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By C. R. Tinsley

In maybe the world's first in a mine project financing, a US $55 million Rehabilitation Indemnity was given on behalf of the banks in a US $250 million loan to develop the Ranger uranium mine, Northern Territory, Australia. The basis of the financing was an estimate of removal of the tailings and replacement into the pit. The Indemnity was amortized by a sinking fund from the mine's revenues. Such a concept could be valuable for mineral developments in sensitive areas or jurisdictions such as British Columbia or Alaska.

Jan 1, 1992

By G Britton, P Moynagh

As more than a few mines gradually sink under the weight of emails, whiteboards, notice boards and ever more complex spreadsheets, the holy grail of effective short-term interval planning and control in underground mines is as far away as ever. Despite the mining industry investing ever greater amounts in planning and Enterprise Resource Planning systems, short-term plans become ever more complex and rigid. What the industry desperately needs are not more ‘disembodied voices down the speaking tubes’, but flexible and effective planning systems that encourage people to make reasonable commitments to each other so that everyone can work as a coordinated team to complete the work required each shift.One solution to the challenge has emerged. This paper describes the ‘Fewzion’ shift planning and short interval control system which has been developed at Anglo American’s Moranbah North and Glencore’s Oaky Creek coalmines in Central Queensland. Fewzion has drawn on management theory embodied in Management Operating Systems, Lean and Theory of Constraints approaches to continuous improvement to play a key role in both mines achieving record breaking tonnages.In addition to explaining the Fewzion approach, a case study is presented describing how Anglo American’s Moranbah North improved production by 39 per cent in 2014/2015 and won ‘Coalmine of the Year’ two out of the last four years and how Glencore’s Oaky Creek sustainably improved monthly development meters by 34 per cent within two months of implementing Fewzion.CITATION:Moynagh, P and Britton, G, 2017. How a frontline planning and commitment system improves trust, commitment and results in operations, in Proceedings 13th AusIMM Underground Operators’ Conference 2017, pp 235–240 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 16, 2017

By Robert McIvor

The following is a summary of the Robert H. Richards Lecture on “Learning and Good Fortune on the Road to Discovery” presented at the Mineral & Metallurgical Processing Division (MPD) Awards Plenary Session on Feb. 23, 2026 during the MINEXCHANGE 2026 SME Annual Conference & Expo in Salt Lake City, UT.

Mar 1, 2026

By W. Gabryk

A large new underground platinum mining project required that all different mining options were investigated during an option study before proceeding to the prefeasibility stage of the project. The capital project team identified 21 different options requiring investigation. These options considered 10 different access methods and 4 different mining methods. Each of the 21 options required a mine design, a valid production schedule, and the associated economics in order to facilitate a comparison on project Net Present Value (NPV) and other metrics. The project sponsors required this work to be completed in 3 months and therefore the project team decided to adopt an object-oriented modelling approach as implemented by Cyest Corporation. This would allow all 21 options to be valuated within the tight time frame due to the generation and re-use of templates. Standard objects were configured into templates containing the mine layout, design, and scheduling logic. These templates could then be assembled into a model to represent the option being investigated. The adoption of rules-based design and production scheduling then allowed for the rapid generation of a valid production schedule for each option with different iterations of varying production ramp-up and mining efficiency assumptions. The activity-based operating costs, labour, and capital were also linked to the standard templates such as a half level or barrel, which were then replicated to represent the overall mine structure for each option under consideration. Using this approach for each option, a full production schedule was produced per mining activity, the operating costs were calculated using activity-based costing, an infrastructure capital expenditure estimate was determined, the development capital requirements costed, and an overall NPV determined. This options study was completed in an unprecedented 10 weeks and a recommendation was put through to the Business to take three of the options to the next study phase.

Jan 1, 2012

By Hans W. Schreiber, Rudi P. Fronk

IINTRODUCTION Widespread activities in precious metal projects in the western U.S., Australia, Canada and other parts of the world have opened a flood-gate of consul- ting expertise to aid and accelerate the development process. Utilization of outside expertise has taken on many shapes and forms that have in some instances actually "decelerated" or "retarded" project progress. Small mines are especially vulnerable to apparent false-starts and misdirections, be- cause of their generally lower capital commitments, shorter lead times and limited mineral in-house expertise. Mine development for small mines requires fundamental approaches by knowledgeable consultants that are timely and cost-efficient and in line with accelerated development, if they are to be successful. The development process is obviously that process which brings a given deposit into production. Or, put another way, the process comprises all activities, decisions and commitments which take place from the moment an authorizing entity (usually a board of directors) com- mits to development and production (usually on the basis of a final feasibility study) until the first ton of ore is processed to a saleable product. The activities, decisions and commitments over a development period--such a period can range from as short as a year or less to as long as 5 years or more--are many, highly varied, and often interdependent. The development period is also particularly risky, not only because of the varied and interdependent decisions and commitments, but also because of capital demand amounts. Delays in the development process are thus particularly costly - sometimes so costly that small and often undercapitalized mining companies, failing to reach production and a cash flow within a planned period, face, if not bankruptcy, at least severe equity dilution or particularly onerous and restrictive covenants on additional loan financing. It therefor behooves especially small mining companies to examine ways to accelerate development. By doing so, the development process may actually meet planned scheduling. The development process generally comprises environmental impact studies completion, final engineering, permit- ting, financing, equipment and machinery procurement, contractor selection and construction -- such activities largely being overlapping. The paper addresses what the small mines operator or the small mining company can do with consulting firms to accelerate development. By "small mines" is meant open pit operations of 2000 tpd or less and underground operations of 500 tpd or less. By "consulting firms" is meant entities who do not possess an engineering and construction capability, such as Derry Michener Booth & Wahl, Pincock Allen & Holt, Behre Dolbear-Riverside, etc. The paper concentrates on gold projects. PRIORITY CONSIDERATIONS Of the items listed in the previous paragraph which comprise the development process, the two which most consistently appear to cause delays are permitting and financing. The former's delays can be due to political overtones and thus the delays may not be reasonably foreseeable. The latter's delays are most often due to inadequate preparation, and thus are avoidable. For the reason stated above, and considering that financing is fundamental to all of the activities which constitute the development process, the paper focuses on financing as the priority item which can most assist in accelerating or retarding the development process.

Jan 1, 1987

By Jack T. Work

Spiraling costs in every segment of the open-pit mining cycle is a fact of life that every operator must reckon with. The introduction of various shock absorbing devices for rotary drilling is one recent innovation that may significantly reduce overall drilling cost, increase drill availability, and lower maintenance requirements. In a recent all-inclusive test in taconite ores, shock absorbers on Bucyrus-Erie BE 60R and Gardner¬Denver GD 120 rotary drills were directly responsible for overall savings of up to $41.06 per hour. What is It? A shock absorber is simply a device installed between the rotary drive head and drill steel that cushions the two. It functions in the same manner as springs and shocks on an automobile. Some benefits associated with use of the tool are readily apparent on a daily basis; other benefits are realized over longer time intervals and through continued use. A properly designed shock absorber will: •protect the drill from severe vi¬brations, improve rock bit performance, allow application of the best weight-on-bit and rotating speed under all drilling conditions, •function effectively over a wide range of applied bit weights, • have a spring rate soft enough to perform its primary function of absorbing both rotary and vertical vibrational forces generated by rough drilling, •be reliable and subject to as little maintenance as possible, •be easy to install and remove, and • be of such an economic benefit so as to offset the added expense of its application. A shock absorbing tool developed by BJ-Hughes Inc. was used in a recent test. The "Smoothdrill" is just one of the products currently available. This unit absorbs both rotary and vertical shock loads and has no mechanical parts so lubrication is unnecessary. A rebuild of the unit consists of removing the worn rubber element and inserting a new element, an operation taking less than one hour. Minimizing Vibrations Severe vibrations on a blasthole drill operating in broken and discontinuous formations have visible effects. These vibrations often cause structural damage when allowed to' continue, resulting in fatigue cracks in the mast and related structural components in the drill. When rough running formations are encountered, drilling must be interrupted and possibly shut down. Usually, the drill operator resumes drilling using less down pressures and various rotational speeds until firmer drilling is encountered. An effective shock absorber can substantially reduce these vibrational forces so more down pressure can be applied in bad ground. It is generally accepted that longitudinal vibrations and cyclic forces are more effectively reduced if a tool is designed to incorporate a relatively "soft" shock absorber. The softness of any shock absorbing tool is best judged by its spring rate-the weight required to produce a given amount of deflection, commonly expressed in units of kg per mm or pounds per inch of deflection. All shock tools use a resilient member such as rubber springs, steel springs, fluid, or gas springs to absorb

Jan 4, 1980

By S. Koro

The current economic climate of low commodity prices and increasing costs has put a lot of pressure on mining companies to ensure their operations will survive through the current economic downturn. While history tells us that the cycle will turn around and prices will go back up again, how many mining companies will be left to take advantage of the next upturn? On average in Australia, the maintenance of mining equipment accounts for up to 50% of operating costs; which equates to nearly $15bn per year. In addition to trying to boost productivity, mining companies are also putting a lot of pressure on reducing costs; all with the intention of maintaining/increasing profit margins and thereby keeping shareholders ?happy?. The whole premise of our economy is based on ?growth? and ?profits?. Movements in the market place force mine owners to ?react? to short term fluctuations. And if that movement is downward; operations people at the sites are forced to start reducing costs. Is this cost reduction done in a logical, systematic way where all risks (short-, medium- and long term) are considered? Invariably, the answer is no! Short term ?fixes? are normally implemented with little, or no, regard for medium- and long-term impact. And the reason for this is that management is not fully focused on the long term; focus is mainly on survival. Decision making is driven by shareholder sentiment and history tells us that this is largely short-term. So given these paramteres to work within, what role can ?Asset Management? play in assisting management to meet shareholder and market requirements whilst still maintaining long-term viability of their operations (to the long-term benefit of shareholders dare I say). As maintenance costs account for nearly half the operating costs of mining companies; the ?smart? management of assets is not only crucial; it is essential for survival in today?s economic climate. What is asset management? Asset Management, according to the UK-based Institute of Asset Management (IAM) is ?the systematic and coordinated activities and practices through which an organization optimally and sustainably manages its assets and asset systems, their associated performance, risks and expenditures over their life cycles for the purpose of achieving its organizational strategic plan.? How important is asset management in today?s mining companies? IAM goes on to say: ?This definition of asset management represents a significantly greater scope than just the maintenance or care of physical assets, and is closer to the central purpose of an organization. Good asset management considers and optimizes the conflicting priorities of asset utilization and asset care, of short-term performance opportunities and long-term sustainability, and between capital investments and subsequent operating costs, risks and performance. ?Life cycle? asset management is also more than simply the consideration of capital costs and operating costs over pre-determined asset ?life? assumptions. Truly optimized, whole life asset management includes risk exposures and performance attributes, and considers the asset?s economic life as the result of an optimization process (depending upon the design, utilization, maintenance, obsolescence and other factors).?

Feb 23, 2014

By John S. Lagarias

When ore bodies are faulted or mill feed turns refractory, mining managers and engineers act vigorously to convert imminent failure into eventual success. The recent proliferation of onerous "environmental" regulations and restraints is likewise a threat to successful mining enterprise, in some ways more insidious and dangerous than the problems presented by natural obstacles. The regulatory burden has become so heavy that a pall of pessimism covers much of the mining enterprise. In this paper we frankly recommend a Pollyanna approach, making not just "the best of it" but directing the whole environmental process: first, to improve our planning, engineering, and operating procedures; and, second, to demonstrate the need for modification of laws and regulations which are intolerably burden-some to both the mining industry and the public. It is customary for government officials and environmentalists to point out how great are the new environmental regulations and how successfully these have improved the natural environment in particular and the quality of life in general.

Jan 1, 1978

By L. K. Smith, C. R. May, K. R. Schrag, H. Buchwald

"New contracts for 65 million long tons of coking coal valued at over $900 million, over the next 15 years, herald the rebirth of Alberta's coal industry. The industry is optimistic that export orders may reach 20 million tons per annum by the mid-1970's. Coal will be extracted from underground and surface mines and it is expected that the total labour force will double from the present 1,200 men within the next two years. Ali the health hazards associated with coal mining are likely to be encountered and it will be incombent on the Provincial Department of Health to specify the standards which relate to health and environment where no such standards have previously existed. This paper examines some of the problems which are being encountered in setting up an environmental health program and reviews the practicability of environmental monitoring methods, with special reference to respirable dust."

Jan 1, 1969

Most mining operations have been happy to live in blissful ignorance of what their equipment is really capable of. Shareholders have been shown increasing tonnes output per employee (due to rationalising employee numbers). It is now known that the best practice for large mining trucks is 52 per cent higher than average or best practice for excavators is 41 per cent higher than average, or 38 per cent in shovels or 35 per cent with draglines, etc. The data is available. The bell curve of performance is flat. Substantial underperformance is rife. If you are working in or supplying equipment or services to one of the majority of operating mines that donÆt achieve best practice surely you want to know why. Or maybe you donÆt? For many mining people this sort of knowledge could be dangerous to their career so keeping the MD or CEO in the dark is a good option. Many suppliers donÆt want the performance of their equipment benchmarked? Mining consultants donÆt have the data so they are happy to keep guessing. Unfortunately, many Business Improvement or Business Excellence projects are about ticking the participantÆs æcareer boxesÆ. The first step to capacity utilisation is knowing what the capacity is. Even then people and culture will get in the way. People are the biggest hurdle to capacity utilisation. This paper will discuss what the mine of the future (and today) will need to do to utilise the productive capacity of its assets. It is not just benchmarking. It is not just automation. It is not just technology. It is about engaging those people who impact on equipment performance; right from the operator up to the Mine Manager. Doing it better involves a process to facilitate change and a culture which says it is OK to try even if you are wrong.

Jan 1, 2009

This paper discusses equipment replacement strategies and specifically addresses the upgrading of technologically superseded equipment. The process of equipment replacement evaluations is reviewed, and areas have been highlighted where currently accepted practice results in a bias towards retaining existing equipment longer than otherwise justified. The Discounted Average Cost Method is described and the advantages of the technique for this style of decision making discussed. Several key issues influencing the replacement evaluation are also presented together with examples from recent consulting work.

Jan 1, 1992

By John Smith

"The RTZ Corporation PLCFrom a company's point-of-view, a good investment decision is one which results in the purchase of an asset that is worth more than it costs. Thus, in order to judge the merit of an investment opportunity, it is necessary to estimate the value of the assets to be acquired.Discounted cash flow (DCF) analysis has become widely adopted by companies in assessing potential new investments. The principle is a simple one: invest in projects which have a positive net present value, and reject those which do not. However, perhaps because of its apparent simplicity, DCF analysis is frequently misused. Good practice in the use of the technique is discussed, together with several common misconceptions.Sound analysis requires sound data; thus, the valuation process relies heavily upon a wide range of specialists to provide the basic input from which cash flow forecasts can be built up. The analyst must maintain close liaison with these specialists from the outset in order to ensure that the data provided is indeed relevant and complete.IntroductionBefore turning to the main subject of this paper ""How Companies Value Properties"", it is of interest to consider first a slightly different question ""Why do Companies value Properties""? In other words, for what purposes are such valuations prepared? Certainly the commonest, and probably the most important circumstance in which a valuation is required is when the company is considering an investment opportunity. This may be the direct purchase of a property or group of properties from a third party, but could also be the opportunity to develop a new operation or expand an existing one.A very simple objective in making any kind of investment is to make our shareholders richer than they would otherwise have been. That is, to make investments whose value to shareholders exceeds the consideration required to acquire them. Thus the investment decision focusses on the difference between an asset's value and its cost.This distinction between ""value"" and ""cost"" is an important one. Study of a company's balance sheet may tell a lot about the cost of this company's assets, but very little about their value. Then again, it is sometimes argued that a business should be bought because this will result in assets being acquired for less than their replacement cost. This merely compares one cost with another, it says nothing about value."

Jan 1, 1991

By Carleton K. Smith

Due to special job or client requirements, there will always be some variation in the philosophy of organizing and controlling construction under a project management contract. In typical cases, however, some standard procedures apply. Controls on a construction project are best described only in general terms. They should apply to the total job and can be most effective only when all pieces of the job organization fit together to support a control system for the entire project. Controls are more than a system of reports, schedules, and tabulations-they are the result of an integrated organization dedicated to getting a job done on time and within budget. One of the most important aspects of project control is the construction organization. It must include the right people, facilities, and site equipment, as well as the authority to do what's necessary to accomplish the work. This should be set up to function with as little involvement from off-site or the home office as possible. However, the jobsite construction group must work within established policies and guidelines and is subject to continuous off-site or home office monitoring. In other words, the job-site leaders need to have a clear definition of their responsibility, their authority, and the necessary people and equipment to make things happen. With that philosophy in mind, this is how Bechtel sets up a new job to be

Jan 10, 1980

By Douglas H. Bolton

In recent years, equipment manufacturers have been busy developing remote control systems to catch up with the sophistication and efficiency of continuous miners. Now the tables are turned, and manufacturers are undertaking the new challenge of upgrading, refining and equipping continuous miners to take full advantage of the capabilities made possible by modern, successful remote control systems. Because the operator can safely advance the miner farther without pulling out for roof bolting, continuous miners now need to be equipped with means of complying with correct face ventilation, dust suppression, methane detection, diffusion and improved lighting. Some of the exciting possibilities being developed to catch up with remote control include feedback controls using laser beams as datum points, coal sensing devices with feedback signals to show the operator what the machine is doing, show where it is relative to the coal seam, how hard it is working, and more sophisticated use of cyclic control. Mining machinery manufacturers have accepted the new challenges, and faster, safer mining procedures are already in sight.

Jan 1, 1975

By R. H. Lesernann

Copper has held up extremely well as we have moved through the trough of the economic cycle. In the aluminum, lead and zinc industries at least half of the Western World production was unable to cover its operating costs at the prices prevailing throughout most of 1991. In copper, less than 10 percent of production ran in the red last year. Most of that was in Peru where the government has not allowed its currency to devalue at the same pace as inflation. Thus, mining company revenues in local currency terms have risen very modestly while costs have escalated tremendously. Excluding such governmentally imposed distortions, virtually every mine in the Western World ran at a profit last year. While copper producers have to be extremely happy about staying in the black through the trough of the consumption cycle, consumers have to be worried. They must be asking themselves, "If copper held at over $1.00 in a year when consumption declined, how high will prices go when demand picks up?" Consumers are accustomed to paying high prices at the peak of the cycle, but they are also accustomed to paying low prices at the trough of the cycle. What went wrong this time?

Jan 1, 1992

By Tegner C. Johnson

Just a few years ago, my company was referred to as the Marion Steam Shovel Company. Though we still make shovels, both two and eight-crawler types, the eight-crawler stripping shovel appears to have been replaced by the walking dragline for overburden removal and in some cases for the mineral as well. The walking dragline appeared in the coal fields in the early 1930's. It is popular because it can cope with overburden depths in excess of 100 ft and with blasted sedimentary rock, all at an O & O (ownership and operational) cost of ±10[c] per bank cu yd (bcy).

Jan 10, 1974

By W. M. Ross

AMONG the comparatively few A radical changes in mining equipment in recent years is the introduction and use to an ever greater degree of detachable bits for rock drills. Just how great the possible field for economic application of this innovation is, and to what ex- tent detachable bits are used instead of the conventional type of drill steel, are matters of conjecture. Just as a rough approximation, one might conceive that at least three-quarters of the drilling done in mines today could better be performed by steel with detachable bits, instead of only about one-quarter as at present.

Jan 1, 1939

By PHILIP N. MOORE

THE problem of managing the policies of the Institute so that a middle course may be drawn between the close control of a few who are so situated that they can give continuing attention and intermittent control by occasionally present directors presentation .of the subject is to bring clearly before the membership of the Institute a summary of the attendance at the Directors' meetings for the past four years.

Jan 1, 1924

By P W. Cleary, G K. Robinson, M D. Sinnott

Discrete element modelling (DEM) is a research tool that involves numerically solving the equations of motion of large numbers of particles. It can be very useful for investigating mechanisms that can lead to bias when extracting samples from material as it is carried on a conveyor belt or as it falls from the end of a conveyor belt. DEM is more realistic than conceptual models and mathematical models; but it is not as realistic as physical experimentation. Its primary advantages over physical experimentation are that it is cheaper and that it allows many factors to be varied while keeping other factors unchanged.This paper reviews our investigations of the performance of sampling systems by using DEM. The sampling systems investigated include falling-stream cutters, cross-belt cutters, Vezins and a device called a ætrue-beltÆ cutter, which is being developed. The purpose of the review is to explain what DEM has contributed to the theory and practice of sampling, and to indicate what it is likely to be able to contribute in the future.CITATION:Robinson, G K, Cleary, P W and Sinnott, M D, 2012. How discrete element modelling is influencing the theory and practice of sampling, in Proceedings Sampling 2012 , pp 15-20 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 21, 2012

By M. Matthias

A study, part of a doctoral dissertation (Matthias, 1991), was conducted during 1987 and 1988 to establish the means by which professionals assess and maintain their competence during the various stages of their careers. The study elicited responses from fifty-nine subjects representing engineering, pharmacy and medicine (twenty subjects from engineering, nineteen from pharmacy and twenty from medicine) on their perception and assessment of continuing competence. The findings revealed a wide variation of how professionals perceived their continuing competence and the means they adopted to keep current. The implications of the study are significant for adult education practice and theory building. The author strongly believes that now, more than ever, engineers must take ownership of their careers and professional development activities. While management and supervision have a key role to play, it is the engineer, who is ultimately responsible for the scope, planning and implementation of her/ his professional development needs. An example from one high technology company will illustrate these points.

Jan 1, 1999