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By W.A. van der Westhuizen

Mineral resource management has become a well used phrase in the mining and minerals industry. Mineral resource managers are being appointed in many mining and mining-related organisations. Every mineral resource manager has his/her own ideas regarding what MRM means. There seems to be a tendency to define MRM close to home; geology would apply MRM principles to their environment and so will metallurgy, planning, mining, survey and every discipline and participant in the mining value chain. What do we do in the MRM environment and what do we aim to achieve? Surely we must have goals: what are they? Is value tracking MRM? What about best practices? Let us start at the beginning: what do we want to achieve in any mining operation? The minerals industry would like to make money, now and in the future. This calls for serious management inputs. The most important aspect is a holistic management approach regarding the total mining value chain. Process optimisation follows with application of Mineral Resource Throughput Management (MRTM) and Process Flow Management principles. Once flow processes have been established the necessary condition driven standards and measurements will be installed to ensure continuity in applicable processes.

Jan 1, 2012

A variety of algorithms and methods are being used by the mining industry today to map mineral resource for reserve estimation. The traditional methods including Polygonal, Sectional and Inverse Distance methods are relatively easy to understand and implement. They have served industry well for several decades and should continue to do so for the large bulk mineable deposits with very regular geometries with relatively small variation in grade.

Jan 1, 1992

By R C. A Minnitt

The Witwatersrand Supergroup is host to the world’s largest gold deposits. The location, quantity, grade, continuity and other geological characteristics of a Mineral Resource are either known, estimated from specific geological evidence and knowledge, or interpreted from a well constrained and portrayed geological model. Establishing such a model is an integral part of the evaluation process in the Anglogold Ashanti (AGA) group, and is referred to as a Geoscience Business Model for the mining operations. The geological model established over the years has relied on detailed descriptions of the mineralisation, and understanding of the regional and local geology of the Witwatersrand sediments, in the West Wits and Free State goldfields. The processes of data collection in regard to underground stope and developing mapping, structural and sedimentological mapping, and the geological inputs to mine planning systems are described, together with aspects of drilling, sampling, grade control, and data management. Anglogold Ashanti’s Geoscience Department employs a complex and unique process to generate the Mineral Resource, including a 3D geological structure model of the orebodies which are usually highly faulted, and a robust mineralisation/facies model on which the decisions about domain boundaries are established. A Mineral Resource Inventory System (MRIS) has a dynamic graphic interface to the resource database that is used for compiling the resource statement. It is also used to determine the gold-called-for, as well as short and long-term planning. A unique estimation process using the extensive closely spaced stope face sampling database and the more widely spaced surface drilling information is used in combination in the Macro Co-Kriging estimation. The use of different support sizes in the C0-Kriging process is preceded by the equally unique ‘clusterisation’ and ‘acceptorisation’ procedures by which the data are quality controlled and assured prior to their use in the kriging process. The Mineral Resource and Ore Reserve estimates are classified according to the SAMREC code through a method that ensures that they are compliant, auditable, transparent and reconcilable with previous Mineral Resource and Ore Reserve statements.

Aug 22, 2011

By N. Madani, S. Abulkhair

In multivariate geostatistics, it is common to have different types of complexities between variables of interest. In this context, an inequality constraint is an example of complex bivariate relationships. Unfortunately, traditional co-kriging and co-simulation algorithms cannot reproduce this type of bivariate complexity, leading to the overestimation of disturbing elements. This paper proposes a new algorithm based on a hierarchical sequential Gaussian co-simulation framework, integrated with inverse transform sampling, to model inequality constraints between variables. First, the proposed methodology's validity was evaluated by applying it to a real case study from an iron deposit, with an inequality constraint between iron and aluminum oxide. Then the simulated results were compared with a conventional hierarchical co-simulation algorithm to investigate the effect of inverse transform sampling on the quality of the co-simulation. The results showed that the proposed algorithm can reproduce an inequality constraint between variables.

Sep 1, 2021

By D. Orynbassar, N. Madani

This work addresses the problem of geostatistical simulation of cross-correlated variables by factorization approaches in the case when the sampling pattern is unequal. A solution is presented, based on a Co-Gibbs sampler algorithm, by which the missing values can be imputed. In this algorithm, a heterotopic simple cokriging approach is introduced to take into account the cross-dependency of the undersampled variable with the secondary variable that is more available over the entire region. A real gold deposit is employed to test the algorithm. The imputation results are compared with other Gibbs sampler techniques for which simple cokriging and simple kriging are used. The results show that heterotopic simple cokriging outperforms the other two techniques. The imputed values are then employed for the purpose of resource estimation by using principal component analysis (PCA) as a factorization technique, and the output compared with traditional factorization approaches where the heterotopic part of the data is removed. Comparison of the results of these two techniques shows that the latter leads to substantial losses of important information in the case of an unequal sampling pattern, while the former is capable of reproducing better recovery functions.

Aug 1, 2021

By C. Meyer, J. J. Eidel

Major gaps in understanding hydro- thermal systems remain after a century of studying fossil ore deposits and active geothermal areas. The periodically rejuvenated concept of "stacking" ore deposit types has never been verified by a continuous sample. Basal and marginal regions of both “fossil" and "active" hydrothermal systems normally lie beyond the limits of economic exploration, remaining inadequately exposed. Incomplete scientific under- standing of he vertical transitions clearly limits the efficacy of exploration programs for hydrothermal ores of all types. The Continental Scientific Drilling Committee's (CSDC) Panel on Mineral Resources has defined dedicated research objectives and add-on experiments to industry or government drill holes of opportunity.

Jan 1, 1988

By J. James Eidel

Geological interpretations generally require projections from direct observations at the earth's surface. Crustal projections include mineral deposits as well as the geochemistry of the crust and its fluids, structure and tectonics. Drilling offers opportunities for verification of the required projections, and is thus a required step in furthering crustal understanding. Like any new science, the direct observations that drilling provides commonly generate major surprises and stimulate totally new ideas. Drilling is costly. There are many critically important scientific problems with societal and potential economic benefits in mineral deposits which have not been drilled because the holes are difficult to justify as economically sound risks for private capital. Such holes, however, are highly justifiable research goals for government because of the significant new opportunity for ore deposit insight and exploration that they afford. The earth science community is prepared with excellent drilling projects for research in mineral deposits.

Jan 1, 1985

By Donald Bishko

Zoning is the legal means by which land use can be controlled. Although zoning laws have historically been quick to prevent quarrying, one is hard pressed to find zoning ordinances which specifically state that land should be used (or held in reserve) for quarrying and prevent other uses such as recreation, housing, etc. This situation is especially true when the mineral to be quarried has a low intrinsic value such as sand, gravel, and crushed stone. The chance of a gold mine surviving urban sprawl is probably considerably greater than that of a sand and gravel pit, even though it is possible that the dollar value of the sand and gravel' would exceed that of the gold mine. The research reported herein was concerned with two major topics: to delineate the real costs associated with the non-protection of our construction aggregate resources (growth minerals) and to develop a computer simulation model which would aid planners in making economically sound decisions. This paper describes the problems faced by the mineral aggregate industry and discusses the role of computer simulation in planning problems. It briefly describes a simulation model which has been developed and previously reported12 and discusses the results of a pilot study conducted on the Tri-City area (Albany, Schenectady, and Troy, New York). 3

Jan 1, 1970

Constraints on the mineral industry are best treated as issues that have to be understood and managed in partnership rather than in conflict with communities. TheZapopan development at Mt Todd in Australia and the Martha Hill development at Waihi in New Zealand are but two of many recent successful examples at the local level.   However, at the national level, the issues are more complex and more difficult to resolve because the most influential stakeholders are now the urban electorates and governments defer to their perceptions when making decisions and policy. In the developed countries, government policies for the development of mineral resources have been progressively eroded since the early 1970s. At the same time policies for the environment and for native land rights have generally been carried out in a way that has reduced access to minerals and increased the cost and risks for prospectors and developers (Hancock, 1995). Since the end of the Cold War, the lesser developed countries (LDCs) have introduced policies to attract investment in their mineral resources that remained undeveloped under previous unstable or hostile regimes. The increased attraction of these LDCs and the decreased attraction of the developed countries has caused many Australian and North American companies to outlay increasing proportions of their budgets and capital investment in the LDCs.   Significantly, LDC policies for environment protection do not discourage exploration and mine development, Surveys of the relative appeal of the LDCs and the traditional mining countries of the developed world, rate Chile, Argentina and Indonesia ahead of Australia and Canada in terms of risk, delays and ease of doing business (Australian Mining Monthly, February 1994).

Jan 1, 1995

Constraints on the mineral industry are best treated as issues that have to be understood and managed in partnership rather than in conflict with communities. The Zapopan development at Mt Todd in Australia and the Martha Hill development at Waihi in New Zealand are but two of many recent successful examples at the local level. However, at the national level, the issues are more complex and more difficult to resolve because the most influential stakeholders are now the urban electorates and governments defer to their perceptions when making decisions and policy.

Jan 1, 1995

By C. G. Carey, M. P. Mullins

BHPBilliton is a large (US$32bn market capitalization) diversified mining group. Significant organic growth is planned through the development of a number of mining, processing and oil and gas projects, totalling some US$5.2bn over the next three years. The investment standards underpin the capital approval process, and incorporate the requirements for range and risk analysis of key input variables, including mineral resources. Public reporting codes for mineral resources and ore reserves (such as JORC) stipulate deterministic reporting of estimates, but are generally silent on any requirement for range or risk assessment, although they acknowledge the risk and uncertainty in the production of resource estimates. In contrast, public reporting of petroleum reserves allow for the use of either deterministic or probabilistic estimation, and for the latter, mandate the level of confidence required for proven versus probable reserves. Conditional simulation techniques, popular in the petroleum industry, provide an ideal tool forrange and risk assessment of the range of outcomes of key resource parameters, such as tonnagesand grades. Examples of a diamond deposit and of a porphyry copper deposit are presented. The understanding and quantification of mineral resource risk through a technique such as conditional simulation provides quantified information on the potential upside or downside. These techniques should be more widely utilized in the high-risk minerals extraction industry. Keywords: mineral resources, conditional simulation, risk, capital investment standards, BHPBilliton.

Jan 1, 2003

By K. L. Ludeke

For many reasons it appears that deep-rooted, perennial shrubs offer potential for improved stabilization and provide maintenance-free vegetative cover to harsh sites where perennial grasses have not been successful. The very fact that a drought-adapted shrub has a massive root system that can use moisture from a greater volume of mineral waste soil materials suggests that long-range arid environment resource development may be greatly enhanced by utilization of desirable forage shrubs. An effort is underway to assemble information and plant materials of promising species from many arid regions of the world. Surprisingly, many of the better plants for arid sites are quite high in protein content, and with proper management, breeding, and selection may prove to be very desirable livestock feed. Advancements in arid-land solid waste stabilization hold favorable promise for many industries that mine and mill in arid regions for effective reclamation of disturbed areas. Particularly exciting is the possibility of establishment of high density maintenance-free vegetative cover of climax vegetation that reclaims the disturbed area back to its original land use. Because of high shrub productivity, stabilization potential, nutritional quality, and reclamation success, greater use should be made of shrubs in disturbed land reclamation associated with mining and milling operations in harsh arid environments.

Jan 1, 1984

Mineral Resource Throughput Management is based on the extraction of the maximum potential value from an ore reserve with the emphasis to generate maximum ROI and ROR (return on reserve). A steel producing company in India implemented MRTM to significantly improve their ROI and ROR. The value chain of this company consists of their own iron ore and coal mines, ore washing plants, sinter plants, steel plants, and sales and marketing division. The target for the mines was to produce at a stable and predictable rate and at specific quality requirements. These requirements were set to improve productivity and ROI of the steel plant. The implementation constituted the alignment of the reserve potential, total production chain, human resources and management culture at the mines with the requirements of the steel plant. Many typical mining practices were challenged and changed. Production targets regarding lump vs. fines ratio, consistent product tons, quality targets such as Fe, Al content and moist, and standard deviation on the quality targets were not achieved. A reverse distribution model with release mechanisms to satisfy the demand were developed and implemented at the mines. A stable and predictable flow of mine product with quality standards well within the required standard deviation targets were achieved. The contribution from the mines to significantly improve the Net Profit, ROI and ROR of the company were reached.

Jan 1, 2007

Mineral Resource Throughput Management is based on the extraction of the maximum potential value from an ore reserve with the emphasis to generate maximum ROI and ROR (return on reserve). A steel producing company in India implemented MRTM to significantly improve their ROI and ROR. The value chain of this company consists of their own iron ore and coal mines, ore washing plants, sinter plants, steel plants, and sales and marketing division. The target for the mines was to produce at a stable and predictable rate and at specific quality requirements. These requirements were set to improve productivity and ROI of the steel plant. The implementation constituted the alignment of the reserve potential, total production chain, human resources and management culture at the mines with the requirements of the steel plant. Many typical mining practices were challenged and changed. Production targets regarding lump vs. fines ratio, consistent product tons, quality targets such as Fe, Al content and moist, and standard deviation on the quality targets were not achieved. A reverse distribution model with release mechanisms to satisfy the demand were developed and implemented at the mines. A stable and predictable flow of mine product with quality standards well within the required standard deviation targets were achieved. The contribution from the mines to significantly improve the Net Profit, ROI and ROR of the company were reached.

Jan 1, 2007

By James R. Dunn

The mineral industry" has made and will continue to make important contributions to the growth of our economy. However, the industry is presently under continuous and increasingly severe attacks by organizations and individuals interested in the preservation of our environment. Yet neither the public interest value of preservation nor the public interest value of our mineral industry is known. In the absence of such values, judgments about best land use where minerals are involved are nearly always made on emotional grounds. An example of the sort of problem that has been created is in the New York Metropolitan Area. Because of institutionally-created shortages stemming largely from zoning decisions and building over deposits, the effective cost of fine aggregate delivered at dockside at Manhattan rose from $2. 65/cubic yard in July, 1969, to $4.10/cubic yard in May, 1970, this in spite of approximately ;l0,000 years of reserves on Long Island. The cost of fine aggregate for New York City alone has "Increased over $S million annually within one year, with the cost increase for the Tri-State Metropolitan Area (coastal Connecticut, New Jersey, and New York)" exceeding $10 million annually. The ab0ve situation has created a cost increase which is clearly the result of non-conservation of a mineral resource. That is, in readily measurable values, it Is costing the public about $10 million per year because good conservation practices were ignored-a public-interest loss. Admittedly, this is not the whole story because the public is simultaneously obtaining other values from the land surface that would otherwise have had to be dedicated, temporarily to be sure, to mineral recovery-a public-interest gain. However, the point is that we do not know where the balance lies-the net public interest value; it may lie one way for deposits zoned out of existence by a growing suburb, another for areas designed as permanent greenbelts, and still another for areas under new highways

Jan 1, 1971

By David B. Brooks, William A. Wallace, James R. Dunn

As the conflict between the mineral industry and preservationists steadily increases, it becomes urgent to determine as precisely as possible the costs of developing vs. not developing our domestic mineral resources so that enlightened mineral policy decisions can be made. A simple discounted cash flow equation is suggested as an approach to assigning a public-interest dollar value to mineral resources. Present value of a piece of land underlain by a mineral resource is taken as equal to the discounted cash flow derived from the resource corrected for present and future surface land values. The equation is effective as a base for mineral aggregate resource planning for metropolitan areas if transportation cost differences are substituted into the cash flow component. Suitably modified, the equation can be fitted readily into an existing computer simulation program for aggregate mineral resource planning in metropolitan areas. However, because of the lack of accurate input, the equation is less effective for other mineral commodities such as base metals and coal. Nevertheless, within a somewhat philosophical context, the equation still has utility and is effective in defining the problem of public interest values for minerals other than mineral aggregates.

Jan 1, 1972

The issues which are the subject of this paper cover an extremely broad field. In themselves the components of the topic could be the theme, in considerably greater detail, of a two day seminar. Indeed a full course in an academic year would probably not do justice to the topic. I have therefore experienced considerable difficulty in condensing such a broad subject range down to a 30 minutes address and in doing so have tried to, hopefully, provide a little bit of everything for the wide range of professional interests and different levels of commercial, professional and legal expertise represented at this conference. Perhaps my address could best be described as a "bird's eye" view rather than a "worm's eye" view of the subject.

Jan 1, 1990

By Donald H. McLaughlin

THE primary function of the mining engineer is to find mineral deposits and fuels in the accessible rocks of the earth and to recover them for the vast needs of our complicated civilization. On him has been placed the responsibility for the exploitation of the nation's and world's mineral resources. The degree to which the minerals of the earth have been utilized serves to an extent as a measure of man's material advancement, as well as an index of the relative strength of nations. The natural endowment of lands, varies greatly, but the intellectual energy of a people is revealed by the way in which they take advantage of their heritage of minerals or reach out to less developed regions by exporting their engineering skill as well as capital to secure the raw materials they need.

Jan 2, 1953

By M. H. Govett, G. J. S. Govett

"The current American ""energy crisis"", occurring in the midst of a global debate on the adequacy of mineral supplies to support present and projected levels of world consumption, has focused attention on Canada as a major world producer of minerals. Exports of minerals account for approximately one-third of Canadian foreign earnings; more than half of these exports are to the United States. Although the United States is a net importer of most industrially important metals, with the exception of nickel and zinc, only a small part of American mineral imports are from Canada; these imports are minerals for which geographical proximity and strategic considerations are important. In the short-term, Canada is more dependent on her exports to the U.S. than America is on imports from Canada. It is argued that Canada, far from indulging in economic nationalism to preserve her resources, should expand her exports while the markets are available."

Jan 1, 1973

By A. L. Hornbaker

Management of mineral resources through land-use planning procedures is not a new concept, particularly at the local level of government. Colorado may well be one of the first states, however, to vigorously attempt to evaluate on both the state-wide and regional basis, mineral resource potential and to make certain that potential for mineral resources is included as one of the primary factors considered in the local land-use decision-making process. Less than a decade ago the only consideration given to mineral resource extraction, particularly aggregate resources, was whether or not they could be produced at the particular time they were needed. This attitude has now shifted to the other extreme, not only in Colorado, but other states as well, so that other interests, especially housing projects, mountain subdivisions, recreational and wilderness areas are gaining prime consideration in land-use decisions. Ideally, in a more acceptable median position, mineral resource potential would receive definite consideration at the local level.

Jan 1, 1977