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"Cash flow modelling during project evaluation is enhanced when probabilistic methods are applied to the inputs. One of the important inputs is the quarterly production profile. Typically, the steady-state production profile provided to project evaluation practitioners is deterministic, with each quarter the same as every other quarter. This is unrealistic as actual production profiles from existing mines exhibit a range or quarter-on-quarter variance. Monte Carlo stochastic simulation of the production profile can be used to provide a range of possible outcomes, but how are these ranges selected? This paper describes the use of quarterly production variance from a large database of mines worldwide as a benchmark to inform the appropriate selection of ranges. The coefficient of variation is used to rank the production from mines, with quartile analysis applied to indicate industry best, median and worst variation. Due diligence of existing mines and evaluation of future production performance can be quantitatively assessed using this approach. Examples of the effect on value are provided.CITATION:Stewart, C A, 2016. Production variance benchmarks and their use in project evaluation and due diligence, in Proceedings Project Evaluation 2016, pp 201–213 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By Mauri Kauppi, Pekka Niemelä

World HCFeCr production is 6.0 million tonnes. Correspondingly 1.1-1.6 t slag / t FeCr is produced depending on the raw material basis. Essentially all FeCr is produced in submerged arc furnaces, while the role of competitive technologies like DC is limited. In all furnaces fluxes are used to optimize the slag composition. Vital characteristics are smelting point, electric conductivity and viscosity. The main components of FeCr slag are SiO2, Al2O3 and MgO. Additionally it consists of Cr-, Fe-oxides and CaO. Granulated slag and/or classified slag products are produced depending on the production process. The slag products are mainly marketed in road and civil construction purposes but also in producing refractories. Normally crushed and screened slags are produced simultaneously when recovering alloy. The leachate of slag products is low and performance results are excellent. Slag products successfully replace natural sand and macadam. Generation of waste is essentially reduced. Producing and using slag products are described as BAT-technology and it is an essential environmental aspect. Outokumpu Tornio Works produces 320 000 t FeCr-slag/a. This paper deals with formation of slag in smelting process, its chemical composition, physical and structural characteristics, utilization and product specifications as well as environmental aspects. The slag products are standardized and CE marked. Additionally the role of slag in smelting and alloy recovery is reviewed in this paper.

Jan 1, 2007

By L. B. Paterson

Mining Engineers throughout the world have an appreciation for the importance of the role of the Blasthole Drill in one of the primary elements of the mining process. This paper highlights areas that could influence the overall cost effectiveness of that process of breaking rock and how equipment is designed and configured to meet that challenge. Factors influencing drill productivity and overall cost effectiveness are addressed, both in the Mine Environment and on the Blasthole Drill.

Jan 1, 1999

By John W. Straton

Following the completion of the paper presented in February, 1972, data were received from many other mines and some original respondents submitted more complete questionnaires. The computer program was changed to permit the results to reflect more clearly all the data reported by the mines. The original paper was revised to reflect the new information. There were significant changes in some numerical values, particularly where the size of the sample changed appreciably. Some limited samples considered originally in arriving at conclusions were not relied on in this revision. The revised tables and text are of the same design and format as the original paper.

Jan 1, 1972

By M. M. Nash

Since the late 19th Century, scholars have been concerned about finding proper methods of managing business. The search seems to be taking us full-circle to the time and motion studies of Taylor (Horn, 1987). It wasn't until the late 1970's, however, that systematic investigations were made in the mining industry. One of the first was a study by Sanders, Patterson, and Peay (1976). That project explored the relationship of attitudes and safety. Peay, Atkin, and Goodman (1977, then reviewed the whole area of Organizational Development, including the so-called Rushton experiment.

Jan 1, 1988

By D Kent, J Bullock, M Wilkinson

Over the last few years at Glencore’s Mount Isa Copper Operations (MICO) mining conditions have become increasingly challenging through lower head grades and higher work indices. MICO has had great success improving operating efficiencies and increasing productivity through focusing on technology, innovation and operational discipline. The recent implementation of the Mine Site Technologies (MST) ImPact System has supported the continued transformation of the MICO operations through improved personnel safety and direct measurement of productivity. The ImPact System has implemented new safety systems such as the heavy vehicle proximity detection system, underground personnel tracking system and emergency evacuation dashboards improving the overall safety of the workforce. The ImPact System has facilitated productivity improvements via real-time equipment and personnel monitoring, and the implementation of exception reporting (personnel productivity), KPI reports and production dashboards, and transparent reports highlighting developing maintenance issues.This paper discusses the components of the ImPact System, the current installation at MICO, and critically analyses the implementation processes and right sizing of the system to meet the needs of the business today and into the future.CITATION:Bullock, J, Kent, D and Wilkinson, M, 2017. Productivity and safety improvements supported by MST’s ImPact System at Glencore’s Mount Isa Copper Operations, in Proceedings 13th AusIMM Underground Operators’ Conference 2017, pp 279–286 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 16, 2017

By V. R. Bovino

In the early 80's, the cover of a major weekly magazine proclaimed the "Death of Mining." A few years ago, mining conventions, similar to this, around the country sported the theme, "The Survival of Mining." Today, the SME announces that "Mining is Alive." Being part of an industry that is simply alive is not very exciting. We can do better! Our challenge must be to flourish, blossom, maximize our potential and expand our horizons. The pace of rejuvenating this industry is still woefully inadequate. The new generation of mining industry leaders recognizes the urgent need for bold operational changes?changes in the way we deal with our employees? changes in the way we achieve productivity? and changes in the way we reward our employees for productivity.

Jan 1, 1991

By A. J. R. Smith

"CANADA'S ECONOMY TODAY is about two-fifths larger than it was six years ago, as measured by the total volume of production of goods and services. Such an achievement has been a rare phenomenon in Canada's first one hundred years. Excluding the forced-draft expansions which took place under war-time conditions, perhaps only the first decade of this century recorded a performance of greater dimensions, when, with massive immigration, the opening up of the West and a powerful array of well-de-signed development policies, the country was looking forward confidently to a great future of nation-building in the twentieth century.What makes Canada's over-all economic advance since 1961 all the more remarkable is that six years ago there was virtually no one in this country who anticipated an expansion of such dimensions. Back in the buoyant conditions of 1956-57, perhaps such an achievement would not have seemed beyond our grasp. After 1957, however, Canada stumbled through an extended period of slow economic growth, high unemployment and substantial and widespread under-utilization of its productive capacity. By the early 1960's, conditioned by the emergence of substantial, persistent and pervasive slack in the economy, t h e r e were few Canadians bold enough to anticipate that their economy was about to embark on a Great Expansion. However, this •is, in fact, what occurred. Beginning early in 1961, Canada moved forward into a sweeping advance which grew into the longest and largest peacetime business expansion in Canada's first century as a nation -a truly great expansion by any standard of measurement. This strong thrust has moved Canada into the front ranks of over-all economic expansion among the industrially advanced nations in the 1960's."

Jan 1, 1970

It is no longer adequate when starting a new mine to simply select the best equipment. Today's competitive international commodity markets demand superior efficiency which requires systematic involvement of people in continual improvement of production and commercial processes. True Total Quality of Management (True TQM) principles provide an operating philosophy for maximising productivity and minimising unit costs of output. The presentation will show the practical and successful use of these principles. This paper will introduce the case study and provide background material on True TQM.

Jan 1, 1995

It is no longer adequate when starting a new mine to simply select the best equipment. Today's competitive international commodity markets demand superior efficiency which requires systematic involvement of people in continual improvement of production and commercial processes. True Total Quality of Management (True TQM) principles provide an operating philosophy for maximising productivity and minimising unit costs of output. The presentation will show the practical and successful use of these principles. This paper will introduce the case study and provide background material on True TQM.

Jan 1, 1995

By Tom Learmont

The importance of coal in solving our energy problems has been widely discussed; the world demand for food requires increased fertilizer production and the minerals to produce fertilizer must be mined. We have seen an explosive increase in the demand for large stripping equipment. It is appropriate that we review this equipment and determine what can be done to improve productivity. While we have used coal mining as an example in the study, much of the discussion will apply equally to other forms of stripping.

Jan 1, 1975

By E Deucker, A White

Gold Fields Australia (Gold Fields) has identified that improving productivity through more detailed shift planning and operational control of mining activities is a key driver to the success of their business. The Hamlet mine was chosen as a pilot site to trial a system that would allow production engineers and shift bosses to align the execution of short-term activities with the longer-term goals of the organisation.Gold Fields partnered with Deswik to introduce an on-site, collaborative, web-based system to allow mine planners to quickly build-up a detailed, activity-based, shift schedule for the coming week from the 13-week plan. Multiple stakeholders could then review and alter the plan, and then track and manage the execution of the activities.The system is designed to be integrated with production data capture systems to allow tracking of progress towards completion for each activity, as well as to plan and monitor the equipment operating in the mine. Integration of systems allowed engineers to use the large quantities of production data being captured to make informed decisions in the operations environment.The system replaced a complex set of spreadsheets that required expert users in Gold Fields to maintain. By capturing the data in a central database, the planning process is transparent and historic data from the execution of activities is available for analysis to improve productivity in the future.The system has ensured that the highest priority and critical path activities for the business are completed at the right time, improving the efficiency of operations.CITATION:Deucker, E and White, A, 2017. Productivity improvement through collaborative shift planning and tracking, in Proceedings 13th AusIMM Underground Operators’ Conference 2017, pp 225–234 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 16, 2017

The history of mining is rightly proud of its achievements in improving productivity and cost improvements over the years. No matter what measure is used, tonnes per manhour, cost per tonne, etc vast improvements have been made over the last hundred years. In fact over the last ten years in Australian coal mines raw coal output per employee has increased by 60 per cent. When one examines why these improvements have taken place the principal reasons have been technological advancement in mining equipment, excavator and dump truck capacity increases, longwall and continuous miners continually improving in reliability and size. Of course all these improvements are correlated to an increase in capital cost. Even with the above-mentioned advances the pressure for increased performance is as strong as ever. The international mining and mineral-processing sector is currently operating in a recessive market with some traditional commodities, eg gold trading at 20 year lows. During recessive times senior management will demand greater returns on capital employed: the obvious choices being reducing costs or increasing throughput. In addition, head office environments will often place a capital freeze on operational management so the opportunity to take advantage of technological change is not available. The challenge is, therefore, to increase throughput and cut costs without the need for capital. The answer is to optimise the existing labour and plant. If done systematically a result in productivity improvement, in our experience, as high as 45 per cent can be achieved with the average across South East Asia and Australasia being 21 - 23 per cent. The intention of this paper is to present a systematic approach to labour and machine utilisation thereby gaining the greatest possible return on the existing capital base.

Jan 1, 1999

By H. M. Callaway

There are key words common to Government and the minerals industry, the use of which immediately spark interest, argument and confusion. Among these is productivity, a term ranking for widespread misunderstanding with mineral self-sufficiency and mineral conservation. Each interpretation of these words tends to emphasize a single aspect and either minimize or ignore the complex dynamic system of things that influence the Nations mineral productiveness. This paper1, abstracted from a monograph on lead now being prepared for publication by the Bureau of Mines, not only sheds light on the trend of productivity in the lead-zinc mining industry but it presents the basis for forming a common general notion of what the term productivity implies.

Jan 11, 1961

By D. de la Villa

From 1989 to 1992 Rio Tinto Minera has developed and implemented a productivity program in its Huelva Plant, including Smelter, Acid Plant and Electrorefinery. This Plan was designed in order to increase productivity, reduce emissions and produce a better quality of cathodes. This paper describes investments and operating improvements involved in this project, focusing on Smelter and Acid Plants, and comments the results obtained so far.

Jan 1, 1993

By B. M. McKay

The Walnut Creek Mine was developed in 1989 to supply lignite to the Texas-New Mexico Power TNP-ONE power plant. Being new, we had the opportunity to start from scratch and rethink many of the traditional methods of managing a mine operation. We had the opportunity to create a team environment, encouraging people to get involved and make decisions. The founding philosophy of the mine, "A Quality Product by Quality People", acknowledged that the key to a productive, quality operation was the people. This paper will explore methods employed by Walnut Creek in selection of team members, building the team and the relative success of these methods.

Jan 1, 1993

By W. Clark Ashby

Productivity is a fascinating concept. Like motherhood or apple pie, we know it as a good thing. Just what it means is not so clear. To a coal miner we assume it means tons of coal hauled from the mine. To the company president it means profit after capital, labor, and other costs have also been reckoned. To the government economist it means output in a balance of payments. What does it mean to the biologist, and can reclamation really be productive? In this paper we discuss productivity from a biological viewpoint, give some yield data for various types of reclamation plantings, and discuss how our demand for or acceptance of differing kinds of productivity is tied up in bigger questions of land use, environmental stability, and resource allocation.

Jan 1, 1981

The US Bureau of Mines' dictionary of mining terms defines productivity as "the efficiency with which economic resources (men, material, and machines) are employed to produce goods and services." Or, the relationship between the physical outputs and the physical inputs used to produce those outputs. As demand for mine materials dropped, mining companies and equipment manufacturers discovered that ratios between the inputs and the final products were disproportionate to the profits realized. Some companies are fighting for survival. The US, while still the most productive country in the world in absolute terms, is looking over its shoulder as other industrialized nations continue to exceed its yearly productive growth rate. According to John Belcher, Jr., of the American Productivity Center in Houston, TX, the US has seen a steady decrease in productivity growth since the mid-1960s. During the post World War II period, the US labor productivity growth rate was 3.2% annually. The slowdown began in 1965 and by the mid-1970s, the country's annual growth rate was 1%. By 1978, labor productivity growth ceased to gain at all and from 1978 to 1980 a 2% decline occurred. Solutions to the productivity decrease are increasing product prices or improving productivity. By increasing prices, though, the producer runs the risk of pricing himself out of the competitive market. To maintain an acceptable profit level, prices must increase proportionately higher than required to offset production cost increases, Belcher says. Many companies are turning to in-house productivity improvement programs as an answer to increased costs and declining profits. These programs are geared toward management commitment and employee awareness of what productivity means. Companies are finding ways of measuring productivity levels in financial reporting, budgeting, and planning. Organizational teams have been formed to coordinate activities and oversee product management, and improve productivity of materials and capital investments. This special issue of Mining Engineering examines productivity in the mining industry. First, there are articles about various, and different, factors that affect productivity in each of ME's five main readership areas - exploration, mining, processing, coal, and industrial minerals. There is also a look at mining industry productivity from the manufacturer's view. The next section of this special issue is devoted to some topics that affect all areas and sectors of mining: research, management practices, computers, maintenance, and energy management. Then follows case studies in exploration, coal, and iron and steel. These studies provide examples of practices and strategies used by companies and operations to boost productivity.

Jan 11, 1983

By B. A. Stainton, John D. Gill

OUR combined economic activities have as their goal the maximum of individual well-being and national security. In this age of intense international competition the two objectives are closely related. For many decades, the maximum of well-being and ability to maintain national security have moved generally upward. The best single measure-perhaps the only adequate measure -of the level of the rising goal is the per capita real national income (national income corrected for price changes). For centuries before the industrial revolution the income of the world's population changed little from generation to generation. In our country prior to 1800 the growth of national income was hardly measurable from decade to decade. Since 1850, perhaps since the "industrial revolution," the growth of per capita real income has been increasing geometrically. Of major importance is the accelerative growth of the productive ability of our economy. Inadequate consideration of its implications is partly responsible for periodic delays in solving our princi-

Jan 1, 1946

By Andres Vikdahl

The Rönnsktär smelter has recently undergone a series of technical and operational changes. This changes are caused by our own will to remain and gain in competivety and to adapt to the ever changing surroundings. To be able to remain competitive in surrounding with high wage costs, high inflation and high environmental standards thorough cost management is needed. The Swedish economic policy in the beginning of the 80'ies consisted amongst other things of two devaluations. The exchange rate of the Swedish Krona was reduced with approximatively 25 %. This boosted the profits of our export industry, some even believed we entered the land of milk and honey ... And working in this promised land where everything turns into profit it is very difficult to be careful and restrictive with your spendings. Apart from some healthy and fruitful investments we allowed ourselves yearly steady increases in salary for ever reduced number of worked hours and we of course employed more people. Inflation rates went up and so did property prices. In 1986 finally reality catched up on us. Reality in the form of too high costs started to hit Swedish export industry 5-6 years after the big devaluations. Furthermore the high inflation rate also hit the domestic industry a couple of years later. Together with other important factors Sweden faced a severe home-made recession in the beginning of the 90'ies. With this background we now report and analyse our smelter's performance and operating results, shown in fig 1 The main constrictions on smelting and refining at Rönnsktär are today: * Income restrictions by governmental production level Limit * Throughput resmctions by governmental emission limit * High capital costs in the aftermath of Swedish high inflation in the recent decade * Low work force turnover Below we will illustrate how we tackled with these issues along the following lines: * People * Quality * Technology

Jan 1, 1993