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By W. DR. Fritz

Technical progress depends on strategic objectives and a concept showing how to benefit from the effects of novel techniques in an innovation process and how to implement them creatively in harmony with manpower capabilities. With the invention of prime movers, it was initially power engineering which dominated the development of industrial history before it was replaced by production techniques resulting from the more widespread use of machines. With the advances in the field of data processing and with the introduction of novel communication techniques, it is information technology- which today is having an ever increasing impact on technological progress. The main objectives of information technology in this context are a positive influence on the ?time? factor as well as the provision of tools to handle the complexity governing many operational processes through a concentration of information for the decision-making process. The German hardcoal industry became aware of the chances inherent in these new technological possibilities for the optimization of operational sequences and of decision-making and planning processes as a potential for success at an early stage and it has worked out a purposeful concept for their implementation.

Jan 1, 1992

By P Myers, T Elkington, S Wonday

Sierra Rutile LimitedÆs (SRL) heavy mineral sand mining operation in Sierra Leone, West Africa, is embarking on a new phase of its life. After confronting many challenges during the 1990s and 2000s, SRL is embarking on a strategy of growth to recover maximum value from the mine over the rest of its life. Sophisticated linear programming techniques have been used to develop an optimum strategy for extracting SRLÆs many known deposits of economic grade, while considering options for expansion and for a variety of mining and processing methods and combinations. CITATION:Myers, P, Elkington, T and Wonday, S, 2012. Strategic optimisation at Sierra Rutile - A case study in maximising project value, in Proceedings Project Evaluation 2012 , pp 59-66 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

By Christian Heili

In 1991 the Government of the Republic of Zambia passed legislation providing for the privatisation of Zambia Consolidated Copper Mines Limited (ZCCM). The newly formed Mining Companies, established after nearly a decade of difficult and protracted negotiations on such matters as, cash at close; retained percentage interest by ZCCM; equity investment; future investment commitment and tax concessions, were faced with great internal challenges and a harsh external environment. There was a convergence of a number of negative forces that had and will continue to have an impact on the mining environment in Zambia. The most crucial of these being, the competitive pressures of the global economy, fluctuating copper price and the prevailing HIV/AIDS pandemic. In the short period after privatisation, the Industry has seen the collapse of Binani Industries (Luanshya Mine), the withdrawal of Anglo America Corporation from Konkola Copper Mines Plc and the disposal of Chambishi Cobalt and Acid Plants by Anglovaal Mining Ltd. The objective of this paper is to provide a theoretical and practically researched foundation, which may be used to assist Zambian Mining Companies in making informed decisions on the issue of Strategic Outsourcing and the degree to which this may support the successful and sustainable growth of the Zambian Copper Mining Industry. If judiciously implemented, Strategic Outsourcing has the potential to generate a practical business valuation and process to assist Mine Management in the achievement of their business goals and consequently the return on investment to their Shareholders.

Jan 1, 2005

By Hector M. Valenzuela, Juan H. Rojas

This paper presents a strategic plan for automation, plant integration and process management being implemented at the Chuquicamata mining and metallurgical complex of Codelco-Chile. This five-year plan considers different levels of process control and plant integration, which include instrumentation and direct control, process models and supervisory control, plant information integration, and real time process and plant wide management. The conceptual solution developed defines an architecture for the overall system and the projects to be implemented by each production unit, as part of the proposed solution for the division wide process control, plant integration and real time process management. An estimate of the cost benefit relation of the plan is also given.

Jan 1, 1998

By Scott G. Britton

Planning is a management tool used to solve problems and provide data and decision alternatives for company growth, profitability, and direction. Strategic planning is defined as the efforts needed to accurately measure the risks of obtaining a result from future actions given a finite number of outcomes. The techniques of strategic planning are being applied more and more to underground mine design as a result of the fierce market conditions underwhich the industry is facing today, and the conditions they will likely face in the future. The objectives of strategic planning are centered on the ability of the operator or company to manuever its limited resources to the best position available under the given future scenarios. This paper briefly examines the most popular techniques for accomplishing these objectives, how these techniques fit into the current mine management decision-making, and what results to expect from these techniques in planning efficient underground mines.

Jan 1, 1985

By J. Engelbrecht

South Africa?s re-entry into the fast moving and competitive global economy calls for some careful strategic planning and a good deal of co-operation between suppliers and end-users. The issues that need addressing are generally well known and include: ?South Africa was ranked 45th out of 46 i.r.o. productivity ?SMMEs contribute 1% to exports compared to 40-60% for the ?tigers? ?High unemployment ?Limited skills of the majority of workers ?Slow growth rate of the economy ?The vast majority of suppliers are not world-class ?The vast majority of suppliers are not export or marketing orientated. In order to survive, all parties, i.e. government, labour and business, will have to play their part.

Jan 1, 1999

In the future, Illawarra Coal, the primary metallurgical coal producer in the southern coal fields of New South Wales, will face many unique challenges not found in other coal or minerals production areas. To manage these challenges and determine the best strategy for the business, Illawarra Coal has adopted a systematic strategic planning process, which starts from the broadest possible options analysis and culminates in a ægo-forwardÆ operating case that individual mine sites use as the basis for short-term planning. This paper will discuss two major topics. Firstly an overview of the Illawarra Coal and BHP Billiton strategic planning processes. This will demonstrate the range of variables and inputs that are required for the planning process, and the system which is followed to evaluate different alternatives for the extraction of the resource. Secondly, having discussed the primary external and internal factors that must be accounted for in the planning process, and the main issues affecting the viability and likelihood of each alternative, the paper will discuss the particular challenges that Illawarra Coal will face in the coming decades. These challenges include: market and price uncertainty; managing impact on surface features, infrastructure and environment; community interaction; transport and logistics constraints; unknown mining environments; lack of geological knowledge; limited surface access for new mining domains; changing attitudes to longwall mining in the Illawarra; ageing workforce; and cost and overhead management. The paper intends to discuss how these issues impact the business currently and how they are incorporated into Life of Asset plans and overall corporate strategy for Illawarra Coal.

Jan 1, 2007

By A. J. Basu

Computer assisted mine planning and design applications are routinely used by many Australian mining companies, However, the design process requires human expertise to recognize and evaluate the potential pitfalls. This paper introduces the application of a commercial optimization software (WHITTLE 4D) for strategic planning of an open pit mine in Western Australia. The authors present their experience in intelligent application of the optimization program while incorporating many technical and nontechnical obstacles. This paper provides some guidelines on how to apply the optimization software without loosing sight of practicalities. Moreover, this paper also shows how to build project evaluation guidelines for non-experts.

Jan 1, 1997

By J. T. Crawford

A comprehensive strategic planning model has been developed for the phosphate strip mining and chemical operations at White Springs, Florida. The computerized model covers ore body modeling, production simulation and financial analysis. Several innovative features in the model include using NPV techniques in ore body block economics, adapting the floating cone method to a floating template for generating dragline mining units automatically, using interactive graphics for designing mining units, and a dragline move economics algorithm for automatic scheduling of mining unit assignments and moves. Simulation of chemical plant production uses linear programming and concentrate inventory levels control mine operating schedules.

Jan 1, 1997

Kambalda Nickel Mines (KNM) currently have eight operating underground mines, three on care and maintenance and other orebodies at various stages of development. Each operation differs greatly in scale, ore grade, milling characteristics and cost structure. The optimum number of mines operating at any one time and their level of production, within the constraints of mill blending requirements and overall mill capacity, is the key to maximising profit in a climate of fluctuating nickel price. Cost models are developed for each mining operation which relate ore tonnes mined to total cost per pound of nickel produced from that mine. Aggregating the mine cost models provides a composite cost model for the entire operation. The cost models provide the operating levels necessary for each of the mines and hence Kambalda as a whole, to operate at the lowest cost per pound of nickel produced. However, lowest operating cost does not necessarily lead to maximum profit. The level of nickel price above operating cost can dictate maximum profit positions which are contrary to the lowest cost position. In addition, the decision to temporarily shutdown mines or reopen mines in response to nickel price movements comes at a cost. In considering the optimum operating position, the price of production capacity flexibility needs to be taken into account. This paper describes the process used to assess all these factors in arriving at the optimum operating position for Kambalda Nickel Mines for varying nickel prices. The same methodology can be used by corporate management in managing multiple mine sites as well as mine management managing multiple orebodies or stoping blocks for maximum profit.

Jan 1, 1995

By Jake Hutchison, Wade Hutchison

The opposition to the project has risen as a result of some political pressures and from public perceptions about the project’s necessity and its impact on the neighborhood. As a result of this controversy, the Underground Conservation Hall was quickly termed “Bredesen’s Bunker” by the Media. Close exposures for blasting, required by the Conservation Hall construction project, have been regulated by specifications that regulate seismic monitoring, pre-blast and post-blast inspections. Planned blasting for the project included blasting to a depth of 30 feet (9.14 meters) within 35 feet (10.67 meters) of the front of the newly renovated Tennessee Executive Residence. Excavation for the project found more competent rock at higher elevations than identified in test drilling which required blasting within 2 feet (0.61 meters) of the side of the Residence.

Jan 1, 2009

By Tetsuo Yamazaki

Metal market prices rose drastically in 2006, and most broke historical records as shown in Figs. 1-4. This increase has been basically driven by economic growth in Asian countries, especially China. The growth trend is expected to continue for several years. Then, India will follow the same growth trend. Their metal demands keep the price levels high for 20 years or more. One more additional important factor on the metal market prices is hedge funds come into the market. Japan imports all metals for domestic use from overseas. The amounts imported were 1.27 million tons in copper, 0.32 million tons in lead, 0.59 million tons in zinc, 0.20 million tons in nickel, and 1.18 million tons in manganese, respectively in 2006 (Source: http://www.jogmec.go.jp/j_resourse/index.html#03). Though mainly we import the concentrates and our domestic customer smelters take the part of metallurgical leaching, the payment necessary for purchasing the concentrates is estimated about US$ 10 billions in 2006. The payments in 2005 and in 2003 were about a half and a quarter of the 2006, respectively. Japan must have effective counter measures to reduce the future payments.

Sep 24, 2006

By Bruce W. Cavender

During the last few years, the minerals industry has been confronted by increasingly stringent environmental regulations that are significantly altering the economics of the industry. Heightened media attention, threats of litigation and decreasing support by the general public have exacerbated the industry's difficulties. Regardless of their merit, environmental issues present a serious threat to the continued viability of mining companies. Firms have reacted to these regulations by escalating their environmental activities to meet the new requirements. They have simultaneously adjusted their corporate schedules to reflect the substantially longer time periods required to obtain construction and operating permits and ensure compliance with legal requirements before mine abandonment. Companies have also been forced to adapt to a considerably greater amount of uncertainty and expense associated with the development of mineral projects. This has resulted in a significant erosion of the profitability of some mining companies. Most of the changes in corporate environmental activities have been reactive. Pending regulations present formidable but uncertain technical requirements for compliance, and future regulatory developments are difficult to predict. This problem is aggravated by depressed market prices for many mineral commodities. Past expansions of environmental standards have led to the closure of mines and processing facilities due to economic hardship, as occurred in the smelting segment of the US copper industry in the 1980s (Cro¬zier, 1992).

Jan 1, 1994

By Finlayson E, Hilyard D

1:100 000 geological mapping of Bougainville Island has resulted in refinement of stratigraphic subdivisions and relationships. We subdivide the sequence into basement Atamo Volcanics (Late Eocene-Early Oligocene), consisting of spilitised pillow basalts, which are overlain unconformably by Late Oligocene-Early Miocene Keriaka Limestone. The latter is unconformably overlain by fine-medium grained volcaniclastics and minor lavas of the Middle-Late Miocene Toniva Formation which coarsens upward and passes gradationally and conformably into the coarsely volcanolithic latest Miocene-Pliocene Arawa Conglomerate. The Kupei Complex, host to the Panguna.porphyry Cu-Au deposit, consists of medium - K20 microdiorites, granodiorites, and andesites intruding Arawa Conglomerate and Toniva Formation. K/Ar isotopic dates on the Kupei Complex range from 4.8-1.3 Ma, and hence overlap the age of the Arawa Conglomerate. We believe that the Arawa Conglomerate consists of mass flow deposits on a volcani- clastic apron surrounding a volcanic edifice above the intruding Kupei Complex.

Jan 1, 1990

The Australian Centre for Minesite Rehabilitation Research (ACMRR) was established through a mining industry initiative to meet the need of industry, governments and the community for sustainable systems for land affected by exploration, mining and mineral processing activities. The Centre, which is a consortium of the major groups associated with mining rehabilitation research in Australia, has a focus on both strategic research and technology transfer and combines a wide range of multidisciplinary skills covering engineering and the physical and biological sciences. The paper briefly describes the goals, structure, expertise and research and technology transfer activities of the Centre. The major research program areas of waste rock dump and final void stability, acid mine drainage, tailings disposal, and remediation of ecosystem reconstruction are described in the context of national priorities.

Jan 1, 1995

The Australian Centre for Minesite Rehabilitation Research (ACMRR) was established through a mining industry initiative to meet the need of industry, governments and the community for sustainable systems for land affected by exploration, mining and mineral processing activities. The Centre, which is a consortium of the major groups associated with mining rehabilitation research in Australia, has a focus on both strategic research and technology transfer and combines a wide range of multidisciplinary skills covering engineering and the physical and biological sciences. The paper briefly describes the goals, structure, expertise and research and technology transfer activities of the Centre. The major research program areas of waste rock dump and final void stability, acid mine drainage, tailings disposal, and remediation of ecosystem reconstruction are described in the context of national Priorities.

Jan 1, 1995

By K. Ramji

"The development curve in the extractive sector has become longer, steeper, and riskier due to increased social, legal, and political risks from various stakeholders. Indigenous peoples are a unique stakeholder because their growing legal rights to lands and resources can often determine a project’s outcome. A project will only be successful if it is able to obtain the legal permits, withstand any judicial reviews, and gain and maintain the social license to operate. Stakeholder identification, management, and engagement are key risk-mitigation tools required to successfully convert risks into opportunities.RÉSUMÉ La courbe de développement du secteur de l’extraction s’est allongée, elle est devenue plus abrupte et plus hasardeuse en raison de l’accroissement des risques sociaux, légaux et politiques venant des divers intervenants. Les peuples autochtones sont des intervenants uniques puisque leurs droits légaux croissants sur les terres et les ressources déterminent souvent ce qu’il adviendra d’un projet. Un projet ne pourra réussir que s’il est capable d’obtenir les permis légaux, passer à travers les analyses judiciaires, puis obtenir et maintenir le permis social d’exploitation. L’identification des intervenants, la direction et l’engagement constituent les outils clés de l’atténuation des risques nécessaires pour bien convertir les risques en possibilités."

Jan 1, 2016

By T. Junne, L. Eltrop, S. Moreno-Leiva, J. Haas, W. Kracht

The energy systems of the future will be highly renewable. The flexibility that is consequently required can be provided with many options, the main ones being energy storage, transmission reinforcement, and demand side management. The role of the latter is explored for the copper industry, using the scheduling of maintenance services as an example of Solar-Paced Design - the coupling of energy demand with solar resource availability. We used a linear energy optimization model to define the minimum-cost configuration for a fully renewable energy system of a copper concentration plant under different scenarios for the scheduling of maintenance services. For the case we studied, (total) costs were 4% lower when the maintenance was scheduled in winter. We expect that exploring the potential of such Solar-Paced Design in the copper industry will allow new potentials for a more cost-effective full renewable energy supply of this critical industry. INTRODUCTION The mitigation of climate change requires a worldwide transformation of the energy system by the significant expansion of renewable energies and the electrification of various sectors and processes (Teske et al., 2015)(International Energy Agency IEA, 2018). Moreover, considering the decreasing costs of renewable energy technologies and the intensive use required to deliver the goals in the Paris Agreement, we can expect to have highly renewable energy systems in the near future. However, to rebuild and expand our energy systems, we need certain materials, including copper. Also, energy systems based on renewables are more copper-intensive than conventional ones (Kleijn, van der Voet, Kramer, van Oers, & van der Giesen, 2011). The mineral industry, in turn, needs clean energy to achieve a better environmental performance (e.g. solar energy for copper production (Moreno-Leiva et al., 2017)) and to avoid negative secondary effects induced by the strong expansion of clean technologies. But there is something else the minerals industry can offer in this bi-directional relation with energy systems.

Jan 1, 2019

By K T. Mandisodza, T J. Cartledge

The principal objective of Geotechnical Engineers supporting operating mines is to provide safe working conditions and ensure that pit designs are geotechnically optimised to site conditions and pre-defined stability requirements. Pit slope designs are delivered in advance of pit excavations. Making changes to these designs is usually slow to enact and involves a layered sign-off before implementation, leading to unwanted delays in their adoption and subsequently increased production pressures. When unexpected ground conditions are encountered during the mining process, or short-term mining schedule requirements demand it, changes to these designs may not be easily feasible in certain situations. It is when these scenarios arise that Geotechnical Engineers need to be proactive and consider unconventional options to deliver safe operating conditions while satisfying short-term requirements to the mine schedule. Essentially, the geotechnical short-term strategic designs double-pronged approach supports the mine schedule while providing safe conditions and minimising geotechnical risks for people and equipment. Common short-term strategic geotechnical designs include; slope buttressing, over-steepening cut slopes to increase reserve recovery through unplanned or emergency cutbacks, and accepting risk threat and operating under unstable slopes. When implementing strategic design options, the Geotechnical Engineer must consider the broader implications for such designs. They must think of the plan’s long-term effects on the mine schedule and pit wall stability. Initiating aggressive designs to recover additional reserves to satisfy a short-term scheduling demand could result in-pit wall instability or suboptimal pit layout. Before and during the implementation phase, the Geotechnical Engineer must communicate and engage with relevant stakeholders to ensure that the plan is executed accordingly and geotechnical risks are effectively managed. Proactiveness to ground response and implementation of risk management strategies will improve safety performance and optimise mining schedules.

Jun 22, 2022

By M Jones, G Corder, A C. Keith

"Sustainable development has become an issue of ever increasing importance to the mining industry. The Ernst & Young (EY) mining industry risk radar regularly shows several sustainability elements in the top ten risks, with social license the number three risk in the 2014/15 survey. This is supported by the Fraser Institute survey results of 2013 showing that 36 per cent of responding companies indicated public opposition had affected their permitting and approvals process.Addressing these issues in a strategic way across a mining business that is then translatable to actions at operational level has remained an elusive goal in the industry. In addition the environment and community issues are commonly viewed as somewhat separate from financial and production issues and as a compliance cost rather than a value add. In their Harvard Business Review paper of 2011, ‘Creating Shared Value’, Porter and Kramer outline changes in thinking required for companies to improve their business sustainably through considering the societal issues impacted by their operations and products. Along the lines of ‘doing more with less’ companies’ value chains can be redefined to reduce energy, transport, water or other resource usage leaving additional resource for societal usage and/or reducing environmental impacts. This paper explores the linking of the holistic Five Capitals-based approach with the creating shared value (CSV) concept to help businesses unleash the benefits of innovation. Previous papers have demonstrated the potential for Five Capitals approach to create strategic value through sustainable development. Building on previous work, this paper provides an overview of the current status of holistic approaches to mine management and presents the application of the CSV concept on an African mine currently undertaking capitals-based strategic planning. The paper also demonstrates the value that has been created through utilising this approach and proposes improvements for changing the way the industry tackles and delivers benefits related to sustainability issues.CITATION:Keith, A C, Corder, G and Jones, M, 2016. Strategic sustainable development – creating shared value in the mining industry, in Proceedings International Mine Management Conference, pp 249-264 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 22, 2016