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By J Ross

The foundation of effective leadership is communication. You can have all the leadership theories, models and training you want, but in the end it is all about leaders talking to, listening to and understanding the point of view of those below and above them.The foundation of effective safety is peoples’ behaviours. Every incident, every near miss and every safe act comes down to what one person does and how that affects themselves and others. We tend to focus these behavioural considerations on the people at the ‘coal face’, those most in harm’s way. But it is the individual behaviours of everyone in the organisation, particularly those at the top, which are just as (if not more) important. The foundation of effective safety leadership in the mining industry is that it starts at the top, with the individual behaviours of leaders. The behaviours of each and every leader will be reflected in their teams. And where their teams are made up of leaders, these leaders will pass these behaviours on to their teams and so on. It’s the sum total of what people see their leaders do and what they do as a result, that creates the ‘culture’ of the business – and it’s this culture that makes or breaks how safely people work.

Mar 21, 2011

By Steve Kane

Lightning is a very real problem in the surface mining industry. Today, as adverse market conditions continue to influence the surface coal industry, it has become necessary that all functions of the surface mining process become as efficient as possible. High production with reduced manpower is the winning combination of staying competitive in the market place. We at AMAX Coal are committed to staying in the coal business, but we have always been committed to providing a safe work environment for our people and will continue to do so in the future. Approximately two years ago, our Midwest mines installed state of the art lightning detection and warning systems at our mines. This paper will cover its application at Delta Mine; the benefits and problems encountered, and the impact this system has had on Delta Mine.

Jan 1, 1992

There is a basic need for the health and safety manager to know what work he or she is to do and how to do it in a more professional way. Peter F. Drucker in The Practice of Management said, "The ignorance of the function of management, of its work, of its standards and its responsibilities is one of the most serious weaknesses of an industrial society-and it is almost universal." The biggest need in mining today is for its managers to have a thorough understanding of the management control activity.

Jan 11, 1979

By G Lumley

Gold miners have been underperforming the price of gold for a number of years. So why has the æmarketÆ undervalued our gold miners relative to what they have been mining? The low valuation ascribed to gold mining companies is largely attributable to their profit performance. In the period since 2006 the price of gold in A$ has risen about $900/oz, but the real cash margin (operating cash costs + cost of finding and/or acquiring deposits + the cost of bringing them into production) has only risen about A$100. Rising operating costs are a major part of this reduction in real margin. Energy and labour costs have risen more than the inflation rates across a number of countries as have taxes, royalties, etc. There are however, more significant contributors to the rising cost base. Firstly, in 2006 the average gold grade was 2.0 g/t; today it is 1.3 g/t. Secondly, strip ratios (for surface mines) have increased by 19 per cent during this time. Open cut mining equipment unit output across the world has dropped by 26 per cent during 2006 - 2012. Finally, costs have risen by 55 per cent during this time period. Consequently, there is now 3.8 times more mining cost required to produce an ounce of gold from surface mines compared with 2006. The decline in gold grade looks to be a permanent trend as does increasing strip ratio if output is to be maintained. Costs will continue to rise although cost control will be necessary. Reversing the decline in equipment performance and closing the gap between median and best practice provides the hope for a sustainable reversal of cost increases. The current gap between best practice and median performance has grown to 112 per cent for mining trucks, 168 per cent for excavators and 169 per cent for front end loaders. Closing this gap is the potential for a more profitable future. For most gold mining companies improving mining efficiency is not an option; it is an imperative.CITATION:Lumley, G, 2013. How many gold mines will inefficiency kill?, in Proceedings World Gold 2013 , pp 267-276 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 26, 2013

By Brian Hall

For some years, the mining industry has been consistently delivering returns below the market average. One of the causes is a disconnect between what is perceived to drive value creation by many industry analysts and senior corporate executives, and what actually drives the intrinsic value of mining operations. The perverse effect is that strategies that should increase value are perceived to have the potential to drive share prices down, and vice versa. This paper challenges common perceptions of what drives a mining company?s value. Anecdotal evidence suggests that the key drivers of value in the market, and hence in many boardrooms, are such things as increasing the reserves and production rate, and reducing unit operating cost. However, while the quoted reserves may satisfy ore reserves reporting code requirements to be economic, this does not imply that they are optimal. Often, a proportion of the quoted reserve reduces the potential value of the operation. Metal price increases, increased production rates, and operating cost reductions are all seen as conditions or actions that can improve value, and lead to cutoff grade reductions, thereby increasing ore reserves. However, modern cutoff theory and studies conducted by the author and his colleagues show clearly that, while breakeven cutoff grades will fall in these circumstances, optimum cutoffs may be much less volatile, and may even increase. Results from case studies indicate that value is maximised by right-sizing, not maximising, the production capacities, and by optimising the cutoff strategy. Values of many existing underground mining operations can be increased significantly by a substantial cutoff grade increase. Also, an increase in downside risk, and hence reduced returns, can occur using typical life-of-mine planning strategies if prices received are lower than predicted. Since this is often the case, low industry returns may be a direct result of typical strategic mine planning processes. Relatively simple cost-effective techniques are available to provide senior decision makers with information needed to assess the tradeoffs between their many conflicting corporate goals, and the balance between risk and reward. Often this information is not being generated at all. If it is, decisions affecting the value of the company are occurring by default at relatively low levels within the hierarchy, with senior executives apparently unaware of them or their potential impact. The paper concludes that without a re-evaluation of the way mining projects are valued, to demand proven value optimisation from mining plans by boards and mining analysts, the industry will continue to deliver below average returns.

May 1, 2003

In terms of tunnelling the mining industry is generally thought of as the crude cousin of the civil construction industry. Mining has tended to concentrate on speed and flexibility rather than the high standards required in civil tunnelling. Historically this difference has been based on the belief that such high standards were not required by the mining industry, they would slow down the development of the project and as a result increase the costs and extend the time period between start up and a positive cashflow.For civil works the construction of a tunnel is the project, for mining the construction of declines, crosscuts and drives are merely the means of accessing the orebody so that the real work can begin û MINING. Extraction of ore is the core business of most mining companies û it is what pays the bills.Though most mining companies have the equipment, the people, the knowledge and the ability to excavate tunnels, in the past mining companies did not appear to put the same energy into their tunnelling operations as they put into improving their ore extraction operations. In the past decade this appears to have changed, many mining companies now realise how important the correct excavation of a decline is to the success of the overall mining operation. They began to recognise that there were cost benefits to be gained in using the correct development techniques without overly sacrificing the benefits of speed and flexibility.This recognition also coincided with the growth of underground contractors whose predominant work was primary development (declines and ore access crosscuts and drives). The contractors again had the same knowledge, the same people, and similar equipment but their focus was different from that of the mining company û the contractors were focused on the development of the mine, the excavation of declines, crosscuts and drives. These deliverables were the contractorsÆ core business û itÆs what paid the bills.

Jan 1, 1999

By H. Allenius

Today, most requests for quotations force all bidders to follow the bid document to the letter. The choice is then made based on price since it is the only difference in technically identical offers. However, clients allow and even encourage suppliers to come up with alternatives. Overall economy again, is much more than low investment costs. Operation costs may affect the economy of a project far more than a million saved in investment. There is almost always the choice: Should we go for the cheapest solution or should we go for the most economical solution? We strongly recommend the study of the long-term effects on investments as they often surpass any apparent savings in capital expenditure. With high operating costs, time is never on our side. Almost all relevant inputs and outputs in a concentrator have a value that can be expressed in a suitable currency. Unit prices may differ substantially from one operation to the other, but everything has a price tag and globalization has made it possible to move both goods and services to almost any place in the world. Even a rather simple exercise can give a good indication on which process improvements are worth pursuing when investing in new systems or equipment. The ones that do not qualify, as money earners, will naturally appear as clearly. No ?rocket science? is required, just process knowledge, practical experience, an open mind and some common sense and the reward may be the difference of having a good or an excellent project. The model we have developed can be made as detailed as required, but we do not recommend too much detail, as it sometimes tends to distract work and obscure the important issues. Two different process solutions compared in a simplified example illustrate the importance of evaluating a project based on its long-term effects rather than focusing on the investment costs only.

Jan 1, 2014

By Andrew B. Crichton

THE oft repeated statements of the United States Geological Survey and the Bureau of Mines that the coal reserves in the United States are sufficient for 3000 yr have given us all a sense of security hard to disturb. If we discount that statement 66 pct, which to the uninformed seems drastic, we would still have 1000 yr supply, and why should mortal man worry about the difference between 1000 and 3000 yr supply of coal. That is exactly the attitude which many who should be better in- formed have taken toward the problem. A recent brochure "How Strong is America," by the New York Herald Tribune, states there is "no end to coal * * The truth is staggering * * U. S. has enough coal to last 4000 years." What the statement actually means is that the calculator got as high as 4000 yr and decided it was pointless to go on. The President's ERP Committee on Natural Resources and others in high places continue to assure the country of our superabundance of coal. In the past few days the “Wall Street Journal" carried an item from Director Boyd of the Bureau of Mines saying that within a hundred years we would need to triple our annual coal production of 6oo,ooo,ooo tons, making it 1,800,000,000 tons annually, and at that rate we had coal reserves sufficient for 1000 yr. In my humble opinion, we cannot now or ever produce 1,800,000,000 tons annually, be- cause we do not have the reserves in the producing districts to do it. Past reckoning in geology may be, as in the Psalms, a thousand years are as yesterday, but the future must be considered more realistically, and "a thousand years" is really a "heck" of a long time. In most developed areas, mining engineers can count the coal reserves in terms of a hundred years or less, and in some important areas now producing large annual tonnages in much under fifty years. They think when they hear of thousands of years coal reserves, reference is made to distant fields and "the fields are always green far away." The estimates of our coal reserves upon which we are relying were made in 1907 under the direction of Marius R. Campbell, Director of the United States Geological Survey. It is apparent this work was not well done. It was necessarily based on rather meager data because of the little development and prospecting as of that date. There were mistakes in the correlation of seams, and they assumed the continuity of thick seams throughout large coal bearing areas where coal often did not exist. The overstatement of coal bearing areas in the Campbell figures are common. The 1907 survey includes all coals over 14 in. in thickness to a depth of 3000 ft. The total coal reserves according to Campbell were 3157.2 billion tons. The production and mining losses that year would amount to -570 million tons and

Jan 1, 1948

By C Taylor, E Retz

Sequential Gaussian conditional simulation of wide-spaced exploration data has been completed in order to optimise a drilling grid at Fortescue’s Eliwana deposit. The aim of this drill grid is to improve the confidence in the Inferred Mineral Resource. A mineralised domain within the Joffre Member of the Brockman Iron Formation was selected to be tested as it makes up a large proportion of the Inferred Mineral Resource and is drilled at a reasonable spacing.One hundred realisations of Fe, SiO2 and Al2O3 grades were completed in the domain. Three realisations were selected for each analyte to represent the range of equiprobable values and a further realisation was selected to represent the truth data set. These realisations were used to flag theoretical drill holes on varying spacings and patterns. The theoretical drill holes were used to estimate into block models using ordinary kriging.These estimates were analysed and the accuracy and precision of each drill spacing was assessed. It was concluded that the greatest improvement in estimation results was noted at either a 100 m × 50 m or 50 m × 50 m spacing.CITATION:Taylor, C and Retz, E, 2015. How much do we need to drill?, in Proceedings Iron Ore 2015, pp 491–500 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

By R. W. Smith, D. L. Taylor, K. A. Altman

Recent research has shown that traditional sensitivity, what if and best case/worst case analysis of metallurgical data has the potential to over estimate the value of mining projects. Use of simulations, which rely on the input of statistical information, may provide more realistic predictions of the value of future projects. Actual metallurgical data is used to demonstrate that analyzing the data from a statistical perspective can give insight into completing an optimum amount of metallurgical testing and a mechanism to determine that samples used for the testing are truly representative of the ore that will be processed.

Jan 1, 2000

By Greg Barnes

Agenda ? The Mining Stock Life Cycle ? Current Environment ? Valuation ? Golds ? Valuation ? Base Metals ? Case Study ? Quebrada Blanca Hypogene Commodity Investment Cycle ? Macro-Economic Indicators ? LME Inventories ? watch the trend; rising inventories ? bad for prices, declining inventories good for prices ? OECD Leading Indicators ? PMIs ? Purchasing Manager Indices ? Industrial Production ? more important for metals consumption than GDP ? Housing Starts ? US, Europe ? Auto Sales ? All things China ? metal imports/exports; SHFE inventories; SRB stockpiling ? Seasonality ? it does play a role ? What is Chris Dutton (TDSI Quantitative Analyst) saying?

May 1, 2010

By John Lohrenz

Consider an investor who, knowing future costs and revenues, can choose how rapidly to produce from a given mineral source. If the investor elects to make that choice to maximize present value of future profits, how do policies affect the choice? Various alternative policies are examined. Some, such as higher royalty rates, lead to slower production rates than would otherwise obtain. Clearly, the chosen rates of production are policy-dependent. One is wisely counseled to consider how mineral policies affect the rate of production from given sources when analyzing current and alternative policies.

Jan 1, 1982

By Bates H. Murphy

There is one quick way to substantially reduce the operating cost of a great many pining operations. It is to cut the demand charge on the use of electricity and gas. Demand charge is the utility company's charge for the maximum rate of energy usage which is in addition to the charge for the total amount of energy used. Energy demand is reduced by prohibiting simultaneous operation of devices, especially those that consume large amounts of energy, or by deferring the use of such equipment as air conditioners from one demand period to a subsequent period. To achieve that end, a control system can continuously measure the demand and turn off selected loads in accordance with established rules. Because of the complexity of most industrial plants, a computer is the best means of storing, measuring, calculating, and controlling the many variables associated with the many devices involved. A computer system for that use has been developed by the Westinghouse Computer and Instrumentation Division in Orlando, Florida. For most applications, this demand control system can be installed and operated by industrial plant engineering personnel with no special knowledge of computer technology. It can be used with both electrical and gas service. For clarity, let us examine electrical demand first.

Jan 1, 1974

By LeRoy D. Loy

The coal mining industry must be able to compete with alternate sources of fuel for the utility and industrial customers. If the industry is unable to control transportation costs, either due to government interference, or for other reasons, then mining costs must be kept down. Australia, South Africa, Canada, (and later Colombia) will take larger shares of the export market if mining costs are not kept competitive. The government's environmental regulations must be met without incremental increases in mining costs. Entrepreneurial instincts must be retained by the industry to provide for their investment in the future. What are the Problems with Existing Research? Government funding for coal mining research has been reduced or virtually eliminated. BCR (Bituminous Coal Research) is now a membership- supported organization, but its primary focus has been on health and safety-oriented research. BCR, however, is now attempting to widen its scope and conduct other types of research. There are almost no funds in EPRI's (Electric Power Research Institute) program for coal mining research. Large mining companies do some research for their own purposes and needs, but this is proprietary and therefore results are not shared with the remainder of the industry. The mining industry as a unit is not undertaking productivity (systems) oriented research in any common or cohesive manner.

Jan 1, 1983

By M Pyle, R Ch, T Vizcarra, ramohan, G Lane, G Ballantyne

Preconcentration, through gravity separation (Wallace et al, 2015), magnetic separation and particle size (Clout, 2013), has been used in many historical projects to convert low grade material into ore. More recently, pre-concentration technologies such as bulk sorting (Kurth, 2017), screening (Bearman, 2014) and coarse particle flotation (Vollert et al, 2019) have also demonstrated their ability to progressively reject waste through the value chain. These technologies can not only deliver stepchange improvements to the economics of mining operations, but can transform the environmental and social aspects by minimising water and energy consumption and significantly reduce the quantity of fine tailings produced. However, implementing progressive waste rejection requires technologies and approaches to be combined and applied in the right way to capture the value. From a technical perspective, progressive waste rejection introduces challenges related to the orebody, equipment performance, engineering and understanding the value chain from the resource through to final product. From a management perspective, the key issues are related to people and processes, in particular; motivating the business, challenging the paradigms, and introducing new ways of operating within the constraint of existing management structures to manage risks and minimise lost opportunity costs. This combination of technical and management issues means that progressive waste rejection is a complex undertaking for mining companies, yet the reward for the business and other stakeholders is potentially high and should not be ignored. This paper presents how progressive waste rejection can offer step-change improvements to the business case for high and low grade greenfield and brownfield projects based on case studies completed by Ausenco. The paper then outlines different implementation approaches from concept studies to execution to address the various technical and management challenges outlined above.

Nov 10, 2020

By Matthew Jeffrey

Due to the increasing environmental and public concerns over cyanidation, there has been a large amount of research into viable alternative lixiviants. Despite these studies, there is little published data directly comparing the kinetics of gold leaching for each of these alternatives: most of the literature is concerned with gold extraction from ores. This paper presents a detailed kinetic study of gold leaching in cyanide, armmonia/thiosulfate and chloride/hypochlorite solutions. The gold leach rates were measured using a rotating electrochemical quartz crystal microbalance (REQCM). This instrument allows the mass of a gold sample to measured in?situ, with a sensitivity of less than 10 ng. From the results of these studies, it is possible to select experimental conditions where the leach rates of the alternative lixiviants are similar to that for the traditional cyanide system.

Jan 1, 1998

HAVING already shown you the methods of making the moulds for casting and how they are to be prepared so that they may receive the melted metals well, it is now necessary, in order to complete the casting with perfection, that I show you not only the operations and instruments by which metals are softened, but also how metals can be made as liquid and fluid as water so they may easily enter into all the hollows of the moulds that you have made. Of these, besides the fire which is the prime agent, there is a very powerful furnace, which is called a reverberator.* I believe this is chosen not only for convenience but also because it is necessary in large casts. This is made of baked bricks, or of crude ones if desired or of suitable fire-resistant stones. Although all masters have the same objective, each one proceeds to make this kind of furnace according to his own ideas so that it can be said that there are almost as many different shapes of such furnaces as there are masters. This can be seen in the place that contains the metal, which is of such a shape that the force of the fire may operate better. Thus some masters are called good who, seeing no farther than what has been shown them, make them circular like a bread oven. Some others make them oval across the fire en- trance, while others extend them lengthwise. Also, there are some who make a single outlet for the flames, some two, and some three. Some make the entrance for the fire high and narrow and others, wide and low. The same is true of the place where the flames are generated, which is called the firebox. Some put the wood in from the side, some lengthwise in the same direction as the entrance for the flames, and some from above by means of a little hole. Also, one makes the vault low, and another makes it high. And while one puts an entrance for air underneath so that the

Jan 1, 1942

By Howard M. Wells

Portfolio theory and the Capital Asset Pricing Model (Modigliani and Pogue, 1974) provides an investment decision rationale which takes account of the benefits of diversification in reducing effective risk, but this theory does not consider the financial capability of the firm to survive large losses if they should occur. The LL-curve theory (Wells, 1976) takes the latter consideration into account, but it does not provide for the effects of diversification. This paper pro- poses a general theory to account for both diversification and the financial capacity of the firm to underwrite the investment risks.

Jan 1, 1983

By R Cannings, J Wallace, M McCamley

The mining industry continues to have major disasters (Bingham Canyon, Pike River, Upper Big Branch, Mount Polley and Samarco), which often have a devastating effect on the enterprise, in terms of personnel deaths and injuries, environmental destruction, and financial and reputational loss. These disasters are not imposed from outside the business or organisation, they are almost always a function of loss of control of the management of the organisation’s critical assets and processes that they contain or to which they are exposed.Asset integrity is discussed as an effective response to business risks in order to mitigate, control and recover from loss scenarios that could expose a mining operation to significant property damage and business interruption, or even total loss. Vital to this process is the identification and control of risks to critical assets. Components of a critical asset assurance program are presented for discussion.Formal risk assessment has a longer history in industries other than mining, eg petrochemical, nuclear, military, aviation and space industries. Risk assessment is a structured, proactive approach to understanding and improving risks, as opposed to a reactive ‘fix-it-when-it-breaks’ mentality. Risk assessment techniques were triggered by major public disasters, such as the Flixborough chemical plant disaster (1973), Three Mile Island nuclear plant event (1979) and others.Today, most industries see risk assessment as an inherent part of their business, but do mining sites capture business risks that are related to major loss scenarios, which could have a significant impact on the operation?Does your risk assessment process:- involve a team having the right skill set so that the discussion is both stimulated and technically sound?- use generic assessment when a site-specific assessment is needed?- fail to consider all possible outcomes, including maximum foreseeable loss (MFL)?- fail to identify all hazards and controls associated with a particular activity?- fail to monitor controls effectively?This paper addresses the issues identified by these questions and provides some direction for developing a risk management process where business risk associated with critical asset integrity is integrated with other business and safety and health risk processes to provide a robust method for managing your business. Case studies and common findings from critical asset failures are used to support the need to include critical asset assessments as part of business risk management processes.CITATION:Wallace, J, McCamley, M and Cannings, R, 2016. How robust are your asset integrity management processes? In Proceedings International Mine Management Conference, pp 53-64 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By William G. Fischer

Basic laboratory tests initiated the. Rock Mechanics program. The stress-strain curve, modulus of elasticity, Poisson's ratio, the uniaxial rock strengths, Mohr's envelope, the stress at failure, and creep were investigated. A series of underground problems were then approached using this information; and various field measuring devices, most of which were developed by the Bureau of Mines. Initially, stress concentrations near mine openings were evaluated using the stress relief technique. This required an accurate determination of the pre-mining stress field. Later, stress concentrations associated with the cave line .sere studied. After about thirty stress reliefs over an appropriate time interval the effects of one type of mining could be compared against another. The microseismic technique was used to investigate a possible application of warning devices near the cave line. A study of mane reorientation was made Problems related to the shape and size of pillars and barriers were studied. Partial extraction mining systems were evaluated. The effectiveness of roof bolting patterns were examined. Control of roof stresses was attempted. A new system of mining in heavy ground has been developed using the information secured in the Rock Mechanics program without this system, mining in more than one instance would Nave been next to impossible. Indeed; from this one discovery alone, the Rock Mechanics program has paid off in improved safety as well as in dollars.

Jan 1, 1964