountains of Peru where in-river disposal of tailings has been used for some 30 years. The paper outlines a comprehensive engineering study that was aimed at increasing the utilisation of tailings disposal underground. The scope of this study included modifications to the grinding and flotation circuits to produce a high sulphide and low sulphide tailings for underground and surface disposal respectively: mapping and cataloguing of abandoned stopes for hackfilling: modifications to the existing backfill system to improve icliahility and throughput, and a preliminary evaluation of alternatives Such as silicated and paste fills.

Jan 1, 1998

By A S. Lund

Optimisation of the underground mining production process benefits from informed decision making during the process of explosive rock fragmentation. Selection of the most appropriate bulk explosive products for underground production blasting is an area of endeavour that offers significant economic upside if correctly and thoroughly undertaken. The explosive selection process is facilitated by a clear understanding of:the physical and detonic properties of the alternative explosive options available; the response of different rock masses to these different explosive options; and the importance of maintaining a clear focus on desirable blast outcomes in order to enhance value creation aspects of the mining production process. The level of understanding of these issues is raised through the application of measurement and modelling technology, quantifying the effects of blast design (and implementation) on process outcomes. Homestake Darlot and DynoConsult applied a range of dynamic blast measurement and outcome modelling techniques in order to explore the relationship between rock properties, explosive properties and mining process efficiencies. A campaign of vibration and explosive Velocity of Detonation (VoD) measurement produced feed data for use in vibration and fragmentation modelling during the extraction of one of the major stoping blocks at Darlot Gold Mine. The paper describes the use of these tools and discusses the understanding gained concerning the limitations and capabilities of, and the reconciliation between, a selection of analysis and modelling approaches.

Jan 1, 2001

By G Hancock, A Kemp, I Taylor

The mine site is situated south east of Port Hedland in the Pilbara region of Western Australia. A detailed engineering design was undertaken for six irregularly shaped waste rock dumps at the site. The design was undertaken to ensure long-term stability of the dumps and optimise material movements for closure construction. The Watershed Erosion Prediction Program (WEPP) and SIBERIA landscape evolution modelling was undertaken for the landforms using regional and site-specific material characteristics to provide an indication of the maximum allowable slopes and corresponding slope lengths for long-term stability.The majority of the waste materials present in the waste rock dumps are considered likely to be subgrade banded iron formation (BIF) and chert, which is generally competent material. The presence of a large number of dolerite dyke swarms indicates appreciable volumes of dolerite were produced as waste from the pits. Geological records also indicate that the dolerite is logged as being heavily kaolinised in the geological logging, hence kaolinite is very likely to be present within the waste dumps on-site. This material has an elevated risk of being highly erodible/dispersive. Clays and shales are also likely to be present in the dumps and are considered to be less competent material (relative to the BIF/chert).The final design configuration of the largest existing ‘unplanned’ waste rock stockpile is compared to a hypothetical continuous ten degree outer embankment alternative. This paper will present a brief description of the alternatives for closure of three waste dumps in close proximity to each other and how the detailed design based on site-specific materials and conditions compare to an alternative approach blankly assuming that most materials will be erosionally stable at less than ten degrees.CITATION:Kemp, A, Taylor, I?and Hancock,?G,?2014. Landform design for Pilbara mine site – why plan and design waste rock dumps for closure based on site-specific conditions?, in Proceedings Life-of-Mine 2014 , pp 47–54 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 16, 2014

Pyrrhotite is pyrophoric when in a finely divided form. The problems of disposing of large quantities of finely divided pyrrhotite separated out by metallurgical processing from ore are formidable. In the case of an underground mine, a solution to the problem of disposal is to place the pyrrhotite in the stoped out areas and seal from any air supply. Further, the pyrrhotite could be diluted with tailings which would reduce the possibility of combust- ion. Several enquiries to various centres and authorities have shown that the products of the slow oxidation of pyrrhotite with moisture present can cement an inert matrix into a stable fill similar in physical prop- erties to fill stabilised with Portland cement. Stabilised fill can be used to advan tage with a suitable mining method to provide high recovery. The investigation demonstrated that air and 15% w/w water must be present for the fill to harden and that the sizing of the particles is a critical factor in drainage of a hydraul- ically placed fill and subsequent even harden- ing of the fill in a stope. With the materials used in the experiments in which the - 51 micron component of the tailings had been dis- carded, an optimum mix was found to contain 4:1 tailings/slag ratio and an overall pyrr hotite concentration of 8% (all proportion by weight). Approximately 34 days after drain- age to 15% moisture in natural air flow condit- ions, an unconfined compressive strength of 1.862 MPa was attained. A subsequent experi- ment was conducted with a sample of optimum mix in a pipe one metre long in forced air flow conditions. At a superficial velocity of 3.Om per hour the mix required 155 hours to harden to 1.862 MPa after drainage to 15% w/w moisture content. The pressure drop bet- ween the top and bottom of the mix in the pipe remained constant at 9 KPa/metre length. This result suggests that forced air flow conditions will increase the rate of hardening. No dangerous effluents were detected in the course of the experiments which could affect mine equipment or personnel.

Jan 1, 1973

By E Shilov, R Dixon, L Tovey

BHP Western Australian Iron Ore (WAIO) operations use a suite of slope monitoring systems which are deployed to operational areas based on the ground control risk. Slope Radars are one system used within WAIO, having recently deployed and integrated a network of 22 radar systems across the operations. The integration required the development of supporting network architecture, infrastructure, virtualised hosting, security protocols and a technology support model. This has enabled data transfer between the physical radar systems located in open pits, to on-site offices, a vendor supported remote control room in Indonesia and the WAIO Integrated Remote Operations Centre for data analysis and monitoring of system and displacement alarms 24/7. The typical technical skillset of a Geotechnical Engineer does not include the knowledge and capability to understand and develop the supporting IT infrastructure required for establishing an integrated radar monitoring network. This paper will provide a discussion of the technology considerations for integrating radar systems and highlight the importance of the developed partnerships between internal geotechnical and technology teams and the external vendor team to ensure a reliable, robust and scalable slope monitoring solution.

Nov 29, 2022

Australia as a leading producer of mineral sands has also occupied a leading position in many areas of research'in the processing and applications of these minerals. Research in upgrading ilmenite to produce synthetic rutile has resulted in the develop- ment of many processes, e.g,., Becher, Murso, Chlorine Technology, and ICI processes. Studies on the reducibility of ilmenites, aqueous leaching of reduced ilmenites, Fe-Ti-O system, leachability of natural and treated ilmenites in hydrochloric acid and selective chlorination of iron from ilmenites have been carried out in order to develop and improve the efficiency of the above processes. While research on the processing of zircon sand to produce high purity (99.99% ZrO2 zirconia powder and zirconium chemicals started only recently, research by CSIRO in the early 1970s led to the discovery of the phenomenon of transformation toughening in partially stabilized zirconia (PSZ) ceramics. Australia, with very significant resources of lanthanide-containing ores, pro- duces substantial quantities of monazite each year but research in processing and appli- cations of rare earths was neglected in recent years in this country. However, research to improve processes for the recovery of rare earths is now under way and studies on the production and testing of Nd-B-Fe magnets which are 1.5-2 times stronger than the strongest magnets (Sm-Co) currently available, have also commenced.' An overview of the research in the pro- cessing and applications of mineral sands during the last two decades in Australia and its implications for the industry are pre- sented in the paper.

Jan 1, 1986

By L Forrester

The tube bundle system is an integral part of an underground coalmine’s gas monitoring system. The maintenance of these systems is vital to ensure the quality of the data produced. Integrity testing of the tube bundle lines is required monthly, as specified in Standards Australia AS/NZ 2290.3 (1990). The various forms of integrity testing are reviewed, including pressure testing and introduction of a known gas. This paper provides a recommended and standardised methodology for those techniques where none currently exists. A strengths, weaknesses, opportunities, threats (SWOT) analysis is performed. The parameters considered for the SWOT analysis include resourcing required by the mines, time for the testing to be performed, and quality of the results produced. The suitability of such integrity testing protocols to be used in a mine emergency situation is also evaluated.CITATION:Forrester, L, 2017. Tube bundle integrity testing methodologies, in Proceedings Australian Mine Vent Conference 2017, pp 129–136 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 28, 2017

By E Donskoi

In order to develop downstream processing routines for iron ore and to understand the behaviour of the ore during such processing, extensive mineralogical characterisation is required. To determine mineral associations, mineral liberation and grain size distribution, imaging techniques have to be used. There are two main imaging techniques used for the characterisation of iron ore, ie, Optical Image Analysis (OIA) and Scanning Electron Microscopy (SEM). In this article a QEMSCANTM system is used as an example of SEM methodology and results obtained from it are compared against results obtained by the CSIRO ‘Recognition3/Mineral3’ OIA system.Both OIA and QEMSCANTM systems have advantages and drawbacks. Even though the latest QEMSCANTM systems can distinguish between major iron oxides and oxyhydroxides, it is still problematic for QEMSCANTM to distinguish between iron ore minerals very close in oxygen content, eg haematite and hydroheamatite, or between different types of vitreous goethite.QEMSCANTM also can misidentify minerals with close chemical composition, ie haematite as magnetite and vitreous goethite as haematite. In OIA, iron minerals with slight differences in their oxidation or hydration state are more easily and directly recognisable by correlation with their reflectivity. In both methods, the presence of microporosity can result in some misidentification, but in SEM methods misidentifi cations due to microporosity can be critical. Low resolution during QEMSCANTM analysis can significantly affect the textural classifi cation of particle sections.The main conclusion of this study is that, for low iron content ores or tailings, QEMSCANTM can provide much more detailed information on the gangue minerals than OIA. However, for routine characterisation of iron ores with high iron content and containing a variety of iron oxides and oxyhydroxides, OIA is a faster, more cost-effective and more reliable method of iron ore characterisation. A combined approach using both techniques will provide the most detailed understanding of iron ore samples being characterised.

Jul 11, 2011

By M McCarthy

Over the last six years Mandalay Resources has increased production rates and improved safety outcomes at its Costerfield mine in Victoria, Australia. This mine is an underground operation utilising narrow mining techniques to extract vertical veins, and produces up to 80 000 equivalent ounces of gold per annum, in both gold and antimony value.The operational challenges of narrow vein mining include controlling overbreak when veins being mined are only 300 mm wide. The mine has developed methods and modified equipment to suit extraction of these veins. Productivity improvements over the period have involved development of a stoping method and equipment to suit 1.8 m wide development drives. Over the last five years and during a skills shortage, recruitment, training and retention of personnel has been key to keeping corporate knowledge and skills to execute a careful efficient mining technique to minimise overbreak.Managing an underground operation close to nearby residents has unique challenges. Historically Victorian residents had family members work as underground miners; however, in the current day with few underground operations in this jurisdiction, community knowledge of mining has decreased. The Costerfield Operations are only 100 m from the nearest residence and the company values community engagement, partnership and investment with local Heathcote organisations.The mine has invested substantially in executive coaching of its leadership team early, which has paid dividends in problem solving potential of that team and ensuring the operation delivers on its promises to all stakeholders. The operation has become safer and employees are now more aware of their individual contribution in producing safe, efficient gold and antimony that benefit the whole operation, community and the region.CITATION:McCarthy, M, 2016. Costerfield – a narrow vein case study, in Proceedings International Mine Management Conference, pp 331-338 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By B Broad

"Establishing ventilation in the early stages of a new mine is an essential step to achieve scheduled outcomes that ultimately drive the financial success of an operation. If the primary ventilation is not in place in time to support a contractorÆs work output, then the ore delivery is likely to be severely impacted. Options to increase ventilation in order to address shortfalls are limited. This in turn can lead to reduced revenue generation at a time when a mine is at its highest capital outlay. This can have implications for any company, but even more for an explorer moving to producer. The ventilation put in place to cover the start-up period is also unlikely to cover any extended or increased load required to meet schedule delays.The following paper examines two issues in relation to ventilation with a focus on small to medium projects where the company is establishing a mine using a mining contractor. The issues being: potential impacts on the contract and tender process when using a mining contractor key mine design considerations, such as æcrunch timeÆ, as they interact with ventilation achieving a successful ramp up.A recommendation is made for higher levels of detail around secondary ventilation leading up to the primary fan installation. The information should be included as part of the tendering process and preliminary project execution planning. Understanding the æcrunch timeÆ concept can lead to strategies, as well as back up plans, to minimise any negative impact.By understanding key risks around primary ventilation establishment for a new mine, detailed design work can be completed where it is needed most. Value is added by reducing uncertainty and a payback with better contract terms and a more robust ramp up plan. This will improve the economic return for the company and reduce the risk.CITATION:Broad, B, 2013. Contract considerations and other critical ventilation aspects in achieving a new mine ramp up, in Proceedings The Australian Mine Ventilation Conference, pp 207-214 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jul 1, 2013

By C M. Zammit, N Cook, F Reith, C L. Ciobanu, J Brugger

The role of biological agents in the gold mining industry is currently limited to the use of microorganisms in bioleaching and bioremediation. However, there is a variety of possibilities in which biotechnology could aid the mining industry in the future. In this article we discuss the potential for the development of these novel biotechnologies and the role they can play in the exploration for new gold deposits, the processing of ores and the post-mining remediation of sites. The development of these biotechnologies has been enabled by rapid advances in our molecular-level understanding of the role microorganisms play in the solubilisation, dispersion and precipitation of gold. An understanding of the distribution of microbial species in soils overlying mineralisation can be utilised to develop bioindicator systems that assist with gold exploration. An in-depth knowledge of how microorganisms interact with gold complexes is being used to develop in-field biosensors, supporting exploration. Processing technologies may be improved based on advances in our understanding of the interactions between microorganisms, ore minerals, cyanide and gold. For instance, cyanide-producing microorganisms are being investigated for use in in situ leaching of gold. In turn, the use of cyanide-utilising microorganisms for the degradation of cyanide is being explored. Combined, the implementation of these biotechnologies in the gold mining sector may revolutionise the industry, leading to greener, more efficient exploration for and extraction of gold.CITATION:Zammit, C M, Cook, N, Ciobanu, C L, Brugger, J and Reith, F, 2013. Possible future applications of biotechnologies in the gold industry - a prospective approach, in Proceedings World Gold 2013 , pp 233-244 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 26, 2013

By M Scoble, C Hughes, M Roberts

At 14 per cent, the representation of women working in the mining industry is the lowest among primary industry categories in Canada. Despite an increase in research and industry commitment to advance and retain women in the mining industry, the gender gap in mining organisations persists.This paper is based upon a recent Canadian survey of 163 highly qualified women (HQW) working in the mining sector. For the purpose of this research, HQW were defined as women with a BachelorÆs degree or higher. This research sought to identify career progression and retention patterns of women who in theory have the educational qualifications to advance into positions of leadership in mining operations. We considered why womenÆs advancement in mining organisations has stalled; examined the career development pathways of HQW; and investigated the interactions of mining workplace culture on HQWÆs career development and retention within the Canadian mining industry. Results?indicated two distinct career pathway trends for HQW. æThe specialistÆ; a career characterised by multiple professional scientific and technical positions, and æthe corporateÆ; a career characterised by professional administrative roles and roles in mid-level management. It was found that neither æcorporatesÆ nor æspecialistsÆ systematically progressed into senior management and executive roles. These findings suggest that HQWÆs careers in mining are stalled, despite a strong indication by respondents of interest in their professional career advancement. With regards to?workplace?culture, respondents indicated that blatant forms of gender discrim-ination have been reduced in mining workplaces; however, exclusion from informal networks, implicit bias and subtler forms of workplace discrimination persist. Consistent with previous mining sector research, improving work-life balance, work flexibility and mentorship were found as key drivers for HQW to advance and remain in the industry.CITATION:Hughes, C, Scoble, M and Roberts, M, 2012. Where are the women? Highly qualified women in the mining industry, in Proceedings International Mine Management 2012, pp 23-34 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 20, 2012

By K Osten, N Scagliotta, G Lane

Oceana Gold (New Zealand) Limited operates the Macraes Gold Mine near Dunedin on the South Island of New Zealand. The orebody is mineralogically complex and comparatively low grade requiring a series of unit processes and resulting in a relatively complex plant. As part of Oceana GoldÆs ongoing Business Improvement program, a concerted effort has been made to focus on operational efficiency. One aspect of this has been the efficient use of energy in the gold recovery process. A benchmarking process has been developed for the Macraes operation that includes comparison with other operating mines and theoretical design. Criteria for determining operational efficiency have been developed. While benchmarking is, in theory, a simple process, this paper looks at putting benchmarking into practice by catering for variability in ore and associate processing methods. The unit processes discussed include the comminution circuit, flotation plant, pressure oxidation plant and gold recovery circuits.

Jan 1, 2004

"Recognising that the mining industry is wedded to the break-even cut-off grade rather than a cut-off grade that optimises value, the author examines some perils and pitfalls in the use of break-even grades that lead to what the author calls ‘negatively geared ore reserves’.Negatively geared ore reserves occur when a portion of the ore reserves actually has a negative value and is effectively being subsidised by the more profitable portion of the ore reserves. This situation is generally difficult to detect with the level of information available to the public investor. The ore reserves can still be quite profitable in total, but now possess a level of risk that may not be appreciated.The risk profile (financial risk) of a negatively geared ore reserve is far greater than for a non-negatively geared ore reserve. Like a negatively geared investment property in a falling property market (for readers familiar with the Australian tax minimisation investment strategy), when the price of a commodity falls, a company that possesses a negatively geared ore reserve loses value at a magnified rate relative to a company that has a neutral or positively geared ore reserve. In the extreme case of a major commodity price reduction, as happened with the gold price in mid-2013, the negatively geared ore reserve can easily become negative value in total, not just in part.The negatively geared ore reserve is sometimes intentional – for instance in order to increase published ore reserve tonnages and meet the CEO’s key performance indicators – but is also often unintentional, resulting from various errors in the break-even calculation. Common errors in calculating a break-even grade include using fixed metallurgical recoveries, not including allowances for ideal laboratory versus real plant results, ignoring available operational data and using modal rather than mean parameter values in cost and performance calculations.This paper examines a common value distribution profile in many ore reserves and the effect of common break-even grade errors on this profile.CITATION:Poniewierski, J, 2016. Negatively geared ore reserves – a major peril of the break-even cut-off grade, in Proceedings Project Evaluation 2016, pp 236–247 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016