Search Documents

By R Barritt, P Scott, K Albano

Successful closure of tailings storage facilities (TSFs) is an environmental issue faced globally by metalliferous mines. During the initial feasibility and design phase of the mine life importance is placed on the physical stability of above ground TSFs, largely driven by legislative requirements, whilst closure planning is often a secondary consideration. However, as the landform is further developed and constructed attention must be paid to regularly revisit the original closure plan and update it to achieve the best (sustainable) possible outcome for both the environment and stakeholders. A mine in northern Queensland is in the process of developing a closure strategy at their TSF. Appropriate closure measures for the TSF are required to mitigate the impact of any seepage emanating from the TSF on the groundwater and surface water receptors. O’Kane Consultants Pty Ltd (OKC) have provided the mine assistance with the development of a TSF cover system design in order to appropriately manage tailings during operations and to prepare for the facilities’ closure. OKC has collected data since 2007 from cover system field trials located on the TSF. To enhance engineering judgement in the design of future cover systems, calibration of soil-plant-atmosphere numerical models to field data (referred as ‘field response modelling’) were completed. Calibrated model inputs can be used to provide insight into long-term cover system performance as well as a tool for design of the final landform.Following a site investigation, materials characterisation and numerical modelling program various cover system alternatives were developed. Two of the preferred cover system alternatives referred to as Test Plot #1 (TP#1) and Test Plot #2 (TP#2) (Figure 1), were constructed at the site and instrumented. Monitoring instrumentation comprised several nests of in situ volumetric water content and thermal conductivity sensors to measure changes in water content, temperature and matric suction within the cover system materials and underlying tailings waste. Run-off collection buckets and a fully-automated meteorological station were also installed. CITATION:Barritt, R, Albano, K and Scott, P, 2016. Findings and conclusions following ‘long-term’ cover system monitoring – refinement of the conceptual design for tailings storage facility closure, in Proceedings Life-of-Mine 2016 Conference , pp 85–88 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 28, 2016

By C J. Unger, T Baumgartl, C J. Bond, P Sabourenkov, V C. Glenn

Social licence to mine is influenced by society’s perception of the mining sector’s ability to effectively rehabilitate mined land and for governments to appropriately regulate that process for the broader community benefit. In Queensland, Australia, many mine rehabilitation personnel working for active coalmines, as either staff, consultants or contractors, belong to the Central Queensland Mine Rehabilitation Group (CQMRG). The CQMRG was established 23 years ago with the aim of sharing informal knowledge related to practical aspects of rehabilitation in order to leave as positive a legacy as possible from mined land. This voluntary group of professionals also includes members from regulatory agencies and civil society. Within the dynamic regional mining environment, mine rehabilitation professionals benefit from sharing their informal knowledge.CQMRG is currently a group in transition. Mining boom and downturn cycles have exacerbated the loss of accumulated knowledge in the core CQMRG membership due to rapid changes in personnel at mines in the region. Additionally, some of the most experienced CQMRG-affiliated rehabilitation practitioners are approaching the end of their careers and want their valuable and less formal knowledge retained. This paper discusses the development of a research project that emerged in response to the anticipated loss of several decades’ worth of valuable knowledge as rehabilitation practitioners in CQMRG left the region or the workforce.CITATION:Unger, C J, Bond, C J, Baumgartl, T, Glenn, V C and Sabourenkov, P, 2016. ‘MRC-wiki’ – a mine rehabilitation and closure knowledge management tool for Central Queensland coalmine practitioners, in Proceedings Life-of-Mine 2016 Conference , pp 39–42 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 28, 2016

By T Baumgartl, B Noller, B Forsyth, J Park, M Edraki, P Pham

Understanding and quantifying residual risk is the key to the successful closure and rehabilitation of mines. An important aspect of residual risk is predicting the long-term chemistry of mine water and the long-term geochemical stability of mining wastes. This requires updating the characterisation data for mine wastes and monitoring mine drainage throughout the life-of-mine. The intrinsic properties of waste materials (ie the geology, mineralogy and the weathering processes, which in turn depend on the local climate and water balance in a waste storage facility) are the fundamental controlling factors of residual risk. In this paper, case studies of coal and metalliferous mines are used to discuss the definition of residual risk for a range of waste storage facilities and to highlight the benefits and limitations of current geochemical methods in predicting and quantifying residual risk. Consistent with the classification of mine drainage by the Global Acid Rock Drainage Guide, three case studies of acid, saline and neutral drainage are presented.CITATION:Edraki, M, Pham, P, Park, J, Baumgartl, T, Noller, B and Forsyth, B, 2016. Defining residual risk for successful mine closure – a geochemical perspective, in Proceedings Life-of-Mine 2016 Conference , pp 9–11 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 28, 2016

By M Cooksey, Z Zhu, N Langrené, W Chen, T Tarnopolskaya

"Dynamic decision-making can significantly increase the value of mining projects and deliver better sustainability outcomes under conditions of uncertainty. Despite its benefits, dynamic decision-making is rarely used by the mining industry, possibly because of the complexity of the algorithms used to make sequential decisions under uncertainty and difficulties in visualising the optimal strategies. To achieve better outcomes in practice, decision-makers in industry would benefit from a tool that would help them to understand and implement the results of the analysis.CSIRO is developing innovative dynamic decision support tools that include an intuitive graphical display of the boundaries between the regions of different optimal decisions, which would significantly assist optimal sequential decision-making under uncertainty. The dynamic decision support tool is based on novel stochastic optimal control methodologies that can be used to optimise decisions in situations with multiple uncertain variables and decisions (Tarnopolskaya, Chen and Bao, 2015; Chen et al, 2015; Langrené et al, 2015). The types of market uncertainties that can be considered include commodity prices, interest rates and exchange rate, while the key orebody uncertainties include the reserves, boundaries between ore types and even geometallurgical parameters.The dynamic decision support tools have a number of benefits and can be used to:construct optimal operational strategies and to optimally manage resources projectsgain insight into optimal strategies under different market conditions and project settings compare expected project values under different project settings and to select the setting that provides best sustainability outcomes.This extended abstract demonstrates the use and benefits of the dynamic decision support tools using a synthetic case study of a gold mine.CITATION:Chen, W, Langrené, N, Tarnopolskaya, T, Zhu, Z and Cooksey, M, 2016. Dynamic decisions under uncertainty – a case study on a gold mine, in Proceedings Life-of-Mine 2016 Conference, pp 20–23 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 28, 2016

By K Hobbs

Mining is experiencing a difficult period of low profitability and declining productivity. To achieve sustainability, mining companies are challenged with improving output, quality and safety while decreasing costs. At the same time, organisations are having to manage a workforce in which individuals no longer accept a traditional style of management, employees prefer more flexible employment, and diversity within teams is becoming the expected norm.Increasing organisational diversity has been shown to have a positive impact on performance and therefore sustainability. Gender diversity and equality between working men and women is the area most studied in this regard. Executives are becoming more aware of the correlation between gender diversity and performance with some larger organisations having dedicated resources to increase the number and status of women in their organisations. Despite this, limited improvement in gender equality is apparent globally over the last decade with some industries, including mining, going backwards. So why is this the case and what other strategies are available?In 2015, the United Nations Women National Committee Australia (UN Women NCA) in conjunction with Autopia released a white paper discussing the lack of visible change in gender equality despite the widespread implementation of merit-based personnel management strategies. Using research from around the world and thoughts from influential government, education and business leaders, the paper ‘Rethinking Merit’ debunks the myth of the meritocracy. It provides a number of recommendations for organisations committed to improving their performance and sustainability through diversity, including a variety of real-life company examples, instead of relying solely on merit-based decision-making.This paper takes the recommendations of ‘Rethinking Merit’ and applies them to the mining industry. It shows the relevance that rethinking merit has for the industry and why applying the recommendations can result in an increase in diversity, therefore enabling greater performance and sustainability of mining companies. This paper provides case studies from Aurizon, Iluka Resources and BHP Billiton and, as a guide for managers, a generic diversity strategy designed to be implemented alongside traditional merit-based personnel management techniques.CITATION:Hobbs, K, 2016. Rethinking merit for a sustainable mining industry, in Proceedings International Mine Management Conference, pp 139-154 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By T G. Neville, G Terrey, J Burns

This paper explores recent industry training programs and lessons for supervisors. The Belbin Team Role model was used to increase participants’ awareness of behaviour and its application. The application of the Belbin model to underground, open cut mine and quarry supervisors is discussed.The key to team success may rest with the expertise and experience of its members, but increasingly effectiveness depends on how team members understand, acknowledge and support each other’s behavioural strengths. Discovering strengths is a challenge, both for their measurement and for the encouragement of team members to use the knowledge of themselves and others in the team. Using behavioural models provides a constructive approach and a language for supervisors as they build personal motivation and engagement.Prima facie, the mineral industry’s work may be too vigorous for teams and their managers could be more prone to use ‘solo’ or traditional management styles. Managers and supervisors must know when work allocated to a team is appropriate or where individual effort should be applauded and rewarded. For practical people with well-developed technical skills, improving the soft skills necessary for a supervisor requires some reflection and effort. The Belbin behavioural model can be an effective tool for recognising characteristics that can assist teams to be more productive.Experiencing the Belbin Team Role model as part of an industry qualification is important for supervisors studying to refine their team leadership skills. Data are available for participants to assess the nature of their teams and to confront the appropriateness of the behavioural mix for the work of the team and its individual members.So what are the next steps? All team development must have a place in the strategic thinking and plans of the enterprise. This needs a visible presence of senior managers and supervisors in managing a team culture with practical links to workplace priorities and professional development with continuous improvement.CITATION:Burns, J, Terrey, G and Neville, T G, 2016. Supervisors and teams at work, in Proceedings International Mine Management Conference, pp 125-138 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By J P. Sykes, A Trench

"The common-held view of the future of copper mining is one of declining quality of mineral resources and increasingly limited long-term development options. This decline, in turn, is viewed as inevitably leading to increasing economic, socio-political and environmental costs. As a result, new technologies and innovations will be required to mitigate cost escalation. The future is therefore typically summarised as a battle of a ‘below-ground’ declining quality asset base pushing costs upward versus ‘above-ground’ technology and innovation driving costs downward. The role that high quality new mineral discoveries could play in mitigating industry cost pressures is typically understated, if considered at all. New high quality discoveries can be mined at lower cost than existing assets and potentially if discovered in the right locations within a more amenable contemporary environmental and socio-political setting. Such deposits, once discovered, would improve the overall quality of the industry asset base, as well as benefitting their owners substantially through higher margins. However, to target new high quality deposits explorers need some understanding of the nature of high quality copper mines in the long-term future. Conventional scientific and economic techniques for analysing the future of copper supply, generally by studying the project pipeline, ignore as yet undiscovered resources and also struggle to fully incorporate the multiple internal and external factors that could impact upon copper mining practices in the future.Scenario analysis is specifically designed to consider multiple factors interacting in the future, and is thus more creative than simply looking at the visible project pipeline. The use of scenarios is therefore potentially capable of providing insight into aspects of the future of copper mining about which little is currently known or that remains considerably uncertain. In this study, the Oxford University Scenarios methodology was employed to analyse different plausible futures for copper mining and the consequent implications for exploration targeting strategies. The scenario analysis highlights two key dimensions or axes that serve to map out potential industry futures: firstly the technical and economic optimisation of the existing industry; and secondly the generation of new prospects or ‘search space’ for the copper industry. These two axes in turn frame four different scenarios for the future of the copper mining industry. These copper mining scenarios are then compared to the 20 largest existing copper mines and projects, and their owners, to determine if any represent an appropriately robust exploration targeting proxy: none do. The paper therefore concludes that efforts by industry are required to generate mine concepts that would be viable across all scenarios, and thus act also as exploration targeting proxies. In the interim, companies will have to seek to build portfolios that create an overall robust asset base, out of individually less robust assets. Failure to do this implies that consequential, irreversible strategic decisions lie ahead for the copper mining industry, which may be a threat to both incumbents and the very industry itself. This situation makes strategic exploration targeting in the copper industry very difficult.CITATION:Sykes, J P and Trench, A, 2016. Using scenarios to investigate the long-term future of copper mining and guide exploration targeting strategies, in Proceedings International Mine Management Conference, pp 265-290 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 22, 2016

By S Jeffrey, S Mundell, F Arboleda

In the current cycle of low commodity prices and rising costs, mine managers continue to focus on optimising mine performance and productivity. A critical component of strengthening performance and productivity is ensuring material is routed correctly and efficiently through the core mine production activities of drilling, blasting and grade control.By the time a blast is planned, an enormous amount of intellectual property has been invested in the exploration, resource development, feasibility studies and mine planning activities. The value of that knowledge is either realised or diminished during mine production. Efficient execution of the process is critical and is reflected by the quality and timeliness of the information produced.Multiple teams are involved in the mining extraction process. These teams are all under time pressure to keep the mine equipment operating. One of the root causes of this pressure is the dependency between the teams. They do not operate in isolation, but are a link in a chain depending on the outcomes of each activity. It is essential communication is efficient so tasks can be completed according to the production schedule. Unfortunately, communication fails when unintegrated systems are used because of:- different teams seeing different data, hence there is not an overall, up-to-date view of progress and priorities- lack of cross-functional visibility of data leading to failure to identify errors in time to address or correct issues- teams tending to be siloed and focusing on their part of the process rather than the overall objective.With different systems used for the parts of a common goal, supervisors and managers lack visibility of the process. This makes it difficult to identify process improvement opportunities.Streamlined communications help consolidate all data and activities resulting in improved cooperation between mine production teams. This outcome increases the confidence and efficiency of material routing decisions. It also reduces potential impact to mine performance from errors in early stage tasks like drilling and grade control. Having everyone collaborating off the same trusted data, helps teams identify with common goals and find business improvement opportunities as they appear.CITATION:Arboleda, F, Mundell, S and Jeffrey, S, 2016. Driving mine performance through communication, in Proceedings International Mine Management Conference, pp 117-124 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By B McCarthy

Mining has been typified of late as a boom and bust, cyclical industry operating against a steady decline in the size and quality of mineral deposits. Decreasing deposit grades and increasing costs of traditional mining techniques, all in the face of another commodity downturn, are forcing mining companies more than ever before to seek out new and innovative ways to operate. New technologies are emerging to model, control and track resources through the mining value chain, to move material about mines more efficiently, and to identify and separate ore from gangue early in the extraction process.Discovering such technologies however is only the first challenge for mining companies. Actually implementing technological change successfully has proved to be an even bigger challenge. Like for many industries, fulfilling the promised benefits for the expense and timing envisioned, has not been easy when innovative technologies are introduced.Citing the author’s insights and experiences in a number of emerging technologies, this paper explores barriers to implementing technological change in the mining context. Key elements of a change management framework, first developed for implementing mine management systems, are described to give mining executives insight into how they and their organisations can succeed through technology-driven change.CITATION:McCarthy, B, 2016. Successfully implementing technology-driven change in the mining environment, in Proceedings International Mine Management Conference, pp 89-104 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By M Boon, M Franklin

This paper outlines the journey of cultural maturation and management system development at the Mt Rawdon (MRO) gold mine from its acquisition by Evolution Mining Limited (Evolution) in late 2011 to 2016.Evolution embarked upon a series of projects that aimed to improve the operational consistency and implementation of change on-site, while leveraging off the existing strengths of the operation. This document describes the gaps that were identified, the processes used to close them, and the resulting cultural change and production outcomes, with a specific focus on how to optimise the culture at any mining operation.MRO had a history of four owners in less than three years when it became a key asset of Evolution. The site leadership team (SLT) decided to influence the culture at MRO by reviewing and upgrading the existing management processes.The first priority was to improve transparency and collaboration at the SLT level, followed by improving competency in project management. The next phase was to strengthen the internal communication using a deliberately designed network of meetings, communication screens and other initiatives. Once there was some traction, the focus moved toward increasing production volume and decreasing cost per unit by improving short-term planning and execution capability. Together with other initiatives, this resulted in improved collaboration between all functions, which in turn netted over 37 per cent mining production uplift.Following solid success, a process of prioritisation and alignment management was implemented. This supported the ‘Mine to Mill one operation’ ideal and allowed the SLT to decide month-by-month what actions were to be prioritised. These priorities incorporated production realities and longer term imperatives of the balanced business plan.Much of this work was completed during a period of declining gold prices and a relentlessly strong Australian dollar, making it difficult to justify spending money on improvement projects. This work proved critical for the operation’s long-term survival.CITATION:Boon, M and Franklin, M, 2016. Improving consistency of delivery at Mt Rawdon Operation, in Proceedings International Mine Management Conference, pp 305-320 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By N LaBranche, G Callinan

There has been a reduction in overall workforce in the mining industry during the current downturn; a corresponding reduction in fatalities and high potential incidents (HPIs) has not been observed. The same contributing factors can be seen in the vast majority of these incidents. These include inadequate supervision and lack of adequate risk assessment. How management structures, trains and leads an operation can have a great impact on eliminating these factors and reducing the risk of fatalities and HPIs.Contractors now account for 41 per cent of full-time equivalent employees in the Queensland mining workforce, and are disproportionately represented in the majority of fatalities and HPIs. Having a clear strategy for how contractors are integrated into the workforce is crucial. This talk will include a discussion of the data as collected in the Department of Mines and Natural Resources department database, and offer solutions based on this data.CITATION:LaBranche, N and Callinan, G, 2016. Organisational factors in fatalities and high potential incidents, in Proceedings International Mine Management Conference, pp 201-206 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By L J. de Lange

As a material asset for mining entities, the resources and reserves (RR) estimation processes are surprisingly underrepresented in the assurance landscape. When press reports expose them being inaccurately reported, or in merger and acquisitions processes, their importance becomes clear. The impact of erroneous RR numbers (both positive and negative) could have a material impact on an entity’s reputation and value.The technical nature and ‘black magic’ connotations of the RR estimation processes are possibly reasons why audit committees are not actively involved with it. Internal auditors avoid the RR processes for similar reasons. Also the traditional approach to obtain assurance on RR is expensive and is therefore only performed when it is absolutely required.However, stakeholders’ expectations of good governance are growing. Part of this increased focus is based on attaining a higher degree of certainty about the current and forecasted position of the entity. Stakeholders are also increasingly more interested in non-financial areas of entities, as the future success of an entity is more than a set of financial metrics.Consequently, the RR estimation processes should be visible on the agendas of audit committees. Monitoring of key controls is required as part of the governance obligations for senior management and the audit committee. So once it is on the audit committee’s agenda, the question then becomes, how will that agenda be supported by an assurance process that is cost-effective?The main objective of the paper is to describe a model of RR assurance that has been effectively applied in some mining companies. The paper discusses one particular approach that provides an audit committee with the required assurance regarding RR processes. The approach ties the assurance needs of the audit committee to the needs of the technical experts in the entity, therefore involving two important figures. It also offers assurance providers with a model to audit ‘through’ the RR processes rather than ‘around’ them. The paper then discusses top-down and bottom-up approaches that provide assurance at different levels of an entity.A governance audit that focuses on the RR processes is suggested as a top-down approach. A bottom-up approach assesses the design adequacy of internal control processes. A hybrid model is described which meets the needs of diverse stakeholders including the audit committee and the RR community.The hybrid model combines the expertise of professionals in both internal audit and RR. The right balance of these skills directed by a singular approach ensures that a credible result is achieved.This approach is not as expensive as some verification approaches used in the industry and can, as a result, be performed on a more regular basis.The last element of the paper looks at implementation of the reporting mechanism. An assurance process aimed at continuous improvement further enhances the robustness and reliability of RR reported by an entity.CITATION:de Lange, L J, 2016. Resources and reserve assurance processes – a framework for improved governance, in Proceedings International Mine Management Conference, pp 21-34 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By M Grigorescu, J H. Hodgkinson, M Khanal

The mining industry often needs to operate in remote or climatically harsh locations. The industry has recently been forced to deal with extreme conditions including floods, heatwaves and droughts. As these are becoming progressively frequent occurrences, mines typically build ‘downtime’ into production schedules and expect to incur costs to manage the various risks arising from climate extremes. Importantly, many environmental conditions are becoming more extreme and consequently, risk management based on past data can become increasingly ineffective. Market and shareholder demand for fewer interruptions are another pressure on mines to avoid prolonged or frequent downtime. Hence, adaptation to climate is becoming an important strategic move for many companies, many of whom are using future climate scenarios and alternative risk evaluations.We present here a method that uses commonly available mine site data to assist decision-making for reducing vulnerability to sudden flood. The method, ‘climate-related adaptation from terrain evaluation results’ (CRATER), identifies a mine’s flood ‘hot-spots’ and presents them as a ‘traffic lights’ warning map. The process then requires a failure analysis process such as fault-tree analysis to identify both the cause of possible failures and a range of possible failure-avoidance adaptations. In the final stage, management can assess the most suitable option for the mine, based on the availability of capital such as time, facilities, labour and money in addition to social acceptability of the options. CRATER has been tested in an open cut mine environment and is now being further developed to identify how subsidence over underground mines may impact on flooding and ponding over the mining life cycle (CRATER II). Further work is continuing to test larger and more complex mine landscapes to deliver a method to extract more knowledge from existing data.CITATION:Hodgkinson, J H, Grigorescu, M and Khanal, M, 2016. Reducing mine site extreme rainfall vulnerability using climate-related adaptation from terrain evaluation results, in Proceedings International Mine Management Conference, pp 187-200 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By J P. Sykes, C Gemell, A Trench

The perceived and actual impact of government mineral policy upon the government share from gold mining revenues is assessed for ten key countries in which the gold sector is of relevance in advancing economic growth. Five African and five South American jurisdictions are considered, namely Burkina Faso, Ghana, Mali, South Africa and Tanzania from Africa; and Brazil, Chile, Colombia, Guyana and Peru in South America.Both the headline corporate income tax rate and royalty level are identified as poor indicators for the total government share. In addition, significant differences between industry perception and actual government tax levels are identified by this study. The quantitative financial analysis shows that there is no clear relationship between individual taxation rates, taken in isolation, and the overall average effective tax rate (AETR) paid by the project over its life. Neither companies nor governments should use individual taxation rates, or industry perceptions, in isolation to assess the overall competitiveness or equity of a country’s minerals taxation regime – such analysis can be very misleading.In this study, the perceived impact is determined from the well-established Fraser Institute survey published each year, and in 2014 compared 122 minerals jurisdictions globally. The actual impact is determined from quantitative modelling of the financial performance of a hypothetical gold mining project in each country. The technical parameters of the project are held constant; instead the differing mineral policies in each jurisdiction are applied to determine the resultant impact upon the relative share of the economic rents delivered to both private and public sectors. In the quantitative analysis, the total government share varies from 36.3 per cent in South Africa to 66.5 per cent in Ghana.CITATION:Gemell, C, Sykes, J P and Trench, A, 2016. Is perception reality? Evaluating the fiscal attractiveness of international jurisdictions for gold mining investment, in Proceedings International Mine Management Conference, pp 227-238 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By J Missen, P Currie, J Bohan, D Clark

AGL is one of Australia’s leading integrated energy companies and the largest ASX listed owner, operator and developer of renewable energy and thermal generation in the country. AGL owns and operates the 2210 MW Loy Yang A power station and adjacent 30 Mt/a brown coalmine in the Latrobe Valley, Victoria. It also supplies coal to the nearby 1050 MW Loy Yang B power station owned by the GDF Suez (Engie)/Mitsui partnership. The mine is currently nearly 5 km long, more than 2 km wide at the operating face and up to 200 m deep. AGL employs a large workforce at Loy Yang and a substantial amount of services are performed on-site by contractors and consultants.GHD provides mine planning, earth sciences, civil/geotechnical engineering, dam surveillance, plant engineering and environmental services to AGL Loy Yang through an alliance framework. GHD is one of the world’s leading professional services companies operating in the global markets of water; energy and resources; environment; property and buildings; and transportation. In addition to GHD’s global footprint, the company also has a significant Victorian presence, including a permanent, well-resourced regional office in Traralgon, approximately 10 km from Loy Yang, as well as a permanent site office.A joint paper on the Loy Yang mine professional services alliance model was written for the AusIMM International Mine Management Conference in 2006 by Woods and Wood. Now ten years on, this paper provides an overview of the present relationship and arrangements, including the continued transformation of the alliance model and maturing of the relationship contract.These are challenging times, with increasing cost and regulatory pressure driving change in the broader energy and resources industry, and locally including both the mining and power sectors at Loy Yang. Flexible models to achieve a balance between internal personnel and access to key external skills, whilst achieving value for money and transparency, is increasingly critical. The right drivers and performance measures are essential, particularly when confronted with potential major technical and environmental risks (considering significant ground failure and fire events that have occurred elsewhere within the Latrobe Valley over the last decade) within a sector that is reducing costs and optimising production.This case study discusses the alliance status and changes, reasons behind adjustments and what the future is likely to hold. The paper also explores the validity of the original objectives and the extent to which they have been achieved. The philosophy of the alliance is to continue closely aligning the objectives of the two companies in the best interests of the Loy Yang site and immediate surrounds/stakeholders. Quality of service, costs, timeliness, health and safety (H&S) and some operational activities (aquifer depressurisation) remain important aspects and are reflected in key indicators for which performance is measured.CITATION:Clark, D, Bohan, J, Currie, P and Missen, J, 2016. AGL energy, Loy Yang and GHD – a further case study in alliancing: ten years on, in Proceedings International Mine Management Conference, pp 321-330 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By M I. Roberts

Corporate and workplace culture, as many owners, directors, executives and managers know, is by far the most powerful determinant of productivity. It’s much more significant than buildings and equipment. Yet although no one today would build a building or machine without a plan, few leaders have a plan for building and sustaining a safer and more productive culture.Using practical ways, culture can be planned and shaped as desired. Success requires implementing a project plan for changing the systems that drive behaviours that in turn shape attitudes. The combination of behaviour and attitude together with leadership largely shape culture.To improve performance, leaders need to:1. improve the organisational systems that drive behaviour2. action a project plan for improving specific performance metrics 3. demonstrate leadership that is conscious, disciplined, committed and passionate for purposeful use of human energy.This paper explains all three factors in practical ways with operational and corporate examples. It details understanding and applying the power of fundamental statistical analysis tools to recalibrate, focus and drive proactive leadership that takes responsibility for process improvement, supporting people and ensuring accountability.Experience and practical understanding of human and organisational behaviour confirm that the Measurement ? Analysis ? Reporting system combined with conscious leadership is by far the most powerful driver of behaviour. This wisdom produces profound changes in leadership style and behaviour. It develops outstanding leadership to create and sustain a safe and highly productive culture reliably producing consistently high quality products. It is the key to developing accountability, employee retention and a sustained competitive advantage.CITATION:Roberts, M I, 2016. Building safe, productive cultures and leadership, in Proceedings International Mine Management Conference, pp 163-178 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

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

By P J. Fairfield

This paper reflects on the author’s experience working in site-based technical and management roles over a 29 year period, and the past 12 years in internal and external consulting roles. It discusses the author’s experiences and observations of operations management, and the significant value of the technical specialist’s role in providing management with information on what to base tactical decisions, which may or may not be part of a defined strategy.The landscape of mine management changes with the cyclical nature of commodity prices driving operating and capital prudence, as operations change their focus from expansion and growth to staying in the game. The role of the mine manager and management team in navigating through these changing times, attitudes and stages of the project life can influence the success or otherwise of many projects.Technical knowledge is one of the key drivers in realising or destroying the value of a project or operation. As managers focus on people management, management systems and processes, recognising and understanding value in underlying technical knowledge, and getting back to the fundamentals/basics, can be overlooked. In reaction to the fluctuating commodity cycle, managers implement changes through optimisation, fast tracking or parallel streaming, expansion projects and changes in the application of technology. These responses occur against the background of changes in the appetite for risk, acceptance of project uncertainty and changes in personnel which result in a loss of knowledge and experience – often at critical times.This paper shares the author’s experiences and lessons learnt in dealing with and observing these issues. The author questions whether we really understand our projects and are valuing the most important asset, our people and, in particular, the technical specialist and their experience and knowledge.CITATION:Fairfield, P J, 2016. Staying in the game – the importance of engineering-based decisions, in Proceedings International Mine Management Conference, pp 67-74 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By G I. Lumley

‘Every mine is a pilot’ is an attitude which encourages the mining paradox of optimistic mine plans and equipment under performance; propped up by an environment lacking accountability. The premise that ‘every mine is a pilot’, appears to underlie the development and operating approach to most mines. It is the hypothesis of this paper that many mining companies, development teams and their managers largely ignore what is done elsewhere. Anecdotally, most planners don’t know whether the selected rates are high or low (rates based on theoretical models tend to be high – certainly higher than what most companies can achieve). Mines then consistently operate the equipment at rates well below targets; often more than 20 per cent below. Further to this paradox, mine performance data demonstrates the average mine is currently operating their equipment at levels of output not much more than half the output of those in the top ten per cent. On the whole mines don’t know the potential of their equipment and therefore don’t put appropriate plans in place to do better. After all, when ‘every mine is a pilot’ there is little reason to look to one’s peers for an indication of potential. This paper will outline why every mine is not a pilot and how mines do value some knowledge, but not as much as they should. This paper proposes a two-pronged approach to address this issue in the area of equipment performance. This approach is to:1. engage in better forecasting of equipment rates and better subsequent performance through benchmarking against industry standards2. provide conditions for more accountability.These parameters are linked and proper implementation of them will address the losses which many shareholders and financiers have incurred when investing in companies with unrealistic mining plans.CITATION:Lumley, G I, 2016. Is every mine a pilot? In Proceedings International Mine Management Conference, pp 75-88 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By A G. L Pratt

The record for autonomous haulage systems in underground mining over the past 15 years is patchy, marked by many trials and attempts, with few examples of sustained operation until relatively recently. The drivers for the introduction of this technology are variously listed as the occupational health and safety of people working in underground mines, reductions in direct operating costs and increases in productivity.This paper reviews the trends for operation of semi-autonomous and autonomous haulage achieved by underground mines and the defining features of the technology currently available. The inclusion of autonomous haulage as part of mining studies and the fundamental conditions for its successful application is discussed in the paper. The components required for an autonomous underground haulage system are outlined and the key aspects that need to support its effective implementation are examined together with their associated opportunities and risks. Special note is made of the critical role people, including executive leadership, have in ensuring the successful introduction of this technology.The paper draws on published case study material, equipment supplier information and research findings. The aim is to offer a high-level insight into what is required for the application of autonomous haulage technology and its successful implementation in underground mines.CITATION:Pratt, A G L, 2016. Autonomous haulage systems in underground mining – what is required for success? In Proceedings International Mine Management Conferenc, pp 35-52 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016