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By G J. A Dewar

The Australian Corporations Law generally requires Independent Expert Reports to be presented in support of capital raising or in defence of mergers and takeovers. The introduction of the VALMIN Code in 1995 (and its recent revision issued as the VALMIN Code, 1998) made Assessment and Valuation Reports in these circumstances much more comprehensible than before because of its key requirements for transparency and materiality. By forcing the Independent Valuer to provide an explanation of the reasoning behind the estimation of a particular resource asset, VALMIN allows the reader to clearly see any error or illogicality in the valuation methodology used and to seriously question or even reject the resulting value. Even though many elements of resource asset valuation practice are undeniably subjective, there must be some basis of objective rationality to it. Independent resource asset Valuers are the essential link between mineral explorers/miners on the one hand and brokers/analysts/fund managers/investors on the other. The minerals and financial industries both expect them to not use inappropriate or invalid valuation methods and illogical steps within these methods. This paper examines some of the less sensible ways in which some of the main techniques that Valuers commonly use to assess the fair market value of mineral properties have been applied in recent instances. The authors hope to discourage the adoption or perpetration of the æWhat-number-did-you-have-in-mind?' approach. It is MINVALÆs view that as many methods as possible should be used in any resource asset valuation. If any of the resulting estimates are in approximate agreement (particularly if they were derived using the less subjective of the available methods), ie if they cluster, they are probably more persuasive as being the Preferred Value of the asset than outlier values within the Valuation Range.

Jan 1, 1999

By David J. Kinneberg, Barbara E. Mangion, Arnold M. Savolainen

Analytical laboratories require a qualitative or semi-qualitative method of determining major and minor constituents in "unknown" samples to select optimal analytical techniques. This is exceedingly important in precious metal assay laboratories where the precision and accuracy requirements are exacting (routinely within 0.02%, absolute basis). This paper describes the use of an x-ray fluorescence spectrometer with a specially designed software package to select optimal analytical procedures and specify relevant analytical parameters. A wavelength dispersive XRF spectrometer is capable of quick and accurate analyses of properly prepared samples without extensive standardization. When coupled with a specially designed software package, this preliminary assay system is applicable to a wide variety of sample types including gold and silver bullion, karat gold and karat PGM alloys, high silver and high copper metallic samples as well as particulate samples of ores and sweeps. The system relieves the assayer of tedious calculations for silver inquartation and proofing, minimizes human error and standardizes selections over time. Most importantly, the system allows for independent verification of final assay results.

Jan 1, 1999

By S. W. Kan, M. G. Kakarkis, J. Zelanco

Grouting has been used in underground mining for more than 20 years. Chemical grouting is often used as a remedial measure when the implemented ground-control program is unable to completely prevent structural failures or when there is a need for preventing a structural member from unraveling. The utilization of polyurethane grout is restricted by its limited range of physical and mechanical properties. To overcome some of the drawbacks of polyurethane, research is being conducted on a newly developed polyester based grout. The polyester resin, identified by Sandvik as Strata Grip, provides a number of features, including variable gel times and a much-reduced chemical hazard. Equally important are the mechanical properties of the product. The strength and deformability of any chemical grout must be compatible with the intended purpose of grouting and the expected deformation of the rock that is to be grouted The assessment of the mechanical properties of polyester grout is the focus of this work. Field experiences and laboratory research defined the properties of an effective grouting material. Experimental results indicate that the polyester grout meets or exceeds the recommended properties for many injection applications. Furthermore, the results suggest that the ability to adjust mechanical properties via resin formulation has the potential to expand the applicability of chemical grouting in ground control.

Jan 1, 1999

By Dan Michaelsen, Warwick Stewart

"PT Kaltim Prima Coal (KPC) is a large-scale truck and shovel operation mining thermal-coal in East Kalimantan, Indonesia. The operation produces 15 million tonnes of coal and mines over 120 million bank cubic metres of overburden annually. Approximately 35 percent of the waste rock is classified as potentially acid forming. Acid drainage must therefore be managed to prevent acid formation from spoil dumps and mined-out areas.KPC aims to prevent acid production in dumps by covering potentially acid forming spoils with materials identified as non acid-forming. The covers, built to engineering standards, minimise the flux of oxygen and water to pyritic spoils, thereby controlling the oxidation reaction, and reducing ARD discharge to negligible rates. Cover designs and cover materials vary according to stability, materials availability, equipment availability, and cost effectiveness. A modified field net acid generation (NAG) test procedure has been developed at KPC to identify and segregate overburden geochemical types. This paper discusses the ARD management strategies and operational procedures adopted by KPC to manage potentially acid forming waste rock. The development and field application of the NAG procedure at KPC is presented in a companion paper. Analytical"

Jan 1, 1999

By B. Cavender

Investments in new technology are often intended to improve the production or cost performance of existing operations. The economics used to justify these projects can be flawed, however, if they do not adequately consider the potential benefits of the alterative: the fully optimized use of the facility's present equipment and personnel. While new technology can be effective, dramatic improvements in production performance can also be achieved through the rigorous application of standard industrial engineering and operations management practices. An intermediate approach may also be effective: many basic improvements In the mine or plant necessary to support new technology will be equally effective when implemented for the facility's present operators. Firms who optimize their present operations are able to save the capital and avoid the risk associated with new technology. These firms will also be able to capitalize more quickly on new technology when it is implemented.

Jan 1, 1999

By R. R. Potter

"New Brunswick became a separate province in 1784, shortly after the influx of a large number of Loyalists from the United States. Many of these people settled along the Saint John River, including the area of excellent farmland near the present town of Woodstock. There were indications that some of these early settlers recognized iron formations in the vicinity of Woodstock about 1820, however the nature of the deposits was not known until 1836 when Dr. C. T. Jackson, a geologist commissioned by the State of Maine, investigated the mineral potential of the area. Jackson(1) described the ""ore"" as compact red hematite yielding 44 per cent pure metallic iron, and suggested that sizable tonnages may be present. It was about this time that an extensive limonite deposit was found in north-central Maine, near Mt. Katahdin. Other iron depostis were found in the Nictaux area of Nova Scotia, and a few years later at Londonderry* (Fig. 1). In 1837, Richard Ketchum of Jacksonville, on whose land iron ores had been found, petitioned the provincial government to incorporate a company. After much study, the York and Carleton Mining Company Bill was passed on March 15, 184 7. Several other petitions were passed permitting the company to construct roads, obtain woodland, etc. (2) . The first blast furnace was erected in 1848 on the west bank of the Saint John River near the mouth of Lanes Creek."

Jan 1, 1999

By M. Courtin, D. Berthelot, M. Haggis, D. McClarty, R. Payne

Over forty years of uranium mining in the Elliot Lake region of Ontario (1956–1996) has resulted in the production of over 300 million pounds of uranium. With the completion of mining activity, Rio Algom Limited and Denison Mines Limited are utilizing progressive environmental technologies and management systems to reduce and manage the environmental risks associated with the 150 million tonnes of potentially acid-generating tailings in nine regional waste management areas. Water covers designed to reduce oxygen entry and, thereby, significantly inhibit acid generation, have been applied at six of the sites with the Quirke site serving as a demonstration site for the Mine Environmental Neutral Drainage program. All five of Rio Algom Limited’s effluent treatment plants are monitored and controlled from a central control station utilizing a Supervisory Control and Data Acquisition (SCADA) system based on “Fix Dmacs” technology. Scheduling, auditing and reporting of plant operating and environmental monitoring programs for the entire watershed are controlled utilizing the Regional Environmental Information Management System (REIMS). Proper application of these technologies and management systems facilitates delivery of cost-effective environmental monitoring, care and maintenance programs at these sites and provides tools to demonstrate compliance with all environmental performance criteria.

Jan 1, 1999

By Liping Gu, Gordon A. Irons

"A 1/3 scale ""thin-slice"" model of an electric arc furnace was developed so that gas could be injected to simulate foaming gas evolution. The influence of arc jets, oxygen lancing and bottom bubbling was also simulated. Liquid velocities were measured by a white light particle image velocimetry system. Numerical simulations of some of these effects were made using commercial CFD packages. Comparisons with measured results show that considerable care is required to select the appropriate model and to interpret the computational results.INTRODUCTIONDuring recent years electric arc furnaces (EAF) have captured a significant share of steel production, partially due to increased productivity through the introduction of advanced technology such as oxygen injection, slag foaming and long-arc operation, process automation and post-combustion. However, systematic analysis of the process and these effects on heat transfer and fluid flow in the furnace is still in its infancy. Most investigationsl1 6l have been restricted to a specific application such as oxygen lancing or bottom stirring. In addition, it is very difficult to make comparisons between these computed results and experimental/industrial results. In this work a 1/3-scale ""thin-slice"" model of Dofasco's 190 ton EAF was built. The fluid flow in the bath due to the arc jets, bottom stirring, oxygen lancing and CO evolution was simulated. The velocity distributions in the bath were measured using Particle Image Velocimetry (PIV) System. In addition, numerical simulations of bottom stirring and CO evolution were carried out using two commercial CFD packages (Fluent and Phoenics). The objective of this work is to validate the mathematical models so that they can be applied to the full-scale furnaces."

Jan 1, 1999

By J. R. D. Gravel, D. A. Poland

"The induration of iron ore pellets has always utilized prefired pellets to protect the pallet cars from the environment of the induration furnace. This paper presents the process used to obtain superior upper sidewalls. These heat resistant castings are used on induration pallet cars, and their life improvements by as much as 400% is a significant step towards the reduction of the prefired (or hearth layer pellets.) The benefit to the industry in the removal of the hearth layer is improved overall productivity. IntroductionThe Iron Ore Company of Canada (IOC) operates with production facilities located in Labrador City, Newfoundland and Sept Iles, Quebec. It has recently been acquired by North Limited, an Australian based resource oriented company. Prior to its acquisition, IOC has examined several methods of operational cost reductions. One of these was an examination of indurrating pallets. Pallets are composed of numerous assemblies and sub-assemblies. The examination of the upper sidewalls began as an intent to increase the operational life of the component. The anticipated net effect was to be a reduction in the overall pallet maintenance cost. All of the components and assemblies have undergone a severe scrutiny. IOC has found that the success of the project has depended upon not only the technical competency of all parties involved, but also upon the ability to share risk, to be innovative, and to find a partner with whom the development can proceed without fear and yet with accountability. IOC has found in Cast Steel Products (CSP) such a partner in the field of pallet development. This paper will undertake to explore the progression into the arena of partnering between IOC and CSP. CSP and IOC met in the fall of 1994. The work of re-engineering the pallets began with an initial order for 36 pallets in March, 1995. The work on the upper sidewalls involved segregation of the effect of alloy development versus physical geometry development. The nature of partnering between the two companies allocated alloy development to IOC and physical geometry development to CSP, yet no advancements were made in either area without the close co-operation or the involvement of both partners."

Jan 1, 1999

By Armin D. Ebner

A hetero-f1occulation model is developed to calculate the net force exerted on a paramagnetic nanoparticle that is moving in the proximity of a magnetite particle that is fixed or supported within an open flow and magnetically energized packed bed. Important variables investigated include the size and surface charge of the particles, the magnetic field, the ,flow velocity, the electrolyte concentration and the magnetic susceptibility of ,the nanoparticle. The ?influence: of other naturally occurring forces, such as hydrodynamic and DLVO(Le., van der Waals and electrostatic) forces on the magnetic attractive forces between the magnetite particle and the nanoparticle are also examined. This model reveals the feasibility of using magnetite particles instead, of stainless steel as the energizable element for high gradient magnetic separation.

Jan 1, 1999

By W. Hitchcock

To enable the analysis of stability for a mine feasibility study a variety of geotechnical engineering parameters need to be obtained. At the early stage of a project it is usual for those responsible for the study to require a wide spatial distribution of RC holes in order to define a resource at the lowest possible cost. By the time a geotechnical study has commenced drilling priorities have usually switched to improving the definition of a resource, by drilling with diamond coring methods in the central area of the main orebody. The usual timing for geotechnical data collection is therefore after a wide distribution of holes have been drilled but which contain little geotechnical information. Conventional methods employed usually involve estimation methods, including book values and examination of disturbed core, or expensive additional drilling. With downhole geophysical methods we can economically take advantage of existing holes to obtain continuous values for density, defect orientation and ranking, elastic modulus values, unconfined compressive strength estimates and fracture frequency. This paper presents the results of a geophysical study and discusses the advantages and potential pitfalls of the method as compared to conventional methods of data collection.

Jan 1, 1999

This paper examines some of the important aspects of mineral taxation policies and practices, with reference to the mining tax regimes of selected Pacific Rim countries (see Tables 1 and 2). The following subjects are addressed:what is æmineral taxationÆ?, basis for mineral taxation, types of mineral taxes, objectives of the mineral taxation regime, best practices, and mineral royalties. Many countries, in some cases with the encouragement and assistance of international funding agencies, are actively assessing the international competitiveness of their mining tax regimes with a view to attracting investment. However, these countries recognise that the mining tax regime is not the only consideration that is taken into account by prospective investors. The countryÆs geological prospectivity, physical infrastructure, labour force, political risk, and regulatory system are also important factors in the investment decision making process. Although it is probably true that an attractive mining tax regime will not necessarily attract mineral investment, there is a real possibility that an unattractive regime can drive away investment. For example, Hugo Dummett, general manager for discovery at BHP, hinted recently that BHP could cease exploration in Russia in the absence of positive tax changes. Dummett is reported as saying that if taxes æend up being as onerous as they are now, we really have to rethink why we are hereÆ (Mining Journal, London, November 27, 1998).

Jan 1, 1999

By Paul L. Boni

Trona, Na3(CO3)(HCO3) ? 2H20, is mined in quantity from saline facies of the Eocene Green River Formation of southwestern Wyoming. The Green River deposits are the world's largest known resource of natural sodium carbonates. An estimated 127 billion tons of trona ore are known to occur in beds exceeding 4 ft in thickness (Wiig and others, 1995). Twenty-five trona beds, exceeding 3 ft in thickness, and covering at least 100 mil have been identified. The beds are numbered sequentially in ascending stratigraphic order. Trona beds underlie more than 850 mil (bed 17) and are up to 37 ft thick (bed 1) (Culbertson, 1966). Five underground mines, operating in beds 17, 19, 20, 24, and 25, process trona to produce soda ash (sodium carbonate). A total of 11,837,703 short tons of soda ash were produced from 17.1 million tons of trona ore in 1997 (Kostick and Clark, 1998). A detailed study of trona bed 17, using techniques of petrography and X-ray diffraction, has been undertaken in the Solvay trona mine, near Green River, Wyoming. A continuous, vertical-channel sample was taken from near the production shaft for this study. At this location, bed 17 is 12.6 ft thick and includes several stratigraphic markers that are easily correlated throughout the mine and in surrounding drill cores. Bed 17 in this area averages 90% trona through its entire thickness (Wiig and others, 1995) and 95-100% trona in the lower two-thirds of the bed. Mineral impurities include water-insoluble dolomite, quartz, pyrite, clays, and other minerals and partially water-soluble northupite and shortite. Northupite, Na3Mg(CO3)2C1, contributes to chloride contamination in the soda-ash product and is concentrated in the upper one-third of bed 17, which is left behind as roof rock. Northupite has two modes of occurrence: (1) as bedded strata with dolomite, chert, clay, and shortite and (2) between primary trona crystals in trona spar. Petrographic and mineralogic data indicate that this section of bed 17 was deposited subaqueously during its early and late history and may have undergone periods of deposition in a subaerial or marshy environment. Stratigraphic data indicate that trona accumulated at an annual rate of 2-4 in. per year. During trona deposition, dolomite, CaMg(C03)2, precipitated in parting layers when new water entered the lake, freshening supplies of calcium and magnesium. The lack of clay minerals in the trona facies suggests water input may be by means of springs, as opposed to overland flow. Clay occurrences in thicker dolomitic partings within the trona facies indicate periods of episodic overland flow, possibly resulting from storms in the surrounding basin.

Jan 1, 1999

By B. K. Parekh

Economical dewatering of ultra-fine (minus 74 m) clean coal slurry produced in column flotation to a 20 percent or lower moisture level will be an important step in successful implementation of the advanced fine coal cleaning processes. The main objective of the present study was to evaluate efficiency and effectiveness of three dewatering techniques, namely, hyperbaric, vacuum and screen bowl centrifuge, in dewatering of ultra-fine (D50 -25 m) clean coal slurry produced by the 'Ken-Flote' columns operating at the Powell Mountain Coal Company, St. Charles, Virginia. he hyperbaric filter using 3 bar pressure and 1650 cake formation angle, provided a filter cake with 23.6 percent moisture with a throughput of 800 Kg/m2-h and air consumption of 868 Nm3/t (460 scfm/t). The vacuum filter with 30 percent submergence provided a filter cake with 27.8 percent moisture with a throughput of 122 Kg/m2-h. The screen bowl centrifuge provided a dewatered product containing 32.9 percent moisture at a feed rate of 450 Kg/hr, however, the solids capture was only 65 percent. Addition of 1 Kg/t of a cationic surfactant provided filter cakes with 19.1 percent, 23 percent, and 34 percent moisture using hyperbaric, vacuum, and centrifuge, respectively. Similarly, addition of 0.5 Kg/ton of copper chloride lowered filter cake moisture to 20.7 percent and 24.8 percent, using hyperbaric and vacuum. With the centrifuge no improvement in filter cake moisture was noted. However, use of 80 Kg/ton of 'orimulsion' in the centrifuge provided dewatered product containing 26 percent moisture, and the solids capture increased from 65 to 95 percent. The dewatered product appeared dry and was easily handleable.

Jan 1, 1999

In the estimation of recoverable resources, geostatistical techniques such as Multiple Indicator Kriging require a change of support correction to derive theoretical recoveries based on an assumed level of mining selectivity. The change of support models most widely used in practice entail model based generalized corrections either on a global or local basis. Examples include the affine and indirect lognormal methods. Change of support corrections derived empirically through short-scale conditional simulation realizations often show notable differences compared with theoretical corrections determined using model variogram parameters. The existing changes of support models are reviewed and an alternative method is proposed.

Jan 1, 1999

By G. Van Weert

Separation of minerals by shape has received little attention, since minerals normally do not break into different shapes during crushing and grinding. However, comminution of consumer wastes generates opportunities for novel separations based on particle shape. For instance, ductile plastics are broken into longer curved shapes, whereas brittle plastics yield angular particles. Using spouting beds for particle separation in water requires controlling the spout's instability. The preferred geometry for such redesigned spouting beds is reported. Plastic cylinders, discs and spheres were separated as a function of rising water velocity and amount of particles in the system. By using 5 mm particles, differences in settling behavior could be video recorded.

Jan 1, 1999

By Christopher Andreae

Years before iron and steel works were established at Sydney, several thriving although short-lived iron works operated in Nova Scotia. These furnaces reflected the general nineteenth-century North American experience with iron works. At the beginning of the century, small furnaces struggled to supply local needs. Charcoal was the principal fuel and water powered most furnace equipment. By the end of the century, a few huge primary iron and steel works dominated production for Nova Scotia and the rest of Canada. Two sites achieved prominence in the nineteenthcentury Nova Scotia iron industry: Londonderry and Ferrona (Fig. 1). Londonderry, the larger and longerlasting of the two sites, is today a small village on the south flank of the Cobequid Mountains, about 30 km west of Truro. Prior to the establishment of an iron works in 1849, no community existed. At the peak of operation in the 1880s, however, over 2600 people were located there. The second site, Ferrona, today is a mere crossroads on the map, about 10 km south of New Glasgow. Following the construction of a blast furnace there in 1892, a small village grew up around the furnace. But once the furnace was blown out in 1904, the population gradually drifted away.

Jan 1, 1999

By A. Mezei

Samples of cobalt and bismuth concentrates produced from the NICO deposit in Northwest Territories were subjected to a comprehensive metallurgical testwork consisting of: pressure oxidation, ferric chloride leach and carbon in leach, to recover the cobalt, bismuth and gold, respectively. A specific testwork program was designed to allow for the optimization of process parameters under multiple restrictive criteria. The overall objective was to establish leaching sequences that could produce acceptable recoveries while generating environmentally disposable residues as well as solutions suitable for further processing. The recoveries for the leaching stage, under the optimum conditions, were 97% for cobalt and 95% for gold, in the case of the cobalt concentrate. The bismuth concentrate produced recoveries of 99% for bismuth, 99% for cobalt and 97% for gold, respectively

Jan 1, 1999

Olympic Dam Operation is located in the Stuart Shelf Geological Province approximately 520 km north-north-west of Adelaide in South Australia. It is estimated to be one of the worldÆs top five copper orebodies by size and the biggest single occurrence of uranium. The deposit was discovered by Western Mining Corporation in 1975. Exploration was based on a conceptual model for the formation of sediment hosted copper deposits together with gravity and magnetic anomalies.The capital cost of the current expansion is estimated to be A$ 1.64 billion. The underground expansion includes a total of 36 km of lateral development, a railway haulage system delivering ore from a series of ore passes to a new crusher station and a significant increase in ventilation capacity and mine services.In the current underground expansion the mining method will essentially remain unchanged. The ore handling system will incorporate some recent advances in technology, improving efficiency and safety standards.Major infrastructure excavations are designed by a team of engineers attached to the Olympic Dam Expansion Project and a number of consulting groups. Once the expansion is fully completed it is expected to increase the current annual underground production level from 3.4 Mt to 9.0 Mt of ore by the year 2000. Mine design engineers working for the Olympic Dam Operation have recently completed a three year final design plan to achieve this target.Access to the existing mine is through the decline and Whenan shaft. The Whenan shaft was originally sunk as an exploration access and later upgraded for hoisting. The 4 km long service decline connecting to the Whenan shaft was later constructed to accommodate the increase in service demand. The Robinson and Sir Lindsay Clark shafts were developed at later stages to cater for the hoisting during and following the expansion lead up.

Jan 1, 1999

The Elgas Underground Storage Facility at Port Botany, Sydney, is the first purpose-built cavern of its kind in Australia and allows large capacity, safe and environmentally benign storage of Liquefied Petroleum Gas (LPG). The facility provides Elgas with the flexibility to source product at competitive prices and will ensure long-term security of supply. Construction has provided Orica Australia, formerly ICI Explosives, with a unique opportunity to provide a bulk explosive delivery system specifically designed to meet the exacting demands of the site (see Figure 1) and of the project.

Jan 1, 1999