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By S Matos Camacho, K G. van den Boogaart, R Tolosana Delgado, U Mueller

"The precise formulation of a geometallurgical optimisation problem is by necessity a simplification of reality. It includes implicit choices such as data availability or mining block geometry. Additional data can be orebody data, production data or market data. Often these choices are predetermined by the software, the workflow or the corporate culture, and as such are not even queried. There are several aspects that might play a role in the optimisation. They include not only the spatial model on which the selection of mining blocks and the potential mining sequence are based, but also the complexity of the processing model, the way in which uncertainty is treated, the scope of responsibility and the complexity of the model. In addition the timing of the optimisation and the availability (or lack thereof) of information will influence the outcome of any optimisation.We show that different modelling choices and different model formulations for the same mine can lead to very different processing choices, substantially different net present values (NPV), opposite investment decisions and so to overall different values for the entire operation. The selection of adequate simplifications and corresponding formulations for the optimisation problem is thus an important task in itself.For this purpose we introduce a method for quantifying the impact of certain simplifications prior to the optimisation. For example, the effect of mining block choices depends mainly on the spatial structure and the structure of the processing gain function. Both can be quantified beforehand. Based on the outcome, appropriate simplifications can be selected for the geometallurgical optimisation.CITATION:van den Boogaart, K G, Tolosana Delgado, R, Mueller, U and Matos Camacho, S, 2016. How Details of the Geometallurgical Optimisation Influence Overall Value, in Proceedings The Third AusIMM International Geometallurgy Conference (GeoMet) 2016, pp 303–312 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 15, 2016

By PHILIP N. MOORE

THE problem of managing the policies of the Institute so that a middle course may be drawn between the close control of a few who are so situated that they can give continuing attention and intermittent control by occasionally present directors presentation .of the subject is to bring clearly before the membership of the Institute a summary of the attendance at the Directors' meetings for the past four years.

Jan 1, 1924

By AIME AIME

THE Employment Bureau of the F. A: E. S., conducted under- the direct supervision of the secretaries of the four Founder Societies, has wanted to extend its activities and usefulness but it is operating right up to the limit of its budget; consequently, anything which requires the expenditure of more funds cannot be -undertaken, for the present. A great deal of time has been spent in recording, classifying, and interviewing the men listed, but owing to the business depression, only a comparatively small number of men have been placed' luring the last few months. There are men in New York from all over the country. What the Bureau needs is more positions available. With this in view, a number of high-grade engineers, themselves in need of employment, volunteered their services for a publicity campaign in the City of New York. A definite mode of procedure was evolved, and the success of the movement has been considerable, so much so that it has been thought well to call it to the attention, of members elsewhere, so that similar committees ' and campaigns might be organized in other cities. Following is a chronological arrangement of the methods used.

Jan 1, 1921

By W. C. Morgan

The Federal Surface Mining Law enacted in 1978 is now being translated into regulations which must be followed in future coal mining. Substantial change to mining procedures is required to maintain stricter air and water control while mining and to return the mined out land to equal or better use than before. These changes do not come easy; and in most cases, they create a substantial additional cost. Based on field observations and mining studies, Caterpillar has been making suggestions on the use of their types of equipment to conform to the new standards at the least cost. This paper will be a brief review of some of the overburden stripping and reclamation methods suggested by Caterpillar. A production and cost comparison of dragline, scraper/dozer and truck, loader systems in 20 to 150 ft. Overburden conditions illustrates potential cost savings using mobile equipment.

Jan 1, 1980

By Duane A. Smith

Introduction From the days of the Spanish in the eighteenth century, Colorado's San Juan mining district has attracted miners and public interest. The Spanish left behind names - San Juans, La Plata, Animas, legends of lost mines, and the remains of a few scattered mining operations. They came, but did not stay. Again in 1860-61, as a spinoff of the Pike's Peak gold rush, prospectors climbed the mountains and descended into the canyons searching for gold. They found some, not enough to convince them to remain and confront the isolation, often hostile environment and the Utes, who rightfully felt this to be their home. Not until the 1870s did miners come to stay. In their wake little camps grew in the high valleys and squeezed into narrow canyons. Nowhere else in Colorado were there more rugged mountains, a higher average elevation, nor a climate that one old Swede said was "three months of mighty late fall and nine months of winter." The San Juans proved eventually to be a mineral treasure chest. At the moment, however, the prospectors sought gold. Then they discovered silver deposits and the first rush was on. It got started just in time to be completely overcome by the Leadville excitement. At Leadville, investors almost fell over themselves to buy claims and stock in the hopes of becoming another millionaire like Leadville's own Horace Tabor. The San Juaners could only look from the sidelines and speculate how it might have been had fate been kinder. Fate was seldom kind, as these pioneers quickly discovered. From the mid-1870s on, the San Juaners wrestled with some major problems. And the fate of their district rode in the balance. The problems they faced were similar to those of other Colorado districts, compounded by their geographic isolation. Every mining district needed the best transportation system available, experienced investors combined with sound investment, and mineral reserves to develop. The San Juans offered the last in abundance. It was hoped the first two would appear. Railroads - much needed transportation link Nothing was more desired than railroad connections, the penultimate nineteenth century form of transportation. Colorado's own, the Denver & Rio Grande, resolved the issue with its mountain-hugging narrow gauge. As early as the mid-1870s, the D&RG dreamed of tapping this potentially lucrative market in southwestern Colorado. A national economic depression and then the Leadville silver excitement prevented immediate construction. Not until 1879-80 did survey crews start work.

Jan 2, 1988

By Paul Billingsley

WHEN I was an undergraduate at the Columbia School of Mines, the mining curriculum was subdivided into two major branches's known respectively as the Metallurgical and the Geological Options, which diverged rather widely as the course progressed. When I duly elected the Geological Option, I believed, I am sure, that this divergence would continue throughout the years. The facts have proved otherwise. The mining industry is a closely knit entity in which the search for its raw materials, called mining geology, cannot be separated from the conversion of these raw materials into marketable form, called metallurgy. The mining geologist searches for materials which the metallurgist can utilize, and only such; and whenever an advance in metallurgy opens the gates for new materials, the geologist's problem is correspondingly modified. No better instance of this relationship can be given than that seen in the Salt Lake region in recent years. Our mineral industry here is of long standing. The three principal tributary districts, Bingham, Park City and Tintic, were discovered in the 1860's and have been vigorously and intelligently developed for many decades. Their production has made the Salt Lake valley one of the world's great smelting centers. The maintenance of this industry has for years depended upon the continual development of new orebodies to take the place of those being extracted. Intensive exploration in the old districts has been supplemented by prospecting in outlying districts of lesser prominence. . Many new orebodies have been discovered, such as those of the Daly West, Silver King, and Judge mines in Park City, the Utah Apex in Bingham, and the Sioux, Colorado Chief Consolidated and Tintic Standard in Tintic. New mines in other districts have been discovered also, but without affecting the dominance of the three major districts. In all cases discoveries, to be of value, had to be of ore amenable to treatment in the available metallurgical plants. This meant that, for the most part, zincy ores, both oxide and sulfide, must remain untouched, and also that ores high in iron and ores high in silica had a fictitious value, either high or low, set by the balance of these

Jan 1, 1928

By Mark Roberts

Automation, data analytics and optimisation are key trends in the mining industry. Doing more, and better, while expending less resources targets KPIs around efficiency and productivity. With the explosion of data, the next step is to develop an optimal level of processes and systems to harness this data to support value-in use decisions. Typically, significant amounts of resources and effort are invested to develop realistic simulation models. However, models are frequently not integrated with existing systems, and therefore are underutilised. When we consider the specialised process of blasting, integration with upstream and downstream processes is a significant driver to realise sustained improvements and value. The application of genetic algorithms and cloud computing to solving complex mining problems has advanced over the last 15 years, in particular with mine scheduling. Genetic algorithms are unique in that they support true multi-objective optimisation, utilising population-based methods to present trade-offs between multiple solutions. Secure in-cloud processing speeds up the processing, with results delivered in timeframes that are not feasible with desktop computing.

Feb 6, 2023

By Hans Lundberq

WHEN geophysical methods were first employed in the search for ore deposits and oil accumulations, it was hoped that they would provide a direct means of locating such concentrations. Magnetized needles were used long ago in prospecting for magnetic iron ore, and soon after the discovery of galvanism in about 1790 attempts were made to find concentrations of valuable minerals electrically. Evidence indicating that the early geophyeical instruments were regarded merely as improved divining or dowsing rods is to be seen in the names "mineral finders," "ore finders," etc., that were applied to them. Today, appellations of this kind raise serious doubts in informed minds as to the intelligence and integrity of individuals advocating the use of such euphemistically named methods or instruments, for experience and research have shown that, geophysical, it is never a question of directly locating a given mineral but merely of delimiting its possible occurrence.

Jan 1, 1939

By Ravi Sahu

"In the global mining industry, there are those who seem resigned to the fact that the mining industry has always operated according to certain time-tested principles that don’t involve jumping on every new technological trend. Others expect that mines will soon have autonomous electric vehicles running around the clock. The truth lies somewhere in the middle. In business, as in life, that is usually the best path to follow.The instant access to people and information provided by 21st-century technology continues to push businesses in all industries toward greater efficiency and unheard-of levels of modernization. And in the world of mining, the embrace of advanced technology is all about managing risk.However, even in this age of digital information overload, some mine sites still require employees to physically download data from individual trucks to monitor payload data and inspect road conditions using a clipboard. What’s more baffling is that other mine sites still have no way of tracking tons moved at all.This isn’t due to a lack of innovation in the industry. Quite to the contrary, there is an abundance of new technology available that provides real-time monitoring of vehicle movements and tracks road conditions without the intervention of people. So why are owners reluctant to embrace advances in mining tech?Gauging the value of changeSurvey data has traditionally been captured by ground laser scans and LIDAR systems. A mine site surveyor would drive around the pit with a truck-mounted scanner to generate a point cloud. This process would be completed every few days and would take an entire day.The many cons of this method far outweigh the pros. First, it provides no visual data. If an operation has moved beyond the roller wheel and tape measure, visual pit models and LIDAR scans are typically completed once every six to 12 months by an aerial flyover, but such sporadic information gathering isn’t likely to result in the most actionable data. Moreover, given the high cost (in terms of both money and time), the numerous safety and liability issues, and the lack of flexibility in scheduling, manual processes are more trouble than they are worth.Overall, while miners are excellent operators who value innovation, their employers often try to outsource it or acquire innovators instead of investing in existing technology that can improve current operations. It is a never-ending dilemma:"

Jan 5, 2018

By J Ross

The foundation of effective leadership is communication. You can have all the leadership theories, models and training you want, but in the end it is all about leaders talking to, listening to and understanding the point of view of those below and above them.The foundation of effective safety is peoples’ behaviours. Every incident, every near miss and every safe act comes down to what one person does and how that affects themselves and others. We tend to focus these behavioural considerations on the people at the ‘coal face’, those most in harm’s way. But it is the individual behaviours of everyone in the organisation, particularly those at the top, which are just as (if not more) important. The foundation of effective safety leadership in the mining industry is that it starts at the top, with the individual behaviours of leaders. The behaviours of each and every leader will be reflected in their teams. And where their teams are made up of leaders, these leaders will pass these behaviours on to their teams and so on. It’s the sum total of what people see their leaders do and what they do as a result, that creates the ‘culture’ of the business – and it’s this culture that makes or breaks how safely people work.

Mar 21, 2011

By G Lumley

Gold miners have been underperforming the price of gold for a number of years. So why has the æmarketÆ undervalued our gold miners relative to what they have been mining? The low valuation ascribed to gold mining companies is largely attributable to their profit performance. In the period since 2006 the price of gold in A$ has risen about $900/oz, but the real cash margin (operating cash costs + cost of finding and/or acquiring deposits + the cost of bringing them into production) has only risen about A$100. Rising operating costs are a major part of this reduction in real margin. Energy and labour costs have risen more than the inflation rates across a number of countries as have taxes, royalties, etc. There are however, more significant contributors to the rising cost base. Firstly, in 2006 the average gold grade was 2.0 g/t; today it is 1.3 g/t. Secondly, strip ratios (for surface mines) have increased by 19 per cent during this time. Open cut mining equipment unit output across the world has dropped by 26 per cent during 2006 - 2012. Finally, costs have risen by 55 per cent during this time period. Consequently, there is now 3.8 times more mining cost required to produce an ounce of gold from surface mines compared with 2006. The decline in gold grade looks to be a permanent trend as does increasing strip ratio if output is to be maintained. Costs will continue to rise although cost control will be necessary. Reversing the decline in equipment performance and closing the gap between median and best practice provides the hope for a sustainable reversal of cost increases. The current gap between best practice and median performance has grown to 112 per cent for mining trucks, 168 per cent for excavators and 169 per cent for front end loaders. Closing this gap is the potential for a more profitable future. For most gold mining companies improving mining efficiency is not an option; it is an imperative.CITATION:Lumley, G, 2013. How many gold mines will inefficiency kill?, in Proceedings World Gold 2013 , pp 267-276 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 26, 2013

In terms of tunnelling the mining industry is generally thought of as the crude cousin of the civil construction industry. Mining has tended to concentrate on speed and flexibility rather than the high standards required in civil tunnelling. Historically this difference has been based on the belief that such high standards were not required by the mining industry, they would slow down the development of the project and as a result increase the costs and extend the time period between start up and a positive cashflow.For civil works the construction of a tunnel is the project, for mining the construction of declines, crosscuts and drives are merely the means of accessing the orebody so that the real work can begin û MINING. Extraction of ore is the core business of most mining companies û it is what pays the bills.Though most mining companies have the equipment, the people, the knowledge and the ability to excavate tunnels, in the past mining companies did not appear to put the same energy into their tunnelling operations as they put into improving their ore extraction operations. In the past decade this appears to have changed, many mining companies now realise how important the correct excavation of a decline is to the success of the overall mining operation. They began to recognise that there were cost benefits to be gained in using the correct development techniques without overly sacrificing the benefits of speed and flexibility.This recognition also coincided with the growth of underground contractors whose predominant work was primary development (declines and ore access crosscuts and drives). The contractors again had the same knowledge, the same people, and similar equipment but their focus was different from that of the mining company û the contractors were focused on the development of the mine, the excavation of declines, crosscuts and drives. These deliverables were the contractorsÆ core business û itÆs what paid the bills.

Jan 1, 1999

By H. Allenius

Today, most requests for quotations force all bidders to follow the bid document to the letter. The choice is then made based on price since it is the only difference in technically identical offers. However, clients allow and even encourage suppliers to come up with alternatives. Overall economy again, is much more than low investment costs. Operation costs may affect the economy of a project far more than a million saved in investment. There is almost always the choice: Should we go for the cheapest solution or should we go for the most economical solution? We strongly recommend the study of the long-term effects on investments as they often surpass any apparent savings in capital expenditure. With high operating costs, time is never on our side. Almost all relevant inputs and outputs in a concentrator have a value that can be expressed in a suitable currency. Unit prices may differ substantially from one operation to the other, but everything has a price tag and globalization has made it possible to move both goods and services to almost any place in the world. Even a rather simple exercise can give a good indication on which process improvements are worth pursuing when investing in new systems or equipment. The ones that do not qualify, as money earners, will naturally appear as clearly. No ?rocket science? is required, just process knowledge, practical experience, an open mind and some common sense and the reward may be the difference of having a good or an excellent project. The model we have developed can be made as detailed as required, but we do not recommend too much detail, as it sometimes tends to distract work and obscure the important issues. Two different process solutions compared in a simplified example illustrate the importance of evaluating a project based on its long-term effects rather than focusing on the investment costs only.

Jan 1, 2014

By C Taylor, E Retz

Sequential Gaussian conditional simulation of wide-spaced exploration data has been completed in order to optimise a drilling grid at Fortescue’s Eliwana deposit. The aim of this drill grid is to improve the confidence in the Inferred Mineral Resource. A mineralised domain within the Joffre Member of the Brockman Iron Formation was selected to be tested as it makes up a large proportion of the Inferred Mineral Resource and is drilled at a reasonable spacing.One hundred realisations of Fe, SiO2 and Al2O3 grades were completed in the domain. Three realisations were selected for each analyte to represent the range of equiprobable values and a further realisation was selected to represent the truth data set. These realisations were used to flag theoretical drill holes on varying spacings and patterns. The theoretical drill holes were used to estimate into block models using ordinary kriging.These estimates were analysed and the accuracy and precision of each drill spacing was assessed. It was concluded that the greatest improvement in estimation results was noted at either a 100 m × 50 m or 50 m × 50 m spacing.CITATION:Taylor, C and Retz, E, 2015. How much do we need to drill?, in Proceedings Iron Ore 2015, pp 491–500 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

By R. W. Smith, D. L. Taylor, K. A. Altman

Recent research has shown that traditional sensitivity, what if and best case/worst case analysis of metallurgical data has the potential to over estimate the value of mining projects. Use of simulations, which rely on the input of statistical information, may provide more realistic predictions of the value of future projects. Actual metallurgical data is used to demonstrate that analyzing the data from a statistical perspective can give insight into completing an optimum amount of metallurgical testing and a mechanism to determine that samples used for the testing are truly representative of the ore that will be processed.

Jan 1, 2000

By N. G. Johnson

ALL of us are only too familiar with the fact that first the defense program, and finally the war, required vastly increased production from existing sources, and the discovery and development of new sources of minerals and metals. For this vast program, the explosives industry was well prepared. I use the term "well prepared" to cover all the phases of explosives service, which include formulation, design, manufacture, distribution, and application.

Jan 1, 1944

By Robert T. Chapman

Many of us are privileged in that we have witnessed the transition from mining methods used in the first quarter of the twentieth' century to those practiced today. In the late Twenties, for example, many mines still used hand mucking methods. In the middle Thirties, more than one large metallurgical limestone quarry still used the 4 cubic yard railway steam shovel formerly in use at the Panama Canal. Mules could occasionally still be found underground, where they provided the-main-source of motive power. Within the last decade, and even within the past five years or less, great improvements have been made in blast-hole drilling, ore loading, and ore hauling equipment. Industrial demand for minerals can be expressed in exponential terms as compared to that at the turn of the century. Even marine mineral resources are receiving accelerated attention. One overall result is that larger and lower grade orebodies can be exploited at a profit. This profit must be made despite, for example, a static monetary price for gold, and despite the continual cost escalation involving labor, materials, supplies, and equipment. Accordingly, the application of the necessary degree of knowledge and judgment required to meet production, cost, and profit goals is paramount.

Jan 1, 1966

By JOHN R. SUMAN

I WOULD like to spend a few minutes describing to you the present condition which exists in the oil industry and then point out some aspects of this deplorable situation in which I think petroleum engineers can be helpful. As you know, the oil business at this time is in a very critical condition, .due to the tremendous potential production in excess of current demand. This is a world-wide condition as well as a national problem, as it is estimated that the surplus production available for the market in foreign countries is of about the same proportion as that existing in the United States. Due to the inability within the United States to hold production within the bounds of demand prices have been slumping for the last four years and at this time have reached the point where the sales value of the average barrel of crude oil in the United States, is far below the cost, of production. In addition to the large amount of potential production available for the market in excess of demand we have in storage in the United States about six hundred fifty millions of barrels 'of oil. Unless something can be done to limit the amount of oil coming onto the market to a point well below the demand, which point will permit the reduction of stocks, it looks as though the 'oil business is facing demoralization.

Jan 1, 1931

By Bates H. Murphy

There is one quick way to substantially reduce the operating cost of a great many pining operations. It is to cut the demand charge on the use of electricity and gas. Demand charge is the utility company's charge for the maximum rate of energy usage which is in addition to the charge for the total amount of energy used. Energy demand is reduced by prohibiting simultaneous operation of devices, especially those that consume large amounts of energy, or by deferring the use of such equipment as air conditioners from one demand period to a subsequent period. To achieve that end, a control system can continuously measure the demand and turn off selected loads in accordance with established rules. Because of the complexity of most industrial plants, a computer is the best means of storing, measuring, calculating, and controlling the many variables associated with the many devices involved. A computer system for that use has been developed by the Westinghouse Computer and Instrumentation Division in Orlando, Florida. For most applications, this demand control system can be installed and operated by industrial plant engineering personnel with no special knowledge of computer technology. It can be used with both electrical and gas service. For clarity, let us examine electrical demand first.

Jan 1, 1974

By M Pyle, R Ch, T Vizcarra, ramohan, G Lane, G Ballantyne

Preconcentration, through gravity separation (Wallace et al, 2015), magnetic separation and particle size (Clout, 2013), has been used in many historical projects to convert low grade material into ore. More recently, pre-concentration technologies such as bulk sorting (Kurth, 2017), screening (Bearman, 2014) and coarse particle flotation (Vollert et al, 2019) have also demonstrated their ability to progressively reject waste through the value chain. These technologies can not only deliver stepchange improvements to the economics of mining operations, but can transform the environmental and social aspects by minimising water and energy consumption and significantly reduce the quantity of fine tailings produced. However, implementing progressive waste rejection requires technologies and approaches to be combined and applied in the right way to capture the value. From a technical perspective, progressive waste rejection introduces challenges related to the orebody, equipment performance, engineering and understanding the value chain from the resource through to final product. From a management perspective, the key issues are related to people and processes, in particular; motivating the business, challenging the paradigms, and introducing new ways of operating within the constraint of existing management structures to manage risks and minimise lost opportunity costs. This combination of technical and management issues means that progressive waste rejection is a complex undertaking for mining companies, yet the reward for the business and other stakeholders is potentially high and should not be ignored. This paper presents how progressive waste rejection can offer step-change improvements to the business case for high and low grade greenfield and brownfield projects based on case studies completed by Ausenco. The paper then outlines different implementation approaches from concept studies to execution to address the various technical and management challenges outlined above.

Nov 10, 2020