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By W. M. Peirce

FOR many years it was considered quite the proper introduction to any discussion of zinc metallurgy to remark that the methods of extracting zinc from its ores were archaic. Often there was an added implication that the industry in every phase savored of the days of alchemy. On rare occasions comments of this sort may still he heard. Fortunately, not only for the zinc industry but for the world at large, there is today no longer a basis for considering zinc metallurgy unprogressive. Progress in any industry is possible along three distinct lines. The methods of production may be improved, thereby reducing costs. In the case of basic materials, this may also have the important effect of increasing potential supply. Second, quality may be improved. Finally, the product may be made more valuable to consumers through increased knowledge of its utilization, thus holding old markets or opening new.

Jan 1, 1931

By M Orunesu Preiata

The Odysseus Project is part of the high-grade Cosmos Nickel Complex that lies 30 km north of Leinster. The Odysseus definitive feasibility study (DFS) was approved by the Western Areas’ board in October 2018. Early works commenced in January 2019 with rehabilitation of the existing underground infrastructure. In June 2022 Western Areas was acquired by IGO Ltd. The project is now well advanced to meet its target of first concentrate. The project included the construction of a haulage shaft. The design of the hoisting equipment and the shaft barrel evolved from the initial DFS design stage to the final execution, as the data were made available from the initial investigation to the data gathered during execution (although this did not change from its initial concept). The design philosophy for the haulage shaft incorporated, from the beginning a multidisciplinary approach with inputs from three main areas involved in such projects, namely excavation techniques, geotechnical assessments, and infrastructure construction. This interaction is a fundamental component for the success of such a critical project. In fact, each of these three areas influences each other in a cyclical manner, triggering a continuous review of the project inputs and outputs, while maintaining the original project goals: the design of an infrastructure able to deliver the desired throughput. The throughput dictates the infrastructure that needs to be built, which in turn controls the size of the shaft. The key assumption applied to this is that the rock mass can accommodate the excavation void, and the excavation technique with its tolerances and limits that ultimately need to be verified back with the initial assumptions used for the infrastructure design. The aim of the paper is to present a case study of the experience gained with the Odysseus hoisting shaft and to propose a possible logic path for similar projects elsewhere.

Mar 29, 2023

By Donald A. Ranta

Every mineral project or mine is based on a geologic entity-an ore (mineral) deposit. A well-defined mineral deposit and its associated geologic characteristics are the only aspects of a project that cannot be altered. Mine plans can be modified to exploit the deposit using alternative approaches and yielding similar results. A variety of processing methods also are often available producing generally comparable results. Major modifications can be made to other aspects of the project without substantially changing project economics. However, all engineering and metallurgical aspects of a mine must be accommodated to the spe¬cific location and geologic characteristics of the deposit. Geologic data and interpretations form the foundation for both mine evaluation and mine production by providing esti¬mates of reserves and essential information for mine planning and process design or control. Proper geologic work requires a keen awareness of and an ability to anticipate the technical requirements of geotechnical engineers, hydrologists, mining engineers, metallurgists, and other specialists. Geologists are inte-

Jan 1, 2008

Control of construction projects is the responsibility of the Project Leaders who have the authority to make decisions. Project Controls cost and scheduling systems provide the Leaders with timely information on which to base their decisions.The Client (Owner) will invest up to three per cent of the project cost on Project Controls. To ensure that this investment is effective, the Owner or Manager must have a clear understanding of the information required from the Project controls systems. If appointing a single Managing Contractor, the Owner or Manager must stipulate what is and what is not required from the Project Controls Systems. There are numerous computer programs available for scheduling and cost control and it is important to select systems which best serve the Owner's needs.

Jan 1, 1993

By B. McCosker

The choice of the appropriate delivery process for a project is often not adequately thought about. The industry needs to be prepared to break its preconceived mind-sets on delivery procedures. Industry should also be prepared, on a project by project basis, to commit to a critical review as to how the assessment and then selection of the best procurement method can best optimize the project outcome for both client and contractor. Conventional standards and biased reliances and experienced based preferences should be challenged. To achieve this requires a paradigm shift in attitude to both the process of tendering and the evaluation of tenders. Tender and contracting practices are dynamic and have moved away from solely cost based assessments. Tendering contracts arise imposing changed duties upon owners. Traditional contract delivery models have shifted, reflected in part by the trend towards relationship contracting. The categories of contract options are not closed. Many are but hybrids of other time-tested models. This paper considers options available for any brownfield or greenfield project. The principles outlined are translatable to supply, upgrade, operation and maintenance arrangements.

Jan 1, 2002

By Michael Feroz

Severe drought in the Colorado River Basin over the past 10 years has caused water levels to drop in Lake Mead by more than 113 feet. The current lake level is at elevation 1,112 feet mean sea level (msl). Lake Mead is the primary source of water supply for greater Las Vegas. Water for Las Vegas from Lake Mead is accessed through two existing submerged intake shaft and tunnel systems. If the water levels continue to drop in the lake, the Intake No. 1 will become inoperable below water level elevation of 1,050 feet msl. To sustain the current levels of water delivery to all member agen-cies in the southern Nevada region, the Southern Nevada Water Authority (SNWA) has decided to construct a third intake at a deeper depth in the lake to ensure better quality water and enhanced reliability.

"Chairman: Mr. K. F. LaneRapporteur: Mr C. T. ShawPapers:Design of crushing plant flow sheets by simulation by T. GurunThe impact of transportation networks upon the potential supply of base and precious metals from Sonora, Mexico by P. de V. Harris and D. E. EurestyProfitability sensitivity analysis of a mining venture by C. A. Beasley and E. P. PfleiderTechnological innovation and its potential effect on the opening of new gold mines in South Africa by N. C. JoughinMr Turgay Gurun, in presenting his paper, indicated that this simulator was no purely theoretical exercise, but that the model had been used in the design of crushing plants of capacities ranging from 3 000 tons per day to 66 000 tons per day, and that recently the design of a plant of capacity of 99 000 tons per day had been studied.The crushing plant simulator was an independent portion of a much more comprehensive simulator for the design of a. complete recovery plant. It would be possible to use each section of this simulator on its own, and simulators would be designed to cover flotation concentrates, cash flow analyses of the entire project, and so on.Each simulator would be backed by a comprehensive data bank. For example, the crushing plant simulator was backed by such a data bank which included the performance and cost data from five manufacturers for an average of 30 items of process and materials handling equipment each. This meant that data preparation involved generally less work than would be required for a manual calculation. On average, data preparation for one run took 30 minutes and three minutes of computer time on an IBM 360/40 completed the run. The model could be valuable as a design tool in that it allowed the designers an opportunity to make a thorough examination of many alternative designs. It was also of value to plant operators as it could be used to predict the consequences of operating decisions.This paper generated much interest and there were numerous questions and contributions, so many, in fact, that the discussion had to be cut short.It was pointed out by Mr K. F. Lane that crushing plants represented a very large capital investment. A plant designed for 40 000 tons per day at 98 per cent efficiency might well in practice be run at 50 000 tons per day at, say, 83 per cent efficiency. He asked how, therefore, their design could be investigated without building economic criteria into the model? The author conceded that this was a tender point. He would have liked to have given facilities for more variability of the metallurgical information. He pointed out, however, that while there was no overdesign for conservatism built into his system, some overdesign was inevitable as the performance characteristics given by the manufacturers were generally conservative. Also, in his system, if lower recovery was allowed for, the system would nut through more tonnage."

Jan 1, 2014

By Randy McMeekin, Chris Twigge-Molecey, J. Peter Blake

The business objectives of a metallurgical project determine targets and constraints, such as the range of products, production capacities, in-service dates, and capital and operating cost parameters. Permitting is usually left to the project team, as are decisions regarding site location, technology, and construction approach. Success requires an orderly methodology, represented in this book by front end loading (FEL) phases: FEL1 examines several alternative approaches; FEL2 ranks and eliminates less economically or technically attractive options; and FEL3 develops the preferred option to the point of major permit completion, with defined scope, schedule, and cost to submit for approval to proceed with implementation in FEL4. Working through FEL1, FEL2, and FEL3, the project definition improves, estimates become more accurate, and project risks are reduced. The project design basis at the end of FEL3 is the control document for project implementation in FEL4.

Jan 1, 2015

By C Pope, M Tannock

Mining exploration and development projects in Australia are being negatively affected by the highly complex regulatory and bureaucratic processes at all levels of government. These processes affect mining companies operating in Australia by impacting on timelines and the cost of developing a mining project. It is not uncommon for the granting of project approvals to take in excess of five years, meaning that mining companies struggle with productivity, efficiency, time frame and cost issues in respect to their projects in Australia. As the mining boom in Australia is moving from the investment to the production phase, it is now more important than ever to maintain a regulatory landscape that facilitates rather than discourages new investment.While one of our key arguments is that there is too much burdensome regulation and red tape in Australia, we are also strongly believe that regulatory intervention is necessary to ensure that appropriate checks and balances are in place to serve the public interest and manage environmental, health and safety, social and other development-related impacts that may arise from a mining project. However, the regulatory intervention in Australia has come to a point where it is excessive and starting to discourage valuable investment in mining projects for nominal return to the public. Excessive regulation or ‘red tape’ impedes productivity and competitiveness, deters investment and innovation and costs jobs, all of which ultimately impact on the growth of Australia and the standard of living of all Australians.This paper aims to examine and compare the federal, state and local regulations that govern mining projects in Australia. It will highlight how these regulations are unnecessarily complex, lengthy and duplicated and how they can be streamlined to reduce red tape. In doing so, the paper will evaluate the recommendations proposed by the Productivity Commission Report on Major Project Assessments released in 2013, which include the recommendation to move to a ‘one project, one assessment, one decision’ regulatory model.CITATION:Pope, C and Tannock, M, 2015. Project development and regulation red tape – a comparative analysis: does it need to be so complex?, in Proceedings Iron Ore 2015, pp 621–630 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

By B. R. Boardman

Project Environmental Approval is a multi-faceted issue. From a mining perspective, it is a costly item because of avoidable time delay. The government perspective is that the approvals are a necessary part of meeting departmental requirements to ensure that the wellbeing of other uses of the environment is maintained. This paper outlines some of the problems inherent in the environmental approvals process and makes recommendations to both the proponent and government about improving the efficiency of the process.

Jan 1, 1978

By L I. Rozman

"There have always been development projects that fall short of expectations. In the last decade, we have seen more than the usual number of mining and oil/gas development projects taking significantly longer to develop and costing materially more than expected. The recent resource-equity market slump proves that investors are now far more cautious about investing new capital in the mineral and petroleum resources sector.What have we learned since 2005? Why have projects missed their targets? Why do investors often feel misled?Valuation of a project and the estimation of value is a more complex process than the evaluation of the merits of project development. The merit of project development can be clear from a prefeasibility evaluation, but this is no reason to skip the rigour of a feasibility study. The valuation of any project that is developed with any added risk should be discounted for this added risk.The development of a project impacts on other stakeholders, and the indirect cost of these impacts can have material implications for the cost structure, time and ultimate valuation of the project for its financial backers. The development of new projects (and thereby supply) can also have an impact on commodity prices, and therefore an impact on returns for financial backers.This paper will provide commentary on the author’s experiences and observations as a project developer and operator for 25 years, before becoming a project financier a decade ago.CITATION:Rozman, L I, 2016. Project evaluation and valuation – an investor’s golden rule, in Proceedings Project Evaluation 2016, pp 31–36 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By R Knight

"In project evaluation there are two matters of keen interest to non-executive directors: the process by which an investment recommendation is reached, as well as the investment itself, as presented. It is sometimes mistakenly believed that Boards of directors are interested only in the result. That is not so. The process by which project evaluations are derived and socialised with the Board is as important as the result, sometimes more so.Setting aside the gloomy predictions of the doomsayers and looking through short-term volatility in supply and demand, the overall availability of mineral resources more often than not exceeds demand. There are in reality more development projects in prospect at any one time than are needed to meet the market. Only the fittest will prosper, although some others may survive.Optimism springs eternal in the mining industry and every project promoter, executive or entrepreneur has a convincing project development case. Some will create value for shareholders, but the historical evidence suggests that many will fail to meet the expectations set in their evaluation.Boards of directors make the final decision to invest, or not, in a new mine. Knowledge is power, and on that basis the balance of power favours management. Management has the facts (or in some cases, what passes for fact) and the passion to invest. The non-executives have the power of approval – yes or no – but before making a decision directors must demonstrate due diligence, the essential precursor to project approval.Management has a vital part to play in facilitating that due diligence process and in encouraging the independent thought processes of the Board. A closed approach by management fosters a negative, risk-averse attitude on the part of the Board. One that encourages an understanding of the rigour of the project evaluation process and the robustness of the result will allow directors to understand better the implications of their decision.CITATION:Knight, R, 2016. Project evaluation – a non-executive director’s perspective, in Proceedings Project Evaluation 2016, pp 11–19 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By John A. Wells, Leticia Conca, Kenneth G. Thomas

"Since about 2002 there has been significant capital cost escalation, not inflation, in the mining industry causing turmoil for successful project completion. Project capital costs have more than doubled and some cases tripled in this time period. This has rendered many projects to be economically challenged and in some cases not viable. In addition higher than expected operating costs have further adversely affected project metrics such as NPV and IRR. Capital cost increases for projects have been widely reported globally. This current paper reviews three items. Firstly, why such capital increases and the various components that make up capital estimates. Secondly, it looks at reasons why preliminary estimates, for example at scoping and pre-feasibility level, have been lower than the ultimate constructed costs. Such increases and differences in estimates have caused major problems for mine builders and have led to a general nervousness on the part of those providing project finance. Thirdly, what discipline is needed in project execution in an attempt to mitigate such capital increases. The paper will hopefully give a better understanding of the various issues and factors involved for those in the mining industry.INTRODUCTION The years 2012 and 2013 were a turbulent time for the mining industry. The European economic crisis, politics, metal price volatility and a wave of changes of CEO´s in some of the major mining companies all contributed to a challenging couple of years. Two issues stood out. First, the huge increases reported in the capital costs of projects, where increases of 100% - 300% were not uncommon and in some cases exceeded that during the first decade of the 21st century. Second, company write downs related to takeovers during the boom and the stabilization/correction in commodity prices. These have led to great uncertainty, made it difficult (or impossible) to raise project financing costs, contributed to the changes at CEO level and placed many projects either on hold or cancelled altogether. It is commonplace now to read of companies talking of reduced capital expenditure and making a complete review of their projects and operations to contain costs."

Jan 1, 2014

By B. Morris

This presentation will describe the process by which the Quebrada Blanca (QB) copper project in northern Chile was financed. It will also show how a relatively junior mining company addressed the problems created by its inability to provide its share of the equity funding and the guarantees required by the project lenders. QB is located in the semi-arid Andean highlands of northern Chile, 170 kilometres southeast of the port of Iquique and 30 kilometres west of the border with Bolivia, at an altitude of about 4,300 metres (14,000 feet). Figure 1 depicts the project's location. The QB orebody is a secondarily enriched porphyry copper deposit containing reserves of 85 million metric tons grading 1.3 percent copper. Underlying the enriched zone is a significant primary ore zone containing several hundred million metric tons grading about 0.5 percent copper. In the late seventies and early eighties Falconbridge and its affiliates spent $20-30 million dollars exploring the deposit and conducting feasibility studies. For a variety of reasons they decided not to develop the property which was returned to its owners, Empresa Nacional de Mineria (ENAMI), which is a Chilean state mining corporation. In 1988 ENAMI announced its intention to privatize the property through a public bidding procedure.

Jan 1, 1993

By T Ireland

The Project Hobson tunnel excavation was the first use in New Zealand of an earth pressure balance (EPB) tunnel boring machine (TBM). The tunnelling on the project was very successful and break-through was achieved three weeks ahead of program, demonstrating that tunnelling can be undertaken in Auckland with a high degree of cost certainty.Project Hobson involved the replacement of an existing 90 year old above ground sewer that crosses Hobson Bay in Auckland, New Zealand, and which had reached the end of its economic life, with a 3 km long, 3.7 m internal diameter segmentally lined bored tunnel. The NZD$ 118 M project has provided several environmental benefi ts to the Owner, Watercare Services Ltd and the local community:· provide capacity to meet projected growth in the region,· virtually eliminate wastewater overflows into Hobson Bay and the Waitemata Harbour, and· remove an obtrusive visual feature and open up the bay for recreational purposes.Auckland’s bedrock is a weak sandstone/siltstone (East Coast Bays Formation), subject to infilled paleovalleys. The geology in the region has been significantly influenced by volcanic activity; 49 volcanoes are present within 20 km of the city centre.The paper describes the design and construction challenges for the projects, including TBM performance, ‘sticky spoil’ management, and risks associated with basalt lava flows and two paleovalleys. The paper also highlights the reasons for the success of the project, including a rigorous approach to risk management during design, and effective planning during construction. Other useful data such as the effect on the watertable caused by closed face tunnelling, and ‘faceloss’ estimates derived from settlement arrays are included in the paper.Project Hobson also saw the successful implementation of a Geotechnical Baseline Report – one of the first uses of this type of document in Australasia.

Mar 8, 2011

By Randy McMeekin, Chris Twigge-Molecey, J. Peter Blake

The project implementation phase, FEL4, is generally a complex undertaking. The project has been approved for construction and the capital has been allocated. At this point the project team comes under significant pressure to meet the safety, schedule, cost, and start-up committments. For the design team the principal tasks are to finalize detailed design, complete procurement, and issue construction contracts. Design activities must be closely coordinated with equipment and material procurement. A clear engineering plan should be based on well-defined work packages to meet construction, commissioning, and startup requirements. A range of review processes by discipline, area, and third parties assure quality. Constructability, safety, and hazard reviews are performed throughout the design process. Three-dimensional models that incorporate extensive databases help to maximize efficiency and minimize errors. Well-managed projects have a clearly accountable design team, rigorous change control processes, and well-defined workflows. Key individuals from the design team participate in commissioning, operator training, and startup.

Jan 1, 2015

By W. R. Hibbard

Emerging from discussions of U.S. energy policy: from the Project Independence Blueprint; from President Ford's statements to Congress; and from several independent appraisals of the situation; there is a clear objective to achieve an appropriate balance of supply and demand in the near term future (1) by developing more efficient ways of using energy and (2) by extending domestic sources of energy. More specifically, the strategy for achieving this goal has three parts (1) Conservation of energy through greater efficiencies in automobiles, appliances, lighting, heating, and industrial processes. (2) Increased domestic production of oil and gas through new sources such as the outer continental shelf and new efficiencies such as tertiary recovery. (3) Substitution of coal and uranium for oil and gas in utility power plants and industrial heating. The goal of energy research and development is to help achieve these goals and to help minimize the economic, environmental and social impact of our shift from imported energy to domestic sources. The focus of this paper is the implications of the expanded use of coal, and the research and development which may help achieve the above goals in so far as coal is concerned.

Jan 1, 1975

By O C. Aitken

Mining project developers are committed to taking on all the challenges and obligations of financial risk management. It is interesting that our current models of project finance have not changed markedly in principle for some 700 years, yet the rules which prepare the way for effective project assessment and subsequent loan management still do not seem to be well understood by project or corporate developers. Probability and gravity fill the opposing trays of the golden balance of financial risk. Understanding the relationship between these opposing, but intimately related elements is critically important for successful risk management. It is important to move beyond the qualitative approach and use quantitative methodologies to measure the financial impact of the occurrence of each major risk. We live in a world where the only constant is change and thus it is not surprising that a bankerÆs life is still governed by assessing, measuring and pricing risk. Banks are attracted to funding well managed companies with strong cash flow projects. But we are more risk averse compared with the credit appetites of late last century. This attitudinal shift has resulted in tougher term sheets for the early 21st century, encompassing more conditions, warranties, undertakings and stronger cash sweep provisions. Banks require well balanced portfolios to achieve an acceptable spread of risk, thus there is a more restricted market for small company lending than that available to large multi-project corporate entities with less concentrated risk profiles. Because of this focus, junior company debt finance remains comparatively expensive and especially so for more challenging geographical and political environments.

Jan 1, 2004

By J. Herhold, S. Plaum

"Increasing worldwide energy demands, coupled with desires for cleaner energy, have led to greater research of renewable energies. Strongly weather-dependent energy sources, e.g. solar and wind energy, are unable to provide a constant control energy to withstand the fluctuation of the extensive power systems during peak hours. The pump storage plant Nant de Drance in Switzerland will not only have the capacity of a nuclear power plant, producing 900 MW, but will also combine the environmental aspect and the demand for controlled energy. Nant de Drance is one of the pioneer projects for upcoming energy challenges and serves as a model for future pump storage plants. This paper focuses on the planning process and the project execution of interdisciplinary large-scale projects such as Nant de Drance, including project related data handling, communication systems and project handling skills. Furthermore, the paper discusses mining excavation in the context of large scale projects and their regional environmental challenges, e.g. high alpine rock mass on the site of Nant de Drance. PROJECT BACKGROUND Project Overview Nant de Drance is a 900 MW pump storage plant located in the Swiss Alps. To provide such a high energy storage, six turbines (reversible Francis type), each with a capacity of 150 MW, were installed. Due to the efficiency factor of 80% the pump storage plant is able to provide an energy production of 2500 GWh per annum. Construction of the pump storage plant, which has been selected as “Major Tunneling Project of the Year” in 2014 by NCE and ITA-AITES, will be completed over 10 years. Therefore, the project has been divided in six major phases outlined below: - Launch: 2008 - Access Gallery: 2010 – 2012 - Excavation KMA, KTR: 2011 – 2014 - Concreting KMA, KTR: 2014 – 2016 - Installation of HEM equipment: 2014 – 2018 - Tests & entry into service: 2017 – 2018 Figure 1 outlines the single process phases of the project. For the construction of the shafts, galleries and caverns, 1.7 million m³ of metamorphic rock with sedimentary origin (mica schist & paragneiss of the massif „Aiguilles Rouges“) were excavated. A tunnel network with a total length of 15 km was created. The machine cavern measures 194 m long, 32 m wide and 52 m tall."

Jan 1, 2016

By Steve Thoman

After the 1989 Loma Prieta Earthquake, the California Department of Transportation (Caltrans) initiated an overview of the Caltrans Bridge Design Specifications (BDS) and bridge seismic design practice in California. This overview is continuing under the direction of the Applied Technologies Council (ATC-32), to review and revise as necessary existing standards, performance criteria, specifications, and practices for design and construction of new bridge structures within California. The ATC-32 project began in August 1991 and is expected to be completed in 1995. Since 1990, Caltrans project-specific seismic criteria have been developed and implemented on the I-280 and I-480 projects in San Francisco. Caltrans and an independent seismic safety review panel continue to develop and implement these criteria on other projects. In 1991 and 1992, project-specific seismic criteria were used on the I-880 reconstruction project in Oakland. The seismic safety review panel considered the I-880 seismic design criteria a state-of-the-art methodology to ensure seismic safety against collapse of bridge structures subjected to a maximum credible seismic event. This paper highlights the 1992 "I-880 Reconstruction Project Seismic Design Criteria Review" report prepared by the Seismic Safety Review Panel and Caltrans Division of Structures and will compare pre-1989 BDS and AASHTO methodologies to the I-880 criteria.

Jan 1, 1996