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By Samuel de Lima Silva

A Comissão Interna de Conservação de Energia (CICE) atuou com uma série de ações para aprimorar a rotina de trabalho com finalidade da redução do consumo específico de gás natural na Unidade de Juiz de Fora da Votorantim Metais Zinco. As principais ações adotadas foram o desligamento de um dos queimadores da Caldeira Aalborg, e regulação do outro para 50%, utilizando o primeiro apenas quando necessário; estudo de melhorias na operação da Planta Polimetálicos, visando a redução de consumo pelo queimador do forno; melhoria no acompanhamento de consumo diário, tanto na chegada de gás quanto na caldeira; levantamento dos pontos de vazamento de vapor e contratação externa para adequação. Como resultado dessa série de ações tomadas, obtivemos uma redução de 17% no consumo específico de gás natural da planta.

Jul 31, 2018

By Rudá Grossi Coimbra Martins

A estruturação organizacional da gestão da informação em Central de Serviços já está consolidada no ambiente de Tecnologia da Informação. O ambiente de Tecnologia de Automação compartilha características semelhantes, já que também fornece serviços para seus clientes. Entretanto, serviços de automação possuem particularidades derivadas, em grande parte, do fato de que são mais críticos para a atividade fim da empresa, já que visam manter a operação. Implantar uma Central de Serviços em ambiente de Tecnologia de Automação de uma empresa já existente demanda uma série de modificações em termos de Tecnologias, Processos e Pessoas para trazer os retornos desejados em termos de gerenciamento, organização da rotina e disponibilidade dos ativos. Este trabalho apresenta alternativas para atuar sobre os três componentes supracitados durante a implantação de uma Central de Serviços, com foco em sua operação através de uma Gestão Compartilhada (Cosourcing). Experiências adquiridas em projetos de especificação e operação de Central de Serviços também são apresentadas para embasar a estruturação da gestão da informação em ambiente de Tecnologia da Automação de indústrias de Metais e Mineração.

Jul 30, 2018

By Ravi Sahu

"In the global mining industry, there are those who seem resigned to the fact that the mining industry has always operated according to certain time-tested principles that don’t involve jumping on every new technological trend. Others expect that mines will soon have autonomous electric vehicles running around the clock. The truth lies somewhere in the middle. In business, as in life, that is usually the best path to follow.The instant access to people and information provided by 21st-century technology continues to push businesses in all industries toward greater efficiency and unheard-of levels of modernization. And in the world of mining, the embrace of advanced technology is all about managing risk.However, even in this age of digital information overload, some mine sites still require employees to physically download data from individual trucks to monitor payload data and inspect road conditions using a clipboard. What’s more baffling is that other mine sites still have no way of tracking tons moved at all.This isn’t due to a lack of innovation in the industry. Quite to the contrary, there is an abundance of new technology available that provides real-time monitoring of vehicle movements and tracks road conditions without the intervention of people. So why are owners reluctant to embrace advances in mining tech?Gauging the value of changeSurvey data has traditionally been captured by ground laser scans and LIDAR systems. A mine site surveyor would drive around the pit with a truck-mounted scanner to generate a point cloud. This process would be completed every few days and would take an entire day.The many cons of this method far outweigh the pros. First, it provides no visual data. If an operation has moved beyond the roller wheel and tape measure, visual pit models and LIDAR scans are typically completed once every six to 12 months by an aerial flyover, but such sporadic information gathering isn’t likely to result in the most actionable data. Moreover, given the high cost (in terms of both money and time), the numerous safety and liability issues, and the lack of flexibility in scheduling, manual processes are more trouble than they are worth.Overall, while miners are excellent operators who value innovation, their employers often try to outsource it or acquire innovators instead of investing in existing technology that can improve current operations. It is a never-ending dilemma:"

Jan 5, 2018

By C. Frenzel, N. Blechschmidt

"INTRODUCTION There is no doubt about the time and effort companies put in establishing and maintaining their equipment. However, the question about how these companies can map the benefits comes up. Neither do they have the tools to quantify the benefit of their action, nor do they have the tools to know the actual quality of their current maintenance system. The resources used in the process seem futile to observers. It seems impossible to trace improvements and to get information about the impact of actions in retrospect. Improvements in maintenance performance cannot be recognised by management or shareholders. Thus the necessity for measuring the performance of maintenance systems is given. In this paper ConMoto is systematically showing the strengths and weaknesses of many companies' maintenance management and is providing field-tested proven design elements for measuring maintenance systems and implementing Value Oriented Maintenance. Considering only business assets in production facilities and related machinery out of all investment goods in Europe, you reach a value of around 9.7 trillion euros in 2008. In Germany alone the equipment replacement value amounted to about 1.9 trillion euros [8,10,11,13]. If you calculate a cross sector maintenance costs rate of 4.8 % (corresponding to the average value identified in this study), direct maintenance costs in European production locations add up to over 450 billion euros per year [3]. These figures speak for themselves. Yet maintenance is not only of enormous significance for European enterprises. Our experiences show that maintenance and asset management, particularly sustainability issues, are also increasingly moving to the forefront in the BRIC states, in the Middle East and in many emerging countries. First of all, in order to meet the resulting high quality and cost related requirements of maintenance systems, a comprehensive overview of the issue is needed. This overview is provided by a detailed analysis of 83 companies and production plants from various sectors – with amazing results. SIGNIFICANCE OF MAINTENANCE Current studies show the high financial significance of maintenance and asset management. According to the market study in the Asset Manager [9], in industrialised countries about 10 to 15 per cent of the labour force are employed in maintenance and facility management tasks. In Europe about 40 to50 million people are directly and indirectly involved in retaining the value of machinery, plants, buildings, transport systems and infrastructure facilities. A glance at the costs side also demonstrates the great relevance of maintenance. EU-wide annual direct maintenance costs amount to a total of more than 1,500 billion euros. In Germany alone they are about 250 billion euros. This impressive total is considerably exceeded by indirect maintenance costs caused by technical failures. Indirect costs are estimated to be five times higher (Figure 1). [7,12,14]"

Jan 1, 2018

By O. Jerez, A. Novoselov, L. Gutiérrez, J. Morales, U. Kelm

"In Chile, the evaluation to reprocess tailings for elements other than the traditional Cu, Mo, Au, and Ag, as well as projects to implement long-term monitoring of mining residue sites are key elements of the government’s roadmap laid out for the mining industry for the next two decades. Characterization routines for tailings and mining residues in general have to be adapted from traditional ore and gangue mineral and micro-chemical studies. This contribution summarizes key aspects for the regional mining industry for a basic characterization of tailings with emphasis on small- to medium-size operations with limited in-house facilities and funds to carry out extensive characterization programs. The oldest tailings in Chile were deposited almost a century ago; this fact gives importance to the recovery of past ore /gangue feed information, process circuits and changes (e.g. acid to alkaline flotation), process water provenance and recovery, meteorological registers, and routines of filling a tailings impoundment. Basic characterization should include X-ray fluorescence spectrometry combined with laser diffraction (LD) granulometry followed by X-ray diffraction (XRD), optical microscopy (OM) and automated mineral analysis (AMA) on a reduced set of samples identified by hierarchical cluster analysis. For this detailed stage, only coarse tailings are recommended for direct a study by microscopy and automated mineralogy (P80 >100 µm); for fine tailings (P80 ~30 µm) a combination of XRD and deposit type adapted sequential extraction are more informative options. In particular, for XRD of clay phases, losses of crystallinity may result in deviation of spectra from standard reference phases due to prolonged storage. To monitor surface alteration, scanning electron microscopy can be complemented by Raman spectroscopy to detect residual reagents on mineral surfaces. For reactivity modeling BET measurements are essential."

Jan 1, 2018

By T. Bhambhani, O. Yavuzkan, D. R. Nagaraj

"The recovery of oxide Cu minerals by flotation is a longstanding challenge in the minerals industry, especially for high acid-consuming ores which would not be economical for direct acid leaching. Sulfidization (often using controlled potential sulfidization or CPS) using NaSH (or Na2S) followed by flotation using traditional sulfide collectors is the widely used technique. CPS has certain limitations: a) inability to recover certain oxide Cu minerals because they are refractory to sulfidization, b) high consumption of NaSH (or Na2S), and c) potential health and safety hazards associated with NaSH (and Na2S). Flotation of oxide copper minerals using alkyl hydroxamate (AHX) collector has been studied extensively. Investigations using single minerals and laboratory ore flotation have been conducted in the past to demonstrate the efficacy of alkyl hydroxamates. The technology has been used intermittently in plants. One of the main challenges in plant use has been quantifying the true potential for alkyl hydroxamates for recovery of various oxide Cu species in complex and variable ore systems and identifying the most suitable conditions for optimal use. Quantitative mineralogical analysis using QEMSCAN was used in this study to characterize flotation products lab flotation samples. Analysis of concentrates and tails from hydroxamate flotation and CPS flotation stages demonstrated that certain oxide Cu minerals respond exclusively to alkyl hydroxamates and not to CPS. The hierarchy of interaction of AHX with the various oxide Cu minerals could be inferred from these studies. Finally, these studies also allowed quantification of a group of minerals species, which (erroneously) report as part of the Acid-Soluble Cu [ASCu] but cannot be recovered by flotation, thereby facilitating an estimation of the true recovery potential for alkyl hydroxamate.INTRODUCTIONCopper that is economically recoverable occurs in three major types of ores, which are defined by the modal mineralogy of Cu. For sulfide ores, Cu occurs as sulfide minerals and is satisfactorily recovered by flotation using sulfide collectors. Non-sulfide ores, which contain Cu in the form of oxides, phosphates, carbonates and silicates, described in the industry as “oxide” ores (or ores containing “acid-soluble” Cu or ASCu), are currently treated using hydrometallurgy, which involves leaching with dilute sulfuric acid followed by solvent extraction and electrowinning, unless the ores contain acid consuming gangue minerals such as dolomite. For mixed sulfide-oxide ores (i.e. containing both sulfide and oxide Cu minerals) that do not contain acid consuming gangue minerals, Cu values are easily recovered by flotation of sulfide Cu minerals followed by leaching of oxides (only when a leach plant is available). However, when the ore contains acid consuming gangue minerals flotation is required to recover both sulfide and oxide Cu minerals."

Jan 1, 2018

By T. Krichler

"Current mine control stations are either single-position systems with high engineering effort or all-in-a-box solutions with low integration possibilities of third-party devices. Above all, both approaches are cost-intensive and not feasible for small companies. This paper shall be an inspiration of how to enhance the productivity and monitoring of an existing mining system in a modular way by introducing a proven technique of the ongoing digital revolution: A Wi-Fi network based on the communication protocol OPC UA. The starter kit consists of a single-board computer, a WLAN access point and any electronic sensor. INTRODUCTION The majority of the European mining industry is run by small and medium deposits (Europe Geology, 2017). This is due to the fact that most ore mines in Europe are widely distributed within the continent, are generally small and additionally they are often steeply inclined. Such ore bodies are normally mined with underground mining methods and must be excavated with high selectivity because of their small thickness. That is why the economy of scales, higher efficiency through bigger machines, cannot be used in most deposits in Europe except for lignite mines. It is important to find an alternative possibility to improve the efficiency of European mines for making them competitive internationally. For cost optimization and profit maximization it is necessary to use the trends of industry 4.0 and to broadcast these into the mining industry to reach a technological advantage. The goals of the EU within the Horizon 2020 funded project are to shorten the actualisation of the mine and block model to hours, improve the communication with Through the Earth (TTE) via very- or ultra-low frequency for long-time monitoring of the abandoned workings, and develop a cost-effective mine control station for optimization of mining processes in Small and Medium Enterprises (SMEs) as well. This paper deals specifically with the new approach for data acquisition, transmission and visualisation of a mine. SCADA AND ERP IN MINING There are already many Supervisory Control and Data Acquisition (SCADA) and Enterprise Resource Planning (ERP) programs on the market, but these are normally not developed for the mining industry. At the moment this leads to three options. • To hire a system integrator, who shall build a complete control station for one mine that requires a high amount of knowledge in programming and cannot be maintained by the mining company itself. • To buy different types of out-of-the-box systems, whereby every system can include some of the used technology. In this case a huge amount of project engineers and operators – at least one per system and shift- is required. • To buy every machine and program from one company including the service contracts."

Jan 1, 2018

By André Luis Martins de Souza

O objetivo do estudo foi medir e aumentar a produtividade das equipes de manutenção - em uma mineradora multinacional - dentro e fora das paradas de manutenção, avaliando os principais fatores que influenciam o indicador e, ainda, reduzir os custos de manutenção referente a contratação de efetivo terceirizado através da inovadora metodologia Six Sigma, para este trabalho utilizou-se um metodo quantitativo, analítico e experimental. Após a finalização do projeto obteve-se o aumento da produtividade da equipe de manutenção em todos os turnos analisados e os custos foram reduzidos em aproximadamente R$ 200.000,00 e o tempo para resolver pendências que era de 50,1 dias foi reduzido para 18,1 dias.

Oct 30, 2017

By Ron Webber

With the difficult economic challenges currently facing the steel industry, it is essential to perform a complete analysis when determining which rolls to purchase. A properly designed “Total Cost of Ownership” model can result in significant savings. This paper will review the costs associated with rolls in both Hot Strip and Cold Strip Mills. The multitude of factors that must be considered in performing a complete analysis for the roll purchasing process will be discussed. Models for both Hot Strip and Cold Mills will be presented. Examples where traditional analysis can lead to expensive, incorrect decisions will be presented.

Oct 30, 2017

By D Kilkenny

Underground contractors in the mining industry must be prepared to take a position at the forefront of innovation of equipment and work methods in order to maintain a competitive advantage over in-house operations and remain relevant. Innovative concepts such as split-feed development jumbos, high capacity trucks and loader guidance systems were implemented by contractors to stay ahead of ‘the pack’. All of these are now common across the industry.The demands of regular participation in competitive tendering coupled with aggressive fleet depreciation, means contractors tend to have more communication and opportunities to work with equipment suppliers than mine owners. Therefore, they are more likely to influence equipment design and product directions. They also have a unique opportunity to assist in trialling new concepts and technologies across a wide variety of operating conditions rather than being restricted to one mine.In addition, as a ‘guest’ on a mine site, mining contractors do not have the luxury of creating the environment for their preferred systems, rather they must have the capacity to adapt their technology to suit the offered environment at a particular mine. This leads to a pursuit of adaptive technologies that can be implemented selectively and seamlessly without excessive disturbance rather than ‘all-of-mine’ systems. These incremental innovations then become available for use across the mining industry where they can add value as ‘bolt-on systems’ to existing operations.Mining contractors, therefore, act as the bellwether for industry practices and equipment. However, in order to maintain their position they must engage industry stakeholders to deliver practical, innovative and cost-effective technologies that add value and result in an improved bottom line for all. This paper uses case study material to illustrate how the Byrnecut Group has approached innovation and how the theory of Disruptive Technology applies to underground mining innovation.CITATION:Kilkenny, D, 2017. Innovation in mining – a contractor’s role, in Proceedings 13th AusIMM Underground Operators’ Conference 2017, pp 59–68 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 16, 2017

By C Hawtin, B Miller, D Ashton

Ernest Henry mine (EHM) is an Iron oxide copper-gold sublevel cave mine located 30 minutes north of Cloncurry in North-West Queensland. The underground mine lies beneath open pit excavations, which were in operation from 1999 to 2011. Fault structures carry large quantities of water from the cover sequence aquifer into the underground mine area. The open cut excavations exacerbates vulnerability of the underground mine to the high intensity wet season storms of northern Queensland. These factors combine to make hydrogeological issues high priority for mine operation. Water-related risks include the cost of removing water from the mine, flooding risk and mud rush potential.Turnover of key technical staff in late 2015 at EHM resulted in the mine being left in an untenable position of losing the primary source of technical knowledge. Due to encouragement of cross-disciplinary activity coupled with workload and resource sharing, the management team were confident in utilising on-site personnel to offset loss of experienced personnel.Remaining geology personnel took additional responsibility for hydrogeological monitoring equipment and planning of upcoming work. Consultant input was limited to review only and an emphasis was placed on knowledge transfer to the geology team. Using this strategy, a 13 hole dewatering program was successfully implemented, achieving a significant water level drop in areas of elevated hydrological risk, whilst also upgrading the hydrological monitoring sensor array.Through a development program centred on cross-disciplinary exposure, the technical team was able to retain key technical knowledge despite staff turnover and produce strong results outside traditional training and roles. This paper serves as a case study on the methods, strengths and drawbacks of putting a focus on cross-disciplinary exposure as a method to combat staff turnover.CITATION:Ashton, D, Miller, B and Hawtin, C, 2017. Go with the flow – managing hydrogeological staff turnover at Ernest Henry mine, in Proceedings Tenth International Mining Geology Conference 2017, pp 129–136 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 20, 2017

By Flaviana Dias Rocha Pimenta

Com o objetivo de adequar a logística interna ás particularidades e variabilidade das demandas de movimentação interna de produto, a VBR (Vallourec Tubos do Brasil S.A) estudou em parceria com o operador logístico TRADIMAQ um novo modelo de equipamento que atendesse todas as regras internas de segurança e as diversas restrições em sua operação. O presente trabalho tem como objetivo apresentar as diferenças entre o modelo anterior utilizado para a movimentação interna e o atual modelo implementado no final de 2015, bem como todas as alterações necessárias entre o projeto conceitual e o equipamento em operação atualmente.

Aug 17, 2017

By Shibu John

The COREX® process is beside the FINEX® technology the only industrially realized alternative to the blast furnace route for the production of hot metal. Changes in the raw material sector in respect of decrease in quality, strictly enforced environmental laws and positive operation results of COREX® reference plants make it worth to carefully re-evaluate the COREX® technology in comparison with the traditional blast furnace technology. Integrated Plant concepts based on COREX® offer solutions for future challenges of the iron- and steelmaking industry, which include: economical hot metal production; efficient and highly economic export gas utilization (power generation, DRI production, syngas production for chemical products); lower raw material cost, higher raw material availability; environmental friendly high grade steel production. The economic evaluation of different COREX® gas based plant concepts in comparison with the traditional blast furnace route shows that the COREX® technology is highly competitive in the challenging iron and steel producing environment.

Aug 17, 2017

By Juan Mori Arellano

El presente texto describe la evolución de la tecnología con sus limitaciones iniciales en su aplicación, el cambio cultural de una empresa en cuanto a sus necesidades de conocimientos, la globalización de los mercados y el alto nivel competitivo que ha permitido adoptar diferentes esquemas de mantenimiento con el fin de aumentar la eficiencia en equipos de carguío superficial.

Mar 1, 2017

By R. Todd Swinderman

"Higher production demands across all bulk handling segments require increased efficiency at the lowest cost of operation, in the safest and most effective manner possible. As conveyor systems become wider, faster and longer, more energy output and more controlled throughput will be needed. Add an increasingly stringent regulatory environment and cost-conscious plant managers must closely review which new equipment and design options align with their long-term goals for the best return on investment (ROI).There are primarily two separate market segments using conveyor belts. One is in process industries such as food, chemicals, paper and powders. Handled in relatively low volumes, the bulk materials that enter these processes are generally of a consistent size and quality. The other market includes mining, coal handling and cement, where the bulk material’s quality and size vary, and the volumes are typically much greater. While both segments face similar issues with safety and environmental control, the properties of the materials handled and the volumes transferred suggest different approaches, with one thing in common: increased belt speeds requiring modern equipment upgrades.Safety at higher belt speedsWith companies recognizing that safety does indeed pay, safety is likely to become a new source of cost reduction. The percentage of mines and processing facilities with a robust safety culture are likely to increase over the next 30 years to the point where it is the norm, not the exception. In most cases, with only a marginal adjustment to the belt speed, operators quickly discover unanticipated problems in existing equipment and workplace safety. These problems are commonly indicated by the larger volume of spillage, increased dust emissions, belt misalignment and more frequent equipment wear or failures."

Jan 7, 2017

"How Wall Street Darling Molycorp Undermined the U.S. Economy, Degraded our National Security and Distorted the Global Economic Balance and How These Falsehoods Continue to be Promoted Even Today INTRODUCTION & SUMMARY In 2007 the Molycorp Mountain Pass rare earth mine was resurrected from its desert-grave in California by its then-owner Chevron Mining. Responding to elevated rare earth prices Chevron began processing on-site rare earth concentrates left over from past mining operations that were terminated in 1998i. Chinese demand had sparked what was being described as a commodities super-cycleii. Commodity prices were on the move. Wall Street smelled opportunity. In 2008 Goldman Sachs, Pegasus Partners, Resource Capital Funds, Traxys North America LLC and Carint Group LLC acquired the mining assets from Chevron. In an environment of ever-declining ethical standards and regulatory consequences the private capital group and their investment bankers would bring Molycorp to market. Molycorp, with its high powered investment banking team of Morgan Stanley and J.P. Morganiii, easily dominated the contest. Molycorp promoted itself, largely based on its past operating history and proven reserves, as the best company to challenge China’s monopoly control over the production of rare earths: a group of elements critical to most advanced technologies and U.S. defense systemsiv. Most of Wall Street’s hottest investment sectors were dependent on these materials: alternative energy, green technologies, computing, personal communications, advanced electronics and defense systems. By late 2010 there were dozens of prospective rare earth start-up ‘mining companies’ seeking capital. Eventually the number of prospective rare earth mining companies seeking capital exceeded 400, despite the reality that supply requirements of this market were disproportionally small when compared to other natural resource sectorsv. In the world of finance ‘smart money’ picks the winners. Consequently just twovi projects attracted nearly all of the capital (Molycorp and Lynas). Wall street picked Molycorpvii. This paper will primarily focus on Molycorp. By early 2010 the words “Molycorp” and “Rare Earths” electrified many people in the mining industry, most non-Chinese manufacturing technology companies, U.S. & allied defense contractors, technocrats in the U.S. national security community and eager investors across most of the world’s stock markets. It was the hottest story of the yearviii. The financial, technology and defense press coverage verged on euphoric: heaping fuel on fuel until the highly combustible Molycorp-pyre cast a long shadow over all of its rivalsix. When the IPO match was lit the spectacular flaming pyre sucked all of the oxygen out of the rare earth spacex. Molycorp was ranked the most lucrative IPO of 2010, resulting in record breaking profits to its private investors and massive returns for its early stock holding investors."

Jan 1, 2017

By J. O. Marsden, M. M. Botz

"Heap leaching is responsible for approximately 21 percent — 3.9 million metric tonnes — of copper production and 9 percent — 270 metric tonnes or 8.7 million ounces — of gold production worldwide. Given metal price assumptions of $2.25/lb for copper and $1,250/oz for gold, these portions of global production generate revenues of $19 billion and $11 billion, respectively. For heap leaching operations, small changes in metal extraction efficiency drive substantial changes in operating cash flow margins and affect project viability. Variances in actual metal production from budgetary forecast estimates can mean the difference between success (value creation) and failure (value destruction) for a heap leach project. Despite the importance of heap leaching for copper, gold and silver production worldwide, there are no clear standards or guidelines for developing heap leach metal production forecasts. There is considerable variation among copper and gold producers that apply heap leaching technology as to how such modeling and forecasting is applied at the operational level. There are a variety of different modeling approaches that can be utilized for this purpose. However, these vary in cost, complexity, time to implement, accuracy and credibility. This paper explores the options available for heap leach modeling, discusses the advantages and disadvantages of each approach, and provides guidelines/recommendations for an effective approach to modeling metal production at existing or planned heap leach operations. The paper also provides expected ranges of variation between actual and modeled production.Introduction and backgroundHeap leaching is fundamentally different from other methods used in the processing and extraction of gold, silver, and copper and other base metals. Considered globally, the technique represents a relatively modest portion of production compared with the primary technologies applied for copper and gold recovery. Approximately 21 percent of copper production is attributable to heap leaching techniques, as opposed to 79 percent by conventional crushing, milling, flotation, smelting and refining. For gold, about 9 percent of global production is obtained from heap leaching, compared with over 90 percent by various combinations of crushing, milling, gravity concentration, flotation and/or agitated cyanide leaching processes or, in the case of placer deposits, by direct gravity concentration and/or amalgamation. In cases where heap leaching is the primary source of metal production, the ability to accurately forecast metal production may be the difference between commercial success and failure for a project or operation. Heap leaching — of crushed or run-of-mine ore — is also commonly applied as a secondary process to treat lower-grade ores from a given deposit, such as at Chuquicamata in Chile, Cerro Verde in Peru and Bagdad in Arizona for copper extraction and at Twin Creeks and Carlin, both in Nevada, for gold. In such cases, heap leaching provides incremental revenue to supplement the primary process. Variances between actual and forecast metal production from heap leaching as a secondary process are typically tolerated and absorbed within the overall site metallurgical balance. In either case, accurate production modeling and forecasting creates significant value for heap leaching projects, is essential for managing production expectations — timing and volumes — and is likely to be a critical success factor for most heap leach projects."

Jan 1, 2017

By J King, T Hunter, R Coleman

"The industry that supports operations and new projects is suffering a rapid decline in the currently severely curtailed capital investment environment. This is evidenced by a decline in the number of skilled teams, who are now centred in fewer locations. Other features are an aging and retiring ‘Baby Boomer’ generation, coupled with a low uptake of new graduates and the uncertainty in predicting future capital expenditure programs and requirements. Combine this with a reluctance of cash-poor operations to modernise and adapt in an environment of low metal prices, and there is a real uncertainty in how service providers will meet industry needs as they evolve.The industry that supports operations and new projects is suffering a rapid decline in the currently severely curtailed capital investment environment. This is evidenced by a decline in the number of skilled teams, who are now centred in fewer locations. Other features are an aging and retiring ‘Baby Boomer’ generation, coupled with a low uptake of new graduates and the uncertainty in predicting future capital expenditure programs and requirements. Combine this with a reluctance of cash-poor operations to modernise and adapt in an environment of low metal prices, and there is a real uncertainty in how service providers will meet industry needs as they evolve.Trends amongst service providers will be put forward as well as developing options and alternatives. These embrace a whole gamut of agile alternatives in the areas of partnering, alliances, commercial and shared risk models and mutual innovations. These will be discussed with some case studies and suggested approaches.Particular emphasis will be upon brownfield expansions and upgrades which have emerged recently as a preferred lower capital and focused way to achieve best practical outcome at lowest cost. There are a number of specific features of such brownfields projects including the requirement for very close cooperation between the execution team, operators, maintenance and suppliers and a maximum usage of site resources and ingenuity. Often, required investment hurdle rates are high, downtime allowed is minimal and site resources usage is maximised. This requires mutual trust, good planning and high health, safety, environment and community (HSEC) standards and practice. In many ways the practices and skills needed are the exact opposite of the historical ‘big greenfields’ project with which the industry has been geared for more recently.Another developing area has been with innovative commercial models and practices. These have been as a direct result of the more challenging investment criteria being adopted and the relative hunger of service providers. It has become more common to look at these commercial/costing alternatives very early in the project cycle as an essential project tool and not just as a possible option. These commercial solutions cover such alternatives as leasing and rental, deferred payments, build–own–operate–transfer (BOOT) and build–own–operate (BOO), whole-of-mine preferred spares and maintenance terms, and aggressive performance targets with real assurance penalties. Once again this requires very close mutual dealings and trust, and sufficient time allocation compared to a conventional approach.Citation:Coleman, R, King, J and Hunter, T, 2016. Upgrades, Modernisations and Expansions... Where Will the Expertise, Capability and Skills Come from in the Future?, in Proceedings 13th AusIMM Mill Operators’ Conference 2016, pp 69–76 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Oct 10, 2016

By M McCarthy

Over the last six years Mandalay Resources has increased production rates and improved safety outcomes at its Costerfield mine in Victoria, Australia. This mine is an underground operation utilising narrow mining techniques to extract vertical veins, and produces up to 80 000 equivalent ounces of gold per annum, in both gold and antimony value.The operational challenges of narrow vein mining include controlling overbreak when veins being mined are only 300 mm wide. The mine has developed methods and modified equipment to suit extraction of these veins. Productivity improvements over the period have involved development of a stoping method and equipment to suit 1.8 m wide development drives. Over the last five years and during a skills shortage, recruitment, training and retention of personnel has been key to keeping corporate knowledge and skills to execute a careful efficient mining technique to minimise overbreak.Managing an underground operation close to nearby residents has unique challenges. Historically Victorian residents had family members work as underground miners; however, in the current day with few underground operations in this jurisdiction, community knowledge of mining has decreased. The Costerfield Operations are only 100 m from the nearest residence and the company values community engagement, partnership and investment with local Heathcote organisations.The mine has invested substantially in executive coaching of its leadership team early, which has paid dividends in problem solving potential of that team and ensuring the operation delivers on its promises to all stakeholders. The operation has become safer and employees are now more aware of their individual contribution in producing safe, efficient gold and antimony that benefit the whole operation, community and the region.CITATION:McCarthy, M, 2016. Costerfield – a narrow vein case study, in Proceedings International Mine Management Conference, pp 331-338 (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