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By S Shafiee, N Abbate

The evaluation of mining projects requires a methodology that will give flexibility and manage the existing uncertainty within the projects. The discount cash flow (DCF) and other traditional evaluation approaches, which are widely used in evaluating a significant number of mining projects, have simply assumed that the main variables remain constant in their evaluation; elements such as discounted rate, mine life, operating cost and production rate. The DCF ignores managementÆs flexibility to adapt and reforecast and revise decisions. Real options valuation (ROV) is one of the modern evaluation methodologies that provide a tool to adapt and revise mining projects under uncertainty and future variables movements. ROV brings more variables into the evaluation model compared to DCF and assumes them as uncertain and dependent. Finally, ROV provides a range of solutions that can assist in managing this flexibility.This paper endeavours to compare ROV and DCF for mining projects comprehensively and applies these two techniques in the model. The paper shows that ROV will be inclusive of extra value in mining projects due to variables not allowed for, or even ignored, when the DCF model alone is used. One of the significant advantages of the ROV method is being able to evaluate mining projects under different scenarios from the inception of the projects. Furthermore, ROV gives the ability to evaluate the mining project while allowing for abandonment, temporary suspension, or expanding the mining project. In other words, the ROV evaluation process creates an analytical environment, which allows for optimisation of the mining plan within the mining project, as well as the ability to change the capital structure dependant on existing circumstances over the life of the project. The ROV is a new evaluation method that can add value in mining project analysis and offers opportunities to amplify gains, or to mitigate losses. This paper also discusses some of the reluctance to use ROV instead of DCF in current project evaluation.CITATION:Shafiee, S and Abbate, N, 2012. Now, this is the time for mining companies to choose - Real option valuation or discount cash flow, in Proceedings Project Evaluation 2012 , pp 225-234 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

Based upon specialised experience of rope mechanics spanning over 20 years, this paper reviews the processes of degradation and fatigue that are relevant to hoisting ropes in mines. The review is brought up to date with an account of the most recent work in this field, which identifies a torsional fatigue process and quantifies the impact of degradation upon the residual service life. A proper understanding of these processes is important in determining how different parameters of hoist design and operation interact to determine rope life. This knowledge is also important in informing decisions relating to rope discard based upon observed condition, as well is identifying the critical features that must be quantified reliably during inspection.

Jan 1, 2005

In high stress mining environments, production drill rigs are often employed for rapid drilling of boreholes for systematic cable bolting. One outcome of this drilling method is the need for larger boreholes than would normally be drilled using customised bolting machines, such as the Tamrock Cabolter. Past laboratory studies indicate that, under ideal grouting conditions, borehole diameter has little effect on the pull-out strength of cable bolts with high bulb densities. However, the sensitivity of pull-out strength to large boreholes and less ideal variations of grout strength have not been investigated. To explore these sensitivities, industry standard single embedment tests were conducted on large boreholes simulated using steel pipes. Four borehole diameters were tested, namely: 42 mm, 52 mm, 81 mm and 106 mm. In each case the grout water to cement ratio was varied from 0.35 to 0.45 and two cable bolt bulb spacings were considered, namely: one and three bulbs per metre. The results indicate that, across the range of parameters tested, variations in peak axial load at failure corresponding to changes in hole diameter were statistically insignificant.

Nov 25, 2010

The provision of professional engineering services in Queensland is regulated through the Professional Engineers Act 2002. The Act requires that anyone providing professional engineering services must be registered and is subject to continuing professional development requirements. The engineering profession is actively requesting the Queensland Government to expand registration to include associate and technologist engineering practitioners. In view of the strong moves at the Federal level towards national registration of professional groups the lessons of the Queensland experience are very relevant across Australia. This paper describes the rationale behind the Act and outlines its operation. It discusses some misconceptions regarding the applicability of the Act to various engineering activities. There is much that the Act has to offer individual engineers and industry generally in establishing, articulating and maintaining standards for professional engineering work. The paper considers legal actions taken to date under the provisions of the Act and discusses the way in which this parallels industry moves towards quality assurance of work force capability.

May 1, 2010

By J R. Manuel, J M. F Clout

The importance of goethite to Australian iron ore production is steadily increasing as the proportion of goethite-rich, martite-goethite bedded and channel iron deposits increases at the expense of declining production from high-grade microplaty hematite deposits. For this reason, an improved understanding of goethite in iron deposits, its genesis, goethite types and their physical and metallurgical properties is vital to maintaining optimum sintering and blast furnace performance in Asian steel mills.The terminology used to describe goethite in Australian iron deposits is currently highly variable. The discredited mineral name ‘limonite’ is still in widespread use as a field term for goethite and there are many misconceptions concerning goethite chemical grade and downstream physical and metallurgical properties. The goethite classification proposed here is based on geological and physical properties from which three types are recognised including brown goethite, dark brown-black vitreous goethite and highly microporous, friable yellow ochreous goethite.In practice, typical vitreous goethite with highly reflective surfaces and conchoidal fracturing, characteristic of the hard cap zone appears from X-ray fluorescence (XRF) and electron microprobe analysis to be significantly higher in Si (up to 18.7 wt per cent), Al (up to 3.5 wt per cent) and S (up to 0.14 wt per cent) compared to the generally very low (<1 wt per cent for Si and Al) levels of these elements in ochreous goethite and brown goethite. The data dispels the common misconception that friable earthy or yellow ochreous goethite is high in Al and Si and other chemical impurities. However, P was found to be consistently higher (mean of 0.112 wt per cent and up to 0.296 wt per cent) in ochreous goethite than brown goethite (mean of 0.011 wt per cent) or vitreous goethite (mean of 0.031 wt per cent). The highly porous microstructure of ochreous goethite is thought to have a much higher surface area, which may aid in preferential adsorption of P onto the ochreous goethite mineral surface.CITATION:Manuel, J R and Clout, J M F, 2017. Goethite classification, distribution and properties with reference to Australian iron deposits, in Proceedings Iron Ore 2017, pp 567–574 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 24, 2017

By M P. Sandy, R M. Stephenson

Portals to access underground mines are important infrastructure and their design requires careful consideration. Portals are generally expected to last for the life of the mine. Typically, the exposure of personnel and equipment is high, with many hundreds of movements through the portal per day. Consequently, the risk associated with geotechnical instability must be extremely low. Portals are often established from a boxcut. In areas where the weathering profile is well developed, the design and execution of the boxcut can involve significant effort, with the objective of minimizing the volume of the boxcut, whilst ensuring that conditions at the design depth are suitable for establishing a stable portal. Properly designed site investigations are a critical part of this process. Currently available portal design guidelines have not been updated for decades, however the equipment and ground support systems have changed significantly in recent years. Many mine portals have since been constructed in a relatively short time frame with success, often in challenging ground conditions using some of the more modern approaches to ground support. This is beneficial because delays in establishing a portal will generally delay other critical path activities, and lead to cost overruns.

Mar 15, 2021

By Sengstock G. W, Spathis A. T

Benchmarks of mine equipment involved in the excavation process of coal mines would suggest that such equipment is not always operating at an optimum level. Dragline operations and truck/shovel operations rely on efficient use of their plant in order to maintain high mine throughput. The first process which affects the material to be excavated is the drilling and blasting process. Drilling and blasting delivers a fragmented material with a given disposition ready for excavation by mine equipment. As mine operators demand more productivity from their major excavating equipment, many sites are considering the use of productivity monitors to measure their outputs. Some of these productivity improvements will be directly related to the drilling and blasting process, so that as the monitoring systems improve, the opportunities to evaluate all drilling and blasting variables will also improve. This paper reviews current and newer methods for monitoring equipment productivity in mines. These include simple time and motion studies obtained by either manual timing of processes or by automated data collection equipment being adopted by the industry. Case studies for truck/shovel operations are discussed and the productivity improvements are compared with typical industry standards. These improvements relate specifically to parts of the load, haul and dump cycle and the potential for significant improvements are identified. Particular opportunities for drilling and blasting improvements are also presented.

Jan 1, 1995

THE township of Costerfield is situated in the parish of Costerfield, county of Dalhousie, and lies 6 miles east of Heathcote and 30 miles south-east of Bendigo. It is separated from Heathcote by the Mt. Ida Range, which forms the western boundary of the Silurian formation. It is situated at the head-waters of Tin-pot Creek, a small southerly tributary of the Deegay Ponds Creek, which flows east to the Goulburn River.The field was discovered in 1860 by two prospectors, Coster and Field, who were guided there by a shepherd, M Nicol Coster and Field had already discovered an antimony lode about three miles nearer Heathcote, when M Nicol offered to guide them to the larger outcrop. The main Costerfield reef at that time projected above the surface, and was white through oxidation, though the bluey sulphide showed on fracture. No alluvial gold of any consequence was obtained at Costerfield, but a little was obtained, at Redcastle, 7 miles to the north, and in some of the gullies to the east.Following its discovery there came a period of prosperity to Costerfield, while the mining operations were confined to the oxidized zone. The early success of mining at Costerfield was due to the gold values, and it is probable that the oxidized zone was secondarily enriched. The earliest available record of values is a crushing of Coster and Co. on the Antimony reef (now known as the Costerfield reef), when 200 tons from a depth of 70 ft. averaged 4 oz. per ton in July, 1861. At this time a crushing mill had not yet been erected at Costerfield, and the ore was carted and treated at Redcastle. The massive antimony ore, consisting of mixed oxides and sulphides, was separated by hand-picking as "marketable ore," and the remainder crushed for gold. A higher average is recorded from South Costerfield in September, 1861, when a 15' cwt. parcel...

Jan 1, 1922

The problems of using comparatively simple x-ray diffraction equipment for quantitative analysis are examined. Internal standard and direct calibration procedures based upon the measurement of integrated diffraction energy (diffractometer peak area) have been developed for the determination of quartz in Broken Hill dusts. By these methods an accuracy of ± 10 per cent of the true value can be obtained and this can be improved to ±2 1/2 per cent by statistical methods if necessary.Rapid analysis for the components quartz, muscovite, rhodonite, galena, fluorite, sphalerite, calcite, and garnet has been developed by adaptation of direct calibration procedures and use of maximum diffraction energies (diffractometer peak height). Until more is know!) about the pathological effects of multi-component dusts of the Broken Hill type it seems undesirable to fix theIr allowable concentrations in terms of the quartz content.

Jan 1, 1968

Metana Minerals commenced life in 1970 and graduated to a mining company in 1981 with the opening of a small alluvial tin-tantalite mine at Wodgina (W.A.) The present board of directors assumed control of the company in 1978 and established the exploration and development philosophies that have guided the company's expansion to its present status as an emerging diversified miner. An ability and willingness to raise equity capital when required has been a feature of the company. Company activities include exploration for gold, diamonds, heavy mineral sands, polymetallic (base and precious metals) deposits, strategic minerals, rare earths, oil and gas in a geographical distribution covering the entire Australian mainland Metana owns and/or operates four gold mines (Reedy, Mt Magnet, Youanmi and Howley) and at the time of writing is developing a fifth gold mine - its first underground mine - at Rothsay. In contrast to many similar or larger sized companies, Metana undertakes most activities itself rather than through the use of consultants or contractors. In-house services include: analytical and metallurgical laboratories, plant engineering design and construction, drilling and mining (earthmoving) Metana Minerals has established an enviable reputation for technical excellence and this expertise has placed the company in a sound position to continue its growth pattern into the future. This growth will be achieved through a combination of low cost and successful exploration and acquisition of suitable mines either directly or through corporate activity.

Jan 1, 1989

Olympic Dam Operation is located in the Stuart Shelf Geological Province approximately 520 km north-north-west of Adelaide in South Australia. It is estimated to be one of the worldÆs top five copper orebodies by size and the biggest single occurrence of uranium. The deposit was discovered by Western Mining Corporation in 1975. Exploration was based on a conceptual model for the formation of sediment hosted copper deposits together with gravity and magnetic anomalies.The capital cost of the current expansion is estimated to be A$ 1.64 billion. The underground expansion includes a total of 36 km of lateral development, a railway haulage system delivering ore from a series of ore passes to a new crusher station and a significant increase in ventilation capacity and mine services.In the current underground expansion the mining method will essentially remain unchanged. The ore handling system will incorporate some recent advances in technology, improving efficiency and safety standards.Major infrastructure excavations are designed by a team of engineers attached to the Olympic Dam Expansion Project and a number of consulting groups. Once the expansion is fully completed it is expected to increase the current annual underground production level from 3.4 Mt to 9.0 Mt of ore by the year 2000. Mine design engineers working for the Olympic Dam Operation have recently completed a three year final design plan to achieve this target.Access to the existing mine is through the decline and Whenan shaft. The Whenan shaft was originally sunk as an exploration access and later upgraded for hoisting. The 4 km long service decline connecting to the Whenan shaft was later constructed to accommodate the increase in service demand. The Robinson and Sir Lindsay Clark shafts were developed at later stages to cater for the hoisting during and following the expansion lead up.

Jan 1, 1999

By Giles D, Wegmann D

The Mt Todd Gold Project is located 42 km northwest of the township of Katherine within the Northern Territory of Australia. It is situated in the southeastern portion of the Pine Creek Geosyncline. The Batman gold deposit, the largest of several deposits at Mt Todd, hosts an identified mineral resource of 92.9 million tonnes (Mt) grading 1.4 grams/tonne (g/t) as at 31 December 1993. Host rocks at Batman are assigned to the Early Proterozoic Burrell Creek Formation, comprising greywacke and siltstone interbedded with shale. Gold mineralisation is associated with a very broad zone of sheeted and stockwork quartz-sulphide veins that occupy a corridor of intense brittle fracture and faulting. A conceptual model of formation involves the dilation of joints and micro-faults within overlying sediments during sinistral movement along a basement shear zone. Synchronous granite intrusion generated convective circulation of crustal fluids through the sedimentary pile resulting in the formation of auriferous quartz veins within favourable structures. The Batman zone of mineralisation is not directly related to fold structures which typify several other major gold deposits within the Pine Creek Geosyncline.

Jan 1, 1994

By L B. Zhou, S Li, B L. Wang, S B. Li, Q Wang

The rapid development in ChinaÆs metal mine resources has caused a series of mine environment problems such as serious ecological damage and environment pollution, and secondary geological disasters. The paper has reviewed ChinaÆs metal mine development, including current status and environmental situation, analysed existing problems in mine development and environmental management, and proposed corresponding countermeasures and suggestions.CITATION:Wang, B L, Li, S B, Li, S, Zhou, L B and Wang, Q, 2012. Current situations, problems, countermeasures and suggestions for ChinaÆs metal mine development, in Proceedings Life-of-Mine 2012 , pp 353-356 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 10, 2012

By Magne L, Barria J, Castro O, Menacho J, Gonzalez GD

An extensive experimental campaign was developed in a continuous 6 x 2' (D x L) pilot scale SAG mill. The effect of the feed flow rate, feed solids concentration, ball filling fraction and feed size distribution, over the mill performance was investigated. The residence time distribution (RTD) for the fine material was measured in every test, in order to detect changes in the mixing characteristics of the mill under different operating conditions. Based on phenomenological considerations a state model of the SAG mill was developed, which independently incorporates mechanisms such as: grinding, mass transport and classification in the grate discharge. These can be parametrised using information and optimisation software. This comminution model extends the compensation condition, which is a conventional hypothesis for ball milling, to the semi-autogenous mill grinding. The mathematical analysis of this hypothesis, applied to SAG mills, allow the reduction of the number of parameters in the model, using the relationship Ki = (1-bii)Si, where b and S have the conventional meaning. Therefore, the distribution fracture matrix bij and the specific fracture rate SIE are grouped in just a single diagonal matrix Ki.

Jan 1, 1993

By N Weatherstone

A consistent and reliable international approach to public reporting of a mining companyÆs main assets, its Mineral Resources and Mineral Reserves, has become of increasing importance in recent years with the rapid globalisation of the mining industry. Through the efforts of the Committee for Mineral Reserves International Reporting Standards (CRIRSCO), a committee representing national resource/reserve reporting committees in Australia, South Africa, UK/Ireland/Western Europe, Canada, USA and Chile, the reporting standards in most æwesternÆ countries use almost identical resource and reserve definitions and are generally around 90 - 95 per cent compatible. New codes based on the CRIRSCO model are being developed or considered in other countries, including Peru and the Philippines. This unified approach has provided the mining industry, regulators and investors with a common framework to report and interpret mineral resource and reserve estimates, thereby facilitating funding to the mining industry through improved investor understanding and confidence. The common reporting standards are reflected in the CRIRSCO International Template, available on CRIRSCOÆs web site, a document that is kept æliveÆ by reflecting the best of the most recently published CRIRSCO-type national standards. In a significant exception to this unified industry approach, the USA Securities and Exchange Commission (SEC) requires adherence to its own standard, only partly compatible with CRIRSCO-type standards, with adverse and costly implications for companies listed in the USA. A major industry submission was presented to SEC in April 2005 which, if accepted, would bring about considerable compatibility of CRIRSCO and SEC standards. The UN Economic Commission for Europe (UN-ECE) has, since 1992, been developing its Framework Classification (UNFC) as a single global system for harmonising all existing national and international resource/reserve reporting systems, covering both government and industry requirements and both the hydrocarbon and solid minerals sectors. While few mining companies report their resources and reserves using the UNFC, the system is accepted or is being examined as a basis for reporting by some governments, including those of Russia, China and India. The UN-ECE agreed in 1999 to incorporate CRIRSCO definitions into the UNFC for those categories of resources and reserves used for market-related reporting, but a more recent edition of the UNFC removed or changed the definitions, requiring re-engagement by CRIRSCO to ensure compatibility. Since 2005, CRIRSCO and the Society of Petroleum Engineers (SPE) have been involved in discussions with the International Accounting Standards Board (IASB), which plans to develop a new Accounting Standard for the Extractive Industries as part of its International Financial Reporting Standards. At the request of the IASB, CRIRSCO and SPE have been examining any potential for convergence of resource/reserve definitions between the mining and hydrocarbon industries. Each of these systems is described in this paper and high level comparisons made.

Jan 1, 2006

By D Connelly

There is now a new generation of mobile crushing and screening plant systems available which have been developed based on the motivation of reducing truck haulage. Newly designed mobile crushing and screening plant systems have the advantages of mobility, flexibility, economy and reliable performance, making this system very appealing for small- to medium-sized projects or projects where a number of resources are separated by distance.A brief review of the past history and experience with transportable crushing plants provides an insight into some of the issues with transportable plants in mineral processing. A closer look at a simple model based on exploiting small but high-grade orebodies suggests the concept has merit, however there are many more engineering, logistics, legal, technical and management aspects which have limited the application of such a concept in the resource sector. This paper explores the concept in detail and endeavours to analyse the preferred commodities and scenarios under which the concept could be used and the economic and logistical limitations for iron ore. The paper also looks at the risk assessment criteria to be applied in selecting the type of resource projects where the model could be applied successfully. Other aspects considered in this paper are the project planning requirements, technical and economic feasibility, bankability and operability. Reference is made to the operating experience of contractors at a number of sites and feedback from the resource companies as managers of the projects.CITATION:Connelly, D, 2013. Mobile crushing and screening plant applications for small- to medium-sized iron ore projects, in Proceedings Iron Ore 20 13, pp 349-354 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 12, 2013

Avoca Resources LimitedÆs Higginsville Gold Project has a resource base of over 1 300 000 oz of gold. The Trident underground mine, which forms the basis of the project development, has a resource base of 927 000 oz of gold. Avoca is building the Higginsville Gold Project based on a minimum ten year vision, producing over 150 000 oz per annum. The project development has taken less than three years from the Trident discovery hole in October 2004 to the first ore production in June 2007. This paper discusses the background work associated with the development of the Trident underground mine in a difficult period for new project development in Western Australia. The resources boom, led by the iron ore industry in the Western Australian Pilbara region, is creating cost pressures and, combined with a lack of people and equipment, is placing cost and timing stress on a small developing project. Avoca Resources has developed a project execution management strategy aimed at mitigating cost blow outs and schedule delays.

Jan 1, 2008

By L Brodie-Hally

In the early-1990s, Tad Golosinski, the former the head of mining department at WASM participated in a review mining engineering courses in Australia. The review team asked various industry executives what subjects they thought graduates needed to be taught. Tad made the comment to me that the more senior executives thought that history and ethics were very important. The outcome was that the mining engineering courses were required to contain at least five per cent content dealing in ethics. The course was to be modified to reflect this. Tad thought at the time the students would think that subjects dealing in history and ethics came from retirees and professionals that were over the hill. So let me talk to you today about ethics.

Jan 1, 2002

By R West

The Olympic Dam smelter facility processes copper concentrate feed using direct-to-blister smelting technology to support the current site production rate of 225 000 t/a copper. The metallurgical control of the Olympic Dam smelter is largely managed from a single central control room. Control room operation and management is therefore a key function in ensuring safe and reliable operation of the smelter, including identifying and initiating control of abnormal events. As part of a consolidated smelter reliability improvement program, a team consisting of process and control system engineers was formed. The teamÆs charter was to address and resolve the alarm flooding issues being faced by the control room technicians and the lack of an up-to-date base of supporting functional documentation. The project was successfully resourced with WorleyParsons metallurgists, Citect PLC technicians and the on-site technical team. Implementation was conducted over a 12 month period with the goal of achieving best practice alarm levels. The goal was achieved through a systematic process of alarm design review that analysed every configured alarm versus best practice design standards. Innovative concepts such as group-based alarms, first-up interlock displays, graphic only alarming, alarm help and alarm shelving were developed and implemented in conjunction with improved alarm masking. Total configured alarms were reduced from 20 000 to 5000 while the alarm rates were reduced from in excess of 200 alarms per hour per controlling technician to best practice levels of less than 12 alarms per hour per controlling technician. Completion of this program has provided a firm foundation for implementing further control optimisation and was a key activity in supporting sustained smelter reliability levels.

Jan 1, 2005

The Louvicourt Mine is located 600 km north of Montreal in the province of Quebec, Canada. The owners are Aur Resources Inc (30 per cent), mine operator, Novicourt Inc (45 per cent) and Teck Corporation (25 per cent). It is an underground mechanised operation with a total work of 290 employees. Since 1994, the mine production is 11 120 456 tonnes at 3.60 per cent Cu, 1.51 per cent Zn, 26.07 g/mt Ag and 0.96 g/mt Au. At a rate of 4300 tonnes per day 365 days per year. Louvicourt Mine is a copper operation since 80 per cent of our revenue is from copper. The mining method is transverse blasthole stoping, mining primary and secondary stopes. The stope dimension is 15 m wide by 30 m high and 10 m to 80 m long for primary stopes. The secondary stopes are limited at 25 m long. Close to 100 000 metres of production drilling per year is required for 115 mm and 165 mm diameter holes. Backfilling is done with pastefill from the start of the operation in 1994. The binder ratio is 4.5 per cent in primary and two per cent in secondary stopes (80 per cent slag and 20 per cent cement). Development requirement to maintain production was 5000 m from 1996, 1997, 1998, 4200 in year 1999, 3200 m in year 2000 and an average of 2500 m in 2001 and 2002. Typical 6.0 m + 4.3 m, 4.9 m + 4.6 m and 4.5 m + 4.6 m headings. In addition more than 1500 metres of development will be excavated in/under paste backfill before 2004. A total of 60 mobile units are required among which for lateral development (three two boom electric hydraulic jumbos û AC Boomer 322, four electric hydraulic roofbolters û Maclean MEM-928 and AC Boltec PL350 and two anfo loader truck û Dux) and for production (four ITH drills û MTI, one electric hydraulic longhole drill û AC Simba H1357, eight LHD û AC-Wagner ST8-B, 1 LHD ST-1000 and two haulage 30 tons trucks û Dux. The 1 January 2002 reserves are 4.1 M tonnes grading 3.1 per cent Cu and 1.9 per cent Zn at an NSR (Net Smelter Revenue) of $US 53. The operating mining costs were at an average of $US 23 from 1996 to year 2000 and $US 25 in 2001. The operating costs ranged from a low of $US 0.41 per pound of copper in 1999 to a high of $US 0.49 per pound of copper in 1998.

Jan 1, 2002