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By Andrew K. Simpson

What will this deal do to the company’s stock price? This question arises when a publicly traded mining company is presented with a new mine project, or business combination. The standard tool for addressing this question is to use discounted cash flow analysis, or net asset value(NAV), which is discounted cash flow net of liabilities. Cash flow-based analysis is invaluable for assessing project costs and other impacts on debt service capacity and internal rates of return. But cash flow analysis and NAV do not work very well for stock price analysis.

Jan 1, 2000

By T. G. Joseph, M. J. Bolster

ABSTRACT This paper explores passive seismic measurement as an alternative, nonintrusive approach to conducting annual brake testing on surface mine sites. Dictated by the test site location, this evaluation adhered to the brake testing procedure as per British Columbia occupational health and safety regulations. Results showed excellent correlation to those reported via conventional practice: Comparing stopping distance, time, and velocity for the proposed instantaneous passive seismic versus conventional approaches, less than a 0.5% variance was evident. A viable alternative, the passive seismic approach, allowed an entire fleet of trucks to be sequentially evaluated for annual brake testing without disrupting operations by installing mechanical testing equipment.

Jan 1, 2012

By P. Eger

In 1991, LTV Steel Mining Company decided to close an open pit taconite mine in northeastern Minnesota, using a passive treatment approach consisting of limiting infiltration into the stockpiles and wetland treatment to remove metals. Over 50 million metric tons of sulfide-containing waste had been stockpiled adjacent to the mine during its 30 years of operation. Drainage from the stockpiles contained elevated levels of copper, nickel, cobalt and zinc. Nickel is the major trace metal in the drainages, and prior to closure annual median concentrations ranged from 1.5-50 mg/L. Copper, cobalt and zinc are also present but are generally less than 5% of the nickel values. Median pH ranges from 5.0 to 7.5, but most of the stockpile drainages have pH greater than 6.5. Based on the chemical composition of each stockpile, a cover material was selected. The higher the potential a stockpile had to produce acid drainage, the lower the permeability of the capping material required. Covers ranged from overburden soil removed at the mine to a flexible plastic liner. Predictions of the reduction in infiltration ranged from 40% for the native soil to over 90% for the plastic liner. Five constructed wetlands have been installed since 1992, and have removed 60-90% of the nickel in the drainages. Total capital costs for all the infiltration reduction and wetlands exceeded $6.5 million, but maintenance costs are less than 1 % of those for an active treatment plant. Since mine drainage problems can continue for over a hundred years, the lower annual operating costs should pay for the construction of the wetland treatment systems within seven years.

Jan 1, 1999

By Javankhoshdel Yacoub

Piles are often used to reinforce slopes as they increase the available restoring force when calculating the factor of safety against sliding. In this paper, a 3D model of a slope containing multiple modes of failure is reinforced using pile elements. The results of the 3D Limit Equilibrium analysis containing piles are obtained using a newly introduced coupled approach which combines the results of finite element analysis (to obtain the displacement of soil along the pile) with the traditional limit equilibrium iterative formulation. The multiple modes of failure are obtained using the novel Multi-Modal Optimization (MMO) metaheuristic method which adapts the Particle Swarm Optimization (PSO) method to search for multiple local minima in a single slope model.

Oct 1, 2022

By J. T. Kalala

The High Pressure Grinding Roll (HPGR) is gaining acceptance in the mineral processing industry and has become a competitive technology in reducing the specific energy consumption in Mineral processing plants. The amount of samples required for HPGR amenability testwork and HPGR wear tests is usually high and often cannot be available at early stage of projects were only a few drill cores are available. Although HPGR was initiated from small scale piston die compression tests, the development of small scale piston die test to predict the performance of HPGR has been slow. The objectives of this paper was to present the designs, operating procedure of piston-die press and operating conditions which have resulted in similar particle size distribution obtained from a piston die test and HPGR Labwal unit starting from the same feed size distribution. Testwork were conducted using a 2 MN piston-die press and a Labwal HPGR unit on major South African ore types, viz, gold, platinum and iron ores. The results obtained show that piston-die test can generate data to predict energy consumption, product size distribution, and even to evaluate the edge effect.

Jan 1, 2012

By Jorge Amaya, Nelson Morales Varela, Francisco Saavedra, Gonzalo Nelis, René Gómez

Precedence constraints are broadly used in mathematical models and algorithms for mine planning to model, for example, slope angles in open pit operations or connectivity in underground mines. Unfortunately, these constraints do not capture relevant geometrical aspects for the design of the mine like minimum bottom space of pits or smoothness of the economic envelope in block caves. In this work, we present different approaches that utilize precedence constraints generating economic envelops that are more suitable for design purposes. The numerical experiences show that the proposed techniques produce high value envelops with better geometrical properties and that the methods proposed can be computed efficiently.

Jun 25, 2023

By E. Isokangas

The production of minerals for economic use is a two-stage process, involving mining to extract the mineral from the ground, and processing to convert the mineral into a marketable product. Generally, mining and processing have been viewed as self-contained entities. Both have separate objectives, separate cost centres and key performance indicators (KPIs) that do not reflect the customer/supplier relationships that inherently exist. However, mining and processing operations are inter-connected and therefore intimately inter-related with the performance of one operation affecting the performance of another. Optimizing each stage separately without considering the whole system often misses potential economic benefits and energy savings. During the past fifteen years, the authors have been involved in implementing a holistic methodology ?Mine to Mill Process Integration and Optimisation (Mine to Mill PIO)? to maximize the overall profitability of the operation rather than just optimizing any individual process in a mining operation. Metso Process Technology and Innovation (PTI), along with their project partners, have conducted several projects to significantly increase their production- generating typically 5% to 20% higher throughput and improve the overall mine and concentrator performance through PIO methodology. This proven methodology has applications ranging from greenfield projects to long-standing operations with AG/SAG, HPGR or conventional grinding circuits. This paper explains the Mine to Mill PIO methodology and discusses the benefits of such an approach on the energy consumption, the overall costs and benefits of mining operations. The paper also summarizes several case studies illustrating the use of PTI methodology in a variety of applications. Keywords: integration, optimization, simulation, modeling, mine-to-mill, comminution, blast, drill, crushing, grinding

Sep 1, 2012

By E. Hsieh

Proximity detection in the open pit mine can be used effectively as an operator assist strategy which improves digging production through enforcement of best practices, although it is normally thought of first as a safety tool, and second as a step toward full automation when combined with object avoidance.

Feb 23, 2014

By S. J. Prout, J. M. Lang, D. Lascelles, K. Sarinas

"There is a growing demand for ore characterization methods to support metallurgical development programs from a true geometallurgical perspective. Today, there are multiple automated mineral analysis systems on the market, many of which are based on conventional mineral liberation data. However, liberation data can be limited when assessing the floatability of a mineral to predict its recovery as it doesn’t consider the surface area available for collector absorption and bubble attachment; whereas mineral exposure measurements can. Using the First-Order Rate equation to predict the recovery versus time of variously exposed particles, a model has been developed to predict the recovery of copper sulphides at a particular grind size. This model provides the opportunity for the prediction of copper recovery and grade from multiple, small-scale samples. These predicted values can be imported into resource modeling software, and guide the domaining of geometallurgical units within the ore body. Data has been analyzed from various global copper porphyry systems and compared with actual flotation testwork.IntroductionAs part of the development of a mining project, resource estimation primarily focuses on the definition of the quantity and grade of the ore in the deposit; as the project evolves from preliminary economic assessment through to feasibility, the geological model is usually further populated with hardness and recovery data.The CIM Definition Standards (2011) identifies measured mineral resource as the part of a mineral resource for which quantity, grade or quality, densities, shape, and physical characteristics are estimated with confidence sufficient to allow the application of “modifying factors” to support detailed mine planning and final evaluation of the economic viability of the deposit as an asset. The modifying factors include, but are not restricted to, mining, processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social and governmental factors.With market fluctuations, many investors in the mining industry have become more and more risk averse which has increased the demand for more reliable data to support these modifying factors. This has led to the widespread use of geometallurgy and statistical analysis to better inform the resource estimation. Geometallurgy is used to characterize ore variability and is especially useful for highly variable or strongly zoned deposits, several close deposits that will be milled together, projects requiring complex or new metallurgical approaches, brownfields or sight-of-mine exploration, expansion projects that exploit new, deeper or adjacent reserves, and projects with significant legacy drill core that are being re-evaluated due to new economic circumstances."

Jan 1, 2018

The cloud transform simulation is a technique used to generate realisations of correlated attributes. The principle of this technique is to partition the scatter diagram between the input attributes into several interval classes and derive for each class a cumulative distribution function (CDF) using only the data pairs of the scatter diagram in that class. The simulation then proceeds like a traditional Monte Carlo simulation but using the derived CDF in each class.The cloud transform simulation has the advantage of being a simple and fast technique that is able to reproduce the uncertainty in the relationship between the two input attributes regardless of whether the relationship is linear or not. However, the technique has three major drawbacks. First, the number of classes has an impact on final simulated results and there is not a robust approach to define such number. Second, simulated results exhibit some saw tooth variations that are unrealistic and third the reproduction of the spatial continuity of the simulated attribute is not guaranteed.This paper presents the use of the quantile regression approach in order to overcome the first two disadvantages of the cloud transform simulation. Details of the technique and how it can be coupled with the cloud transform simulation are presented along with a real case study.

Sep 26, 2011

By R. Poulin, M. R. Samis

Real options valuation is an alternative net present value framework that is able to incorporate both management flexibility and dynamic project risks. In this paper, management is considering the development of a satellite low-grade zone while operations in a developed high-grade zone continue. If the lowgrade zone is developed prior to high-grade zone exhaustion, mine capacity must be expanded before additional production from the low-grade zone can be processed. This expansion can be avoided only if low-grade zone development is delayed until the high-grade zone is exhausted. The real option model presented here allows the development and capacity expansion decisions to be reconsidered on a discrete half-year basis. It delineates price regions, for given levels of high-grade zone reserves, in which it is optimal to develop the low-grade zone, defer low-grade zone development and abandon the mine irrevocably.

Jan 1, 2006

By F Clark, J T. Carswell

Ore definition for final stope planning is often a challenging prospect in underground (UG) gold mines which exhibit high geological and grade variability. Unlike the grade control (GC) scenario in an open pit (OP), the ability for the mining geologist to plan a sampling campaign which effectively characterises the underlying mineralisation is fraught with difficulty. UG sampling patterns are strongly clustered and typically not dense enough to characterise the spatial and statistical properties. Very commonly, sample volumes are not large enough to provide a reliable grade estimate of the surrounding rock. These factors critically affect our ability to accurately map out ore positions and estimate metal quantities.At Sunrise Dam, traditional UG sampling and modelling techniques have proven to be an unreliable strategy for successful stope planning and extraction. The problem was first observed during the final cut-back in the open pit for which the mineral resource model was constructed from UG diamond drilling. Open Pit grade control reconciliations were strongly positive for both tonnage and grade compared to the resource model. Underground workings missed significant quantities of ore which was laterally defined by open pit reverse circulation (RC) GC drilling. Upon examination it was realised that the cause of the problem was one of inadequate sample density and sample support, the implications of which potentially affected the entire UG mine.As part of a broader study into underground grade control procedures, detailed reconciliation of initial stope production from the GQ domain also pointed to inadequate sampling as a major constraint to effective grade control and reserve conversion.To overcome this deficiency, dense 115 mm wet RC grade control drilling and conditional simulation modelling has been successfully implemented with the intent to replicate the grade control process in the open pit. The increase in sample density and sample volume has proven to be a very effective tool for mapping out highly complex mineralisation. A marked improvement in stope definition, reserve conversion and Mine to Mill reconciliations has been demonstrated on the back of an innovative approach to UG grade control.CITATION:Clark, F and Carswell, J T, 2014. Using reverse circulation drilling to improve sampling in a complex underground gold operation – an innovative approach to underground grade control at the Sunrise Dam Mine, Western Australia, in Proceedings Ninth International Mining Geology Conference 2014 , pp 143–152 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 18, 2014

By Melinda J. Hummel, Zachary T. Smith, Nathaniel Witter, Nina F. Carney

The revitalization of Pittsburgh’s historic Strip District has led to the redevelopment of existing properties and the development of new properties. At one time, the Strip was home to wholesale market products. Now, the historical warehouse buildings are being converted to multi-use residential and commercial properties. One such property, 1600 Smallman Street, consisted of 1 to 6-story connected buildings that housed night clubs, retail shops, and office space. The lower story portion of the building, on the southwest side of the property, was torn down to make room for a new 5-story- parking garage with street level retail space. The remaining 6-story-building, on the northeast, was gutted to be renovated into high-end condominiums, keeping the exterior historical building facade.

What decision making tools and methods are available to a project owner when there is no clear differentiator between construction alternatives? A team led by a joint venture of Parsons Brinckerhoff and PGH Wong Engineering (PB/Wong) has been providing preliminary engineering services to the San Francisco Municipal Transportation Agency (SFMTA). The SFMTA and PB/Wong team developed several alternative construction methods for the tunnels and stations of the San Francisco Central Subway Project, none of which could be judged clearly better than another using traditional approaches and metrics. The team employed a risk assessment and analysis frame-works as a means of comparative analysis, drawing upon the knowledge of industry experts in the geotechnical, tunneling and construction fields to assist in the effort. This paper presents the approach and results of a cost and schedule risk analysis for two such analyses designed to answer two different questions regarding the advisability of different construction approaches. These assessments paved the way for key decision making in the preliminary engineering phase of the project and formed the foundation for continuing risk management efforts on the project. The focus of this paper is primarily the first two stages of risk management?identification and assessment?and some of the organizational dynamic issues that arise in such efforts.

By Omid Asghari, Amin Mousavi, Arshad Ranjbar

Geometallurgical modeling of the production benches is an attempt to estimate the geometallurgical variables of the different ore domains, which leads to a better understanding of the ore and its properties. Having geometallurgical variables results in a more accurate prediction of ore characteristics, an improved drilling and blasting operation, and better efficiency of the processing plant. In this research, the geometallurgical variables required for the geometallurgical modeling of the extraction benches are discussed. Then, the relations between Bond work index (BWi), as one of the most important geometallurgical variables and the primary grindability index, and rock geomechanical properties are investigated based on the previously published studies. The BWi is the main parameter for measuring the resistance to the grinding of ore minerals. It represents the energy required for processing (e.g., crushing, grinding) ore rocks in the beneficiation plant. As a real case study, BWi of a production bench in Sungun Copper Mine, located in East Azarbaijan province, Iran, was estimated. The rock’s geomechanical properties were measured using laboratory tests, including uniaxial compressive strength, Brazilian tensile strength, point load strength, and hardness. Then, BWi was estimated using the proposed formulas in the literature and the results of the rock’s geomechanical properties. The selected bench consists of three ore zones and two dyke domains. The laboratory tests revealed that the first ore zone has a slightly higher compressive strength than the other two zones, while the compressive strength of the waste rocks is larger than the ore domains. Using the proposed equations in the literature, the predicted values of the BWi for the samples in ore zones are in the range of 6.36 – 14.44 (kWh/t), and therefore this wide range must be considered when the short-term production schedule is planned. In addition, variations are observed in the samples within a specific zone and between the ore zones, demonstrating heterogeneity in the selected bench. Finally, wide-open results obtained by different equations show a necessity to perform a geometallurgical program specifically for the Sungun mine.

Oct 28, 2021

Real-time data collection and plant historians are becoming common place in mining and processing plants. This vast quantity of data must be turned into easily accessible and actionable information for all levels of the organisation.Queensland Nickel use a combination of Microsoft and SAP business intelligence tools to collect, cleanse, aggregate and present plant information to the appropriate people for supporting decision making in the business. SAP Business Objects, for visualisation, and SAP MII, for integration, allows complex and accurate metrics to be delivered as real-time dashboards. Designing a rigid data management architecture to segregate the data collection, integration and logic and visualisation into distinct logical layers, allows for rapid report development and greatly assists with IT maintenance, while also minimising the complexity of any customised programming. This type of architecture ensures a common data source for all business reports, ensuring one version of the truth. The past few years at Queensland Nickel have seen process and maintenance engineers spending considerably less time collecting and integrating data and spending more time analysing what is happening in the plant. Real-time reports and dashboards have been developed around the business needs rather than around the data. Two years ago Queensland Nickel introduced an employee bonus scheme based upon meeting monthly performance targets; an easy to use dashboard that allows everyone, from operators through to management, to monitor these metrics day-to-day.

Sep 26, 2011

By J P. Sykes, A Trench

"The common-held view of the future of copper mining is one of declining quality of mineral resources and increasingly limited long-term development options. This decline, in turn, is viewed as inevitably leading to increasing economic, socio-political and environmental costs. As a result, new technologies and innovations will be required to mitigate cost escalation. The future is therefore typically summarised as a battle of a ‘below-ground’ declining quality asset base pushing costs upward versus ‘above-ground’ technology and innovation driving costs downward. The role that high quality new mineral discoveries could play in mitigating industry cost pressures is typically understated, if considered at all. New high quality discoveries can be mined at lower cost than existing assets and potentially if discovered in the right locations within a more amenable contemporary environmental and socio-political setting. Such deposits, once discovered, would improve the overall quality of the industry asset base, as well as benefitting their owners substantially through higher margins. However, to target new high quality deposits explorers need some understanding of the nature of high quality copper mines in the long-term future. Conventional scientific and economic techniques for analysing the future of copper supply, generally by studying the project pipeline, ignore as yet undiscovered resources and also struggle to fully incorporate the multiple internal and external factors that could impact upon copper mining practices in the future.Scenario analysis is specifically designed to consider multiple factors interacting in the future, and is thus more creative than simply looking at the visible project pipeline. The use of scenarios is therefore potentially capable of providing insight into aspects of the future of copper mining about which little is currently known or that remains considerably uncertain. In this study, the Oxford University Scenarios methodology was employed to analyse different plausible futures for copper mining and the consequent implications for exploration targeting strategies. The scenario analysis highlights two key dimensions or axes that serve to map out potential industry futures: firstly the technical and economic optimisation of the existing industry; and secondly the generation of new prospects or ‘search space’ for the copper industry. These two axes in turn frame four different scenarios for the future of the copper mining industry. These copper mining scenarios are then compared to the 20 largest existing copper mines and projects, and their owners, to determine if any represent an appropriately robust exploration targeting proxy: none do. The paper therefore concludes that efforts by industry are required to generate mine concepts that would be viable across all scenarios, and thus act also as exploration targeting proxies. In the interim, companies will have to seek to build portfolios that create an overall robust asset base, out of individually less robust assets. Failure to do this implies that consequential, irreversible strategic decisions lie ahead for the copper mining industry, which may be a threat to both incumbents and the very industry itself. This situation makes strategic exploration targeting in the copper industry very difficult.CITATION:Sykes, J P and Trench, A, 2016. Using scenarios to investigate the long-term future of copper mining and guide exploration targeting strategies, in Proceedings International Mine Management Conference, pp 265-290 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 22, 2016

By B Powell

Coastal acid sulfate soils (ASS) are wetland soils and unconsolidated sediments that contain iron sulfides which, when exposed to atmospheric oxygen in the presence of water, form sulfuric acid. ASS form in protected low energy environments such as barrier estuaries and coastal lakes and commonly occur in low lying coastal lands as Holocene marine muds and sands. When disturbed, the iron sulfides in these soils can oxidise and produce large volumes of sulfuric acid (essentially similar chemistry to acid rock drainage with mines) resulting in the subsequent release of toxic levels of iron, aluminium, manganese and possibly heavy metals. This results in detrimental effects on aquatic biota, plants, animals and steel/concrete structures and on human health in the surrounding environment. There are an estimated 2.3 million ha of ASS located along 6500 km of the Queensland coastline. In contrast to many mineral sulfides encountered in the mining industry, the pyrite crystals in ASS can be as small as 2 mm and commonly occur as framboids with extremely large surface area per unit mass, substantially increasing their reactivity if exposed to air (oxidation). Highly reactive iron monosulfides can also occur, particularly in drains and shallow lakes. Many coastal areas, where some 80 per cent of the population of Queensland reside, are coming under pressure for agricultural and urban development. Construction of canal estates, marinas, housing/industrial estates, roads, golf courses, aquaculture ponds, sand/gravel extraction and drainage for sugar cane can disturb ASS and release sulfuric acid, which may then drain into adjacent waterways with heavy rain. As development continues to encroach on coastal lowlands, the identification, quantification and management of ASS must be addressed as part of a commitment to the principles of Ecologically Sustainable Development (ESD). ASS can be successfully managed by adopting best practices and following guidelines, but government, community and industry must collaborate to raise awareness, avoid æhot spotsÆ and develop more cost-effective solutions. Scientists led the education and public awareness program showing infrastructure and environmental damages arising from ASS in Queensland. Using results from mapping and research, they convinced policy makers, industry and polititians to accept the need for legislation founded on good science. The resulting æState Planning Policy 2/02: Planning and Managing Development Involving Acid Sulfate SoilsÆ identifies the StateÆs interest in acid sulfate soils. The Queensland Government considers that development involving acid sulfate soils in low-lying coastal areas should be planned and managed to avoid potential adverse effects on the natural and built environment (including infrastructure) and human health. SPP 2/02 states where the policy applies and when a development application will trigger the policy. It can also be used to assist local governments in preparing their planning schemes under the æIntegrated Planning Act 1997Æ. The SPP 2/02 comes with a æState Planning Policy 2/02 GuidelineÆ to provide advice and technical information on interpreting and implementing the SPP 2/02. This guideline has legal status in assisting in the interpretation of SPP 2/02. Those seeking more detailed technical information can now also access the æSoil Management GuidelinesÆ and ASS æSampling GuidelineÆ, available from the Department of Natural Resources and Mines website. These are some of a series of chapters being developed for the æQueensland Acid Sulfate Soil Technical ManualÆ.

Jan 1, 2003

By O&apos

Southern Ohio Coal Company (SOCCO) and the U.S. Bureau of Mines have identified techniques to optimize the use of scrubbers on continuous miners. The techniques provide maximum respirable dust control while maintaining a high output. The use of radio remote control and scrubber help to achieve greater advance between lifts by locating the operator in fresh air during the mining cycle. He is also kept away from newly exposed roof, which is not supported. An alternative to fan-powered scrubber was also evaluated at SOCCO. A high-pressure water-powered scrubber system eliminated the noise associated with fans, and achieved an intrinsically safe system. Experience in the use of these scrubber systems and remote control at SOCCO are discussed.

Jan 1, 1990

By N. Vayenas, G. Yuriy

"The combination of a predictive reliability assessment model and discrete-event simulation can be an effective methodology to study the impact of equipment failures on the capacity of production systems in mines. In our case, a predictive reliability assessment model using genetic algorithms is combined with a discrete-event simulation model to analyze mine equipment systems.Discrete-event simulation involves modelling of real-life systems based on variables and events that occur or change at distinct points in time. The Simul8 simulation software, by Visual Thinking, is used in this research. It is a two-dimensional (2D), discrete-event simulation/ animation software tool for creating realistic depictions of manufacturing and materials handling systems.The simulation model developed for the purpose of this research represents a typical two-level, sub-level stoping section of an underground mine in the Sudbury region in Ontario, Canada. This 2D model was created to assess the impact of equipment failures to a mine’s production throughput. In more detail, using mean time between failures (MTBF) data of scooptrams derived from a reliability assessment model based on genetic algorithms, LHD failures are incorporated into the simulation model. These failures cause production interruptions to the development cycle and consequently loss of hauling capacity.Another purpose of this research work is to demonstrate how low-cost simulation tools such as Simul8 can be successfully applied to model underground hard rock mining operations. The research discussed in this paper is carried out by the Laurentian University Mining Automation Laboratory (LUMAL)."

Jan 1, 2005