Search Documents

By Darby H. P, Vincent R. J

Sydney's Eastern Suburbs Railway from Central to Bondi Junction required the construc- tion of 10.4 km of single-track tunnel and five underground stations. Much of this work took place beneath the commercial centre of Australia's largest city. This paper discusses the general precautions taken and the specific design solutions made for such problems as support of a 15-storey building with foundations several metres above the excavation to ensure negligible differential settlement, excavation immediately below running tunnels, underpinning of multi-storey buildings, tunnelling under massive masonry retaining walls and demolition and rebuilding of part-completed structures.

Jan 1, 1981

By P Gilroy

In recent technical investigations that were triggered from ore for rail shortfalls at Yandi, BHP Iron ore has identified a gap in resource knowledge relating to geo-metallurgical characteristics that predict materials handling performance and throughput. Within these investigations BHP has learnt that this lack of resource knowledge has translated to a lack of predictability associated with mine planning inputs which has resulted in poor compliance to plan and deviation management practices. A business value chain was developed in an attempt to identify the best possible solution to unlock this resource knowledge in the short, medium and long term planning horizons. A fast fail approach was taken with the implementation of hyperspectral blasthole analysis, which was chosen to deliver the best possible value driver for the asset. This report will detail the Yandi journey in expanding the hyperspectral and geo-metallurgical value chain, unlocking resource knowledge along the way. CITATION: Gilroy, P, 2018. Development of an empirical geo-metallurgical model that unlocks value of the mineral resources at Yandi Mine, in Proceedings Complex Orebodies Conference 2018, pp 85–87 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 21, 2018

By C Catania

Mining companies and operations across the globe typically target best practice financial management, along with a focus on economically driven mine plans. Not only is this inherent in running a successful mining business, but also critical in addressing investor scrutiny. The standards for social and environmental practices is less consistent than this, with most companies adopting standards that are driven through legislative and compliance requirements of the nations in which they operate. Although there is still room for improvement, Australian is a country that stands at the forefront of social and environmental legislation, driving more sustainable planning practices for mining operations, with an ever-increasing focus on mine closure considerations. Of the many nations yet to reach such a legislative position, Kazakhstan is a place where some companies are driving towards world class standards beyond what is government mandated. CITATION:Catania, C, 2018. World-class mine planning for a sustainable future in Kazakhstan Mining, in Proceedings Life-of-Mine 2018, pp 6–7 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 25, 2018

By P Cleary, G K. Robinson, J Hilton, P Wilson

Concern has been expressed that Vezins can be biased when used for sampling fine materials if the cutter speed is as high as the 0.6 m/s which is often used. Using modelling techniques that consider airflow as well as particles, we have endeavoured to investigate sampling bias as a function of the size of fine particles, cutter aperture, cutter speed, shape of cutter blades, and the size of the gap between the inlet pipe and the cutter blades. Using crude estimates of the rate of airflow and a simple model of a single particle moving through air led to an approximate rule that bias will not occur due to mechanisms related to airflow for particles larger than about 200 microns; and bias will always occur for particles smaller than about 40 microns. For particles between these size limits, the extent of bias depends on particle density, cutter speed and cutter geometry as well as particle size.CITATION:Robinson, G K, Wilson, P, Hilton, J and Cleary, P, 2012. Avoiding bias when using vezins for sampling dusty materials, in Proceedings Sampling 2012 , pp 109-114 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 21, 2012

Rhyolitic rocks are volumetrically significant in the eastern part of the Coromandel gold province, yet deposits hosted by rhyolite (Kapowai, Broken Hills, Neavesville, Wharekirauponga and Waihi Beach) are generally low grade and subeconomic, especially compared with andesite-hosted deposits. In contrast, rhyolitic volcanic centres in Nevada host a number of economically significant epithermal gold deposits such as Round Mountain, Sleeper and Bullfrog. The Nevada deposits are associated with 27-20 Ma continental arc volcanics dominated by ignimbrites (eg Round Mountain), or younger 17-9 Ma bimodal rhyolite-basalt volcanism related to extensional basin-and-range tectonics (eg Sleeper). The Round Mountain deposit is localised on a caldera boundary fault and the mineralisation was deposited soon after eruption of the host rhyodacitic ignimbrite. In other Nevada deposits, hydrothermal systems are linked to the closing stages of flow-dome complexes and mineralisation is localised along normal faults associated with extensional basin-and-range tectonism. The style and composition of the mineralisation is similar in both the Coromandel and Nevada deposits and consists of sheeted and stockwork quartz veins, containing electrum as the main ore mineral and only minor sulphides (mainly pyrite) Likewise, the vein minerals were deposited from low salinity hydrothermal fluids in the temperature range of 200-270¦C. Both the Neavesville and Round Mountain deposits are geochemically anomalous in molybdenum. The deep oxidation of the Nevada gold deposits, dry climate and low level of competing land uses combine to make it economic to mine and process very low grade ore (0.2 - 2.0 g/t Au) by heap-leaching with cyanide solutions in most areas of Nevada. Although extensive low grade gold mineralisation is known at deposits such as Wharekirauponga and Neavesville, it is sub-economic because of shallow oxidation and land use conditions that are unfavourable for open pit mining and heap leaching.

Jan 1, 1996

By P Cesare, S Munro, D Wandel, R A. Bearman

Consideration of the processing plant operational envelope is a key factor in production scheduling,and therefore mine planning, for any mining operation. In many cases hard-wired or regressionbased tonnage-grade-recovery relationships are used as mine planning constraints and as a means of valuing the system output. In extensions of this type of approach, various regressions can be used to describe throughput limits, based on a number of global metallurgical parameters.The ultimate position for the optimisation of a mine plan and production schedule is to have a full process plant model running as an integrated part of the mine planning exercise. A plant model suitable for this needs to have all the required sensitivities to input parameters such asfragmentation, grade, mineralogy, strength and hardness. The model then needs to convert these to performance measures for the plant, which include recovery, throughput, product size distributions, energy consumption, water use and operating cost.In this paper an approach is outlined that takes this view and then goes beyond it to provide a full, time-based bottleneck identifi cation and valuation tool.Using such an approach it becomes possible to run mine plans and production schedules in windows of days, weeks, months and over the life-of-mine with a time-enabled process model acting as the active constraint. In this way virtual bottlenecks can be identifi ed for various mine plans and schedules well ahead of time. The value of de-bottlenecking can be defi ned, not just at a plant scale, but in terms of the overall mining operation, and the data can be used as the basis for capital investment decisions.CITATION:Bearman, R A, Cesare, P, Munro, S and Wandel, D, 2014. Incorporation of a full process plant model as an active constraint for mine planning and production scheduling, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014 , pp 121–128 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014

By K Ionkov

The oolitic iron ore reserves in Lisakovsky, North Kazakhstan represent quite a challenging deposit both from a technological and from a resource point of view. The difficulties in processing such types of ore are connected with the extremely fine dissemination of phosphorus and gangue minerals inside the oolitic formations. The goethite crystals are cemented in their structure by aluminosilicates with quartz and other gangue minerals and dissemination is so fine that they are not separable by physical methods. The laboratory tests performed for dephosphorisation show that the combination of alkaline roasting followed by low intensity magnetic separation and acid leaching enables the obtaining of high grade iron concentrate. The magnetic separation performed ahead of leaching is effi cient as a means of buffering the high pH by washing out the soluble salts and the excess of base and after leaching facilitates the removal of secondary liberated gangue minerals in the non-magnetic fraction. As a consequence, phosphorous content is dropped to a more acceptable level for the ferrous metallurgy and iron grade and recovery reach 61.6 and 80.8 per cent respectively.

Jul 11, 2011

By P Velletri, N Gaylard

The management of wear surfaces in mining operations has remained largely unchanged since the inception of mining. Sacrificial wear liners are installed on the inside of chutes, hoppers and other equipment used to transfer bulk ore to protect the asset from abrasive wear caused by the flow of material. These liners are generally replaced at fixed intervals which may be determined based on historical wear rates or may be driven by other maintenance requirements for that asset. This approach does not always yield satisfactory results, especially for critical assets where the impact of downtime on production can be substantial. For such assets, a condition-based maintenance strategy has the potential to significantly increase productivity and reduce the total cost of ownership associated with the asset. However, for such a strategy to be successful, timely information on the actual condition (remaining thickness) of the wear liners is essential. This paper describes the development and implementation of a wear monitoring system that can be used to remotely and continuously report on remaining liner material thickness in real time. It details some of the challenges that were overcome when developing the system, including the design of a patented thickness measuring system that can be used in a variety of liner materials and is tolerant to the presence of ore on the wear surface. The paper also explains how a cloud-based approach enables data from the wear sensors to be integrated into external systems such as a data historian, which has been demonstrated through a collaborative project with one of the largest iron ore producers in the Pilbara. This ability to combine real time liner thickness information with other data sources, such as throughput, provides the foundation for the transition to a condition-based maintenance strategy.

Nov 8, 2021

By A Roseman, T Gruber

Traditional methods for installing gaskets for segmented bored tunnels have relied upon different bonding procedures with adhesives that carry a series of disadvantages to segment producers. Fixation of the gaskets into the concrete segment as part of the casting procedure has been developed over the last 20 years and has emerged as an economical solution to produce high-quality tunnel segments for various technical tunnel applications. This paper investigates the advantages of using anchored gaskets, the different tunnel systems that employ anchor gaskets and reviews the first anchor gasket project; the Lee Tunnel and analyses how segment production efficiencies are gained.CITATION:Gruber, T and Roseman, A, 2014. Use of anchored gaskets in segmented bored tunnels, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 253–256 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

Sampling protocols and metallurgical flow sheets should be designed to suit the style of mineralisation in question. In support, the a priori need for evaluation programs is the characterisation of the mineralisation type(s) and domain definition. The proportion and size of gold particles has a direct impact on the effectiveness of sampling protocols and metallurgical processes employed. Within the coarse- to-fi ne gold spectrum, the samplability of a deposit ranges from relatively simple for fine-grained disseminated particles, through to difficult for coarse gold mineralisation. Conversely, metallurgical processing may be relatively simple for coarse gold ore and more difficult for very fi ne gold ores. Most deposits contain a proportion of both particle size types. The nature of mineralisation, mineralogy and associated gold particle sizing can only be determined by preliminary sampling to facilitate testing. Mineralogical studies, focussing on ore mineralogy and gold particle deportment, size and distribution are required as part of wider paragenetic and geometallurgical investigations. This paper discusses key issues and presents a methodology for the determination of gold particle size in coarse gravity-gold ores to support sampling optimisation and which also contributes to metallurgical characterisation.

Aug 1, 2010

By J Zhang, L Klemettinen, A Jokilaakso, J Biswas, J Partinen, H O’Brien, A Klemettinen

Waste lithium-ion batteries (LIBs) are important secondary sources of many valuable materials, including Critical Raw Materials (CRMs) defined by the European Union (EU): lithium, cobalt, manganese, and graphite. Additionally, LIBs typically contain nickel and copper, which are classified as Strategic Raw Materials for EU since 2023. In recent years, great effort has been made to develop efficient recycling processes for waste LIBs. Pyrometallurgical processes have been essential in industrial production of metals for many decades. These technologies are relatively mature, with high adaptability for different raw materials. Pyrometallurgical treatment in LIB recycling typically involves the use of smelting processes, in which waste batteries are heated above their melting points and metals are separated through a reduction reaction in the liquid phase. Through this recycling route, cobalt, copper, and nickel can be efficiently recovered in the form of a metal alloy, whereas lithium and manganese are lost in the slag phase. The goal of this work was to increase the recoveries of valuable battery metals through a combination of hydro- and pyrometallurgical unit operations. First, industrial Li-ion battery scrap underwent a selective sulfation roasting stage, where the aim was to transform LiCoO2 and Mn-oxides into Li, Co and Mn sulfates. After roasting, the battery scrap was leached in distilled water with a solid to liquid ratio of 100 g/L at 60°C and recovered 95 per cent of Li, 61 per cent of Mn and 35 per cent of Co. After leaching, the solid leach residue was mixed with industrial Ni-slag and biochar, followed by reduction at 1350°C in argon atmosphere. The high-temperature smelting experiments were conducted as a function of time (5–60 mins) to investigate the reduction behaviour of battery metals. The results show that Co and Ni from the slag and leach residue can be efficiently recovered in the slag cleaning stage.

Jun 19, 2024

Holla has given a good background to the various methods of subsidence control in the coalfields around Sydney.The present writer notes that in many cases, especially with wide longwall panels, there is not the flexibility to alter the mine layout as there is to some degree with the various pillar extraction methods. For this reason it may not be possible to plan the workings to minimise subsidence and some damage to structures may occur. The cost of repair or the cost of subsidence provisions to minimise damage may be small in relation to the tonnages of coal which would otherwise have to be sterilised. One method of subsidence control which has been in use in the Newcastle area since 1970 is the panel and pillar layout (partial extraction layouts with stable pillars). An extracted panel width of 0.6 times the depth of cover resulted in a maximum subsidence of 115 mm for an extracted seam thickness of 2.2 m.As Holla points out, the extracted panel widths in relation to th depth of cover depend on the particular geological setting. His Fig. 3 shows that the subsidence over a panel width of 0.3 times the cover depth in the Southern Coalfield is the same as over a panel width of 0.55 to 0.6 times the cover depth in the Northern Coalfield.Selective pillar extraction and longwall mining can both be used in the panel and pillar layout. Holla's Figs 2 and 3 are used to estimate the maximum subsidence over an extracted panel of known geometry. Maximum subsidence is related to seam thickness. What provision is made for a reduction in subsidence due to the coal which remains behind in a pillar extraction panel if the pillar recovery is poor? The writer suggests that an effective seam height could be used, based on the actual mining height reduced by a factor to account for the percentage recovery of coal from an extracted panel.

Jan 1, 1986

By R A. Pakhomov, L V. Krupnov, P V. Malakhov, I M. Dymov

The article presents results of thermodynamic calculations and laboratory studies, focusing on the cobalt behaviour during oxidative smelting of copper-nickel mattes. The compositions of the studied solutions are related to the products formed during the second stage of the converting process of copper-nickel matte at the Nadezhdinsky Metallurgical Plant (NMP) of MMC Norilsk Nickel company. These sulfide products typically contain from 1.5 to 12 wt per cent of iron. The obtained experimental results and thermodynamic calculations indicate that adjusting the CaO ratio to increase the proportion of CaO or complete replacement of SiO2 with fluxes containing CaO leads to a significant increase in cobalt recovery rates in the matte phase (with an iron concentration of 2.5 wt per cent) raising them from 30 per cent to 45 per cent. Meanwhile, the recovery rates of copper and nickel remain constant.

Aug 21, 2024

By C Jacobsen, N Harries

Assessing and managing instability hazards is an essential activity when working with unstable natural slopes and excavated open pit mining slopes. Slope monitoring has become the standard technique for the management of geotechnical risks associated with mine slope instability hazards. In recent decades, a proliferation of new monitoring techniques such as terrestrial radar, satellite InSAR and LIDAR have become standard operational tools, complementing conventional survey-based monitoring solutions. A reliable monitoring system should identify and record incipient anomalous slope movement. Although the most obvious purpose of a monitoring system is safety related, slope deformation and performance monitoring also enhance the understanding of slope behaviour and assists in improving system design and implementation. For a monitoring system to be considered an effective early warning tool, it needs to operate in real-time and should be linked to the mine’s emergency communication systems. Terrestrial radar systems have been developed that can provide near real-time measurements, at a high level of precision and covering broad areas in all weather conditions. This has had a positive impact on the management of geotechnical risks in operational conditions. The technology adoption of RADAR in mine monitoring has significantly progressed in the last 20 years from technology enthusiasts, to visionaries, to pragmatists to conservative users. However, the increasing adoption of RADAR cannot reduce or remove other monitoring techniques that often have important benefits; even if these technologies cannot be used as a real-time operational tool. An increasing awareness on the importance of combining data from different monitoring techniques to develop a holistic picture of all possible geotechnical hazards is a current industry trend. This is proving to be an excellent foundation for managing hazards associated with slope instability in open pit mines, and is only expected to improve with time with the adoption of new technologies based on big data and Artificial Intelligence (AI).

Nov 29, 2022

By M J. Davies, R S. Davies

Despite increased expenditure, the global discovery rate of world-class ore deposits has been in decline for over a decade (Schodde, 2017). Mineral exploration has traditionally followed an empirical approach, searching for evidence of mineralisation upon the surface of the planet, then drilling to define the extent of an ore body beneath the surface. As outcropping deposits in well-defined areas are depleted, there is a need for exploration to extend to less well-explored search spaces. One popular new frontier is exploration at greater depths beneath the Earth's surface. However, exploring for deep deposits with limited surficial evidence requires the implementation of predictive targeting methodologies (Hronsky, 2011; McCuaig & Hronsky, 2014). The Mineral Systems Concept (Hronsky & Groves, 2008; McCuaig et al., 2010) provides a framework for predictive exploration targeting. Ore deposit formation is recognised to be a focused mineralising event. These events represent self-organising critical systems and are underpinned by the interaction of complex, non-linear processes. Through the collection and analysis of datasets that map mineralising processes, it may be possible to predict the size and location of resultant ore bodies. CITATION: Davies, M J and Davies, R S, 2018. Beyond below-ground geological complexity: Developing adaptive expertise in exploration decision-making, in Proceedings Complex Orebodies Conference 2018, pp 95–98 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 21, 2018

By D M. Marques, J F. C L Costa

The estimation of process plant head grade is not trivial and is a source of constant dispute within the mining industry. Grade estimates informed by the short term mine planning are frequently not reproduced by sampling the continuous flow of ore at the plant. Head grades are normally obtained by periodically sampling the continuous flow during a day or shift, and taking the average of the multiple increments collected. The standard error of this mean grade depends on the ore variability and the frequency (number) of aliquots extracted. The more increments are taken the higher is the precision on the calculated mean. Variographic experiments are normally used to map grade variability along a certain period of time and the extension variance is derived from this variogram. This experiment is time consuming, expensive and cumbersome. Mining industry personnel rarely apply this approach. Additionally, a temporal variogram can vary from day to day as different ores are mined along the life of the mine. This paper investigates a novel approach based on simulating the grades feeding the processing plant. In situ 3D grade models are built using geostatistical simulations. Grade spatial continuity and variability are reproduced in models that mimic the real deposit. These models are used in mine planning and scheduling transforming a 3D block model into an one dimensional string of values feeding the plant (one dimension flow). These grades have the statistical characteristics of the unknown real grades and can be sampled to emulate a variographic experiment. The results showed consistency and adequacy to estimate the sampling error (Gy, 1998 p 31) for various sampling intervals using the simulated grades. Also the results show a variographic experiment can change significantly from time to time, as ore changes and a selected sampling protocol can become obsolete if not adjusted for ore variability.CITATION:Costa, J F C L and Marques, D M, 2012. Defining a sampling strategy for a continuous flow supported by geostatistical simulations, in Proceedings Sampling 2012 , pp 3-8 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 21, 2012

By S Basu, P M. Midhun

Electro-Slag Remelting (ESR) is a process capable of producing ingots with much lower centre-line segregation and better internal soundness than conventional ingot casting processes, as well as lower inclusion and sulfur concentrations. This process is commonly used for alloyed steels intended for critical applications like components of marine turbines, supercritical powerplants and rocket motor casings. It involves melting a metal electrode using electrical resistive heating in a slag pool and re-solidification of the resulting metal droplets beneath the slag layer, forming an ingot. Conventional ESR fluxes consist primarily of CaF2, Al2O3 and CaO, along with minor concentrations of SiO2, MgO etc. The emission of fluoride vapour from the molten slag causes several environmental and health problems, triggering a need to develop and reduce the fluoride content in the ESR flux. The present study aims to develop low-CaF2 alternatives to commercial ESR fluxes without compromising on productivity and the surface quality of the refined ingot. Thus, the modification in chemical composition needs to satisfy properties like electrical resistivity, viscosity and liquidus temperature, essential for efficient ESR operation. Since electrical resistivity and viscosity are highly dependent on the ionic structure of the molten slag, it is important to understand the effect of compositional modification on the structure of the flux. The present study employs Fourier-transform infrared spectroscopy (FT-IR) and Raman spectroscopy to investigate the structural variations in the modified fluxes, especially the effect of changing SiO2 concentration, in comparison with conventional CaF2-rich fluxes. Additionally, thermal analysis (Differential Thermal Analysis (DTA) and Thermogravimetric Analysis (TGA)) has been carried out to characterise the melting behaviour of the fluxes. The findings are compared with simulations carried out using the FactSage™ software, ver 8.3 (GTT Technologies, Aachen, Germany). Simultaneous analysis of liquidus temperature and the structure is expected to help in identifying the practical suitability of modified ESR flux compositions for industrial implementation.

Jun 19, 2024

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 Andrew A. A, Hamilton P. J

Constraints on pore water evolution in the aquifers of a sedimentary basin may be realised through stable isotope analyses of present day waters, and their comparison with water compositions calculated to have been in isotope equilibrium with the products of diagenesis during burial. Integrated with detailed petrographic observations, and thermal, structural and stratigraphic analyses, fluid migration patterns at various stages in a basin's history can be identified. This has important implications for modelling basin hydrology, hydrocarbon distribution, and reservoir quality in the Latrobe Group, Gippsland Basin, and oil-prone successions Elsewhere.

Jan 1, 1992

By L Barrere, J P. Sykes, A Trench, R S. Davies

Western Australia (WA), alongside Brazil, has remained at the forefront of the global seaborne traded iron ore market for over 40 years. Despite this apparent stability and strong market position, WA continues to face strong external international supply-side competition, mainly from Brazil, but also periodically from often marginal, non-traditional sources of iron ore. Additionally, WA iron ore supply has undergone significant decadal change internally, both of an evolutionary (brownfields expansion) and revolutionary nature (major new greenfields projects). Since 2006, a new generation of WA-focused iron ore explorers, developers and producers have emerged.The majors, BHP Billiton and Rio Tinto, have expanded mine production to record levels and the Roy Hill project is now approaching nameplate capacity. Fortescue Metals Group (FMG) is, however, the largest new market entrant of the last decade, delivering upon their vision of becoming the ‘new force in iron ore’. Unlike most of the other new WA market entrants, FMG’s operations are substantive. Most of the other smaller, new WA iron ore miners have struggled during the period of falling prices, though it is worth noting that collectively they have made a material supply-side impact during the price boom – typical of marginal supply. Finally there have been some contributions from new magnetite projects, however, the delivery and economics of these projects have not met expectations.In this paper, we touch briefly upon the key global market changes of the last decade, namely China-driven demand growth and the changes to the pricing mechanisms for iron ores – before reviewing the rise in WA iron ore supply in response to these markets. We finish by focusing on the most significant WA-focused supply-side development of the last decade, the rise of FMG as a major new supplier and the strategic situation that facilitated its rise. The unprecedented China-led rise in iron ore prices felled many traditional barriers to market entry into an oligopolistic industry, allowing many new market entrants (in WA and around the world). However, the downturn in iron ore prices resurrected these barriers to entry, with only FMG (thus far) breaking the entry barrier with significant scale. Difficult corporate decisions have been forced upon the smaller WA iron ore miners who, in some cases, will now struggle to further expand, or indeed continue to operate in the longer run.The changes that have taken place over the last decade of WA iron ore production hold insights for other emergent mineral commodity exports from the state. Successful market entry, even when industry barriers are high, does not always require an immediate low-cost production assumption alongside a strong balance sheet. FMG could see a new market, within an established commodity market, target an appropriate and new product at it, overcome temporarily-felled barriers to entry in infrastructure and finance, then innovate and aggressively cut costs ensuring it was behind the barriers to entry when they rose again after the price boom.CITATION:Barrere, L, Trench, A, Sykes, J P and Davies, R S, 2017. New generation Western Australian iron ore – strategic insights far beyond the Pilbara?, in Proceedings Iron Ore 2017, pp 375–386 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 24, 2017