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By H von Blottnitz, J L. Broadhurst

Eco-efficiency has been proposed by the World Business Council on Sustainable Development as an environmental performance indicator framework that contributes to sustainability by assisting corporate decision makers improve the environmental performance of their operations and processes, while also extracting additional economic value. Given that the recent engagement of the minerals industry with sustainability has highlighted the need for requisite tools and methodologies, it is therefore of interest to assess whether eco-efficiency indicators can drive sustainability performance improvement during process design within the minerals industry. Previous work indicates that the choice of sustainability performance indicators to be used for decision making needs to be governed by the decision context; ie the performance indicators need to be fit-for-purpose. Here, the strengths and weaknesses of eco-efficiency indicators are analysed using case studies. First, a more rigorous definition of eco-efficiency indicators for the minerals industry is proposed based on indicators currently offered in the literature. Two case studies are then selected to reflect typical decision situations encountered within minerals process design. For each case study, eco-efficiency indicators are computed and are compared to more traditional graphical representations of the economic and environmental performance of process design alternatives considered. The sensitivity of these indicators to various process design parameters is also investigated. Results confirm that the meaningful application of eco-efficiency indicators is strongly dependent on the decision context in which the process data is generated. Results also show that eco-efficiency indicators can be related to technical process design parameters to allow for richer communication of performance information for various decision trade-offs; however, in some cases, graphical approaches that provide more insights into the environmental-financial trade-offs should be preferred. The research thus contributes to guiding the selection of the appropriate tools for more environmentally sustainable design of minerals beneficiation processes.

Jan 1, 2009

By A Chandra, P Guj

Only a few complex real options can be valued using closed-form equations, such as the Black and Scholes formula, because these algorithms are restrictive and prevent the construction of practical project evaluation models. Although a binomial lattice method paired with the ærisk-neutral probabilityÆ provides an easier and flexible modelling of exploration and mining projects, it has limitations when projects are complex, long-lived and influenced by the interplay of various market and private uncertainties. In order to overcome these limitations, modern decision tree software using dynamic programming capability can be used for real option valuations. This is a powerful computational tool in which the impact of various sources of uncertainties can be differentiated, so that the optimal decision path can be explicitly displayed visually. There has been significant academic controversy surrounding whether different real option (RO) valuation methods would lead to different real option values (ROV). This paper, using a realistic copper mining example, demonstrates that as long as the same degree of subjectivity and consistency are used in different real option valuation methods, they yield the same result. This conclusion is valid irrespective of whether the cash flow volatility generated by various sources of uncertainties is handled in an aggregated or in an explicit and differentiated manner. This paper compares two choices for an investor either to æbuy now and developÆ a project or to enter into a ætwo-year option to purchaseÆ after the proponents have developed it. It also shows how significantly different net after-tax operating cash flows may be generated by these different choices on the same underlying asset represented by the project. This is due to the difference in the amount and timing of the relevant capital investments affecting the depreciation and amortisation charges and as a consequence, the income tax paid. CITATION:Guj, P and Chandra, A, 2012. Real option valuation of mineral exploration/mining projects using decision trees - Differentiating market risk from private risk, in Proceedings Project Evaluation 2012 , pp 177-188 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

By D Giles, A C. Bailey

In the first 20 years of the 21st century, just over 20 per cent of Australian mineral exploration expenditure was dedicated to iron ore, totalling >A$8 billion and >30 million metres of drilling (Australian Bureau of Statistics, 2021). Improvements in the cost, efficiency, safety, reliability and data quality of drilling have the potential to deliver significant productivity improvements, increasing the probability of discovery and reducing the time from discovery to mining. Currently in its third year of research, Mineral Exploration Cooperative Research Centre (MinEx CRC) is focused on a new set of exploration tools and new ways to deploy those tools which recognise the fundamental importance of collecting quantity and quality data from the subsurface, to enable exploration success for all minerals, including iron ore. MinEx CRC is focused on developing more productive, safer and environmentally friendly drilling methods to discover and drill-out deposits. This includes pioneering work on Coil Tube (CT) drilling technology and innovations in Diamond and Reverse Circulation (RC) drilling techniques aimed at improved drilling optimisation and automation. In parallel, MinEx is developing new technologies for collecting data whilst drilling. This is being undertaken in four separate industry-led projects utilising geophysical, seismic, downhole analytical and 3-dimensional (3D) modelling improvements. A National Drilling Initiative (NDI) is also underway, with two drilling programs completed in 2020. The NDI is a world-first collaboration of Geological Surveys, researchers and industry, which undertakes drilling in under-explored areas of potential mineral wealth in Australia and provides a test-bed for new mineral exploration technologies.

Nov 8, 2021

By S Harrison

Work health and safety duties around Australia include duties to manage psychosocial health and safety (mental health) of workers engaged by businesses or undertakings and of other persons impacted by the operations of the business or undertaking. Persons conducting a businesses or undertakings must develop systems of work and policies and procedures for ensuring, so far as is reasonably practicable, the safety and health of workers and other persons. Officers have a duty to exercise due diligence and to ensure effective systems are developed, implemented and resourced. The developed systems will only be effective with worker’s co-operation and engagement. The duties placed on workers by work health and safety laws are an important part of the safety matrix of obligations. Supervisors and Leaders are workers and they play a critical role in delivering health and safety outcomes. To deliver these health and safety outcomes with respect to psychosocial safety Supervisors and Leaders need to understand their obligations and have a framework to use to assist them in understanding what workers require and what steps need to be taken to meet their duties. They also need to take steps to assist those workers that they supervise to meet their duties.

Apr 16, 2024

By Bucknell WR, Clarke DE

The paper provides a company's view of the relative merits of various valuation methods and outlines the basic approach it takes to the valuation of an exploration property. The negotiating process and methods of acquiring an interest in an exploration property is discussed The valuation methods discussed are: 1. Exploration Expenditure. 2. Real Estate. 3. Joint Venture Terms. 4. Rule of Thumb. 5. Net Present Value - Discounted Cash Flow. 6. Geoengineering.

Jan 1, 1994

By J St George

Much of AucklandÆs transport infrastructure has been developed on surface with little or no consideration of underground options. Current and planned transportation routes are now facing high costs due to land values and increasing environmental resistance to surface development. The option of utilising underground space becomes a feasible investment decision for these links as well as being the only option to develop the rail network within the inner city area. Transportation tunnels offer a quieter, more energy efficient means of getting around with minimal impacts on the surface environment. One of the major impediments to tunnelling is the high construction cost, which is partly related to the risks of encountering unexpected ground conditions and/or the possibility of causing surface ground deformations which could damage structures. The geology of Auckland has had substantial investigation through various studies and projects. The sediments of the East Coast Bays Formation (ECBF) underlie most of the Auckland urban area. It is classified as a soft rock and is a suitable material to tunnel through using either a tunnel boring machine or a roadheader. This paper reviews the limited amount of tunnelling completed in the urban Auckland area, together with the international advancements that have been made in the tunnelling industry. From the known features of the local geology and the problems encountered historically, the likely risks of tunnelling in Auckland are presented and ways in which those risks could be reduced and managed, are discussed. In addition, contractual arrangements between client and contractor are assessed with respect to complicated projects (such as tunnelling), so that the risks can be managed to create efficient infrastructure routes with reduced costs.

Jan 1, 2008

By T Berryman, C Adams, L Griesel, C Buxton

The Kalgoorlie Consolidated Gold Mines (KCGM) schedule model is used for short- to medium-term planning and scheduling at the Fimiston Open Pit Mine (the Superpit). The model bridges the gap between grade control models, which are generated one to seven days prior to mining, and the annual Resource and Reserve model update that is used for budget and life-of-mine plans. The schedule model uses close-spaced grade control data (up to 20 000 m drilled each month) as well as resource definition drilling to estimate production volumes three to six months ahead of current mining. From this, a rolling 12 week mining and processing schedule is generated on a monthly basis. As the KCGM operation is mill and sulfur constrained, the schedule model needs to be an accurate predictor of ounces as well as tonnes, gold and sulfur grades. The process must also be time efficient in order to meet monthly planning and reporting deadlines. Due to the large amount of new data generated each month, model updates using conventional interpretation and estimation techniques have proven to be impractical and too time consuming. This paper will examine the evolution of the Superpit schedule model process over time, recent improvements and the effect of different model outcomes on short- and medium-term mine planning.CITATION:Griesel, L, Buxton, C, Adams, C and Berryman, T, 2014. The superpit schedule model – A time-efficient data-driven estimation for short- and medium-term planning, in Proceedings Ninth International Mining Geology Conference 2014 , pp 397–410 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 18, 2014

By M Grigorescu, J H. Hodgkinson, M Khanal

The mining industry often needs to operate in remote or climatically harsh locations. The industry has recently been forced to deal with extreme conditions including floods, heatwaves and droughts. As these are becoming progressively frequent occurrences, mines typically build ‘downtime’ into production schedules and expect to incur costs to manage the various risks arising from climate extremes. Importantly, many environmental conditions are becoming more extreme and consequently, risk management based on past data can become increasingly ineffective. Market and shareholder demand for fewer interruptions are another pressure on mines to avoid prolonged or frequent downtime. Hence, adaptation to climate is becoming an important strategic move for many companies, many of whom are using future climate scenarios and alternative risk evaluations.We present here a method that uses commonly available mine site data to assist decision-making for reducing vulnerability to sudden flood. The method, ‘climate-related adaptation from terrain evaluation results’ (CRATER), identifies a mine’s flood ‘hot-spots’ and presents them as a ‘traffic lights’ warning map. The process then requires a failure analysis process such as fault-tree analysis to identify both the cause of possible failures and a range of possible failure-avoidance adaptations. In the final stage, management can assess the most suitable option for the mine, based on the availability of capital such as time, facilities, labour and money in addition to social acceptability of the options. CRATER has been tested in an open cut mine environment and is now being further developed to identify how subsidence over underground mines may impact on flooding and ponding over the mining life cycle (CRATER II). Further work is continuing to test larger and more complex mine landscapes to deliver a method to extract more knowledge from existing data.CITATION:Hodgkinson, J H, Grigorescu, M and Khanal, M, 2016. Reducing mine site extreme rainfall vulnerability using climate-related adaptation from terrain evaluation results, in Proceedings International Mine Management Conference, pp 187-200 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By U Singh

This paper presents the evolution of the studies and strategic plans to extend the life of operations at the Savage River iron ore project in north-western Tasmania. The current Life-of-Mine (LOM) plan for the Savage River operations is based on a series of open pits. Drilling has confirmed high-grade extensions of the magnetite resource at depths that exceed practical limits for open pit mining. Grange Resources Limited, the owner of the operation, is investigating underground options – not only to extend the LOM plan but also to maintain peak production at a reduced operating cost while reducing greenhouse gas emissions into the future. What makes this project unique is that it requires introducing a productive and cost-effective mining method to exploit a challenging geotechnical and geometrical orebody in an area of high rainfall. To support the study efforts, the development of an exploration decline, underground drilling programs, and an exploratory drive excavated into the orebody for geotechnical investigation was key to providing the necessary data for a pre-feasibility study (PFS). This paper describes the pragmatic approach and processes to developing the underground mining options study through data collection and then integrating these options into the open pit plans to optimise an overall strategic plan for the Savage River operations. The learnings for operators from this experience are how the technical and pragmatic approaches were aligned to develop the strategic plans, and the importance of timely investment in gathering the necessary data.

Mar 29, 2023

By R Berry

This paper looks at two ways to estimate the bulk mineralogy of the rocks for assay intervals. The aim is to find an efficient indicator of the most common minerals in the rock. Phase (modal) analysis has traditionally been done using visual methods such as point counting and image analysis. A modern version of this process is the X-ray point counting routine using the SEM-EDS based software. These methods are too slow and expensive for routine analysis of bulk sample mineralogy at the normal assay spacing.Two sources of data were considered that provide information that can be used to determine the mineral abundance in assay samples. The most widely applied method is (semi-) quantitative X-ray diffraction (QXRD). The QXRD method is most applicable to major minerals and has limited application to minerals at low abundance. The nominal detection limit is 0.5 per cent. Values below five per cent have large errors. A second, less common, method is calculation of mineralogy from chemical assay data. Conversion of chemical analyses to mineralogical analyses depends on the unique chemical composition of each mineral. Elements only found in one mineral are easily accounted for, but many compositions are ambiguous. Deciding on the actual mineralogy is not simple. Recalculation of mineral mode from chemical analyses is more accurate than QXRD when the correct minerals, and mineral compositions, are known.Where only a few QXRD analyses are available they can be used to setup a protocol for calculation of mineralogy from assay data. Linear programming works well in this environment. The best results are obtained when both H2O and CO2 are directly measured. Loss-on-ignition (LOI) should be included if these are not available.Where both QXRD and chemical analysis are available for all samples, the best results are obtained using the least squared method to merge the data sets assuming QXRD has much higher analytical errors than chemical assays. The combined method provides more robust results because the high abundance minerals are controlled by the QXRD measurements while the chemical assays improve the precision for low abundance minerals

Sep 5, 2011

By M Forbes, R Jeuken

Brownfields geoscience measurement such as drilling and surface geophysics can be costly and it is often difficult to weigh the cost of data collection and processing against the value it unlocks at the time of extraction. This makes it difficult to prioritise geoscience expenditure and find the optimum intensity of geoscience activity across competing assets. There are multiple options for managing resource uncertainty and spatial variability through mine planning and resource engineering such as varying marketing strategy, adjusting stockpile or other infrastructure design and product blending. Consideration of these alongside increased data collection further complicates finding a comparable value of geoscience programs to determine the right blend of geoscience measurement and engineering controls. Concepts similar to Value of Information (VOI) analysis which is applied to strategic planning can be used to estimate the value of geoscience measurement and pit sequencing at tactical planning and operational timescales. This involves the quantification of resource uncertainty and prediction of how it will affect resource extraction. This paper outlines this process and demonstrates its use to prioritise geoscience at BHP Coal Assets. The value of infill drill programs in enabling operational stability is quantified and compared the value of engineering controls like increased stockpile capacity. This study supports that idea that the application of VOI methods to bulk mining at tactical time horizons has potential to inform geoscience planning and resource engineering not just separately, but as part of a unified strategy for managing resource uncertainty.

Mar 22, 2022

The long-term outlook Tor Australla's traditional mining products is for flat demand and continuing low prices. This has come about because of three far-reaching changes since earlier boom days: 1. Continuing declines in intensity of usage of basic mine products; 2. The failure of newer western and third world developing countries to realise growth expectations; and 3. Continued production pressure from third world countries (and first-world primary producers) in an effort to earn foreign exchange and rectify trade balances. These trends have led to a general situation of excess supply and weak demand. In this environment, the prerequisites for survival in the mining sector are first-class mines, modern and efficient production methods, low unit costs, aggressive marketing, and products with reasonable operating margins. Many of Australia's mines meet these prerequisites. Following the A$ depreciation and widespread unit cost reductions, most of these mines will be moderately profitable at current depressed commodity prices. They are well placed to benefit from price rises if these eventuate. A new generation of mines is concentrating on a more profitable product range (gold, diamonds, uranium, mineral sands). Australia's balance of trade remains firmly dependent on the primary mining and agricultural industries (Fig. 1). Despite optimistic talk of high-tech developments, tourism and a resurgence of manufacturing, these will remain a small component of Australia's export structure.

Jan 1, 1987

By R Dimitrakopoulos, R Senécal

This paper presents a metaheuristic solution to the optimisation of open pit long-term production scheduling with a stockpile and geological uncertainty. The optimisation formulation is a two-stage stochastic integer programming (SIP) model that determines the optimal mining sequence that maximises the total discounted cash flow, while penalising for high deviations from production targets. A parallel implementation of Tabu Search is proposed to accelerate the solution of the SIP formulation and take full advantage of multicore computer processing. Different variants of the proposed algorithm are applied to a case study to assess the performance of the parallel approach. The proposed algorithm and variants are benchmarked using linear relaxation of the complete problem to determine robustness and provide a better overview of the related performance. The results show a net improvement over the sequential solution, and the new proposal seems to be promising when working with a large-scale data set.CITATION:Senécal, R and Dimitrakopoulos, R, 2014. Parallel implementation of a Tabu search procedure for stochastic mine scheduling, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014 , pp 405–414 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014

By D Laurence, L Ge

This paper demonstrates use of remotely sensed imagery in promoting sustainable mining. Remote sensing technology can be used during all phases of a mining project û from evaluating the resource, to making extraction more cost-effective, through to monitoring, mine closure and remediation. Use of the new generation of satellite platforms with the capability of acquiring satellite data with higher spectral and spatial resolution have the capability to emerge as essential indicator for sustainable development in the minerals industry. A life cycle approach to satellite imagery is discussed. The use of an imagery of the site prior to mining activity establishes the environmental baseline, guides mitigation measures and eventual help in suggesting remediation. Remote imagery provides the cost-effective means of monitoring reclamation, including the growth of planted vegetation, of the mine site and surrounding area. The latest advancements in satellite remote sensing are highlighted to meet the newer challenges of sustainable mining practices. Some of the worldwide successful remote sensing applications for the measurement and evaluation of the sustainable development impact of mining operations are described. Presently available source of imagery and its comparative advantages and disadvantages are provided as a guide. Finally, the limitations of this tool are indicated.

Jan 1, 2009

Detailed underground mine design and optimisation studies undertaken by the author over the past few years have clearly demonstrated that additional value can be created by varying the cut-off grade (COG) spatially throughout a deposit as well as over time. This additional value can be particularly significant for marginal operations. This paper, by way of worked examples, illustrates the conceptual and practical considerations of applying a differential cut-off policy for an underground mine to both maximise value and manage risks associated with production and metal price volatility. Consideration is given to both the design stage of a new mine and to the strategic and practical application of a differential cut-off policy in an operating mine.

Jan 1, 2005

By A L. de Ambrosis, S J. Clarke

In the non-codified realm of tunnel design there are issues which are sure-fire instigators of controversy. This paper presents a discussion regarding one particular issue which in the authors’ experience often results in comment and debate. This issue only forms part of the rock load assessment process, but it is specifically addressed with the intention of presenting a rational basis for design, which may result in broader acceptance within the tunnel design community.The issue considered relates to the characterisation of in situ rock stresses for the design of tunnel support in the Sydney Basin. A summary is given of the literature on the topic, with emphasis on the main sources of uncertainty and contention. A design approach is proposed, with particular focus given to the numerical modelling of in situ ground stresses and the approach used to ensure that the adopted stress regime is consistent with the assumed ground model. The resulting variability in the initial stress field is discussed and comparisons made to the test database.CITATION:de Ambrosis, A L and Clarke, S J, 2014. Characterisation of in situ stresses for tunnel lining design in the Sydney?Basin, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 247–252 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

By J Harris, J Li, M Shi, P A. Kirsch, D Sprott

Australia has an enviable global reputation as a leader in health and safety outcomes in the hazardous industry of mining, in part due to an increased application of risk management regarding operational planning and mining practice. In 2010, the Australian Coal Association Research Program (ACARP) initiated a major project, RISKGATE, to build, capture and deliver a national body of knowledge to assist companies with the management of risk in coal mining. The online system contains information for tyres, collisions, fires, isolation, strata underground, ground control open cut, explosions, explosives underground, explosives open cut, manual tasks, slips/trips/falls, outbursts, coal bumps and bursts, human–machine interface, tailings dams, occupational hygiene and inrush. In 2014, RISKGATE is developing content for fitness for work (fatigue, drugs, alcohol, physical well-being, psychosocial well-being).This paper analyses underground mining fatalities in Australia and the United States since 2002 and introduces RISKGATE with a focus on the knowledge base for management of hazards in underground operations. Through capturing coal industry expert operational knowledge, RISKGATE provides a cumulative corporate memory at a time of high personnel turnover within the mining industry. This coal-based body of knowledge is a platform that can be evaluated and implemented for other mining domains and high-risk industries within the energy supply chain.CITATION:Kirsch, P A, Shi, M, Harris, J, Li, J and Sprott, D, 2014. RISKGATE and underground operations, in Proceedings 12th AusIMM Underground Operators’ Conference 2014 , pp 11–18 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Mar 24, 2014

By S Dunham

For decades we’ve been focusing on reconciliation as a tool to validate mineral resource estimates. And for decades we’ve been misleading ourselves. The concept of reconciliation is simple. Predict, measure, compare and assess the quality of the prediction. This four-step process reflects the ideas of statistical process control and the plan-do-check-act cycle of Shewhart and Deming fame and our intuitive understanding of using system feedback to improve performance. In an ideal world where data is robust and dense this type of feedback loop can be useful. In the mining industry however, there are some fundamental flaws with the conceptual framework. At almost every stage of the process from pre-estimation through to final production the mining system is plagued by material challenges with data and measurement quality and quantity, system delays, and losses from a supposedly closed system. These issues can and do impact on the benefits sought from reconciliation. Instead of providing feedback leading to improved estimation, reconciliation can result in poor decisions, distracting investigations, and exacerbate the noise in an already noisy system. Before we can rely on reconciliation as a management tool, we need to address the multiple challenges present in our everyday practices. Some of the most critical issues are addressed in this paper.

May 24, 2023

A broker relies heavily on mineral valuations and independent experts' reports to provide the fundamental information, both technical and commercial, which provides the basis of estimating the sharemarket value of securities and underlying assets. It is important to appreciate the significant variance that can occur between the market value and other types of valuation at a particular point in time. In general, most experts' reports and valuations seek to provide estimates of technical/fundamental or ""fair"" value which correspond to the Corporations Law and accounting standards requirements. They do not usually attempt to estimate (stock) market values and it is usually and quite correctly the broker's task to estimate market values on the basis of a technical appraisal and consideration of all other commercial, market and financial influences. Therefore ideally, an independent experts' report or information memorandum will include material relating to commercial and management aspects of a company as well as detailed technical reviews and fundamental valuations. Wherever sensible cash flow projections can be made, cash flow-derived valuations, usually based on discounted cash flow (DCF) calculations, remain the preferred valuation methodology. Brokers in general would not argue with this preference. However, there is a paucity of examples of valuations where alternative methods are applied as a check on the reasonableness of a DCF-based estimate.

Jan 1, 1994

By G Senanayake, K Hazarika

The demand for iron-ore is ever increasing with the industry directly employing 60 500 people in a range of highly skilled roles in Australia. In the year 2019, the global iron-ore production was 2.85 billion tonnes. It is estimated that each tonne of beneficiated iron ore produces 400 kg of tailings. The IOTs are fine, dense and stable crystalline material mainly composed of iron oxides, alumina and silica. The current and most applied method of iron-ore tailings (IOTs) disposal is using subaqueous disposal of tailings in dams. The footprint generated by a tailings dam is massive and requires constant monitoring due to the possibility of a failure making the operation and maintenance of tailings dam extremely expensive. This review briefly discusses the known causes of tailings dam failures, their impact to the environment and day-to-day human life and potential applications of IOTs. The increase in water content enhances the pressure on dam walls. This in turn increases the liquefaction potential of the tailings and reduces the overall strength of the dam making it more vulnerable to failure. Potential applications of IOTs are in paints, aggregates in construction materials and bricks. The reuse of IOTs reduce waste and generates further revenue facilitating a path towards a sustainable future for the industry.

Nov 8, 2021