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"Recognising that the mining industry is wedded to the break-even cut-off grade rather than a cut-off grade that optimises value, the author examines some perils and pitfalls in the use of break-even grades that lead to what the author calls ‘negatively geared ore reserves’.Negatively geared ore reserves occur when a portion of the ore reserves actually has a negative value and is effectively being subsidised by the more profitable portion of the ore reserves. This situation is generally difficult to detect with the level of information available to the public investor. The ore reserves can still be quite profitable in total, but now possess a level of risk that may not be appreciated.The risk profile (financial risk) of a negatively geared ore reserve is far greater than for a non-negatively geared ore reserve. Like a negatively geared investment property in a falling property market (for readers familiar with the Australian tax minimisation investment strategy), when the price of a commodity falls, a company that possesses a negatively geared ore reserve loses value at a magnified rate relative to a company that has a neutral or positively geared ore reserve. In the extreme case of a major commodity price reduction, as happened with the gold price in mid-2013, the negatively geared ore reserve can easily become negative value in total, not just in part.The negatively geared ore reserve is sometimes intentional – for instance in order to increase published ore reserve tonnages and meet the CEO’s key performance indicators – but is also often unintentional, resulting from various errors in the break-even calculation. Common errors in calculating a break-even grade include using fixed metallurgical recoveries, not including allowances for ideal laboratory versus real plant results, ignoring available operational data and using modal rather than mean parameter values in cost and performance calculations.This paper examines a common value distribution profile in many ore reserves and the effect of common break-even grade errors on this profile.CITATION:Poniewierski, J, 2016. Negatively geared ore reserves – a major peril of the break-even cut-off grade, in Proceedings Project Evaluation 2016, pp 236–247 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By M C. Goode

The use of electrical or electronic safety systems to protect personnel, and the engineering tasks associated with the design, manufacture and maintenance of these systems are referred to using the term ‘functional safety’. In the past ten years, the use of such systems has transitioned from its traditional base, in oil and gas major hazard facilities, to being a part of most large mining and materials handling projects. In particular, functional safety is rapidly becoming a significant component of Australian iron ore projects, typically in the form of emergency stops, remote isolation, drive through interlock, robot cell entry or mobile machine anti-collision systems. While these types of systems have been in use in iron ore for a long time, functional safety standards (eg AS61508, AS62061, AS4024.1503) require more rigourous demonstration of the level of risk reduction provided by the systems.The early engineering project development phases require a number of key decisions to be made around functional safety implementation. The decisions made at this point in a project will go on to dictate the required types of risk assessment and analysis, equipment selection, sizing of substations, and training and maintenance requirements for owners. For project teams that are unfamiliar with functional safety, or inexperienced in its application, an incorrect decision or failure to understand the requirements of the chosen standard can lead to a failure to meet contract requirements, as well as major cost and schedule overruns.This paper examines the implications of functional safety on early engineering studies, focusing on the following questions: How does a designer or company determine what standard is best suited to their project? What key aspects of functional safety design need to be considered during project development? And finally, how can the impact of functional safety to the project be minimised?CITATION:Goode, M C, 2017. Functional safety impacts on study stages of major projects, in Proceedings Iron Ore 2017, pp 347–352 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 24, 2017

By A K. B Chigwada

Mining organisations grapple with the same problems year after year, wasting incredible amounts of time and money. According to estimates from the International Labour Organization (ILO), over one million work-related deaths occur annually, and hundreds of millions of workers suffer from workplace accidents and occupational exposure to hazardous substances worldwide. Many accident reports cite human failure as a primary cause (Busse and Johnson, 1998). The workers at the Bhopal chemical plant pumped methyl isocyanate into a leaking tank (Morehouse and Subramaniam, 1986). On 3 December 1984, more than 40 tons of methyl isocyanate gas leaked from a pesticide plant in Bhopal, India, immediately killing at least 3800 people and causing significant morbidity and premature death for many thousands more. The company involved in what became the worst industrial accident in history immediately tried to dissociate itself from legal responsibility (Broughton, 2005). Australia is not spared from safety problems either (Lucas, 2022). The ILO Convention 176 (1995) as a response provides that national law should inter alia provide for the supervision of safety and health in mines; the inspection of mines by designated inspectors of the competent authority; the procedures for reporting and investigating of fatal and serious accidents; the compilation and publication of statistics on accidents, occupational diseases and dangerous occurrences; the competent authority to suspend or restrict mining activities on safety and health grounds until conditions giving rise to the suspension are addressed; and worker consultation on matters related to safety and health in mines. This has assisted in getting enough data to define the magnitude of the problem to the mining sector.

Apr 16, 2024

By R Brown

The Singapore Land Transport Authority Contract C917A is for the design, construction and completion of all outstanding works under the original Contract 917, including taking over the design and construction responsibility for the works carried out by previous contractor. Construction works connect the bored tunnels between the stations at King Albert Park and Sixth Avenue on the Downtown Line two in Singapore.The original contractor became insolvent leaving the works incomplete. On 29 August 2013 McConnell Dowell were awarded the completion contract following a fast-tracked tender process. The completion contract required a quick start and therefore the recruitment of some of the original workforce. A large majority of the original workforce was from Malaysia, Indonesia, China, Philippines, Bangladesh, India and Thailand. In order to ensure that the safety standards were upheld, and that the new workforce embraced a safety culture, a behaviour based safety (BBS) approach was implemented.The BBS approach was implemented to overcome the existing poor cultural safety behaviours, and to ensure that high standards and expectations for safety were implemented. This ensured that the workforce were comfortable in identifying hazards, avoiding shortcuts, and changing poor safety behaviours.This article outlines how a BBS program was delivered on the C917A project, containing defined goals, communication tools, and assessment and feedback models.CITATION:Brown, R, 2014. Behaviour-based safety with a foreign-based workforce, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 65–68 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

Two years ago I was sitting in a big lecture theatre at the School of Mines in Kalgoorlie at the annual New LeadersÆ Conference listening to a guy tell us all how much he loved his job, travelling the country ælegallyÆ blowing stuff up à and getting paid to do it. I would have paid to see and do the things he spoke of à now IÆm that guy. From finishing a mining engineering degree at the University of Ballarat, through the job hunt, to firing environmental blasts in Tassie and designing and implementing construction blasts in the middle of the Gold Coast. My name is Rohan Stevens and IÆm a blast-o-holic. While the æjob huntÆ we all embark on toward the end of our degrees is a stressful time, itÆs also very exciting in the current climate. There are a number of things I have learnt through both my hunt for the job that best suited me and working for the worldÆs largest explosives manufacturer. If at least you donÆt benefit from my learnings IÆm certain you will enjoy hearing about (and viewing) some of the work I have had the opportunity to be involved with over the last 18 months with Orica Mining Services.

Jan 1, 2008

By H Esterhuizen, W Hartman

Rockfalls or significant deterioration of mine openings can have significant safety and financial impacts for mining operations. The failure of drives in underground mines sometimes highlight deficiencies in the mine risk management systems in detecting geotechnical hazards and to prevent events that can have significant impact. Consequences from these failures includes fatalities, injuries, loss of revenue, additional cost, and potentially a loss in Ore Reserves. Where the impacts are severe, it also affects families and communities linked to the operation. The assessment of underground excavations requires consideration of the full range and spectrum of geotechnical hazards, design aspects, ground support, layouts and sequences. Where the assessment of these are insufficient or incorrect, it can result in drive failures. Care must be taken that meeting production targets and personnel pressures do not result in a situation where production take preference over a proper risk-based assessment of the drives to be mined. The risk management approach is now widely accepted in the mining industry for the control and management of risks in underground mines. Codes of Practices (COP’s), Ground Control Management Plans (GCMP), Principal Hazard Management Plans (PHMP’s) and technical guidance documents has become the norm for describing the mines main hazards, risk levels and intimating controls for safe passage of vehicles and mine personnel. However, where there is a disconnect between these documents and what is actually being done at the mine site, the COP’s and/or Management Plans become ineffective (or vice versa). This disconnect may occur due to the actual content of these documents, a lack of resources, or a lack of understanding about the implementation. There is therefore a need for sites to have a documented and implemented risk-based approach for assessing underground mine development. This approach or system needs to identify all hazards and other factors affecting mine development stability early on in the design process, and outline the risk classification and controls required. This paper presents an amalgamation and modification of previous processes for a Geotechnical Risk Management System for Underground Mine Development. CITATION:Hartman, W and Esterhuizen, H, 2018. A geotechnical risk assessment tool for underground mine drives, in Proceedings The Fourth Australasian Ground Control in Mining Conference (AusRock), pp 235–253 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 30, 2018

The words ""Uncertainty"" and ""Risk"" pervade every discussion about mining exploration and investment. Perhaps these terms are subjectively understood by industry professionals, but objective portrayal of these concepts outside the industry is a woefully undeveloped science. This paper addresses current industry understanding and practice regarding quantitative risk assessment techniques, and provides examples of the application of three of these techniques. Probabilistic techniques for financial risk assessment are valuable adjuncts to conventional financial analysis, and address a range of issues not assessable by any other means. The value of whole-of-project probabilistic risk assessment is currently debatable for decision-making purposes, but is seen as important as a mechanism to focus attention to the critical issues that ultimately impact on project success. The dissection of project capital into risk and non-risk components provides valuable insights into risk characteristics not readily quantifiable in any other way. This technique also provides a framework for more objective ""what if?"" scenario evaluation and for the capital structure of resource projects. Finally, mechanisms for the valuation of undeveloped reserves are examined, and guidelines suggested. The importance of reliability in production cost estimates is highlighted and the impact of early development on reserve valuations is discussed. The importance of economics throughout all stages of the evaluation process is fundamental.

Jan 1, 1994

By A von Johannides, G J. van Hout, L F

In the past various systems have been used to plan the extraction of ore from block cave operations. These systems have varied from rather sophisticated models with empirical ægravity flowÆ rules applied to the very rudimentary models where only the recorded mined tonnageÆs have been accounted for against the available resource. The normal requirement of these models has been to only plan the movement of ground through the drawpoints. Little cognisance has been taken of the other parameters that affect the total mining operations. The intended purpose of the linear program planning system is to not only include the management, resource availability and geotechnical constraints, but to also include the mining rules. The paper will discuss the various constraints that have been considered, and attempt to illustrate where the system better serves the production system than previous ones. A brief technical discussion on the linear programming system is included.

Jan 1, 2000

By A Lyon

The minerals industry, as many other industries, has a wealth of indicators and a thriving æindustryÆ in their development, measurement and reporting. It is natural for this to occur for a new endeavour. However, perhaps it is time for the community concerned with minerals industry indicators to ask whether we have achieved a certain maturation whereby proliferation of indicators may be replaced by a more disciplined and constrained approach. In many natural and engineered systems, thermodynamics provides well-understood and tested constraints. Indicators that are uninterpretable in this framework are not considered acceptable. This paper provides initial evidence that such a formalism may be possible for mine sustainability. The formalism developed does not claim to have the rigour of thermodynamics. However, it does provide a first step towards formalising selection of indicators on the basis of their true comprehensibility. A set of simple equations is developed that represent the conventional five capitals (actually we use six because we separate renewable and non-renewable natural capital) and how they are linked. This is coded into a simulation model. The base equations are then used to develop a system level indicator of sustainability performance, which is asserted to be a reflection of the mineÆs reputation. We define a least sustainable state, termed æmaximum revenue mining (MRM)Æ in the system and define the degree of system sustainability as how far the system is from the MRM. We then introduce a simple mechanism whereby different actors can express differing views on the emphasis for the distance from MRM. Sustainability thereby becomes a non-unique thing that is defined by a distance from MRM and a set of preferences across the capitals.

Jan 1, 2009

By C L Humphrey

Biological monitoring programs for environmental protection require techniques that will provide both early detection of possible adverse effects, and assessment of the ecological significance of these effects. Monitoring techniques must include responses sensitive to the impact, that can be subjected to rigorous statistical analysis and for which statistical power is high. Such issues in baseline research of 'what and how to measure?' and 'for how long?' have been the focus of a program being developed to monitor and assess effects of mining operations on the effectively pristine, freshwater ecosystems of the Alligator Rivers Region (ARR) in tropical northern Australia. Application of the BACIP design, utilising a form of temporal replication, to univariate data (single species) and multivariate (community) data is described. For new ventures in Australia (such as mining), monitoring programs should be designed to establish with high probability that an impact on the ecosystem no greater than a prescribed amount has gone undetected - as opposed to simply allowing development to continue as long as 'proof' of impact is not available. Such a precautionary approach represents a shifting of the 'burden of proof' and would require with the BACIP design, a minimum number of baseline years in order to achieve some desired level of statistical power in a test for impact. Power analyses conducted on two to five years (depending upon the technique) of baseline data from streams of the ARR indicate that the BACIP design would not impose developmental constraints on mining and that a policy of reversal of the burden of proof would provide the cornerstone required for managing such development in an ecologically sustainable manner.

Jan 1, 1994

Following the Moura No 2 Wardens Court of Inquiry and subsequent changes to the Queensland Mining Legislation there is a requirement in Queensland coal mines for: a person with the recognised competencies to be appointed at each underground coal mine to the position Ventilation Officer; and the person is directly responsible for the implementation of the mine ventilation system and for the establishment of effective standards of ventilation for the mine. The Regulations require that an underground mine must have principal hazard management plans that provide for at the least the following: emergency response, gas management, methane drainage, mine ventilation, spontaneous combustion, and strata control. Other than strata control all the plans require the ventilation officer to have roles and responsibilities to develop, control, monitor and undertake actions in relation to these plans.There are also another 34 Regulations that either directly or indirectly requires the Ventilation Officer to take actions.The purpose of this paper is to outline the information that the regulators look for in sealing plans and the actions the regulators will take if the sealing does not go to plan (TARPs being exceeded).

Jan 1, 2005

By V Rodríguez, M Hormaza, R J. Romañach, C Pinzón-de la Rosa

The authors have presented their ideas for developing a powder sampling device in the I-Corps™ program sponsored by the National Science Foundation (NSF). This is an intensive customer discovery program developed to increase the economic impact of the research sponsored by NSF.The I-Corps™ program requires performing at least 100 interviews with potential customers in various industries. These interviews are essential to establish the need for a particular product or solution, and identify potential commercialisation partners and competition. The interviews have revealed the absence of Theory of Sampling (TOS) principles in many companies. The interviews are designed to identify the difficulties associated with current sampling practices that do not meet TOS principles.The I-Corps™ program is a significant challenge for scientists who often avoid discussing a concept in fear of losing their research idea. The program teaches how to obtain information without releasing the important intellectual property related to a product development idea. The I-Corps™ methods have been used to discover the prevailing ideas on sampling in various industries.I-Corps™ also teaches how to present ideas to investors; another significant challenge for a scientist. We are currently learning to present sampling and TOS to investors and business development experts, and will share some of these experiences.CITATION:Pinzón-de la Rosa, C, Rodríguez, V, Hormaza, M and Romañach, R J, 2017. Theory of Sampling meets the National Science Foundation I-Corps™ program, in Proceedings Eighth World Conference on Sampling and Blending , pp 351–354 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2017

By L Chaffey, M Buckland

The minerals industry has enormous potential to positively contribute to sustainable development and many leading companies have concluded that their long-term success is directly linked to their ability to leave a lasting positive legacy. While there are many examples of success, there have been failures as well and much work has been done in recent years to define the role of the minerals industry in sustainable development and identify the key elements for success. In the past, our sector could point to the taxes and royalties it paid, the exports it generated and employment it created and felt confident that its contribution would be recognised and duly acknowledged. This is no longer the case. Critics of the industry have highlighted resource-rich countries that have failed to capitalise on their resource wealth and have arguably lower standards of living than their resource-poor peers û the æresource curseÆ hypothesis. Recent research has done much to clarify the factors that contribute to a countryÆs success or failure and all stakeholders in the industry now need to include these learnings in their approaches going forward. We know that our long-term success relies on embedding a company- wide approach to sustainable development into all aspects of our business operations. In this paper we highlight BHP BillitonÆs experience in the development and implementation of policies and systems designed to enhance our contribution to sustainable development. We detail the business drivers for excellence in this area and the key external codes and initiatives that have shaped our approach. The values-based BHP Billiton Charter, Sustainable Development Policy and associated Health, Safety, Environment and Community (HSEC) Management Standards are central to our approach. Implementation is reviewed through our HSEC audit program. One area in which we have placed particular emphasis is our approach to community development. BHP Billiton has a corporate target to contribute one per cent of its pre-tax profit on a three year rolling average to voluntary community programs. As our profit stream has increased with the minerals boom this is approaching an A$100 million commitment. In our paper we detail how we are working to ensure we maximise the value of this contribution for our communities and our shareholders.

Jan 1, 2006

By D P. Murphy, R F. Dewhirst

Traditionally closure has been seen by the Resource sector solely as a green or an environmental issue, focused primarily on the requirement to rehabilitate the site following cessation of production activities. In addition to operational, maintenance and production aspects of processing plant design, future design teams will need to take a more holistic view and consider an increasing number of sustainability issues including safety in design and cleaner production as well as closure itself. Sustainability principles being adopted by industry such as the Minerals Council of AustraliaÆs Enduring Value Framework are now broadening our understanding of closure. While issues around the closure of tailings dams and associated infrastructure have been widely studied, few investigations have looked closely at the implications of closure on the design of minerals processing plants. It is likely that design teams may be able to make a significant contribution to meeting industry objectives by adopting innovative designs which, in addition to meeting production objectives, deliver sustainable and cost effective plant closure outcomes. This presentation explores the opportunity for innovative design of mineral processing plants through the assessment of alternative closure objectives. This assessment specifically looks at current industry standards and statutory requirements, as well as potential risks and opportunities associated with each objective. Alternative design strategies to meet these objectives are discussed.

Jan 1, 2006

This paper puts the view that, for one gold deposit in Victoria at least, the Australasian Code for the Reporting of Identified Mineral Resources is severely deficient. The author questions whether or not the Code constrains the proper dissemination of information relevant to resource valuation. The author offers a view about the estimation of inferred resources, and provides data believed pertinent to the proper valuation of Ballarat Goldfields Ltd Ballarat East Project.

Jan 1, 1990

By M Sparrow

The Victoria Park Tunnel project is an inner-city alliance project in central Auckland, New Zealand. The existing two-directional viaduct will be modified to single-direction flow, and a new northbound 440 m cut and cover tunnel will be constructed beneath Victoria Park. Three-dimensional (3D) visualisation media were used to communicate key design innovations to stakeholders and the general public. The 3D visual material has proven a useful tool for informing motorists of a new safety barrier method adopted for traffic management.This presentation will explain how 3D visualisation was incorporated in the project and will showcase the 3D visualisation media created for the project.

Mar 8, 2011

By R Symes

The Fosterville Goldmine in Victoria Australia employs the BIOX« Process to liberate gold from its sulfidic flotation concentrate through bacterial oxidation. Gold occurrence is primarily as submicron particles in pyrite and arsenopyrite and has been described as being in æsolid solutionÆ and therefore not amenable to direct cyanidation. Once liberated by the oxidation process, the gold is then available for cyanide leaching. During the oxidation process it has been found that a portion of the liberated gold becomes suspended in the liquid phase in what appears to be a colloidal state. This liquid becomes a waste stream during washing of the oxidised solids and the suspended gold is therefore lost. A method was previously developed using an addition of quebracho tannin to significantly reduce this loss by formation of an iron-tannin precipitate which captures the gold which then reports to the cyanide leach circuit with the oxidised concentrate solids onto which it is adsorbed.This paper discusses the development and plant trial of a second processing step to further enhance gold recovery by use of flotation tailings essentially as a source of extra surface area to capture residual tannin-iron precipitate and its associated gold not recovered in the first step.CITATION:Symes, R, 2012. Recovery of colloidal gold from oxidised concentrate wash liquor - Further improvement, in Proceedings 11th AusIMM Mill OperatorsÆ Conference, pp 383-388 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 29, 2012

Mr GEPP said: "He proposed at the outset to draw attention to figures dealing with the population of the countries adjacent to Australia for the purpose of comparison with the population of the Commonwealth. He would deal more particularly with the areas of land surrounding the Pacific and Indian Oceans. Korea and Japan had a population of 18,000,000 ; China, 437,000,000 ; Persia, 9,000,000 ; Arabia, 5,000,000; South Africa, 129,000,000; Madagascar, 3,500,000 ; India, 251,000,000; Siam, Indo-China, and so forth, 16,225,000; Federated Malay States, 3,225,000; and, very significantly, Java, only four and three quarter days from Fremantle, over 50,000,000. From the map displayed an idea of the comparative areas of the countries mentioned and Australia could be gained. It was rather amazing that Australia, with its great potentialities, had only about 5,150,000 people. New Guinea had over 750,000 people; Hawaii, a mere speck, 250,000; New Zealand, 1,300,000; North America, 130,000,000; Central America, over 15,500,000; and South America, over 65,000,000. Colombo was only six days from Fremantle, and it was only nine days from Capetown to Albany, and eight days from Albany to Hobart. Proceeding, Mr. Gepp said "It was in 1911 and 1912 that I had the good fortune to spend nearly twelve months in Europe, and during the course of my work in England and Germany to have the oppprtunity of studying both the economical and political systems in some detail... I was in Berlin at the time of the visit of Lord Haldane, when an effort was made by the British Government to arrive at some under...

Jan 1, 1923

By D A. Vogel

"Sampling may be mandatory for safety or environmental reasons. It may be because the value of a sale needs to be determined or to provide important data for investments. Whatever the reason, an incorrect sample will come at a risk. Only the person that relies on sampling data can imagine what the potential cost of such risk is.Sampling itself has a cost too; the direct cost of a quality control department and indirect cost for interrupting a process, such as stopping a conveyor belt during loading. If all material is the same then only one small sample is enough. But if all the material is different, then a very large sample must be tested; in the conveyor belt scenario it must be stopped very frequently and the associated cost will be high.A good sampling plan finds the proper balance between risk and cost. A good sample must be small enough to handle yet large enough to be representative for what information is required. All good samples have three things in common: there was proper access to the material the sampling tool allowed equal probability of particles being selected nothing was disregarded, everything was included.This too is the core of Gy’s ideal sampling scenario, where all particles have the same probability of being selected and included in the sample. There is risk of bias when part of a lot is excluded from the sample. Extra care is needed when sampling particularly heterogeneous, segregated or layered materials. The sampling tool should never systematically leave out a portion; it shall not push aside large or hard particles. Wet samples shall not stick to the sampling tool. This extends to sample preparation too when reducing particle size and dividing the sample in the process.CITATION:Vogel, D A, 2017. Access, select, include – a review of the commercial sampling of traded bulk commodities in the context of Gy’s Theory of Sampling, in Proceedings Eighth World Conference on Sampling and Blending, pp 367–378 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

May 9, 2017

By J Canterford

Although we have access to a wide range of sophisticated process design and improvement tools in combination with a significant range of case studies, the mineral resource industry still manages to be plagued by the negative publicity surrounding operating plant failures because they were neither smart nor safe, together with proposed projects that fail at the first or second hurdle. The general public and the finance industry are generally totally uniformed about projects that ramp-up to name plate capacity on time and on budget and even more so when ahead of schedule and under budget. As the saying goes, good news does not cut the mustard.The following is a summary of the author’s sometimes jaundiced view about why metallurgical plants do not live up to their technical and commercial expectations. In no way should the summary be construed as a negative reflection on the skills of the metallurgical profession. Rather, it is to be taken as a positive acknowledgement of those skills and is intended to highlight some of the major considerations that need to be assessed as a potential project transforms into a sustainable technical and commercial reality.While a considerable portion of the summary is directed at developing hydrometallurgical flowsheets, the general principles are equally important to all aspects of extractive metallurgy.For convenience, the summary covers the following five basic discussion points – project, people, process, patents and politicians.

Aug 8, 2011