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By V. S. S. Yadavalli, J. Hager, R. Webber-Youngman

"This article investigates the complex problem of a budgeting process for a large mining operation. Strict adherence to budget infers that financial results align with goals. In reality, the budget is not a predetermined entity but emerges as the sum of the enterprise’s operational plans. These are highly interdependent, being influenced by unforeseeable events and operational decision-making.Limitations of stochastic simulations, normally applied in the project environment but not in budgeting, are examined and a model enabling their application is proposed. A better understanding of budget failure in large mines emerges, showing that the budget should be viewed as a probability distribution rather than a single deterministic value.The strength of the model application lies with the combining of stochastic simulation, probability theory, financial budgeting, and practical scheduling to predict budget achievement, reflected as a probability distribution. The principal finding is the interpretation of the risk associated with, and constraints pertaining to, the budget.The model utilizes a four-dimensional (space and time) schedule, linking key drivers through activity-based costing to the budget. It offers a highly expressive account of deduction regarding fund application for budget achievement, emphasizing that ’it is better to be approximately right than precisely wrong’."

Jan 1, 2015

By J. Kang

Large-scale land reclamation has been undertaken in Singapore since the 1960s. In the early years, the fill materials excavated from the hills. In recent years, sea sand is the main source of the fill materials. The contractors used to import the sea sand from the neighbouring countries such as Indonesia. However, in early 2000, the sea sand import from Indonesia and Malaysia was banned. Cambodia, Myanmar, and Philippine therefore became the alternative sources for sea sand. Distance between the jobsite and these countries is over 1,200 km, and transporting sea sand from these areas became a critical issue that could affect the contractor?s performance. Figuring out the right combination of transportation means for a longdistance sand transportation would be challenging because of uncertain situations. We developed a stochastic simulation model, using ARENA, to figure out the right quantity of small-size barges, bulk carriers, and loading/unloading equipment, which could help project managers yield the most production for sand transportation. This paper presents how we developed the simulation model, how it was applied to figure out the optimum combination among various size barges, different bulk carriers, and various types of loading/unloading equipment, for the sand transportation project in Singapore.

Aug 1, 2013

By V. Osterholt

Sustainable development of mineral resources is based on a spatial model of the orebody that is only partly known from exploration drilling and associated geological interpretations. As a result, orebody models generated from the available information are uncertain and require the use of stochastic conditional simulation technique. This paper considers three methods for simulating orebody geology: (1) pluri-Gaussian simulation that limits the allowable contacts between the various units; (2) sequential indicator simulation using indicator kriging; and (3) an experimental multiple-point approach that captures some higher-order spatial statistics. The data requirements of the methods, how to meet them in mining applications, and performance characteristics are discussed. The application of these methods in a hypothetical deposit consisting of three geological units provides a comparison and illustrates the advantages of the different simulation approaches.

Jan 1, 2005

Material scheduling, sequencing planning and execution are the core tactical mine plan for achieving production targets that maximize the objective function of any mine production entity. This objective function is constrained by several exogenous and endogenous constraints including geological, operating, technological, marketing, financial, political, social and local field constraints. Linear and dynamic programming techniques have been used to formulate algorithms to solve the problems associated with scheduling and sequencing operations. These algorithms possess the mathematical rigor for dealing with the fundamental problems but they fail to provide adequate answers to random and dynamic process problems. Materials scheduling and sequencing are carried out within the bounds of random and dynamic fields. The functional relations between the output and dependent variables are random, and thus, current algorithms are limited in their abilities to address the problems arising from these random field processes. In this study a production simulator is developed to capture the random field process associated with materials scheduling and sequencing in an open pit environment. The algorithm incorporates a geometric pit evolution model, using solid geometry of an ellipsoidal frustum to capture material displacement dynamics. Taylor series expansion about the dimensions of the initial frustum is used to provide numerical solutions to the resulting partial differential equations governing the pushback dynamics. A production simulator, derived from the stochastic and dynamic models, is developed, validated and used to simulate the changes in the pit volume resulting from periodic incremental pushbacks and the random field process. The hybrid stochastic-optimization algorithm provides a powerful tool for addressing the random field and dynamic process problems. Combined with a hybrid stochastic-optimization dispatch system, tactical production planning and execution will be efficient and economic for achieving desired.

May 1, 2004

By L. Robles-Stefoni

"Multiple-point simulation (MPS) methods have been developed over the last decade as a means of reproducing complex geological patterns while generating stochastic simulations. Some geological spatial configurations are complex, such as the spatial geometries and patterns of diamondbearing kimberlite pipes and their internal facies controlling diamond quality and distribution.Two MPS methods were tested for modelling the geology of a diamond pipe located at the Ekati mine, NT, Canada. These are the single normal equation simulation algorithm SNESIM, which captures different patterns from a training image (TI), and the filter simulation algorithm FILTERSIM, which classifies the patterns founded on the TI. Both methods were tested in the stochastic simulation of a four-category geology model: crater, diatreme, xenoliths, and host rock. Soft information about the location of host rock was also used. The validation of the simulation results shows a reasonable reproduction of the geometry and data proportions for all geological units considered; the validation of spatial statistics, however, shows that although simulated realizations from both methods reasonably reproduce the fourth-order spatial statistics of the TI, they do not reproduce well the same spatial statistics of the available data (when this differs from the TI). An interesting observation is that SNESIM better imitated the shape of the pipe, while FILTERSIM yielded a better reproduction of the xenolith bodies. IntroductionThe simulation of geological units poses several technical problems that challenge the capabilities of available geostatistical simulation approaches and their ability to deal with spatial complexity of categorical variables. The spatial geometry of diamondbearing pipes and their internal facies controlling diamond distributions are a specific and well-known difficult modelling problem. The geometry of a kimberlite pipe is typically like an inverted cone (Figure 1); the wider part is known as the crater and is located near the surface, and the narrower, deeper part is known as the diatreme. Xenolith bodies can also be found inside the pipe. A very important contribution to the geological modelling of the contours of the pipe is the measure of uncertainty about the location of the contact between the kimberlite pipe and the host rock."

Jan 1, 2016

By W. Abdellah

Underground mine developments, such as haulage drifts and cross cuts, play a vital role in providing access to ore extraction areas for mine production. The stability of mine developments is thus of crucial importance during the life of a mine plan. Many Canadian mines use longhole mining methods or one of its variants. These methods require access to the orebody through mine developments such as haulage drifts and cross cuts on multiple levels. This paper examines the stability of mine development access intersections with respect to the planned mining sequence. A case study, the #1 Shear East orebody at Vale?s Garson Mine in Sudbury, Ontario, is presented. A three-dimensional, elastoplastic, finite difference model (FLAC 3D) was created for a development intersection situated 1.5 km below ground surface. The stability, or performance of the intersection, is evaluated in terms of the strength-to-stress ratio. The ratio threshold is set at 1.4 for temporary openings. Unsatisfactory performance is defined as a strength-to-stress ratio less than this threshold value. The performance of the intersection stability is evaluated at various modelled mining stages and the probabilistic method of analysis is then invoked to study the probability of unsatisfactory performance of the intersection. The results are presented and categorized with respect to probability, instability, and mining stage.

Aug 1, 2013

The information requirements of the Australian Stock Exchange Ltd for listing and reporting seek to ensure that the market is fully and correctly informed in a timely manner. This discussion confines itself to the technical reports from mining companies required for prospectuses, information memorandum, quarterly, annual reports and any other announcements to the Exchange. The Exchange requires that technical reports are produced by suitably qualified and experienced personnel and, in the case of a company listing, that these personnel have no interest in the company to be listed. Further, the Exchange has draft prospectuses reviewed by other independent suitably qualified and experienced personnel.

Jan 1, 1987

By Richard J. Lund

Stock piling-and by that I mean well-organized stock piling on a substantial scale-is almost as old as the hills themselves. It was back in early Biblical times, as recounted in the Book of Genesis, that Joseph was charged by Pharaoh with the responsibility of stock piling food during the seven years of plenty to guard against the seven subsequent years of famine that were revealed by the Pharaoh's dream. And this same policy of storing up food or materials to provide for future anticipated emergencies can be traced repeatedly down through the ages. So our own efforts are anything but new. Our modern concept of stock piling-the purchase and storage of strategic materials to assure supplies needed in time of some future war- stems from our experience in World War I. In 1920, the War Department was charged by Congress with the responsibility of procuring all War Department supplies and mobilizing industry in the event of another war. During the two decades that followed there were many authoritative studies made of our deficient mineral problem, all of which pointed out the urgent necessity of stock piling certain strategic materials as a reserve against future war. One such study, made in 1925 through the combined efforts of the Mining and Metallurgical Society and the AIME, was done at the ex- press request of the War Department. Eight years later another more de-

Jan 1, 1949

By T. F. Witherbee

Discussion of Mr. Baker's paper, read at the Lake Superior Meeting, September, 1904. MR. T. F. WITHERBEE, Durango, Mexico (communication to the Secretary*) : Mr. Baker's paper is very instructive in that it shows how furnace-derangements sometimes originate from apparently slight causes. In 1896 a similar burning through of the lining occurred at the Mayville furnace of the Northwestern Iron Co., Mayville, Wis., in exactly 38 days from the time the furnace was blown in. At that time I attributed it to the fact that the bell was carried several inches to the front side of the furnace, the length of the versed side of the arc described by the lever, thus dumping a little more of the charge on the back side, which made the front side of the furnace-charge more open and consequently increased the circulation of the furnace gases through it. After reading Mr. Baker's description, I believe that possibly a little more ore was charged on the back side of the hopper, due to the fact that it was nearest to the elevator. This unequal charging, however, was unconsciously done, as the fillers were both honest and faithful. The illustration of the burned lining of Furnace No. 1, given in Fig. - of Mr. Baker's paper answers very well for the Mayville furnace. It shows that in both cases the destruction of the lining was largely due to faulty construction, in that there were no cooling-plates in the angle of the bosh and in one or two courses of brick above it, where I believe they are-more in demand than anywhere else in the furnace. The presence of these cooling-plates at the angle of the bosh would have obliged the current of the hot gases to turn the corner and would have prevented them from following the angle of the bosh com¬pletely through the lining and shell.

Mar 1, 1905

By AIME AIME

ON May 5, the Washington, D. C., Section, A.I.M.E., devoted its meeting to the many-sided and perplexing question of mineral stock-piling for peace. Opening the symposium, Harry J. Wolf, of the War Production Board, outlined the problem under six heads: (1) Technical. Mechanical, chemical, or metallurgical importance of specified materials, emergencies that might arise, relative scarcity, and critical value of stock piles during emergencies. (2) Economic. Cost to Government, influence of Government stocks on commercial relationships and markets, effect of availability of items as a con¬structive influence on industry, Administration policies now and during postwar period. (3) Legislative. Need for immediate legislative action, need for legislation on postwar conditions as well as on current requirements, a constructive basic policy to prevent political manipulation. (4) Military. Consideration of re¬quirements and supplies bearing on national safety and needed for manufacture of equipment, and adequate reserves of scarce materials for research or experimentation by military agencies. (5) International. Interests of the United Nations in contradistinction to those of the United States; effects of nonisolation policy on nature, location, and administration of stock piles. (6) Negative stock-piling. Question of United Nations' legislation to prevent stock-piling by Axis nations after the war and who shall purchase stock-pile materials and during what periods.

Jan 1, 1943

By Roman Vaynshteyn

In places where Blast Furnaces are usually located, climatic factors may be unfavorable. Raw materials may be exposed to e.g. rain during transport/storage, bringing moisture into the process with consequences for stability and hot metal cost. This paper describes a technology for drying and pre-heating pellets and coke in the stockhouse. It does not require additional handling or logistical equipment and does not introduce extra transfer steps and degradation. Not only can moisture content be reduced, it can be controlled to a stable level by the operator.

Aug 16, 2017

By R Jacobs, J Yeates

"The Stockman base metals project is situated in State Forest in the alpine area of East Gippsland, Victoria, adjacent to a National Park and within the headwaters of a major Ramsar-listed wetland catchment and the Murray-Darling River system. Site topography is steep, and elevated (650 m – 1200 m above sea level), and subject to circa 1 m annual rainfall, with occasional winter snowfall. The project consists of two volcanogenic massive sulfide (VMS) deposits to be mined by underground methods and treated in a 1.0 Mt/a central concentrator to produce copper and zinc concentrates for export over a ten year operational life. New resource projects are rare in Victoria. Recognising the sensitive setting, planning for the Stockman Project, which is now in the advanced permitting stage, has focused on balancing economic, environmental and social outcomes to ensure social licence to operate is secured and can be maintained. This has involved close attention to triple bottom line (TBL) risks and outcomes. Stockman has successfully gained State and Federal approvals via the Environmental Effects Statement process. The process of obtaining these approvals has required close attention to effective stakeholder involvement, and management of a lengthy and difficult approvals process, which is still to be finally concluded. This paper is a case study of the process of that permitting and the issues encountered to date. Key learnings from the experience have included: successful approvals require close attention to much more than just the project and its technical aspects and physical setting – effective stakeholder involvement and endorsement is critical the differing consultation requirements for local, regional and government stakeholders, to design and plan implementation of a project to meet TBL objectives, and to gain social licence to operate within the Victorian approvals process, the need for an effective lead government agency with policy authority dealing with material policy change requiring post-closure financial sureties estimating realistic permitting time and cost during the project evaluation phase. CITATION: Jacobs, R and Yeates, J, 2016. Stockman base metals project – sustainability, social licence to operate and permitting lessons learnt, in Proceedings Project Evaluation 2016, pp 98–110 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By Charles E. Packard

Many coal producers have been faced recently with the problem of arranging their production facilities to accommodate recent trends in the transportation of their product. Each operator is normally faced with a different problem requiring a system to meet his specific needs. It may be that he would be required to load a seven or eight thousand ton integral train each day which would naturally call for a large storage pile, high loading rate, accomplished in a minimum of time On the other hand, it may be that he is faced with furnishing coal to make up one-half of a unit train that is to be assembled twice a week. Whether the problem is large or small, many considerations must be given to each specific problem to be certain that the proper scheme is applied. The operator actually has several choices as to what type of storage and loading facilities he may consider. The storage pile, for instance, may be open type, conical in shape, kidney-shaped, or long and wedge-shaped. It may also be enclosed by steel or concrete

Jan 8, 1964

By R. Lestari

Newmont Batu Hijau operates with an accelerated mining rate to optimize life of mine (LOM) project economics. This results in a portion of ore mined being stockpiled for reclaim and processing throughout, and at the end of mine life. LOM economics can be further enhanced by preserving stockpiled ore value by mitigating oxidation effects. A detailed stockpile ore oxidation study was conducted to: ?? Develop a practical understanding of how oxidation affects ore value; ?? Determine how oxidation rate can be controlled, and; ?? Determine how oxidation effects can be mitigated to preserve ore value. The result of the study is a stockpile management strategy that significantly reduces oxidation related losses and, implementation of that strategy within practical constraints. Implementation includes installation of Controlled Potential Sulfidisation (CPS) flotation to facilitate oxidised sulfide copper recovery and, recovery of dissolved copper from stockpile drainage solution into saleable product. This paper describes the study results including managing and predicting stockpile oxidation with time, monitoring performance of implemented CPS flotation and recovery of dissolved copper from stockpile drainage. These are essential elements of successful long term mine operation in Batu Hijau.

Jan 1, 2014

By Andrew T. Zador

The growing demand for energy combined with the need to protect and preserve the environment have become prime considerations in the design of efficient coal handling ports and their associated stockpiles. The transportation system is analogous to a connected chain which originates at the mines and terminates at steel mills or power plants, in which the port and the stockpile reserves are a vital link. Railroad transportation costs can be minimized by rapid discharge of the cars which, in turn, requires that an adequate stockpile system be available. Ocean transport costs can be minimized by having an efficient high capacity ship loading system and sufficient quantities of coal on hand -all of which also requires an efficient stockpile system to meet shipping demands. The connector between the two modes of transportation, therefore, is the port stockyard. It is here at the interface that optimization of land utilization and materials handling equipment results in a total transportation chain that can operate as a smooth efficient system. Multiple origins of coal require the simultaneous handling of large quantities of coal of many grades. Railroad transportation logistics often limit and define the incoming arrival patterns and limited rolling stock often require priority treatment for railroad operations. The physical limitations of prime ocean frontage require that coal stockpiles be built close to residential or industrial areas which entail strict environmental controls. Large capacity, enclosed coal stockpiles for ocean shipping have not yet been considered feasible but may be forthcoming in the near future. Several have been analyzed.

Jan 1, 1978

Proposals designed to use stockpiles and buffer stocks to achieve price stabilization and better resource use have a long history. They are super- ficially simple to understand. The benefits seem clear. And yet I am well aware that this is not a simple subject: the more one studies it, the more complex it becomes. Worldwide interest in re- source management, while receiving fresh impetus from the OPEC actions, also has a long and chequered history. Those venturing into such ter- ritories must be forewarned of the traps and pit- falls which abound. Interest in these schemes has waxed and waned over the years with the fluctuating fortunes of the producers or consumers. As I write this paper towards the end of 1977, I am acutely aware of the low ruling prices for zinc, copper, and nickel. These sacrifice prices remind me that it is difficult, for example, for a surveyor, to be calm and rational if he is up to his neck in a swamp full of crocodiles. He might be forgiven for forgetting that the aim was to drain the swamp! I am also aware that when swamps are drained, painful and dangerous stumps sometimes stick out. Hence, in looking at the subject of stockpiles and resource management we must not set our sights too high, perhaps not initially hope for perfec- tion, if we want to secure worthwhile changes. My approach is to acknowledge a bias for the market system. We have, however, had experience (remember the 1930s) of some weaknesses in the untrammelled operation of free markets. Thus our international economic relationships over the past 20 or 30 years have been based on a desire to retain as much as possible of a liberal world trading system backed by such organizations as the GATT, IMF, and the U.N. to ensure the necessary cooperation. Some nations have seen this system work only partially in their best in- terests. GATT, for example, has been reasonably effective in liberalizing trade in many manufac- tured goods but far less so in regard to agricultural or semi-processed goods.

Jan 1, 1978

By John D. Morgan

THE tense international situation prevailing in the postwar period, and the outbreak of actual hostilities in Korea, directs attention to the status of United States reserves of strategic and critical materials for war. Geologists and mining and metallurgical engineers are particularly interested in this problem, since, with a few important exceptions, almost all of the materials on the official list of strategic and critical materials for stockpiling (see top of page) are metals and minerals.

Jan 3, 1951

By Michael J. Miller

In the design of a modem mill, a stockpile storage system for raw and/or semi-processed ore has become almost indispensable. This paper discusses the benefits of such stockpile storage as well as the various types of belt conveyor stockpiling units available. Particular attention is given to large radial stackers since they offer the greatest flexibility. Stacker control systems and accessory equipment are briefly discussed. Various alternative reclaiming arrangements for stockpiles are reviewed and a discussion of the advantages and drawbacks of each arrangement is included.

Jan 1, 1979

By M. J. Miller

In modern mill design, a stockpile storage system for raw and/or semiprocessed ore has become almost indispensable. This paper discusses the benefits of such stockpile storage as well as the available types of belt conveyor stockpiling units. Alternative reclaiming arrangements for stockpiles are reviewed, and the advantages and disadvantages of each arrangement are discussed.

Jan 1, 1982

By L. O. Millard

Stockpiles in the minerals industries serve a wide variety of purposes. Usually they are for surge between stages of processing, for a dependable plant feed in anticipation of delays, or to provide for single or double shift mining in conjunction with round-the-clock milling. Often surge piles are necessary to insure a uniform feed to continuous process equipment where the material is received as an intermittent or variable flow. Extensive use is made of stockpiling for the primary purpose of blending. The significant fact about all stockpiling of bulk materials is that storing and reclaiming are two separate and distinct operations and they may present widely different problems in the selection of methods and tools.

Jan 10, 1959