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Mining and metals projects have tended to increase in both scope and cost to a point where many projects are Droperly designated as superprojects. Specialist engineer- constructors have developed organisations and systems to provide project management services during the design and construct phase of large projects. However, the engineer-constructor is also required to provide a wide spectrum of services during the evolution of large projects prior to the construction phase. Some common phases of pre-construction evolution are identified together with the associated types of specialised services which may be required. A project management team approach is described which has been developed for the design and construct phase. It is suggested that a modified matrix organisation could be adapted to the provision of special- ised services as well as to project management for ore-construction phases of the project.

Jan 1, 1980

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 R. J. Hickson

From 1993 through 1999 Cyprus Amax Minerals Company successfully completed eight major construction projects around the world. Six greenfield mines were brought into production, an ongoing operation was completely modernized, and an environmental issue was appropriately remediated. The projects stretched over three continents, from arctic Russia to the Atacama Desert, from 16,000feet to sea level, from city suburbs to remote wilderness, from a low of $130 million to over $1 billion. Open pit and underground; mill and leach; gold, copper, molybdenum, and coal were all encompassed. The breadth of diversity experience from these projects inspired Cyprus Amax to create a “best practices” project management protocol, to steer corporate expansion into the next millenium. This paper summarizes those best practices, while high-lighting project management pitfalls to avoid.

Jan 1, 2000

By R. J. Hickson

From 1993 through 1999, Cyprus Amax Minerals successfully completed eight major construction projects around the world. Six greenfield mines were brought into production, an ongoing operation was completely modernized and an environmental issue was appropriately remediated. The projects stretched over three continents: from arctic Russia to the Atacama Desert, from sea level to an elevation of 4,900 m (16,00Oft), from city suburbs to remote wilderness and from a low of US$130 million to more than US$ 1billion. The operations included open-pit and underground mines, mill and leach facilities and involved gold, copper, molybdenum and coal. The diversity of these projects inspired Cyprus Amax to create a "best-practices” project-management protocol to steer corporate expansion in the new millennium. This paper summarizes these best practices, while highlighting the project-management pirfalls to avoid.

Jan 1, 2000

By C Johnstone

Project management is not a task to be undertaken lightly. Mining projects generally present even more challenges due to ChinaÆs remoteness and complexity. Having experiences in project management in the West is certainly an asset, but China can present the uninitiated with any number of headaches. To undertake a project there can have many problems that are unique to China. For the last 15 years, China has seen an increasing number of foreign capital investment projects in the mining industry. Practices involved in mining project development have experienced/are experiencing an evolution. Since 1996, Sino Gold Mining Ltd has delivered three mines in China, ie Jianchaling Gold Mine, Jinfeng Gold Mine and White Mountain Gold Mine. Through the work, Sino Gold has established a solid knowledge base and a capable and skilful workforce in effectively undertaking mining projects in China. This paper is concerned with the experiences accumulated so far by Sino Gold in project management in China. An overall review is conducted regarding the reform of the mining project development in China. Opportunities and challenges are highlighted within the political, economic and culture context. Brief summaries of the development of the three gold mines are presented.

Jan 1, 2009

By P. Tanaskovic

This is presentation of a model which simplifies application of project management in control of the construction procedure of industrial units (mines, power stations etc). The model is made for further referrence of investors. The most demanding problem in large units is to find the best way of locating all activities within a network. The model uses term "line" (which refers to a construction unit) for a serie of activities which are to be sequentially executed (up to 1000 lines, each with 10-20 activities). The lines are coded in advance. Each line is described by a competent expert. Team of experts provide liason between lines on the basis of computer drawings. The method proved to be extremely effective. In order to provide smooth monitoring at all management levels, graphic documentation is given at 4 levels. The initial level is the third one, made based on input data (more than lo listings per one drawing). By condensation of activities along one line, another level is obtainable. Grouping of lines gives the first level (1-2 listing) for the highest management level. More detailed information is given for a limited (shorter) period at the forth level for the purposes of operational management. Each activity has three phases: prior to contracting, post contracting and accomplishment. All phases are presented at all levels, which enables investor to be continually well informed about construction advancement. Model is written in FORTRAN language. Programs comprise: maintenance of data base, calculation of time and costs and elaboration of graphic and other documentation.

Jan 1, 1986

By G. C. Thompson

A total system for the simultaneous management of various projects is presented. The objectives of the present organizational structure of the Coal Division in respect of projects are listed, as are the requirements for effective functioning of this organization. The processes involved in strategic planning and in the identification. evaluation, and development of projects are described. The monitoring and control of capital as well as project construction and production management. are discussed. Finally, the important role of project work in the development of management is stated, and the necessity for the continual assessment of the effectiveness of the project organization is stressed.

Jan 1, 1981

By P. R. Jochhens

The Past. In the past, large metallurgical companies (for example the mining houses) had the necessary infrastructure both to develop metallurgical flowsheets and to undertake the construction and project management of metallurgical plants. Effectively, the sole contribution by contracting companies was the supply, and possibly the installation, of specific items of equipment. OBITUARY: AUSTIN WHILLIER (1927 - 1981) On Thursday, 13th August, 1981, Dr. Austin Whillier passed away peacefully in Johannesburg after a long illness. This event has been a serious blow indeed, and its effects will be felt, not only by the Chamber of Mines of South Africa and the South African mining industry, but also throughout many scientific and technical spheres both in South Africa and further a field.

Jan 1, 1981

By F. van Heerden

The paper sketches the. management of the various phases in a cost-reimbursable, plus-fee contract. which is claimed to be the most flexible of all contracts. In this type of contract, the contractor is reimbursed for all the direct costs Incurred, plus a percentage fee to cover his profit (or overheads and profit). The client usually reserves the right to approve all drawings, equipment purchases. contract awards, technical specifications. project cheques and change orders.

Jan 1, 1982

By Smith G. A

The scope and complexity of the Melbourne Underground Rail Loop Project and the budget restraints on the planning, design and construction of the works necessitated sound manage- ment procedures for control and co-ordination. Project Management Procedures formulated by the Principal Consultant to the Authority, John Connell - Mott, Hay 9 Anderson, Hatch, Jacobs, ensured that the Authority retained overall control of the project at all times.

Jan 1, 1981

The long term viability of a mining company is dependent on the success of its capital investments. Due to the specialised nature of the design, engineering and construction of large projects the management is often contracted to an outside organisation. This paper is a review of the phases of the relationship between Client and Contractor. A rationale is developed upon which the selection of a Contractor can be made. Subsequently, the key aspects of the Client/Contractor relationship are reviewed with reference to completing the project on time within budget. The aspects discussed include Contractor management systems, qualifications of key personnel, definition of scope of work, industrial relations, project control and Contractor remuneration.

Jan 1, 1983

By H. W. Read, L. G. D. Napier

Change is endemic in our society. Future change will be accelerated by an explosion in technology, communication, and political thought. To meet these challenges, rapid structural changes have been taking place in mining organizations both here and abroad. The management of shaft-sinking projects is a case in point. Shaft sinking is a seminal element in the sustained well-being of a deep level mining venture. Its accomplishment is fraught with risk, involves a high level of capital expenditure, and is a precursor to profitable mining investment. The purpose of this paper is to present a concise and practical picture of the concepts, methods, and techniques of professional project management as applied to shaft-sinking projects.

Jan 1, 1994

It has long been recognised that applications of the Net Present Value (NPV) investment decision making methodology can have serious deficiencies in situations where investment can be delayed and, once made, various options allow increases or decreases in the level of output. NPV valuation can undervalue the project if it does not incorporate future flexibilities or ""options"". It is important to realise that a proper valuation of a project (ie, valuation of its future cash flows) must incorporate an analysis of optimal future decisions involved in managing the project. Current valuation cannot be divorced from a consideration of future decision making. There is now a considerable amount of literature, mainly academic, identifying and exploring ways of remedying these deficiencies in the application of NPV. While the necessity of period by period analysis is sometimes acknowledged, little if any practical illustrative model building has been published to date, aside from algorithms using continuous time stochastic processes which deny access to the uninitiated.

Jan 1, 1994

By J. Herhold, S. Plaum

"Current and future operational processes in the mining and underground construction sector are under the influence of the prevalent competition and the acute necessity of optimization approaches concerning corporate and project processes. Besides general construction procedures, especially underground construction procedures and procedures in the field of deep shaft construction are high-profile. Those processes describe high technical challenges as well as increased requirements to occupational safety and health. Therefor an occupational safety management, which should be adjustable to the company itself and adaptable to all kinds of projects, shall be created. The creation of such an occupational safety management would lead to an economically optimized and safe (within the scope of OSH law) implementation of internal activities for the performance of construction services underground and in the field of deep shaft construction. With this approach the satisfaction of the high safety request as well as the demand for process optimization, as part of keeping the own competitiveness, will be satisfied successfully at once. PROJECT BACKGROUND Introduction The health and safety protection as well as occupational safety look back on a long historical development, which had brought more important sectors and developments during the last years, not only in Germany but also on the European and international level. The accident insurance protected by law has already been reported in 1884, which is astonishing early. The launch time point is strongly connected with the on-going economic development in the end of the 18th century, but above all this increased in the 19th century. The progress of occupational safety and especially the interest in the integration and the concentrated consideration of occupational safety and the health and safety protection in the company process is strongly visible during the 19th century and directly connected to the industrial revolution. [9] The industrial revolution and with that the development of work places lead to changing demands in the field occupational safety and health and safety protection. Insufficient security precautions caused problems in the industrial revolution, such as personnel and material losses as well as serious injuries and their consequences. These and the fundamental economic endeavours of the entrepreneurs lead therefore to the important step to develop an occupational safety system. [9] The prevailing basic ideas seize the insufficient security precaution of work places as well as the economical and profitable ideas of the entrepreneurs and bring them together. From this the necessary entrepreneur’s task comes into being and that is bringing the work conditions to the way that life and health of employees are not in danger. [9]"

Jan 1, 2017

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 Donald G. Dahle

Project Payette is a conceptual nuclear experiment under the Vela Uniform program intended to further evaluate the mechanism of seismic decoupling. Vela Uniform is a Department of Defense program to improve this country's capability to detect, locate and identify underground nuclear detonations. This program evolved from recommendations of the Panel on Seismic Improve¬ment, (Berkner Panel), an officially appointed group of noted U. S. scientists. This Panel, taking note of difficulties in detecting the differences between some underground nuclear detonations and some earthquakes recommended a program of increased basic research in seismology. The theory of decoupling, Which involves possible reducing of seismic motion resulting from underground explosions by reducing the coupling or physical linkage between the explosion and the geologic environment, was investigated by Dr. Albert latter and his associates at RAND during the late 1950's. The concept has been further investigated theoretically by scientists of the Lawrence Radiation Laboratory and the Sandia Laboratory. The theory has been tested experimentally under Vela Uniform Projects Cowboy, Dribble and Sterling. The Salmon Event of Project Dribble was a tamped (with the explosive in firm contact with the geologic formation) nuclear detonation 2700 feet below ground in the Tatum Salt Dome. Project Payette, if found to be feasible and if authorized for actual execution, would become a decoupled experiment in the same environment.

Jan 1, 1968

By Ronald B. Stone

This paper describes a proposed solution to the problem of mining a 315 foot diameter unsupported sphere at a depth of 2700 feet in a salt dome by conventional mining methods. The proposed solution utilizes many of the varied technologies available to the mining engineer for solving mining and underground construction problems. The following are reviewed in the paper: A. The location of the sphere within the dome as required by construction criteria. B. The relation of the location of the access shafts to the sphere. C. The rock mechanics theory in relation to the salt dome and large size of the excavation. D. The proposed "honeycomb" method of mining which will be a partial answer to rock mechanics stability requirements. E. The equipment which it is recommended be utilized to accomplish the construction. F. The rock mechanics measuring instruments proposed. G. The methods of disposal of the mined salt. Conclusions and areas of further study are outlined in the final statement.

Jan 1, 1968

By Jr. Kermit Allen

A study was conducted for the AEC to determine the feasibility of constructing an unsupported 315 foot diameter spherical cavity at a depth of 2,700 feet in a salt dome. A cavity of this size and shape has never been attempted. It was determined that the three basic essentials for solution mining; adequate salt, fresh water, and a means of brine disposal were available at the Tatum Salt Dome in Lamar County, Mississippi. Assuming a large, unsupported mined opening of the size and at the depth required would remain stable, the most practical method of providing the cavity using solution mining techniques is by use of a movable blanket of air to control the water level to properly shape the cavity while removing the insolubles either with jetting or by conventional mining methods. It is estimated that, using the jetting method of insolubles removal, the cavity can be constructed in 24 months for approximately $7 million. Using conventional mining techniques to remove the insolubles and shape the final cavity, it is estimated that the cavity can be constructed in 36 months for approximately $12.6 million.

Jan 1, 1968

By C. Twigge-Molecey

All projects that are implemented, have been given corporate go-ahead on the basis of a set of clearly defined targets. These are typically a production goal at a capital cost, operating cost and production schedule, that will yield an acceptable return on investment by the companies internal criteria. The challenge for the implementation team is two-fold, firstly to properly define the project criteria prior to board approval and secondly to deliver an operating facility that meets these objectives, in particular the ROI. The paper addresses the issues a project team and the company management must address for a successful project. Key questions that will be explored are: ? What is the status of key technologies? Are they well proven in commercial practice, completely novel or in between? ? Is the project schedule driven by market constraints or cash flow constraints? ? Are the risks of fast tracking worth the potential rewards? ? For a retrofit project, are all the technical and production interfaces and issues known at the time of approval to proceed? ? How much should be invested in technological development and engineering and at which phase? ? For an owner-operator, how much responsibility is it wise or appropriate to push down to vendors? The answers to these questions for a specific project will define how you go about a project, the resources required, the contracting strategies, the phasing and the appropriate level of investment in the definition and procurement phases, prior to starting major capital commitments and construction.

Jan 1, 1999

By A. P. L. Kotzé

This paper gives a brief description of the control measures used in the establishment of the Grootegeluk Coal Mine, near Ellisras in the Transvaal. Specific reference is made to the planning offunds, cost and financial control, and economic evaluation.

Jan 1, 1982