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

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

Aug 18, 2014

By Palmer DJ

Mercury is introduced into EZ's electroly tic zinc/sulphuric acid plant complex at Risdon, Tasmania, in zinc sulphide concentrate. Mercury is volatilised during the roasting operation and then distributed in the sulphuric acid plant effluents and product acid. Following an investigation of the factors determining the mercury distribution, a plan was formulated to-provide an environmentally accep- table degree of mercury containment at Risdon. This paper discusses details of the various control measures investigated and out- lines the reasons for selecting the particular procedures finally adopted for the Risdon plant.

Jan 1, 1980

This study examines the application of Landsat TM data to the identification of hydro- thermal alteration in the arid terrain of the El Salvador region of north Chile. Numerical reflectance values were extracted from the digital Landsat TM data for a variety of rock surfaces, including four parts of the El Salvador gossan, for each of six spectral bands. These reflectance values were analysed statistically in order to select the three spectral bands, combined as a colour composite image, that are most efficient in discriminating different varieties of alteration and for general geolog- ical interpretation. The most cost effective com- posite image for this area is a combination of bands 1,4 and 7 as the blue, green and red components respectively, with simple contrast enhancement. This image is superior to some much more expensive enhancement techniques and allows unambiguous identification of areas of hydrothermal alteration larger than about 50m. The display includes a practical guide to the use of Landsat TM imagery for volcanic gold Exploration.

Jan 1, 1987

By S Vearncombe

SpaDiSÖ is a revolutionary approach to the spatial analysis of point data using geometry to analyse geometry! SpaDiSÖ uses each and every spatial relationship and is not dependent on mathematical models. For n points there are n2 û n spatial relationships and, because of the square function, the method yields interpretable results for both small and large data sets. SpaDiSÖ is an alternative to variography for directional studies. At the regional scale, the analysis can assess distribution patterns of mineralisation and potential controlling structures. At the deposit scale, the characteristics of zones of mineralisation such as direction, spacing, high-grade ore direction and grade distribution can all be deduced.

Jan 1, 2000

By J Geronimo, P Kumar, Z Yussupova, M Yahyaei, M Powell

This work goes beyond the general perception of how the well-known mine to mill process can be applied, by applying deeper knowledge along the mining chain. Grade deportment and dilution are considered at the mining stage, and modelled with the new SMI blast movement simulator, linking with the block model data. Assessing the shift to a considerably more competent section of the orebody is quantified via substantial milling trials at standard and higher-intensity blasts. These were stockpiled for batch processing through the mill to ensure feed integrity. The trial work included operating the mill at widely different fillings to develop Grindcurve milling responses. Additionally, model informed process control is initiated via a mill prediction tool.It has been found that accounting for blast movement for the higher intensity blasts could generate additional value of around $1.5M per blast. With the high-intensity blast and changing mill control, the plant was easily able to exceed projected mill throughputs with the far more competent Pipeline ore. Strategies to shift the workload and debottleneck the milling circuit were proposed and proven during the milling trials, demonstrating an increase in throughput of 7 per cent despite running at a lower SAG mill speed, and potential of 16 per cent for increasing the SAG mill to standard operating speed. A number of process improvement opportunities have been identified to enhance current productivity and ensure long term capability to process the considerably more competent future ores. All of this is being linked in with the major digitisation program at the Barrick Cortez site, with an objective of linking all the data into a mine-wide process optimisation system, that can embed the processes by providing process-wide data access and production support via the future dynamic models linking ore body knowledge to productivity along the full process chain.CITATION:Powell, M, Yahyaei, M, Geronimo, J, Yussupova, Z and Kumar, P, 2018. The designed approach to mill liner optimisation – experience at Pustynnoye mine, Kazakhstan, in Proceedings 14th AusIMM Mill Operators' Conference 2018, pp 595–612 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 29, 2018

WaihiÆs Cornish Pumphouse is located on the edge of town in a dynamic and changeable area where history affects the future. As in any successful project, ingenuity and team work have been significant factors in the planning and implementation of the buildingÆs relocation.   Work around the Pumphouse site commenced circa 1900 with preparation to sink the No 5 shaft. Construction of the pumphouse and the steam driven C pump was completed by 1904 with hints of what was to come evident in 1905 as the No5 Shaft collar had sunk 350mm in four years. By 1907 surface cracking developed over the Milking Cow cave area and in 1913 200 mm was cut off the main pumping rod as the ground was sinking at a rate of 25 mm per year.   In 1913 ground around No 6 shaft had subsided 600 mm.It was also the end of an era as steam gave way to hydroelectricity and electric pumps replaced the C Pump. C Pump was maintained as a backup from 1913 to 1929 and then finally scrapped. 25 years of underground caving operations removed approximately 400 000 cubic metres of ore leaving a 7 ha collapse crater that eventually became known as the mine lake.   On the edge of town a tension zone over the Royal Lode began to develop 50 m diameter chimney collapses as large scale blocks relaxed into unfilled stopes in the old Martha underground mine. After the 1999 collapse part of the main street was closed and after the 2001 collapse Hazard Zones were declared, more streets closed and areas evacuated and retired from residential use.   By 1984 the Pumphouse has approximately one degree of tilt and in 2002 tilt on the Pumphouse accelerated briefly and then settled down. Tilt accelerated again late in 2004 and a scoping study was initiated to define protection options for the pumphouse. The Martha Mining Licence requires Newmont to 'Take whatever precautions are necessary to protect the old Cornish Pumphouse adjacent to No5 shaft' and viable solutions needed to found.   Any work on the Pumphouse comes standard with a wide range of stakeholders, governing agencies and legal framework to consider. Land Information New Zealand (LINZ) is owner and administrator of the pumphouse.

Jan 1, 2006

By R Wolff

One critical factor in open pit mining projects is the estimation of the recoverable reserves. The reason for this is that at the valuation stage there is a lack of information about future metal prices and production costs. Consequently, the estimation of the recoverable reserves needs to be done based on a fixed break-even cut-off grade (BECG), in which fixed expected metal prices and production costs are assumed throughout the operating life of the mine (OLM). In this paper, an alternative technique for estimating the recoverable reserves of an open pit mining project is presented and explained in detail. The main characteristic of this technique is that it estimates the recoverable reserves of the project using mining costs as reference: this is done due to the fact that mining costs are easier to model than metal prices. Another important characteristic of this technique is that it uses the uncertainty of the geology of the orebody, given by simulations of the deposit, to make final strategic decisions, such as the selection of the operating life of the mine and the optimal production rate, which minimise the risk of not achieving future production targets while maximising the upside potential of future rewards. As it will be shown, the final outcome of the proposed technique is the generation of a robust open pit design, that include cutbacks and ultimate pit limits, called the marginal open pit mine design (MOPMD). One characteristic of the MOPMD is that, at each production period, it will be characterised by their respective geological uncertainty, given as probability distributions of ore, waste and metal quantities, and by marginal economical project indicators, such as cut-off grades and metal prices, among others. The details follow in the paper.

Jan 1, 2006

We operate a 50 cubic metre per hour mobile alluvial tin mine on small scattered deposits in the Irvinebank area. Wash is loaded by a Cat. 950 front end loader into the bin of a screening section and screen undersize is pumped to a separate jig unit. Both units are rubber tyre mounted and are shifted once a month when the haul distance gets to about 150 metres. The shift takes about 8 hours.The screening section is sited close to the face with a ramp for dumping in and a one metre drop for the screen oversize which is removed by the loader.A reciprocating plate feeder with variable rate hydraulic drive, feeds wash onto a horizontal 1.2 metre x 2.2 metre two deck Kinergy screen. Minus 10 millimetre undersize is pumped by a Warman 6/4 sand pump with a 37 kW variable speed Reeves Motordrive to the jig unit.The jigs are placed 20 to 70 metres away so that tailings will run back into previously mined ground. Reject stone is used to impound the sand and mud, allowing the water to filter through and return to the feed water pump.An MTE trapezoidal module is used as a primary jig. Hutch product is pumped to an eight cell clean-up jig which we developed ourselves along MTE lines. It has a trapezoidal shape and sawtooth stroke provided by cams. Clean tin is taken from the first four spigots. These consist of clear plastic tubes fitted with taps so that there is no water loss except when the tin is drawn off. Fine concentrate from the last four spigots is put over a curvilinear table which sits on a steel base packed with earth.

Jan 1, 1986

The attachment of a spherical particle to a bubble is theoretically investigated under the condition of a mixed sorption coating of a collector. It is shown that the attachment is determined primarily by the hydrodynamic factor involving the displacement of liquid from the gap between a bubble and a particle. The dependence of the attachment on the state of the surface of particle (sorption coating) is due to a change in the boundary conditions on the interface with water both in the case of surfactant chemical sorption and in that of the physical adsorption of oil. It is demonstrated that at large distances the thinning of a interlayer is facilitated by a physically sorbed collector, while near the bubble this is done by a chemically sorbed one.

Jan 1, 1993

By M Wagner, H Assimi, F Neumann, C Garcia, B Koch

Run-of-Mine (ROM) stockpiles are the inventory of valuable materials extracted from the mine. Depending on the customer requests, a selective addition of ore from stockyards should be selected at the required tonnage. In the stockyard, stackers and reclaimers are the machines which load and unload ore, respectively. Currently, humans determine the reclaiming/stacking planning sequence in the stockyard by rules of thumb. However, this is a complex task subject to multiple operational constraints, such as where undesirable mineral properties should not exceed certain limits in a request. Human planning can lead to limited decision support and lower ability to consider the upcoming blends and requests. This kind of decision making can cause perturbations in the assumed profit and unexpected loss in practice. Therefore, an intelligent decision-maker and sequence planner would be highly valuable to automate stacking and reclaiming operations in practice. The benefits are reducing variability in decision-making and operation costs. This paper considers a stockyard with available mineral information in the stockpiles using load and dump locations from GPS data feeds. We present an optimisation problem to find a solution which results in reclaiming more ore in a shorter time. To solve the problem, we develop an automatic search strategy based on the greedy search algorithm independent of the type of machine used in reclaiming. The proposed method plans a sequence for stockyard recovery blend optimisation to meet multiple customer demands in a timeframe. Blend optimisation is subject to various constraints such as the elemental composition of the valuable materials and penalty elements. We present three case studies using EKA’s simulator, to fulfil two to four requests from four stockpiles. We compare the obtained results with a pilgrim step reclaiming heuristic and we show how our proposed search strategy outperforms the current strategy used in practice.

Nov 10, 2020

A company tax rate based on profitability return, or as more commonly expressed, a resource rent taxation scheme has been intro- duced at various stages in the past by both Australian state and commonwealth governments. At present a number of overseas countries are applying this form of legislation to the taxing of sections of their mining industries. Within this study, ways in which this type of tax has been used are examined. The form in which the tax can be applied varies. 1. It can be selectively or universally applied. 2. The base on which economic return is calculated can be selected in a number of ways. 3. It can start operating only when high profit levels exist, or alternatively be the basis of a total taxation scheme. The implication for the Australian mining industry of the introduction of different types of resource rent taxation schemes is assessed within the context of previously enacted systems.

Jan 1, 1978

Before exploration programmes or minerals developments are formulated, a mining company ought to assess how capital can be returned if the project is successful. A fact not well appreciated by the minerals community is that it is often difficult to get money out of many Pacific Rim countries due to special foreign exchange controls or restrictions on dividend or capital repatriation. On top of this risk are factors such as creeping expropriation through administrative, fiscal, or corruption pressures; environmental regulations; terrorists; and organised labour and political activists. Political risk is much more than just expropriation or nationalisation.Political risk factors can make or break a project in many PacRim countries and just the cost of delays and negotiations can insidiously affect project economics. This unpalatable thought, however, can be readily addressed by either legal structuring e.g. offshore proceeds accounts, offset/back-to-back currency hedges, or political risk insurance for the equity as well as any subsequent project development debt.

Jan 1, 1990

By E Cunha, D Roldao, TáTamantini, J F. C L Costa, T Webber, C Monteiro

The main problem of geostatistical simulations is to reproduce the real characteristics of the mineral deposit when there are few conditioning data. In this case, the geological interpretation, based on structures, geophysics and geological maps, plays the major role in terms of resource evaluation.The paper investigates the use of principal component analysis (PCA) to help classify multiple geostatistical categorical simulations considering the similarity among them and the interpreted model, herein referred as training image (TI).An iron deposit with four lithological facies, in a specific horizontal plane, was used as case study for two-dimensional (2D) simulations. Sequential indicator simulations (SIS) was used to obtain ten equally probable 2D images, which were generated and compared against the interpreted model (TI).In this study, 11 random variables are comprised by the vector of ten SIS realisations plus the training image (TI). The similarity between the TI and each SIS realisation is measured using the angle between the TI and SIS vectors projected in the new coordinate systems (PCA factors). It is possible to order the SIS realisations from the highest to the lowest PCA factor taking into account the TI similarity.The visual analysis of the images shows coherence in the PCA results as a method to measure similarity. This methodology can be used as a post-processing tool to rank simulation results and to select the ones which better represent the prior known geology or to compare the quality of different methods of simulation.

Sep 26, 2011

By R Ibarra, H Solis, G Teowee, B E. Papillon

The authors have previously described a piezoelectric-based system to measure the dynamic pressure during actual detonation in the field. This technique is used in a water hammer test set-up where a donor detonator is fired first, with the pressure sensor and an acceptor electronic detonator placed underwater in a water tank, and maintained at a fixed distance away from the donor detonator. The functioning and timing of the acceptor detonator are captured using a customised microcontroller board called the water hammer timer. Using such water hammer testing, the effect of dynamic pressure was studied as a function of the magnitude of pressure during the electronic timing countdown. Data obtained indicate there is no significant impact in the timing of the electronic detonators in contrast to what has been reported in non-electric detonators.CITATION:Teowee, G, Solis, H, Papillon, B E and Ibarra, R, 2015. Effect of dynamic pressure on electronic detonator timing, in Proceedings 11th International Symposium on Rock Fragmentation by Blasting, pp 575–578 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 24, 2015

The original leases making up today's North Kalgurli Mines were developed by independent companies on an ad hoc basis. The major disadvantage which now arises is the varying levels of mining horizons. From Kalgurli Shaft in the south, through main Shaft and to Croesus Shaft in the north, there are three separate sets of levels. work has commenced to link the three areas with either common levels or new development which will facilitate common access and haulage via Main Shaft.Generally, the workings at North Kalgurli were established at the turn of the century. The introduction of techniques and equipment to bring the mine into the 20th Century has been difficult and slow. The general size of openings, a widespread workforce and complex ore distribution often make innovation and change more than a challenge.

Jan 1, 1985

By Bronson B

The geotechnical and environmental aspects of heap leaching are very closely tied during design, operations and closure. Potential environmental impacts from heap leaching are mostly due to land disturbance and water quality issues, including both groundwater and surface water. Water quality issues are mostly related to containment design, which is primarily a function of proper sizing of the facilities and site specific liner design. Geotechnical analyses is the dominant discipline in providing cost efficient, operationally effective and environmentally sound heap leach facility designs. Much has been published on geotechnical aspects of heap leach design, for example Van Zyl, Hutchison and Kiel (1988) and Van Zyl (1987). This paper will emphasize a few specific aspects related to the geotechnical and environmental consideration for heap leach projects. These aspects are: ò site investigation; ò containment design; ò slope stability; ò heap flow dynamics; and ò closure design. Design of a heap leach project must consider not only the operating life but also closure and post-closure considerations. As a matter of standard practice, designing for closure is an extremely important concept. Not only is it important for environmental aspects, but experience also shows that projects designed for closure will be overall more economical for the total life cycle of the project. Closure considerations are also important during project feasibility evaluations to ensure that total life cycle costs are evaluated.

Jan 1, 1994

Underground excavations are subjected to complex stress changes caused by nearby mining, but may also be affected by repeated dynamic loading from blasting and seismic events. In some cases, the combined, cumulative effects can lead to unforeseen damage, displacement and instability. Simulating dynamic loading of an underground excavation is a very complex task. The state of rock mass stress, damage and deformation must first be simulated sufficiently requiring small-scale structures to be explicitly modelled. Supporting elements must be represented with high similitude and then the dynamic event must be applied to the system in the case of blasts, or evolve as a consequence of rock mass instability for seismic events. A special case is for the effect of pit blasting on underground excavations - discontinuous rock phenomena at scales from mine, to bench, to pillar, to tunnel need to be captured and this represents one of the most computationally intensive tasks in mine simulation. Recent advances in computer power allow these tasks to be completed at a mine scale, incorporating discontinuities and geological detail matching the best practice for static Finite Element analyses. The results are a worthwhile contribution to mine decision-making, but require careful interpretation and thoughtful inputs - even more so than quasi-static analysis - as the cumulative effects of unfavourable modeling practices are greater. Some learnings from experiences with mine scale, discontinuum dynamic simulation are summarised, including a discussion of considerations of scale and similitude for this type of analysis.

Nov 25, 2010

Late Cretaceous and early Tertiary coals in the Greymouth, Ohai and Kaitangata coalfields represent a major national energy resource comprising-up to 2500 x 106 tonnes of coal in ground. The three coalfields are closely related in terms of age and sedimentary and structural character. The most striking feature common to all is the complexity of the geology which has severely restricted exploration and mining of these coal resources. This complexity is manifest in the irregular lensoid nature of coal seams and by the incidence of unpredictable medium and small scale faulting and folding. There are many geological similarities between these coalfields which are considered to arise from a common origin which can be related to the plate tectonic evolution of the southwest Pacific region. In order to efficiently assess and exploit these coal resources it will be necessary to know their geology in great detail. This can he achieved by increasing the understanding of the sedimentary and structural evolution of the coal bearing basins. This knowledge may be gained by the application of traditional (ie drilling, field mapping) and innovative techniques (ie high resolution seismic, in seam seismic) with on going research-oriented studies (ie basin analysis, coal petrography).

Jan 1, 1987

By T Amiconi

Ernest Henry Mining commenced operations on its copper-gold project in August 1997, some two months ahead of schedule and ten per cent ($35 million) under budget. The mine is located in the highly prospective Mount Isa/Cloncurry mineral district in north-west Queensland, approximately 38 km north-east of Cloncurry. The developer and operator of the project is Ernest Henry Mining Pty Ltd (EHM), an incorporated joint venture between MIM Holdings Limited (51 per cent) and Savage Resources Limited (49 per cent). The deposit is located approximately 40 km north of Cloncurry in North West Queensland and lies beneath a featureless black soil plain with no significant creeks or gullies cutting across the site. Vegetation is sparse and consists essentially of Mitchell grass with occasional low shrubs and trees. Up to nine million tonnes of ore and over 43 million tonnes of waste will be extracted each year from an open pit operation to produce approximately 350 000 tonnes of concentrate when in full production.

Jan 1, 1998

By B Murphy, S O’Connell, J L. Heath

In the 1989 best-seller The 7 Habits of Highly Effective People, the author, Stephen Covey, highlights the importance of maintaining not only ‘production’, but also, ‘production capacity’. When operating a modern flotation concentrator, production is often measured in terms of concentrate tonnage, tonnes milled and plant utilisation. There are very few metrics that focus directly on flotation equipment condition in relation to performance, which is analogous to Covey’s production capacity principal. It is evident on many mine sites that flotation equipment condition is not monitored on a proactive basis and that the prevailing culture is to wait for a failure, before addressing an issue.This paper discusses examples of how poor equipment condition can lead to production loss through poor metallurgical performance. Actual examples are given where these problems have occurred in operating plants. An outline is provided on how metallurgical and maintenance departments can work together to protect production capacity and gain more from existing equipment.CITATION:Murphy, B, O’Connell, S and Heath, J L, 2014. Maximising value through maintaining your flotation equipment, in Proceedings 12th AusIMM Mill Operators’ Conference 2014 , pp 71–76 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 1, 2014