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Banks' focus in using cash flow methods can differ markedly from that of equity investors. This paper attempts to explain and describe bankers' approach by: ò outlining the fundamental difference between banks' and investors' risk / return profiles. ò describing lenders' consequent use of cash flow methods in mineral valuation. areas. explaining lenders' specific treatment of key risk Fundamental to understanding banks' appraisal of mineral projects is the appreciation that lenders have a basically different risk profile and outlook from those familiar to equity investors. Lenders do not normally participate in any project upside. The economics of lending dictate that banks can only accommodate a low probability of loan default and consequently banks' principal focus in mineral ""valuation"" is ensuring an acceptably comfortable probability of debt repayment. A simple conceptual explanation of lenders' risk / return position is outlined.

Jan 1, 1994

By M Allen

Energetics has been in the business of climate change for more than twenty years. This experience has only served to cement the understanding that decisions taken during design define the environmental and economic performance of any project. The 80-20 rule definitely applies, with 80% of a project’s performance being set through the first 20% of design decisions. This in depth knowledge is used for determining energy price forecasts, future carbon markets and carbon costs, current and future energy technologies, as well as giving a thorough understanding of the processes and technologies in place in the mining industry to work out what the most carbon and energy sensitive decisions during design are. Project selection and design is a gated process where decisions are taken in line with the information available at that point in the evolution of the project. Design decisions are, by their nature, dominated by uncertainty. In order to ensure that robust decisions are taken, it is necessary to ensure that the correct information is brought to bear at the correct decision point. This then defines and supplies the necessary carbon and energy information for design decisions to be correctly made. One of the most significant risks facing design engineers and decision makers in the mining industry is the future cost of energy. Part of this risk is associated with a future cost of carbon, however, a significant part of this risk is the cost, and variability in this cost, of the energy itself. This paper investigates the information required to support good decision taking during the design process.Project Managers and MetPlant Operators accept poor quality evaluations because they are generally unaware of what they should expect.The 2010 draft AusIMM ‘Guidelines for Techno-Economic Evaluations’ were collated by a subcommittee of practitioners and are regarded as best practice.They apply directly to projects and metallurgical plant evaluations, including those with a heavy technical basis. They can be applied to technical problem solving where there are no monetary computations.Project Managers and MetPlant Operators should demand that economic models and evaluations follow the six principles. They should become working tools which are easy to understand, fit for purpose, consistent, rigorous, record sources of input data, have key graphs and are rapid to audit.

Aug 8, 2011

By R J. Wood

Raise drilling (or raise boring) is not a new technology or methodology. The first raise drilling machine was developed by The Robbins Company (TRC) of the USA in 1962. TRC manufactured the first tunnel boring machine (TBM) in 1952 and Jim Robbins, the founder of the company wanted to ‘turn the TBM concept on its head’ so to speak.Many improvements have ensued in the 50 years since the first machine. Such improvements include advances in the drill rod and thread design, cutters and reaming heads. Raise boring would not have been possible without the development of the tungsten carbide insert cutters and there have been big advances in both the carbide technology and in the mechanical design of the cutters.Over time mines have developed deeper with a greater use of diesel equipment resulting in greater ventilation requirements. This in turn means larger and deeper ventilation shafts. There have also been improvements in directional drilling techniques. This all combines with the need and ability to construct larger shafts using the safe method of raise drilling. With suitable geotechnical conditions the RBR900VF is capable of drilling shafts to a diameter and depth of greater than 8 m and 2000 m respectively. Greater diameters are possible over shorter lengths with suitable ground conditions.The RBR900VF was designed and manufactured to specifications developed by Macmahon. This machine has the greatest thrust and torque capability of any machine in the world. It enables cutters to be more heavily loaded in the larger diameter heads and this is essential for efficient rock excavation. Additional features of the new machine include minimal manual handling to provide a safer working environment and higher strength steel for the drill rods providing additional safety margin.CITATION:Wood, R J, 2014. A revolution in raise boring – the development of the RBR900VF, in Proceedings 12th AusIMM Underground Operators’ Conference 2014 , pp 171–178 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Mar 24, 2014

By I Thomson, L D. Black, R G. Boutilier

The social license to operate (SLO) began as a metaphor for the ability of communities to stop mining projects. Soon people began to speak of levels of social license and the ability of communities to raise costs without completely stopping exploration or mining activities. Today the concept has spread to other industries and is evolving towards becoming a general management perspective on the socio-political rights and responsibilities of the corporation. The business case underpinning the SLO perspective on management is the need to assess and manage socio-political risk. For mining companies, socio-political risk has been steadily rising for several reasons, including the efforts of non-government organisations (NGOs) to pre-empt government policy options; the entry of mining companies into jurisdictions weak in the rule of law; and the weakness of global economic and financial regulation. In this perilous world beyond the comfort zone of effective government, mining companies must build their own socio-political stability by engaging directly with stakeholders to develop a strong SLO. In order to become a practical management perspective, the SLO needs to be measurable, which amounts to measuring the socio-political risks and opportunities presented by stakeholders. We present the results of efforts since 2009 to develop a globally reliable and valid measurement tool at the project and industry levels, validated in studies in Australia, Bolivia, Mexico and the USA. A factor analysis suggested four factors that mine management can address to raise their SLO level. The most chronically neglected factor involves the political right of the corporation to foster more equitable social contracts locally and regionally in both developed and developing countries. We conclude with recommended steps to earn and maintain the social license at the project and industry levels.CITATION:Boutilier, R G, Black, L D and Thomson, I, 2012. From metaphor to management tool - How the social license to operate can stabilise the socio-political environment for business, in Proceedings International Mine Management 2012, pp 227-238 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 20, 2012

By D Walker, A Tsvetkov, P Voigt, O Kloiber-Deane

The GPM Gold Operation has been employing an Albion Process™ plant at its Sotk (Zod) gold mine in Armenia since 2014. Long term data from the operation is now being published for the first time. The data presented includes concentrate throughput, as feed to the Albion Process™ plant (tonnes per day), sulphur grade in concentrate (% S), total sulphide sulphur oxidation in the Albion Process™ plant (% SOx) and gold recovery from Albion Process™ plant residues (%). The data provides a basis for evaluation of the effectiveness of the commissioning, ramp up and operation of the Albion Process™ plant. Notwithstanding the impact of a slower concentrator commissioning than expected, the plant demonstrates Series 1 behaviour on McNulty ramp up curves, indicating successful commissioning and fast ramp up. Interrogation of the data and operational experience indicates that this successful operation is a result of a process that is flexible, robust and stable, one that was designed well based on solid testwork results and pilot plant trials during the study phase undertaken by Glencore Technology and Core Resources, and where the local operators were provided with appropriate training in operation of the plant. CITATION:Voigt, P, Walker, D, Kloiber-Deane, O and Tsvetkov, A, 2018. Ramp-up and long-term performance of the Albion Process™ plant at GeoProMining Gold Armenia, in Proceedings 14th AusIMM Mill Operators' Conference 2018, pp 339–350 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 29, 2018

By G Danckert

The key technical theme of ‘orebody knowledge’ has been applied by Rio Tinto in the Pilbara iron ore precinct from 1966, when operations first started there. It forms the basis of present day application, as well as planning for the future.This paper will review how the early towns and mines commenced and how they formed the basis of Rio Tinto’s early operations, on which the Pilbara precinct has been based. A profile of the last decade of Pilbara growth will be highlighted, together with the current integrated network of mines, rail and ports and the next generation of expansions.The paper will specifically describe the Rio Tinto process of significant resource evaluation, including comprehensive drilling programs and the conversion from resource to reserves. It will also describe the overall mine planning process, both from the strategic view, as well as for short-term mine plans.The ability to innovate in resource development will be discussed. This will include not only the technical dimension of changing cut off grades, use of low-grade ores and managing low-grade stockpiling and beneficiation, but also the broader application of new technology and innovation in the iron ore business.

Jul 11, 2011

By J Centofanti, D Conti, R Riske, C Morley, A Cook

Why is it so difficult? Why are there differences throughout the resources industry in how reconciliation factors are reported and calculated? Why is there no standard formula to use? These are common questions asked when mining companies try to compare reconciliation results across operations or attempt to undertake internal or corporate governance reporting processes. For many mining companies the calculation of reconciliation factors is often a very time and resource intensive part of mandatory reconciliation reporting. Some major mining companies, that move millions of tonnes of material per annum, dedicate full time resources to the calculation of reconciliation factors. The willingness of these companies to set aside resources demonstrates the value that operations place on good reconciliation reporting. Reconciliation is about measuring the variance between two like measures at different points along the mining sequence. It can be undertaken between predictive models, forecast plans and actual measured performance. Calculations are used to derive a variance between two sections within the mining sequence, with the result being commonly known in the resources industry as a æfactorÆ. Mining companies use the calculation of reconciliation factors as key performance indices (KPIs) to provide a æhealth checkÆ of their operation, with variances often pointing to issues either with the accuracy of the original estimate or the quality of the measurement being used in the comparison. There are many reconciliation factors that can be calculated and reported. This paper will set out, clarify and provide a recommended standard means of calculating each specific factor that, where adopted by a company, will ensure compliance with the international reporting codes, such as JORC. Using case studies from Rio Tinto Group (Rio Tinto) and BHP Billiton Mitsubishi Alliance (æBMAÆ), and the authors experience across a wide range of mine sites, the outline of a generic solution for tracking a parcel of material from the pit through to the port along with appropriate reconciliation factors is provided. The intention of proposing standardised reconciliation factor terminology and methodology is to provide the foundations of a system to enable communication and comparison across different commodities, companies and mines sites.

Jan 1, 2009

Mining companies in order to compete and succeed in being viable business propositions must look to the future and select mining methods which guarantee improved efficiency and productivity as well as lower costs. A mining company in adopting a method of mining must now select the equipment most compatible. To some mines compatible equipment may mean the use of drilling jumbos to replace hand held rock drills or the use of load haul dump units to replace scrapers. To other more mechanised mines compatible equipment may mean the use of raise borers and road heading machines. The right decision will be where equipment compliments method in such a way that the working environment is improved, productivity is maximised, cost if reduced and all profit opportunities are optimised. An example of such is where the use of improved mining techniques in underground operations may see cut off grades reduced. By selectively mining these lower grade orebodies, smaller operation's ore reserves improve and the capacity for continued growth is enhanced.

Jan 1, 1990

The disasters between 1920 and 1979 in coal mines in Queensland and New South Wales due to underground fire, gas or coal dust explosion or to gas or coal outbursts, have been assessed. The evidence relating to disasters caused by gas explosion points strongly to divergence from safe mining practice as the main cause. There is a need for greater training and education of personnel, closer analysis of gas reports, better monitoring and testing procedures, improved ventilation standards and a policy where safe working practice is actively encouraged. Conditions in the New South Wales occurrences of gas explosion were similar to those at Collinsville, Queensland in that dykes, igneous sills, burnt out coal and faulting were common to all. Information on outbursts indicates that contributing factors were intrusions, depth of cover, fault zones and other geological disturbances, methods of work, pressure and type of gas.

Jan 1, 1982

By Y Shougu

Many mine accidents will affect the mine ventilation system when they occur. At present, there is a lack of monitoring means to capture the occurrence of accidents in time by monitoring the ventilation system, so as to take emergency measures to reduce the loss of personnel and property. Pressure wave is an elastic wave existing in air. Most accidents in mine will cause obvious changes of pressure wave. It is an innovative idea to monitor the occurrence of accidents in mine by measuring pressure wave. The development and functions of the pressure monitoring device and related software are introduced in detail. The pressure wave monitoring test is carried out in San Xavier underground mining laboratory, and the D-wave and S-wave waveform data are collected. The waveform characteristics are analysed, and the main frequency distribution of the pressure wave is found to be within 1 Hz by using FFT. At the same time, the influence of the propagation distance of the pressure wave on the waveform is analysed. The propagation velocity of D-wave and S-wave are roughly calculated, and they are 279.6 m/s and 397.3 m/s respectively. S-wave is slightly faster than D-wave. Although there are errors and uncertainties in the test, the test verified the feasibility of the existence and collection of pressure waves in the ventilation roadway, and provides a method for the future study of the propagation of pressure waves in the mine ventilation system.

Oct 12, 2022

By Bin H

East Guangdong tin province overlaps the southmost part of the mesozoic magmatic arcof continental margin type in Southeast China and is dominated by mesozoic syntectic magmatism,which associated to tin mineralization. It is distinguished from Nanling tin province but quite close to NW Bolivian tin province in both tectonic and magmatic relations.Tin deposit's mostly of cassiterite-sulfide, cassiterite-silicate formations are localized along exsocontact zone of granitoid batholith or stock, boundary area of volcanic depression, or, within volcanic edifice. Petrochemistry studies show tin was concentrated as intermediate-acidic magma evolved by fractional crystallization. Xiling tin deposit of vein type related to extrusive... the lava dome was formed at T C 221-301 and at very shellow depth,seems to correspond to type A in classification for Bolivia tin deposits by J.N.Grant. Tashan tin deposit of dissemination type related to hypergene intrusive facies,with mineralization occured in endocontact zone of granite porphyry dykes is considered as porphyry type,which spported by H-0 isotope and gas-liquid inclusion evidences. It formed at T C 250-430, comparable to Bolivia porphyry tin deposits,but at a greater depth 1.3 3.0km.A model for known tin deposits in East Guangdong was worked out. A good prospecting perspective was revealed for the potential type of tin deposit in East Guangdong--subvolcanic porphyry tin deposit.

Jan 1, 1990

By I Lipton

The existence of metalliferous mineral deposits on the deep-sea floor has been known since manganese nodules were discovered in the Arctic Kara Sea in 1868. Modern exploration to define commercially viable base and precious metal deposits began in the 1970s and gained further momentum in the last decade. High grade deposits have been delineated but investors remain cautious, many considering deep sea mining projects to be riskier than terrestrial projects. This paper compares opportunities and risks presented by terrestrial mining projects with those presented by deep sea mineral deposits (Table 1). The Solwara 1 volcanic-hosted massive Cu-Au-Ag sulphide deposit, the Atlantis II Deeps sedimentary base metal sulphide deposit, and the Mn-Ni-Cu-Co nodule deposits of the north-eastern Pacific Ocean are used as examples. These are advanced deep-sea projects with published Mineral Resource estimates, on the cusp of development. Off-shore diamond mines in Namibia are also considered. These examples provide a basis for comparing exploration and geological uncertainty, the technical risks of proposed mining systems, and the potential environmental and social impacts. CITATION: Lipton, I, 2018. A comparison of opportunity and risk in deep-sea and terrestrial mining projects, in Proceedings Complex Orebodies Conference 2018, pp 102–105 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 21, 2018

By Bell I. F

In 1985, ZC Mines (now Pasminco South) had been unprofitable for some years due to a combination of high operating costs, low metal prices, low head grade and an aging and inadequate mining infrastructure. However, the resource of metal in the ground was still of world class, even after some 80 years of mining. A major study, which was to be of two years duration, was therefore commenced to establish a practical and profitable long term mining strategy and to cost the infrastructure options needed for its support and thus form the justification for a capital expenditure program to take the mine profitably into the 21st century and its second century of operation. This paper discusses the rationale behind the methodology adopted and the nature of the results achieved in one aspect of the study - the determination of the mineable resource and the relationship between the head grade/quantity of the economically mineable resource and the variables of cut-off grade, cost structure, annual production rate and metal prices/exchange rates. The basis of the study was the designing of some 5000 scopes to mine out the entire resource for a range of cut- off grades and the assembly of the detailed physical data thus obtained in a stope-by-stope data base for financial and other analysis. Those scopes which were shown to be economically mineable were then scheduled for two optimum annual production/cut-off grade/metal price combinations to provide life-of-mine cost and value of production cash flows.

Jan 1, 1992

By I Canbulat, J Oh, A Mcquillan, D Payne

This paper presents a new risk assessment tool for coal mine excavated slopes. This new empirical-statistical Slope Stability Assessment Methodology (SSAM) is intended for use by geotechnical engineers at both the design review and operational stages of a mine’s life to categorise the risk of an excavated coal mine slope. A likelihood of failure is determined using a new slope stability classification system for excavated coal mine slopes developed using a database of 119 intact and failed case studies sourced from open cut coal mines in Australia. Consequence of failure is based on slope height and stand-off distance at the toe of the excavated slope. Results are presented in a new risk matrix, with slope risk being divided into low, medium and high categories. The SSAM is put forward as a new risk assessment tool to assess the potential for, and consequence of, excavated coal mine slope failure. Unlike existing classification systems, assumptions about the likely failure mode or mechanism are not required. Instead, the SSAM applies an approach which compares the conditions present within the excavated slope face, with the known past performance of slopes with similar geotechnical and geometrical conditions, to estimate the slope’s propensity for failure. The SSAM is novel in that it considers the depositional history of strata in an excavated slope and how this sequence affects slope stability. It is further novel in that it does not require explicit measurements of intact rock, rock mass and/or defect strength to rapidly calculate a slope’s likelihood of failure and overall risk. Ratings can be determined entirely from visual observations of the excavated slope face. The new SSAM is designed to be used in conjunction with existing slope stability assessment tools. CITATION:Mcquillan, A, Canbulat, I, Payne, D and Oh, J, 2018. New risk assessment method for coal mine excavated slopes, in Proceedings The Fourth Australasian Ground Control in Mining Conference (AusRock), pp 473–495 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 30, 2018

By J Rayner, R P. Langmead, J A. R Coote

Gosowong is situated within the Neogene magmatic arc of Halmahera island in the Maluku province of eastern Indonesia. It was discovered as the result of a rigorous ground reconnaissance program in an area with no previous mining activity. The broad structural setting in the Gosowong District comprises an elongate dome formed by the forceful upward intrusion of magma along a deep-seated structure, resulting in associated tensional fracturing trending parallel to the long axis of the dome. Four copper-gold porphyries and numerous low-grade epithermal veins occur within this mineralised corridor, with the Gosowong Deposit being the only economic occurrence discovered to-date. Gold mineralisation is hosted within multiphase epithermal quartz-adularia and quartz-chlorite fissure veins, breccias, and stockworks. High-grade gold mineralisation is emplaced in two gently south-plunging ore shoots along a 400 m section of the north-striking, east-dipping, Gosowong Fault, the primary control on mineralisation. The Gosowong Fault is believed to be a tensional fracture associated with uplift of the dome. Lithological variation and structural intersections play a large role in grade distribution within the vein zone. Host rocks comprise a wide range of shallow marine, intermediate-basic volcanic and volcaniclastic rocks of ?late Miocene age. The Gosowong gold deposit is a classic example of a low-sulphidation epithermal gold deposit, based on the abundance of adularia and illite in the alteration assemblage, and low base-metal sulphide content within quartz-adularia veins. The indicated resource is estimated at 0.99 Mt at 27 g/t Au and 38 g/t Ag for a total of 870 000 ounces Au, using a cut-off grade of 2 g/t Au.

Jan 1, 1999

The organisers of this function have suggested that this presentation should accomplish the following broad goals:set the technical tone for the conference to follow, implying some discussion of the æstate-of-the-artÆ of reserve estimation; and raise some current and common problems or deficiencies in our art in order to be thought provoking. As an engineer it is always easier to raise problems than to solve them with state-of-the-art. Consequently, I have had to limit the extensive list of problems that could have been discussed within this presentation. In regard to the state-of-the-art, this presentation will not be an esoteric discussion of the latest statistical estimation processes, although I intend to challenge those with skills in that area to address some of the thought provoking issues later on. The subtitle of the paper was established after reading an excerpt from æLife on the MississippiÆ by the American humorist Mark Twain in which Twain observed that the Mississippi River had become shorter during his working period on the River due to natural cut-offs and man made channels. Projecting into the future, he calculated that by now, Cairo, Missouri and New Orleans, Louisiana would become a single city with one mayor (the two cities are still separated by some 500 air miles). As a moral to this story Mark Twain observed that one can obtain: æwholesale returns of conjecture out of such a trifling investment of factÆ.

Jan 1, 2000

Management at all levels continually strive to optimise, or make the most of resources available to them. Daily, decisions are being made on how to most efficiently locate and exploit an ore body, then process and market the recovered metal. At one level this optimisation process in the Australian mining industry appears to be successful, for example, witness the improvement in productivity and reduction in operating costs through the 1980s. Yet, at another level the industry's performance has been appreciably below expectations as measured by rate of return criteria. Companies likely to exhibit superior performance are those that are able to co-ordinate, through good planning, the optimisation process at all levels of the organisation. An important role for general management is therefore to provide the context or boundary conditions in which optimisation can Proceed.

Jan 1, 1991

By Fair A, Oxenford J

Syncrude Canada Ltd operates one of the largest open pit mines in the world at Fort McMurray in northern Alberta, Canada. In 1993, Syncrude mined and processed 131.2 Mt of oil sands to produce 67.0 MBbls of synthetic crude oil (SCO). This represents approximately 13 per cent of Canada's crude oil requirements. In addition to the oil sand mined, Syncrude moved approximately 96 Mt of overburden ahead of the mining operation in 1993. Since start-up in 1978, Syncrude has had outstanding success in improving the safety and reliability of its operation. Much of this success has been achieved by reducing risk through the application of new and improved technology. This improved safety and reliability has resulted in, among other things, very significant improvements in operating costs and profitability. This paper discusses some of the technology applications that have been introduced at Syncrude to reduce risks to people, equipment, operations and the environment. Three specific examples will be discussed in detail to demonstrate how reductions in risk have greatly improved the operation.

Jan 1, 1994

Solid Energy New Zealand Limited has grown significantly since becoming a State Owned Enterprise in 1987. Exports, profit, turnover, output per employee are all trending upwards. The company has identified the management of Health and Safety as a key capability to sustain future growth, and to add value to the business. It has set a target of being the best practice in managing Health and Safety.   This paper examines the company's activities in the Health and Safety area, and how it sees that value can be added by preventing and containing losses through accidents involving people, property, process and the environment. Solid Energy is confident that a Planned approach to managing Health and Safety can achieve this. It will explore historical events, strategic changes, Health and Safety systems, Benchmarking, Performance Measures, initiatives, progress to date and challenges for the future.

Jan 1, 1997

Since the earliest recorded prospecting of the 1860's mineral exploration and mining in Fiordland has been discouraged by the formidable physical difficulties presented by its isolation, extremely rugged relief, treacherous coastal waters and generally unfavourable weather conditions. Government assistance was often sought by the miners and prospectors but little, if any, support or encouragement was received after the initial period. During the 1840's decorative marble was quarried at Caswell and Dusky Sounds. A prospector discovered and attempted to mine copper sulphides to the north of Dusky Sound (Parks Mineral Beds) and near Mt Solitary. A small Pb, Zn, Cu, Ag, Au bearing quartz reef was discovered and driven on in the granite coast line of Preservation Inlet (Bradshaws Reef) and the ore roasted on site. Alluvial and quartz lode gold was discovered at Preservation Inlet in the 1890's and led to the recorded recovery of 11 000 oz of mainly lode gold. Falloff in grades with depth, thinning and splitting of the reefs and the high mining costs at this location led to a virtual abandonment of the field by 1906. In the late 1950's and early 1960's the geology of Fiordland was mapped by the Geological Survey at 1:250 000 scale, but field work was largely confined to the shore lines of the coast and fiords. In view of the physical difficulties it is not surprising that mineral exploration and mining up to 1970 was limited to the scant attention outlined above.

Jan 1, 1977