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By Clark Woodland, William E. Stanley

Mining companies have been required to enter a "new era of management" in the 1980's as they strive to become more efficient in an increasingly competitive market place. One response for many companies has been to modify their mine accounting systems to make them more effective for cost control and decision-making. This paper discusses some of the major issues in developing and implementing a standard costing system as part of improved management reporting and cost control procedures. It describes the key features and benefits of a computerized standard costing system with particular emphasis on budget-setting and variance analysis. It also identifies important factors to be considered in order to achieve successful project planning and Implementation.

Jan 1, 1987

By Steve Karl

Introduction Technological advances in mining and processing have started the domestic mining and mineral industry back on the road to competitiveness. A massive trade deficit, however, coupled with foreign competition and more government regulations threaten to slow this recovery. So say mining executives in Colorado and Minnesota. These industry decision-makers agree that their challenge is to continue the technical innovations of their industry. The journey back to profitability and competitiveness means improved products, they say, but at lower production costs. At separate gatherings in January, officials in both states said that they believe their industry is up to the challenge. Worker attitudes will have to change, they understand, and management styles will need adjusting. And, while they are willing to make the necessary adjustments, they are going to need some help. Or, at the very least, less interference from the federal government. Foreign markets, all but closed to American products, must be opened up on a reciprocal basis. The nation's $170 billion trade deficit is a priority item that can no longer be ignored. And, closer to home, federal and state environmental regulations concerning mineral production must themselves be monitored. 1987 in Colorado While Colorado's service and trade industries should have a fairly good 1987, the state's mining industry can expect another disappointing year filled with layoffs and declining profits, according to the Colorado Mining Association. Once again, foreign competition and government regulations are seen as the main reasons for the mineral industry's woes. And state mining officials see little relief until at least the 1990s. Speaking to a group of reporters at its annual press briefing in Denver, CMA officials said Colorado's overall nonfuel mineral production is expected to fluctuate between a flat and declining growth trend. Mining employment in the state is expected to fall by 400 people this year, to about 7500. In 1981, Colorado mines employed as many as 17,800 people. During the 1970s and early 1980s, the employment rate in mining in the state grew by 12% annually, according to a summary report compiled by the CMA. Last year, worldwide molybdenum production continued to exceed demand US moly producers, therefore, were forced to continue their familiar path of production cutbacks, as well as workforce reductions. And some molybdenum mines in the US closed altogether, the CMA report stated. In Colorado, Amax's Climax and Henderson molybdenum mines operated at about 50% of combined capacity. Climax employed about 200 people at the beginning of 1987, producing about 5.4 kt/d (6000 stpd) or ore. Henderson employed about 700 people, producing about 24.5 kt/d (27,000 stpd) of ore. In coal, the number of licensed coal mines in Colorado has declined from 124 in 1960 to 43 in 1986, of which only 23 were producing. Once a stable source of employment and production, the metallurgical coal industry in the state has only one surviving metallurgical coal mine, Mid-Continent's Orchard Valley mine. High production and transportation costs, weakness in the US steel industry, and a weak market position have contributed to the decline, the summary reported. "The challenge facing most mining companies in the United States today is to survive," said

Jan 3, 1987

Currently all engineering schools face a common problem, an ever expanding technological base which must be presented to students within a fixed time period. Traditionally the programmes of study taken by engineering students destined for employment within the mineral industry include formal instruction in aspects of management to an extent greater than that presented in other engineering disciplines. Providing an adequate coverage of an expanding technological base within a fixed time span can lead to a reduction in the time available for 'non-technical' subjects, such as 'management'. This situation calls for periodic review of course contents and allocations of time. Following consultation with an Advisory Committee representing the mineral industry, mining research establishments, and kindred teaching institutions, the University of Melbourne has revised its mining programme. This programme is offered as an example of how aspects of management such as communications, economics, labor

Jan 1, 1980

By M. J. deBastiani

The uranium producing division of Denison Mines Limited operates a 6,000-ton-per-day integrated mining unit in the Algoma area of Ontario. The property is located approximately one and one-half miles from Highway I 08, eight miles north of the town of Elliot Lake. The property was staked in 1953, diamond-drilled in ?late 1954 and 1955, and put into production in 1957. Since that date, the operation has produced $250,000,000 worth of uranium oxide from approximately 11,000,000 tons of ore milled, and paid $18,000,000 in dividends to its shareholders. The operation employs about I000 people, and monthly operating costs are approximately one million dollars. From these figures alone, it is obvious that it was necessary to develop and institute an adequate set ?of controls for effective management at all levels of supervision over a period of four years, a system of production and cost control was developed that enables us to effectively measure the pulse of the various phases of the operation at any given time.

Jan 1, 1963

By R. L. Hills

America's industry uses about 44% of the total energy consumed by the nation directly as fuel burned in industrial plants or indirectly as fuel burned by utilities to provide electric power. In addition, industry requires raw materials or feed stocks derived from fuel sources or having fuel value. This represents about 11% of total U. S. energy consumption, bringing industry's portion to about 55%. Adding that portion of energy consumption required by the transportation sector to move raw materials, intermediates, and finished products, the total energy impact of industry approaches 213 of total U. S. consumption. It is obvious that American industry has the largest share in the task of balancing energy demand and supply. What are we going to do? -- We must increase the supply of energy and increase the beneficial results obtained from each unit expended. Both avenues, unfortunately, are limited in extent and speed. Increases in supply cannot occur without drastic and permanent increases in cost. These increases in cost are un- desirable and inflationary but do provide incentive for the rational businessman to expend the effort and money required to improve the effectiveness of energy in industry.

Jan 1, 1975

The 1990s present many challenges, not the least of which is in the area of health and safety. Integrating of safety and health into the management process to suit the overall needs of a company will require commitment. Organisations which consistently perform to high success levels do so because they plan it that way. By using tools of total quality management, the potential to continually improve all safety processes exists. The successful integration of total quality measurement principles used in the improvement of safety processes, and the measurement of performance-based activities allow for prevention of accident causing scenarios and performance improvement.

Jan 1, 1993

By R. G. Eggert, M. R. Walls

A mining CEO's willingness to participate in risky investment opportunities significantly affects a company's strategic-investment decisions. Decision-analysis techniques provide a mechanism for measuring a CEO's risk tolerance and ability to make formal comparisons of risk propensity among mining firms. The authors developed a methodology for measuring CEO risk tolerance. The findings from a confidential survey of mining CEOs are presented. The results from the survey suggest that: •mining CEOs are overwhelmingly risk averse when considering investment decisions; •CEOs of small mining firms are significantly more risk averse than CEOs of large mining firms; and •there appears to be some differences between Australian and non-Australian CEOs regarding their willingness to participate in risky investments. The results of this survey suggest that CEOs are pursuing objectives other than, or in addition to, maximizing shareholder wealth and that they act to reduce the financial exposure associated with strategic investments.

Jan 1, 1997

By Paul D. Tomlingson

The difficult and often harsh working environment of the mining industry can stress both personnel and equipment to the extreme. Often, the unintended consequences of this environment lead to confrontations between departments, as each goes about its tasks of mining, maintaining or supporting these activities. On occasion, the confrontations may result in criticism of other departments for perceived or real sins or omissions. The offended department may not be able to change the circumstances, but can only complain while frustration persists. The most effective solutions are the actions of the mine manager. By establishing mutually supporting roles of each department and specifying conditions for the interactive conduct of maintenance, the mine manager can better assure that the inherent problems of the mining environment are neutralized.

Jan 1, 2011

By John MacDonald

An unstable economy has shown businesses what the mining industry has known for decades ? a successful business location today may not succeed in the future. Unexpected expenses, natural events and workforce changes have a big impact on the costs of production. To help focus production and maintenance budgets, mining executives are increasingly turning to production metrics to make key decisions. Role of mine and mill data Companies employ a variety of information systems to allow employees to accomplish their operational tasks, and each worker is focused on the metrics, or key performance indicators (KPI), for his or her individual function. For example, machine operators monitor throughput and cycle time to keep the machines running continuously and to meet daily production quotas. Meanwhile, the maintenance teams monitor machine performance, overall equipment effectiveness (OEE) and meantime between failure to predict and help prevent downtime.

Jan 1, 2013

By L. R. Stace

Arguably, one of the most significant technological breakthroughs that had been experienced during the period when British Coal was the major coalmine operating company in the UK, the use of rockbolts as principal support in underground roadways brought with it the need to re-assess the technical knowledge, management controls and legislative frameworks associated with the support of mine workings. Following a major roof fall in a roadway supported principally using rockbolts in which fatalities occurred, the process of the design of rockbolted support and the systems and procedures that had been put in place to control its use in the UK were further reviewed. The paper discusses the outcome of these reviews, and how the incident initiated a major new interest in strata control research in the UK against the background of the fragmentation of the ownership of the mines following the sale of the former British Coal assets at the end of 1994, together with the proposed introduction of new strata control legislation in 1996.

Jan 1, 1996

By J. Burrows

The Chamber of Mines of South Africa is an association of major mining corporations, gold mines, coal mines, diamond mines and other metalliferous mines. It looks after those interests of its members which can best be handled on a co-operative basis. The Chamber's activities include the engagement of labour; the negotiations of all labour matters, including minimum wage rates, with recognised trade unions and associations; the carrying out of advanced technological research; representing the industry in dealings with the government and the administration of miners' training colleges and rescue training stations. Subsidiary companies of the Chamber handle matters such as the refining of gold and other metals; the processing and marketing of uranium and the marketing of Krugerrands. The thirty-two gold mines members of the Chamber of Mines of South Africa produce approximately 694 tons of gold per annum. To achieve this they employ 430000 persons and break about 8400 kilotons of rock per month. The working revenue is approximately 4 225 million US dollars per annum and the annual working profit is approximately 2 050 million US dollars. The electric power consumed by the gold mining industry is 1650 MW, about 20% of the total power produced in South Africa, and the annual costs of this power is approximately 200 million US dollars per annum. It is estimated that about 25% of this power is used for ventilation and refrigeration appliances. Thus the annual power costs for ventilation and refrigeration is approximately 50 million US dollars. The gold bearing reef is a narrow tabular deposit situated at varying depths throughout the gold fields. The weighted mean rock breaking depths and, virgin rock temperatures range from 1 700 - 9 000 ft (520 - 2 740 m) and 68 - 113°F (20 - 45°C) respectively. The maximum virgin rock temperature at which mining currently takes place is 130°F (54.5 C). Obviously at such depths and temperatures and with such a large labour force the provision of an acceptable environment is critical and to achieve this 59 000 000 cfm (28 000 m3/s) of air is downcasted during the main shift and 122500 tons (430 MW) of refrigeration are provided. Legislation in South Africa requires that on metalliferous mines when more than 1000 persons are employed underground during any one shift the manager shall appoint one or more ventilation officers. The legal responsibilities of the ventilation officers are concerned mainly with the measurement and control of dust. In practice, this is not the main part of their work and ventilation personnel perform many other duties such as measuring and controlling the distribution of air, checking the performance of fans and cooling plants, planning air and refrigeration requirements and, more recently, measuring and controlling noise and illumination levels. Ventilation personnel are specialists who provide management with advice on all matters relating to the mine environment. At the present time there are 506 persons engaged as ventilation personnel in gold mines and a further 1744 persons are employed in gold mine ventilation departments in a non-technical capacity, for example as construction workers, filter cleaners, fire patrollers, etc.

Jan 1, 1980

By M. Ruel

In today's highly competitive worldwide market, it is becoming extremely important for managers to make sure that all resources are used where needed the most. That way, all resources are generating added value, process control equipments are maintained in an optimal state for best performance, and final product is produced at least cost. Performance monitoring is the only way to ensure that everyone is working on top priorities toward the same goal. How can we add value to these warehouses of data? The data is there and the information is hidden; it is just waiting to be extracted. A process performance monitoring system is able to determine if a loop, a system, a unit, or a plant meets the expected performances. The system prioritizes the areas that need attention. It also provides historical reports of the plant status by areas, by loops, and by identified problems. This information is provided to different categories of users in an appropriate format for each one. The system also includes diagnostics and tools to detect and analyze problems.

Jan 1, 2007

By E Selvapandian, R Barr

Arrium (previously OneSteel) initiated a desktop study into the performance of its hematite ore beneficiation plant in early 2010. The beneficiation plant utilises jig concentrators and spirals to upgrade low-grade hematite recovered during mining at the Iron Duke (ID) mine site located 60 km south-west of Whyalla. The study, conducted in conjunction with Mineral Technologies, identified a number of opportunities for improvement, which were validated by a series of sampling campaigns and a pilot plant trial. One of the major recommendations was to upgrade the ultra-fines processing circuit from a single-stage spiral circuit to a three-stage circuit. The upgrade of the ultra-fines circuit was estimated to provide a significant increase in fines production and grade.In order to capitalise on the strong iron price at the time of the project, Arrium decided to utilise a fast-tracked approach to design, construct and commission the processing equipment required to achieve the improvements identified. This decision introduced the risk of missing critical steps in the project development process, which could have potentially resulted in major issues in latter stages of the project. In addition to the challenges introduced due to the expedited time line for project completion, this project presented unique challenges due to its brownfield nature. One such challenge faced was the integration of the new equipment and control system software.Furthermore, the importance of the ID ore beneficiation plant (OBP) contribution to the companyÆs export commitments meant the upgrade work had to occur while minimising disruption to normal operation. This decision presented a set of new challenges to an already complex project. One such challenge was the need to build and commission the new spiral circuit in isolation from the operating plant.The aim of this paper will be to highlight some of the challenges faced in a complex brownfield project such as the ID OBP upgrade and discuss how they were managed to enable the successful commissioning of the process in early 2012.CITATION:Selvapandian E and Barr, R, 2013. Managing challenges faced in the brownfield commissioning of an ultra-fine hematite processing circuit at ArriumÆs Iron Duke ore beneficiation plant, in Proceedings Iron Ore 2013 , pp 533-538 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 12, 2013

By John Campbell, William Trahant

"Total Quality Management (TQM) is becoming a reality in the mining industry. Widely adopted in the manufacturing and services industries, TQM has become the operating style of choice in numerous mining companies across the Americas and Australia. Iron Ore Company of Canada, Inco, MSA, Graniterock, Magma Copper, and CRA's Hamersly Iron - all are pioneers of TQM. These companies and others are confronting the challenges of implementing TQM and are managing the changes required of their people and cultures. What these companies are doing, why they are doing it, and how they are successfully managing the changes are the subjects of this paper.Driving the need for change in these organizations are a host of issues, some of which all mining companies are facing. Requirements from customers for ISO 9000 certification is becoming one of the initial motivators for Total Quality Management. These standards, commonly used in manufacturing throughout the European Community (EC), emphasize quality in the processes that create outputs, instead of just the outputs themselves. Iron Ore Company of Canada, for instance, responding to the requirement of one of its customers, British Steel, has become one of the first mining companies to meet the quality standard. Suppliers who meet the standards are highly desirable to customers who are themselves operating under the ISO or their national quality guidelines."

Jan 1, 1995

Brunswick Mine, one of the largest underground zinc mines in the world, is scheduled to close in 2010 after almost half a century of production. All mines eventually close; some suddenly as a result of unsustainable economic or technical conditions and others, as in our case, as a result of the depletion of the orebody. When the mine is the most significant employer and an economic driver in the region, it is key that the closure is handled in a planned, communicated, well-executed fashion. The following paper documents strategies, plans and activities that are currently taking place in order to ensure a seamless closure that satisfies all stakeholders including employees, management, regulatory bodies and the public. It is an important deliverable for the company that the good will, credibility and reputation that has been built up over the years is sustained throughout the closure process and beyond. A life of mine labour agreement with the unionised workforce, staff retention and recruiting programs, regulatory closure plans, communications and transition adjustment activities will be discussed. The use of a stage-gate style project management tool analysing the risks and key deliverables will be highlighted. It is hoped that the concepts and approaches discussed here may be of value to other operations that will be faced with closure, and its inherent challenges, in the not too distant future.

Jan 1, 2006

By P Brown, M Nagarajan, A Green, P Dare-Bryan

Coal loss is an important issue at many coalmines, with losses of five per cent being common. The type of loss varies from mine to mine but is dependent on mine strata, the drilling and blasting processes applied and the mining method used. Typical coal loss mechanisms from the drill and blast process are coal roof damage and edge loss. Usually a reduction in coal loss is in direct competition with the need to provide material that is well-fragmented and a muck pile that has the required cast percentage. These competing issues were addressed over a two-year period at a mine in the New South Wales Coalfields by implementing a five-step approach. This was centred around building an understanding of the coal loss mechanisms utilising proprietary heave- modelling software, measuring coal losses by comparing survey to drill and/or gamma logs and implementing appropriate coal loss reduction processes. The end result exceeded expectations with a 95 per cent reduction in coal loss. Mine excavation productivity was maintained and coal loss minimised to less than one per cent of the in situ coal block.CITATION:Nagarajan, M, Green, A, Brown, P and Dare-Bryan, P, 2015. Managing coal loss using blast models and field measurement, in Proceedings 11th International Symposium on Rock Fragmentation by Blasting, pp 429–436 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 24, 2015

By J Jones

A common problem in the mining industry is that company exploration groups operate in relative isolation to the rest of the company; resulting in poor knowledge transfer (Qureshi and Briggs, 2006) and often priority conflicts with mine geology, operations and project departments. In recognition of this problem, Newcrest created a Minerals Division responsible for stewardship and governance of mineral assets across the value chain from reconnaissance to rehabilitation. It was recognised at an early stage that effective collaboration both internally and externally would be required to improve decision making, deliver faster cycle times and improve governance.Collaboration in companies is generally associated with the introduction of new IT functions. However, modern IT-based collaboration systems and practices are relatively simplistic compared to the long-standing practices associated with collaboration and knowledge management in science and engineering disciplines such as geology and mining.The authors of this paper have started a trial of a 12-point plan for effective collaboration, which recognises that significant efficiencies can be gained and barriers to future success removed if more effective collaboration can be achieved between science and engineering divisions in a company along with external professionals and with the collective intelligence (Tapscott and Williams, 2006) of the outside world. To meet growth aspirations some companies, like Newcrest Mining Ltd, are adopting this comprehensive, step change approach by moving from a closed model the isolates mine geologists to an open and collaborative model that uses IT visualisation systems strategically. The paper describes how an open model provides people with the right work environment and the right information at the right time, which will help individuals and workgroups to work more collaboratively day-to-day. The aim is to achieve speed, focus and mitigate risk through an environment where everyone and anyone can contribute effectively (Cisco, 2008).

Aug 22, 2011

By S McEachern, J Lowe

An important issue currently facing the mining industry in Australia is the management and cost to the industry and other stakeholders of entry into and exit from towns and their communities. These costs can be environmental, social, economic, political or reputational. The ability of companies to engage the trust of stakeholders, including: communities, governments and investors, is critical, and corporate reputation plays a significant role in this. For the industry to secure a long-term and sustainable future, it must have the technical, business and reputation assets to proceed in a cost-effective, environmentally acceptable and socially supportive way. This research assesses reputation as a critical competitive issue for mining companies, as technology and information make mining more predictable; the physical and human assets of mining companies are less likely to be the critical resource in a Resource Based View model of competitive advantage. The proposition is that in mining today, reputation as it facilitates day-to-day operations, regulatory zeal and access to new mine sites will become the rare, inimitable and valuable resource for mining companies. This paper reports on an ongoing research program to evaluate the impact a mining companyÆs reputation(s), with its various stakeholder groups, has on a companyÆs ability to sustain competitive advantage. Integral to this study is to develop an understanding of the relationships between mining companies and their stakeholders, and the importance of corporate citizenship polices to reputation and hence to corporate sustainability. Through the identification of the drivers of reputation for the various stakeholder groups, a model of reputation formation will be developed and also reputation measures for the mining industry in Australia. The preliminary findings of this research, the results of an industry focus group conducted with representatives from regional mining operations, are reported. The industry focus group was designed to enable a better understanding of who are the main stakeholder groups and how they regard mining companies and to inform the second stage of the research project a Delphi Study of the drivers of reputation by stakeholder groups. The aim of this research is to further the understanding of the relationship between corporate citizenship, reputation and performance in the mining industry, thus assisting companies to strategically manage their corporate citizenship investments.

Jan 1, 2006

By G. F. Trainor

The complex ore body at CNRL?s Horizon mine presents some unique challenges in managing ore and waste delivery. With 25m x 25m ore blocks shovels often take bucket loads from multiple blocks to fill one truck load. With CNRL monitoring 22 different qualities per material a precise calculation of the blended quality of ore on the back of each individual truck is essential to meet the daily blend requirements at the plant. Additionally, one of these qualities must be closely monitored and controlled at a singular level as delivery of certain grade and quantities can cause serious disruptions at the plant. The waste material also requires special handling and delivery for its use in dyke construction for tailings impoundment. Shale materials used in the construction contain high levels of saline that must be contained to prevent seepage into ground water. This paper will discuss how the use of Wenco?s survey-grade GNSS system on shovels, its dispatching algorithm, and fleet management applications give CNRL the ability and confidence to control and report on these three issues.

May 1, 2013

By J Loeb, R Ramanathan, H Ingham, P Cameron

Most mining operations, including iron ore, maintain a focus on continuous improvement and asset optimisation in their operations. As all the unit operations in the Mine-to-Mill value chain are interdependent, available technologies that address efficiencies across the value chain are once again in the spotlight as companies are driven to improve productivity and maximise mine site profits to increase return on capital invested. Core to continuous improvement is the need to understand the baseline and impact of changes to the process. In this paper, we discuss some of the critical attributes in the Mine-to-Mill process, including their influence on productivity and cost, the need for direct measurement and areas where they should be applied. Many initiatives can be considered to improve Mine-to-Mill processes. Mining operations are planned and executed based on designs and models to achieve the operation's objectives. However, there are many variables in the different parts of the value chain, such as blasting, material handling, crushing and screening. Therefore, measurement of the key attributes establishes the baseline for Mine-to-Mill (or Pit to Plant) performance, which is necessary to understand the impact of any proposed improvements to the process design and execution and monitor the outcomes on an ongoing basis sustain the improvements that have been implemented. This paper focuses on two types of measurement – blast movement and particle size of materials through the Mine-to-Mill process. Several innovative technologies and control loops are readily available to measure these attributes and assist operations to improve productivity and mine site profits. The size of the tangible benefits, which can flow from measuring and optimising fragmentation and blast movement, provide a remarkable return on the investment. Realising these benefits needs a focus outside conventional operation silos as a successful Mine-to-Mill project requires a multidiscipline approach across all the silos in the value chain. Required technologies are available; adding the necessary ingredients of communication and co-operation by all concerned across the silos will ensure the benefits are realised.

Nov 8, 2021