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This paper describes preliminary research on the application of Markov Decision Processes (MDP) to Real Option Valuation (ROV) and the optimisation of mine scheduling. The MDP framework is a novel approach to option valuation and scheduling in mining operations. A learning agent is introduced into the valuation process of an open pit, where prices and block ore grades have probabilistic values. The prices are modelled using a mean reverting diffusion process and the block grades using sequential Gaussian simulation. The agent is asked to learn which production parameters should be used in order to maximise the overall value of the project. The introduction of the agent permits a real option approach to mine valuation, such that the value associated with the robustness of a design to uncertainty can be measured. A simulated example is used in which there are ten blocks to be extracted under conditions of grade and price uncertainty. Using policy iteration, an optimal policy is generated and the value of production options is found. The potential financial gains from applying MDPs to mine valuation and optimisation are substantial and warrant further investigation.

Jan 1, 2007

The Ok Tedi Project has been planned as a selective mining operation since the Feasibility Study. The nature of the orebody, and the need to 'stage' the infrastructure buildup meant that initially the mill would process gol ore using a leach-CIP process, followed by parallel leaching of gold ore and flotation of copper ore, and finally all flotation of copper ore. Cutoff grades were applied to gold and copper ore of 1.0-1.3 g/t Au and 0.4-0.3% Tot. Cu. Since startup, unpredicted occurrences of sulphide copper and, to a Lesser extent, carbonaceous material, has necessitated significant additional short term drilling (other than at grade boundaries), and shift grade control in the pit to control contaminant levels. Remodelling of the orebody based on the most up to date variography and geological interpretation has had a significant impact on the reserves, and thus the whole project development strategy; necessitating the earlier processing of copper ores, and preflotation of the gold ore.This paper discusses some of these points in detail, and in particular highlights how unforseen geological occurrences coupled with processing restrictions can have significant impacts on ore reserves and the mine development schedule.

Jan 1, 1986

By Peters S. G, Beams S. D

CONCEPTS AND REGIONAL GEOLOGY The Charters Towers region holds many keys to the metallogeny associated with the complex geological development of eastern Australia during the Palaeozoic. Tectonic, magmatic and volcano-sedimentary depositional episodes can be identified and related to the chronological development of batholithic host rocks (Clarke & Paine, 1970; Henderson, 1986; Murray, 1986). Pre-batholithic basement rocks in the north (Charters Towers Metamorphics) consist of a package of amphibolite grade schists interlayered with and intruded by gabbros and diorites (Peters, 1987). To the south (Seventy Mile Range Group) greenschist facies Cambro-Ordovician rocks overly some of the basement. The lower age of this basement is not constrained, parts of it could be as old as Pre-Cambrian. Mid-Ordovician (approx. 470 my) to Lower Devonian (approx. 400 my) age I-Type granitoid plutons of the composite Ravenswood batholith intrude the pre-batholith basement and the Seventy Mile Range Group. Igneous activity was initiated again in the Carboniferous with the extrusion of rhyolitic lavas and pyroclastics associated with porphyry and high-level intrusive complexes (Wyatt et al., 1971). The Ravenswood block is bounded by Devonian and Tertiary sedimentary sequences of mainly continental provenence.

Jan 1, 1989

By Pollard D. M

Chalcopyrite samples from two different localities were leached in oxygenated mixed chloride-sulphate lixivants at elevated temperatures and atmospheric pressure. The oxidation of chalcopyrite was found to follow predominantly linear kinetics. The slope of the major region was dependent on stirring rate, oxygen flowrate and chloride concentration while only slightly dependent on the surface area of the sample leached. This region was found to predominate only at low temperatures. The oxidised chalcopyrite releases cuprous and ferric ions into solutions. Chloride ions complex these dissolved ions to effectively move the equilibrium of the leaching reaction to the right. When the level of chloride in solution was below 6 g/l, the unstable cuprous ions were found to reprecipitate with sulphur as covellite. When no chloride was present and the lixivant was a solution of sulphuric acid then ferric sulphates precipitated. The overall leaching reaction occurring in the leaching system is: CuFeS2 + 5H+ + 1.25 02 = Cu 2+ + Fe 3+ + 2S¦ + 2.5H20

Jan 1, 1987

By Hammond J. R, Ward T. A

The Tom Price orebody, in the Hamersley Ranges of North West of Western Australia, is mined by Hamersley Iron Pty. Limited. The orebody is a folded sequence of hematite and shale bands capped with goethite, with a con- sequential variable iron content. The overall grade is below that required to yield spec- ification product, necessitating selective mining, 'Zone Plans' based on geological structure have been developed to yield forward information on material types and grades. Short and medium term mine plans - the initial stage of quality control - are based upon these 'zone plans'. Blasts are laid out to break to the grade boundaries, thus minimising dilution, and the samples taken from the blasthole cuttings provide blast grades. Blending of shovel out- put from different blasts forms the operational basis of grade control. Shales, being more friable than hematite, produce fines that are lower in iron grade than lump. Quality control in the mine centres around maintaining the target fines grade, compensation being applied in the mine if the fines grade lies outside the target range.

Jan 1, 1973

By Keele R. A

The Cambrian structure in the Mt Read Volcanics was produced by four deformational events: obduction of forearc-derived mafic/ultramalic complexes in the early Middle Cambrian, a middle Middle Cambrian extensional phase related to the post-collisional Mt Read volcanism and VHMS mineralisation, Middle Cambrian E-W folding, and Late Cambrian N-S folding and basin inversion. The major phase of VHMS mineralisation in western Tasmania is restricted to the very brief period of extensional tectonics within the middle Middle Cambrian. Within this period a N-S graben was produced with a complex series of transfer zones, largely striking E-W. Most VHMS mineralisation is restricted to the top of massive volcanic successions, with several mines close to Cambrian transfer structures. Many of the transfer structures continued to be active until the Devonian. The later compressional Cambrian events are not significant in localising orc formation. Within the Rosebery mine a complex pattern of minor Cambrian normal faults has a second order control on the distribution of the mineralisation.

Jan 1, 1997

Synthetic seismograms of reflectivity method and some field records available are studied to detect the amplitude anomalies at the interface of the gaothermal reservoir the gas and/or oil boundary, and the underground tunnel. The first arrival of PO wave on the P-SV record are weak and emergent while those of P wave only rotated with respect to an incident angle are clear. This can, be explained by means of the energy loss of P-SV wave conversion. The primary reflections of P waves about depth fade away as compared to SH waves which do not perform any conversion, although they hold high attenuation in the fully saturated fluid layers. Reflection of comparable strength is present at the P-wave and S-wave... boundaries, but gas-saturated zones correlating with P wave bright spots do not show equivalent attenuation anomalies. Thus the comparative technique of P-SV wave and SI i wave records is very useful to indicate the strong amplitude anomalies at the boundaries of sealing targets.

Jan 1, 1990

In this paper the system of an operative expert estimation of innovative policy of mining enterprise technological development on sustainable development principles, created in the laboratory of economic analysis, planning and management of Mining Institute after D A Kunayev is represented. It is based on application of technology of satellite navigation and global positioning system (GPS). It allows to estimate the geotechnological complex functioning efficiency in the automated mode and on the basis of the obtained results to develop a complex of management measures on the competitiveness increase, realised by means of the automated corporative management system of geotechnological complex. The estimation of complex competitiveness is carried out on such basic aspects, as: technical, technological, organisational, ecological and economic as all of it give certain expenses and influence on complex overall performance. The major difference of the given approach is its realisation within the limits of the automated corporative management system of geotechnological complexes. It is based the fact that data of monitoring of complex's work will provide a sustainable development of geotechnological complex of mining enterprise.

Dec 6, 2010

By Chavant G, Begis D, Gunther J

To study the ventilation of a mine (improve on the existing situation, examine extension projects) the calculation program used must take into account all the resistance values in the branches of the network. These resistance values are generally determined by measurements, which are accurate to a greater or lesser extent. In order to arrive by calculation at the flowrates measured :n the mine at a given moment, the resistance values have tto be adjusted experimentally. This manual operation is lengthy and delicate.

Jan 1, 1988

By R Linares

The efficient operation of any modern metallurgical facility depends on the accurate measurement and estimation of flow rates, inventories, and composition of their intermediate and final products. All of this information is subject to both statistical errors and gross errors, which can lead to poor estimation of efficiency, yields and specific energy consumption. The detection and the elimination of these errors require not only plant data, but also product transactions and the operational events. Once the gross errors have been eliminated, it is possible to estimate validated performance indicators, such as grade recovery or yields. This paper describes the methodology to implement a unification and gross error detection system using the available infrastructure of both information and data reconciliation system. It covers the different infrastructure layers, from the data collection layer to the data validation and reconciliation layer. In addition, the impact of these methodologies on the decision-making process is presented.

Jan 1, 2005

The Engineering Chemistry Division of the Government Chemical Laboratories of WA initiated an ongoing investigation into the possible utilisation of diatomites of this State. The work has shown that local diatomites can be beneficiated by hydro or pneumatic cyc- lone separator circuitry and that the better quality head materials can be upgraded by straight and flux calcination and associated processing to the equivalent of premium grade imported products. Western Australian diatomites vary con- siderably in quality, and the degree to which they can be upgraded and the yield of useful product are influenced by the proportion of impurities and the size, type, and degree of fragmentation of contained diatoms. Conseq- uently careful assessment of ore deposits will be necessary in order to relate ore reserves to planned production. The viability of commercial production from Western Australian resources would hinge on the establishment of markets - largely ex- port - capable of supporting a production level of the order of 30,000 tonnes per annum.

Jan 1, 1979

By Barnett DW

Financial risk analysis provides the tools to examine the uncertainty of capital decisions in new mining ventures. This paper explores the methodology by which financial risks can be studied and quantified. The most commonly used risk evaluation methods, such as sensitivity analysis and discount rate adjustment, are presented as an introduction to a more comprehensive discussion of stochastic methods of discounted cash flow analysis using Monte Carlo sampling. The discussion is illustrated with examples of a stochastic discounted cash flow. The advantages of Monte Carlo sampling in risk analysis are discussed together with its problems, particularly those originating from the correlation amongst the variables that determine the economic output of a mining venture, and the difficulties created by insufficient data, imperfect knowledge and complexity. The paper also surveys the most commonly used software used in risk analysis.

Jan 1, 1994

Efforts to stabilize international markets in commodities have gradually intensified during the course of this century in keeping with the grow- ing complexity and interdependence of the world economy and the increasing involvement of government in economic activity. Successive Australian Governments have con- sistently supported the concept of commodity agreements and arrangements in an effort to lessen short term fluctuations in price and to moderate the boom/bust conditions which tend to charac- terize production and trade in many commodities. The objective is to stabilize price at a level which equates supply and demand over the life of the arrangement. Such action involves a degree of market inter- vention and government involvement in the inter- national trade in the commodity concerned; the acceptability and desire to foster such arrange- ments varies from country to country depending upon attitudes to market intervention and man- agement. However attitudes, even among those opposing commodity agreements, have under- gone a major reversal in this century. Before the first world war, such intervention as existed almost entirely involved the physical producers. There was almost no government involvement and at that level most regarded commodity agree- ments as neither desirable nor practical. However government regulation of such activities as pro- duction and marketing of food during World War I, coupled with post-war shortages, followed by overproduction and the crash in prices during the Great Depression, stimulated producer gov- ernment interest in commodity market regulation. Consumer governments took a little longer and with a few exceptions, it was not until the post World War II period, that the fear of shortages of basic commodities brought some consumer countries to accept the concept.

Jan 1, 1978

The safety in pillar extraction is closely allied to the design features of the pillar extraction system. Considering the conventional supported systems of pillar extraction there are problems associated with complying with the design system outlined. The accident causing agencies and the legislative action to overcome them are im- portant aspects. There is merit in the regularity of support and the limiting of the effects that human error can cause. But new problems and hazards are introduced by this powered support equipment. The comparison of accident experience is difficult due to lack of records and lack of uniformity of approach, but it is clear that powered supports provide a safer system. Every progress in research and practice provides further data to employ in accident prevention.

Jan 1, 1974

By Spencer GA, Saul SJ

The flight line spacing in low level aeromagnetic surveys is the principal factor governing both the cost and the amount of geological detail which can be extracted from the data. The rate at which geological resolution diminishes with wider line spacing is illustrated by progressive subsampling of a 200 m spaced data set from the Charters Towers region in Queensland.The usefulness of high frequency type filters in enhancing shallow structural features is seen to be limited to the 200 m data.It is concluded that each data set is suited to a particular scale and style of geological investigation with only the 200 m data having sufficient detail to identify the subtle structural patterns which are crucial to mineral exploration.

Jan 1, 1976

As Pliny commented two millennia ago, The only certainty is that nothing is certain. Despite the many breakthroughs, advances and promises, the way we each live and work remains awash with technological, economic and political uncertainty. The resources sector is no exception in this regard. Mining itself is much more than a complicated process or recipe; it is a complex adaptive system. The way we adopt and adapt new technologies, the way we evolve data into corporate wisdom, the way we make decisions and even the way we view our concept of rationality should each be the subject of intense review. Translating these sentiments into sustainable company growth is indeed the challenge. This is unlikely to be achieved within convention, but through innovation. The game is changing!

May 1, 2010

Following a summary of aerodynamic principles and the changes imposed by the process, areas important to the operator are then enumerated. These include furnace lines, cooling and casting technology, coke properties, gas distribution and others. Questions are raised on the implication of lowering the hearth substantially below the tuyeres and about the status of stack injection. Finally, the future developments are identified as being those associated with gas volumes required to pass through the furnace stack per unit time or per tonne of product.

Jan 1, 1975

By D Ziaja, W Jaspers

A brief history of the development of pneumatic flotation cells from early in the 20th century to the present day and a comparison to conventional cells demonstrates the efficiency and simplicity of design and operation of the ænew generationÆ of pneumatic cells. Recent successful testwork on phosphate minerals in the USA and a variety of coal types in Australia confirm the utility and efficiency of the design. The key aspects of this technology are improved recovery and selectivity with lower capital expenditure and operating costs.

Jan 1, 2005

The kinetics of desorption of nitrogen from molten iron were investigated using the electromagnetic levitation technique. The respective influences of gas flow rate and surface active element (S) were examined. A second order behaviour with respect to the nitrogen concentration in the melt prevailed at all experimental conditions. Sulphur had a marked inhibiting effect on the desorption rate. The experimental results on the rates of nitrogen desorption have been interpreted with the aid of a reaction mechanism consisting of a sequence of elementary steps.

Jan 1, 1991

By Zhou A, Cadogan J. M

Direct reduction of iron ore (DR) is one of the promising technology emerging in the world's steel industry. Kinetics and Mossbauer studies of DR with hydrogen have been carried out at two temperatures of 600¦C and 800¦C in this investigation. The results show that different controlling steps govern the reduction rate at different temperatures. The mechanism was also found to vary during the reduction. The Mossbauer spectra of the samples reduced in various time intervals were studied to determine the phase changes during reduction.

Jan 1, 1997