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By R Knight

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

Mar 8, 2016

By F N. Baez

This paper supplements a keynote address prepared for the MassMin 2016 conference on mass underground mining methods, including block, panel, inclined and sublevel caving. It advocates for a new cave mining paradigm that takes advantage of a number of new and disruptive technologies or innovations that have evolved over the last 15 years, some of which were initiated by major mining companies such as Codelco. The paper will address the challenges that the industry will be facing in the future as well as possible solutions. As background, the paper summarises the challenges that the industry has faced in the past and how such challenges were addressed. The author acknowledges that given his more than 30 years of experience with Codelco Chile (operations and corporate), aspects of his intelligent mining concept have no doubt been influenced and have matured during his invaluable time with Codelco also as the Head of Technology and Innovation. In the paper, he uses some of the innovations developed within Codelco and by the Chilean Government to illustrate the concept of ‘intelligent mining’.CITATION:Baez, F N, 2016. ‘Intelligent mining’ – the way of the future, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 3–8 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

During underground mining, rock mass changes can occur as a function of the mining sequence and excavation processes. Mining-induced rock mass damage can occur due to redistribution of static stresses and the application of dynamic stresses from blasting and seismic activity. These rock mass changes can result in a degradation of strength of the bulk rock mass and the remaining rock surrounding existing excavations. Rock mass damage near existing excavations which lead to excavation-scale instabilities such as rock fall, excavation closure, or visible rock mass fracturing can detrimentally affect the safety and profitability of mining operations.The focus of the current work was the prediction and assessment of damage to mine infrastructure occurring in relation to the blasting of a sublevel open stope. The study case involved a 60kt stope located in a highly-competent rock mass at a large Australian sublevel open stoping mine. The mine infrastructure of interest for investigation included local stope access development, critical access and haulage development crossing a regional-scale fault, an explosives storage magazine and a ventilation return air raise. The methods used to predict or assess the blast-induced damage to each infrastructure element in response to stope extraction were:- intact rock strength testing,- discontinuity mapping,- linear-elastic static stress modelling,- blast-damage mapping,- near-field blast vibration monitoring and analysis,- geophysical assessment using inferred stiffness and wave velocity methods, and- post-extraction void assessment.The results of the detailed blast damage prediction and assessment program at the mine site have been discussed by the primary author elsewhere (Fleetwood, 2010). The current work will address blast-induced damage to mine infrastructure as a result of extraneous blasting vibrations from stope production blasting. A method for predicting the amplification of excavation surface motions from reflecting body waves will be discussed as well as the results of damage mapping around the study stope. The results of the damage mapping program identified blast-induced damage that occurred to the surface of the explosives storage magazine and local stope access development. No damage was observed at the main fault crossing or return air raise where higher vibration amplitudes were measured or predicted.

Dec 6, 2010

Water rights and availability are extremely contentious issues in many mining regions around the world, in some instances leading to violent confrontation. This situation has the potential to only get worse because competition for 'scarce' water resources will increase with population growth. In this environment the dilemma facing the mining industry is how to generate confidence in developing a responsible, sustainable and transparent water management strategy that is recognised as such by all stakeholders. Whilst the water needs of the mining industry are minor compared to those of agriculture, an operating mine requires a relatively large quantity of water on a daily basis to carry out operations. Another contentious aspects of new mine development is the debate between all stakeholders on the amount and quality of water that a mine is able to discharge into the environment should this be required. There are a multitude of water resources available to the mining industry for operational needs however much of this water is saline and over the last two decades there has been a continual decline in water quality (ie salinity has increased). In today's world there are enormous internal and external pressures to reduce water consumption at a mine and/or alternatively use water not considered a resource by the local community (ie sewage, saline or salt water, desalinated water). Strategies to meet these objectives can be achieved by implementing good water management practices, by recycling process water, reducing water losses by evaporation and seepage (ie by increasing and improving dewatering practices) and employing new technologies such as dry stacking and dry processing. Recycled water, acid mine drainage water and water collected in the mining area have the potential to impact mineral processing performance, unless they are treated, because of the build up of mineral salts and decomposed chemical products in these types of waters. Besides this the regulatory requirements of any water discharged from a mine site (quantity and quality) have also become more stringent. For these reasons there is now some form of water treatment practiced at most mining operations around the world. This paper provides an overview of water stewardship undertaken in the mining industry over the last two decades and provides examples of water treatment practices that have recently been installed at mining operations that may be of interest to the reader.

Sep 13, 2010

This paper provides a financial perspective to the valuation of Australian resource companies and projects. Valuation exercises need, however, to be seen in the broader context of a thorough business appraisal, one that incorporates all disciplines employed in the resources industry. Fine tuning a discount rate or determining a particular capital structure is likely to be less important to valuation than an adequate understanding of industry dynamics and a company's likely performance in future years.

Jan 1, 1989

By C Taylor, E Retz

Sequential Gaussian conditional simulation of wide-spaced exploration data has been completed in order to optimise a drilling grid at Fortescue’s Eliwana deposit. The aim of this drill grid is to improve the confidence in the Inferred Mineral Resource. A mineralised domain within the Joffre Member of the Brockman Iron Formation was selected to be tested as it makes up a large proportion of the Inferred Mineral Resource and is drilled at a reasonable spacing.One hundred realisations of Fe, SiO2 and Al2O3 grades were completed in the domain. Three realisations were selected for each analyte to represent the range of equiprobable values and a further realisation was selected to represent the truth data set. These realisations were used to flag theoretical drill holes on varying spacings and patterns. The theoretical drill holes were used to estimate into block models using ordinary kriging.These estimates were analysed and the accuracy and precision of each drill spacing was assessed. It was concluded that the greatest improvement in estimation results was noted at either a 100 m × 50 m or 50 m × 50 m spacing.CITATION:Taylor, C and Retz, E, 2015. How much do we need to drill?, in Proceedings Iron Ore 2015, pp 491–500 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

Many sampling standards arrive at a value for the prescribed sample mass by assuming a specific relation between the sample mass and the relative standard deviation of the fundamental error and assigning a value to the tolerated coefficient of variation. In order to obtain an equation that provides a relation between the minimum sample mass and the particle properties, many different models for the drawing of a sample have been developed. Here, a model for the drawing of a sample is proposed which can be considered to be a generalisation of the model used in GyÆs sampling theory. Using simulations, it is illustrated that the generalised model can lead to a better correspondence with actual sampling processes.

Jan 1, 2005

Gold, silver and palladium may be separated from the other base metals and sulphur contained in copper sulphide precipitates derived from the Sherritt-Gordon nickel process using a process involving an oxidation roast, a reduction roast and a Cu(II)/acetonitrile leach. Sulphur is removed as SO, in an oxidation roast and the hot calcine is reduced with carbon, or with carbon plus cuprous chloride. The resulting product contains metallic copper which is readily dissolved with cupric ions in aqueous acetonitrile solution. Copper powder is recovered by thermal disproportionation. The residue contains the bulk of the iron and precious metals and may be treated by a number of methods, including direct cyanidation or melting with suitable fluxes. Melting the residue will produce a copper alloy containing the precious metals and remove the iron as a slag. The alloy can be recycled to the copper leaching stage or sent for toll refining depending on the precious metal content. Impurities from the leaching circuit are controlled by a bleed circuit which in one approach utilizes the SO, from the calciner to produce Chevreul's salt and separates copper from the soluble cobalt and nickel. Alternatively, the bleed may be directed back to the main refinery copper boil stage or oxydrolysis stage.

Jan 1, 1982

By Litvinenko V. I

Being a source of structural materials for many centuries, the modern image of the ferrous metallurgy is burdened with obsolete technologies with disregard towards new environmental protection requirements. The production cycle of metallurgical products have two clear-cut stages: I . production of liquid metal and casting into steel billets; and 2. processing of steel billets in solid state under high temperature to produce various shapes and profiles of metal products. Plastic deformation of metal at the second stage is least associated with environmental pollution and is presently being provided with more and more advanced equipment.

Jan 1, 1999

BHP Billiton Olympic Dam produces copper cathode, uranium oxide concentrate and refined gold and silver. The operation is comprised of an underground Mine and Processing Plant and is located 560 km north of Adelaide. Water for the operation is sourced from two wellfields located 120 and 200 km from the operation in the Great Artesian Basin (GAB) at a rate of approximately 36 ML/d. Regulatory drawdown limits were established to protect regional GAB springs and are monitored at compliance bores. Drawdown was predicted in the æOlympic Dam Environmental Impact StudyÆ (Kinhill, 1997); however, pumping at higher volumes may have the potential for increased drawdown resulting in a trend towards the compliance limits. In recent years increased usage of water in the Concentrator and Hydromet sections of the Processing Plant has caused excess process water reporting to the Tailings Retention System (TRS). This has resulted in excessive amounts of liquor ponding on the tailings cells with a potential impact being contamination due to seepage of liquor to groundwater. Effective management of water by the operation is necessary to both reduce GAB drawdown and reduce the amount of liquor on the tailings cells. A site working-group has been established to investigate and pursue opportunities to improve the water use efficiency of the operation. This paper will highlight the issue of water management at Olympic Dam and discuss the various options currently being investigated to improve management of this important resource.

Jan 1, 2006

By A R. Cruden, M S. Egglseder

The formation of banded iron formation (BIF)-hosted high-grade iron ore deposits in the Hamersley Province, Australia has been debated for decades. Although a structural control on their formation is widely accepted, only the roles of large-scale structures (ie faults and folds) formed by brittle and ductile deformation have been considered to date. However, the deformation of multilayered sequences in the Hamersley Province (ie the Mount Bruce Supergroup), with their contrasting rheological behaviours, creates challenges for understanding the complex structural framework at regional to deposit scales, including the significance for mineralisation and orebody location.Our approach to understanding these complex relationships is based on an established principle of structural geology, which is to extrapolate microscale structures to deposit-scale structures and vice versa, supported by state-of-the-art 3D modelling techniques. Complexly deformed hand samples associated with the Mount Tom Price iron ore deposit (Hamersley Province, operated by Rio Tinto Ltd) have been analysed and visualised with 3D explicit (Move™, Midland Valley Ltd) and implicit modelling software packages (Leapfrog™, AranzGeo Ltd) and supported by microstructural investigations (optical and X-ray microscopy) and fieldwork.Our study shows that the deformation of BIFs in the central Hamersley Province is controlled by microscale chemical processes (ie dissolution precipitation creep) due to rheological differences between iron oxide and chert layers, contrasting fluid flow properties and layer thickness variations. These processes account for the removal of vast amounts of silica, its transportation by diffusion in the presence of a fluid and reprecipitation at low-pressure sites. Consequently, this structural framework was used by different upgrading fluids to form iron orebodies.CITATION:Egglseder, M S and Cruden, A R, 2015. Evolution of a structural framework for high-grade iron ore deposits, in Proceedings Iron Ore 2015, pp 255–262 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

A Novel Diagnosis and Evaluation Procedure for Flotation Plants

Sep 13, 2010

By A Hekmat, R Castro, A Casali, R Gómez

Block caving is the most economic underground methods for excavating massive orebodies, due to the high productivity and low production costs. The success of block caving operations depends on the fragmentation and draw control as large blocks decrease the equipment efficiency, inhibit the material flow and may lead to expensive secondary blasting. Even though ore handling system design, as well as overall economic results, both critically rely on secondary fragmentation, this parameter continues to be one of the least understood issues in the caving operations.This research focuses on the experimental study of secondary fragmentation, considering the impact of vertical pressures and material flow. Experiments using a load-haul-dump extraction system were conducted under laboratory conditions to quantify the influence of pressure and particle size on secondary fragmentation. Results demonstrate that increasing the vertical pressure (simulating deeper conditions) leads to higher fragmentation (smaller particle size) and greater fines generation during draw. The experimental results were applied to calibrate the developed mathematical model based on kinetic matrix. The acceptable accordance between the comminution model results and the reality showed that this method is convenient in predicting the secondary fragmentation in block caving.CITATION:Castro, R, Gómez, R, Casali, A and Hekmat, A, 2016. Experimental and comminution model framework for secondary fragmentation prediction in block caving, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 175–182 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By J Mauk, J Rowland

The Karangahake epithermal Au-Ag mine consists of two main lodes, the Maria and the Welcome/Crown hosted in Miocene andesites. Mineralisation is strongly constrained to major structures and is genetically linked to dynamic tectonic processes. Two main periods of faulting are represented in the deposit: 1. NE striking right-lateral/normal oblique linked spatially and temporally with the mineralising system, and 2. ESE striking right-lateral/normal oblique post-mineral faulting that displaces the lodes. Paleostress analyses performed on a limited kinematic data set indicate NW-SE extension during the formation of the vein system. Veins and lodes strike NNNE and accordingly contain a strike-slip component. The kinematics of vein formation at Karangahake is broadly consistent with that of other deposits within a NNE-trending belt of deposits. Oblique shear on deflecting structures will create zones of compression and dilation. Dilatant zones created on steep structures create fluid pathways potentially focussing large volumes of fluid from deep parts of the system into dynamic structures.

Jan 1, 2003

By H Phillips, A Spaeth, B Belle

There are several well-known, extensively researched and tested methods of suppressing a coalmine methane and coal dust explosion. The choice of method used is dependent on the legislative requirements of each country, which in turn are influenced by mining conditions in that jurisdiction. For example, seam gas content and the dustiness of the coal will combine to create the hazard, while the physical and chemical properties of the seam might influence the possibility of ignition sources such as frictional ignitions. The mining method and layout will also influence the choice of preventative or proactive suppression devices. The decision as to which method is approved and adopted should be based on currently tested and available technology and the latest research outcomes, and should be subjected to a rigorous risk assessment, since a methane explosion propagating into a coal dust explosion cannot be countenanced.Every new technology must undergo stringent tests and these tests must be certified by accredited research facilities or laboratories. Upon approval, an explosion suppression system or the critical components of such a system should be tested in a more realistic environment. This environment can ideally be found in an operating underground mining section for evaluation purposes. Based on the insight gathered in such an environment, a realistic evaluation of the effectiveness of a potential system can be carried out. The explosion suppression system described in this paper has been tested on numerous occasions at accredited test facilities. The technology described in this paper has been used in various applications in underground coalmines and has been adapted to fulfil and exceed the requirements set out for methods currently in use. This paper describes the underground evaluation results of the latest technology in active suppression systems as used on continuous miners was adopted to perform as a roadway explosion barrier.CITATION:Spaeth, A, Belle, B and Phillips, H, 2017. Underground bulk sampling, uniform conditioning and conditional simulation – unrealistic expectations?, in Proceedings Australian Mine Vent Conference 2017, pp 197–202 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 28, 2017

By A Vakili, F Harvey, H Greaves

Mine seismicity is one of the most difficult geotechnical risks to manage in seismically active mines. There are currently some established empirical and statistical methods that provide quantitative measures for seismic hazard assessment in operating mines. However, these methods are mostly suitable for quantifying the current or historical seismic hazard and often cannot be directly used to forecast the future hazards. Numerical modelling is the only analytical tool that can capture the level of complexities required for a meaningful analysis of mine seismicity and therefore to facilitate a reliable forecast of future hazards. However, there is currently no widely accepted and established guideline and methodology for analysing and forecasting mine seismicity using numerical modelling. This paper first provides a background on previous published studies on this subject and then outlines the key aspects that can affect the reliability of the forecasting for mine seismicity. These aspects include a) processing of historical seismic data, b) selection of suitable numerical modelling approach, c) Post-processing and interpretation of the model outputs. A case study is then presented for the Gwalia Deeps Mine where a new framework was developed to forecast future mine seismicity. High-quality seismic data for a period of five years was used for back-analysis and comparisons with the numerical modelling outputs. After development of the method, the future seismicity was forecast for the next 12 months and the actual seismicity was monitored against the forecast during this period. Results of this study shows promising potential for the proposed framework to be applied more routinely and at other mine sites. However, more validations are required at Gwalia Deeps mine as the mine proceeds to deeper levels. In addition, the method needs more improvements and should be tested and validated at other mining operations before it can be established as a proven method. CITATION:Vakili, A, Harvey, F and Greaves, H, 2018. Forecasting mine seismicity – towards a more established methodology, in Proceedings The Fourth Australasian Ground Control in Mining Conference (AusRock), pp 207–222 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 30, 2018

By R Baumgartner

The Canahuire deposit is a recently discovered Au-Cu-Ag epithermal deposit in Southern Peru. A geometallurgy program is a key study element of the project Feasibility study. Metallurgical, mineralogical, and comminution studies have been completed over a suite of samples, spatially distributed among the various geological/ore domains. The early stage of Canahuire presents challenges as there is a lack of metallurgical information to guide geometallurgical sampling, in contrast with an established deposit at a more advanced stage of development or mining. Nevertheless, the available information will assist in the development of geometallurgical domains for Canahuire in order to ensure that future metallurgical, mineralogical, and comminution test work is representative of the deposit variability. This supplementary knowledge will be able to predict important metallurgical parameters which will be incorporated into a geometallurgical model to spatial predict material types, metallurgical recovery and through put. The information obtained will be a valuable addition to the future mine plan, influencing process design, engineering design, plant operation, operating and capital costs, and ultimately will reduce project development risk.

Sep 5, 2011

In general the iron ore industry has been slow to adopt the Whittle Pit optimising software in the evaluation of iron ore deposits. The reasons for this are two-fold:the iron ore industry has developed techniques, usually bespoke software residing in the corporate offices of the respective iron ore companies, to establish their final pit limits; and the fact that the Whittle software doesnÆt easily lend itself to estimating a sales product of constant quality without maximising grade (metal content). The Whittle software is based on the work done by Lerch and Grossman (in the early 1970s), which proposed that graph theory be used to establish an optimal surface that maximises the revenue from a deposit. The maximised surface created in the pit optimiser is translated into a proposed optimal final pit shape that can be used by the mine design engineers as a target outline to lay out the final practical pit. By treating a geological and ore resources model that was created for an iron ore deposit as a subset of the recoverable resources estimation (RRE) type of geological models, the evaluation of an iron ore deposit and establishing the final pit is greatly simplified in the Whittle 4-X optimiser. Instead of trying to optimise the iron content of the deposit, the emphasis swings to maximising the extraction of a finished and saleable iron ore product. This is achieved by treating the finished saleable iron ore as an element in the multi-element Whittle optimiser. The quality of the finished sales product is represented, and the material that cannot be used in the blended product is also shown. Proposals for enhancing the functionality in the Whittle 4-X optimiser to make the evaluation of iron (and coal) deposits easier includes the creation of a new reporting function that will allow the user to specify which field(s) can be used as the divisor(s) for the reporting of the element grades in the model.

Jan 1, 2007

By T O&apos, Beirne

The paper focuses on explosibility conditions in underground coal mines, the behaviour of explosions from initiating gas ignitions to violent dust explosions and the effectiveness and limits of operation of current designs of passive explosion barriers in suppressing the flame front. Areas of particular emphasis include: passive explosion barriers are not designed to protect personnel in the flame initiation zone and its immediate surroundings; passive dust and water barriers are generally considered ineffective against methane ignitions of the magnitude that can occur at the working face; dispersal of suppressant from passive barriers is adversely influenced by equipment, including conveyor belts, located in the barrier zone; current regulations in Australia do not specify the installation of barriers in all roadways leading to the face, so their use has a limited capacity to contain explosions; a manifest design limitation is that passive barriers are restricted to one operation and are therefore ineffective against repetitive fire gases explosions; and the practice of stone dusting in roadways inbye the barrier zone could conceivably adversely affect the operation of passive barriers. The paper discusses performance evaluations made in full scaleexplosion galleries and the use of alternatives to passive barriers,including the installation of active barriers under some circumstances.

Jan 1, 1997

Prediction of fragmentation by blasting is most commonly based on theassumption that a single distribution of pre-existing discontinuities is present within a blasted rock volume and that the underlying mechanism of failure is tensile failure. It is assumed that the tensile stress field created by a blast initiates and extends radial cracks around the blastholes. Interaction between radial cracks from different blastholes and the free surface creates rock fragments. In reality, fragmentation of the rock occurs due to two mechanisms.One is related to the compressive-shear failure of the rock (mainly rock matrix) close to the blastholes, while the second mechanism is the previously mentioned tensile failure of the rock mass. The secondmechanism of failure occurs in the form of extension of the larger cracks in the region beyond the crushed rock, and this type of fragmentation occurs after the crushing phase. In the case of hard rock or blasting where the extent of crushing is minimal, the currently used prediction methods give a reasonably good result. However, there are many blasting conditions where the amount of rock crushing is significant. In the case where fragmentation of the given rock volume occurs dueto two different mechanisms, modeling of the rock fragmentation with a single distribution function is not appropriate. To model the fragment size distribution generated by two different mechanisms, it is necessary to use a two-component fragment size distribution function and a scaling parameter that will determine the proportion of the fragmented volume created by each mechanism. The purpose of this paper is to present results of blast fragmentation modeling based on two mechanisms of failure. The two-component model (TCM) utilises experimentally determined parameters from small scale blasting and parameters of the Kuz-Ram model, for more accurate prediction of the complete rock fragment size distribution curve. The methodology is such that it is possible to predict complete fragment size distribution, including fines, of ROM product for a future mine, at the feasibility phase of mine design.

Jan 1, 1999