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By T. Plikas, L. H. Gunnewiek, L. Oshinowo

Electric furnace smelting is one of the principal unit operations for ferroalloy production, and increased process intensity, improved availability, minimal maintenance and a longer campaign life are common objectives for electric furnace operation in order to obtain favourable economics of production. Furnace designers have continued to develop innovative solutions that have allowed these objectives to be realised, e.g., furnace cooling systems, and numerical modelling plays a key role in the design process. Enhanced understanding of the energy transfer process in the furnace and the ability to develop, evaluate and optimise components of the crucible design to match process requirements are the key motivators for modelling. This paper provides an overview of recent applications of numerical modelling to the design of electric furnaces. The aim is to illustrate what can be done, and identify areas where further work is needed in this field. Examples include furnace bath modelling, crucible cooling system design, taphole design, baking of Soderberg electrodes, off-gas systems, and fume control and building ventilation. It is argued that the trend is for numerical models to become more encompassing while at the same time more accessible, and therefore further improvements in furnace design will be realised with continued and well validated modelling efforts.

Jan 1, 2004

By L. R. C. Cairncross

In this study, the general case of semi-batch precipitation of nickel hydroxide, Ni(OH)2, is modelled. In practical terms, this precipitation may occur at high ionic strengths, and therefore the model for solution chemistry requires a thermodynamic model that is applicable for these non-ideal systems. The activity coefficient model used is the ELEC-NRTL. The simulation of the solution chemistry is performed using AspenPlusTM, which is a steady-state process simulation program. This allows for rigorous evaluation of the solution speciation, and hence the degree of supersaturation which dictates the precipitation kinetics. The solution chemistry provides the basis for predicting the formation of solids. The model consists of a solution chemistry part and a solids formation part. The inputs to the model include the initial concentrations of the streams entering the reactor, kinetic parameters for the precipitation processes, and a particle size distribution obtained from experiments. The solids formation part of the model employs the method of moments for the evaluation of the population balance. The population balance accounts for total particle number, and the formation and increase in size of particles across the entire particle size range. This balance requires kinetic parameters for the processes of nucleation, growth and agglomeration. Using optimization routines inherent in AspenPlusTM, parameters for the rate of nucleation, growth and agglomeration may be extracted from experimental particle size distributions. These are then used in the model to extrapolate to other conditions. Once an understanding of the kinetics of the precipitation processes is gained, the model provides a predictive tool for optimization of these kinetics, in order to increase the overall particle size and therefore improve solid-liquid separation. The work is deemed to be significant as it sheds some light on solids formation processes involved in precipitation?including nucleation, growth and aggregation?and develops a predictive modelling tool applicable to solutions of high ionic strength. We argue that this dewatering of suspensions is affected significantly by particle size distribution and surface properties of the solids formed by precipitation. This modelling tool should facilitate the design of solids formation processes where downstream dewatering is enhanced.

Jan 1, 1997

By M. Pierce, E. Karampinos

"One of the main challenges in the numerical modelling of ground support in underground excavations is to reproduce the performance of the sequential installation of the reinforcement while capturing the rock mass behaviour of an advancing face in 3D. The 3D modelling approaches used to simulate the progressive advance of excavations are mostly continuum and often cannot reproduce the rock mass failure mechanisms. The 3D discrete element method (DEM) can better reproduce structurally controlled rock mass failure mechanisms and can explicitly represent the reinforcement elements. This paper builds on previous work that reproduced the structurally controlled squeezing conditions in an underground hard-rock mine using 3D DEM and the in situ behaviour of reinforcement under pull conditions. It addresses important issues on the way reinforcement is explicitly introduced in discrete element models. A pseudo-3D model is employed to overcome the computational restrictions and time limitations of a 3D modelling approach. The work focuses on the scaling of the material properties of the ground support elements when the thickness of the model is not equal to the out-of-plane spacing of reinforcement. It demonstrates the scaling methodology based on the type of the modelled reinforcement elements used and investigates the significance of this approach. The advantages and disadvantages of this approach with respect to 2D and 3D methods are discussed. The results are compared with field data and previous modelling work done at the mine. IntroductionNumerical models can provide significant insight into the anticipated behaviour of underground excavations. The modelling of ground support, however, is not a trivial exercise. An effective representation of ground support in underground excavations should capture the behaviour of both the rock mass and the support elements. When numerical models are used for design purposes, the complexity of the problem requires significant time and expertise (Sweby, Dight, and Potvin, 2016).At a laboratory scale, numerical models have successfully reproduced the results of laboratory tests on rockbolts by explicit modelling of the bolt, the borehole, and the grout. Chen and Li (2015) used a continuum FLAC3D (Itasca Consulting Group Inc., 2012) model to simulate the mechanical behaviour of D-bolts as observed experimentally. Grasselli (2005) used a 3D finite element code to model the behaviour of fully grouted rods and expandable bolts under shear."

Dec 1, 2018

By J. W. Neale

Mintek and BacTech have joined forces to provide the metallurgical industry with bacterial-oxidation processes for the treatment of sulphide ores. The processes are aimed at both refractory gold-bearing and base-metal concentrates. Previously, BacTech had commercially implemented the refractory gold process at the Youanmi Gold Mine in Western Australia. More recently, the process has been incorporated in the Sulphide Treatment Plant at the Beaconsfield Gold Mine in Tasmania, Australia. In addition, Mintek and BacTech have recently signed an agreement with the Laizhou Gold Metallurgy Plant in China?s Shandong Province, which will see the third commercial realization of the technology for refractory gold. Development of the base-metal technology is the subject of several papers in the proceedings of this colloquium. The implementation of the refractory gold technology at Beaconsfield is discussed in detail. Some important aspects that are covered include: ?Test work, and the choice of bacterial culture ?Process design choices, and the advantages of the Mintek-BacTech process ?Inoculum build-up ?Plant commissioning ?Plant performance. Besides the Laizhou project, Mintek and BacTech are currently investigating several other commercial prospects for the technology. These include the use of the technology for a gold-copper deposit, where the production of both gold and copper is envisaged.

Jan 1, 2000

By H. Thomas, I. N. M. Nday

"*Paper written on project work carried out in partial fulfilment of BSc.Eng (Mining Engineering) degreeThe optimization of the cycle time to increase productivity at Ruashi Mining was an on-site project investigation conducted from December 2017 to January 2018. The main objective of the investigation was to determine the actual cycle time components. These comprise the queuing time, loading time, hauling time, and dumping time of ADTs (articulated dump trucks). Data was also collected on two hydraulic shovels to identify where these could be optimized. The actual cycle time obtained was compared to the theoretical cycle time to ascertain the constraints, which affect productivity. By applying Systems Thinking to the cycle time, man-made constraints of the actual cycle time were identified and recommendations to mitigate them suggested to optimize the cycle time. However, rainfall is a natural constraint that adversely affects the actual cycle time, and which cannot be mitigated.In addition, both the theoretical and actual cycle time were analysed, as well as the theoretical and actual productivity for the year 2017. Based on the findings, conclusions and recommendations were made to optimize the cycle time. IntroductionThe aim of the project was to increase Ruashi Mining’s productivity by 39%, from about 7.537 Mt of broken material mined to 12..367 Mt targeted in 2017.BackgroundRuashi Mining is a copper (main commodity), cobalt (by-product), and acid producer located in the Democratic Republic of Congo (DRC), 10 km from the city of Lubumbashi. Figure 1 shows the location of the Ruashi Mining open pit.Ruashi Mining started production in 1911 and in 2005 the mine was registered as a DRC company owned by Metorex Group Limited. In November 2013, the Chinese company Jinchua Group International Resources Co. Ltd. bought a majority stake in the business. Ruashi Mining currently produces 38 000 t of copper and 4400 t of cobalt per annum. The company has contracted NB Mining (a contract mining company) to transport its ore. To optimize the productivity of the mine, considering ore flow delivery at Ruashi Mining, the cycle time is the indicator used in this project. The cycle time components were recorded on site using a stopwatch."

Jul 1, 2019

By M. J. Nicol

The kinetics of the dissolution of colloidal silver in aerated cyanide solutions has been investigated with the aim of developing a relatively rapid and convenient method for monitoring the ?leaching power? of solutions typically used in the cyanidation process. Experimental results obtained are consistent with an electro-chemical model, in which the mixed potential is set up in the active region of the polarization curve for the anodic dissolution of silver, giving rise to a rate of dissolution which is controlled by the rate of mass transport of either cyanide or oxygen to the surface of the silver. The rate of dissolution of colloidal silver was found to respond to variations in the reactant concentrations in a similar manner to gold (and silver) in a typical free-milling ore. The use of this technique for the monitoring and control of the cyanide leach process is discussed.

Jan 1, 1998

By M. K. Roberts

The approximately 2800 Ma old Ventersdorp Contact Reef is a unique Witwatersrand orebody, from which about 6% of the world?s gold production is derived. A major portion of this production is mined at depths exceeding 2500 m and deepest levels of mining are at about 3600 m. The orebody?s hangingwall consists of volcanic rocks. This differs from the older Witwatersrand orebodies, which have quartzitic hangingwalls. The thickness of the Ventersdorp Contact Reef is generally about 1.20 m, but is highly variable, at an average dip of about 18°. A pronounced unconformity beneath this orebody is also expressed by varying footwall rock type characteristics and frequent rolling of the reef plane. These rolls follow topographic variations of the palaeo-surface. More geological than rock mechanics studies were performed on the Ventersdorp Contact Reef prior to 1992. Recently, however, a multidisciplinary team comprising various rock engineering and geological disciplines has delineated geotechnical areas by a novel technique. Geotechnical areas are defined by distinct footwall/hangingwall rock assemblages. The presence of three footwall and two hangingwall rock types results in the definition of six geotechnical areas across a distance exceeding 60 km, including about 10 gold mines. Distinct rock mass behaviour has been documented in three of the six geotechnically defined areas. Different rock mass behaviour is expressed by features such as mining-induced fracturing, closure rates, fall of ground characteristics and seismic character. Some geological features override the rock mass behaviour as defined for the individual geotechnical areas. These are undulations of the orebody or the frequency, characteristics and attitude of major discontinuities. It is concluded that the concept of geotechnically subdividing orebodies is not only important for facies delineation and the associated grade, but also needs to be considered for safety aspects, in determining factors such as the appropriate support to be employed.

Jan 1, 1999

By J. Preussner, U. Glatzel, R. Völkl, S. Prins, M. Wenderoth

Platinum base alloys are very corrosion resistant and have got a high melting point. Similar to Ni-base superalloys, which are used for jet turbines, the hardening effect of the intermetallic L12Pt3Al phase is used to receive a material that is creep resistant at high temperatures. Chromium is added to the alloy system to stabilize the L12phase down to room temperature. With the right amount of nickel the misfit and shape of the precipitates can be controlled. Various alloy compositions have been melted and analysed. With scanning electron microscopy (SEM) and energy dispersive spectroscopy (EDS) a microstructure can be observed, which is very similar to the one in Ni-base superalloys. To support alloy development with simulations, a thermodynamic database of the Pt-Al-Cr-Ni system is about to be established. The SEM and EDS measurements provide useful input to the thermodynamic optimization. Also many data from the literature have been used to receive the best approximation. The Cr-Pt binary phase diagram has been reassessed and the latest results of thermodynamic modelling are presented.

Jan 1, 2006

By J. D. Steenkamp

In 2002 the commissioning of an ilmenite smelter on the North Coast of South Africa was extended by three months due to the failure and subsequent replacement of the magnesia-based refractory lining. The lining failed due to the hydration of magnesia caused by an unexpected source of water. The incident resulted in significant financial losses and a prolonged insurance claim which was settled in 2009. As magnesia-based refractories are used extensively in both ferrous and non-ferrous applications, the authors of the paper want to share the experience gained from this incident with others. The paper reviews the literature available on furnace start-up practices and explains the hydration of magnesia using available sources. The incident is studied in more detail, both technically and economically, and the costs incurred are quantified in terms of the cost of the original lining. The paper concludes with lessons learned and recommendations made for future work. The intention of the paper is to stimulate open debate regarding best practices in preheating of furnaces lined primarily with magnesia. Keywords Commissioning, hydration, start-up, magnesia.

Jan 1, 2011

By S. A. Abdel Sabour

Strategic decisions in the mining industry are made under multiple technical and market uncertainties. Therefore, to reach the best possible decision, based on information available, it is necessary to integrate uncertainty about the input variables and model financial risk of the project?s merit measures. However, this provides few useful insights to decision-makers unless accompanied by modelling management responses to uncertainty resolutions. It is widely acknowledged that conventional decision-support methods based on static, no-change, discounted cash flow (DCF) techniques such as net present value (NPV) and internal rate of return (IRR) tend to provide inaccurate value estimates. This could mislead the strategic decision-making process and result in significant value losses. This paper aims to model financial risk related to uncertainty about market variables such as metal prices and foreign exchange rates. Other sources of risk that are related, for example, to geology and production costs are not considered in this work. The article outlines a flexible financial model that integrates uncertainty about market variables and management flexibility to react to uncertainty resolutions into mine project valuation using a real-options valuation technique based on Monte Carlo simulation. Significance of information generated from this simulation-based flexible valuation model to the strategic decision-making process is tested using an illustrative case study of a Canadian mining project. The project is a typical multi-metal, open pit mine that produces copper and gold. In this case, there are three uncertain market variables, which are: copper and gold prices and US$/CAN$ exchange rate. Financial valuations are carried out using both the conventional static DCF method and a flexible real-options model. In the flexible model, management flexibility to decide whether to go ahead with the next expansion or terminate production operations is integrated. Results show how the flexible financial model can enhance the decision-making process.

Jan 1, 2009

By A. Feather

Avmin have developed a flowsheet for the refining of copper, nickel and cobalt from Nkomati concentrates. Cobalt is recovered from calcium-saturated solution using Cyanex® 272. Nickel is subsequently extracted using versatic acid. The loaded organic is stripped using spent electrolyte, producing advance electrolyte for recovery of nickel by electrowinning. Cobalt was recovered with >99.5% extraction efficiency, reducing cobalt from 1.8 g/l to <10 mg/l. The cobalt/nickel ratio in the cobalt product solution was >1500. Nickel solvent extraction was optimized to recover 99%, reducing the nickel concentration from 32 g/l to <0.3 g/l, while minimizing calcium deportment to the nickel electrowinning circuit.

Jan 1, 2002

By J. L. Deutsch

Block model estimates are commonly calculated by the well-established technique of kriging. The mathematics are well established, but implementation details require site-specific considerations. Checking and measuring the performance of the estimates is important to ensure the block model is suitable for its intended purpose. There are different criteria for long-term planning and short-term planning. The implementation of kriging should be checked with cross-validation and assessed for conditional bias and departure from theoretical optimality with the calculation of kriging efficiency. A new expression of kriging efficiency, which compares the kriging variance with the theoretically optimal kriging variance, is developed to aid in this assessment. The assessment tools presented here can be applied in a number of situations; however, ordinary kriging with a reasonably large search performs well in most cases.

Jan 1, 2014

By L. Ziyuan, S. Chunbao, K. Jue, H. Yang, S. Tichang

In this study, potassium ferrocyanide, a non-toxic cyanide precursor in dark and diffuse reflection environments, was applied as a reagent for the leaching of gold. The free cyanide ions were gradually released from the potassium ferrocyanide solution under the ultraviolet light. Orthogonal leaching experiments were performed in gold ore to analyse the effect of solution pH, potassium ferrocyanide dosage, and temperature in potassium ferrocyanide solution system under UV light. Response surface methodology (RSM) was applied to explore the role of potassium ferrocyanide in gold leaching, Optimised results showed that the gold recovery reached 67.74% in a high-alkaline environment at a 12.6 pH, 3.8 kg/t potassium ferrocyanide dosage, 62°C, and irradiance of 10mW/cm-2. The gold leaching kinetics was monitored by quartz crystal microbalance with dissipation (QCM-D) of potassium ferrocyanide solution. The results indicate that the gold extraction process consists of two processes: adsorption and leaching, and a rigid adsorption layer formed on the reaction surface. Furthermore, Xray photoelectron spectroscopy (XPS) analysis of the gold sensor surface after leaching reaction showed that -C≡N appears on the gold sensor surface, and the gold is oxidised to form AuCN complexes. Keywords: Gold leaching, potassium ferrocyanide, UV light, QCM-D, AuCN complexes

Jan 1, 2020

By J. M. Ortiz

This paper shows the usefulness of geostatistical conditional simulation combined with the quantification of sampling errors obtained from the analyses of fundamental errors ? validated from duplicate data ? to assess the relevance of the quality and quantity of the information, for short-term mine planning purposes. Traditional blast-hole drilling equipment has been designed for efficient drilling, but not for obtaining high-quality samples. Furthermore, blast-hole sampling interferes with production, and thus usually produces poor-quality results. These results are the basis of short-term plans, where the grades of selective mining units are estimated and used for distinguishing between ore and waste. Under these conditions, misclassification (ore blocks sent to the waste dump and waste blocks processed at the plant) is inevitable, leading to significant hidden losses that can amount to millions of dollars per annum. Reverse circulation drilling with the latest automated sampling technology improves significantly the quality of the information used for short-term planning, and thus reduces misclassification, improving the financial returns of the operation. In this paper, we present the general methodology for assessing the effect of poor blast-hole sampling, as compared to advanced reverse circulation drilling grids at several spacings, in order to arrive at the most appropriate grid for short-term planning. This plan can be prepared well in advance using several additional variables that are usually not available when the plan is based on blast-hole samples. Furthermore, blending options can be analysed in order to optimize plant recovery, minimize the use of sulphuric acid, etc. Three case studies are presented, namely a typical porphyry copper deposit, an exotic oxide copper deposit, and a complex gold deposit, where mineralization is controlled by structures and lithology. This paper shows that in all cases, advanced reverse circulation drilling grids provide good-quality information that, coupled with the use of geostatistics for short-term mine planning, significantly improve the financial returns of the operation.

Jan 1, 2014

By S. M. Rupprecht

"SynopsisThis paper is intended to document recent personal thoughts, opinions, and debate around the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (the SAMREC Code) (2009) and its current usage by Competent Persons. Admittedly, some debates are as old as the SAMREC Code itself and have been ‘parked’ as no consensus could be reached by members of the SAMREC Working Group.Some of the more critical issues currently under examination are the definition of Competent Person and the potential registration of Competent Persons, the current re-write of the Code, and the introduction of reporting of Exploration Results, Mineral Resources, and Mineral Reserves on an ‘If not – why not’ basis, noncompliance with the Code and discipline, the role of the Johannesburg Stock Exchange Readers Panel, and the valuation of mineral assets based on scoping studies.IntroductionThis paper is intended as a personal memoir of recent thoughts and debate around the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (the SAMREC Code) (2009) (‘the Code’). Admittedly, some debates, such as reporting of Mineral Reserves inclusive or exclusive of the Mineral Resource, are as old as the SAMREC Code itself and have been ‘parked’ as no consensus could be reached by members of the South African Mineral Resource Committee (SAMREC) Working Group. The author, who has been involved with the SAMREC Working Group since 2007, offers observations in his personal capacity as a professional mining engineer with the intent of getting practitioners to contemplate the influence of the Code on the mineral industry. Current practices in the compilation and reporting of Exploration Results, Mineral Resources, and Mineral Reserves are often deficient in adhering to the Code and a conscious effort must be made by the mining sector to improve the standard of public reporting, in particular Competent Person Reports (CPRs) and Public Reports issued by listed mineral exploration and mining companies."

Jan 1, 2015

By M. Tang, X. Tong

"SynopsisSlime coating is one of the most common ways for serpentines to contaminate metallic mineral concentrates during traditional flotation of coarse sulphide particles. This could pose quite a complicated and challenging problem in the case of some types of low-grade and finely disseminated Cu-Ni ores bearing high serpentine contents. This is the case for the copper and nickel sulphides from the Yunnan Mine, China. Previous batch flotation tests of this ore resulted in satisfactory recoveries of 86.92% Cu, 54.92% Ni, and 74.73% Pt+Pd, and concentrate grades of 4.02% Cu, 3.24% Ni, and 76.61 g/t Pt+Pd. However, the MgO content in these concentrates was more than 19%. In the current study, microflotation tests and settling rate tests were introduced to investigate the effects of a combination of strong collectors (a 2:1 weight ratio of butyl xanthate and butyl ammonium dithophosphate) on entrainment of serpentines in metallic mineral concentrate, as well as visual observations of the concentrates in suspension using still photography. All test results indicated the presence of serpentines entrapped in the hydrophobic flocs that resulted from these collectors, even with the use of effective gangue depressants. These strong collectors are used to flocculate the ultra-fine sulphides by forming loose and ‘fluffy’ hydrophobic flocs. However, these hydrophobic flocs may also be able to load or entrap some serpentine slimes into the concentrate, and this entrained serpentine could be harder to remove by using depressants or intensified conditioning than serpentine slime coating on the particle surfaces.IntroductionSerpentine minerals, which have the generalized composition (Mg,Fe)3Si2O5(OH)4, can be easy to crush and grind due to their convoluted and bent layered structures. These serpentines can hinder the enrichment of some metallic minerals and dilute their concentrates by entrainment during flotation. The resulting high pulp viscosities, slime coatings, and high content of dissolved ions adversely affect the flotation recoveries of copper and nickel sulphides, and high levels of MgO entrained in the concentrates lead to heavy penalties from smelters. Since the quality of nickel flotation concentrate depends heavily on its MgO content (generally less than 6–7% for No.1 or 2 grade nickel concentrate according to the standard requirement from National Nonferrous Industry), reducing the entrainment of serpentine during flotation is becoming more and more pressing. Previous research has focused on the collectors and depressants that are commonly used in copper-nickel flotation, as well as their interaction mechanisms."

Jan 1, 2015

By M. Mokgohloa, T. R. Stacey

Boring of tunnels and shafts in hard rock under high stress conditions is becoming more common as mines and tunnels are developed at greater depths. Under the high stress conditions, fracturing of the often-brittle rock occurs in the walls, backs, and ahead of advancing faces of excavations. Fracturing can have a significant impact on boring activities: sidewall spalling, which affects machine gripper capacity, and fractures can also develop in the rock ahead of the face, leading to blocky rock conditions, which may have a significant effect on machine excavation. Fracturing may develop dynamically, leading to rock bursts manifesting in the form of strain bursts, which can be hazardous and destructive. In brittle rock, fracturing is commonly extensional in nature. The focus of this paper is on fracturing in the face of the excavation. Examples of such fracturing behaviour are described briefly in the paper. Numerical analyses were carried out to predict the initiation of extension fractures and their orientations ahead of excavation surfaces, and the resulting formation of rock slabs/plates, and the stability of these plates. The results should be beneficial for the evaluation of the conditions prior to, and during boring operations.

Nov 27, 2024

By R. G. Cawthorn

The earliest authenticated scientific report of the occurrence of platinum in rocks from the Bushveld Complex appears to be by William Bettel on 10 November 1906. Thereafter, prospecting of the chromite-rich rocks for platinum proved frustrating. I suggest that the resurgence of interest shown by Dr Hans Merensky in 1924 resulted from his realization that newly panned platinum had a different grain size from that in the chromite layers and indicated a different source rock, which he located, and it became known as the Merensky Reef.

Jan 1, 2007

By P. van Dorssen

In South African metalliferous mines, stoping operations are largely confined to narrow, tabular orebodies making mechanization extremely difficult. Limited flexibility in terms of stope width has necessitated drilling by means of handheld, pneumatic rock drills at most of our operations. As the largest producer of platinum in the world, we drill in excess of forty million stope blast holes per annum. Cleaning of the broken ore is also done by conventional means?utilizing scrapers and scraper winches. Conventional methods such as these carry high costs in terms of risk exposure as well as labour intensity. The purpose of this paper is to describe the development of a long hole stoping system suitable for the narrow platinum reefs. The new system had to be substantially safer and more cost effective than conventional mining. We selected a site that was conducive to mechanized mining and set out the parameters that we considered would meet our requirements. We then conducted a feasibility study to evaluate the conceptualized long hole stoping system in terms of specific goals. An analysis of the proposed system identified the Key Performance Indicators (KPIs). One of the most critical goals was to be able to create a man-free stope. This would mitigate the safety risk associated with normal stoping operations, as well as the inefficiency cost previously referred to.

Jan 1, 2002

By M. Rahmanpour

"Mine planning is a multidisciplinary procedure that aims to guarantee the profitability of a mining operation in changing and uncertain conditions. Mine plans are normally classified as long-term, intermediate-term, and short-term plans, and many factors affect the preciseness of these plans and cause deviations in reaching the objectives. Commodity price is the heart of mine planning, but it has a changing and uncertain nature. Therefore, the determination of mine plans in the presence of uncertain mineral price is a challenge. A robust mine plan reduces the risk of early mine closure. A procedure is presented to determine the value at risk (VaR) in any possible mine planning alternative. VaR is considered together with downside risk and upside potential in order to select the most profitable and least risky plan. The model is tested on a small iron ore deposit. IntroductionMining projects are normally evaluated with the objective of maximizing economic value, as measured by the net present value (NPV). The aim of mine planning is to develop a yearly extraction plan that guides the mining operation to the highest NPV (Dagdelen, 2007; Yarmuch and Ortiz, 2011). This plan considers the technical constraints such as blending requirements, block sequencing, and pit slope (Caccetta and Hill 2003). Thus, the mine plan affects the economics and the payback period of mining operations.Mine planning is a procedure based on which the profitability of the mining operation is guaranteed in changing and uncertain conditions (McCarter, 1992). However, conventional mine planning ignores the volatility and uncertainty of future commodity prices and does not allow for managerial flexibility. It is common practice to assume a deterministic and constant commodity price through the mine life. The problem with this approach is that the commodity price is the heart of the mine planning procedure and governs the profitability and feasibility of the operation; thus ignoring price volatility will result in a sub-optimal mine plan."

Jan 1, 2016