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By Joseph A. Dos Santos

"The subject of this writing was first published in 1998 with the emphasis on the hardware cost comparison. Other costs, such as the required land area and spatial volume, were mentioned but not emphasized, as these were not deemed as important for new projects where the space was appropriated as required. During the last decade, these other costs have proven to be more than equal in importance. These costs are emphasized here through specific accounts of actual highangle conveyor installations that demonstrate the importance and the high-angle advantage An update on the progress in sandwich belt highangleconveyor technology is also provided.Origin and progress in sandwich belt conveyorsCover belts of the 1950s. Large volume, highangle conveying by “conveyors with cover belt, dates back to the early 1950s, when such systems were employed at the bucket wheel excavator boom conveyor in German lignite mines to increase the depth of cut without increasing the boom length. Various systems were developed, patented and built. These systems were not a lasting success for various reasons, which are noted by Rasper[1]. In his 1958 “Review of Cover Belt Systems,” Rasper summarizes the characteristics which are worth pursing and those that should be abandoned. The former are akin to good conveyor engineering. The sandwich belt conveyor model. The first sandwich belt conveyor model allowed calculation of the required hugging pressure to develop the bulk material’s internal friction and preclude material slideback. A modern, accurate version of the sandwich belt conveyor model is presented in Fig. 1. This model depicts accurately a derating of the material cross-section allowing an ample belt edge distance that can tolerate normal belt misalignment without material spillage. The calculations must thus recognize that only part of the hugging pressure is imparted onto the material with the remainder transferred belt edge to belt edge affecting a material seal. Mathematical development of the sandwich belt model is covered by Dos Santos and Frizzell in their 1983 article, “Evolution of Sandwich Belt High Angle Conveyors.”"

Sep 1, 2016

By Landy Stinnett

"When performing a valuation of a mineral property, a developing mine or perhaps an ongoing operation, the appraiser is typically provided with a range of information prepared by the property owner. This information can include ownership records, geological interpretation, assay data, an estimate of the reserves or resources believed to be on site (tons and grade), mine plans, production forecasts, capital and operating cost projections, and so forth.The appraiser familiarizes himself with the data, analyzes the various reports and then prepares the appraisal. There is usually a site visit, and there may be some effort at comparison of the particular mineral deposit with others in the region or with those of similar depositional characteristics, but for the most part, the appraiser is relying on the corporate documents, tempered by his/her experience in the field. Time is usually of the essence, the cost for the assignment has been trimmed, and therefore independent verification of the various components comprising the underlying data base (legal review, redrilling portions of the deposit, collection of new samples, re-assaying, etc.) is unlikely in most situations.In the case of high-value commodities — gold, silver, diamonds, perhaps the platinum-group elements — there have been numerous examples of the property owners attempting to increase the value of their holdings by nefarious methods. Most of these involve salting the deposit in some fashion; i.e., introducing small amounts of the commodity into samples being sent to a laboratory for analysis so that the resultant assay shows a higher grade (Donaldson, 2002; Greeley, 2001; Lechler et al., 2008 and Meech, 2001). Other schemes to enhance the apparent worth of a property include the use of nonstandard assay procedures, incorrect handling or withholding of the underlying information, and false reporting."

Sep 1, 2016

By Jorge Ganoza

El proceso del diseño de circuitos de molienda (SAG) en la planta de flotación de pórfidos de cobre, flotación de minerales polimetálicos o plantas de cianuración y minerales de oro y plata, implica energía que puede variar al procesar minerales blandos o duros. En este sentido, se buscan las operaciones que acepten el tratamiento de minerales duros en los circuitos de molienda y la clasificación del mineral de acuerdo a la dureza.

Sep 1, 2016

By Tim Arnold

"Justified is a show on FX that takes place in Kentucky coal country. The two main characters, a cop named Raylan and a criminal named Boyd, are adversarial to the very end, yet they manage to maintain a seemingly inexplicable bond of friendship through it all. The final episode ends (spoiler alert) with Boyd asking Raylan why that is. He responds, “If I allow myself to be sentimental, there is one thing I wander back to” Boyd responds, “We dug coal together.” Fade to black.What creates these types of bonds between friends and co-workers in mining? I don’t know about you, but many of my best friends I met in mining. Certainly the people I respect the most in this world are a part of our industry. Good, honest, honorable men and women. And I am not just talking about the leaders of our industry. I am talking about great miners who taught me how to do the right thing and also be productive.I have had the pleasure to work for some great people and the misfortune of working for some of the loudest screamers. What I consider the worst butt-chewing in my life may surprise you. I once worked for a man I respected, because he showed me respect. He went on a business trip and left some instructions. For some reason, I was able to justify to myself that they applied to everybody but me, and I disobeyed them. When he returned he called me into his office and said to me: “Tim, you pissed me off when you did that.” He said it quietly and with no anger. I had lost his respect. This devastated me more than any screaming shift boss ever could have. I learned a lot about values from that conversation.Most of us will spend more time at work than we will with our families over a lifetime. It is natural that tight bonds be created at work. What I believe makes mining special is that these bonds are so strong. They are strengthened by the incredibly hard work our miners do. They work at all hours, on holidays and in all sorts of extreme weather conditions. The physical demands of the job are sometimes exhausting. Our bonds are further reinforced because the work is dangerous. Not only does management watch out for the wellbeing of their people, but each and every one of us looks out for one another. The bonds are made tight because our people are so passionate about what they do, no matter the department or profession. Finally, they are strong because of the thousands in the industry that keep doing the right thing, every day. We make great friends in this industry because of the strength of character of our people. That is why Boyd and Raylan respected one another so much."

Sep 1, 2016

By Bruce Watzman

"Few issues are more important to the National Mining Association (NMA), the U.S. mining industry and NMA’s MINExpo International 2016 exhibitors than safety.Global mining safety and health is a journey necessitating continuous improvement, collaboration and innovation on the part of both mining operators and their suppliers.MINExpo 2016, which takes place Sept. 26- 28, 2016, in Las Vegas, provides attendees with the opportunity to view technologies to help refine management of mining safety and health, utilizing NMA’s CORESafety system. CORESafety ‘One of the best’Launched by NMA in 2011 and moving forward ever since, CORESafety is driving continuous improvement in safety and health performance among participating industry companies by shifting from a command-andcontrol regulatory approach to a risk-based systems approach built on the Plan-Do-Check-Act model (Fig. 1).Considered an exemplary safety and health management system, NMA’s CORESafety system helps mining operators change their approach to safety and health management by enhancing the safety and health culture throughout their organizations. Although it is challenging to consistently and completely control all the factors and variables occurring in daily mining operations, experience has shown that applying systematic controls to as many variables as possible is the most successful approach for improvement in mining safety and health.When embarking upon the development of the CORESafety framework, NMA’s leadership set an ambitious goal to eliminate fatalities and reduce the injury rate 50 percent in five years, or the “0-50-5” goal. While the goal has not been met yet, the steady progress has been extraordinary with fatalities among participating companies dropping 45 percent during the period 2011-2015 (Fig. 2). Data also demonstrate that, as participating companies increase their level of implementation, total injury rates have also declined (Fig. 3).In a September 2015 interview with NMA, Penn State University mining engineering Professor Jeffrey Kohler praised CORESafety as “an inspired and timely program that brings together key elements to achieve safety and health goals.”"

Sep 1, 2016

By William Gleason

"It is the largest mining exhibition in the world that attracts thousands of attendees from around the world to Las Vegas, NV once every four years. Despite the recent struggles in the mining industry, MINExpo International 2016 promises to be as big as ever. In the following pages, Mining Engineering takes a look what some of the more than 1,800 companies plan to showcase during the three-day exhibition.CaterpillarCaterpillar will support MINExpo 2016 with an exhibit showcasing machines, technology, expertise and practical knowledge that miners can apply to help address their cost, productivity and efficiency challenges in today’s mining environment.Caterpillar will once again occupy the largest space at the event and will showcase both surface and underground machines, but the talk at the booth will focus on how Cat technology and know-how combines to help mining operations address and solve the issues that are most important to them. The main stage in the exhibit will feature presentations describing how mining companies, Cat dealers and Caterpillar work together to improve operations.“The challenge for all in the mining industry now is to optimize operations — to drive costs down while creating sustainable businesses that can weather downturns,” said Caterpillar Resource Industries group president Denise Johnson. “We believe that through our expertise and the knowledge of our dealers —combined with innovative technologies and our growing data analysis capabilities — we can help them not only survive, but thrive in these challenging times.” Johnson was selected by the National Mining Association (NMA) to chair MINExpo 2016. “Chairing this show is a great honor, and it’s a testament to Caterpillar’s partnership with this critical industry,” she said. “We’re proud to be a long-time supporter of the NMA, and we are excited to participate in another MINExpo. It’s an opportunity for us all to learn from each other how to increase productivity, control costs and improve overall operations.”Surface mining displays. The surface mining section of the Caterpillar exhibit will showcase the new MD6420C rotary drill. This is autonomy ready and optionally equipped to leverage the safety and productivity benefits of Cat MineStar Terrain. This high-precision drill management system optimizes utilization and improves drilling and blasting operations by accurately guiding the operator and improving precision of hole placement and drilling depth — and the next step is fully autonomous operation, Command for drilling. The third-generation drill incorporates proven Cat components throughout for superior reliability and durability."

Sep 1, 2016

By M. P. Smith, C. Hughes-Narborough, Y. T. Man

"Money and reputations can be lost in bad projects. Causes of bad mineral processing projects include poor contract definition and purchase of equipment without adequate test work. However, the root cause of many of the problems that can lead to bad projects is not any inanimate object, bad weather or catastrophic natural event but the people working on the projects. Because the people are so critical to the success of a mineral processing project, one must have suitably qualified and experienced people (SQEP) in all key positions. Characteristics that define SQEP include people who have successfully executed projects of similar size before; have undertaken projects treating the same minerals and producing the same valuable products and people who are familiar with designing, operating and implementing the required technologies and unit operations.To minimize the likelihood of future bad mineral processing projects, five recommendations are put forward in relation to the people aspect of a project.1. Attempt to retain SQEP during any down turn in the mining economic cycle so thatthe knowledge and experience can be kept within the industry.2. Increase the effort in attracting young people into the industry and retaining them.3. Set up robust training program to give young professionals a firm foundation of what real life projects and operations are like.4. Provide mentoring and continuous training for people after they have completed their formal graduate training program. Their career progression should be appropriately monitored and controlled.5. People working in projects must be exposed to as many detailed design and other finer issues as possible so that they can comprehend the amount of work required to deliver a project successfully."

Aug 1, 2016

By William Gleason

"There are signs that the commodity downturn that has battered the mining industry for the past five years is beginning to ease up. As the dust begins to settle and mining companies begin to take stock of the battle, Newmont Mining Corp. will be one that is standing strong with just a few scrapes and bruises thanks in large part to the leadership of president and chief executive officer Gary Goldberg and his right hand man and chief operating officer, Chris Robison.As he closes in on retirement (for a second time) Robison, a third-generation miner from Nevada, took time to speak with Mining Engineering about a 33-year career in which, among other things, he is credited with not just helping Newmont survive the turbulent times but with steering the company to a safer, more productive and more profitable heading.“I think we did it better than anyone else,” Robison said when asked how the company fared during the past five years. “We didn’t talk about it a lot, we just put together a strategy and we delivered.”What Newmont, the world’s second-largest gold mining company by production, delivered since Robison took the position of chief operating officer in 2013 are improvements in costs, porduction, projects and safety.Operating under the mantra of “live within your means,” Robison was pulled out of retirement from Rio Tinto and into a challenging situation at Newmont. The price of gold was in a nose dive from a high of nearly $58/g ($1,800/oz) and heading to levels closer to $38.60/g ($1,200 oz).“Newmont is a big ship that can’t be turned, but has to be steered,” said Robison. “We recognized that we had to set a new course. The direction the ship was going was great for $1,600 to $1,800/oz gold but we were chasing ounces.”Like the rest of the gold mining sector before the falling gold prices, Newmont was focused on volume and was looking for gold wherever it could be found. The slogan at Newmont in 2011 was “7 million ounces a year by 2017.”When Robison came on board it was a different reality.“We had to begin focusing on value over volume as the cornerstone of Newmont going forward,” he said."

Aug 1, 2016

By John O. Marsden

"This article is an attempt to capture a presentation given at the 2016 SME Mineral & Metallurgical Processing Division (MPD) Luncheon held on Feb. 24, 2016, in Phoenix, AZ. It was presented as a tongue-in-cheek, lighthearted view of several of the issues facing our industry, while identifying some of the challenges and opportunities available to new engineers entering the industry today.Disclaimer• What you are about to read includes personal preferences, biases and occasionally arbitrary opinions.• Some readers may have dissimilar opinions on the contents and/or the rank order of the lists.There are eight top ten lists offered in this article: (1) Industry realities (2) Things a metallurgical or mineral process engineering graduate should do (3) Books every metallurgist should have on their shelf (4) Things I wish I had known (5) Legends of metallurgy (posthumous, with highlights) (6) Things we’ve forgotten (7) Mineral processing innovations of the past 20 years and, finally, (8) The future? For some items, additional context or clarification is provided after the item, while for other items no further explanation is warranted and none is offered. Top 10 industry realities1. Metal price cycles.2. Bigger is better (except when it isn’t).3. Ore grades declining across the board of metals/commodities.4. Ores becoming more complex.5. Three-fold increase in capital costs between 2004 and 2015.6. Three-fold increase in operating costs between 2004 and 2015.7. Less capital availability/challenging financial markets.8. Environmental constraints increasing.9. Socio-political constraints increasing.10. The mine manager is always impossible to work with.As Table 1 shows, there was more than a three-fold increase in gold operating costs between 2004 and 2014. The increases for copper, iron ore and other commodities were similar."

Aug 1, 2016

By Bob Miller

"All industries have parts and equipment that are exposed to some type of destructive wear. Hardfacing is a cost-effective tool that will minimize wear and increase service life. At first glance, hardfacing can be confusing and troublesome. In reality, it is not.Postle Industries, a manufacturer of hardfacing products, has found that the 22 answers to frequently asked questions may help operators select hardfacing products that are most appropriate for their application. The first 10 questions are addressed in these pages, the full list can seen at Mining Engineering online under the Web-Only Content section.1. What is hardfacing?Metal parts often fail their intended use not because they fracture, but because they wear by abrasion, impact, metal-to-metal contact or some other form of wear, which causes the parts to lose dimension and functionality. Hardfacing, also known as hard surfacing, is the application of a buildup or wear-resistant weld metal onto a part’s surface by means of welding to extend the life of the part. The weld metal may be applied as a solid surface or in a pattern, such as a waffle pattern, herringbone or dot pattern, etc.Hardfacing is becoming increasingly important for many industries to protect equipment that is exposed to wear and abrasion including parts used in mining, earthmoving and construction, oil and gas drilling and steel making and forging. Extending the life of wear parts can save thousands of dollars and improve productivity. Hardfacing can be used to recondition parts that have already been exposed to wear and have lost their useful life, or used in the manufacture of new parts to improve their life before they are put into service.There are three main types of hardfacing applications:• Build-up or rebuilding.• Hardfacing or overlay.• A combination of build-up and overlay.2. What base metals can be hardfaced?Carbon and low-alloy steels with carbon contents of less than 1 percent can be hardfaced. Medium carbon and low-alloy steels are very common since they provide higher strength than mild steels and better abrasion resistance. High carbon alloys may require a special buffer layer.The following base metals can be hardfaced:• Stainless steels.• Manganese steels.• Carbon and alloy steels.• Cast irons.• Nickel-base alloys.• Copper-base alloys."

Aug 1, 2016

By J. D. Noll, J. A. Organiscak, A. B. Cecala

Significant strides have been made in optimizing the design of filtration and pressurization systems used on the enclosed cabs of mobile mining equipment to reduce respirable dust and provide the best air quality to the equipment operators. Considering all of the advances made in this area, one aspect that still needed to be evaluated was a comparison of the efficiencies of the different filters used in these systems. As high-efficiency particulate arrestance (HEPA) filters provide the highest filtering efficiency, the general assumption would be that they would also provide the greatest level of protection to workers. Researchers for the U.S. National Institute for Occupational Safety and Health (NIOSH) speculated, based upon a previous laboratory study, that filters with minimum efficiency reporting value, or MERV rating, of 16 may be a more appropriate choice than HEPA filters in most cases for the mining industry. A study was therefore performed comparing HEPA and MERV 16 filters on two kinds of underground limestone mining equipment, a roof bolter and a face drill, to evaluate this theory. Testing showed that, at the 95-percent confidence level, there was no statistical difference between the efficiencies of the two types of filters on the two kinds of mining equipment. As the MERV 16 filters were less restrictive, provided greater airflow and cab pressurization, cost less and required less-frequent replacement than the HEPA filters, the MERV 16 filters were concluded to be the optimal choice for both the roof bolter and the face drill in this comparative analysis case study. Another key finding of this study is the substantial improvement in the effectiveness of filtration and pressurization systems when using a final filter design.

Aug 1, 2016

By Daniel M. Flanagan

"Editor’s note: Each year, Mining Engineering features an industrial minerals review. Several people put in a fair amount of time in developing the material for this issue, all the while doing their own jobs. Thank you to the industrial minerals annual review editor, to the Industrial Minerals & Aggregates Division technical committee chair and vice chairs, and to the authors of the individual commodity profiles. Jim Norman, member SME, of Tetra Tech, is the industrial minerals annual review editor.Joe Garska, member SME, of Imerys, is chair of the Industrial Minerals &Aggregates Division’s Technical Committee.The technical committee vice chairs include:• Hyunjung Kim, member SME, of Chonbuk National University, agricultural materials.• Xihui Lin, member SME, of Kemira, ceramics and refractory materials.• Nikhil Gupta, member SME, of Virginia Tech, chemical raw materials.• Adam Rodriquez, member SME, of Penn State, construction aggregates.• LeDeana Roberts, member SME, of Imerys, fillers and pigments.• Harsha Kolla, member SME, of ChemEOR, sorbents, filters and process aids.• Edgar Blanco, member SME, of FLSmidth, specialty minerals.Their help makes possible this July industrial minerals issue. On behalf of ME readers, the editors thank them.During the past 25 years, U.S. ball clay production (the quantity sold or used by domestic producers) increased from 788 kt (869,000 st) in 1990 to an alltime high of 1.31 Mt (1.44 million st) in 2003 (Fig. 1). Housing construction within the United States, a leading market for ball clay-based ceramics and sanitaryware, began to decline in 2005, which resulted in a considerable decrease in sales of ball clay that continued through the 2008-2009 economic recession. After bottoming out at 831 kt (916,000 st) in 2009, ball clay production steadily increased through 2015 (Fig. 1). Estimated sales in 2015 were 36 percent higher than those in 1990 and 18 percent lower than those in 2003.Four companies (H.C. Spinks Clay Co., Imerys S.A., Old Hickory Clay Co., and Unimin Corp.), mined ball clay in five states during 2015. An estimated 1.7 Mt (1.18 million st) of ball clay valued at an estimated $47.5 million was sold or used by U.S. producers, a 4-percent increase from 1.03 Mt (1.14 million st) valued at $45.2 million in 2014. Approximately 65 percent of total ball clay production was air-float, 25 percent was crude or shredded and 10 percent was water-slurried"

Jul 1, 2016

By William Gleason

"In a time that seems to be dominated with nothing but bad news coming from the mining industry, there is a success story that has been quietly happening in Southwestern Wyoming for more than 60 years, and it is one that is likely to continue for many decades to come.Beneath the wind swept high desert plains of Sweetwater County, WY, about 32 km (20 miles) west of Green River, lies the Green River Basin where five companies, including Tata Chemicals North America (TCNA), are mining the world’s largest known deposit of trona and, in turn, are collectively producing 15.3 Mt/a (17 million stpy) of soda ash.“We have a long-term growth story that has been, and will continue to be a steady earner for many years to come,” said J. Martin Keighley, managing director of TCNA who has been in charge of the mine, formerly known as General Chemical Industrial Products Inc., for Tata Chemicals for about three years.According to the U.S. Bureau of Land Management (BLM), Keighley is safe with his prediction of future success. The BLM estimates that there are enough reserves in the Green River Basin to last another 2,000 years. Currently, four trona beds in the Green River Basin are being mined and in all, there are 25 major trona beds that occur within the Wilkins Peak Member of the Upper Eocene Age Green River Formation. The trona deposit as a whole covers about 2,500 km2 (1,000 sq miles) within the Green River Basin.And imagine, this economic mainstay in the region was discovered accidently.Prior to 1948, soda ash, the salable commodity that comes from trona and is used in a host of products including glass and detergent, was produced synthetically. In 1938, an oil and gas exploration team working in the Green River Basin came away with a find that would change the soda ash industry and the physical and employment landscape of southwestern Wyoming forever. Within 10 years, the communities of Green River and Rock Springs, which were built largely on the back of coal mining and railroads, had another commodity beneath their feet."

Jul 1, 2016

By S Carr-Cornish, K Moffat

Social licence to operate is developed and kept through managing both operational impacts and the relationship between local community and company. However, CSIRO research has demonstrated that in determining how accepting community members are of a mining operation, relational factors, such as procedural fairness and trust, are much more important than operational impacts, such as impacts on employment and the environment (Moffat and Zhang, 2015). Companies seek to develop relational factors through their engagement with local community; such engagement has many aspects, including, initially identifying stakeholders and positioning the company as part of the local community (Lacey et al, in prep; Thomson and Boutlier, 2011). These relational factors involve the social identities of people living in the community. Social identities are a part of people that shape their beliefs, based on their connections with various groups in their lives (Hogg et al, 2004).An engagement process, intentionally or not, inevitably interacts with the social identities of stakeholders (Crane and Ruebottom, 2011). For example, traditionally, at the very beginning of engagement processes, community members are assigned to categories using conventional stakeholder mapping and categorisation methods, often based on assumptions about stakeholders’ interests, which equates to assumptions about stakeholders’ social identities (Colvin, Witt and Lacey, 2016; International Council on Mining and Metals, 2012). Yet, there has been limited empirical inquiry into whether such categories reflect the social identities of stakeholders and if there is a bearing on relational factors, including, the perceived fairness of consultations and trust in mining companies (Crane and Ruebottom, 2011). Also at this time, companies commonly seek to create a presence in communities, for example, joining Chambers of Commerce and participating alongside community members. Again, there has been limited empirical inquiry into whether community members and companies identifying with the same overarching group and thus sharing aspects of social identity, influences relational factors (Crane and Ruebottom, 2011). In this study, we examined the effects of changing aspects of social identity by changing how stakeholders were identified and companies were positioned, on how stakeholders’ perceived a new mining operation, specifically how they perceived the procedural fairness of the proposed consultation process and trusted the company, two factors that underlie a company’s social licence to operate.CITATION:Carr-Cornish, S and Moffat, K, 2016. Out of the box – the power of social identities in engagement processes, in Proceedings Life-of-Mine 2016 Conference, pp 180–182 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 28, 2016

By T W. C Stambolie

Longwall mining is a form of underground mining and the principal extraction method for underground coal mining in Australia. The method is used in the mining of both thermal and metallurgical coal. The primary market for thermal longwall mines is that of the export market where price is governed against the Newcastle Thermal Benchmark index (globalCOAL, 2016).Australia’s thermal coal export outlook is considered moderate due to slower demand from major importing countries, as well as slowing domestic production. However, ‘Australia is projected to increase its share of world thermal coal exports and become the world’s largest exporter over the medium term as lower prices, increased domestic use and infrastructure constraints limit growth from other key suppliers’ (Office of the Chief Economist (OCE), 2016, pp 25, 58). On the contrary, and as a result of current global coal price trends, the basic economic principles of underground longwall coal mining are heavily stressed. From a life-of-mine perspective, influencing return on investment is at its greatest during project evaluation and execution. Appropriate and realistic economic assessment is paramount to ensuring the right outcomes are achieved under the current economic challenges.CITATION:Stambolie, T W C, 2016. Thermal coal industry – is longwall mining currently a life-of-mine option in Australia?, in Proceedings Life-of-Mine 2016 Conference, pp 57–61 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 28, 2016

By M L. Cramer, N P. Wines

"On 9 February 2014, bushfire embers landing on exposed coal in a disused pit at the Hazelwood mine in Victoria’s Latrobe Valley ignited a coal fire that burned for 45 days. The fire was the largest and longest burning mine fire to occur in the Latrobe Valley (Hazelwood Mine Fire Board of Inquiry, 2016). Two Victorian Government Boards of Inquiry have been held into the Hazelwood mine fire. The most recent, in 2015, included consideration of the regulation and implementation of rehabilitation practice at Hazelwood and the other two brown coalmines of the Latrobe Valley (Loy Yang and Yallourn; Government Gazette, 2015).The 2015 Hazelwood Mine Fire Board of Inquiry commissioned Accent Environmental Pty Ltd (Accent) to undertake a review of the financial mechanisms for mine rehabilitation and closure adopted in Australia and overseas (Accent, 2015). Specifically, Accent was engaged to identify ‘any practical, sustainable, efficient and effective alternative mechanisms to ensure rehabilitation of the mines as required by the [Victorian] Mineral Resources (Sustainable Development) Act 1990’ in accordance with Terms of Reference 10 (c) (Government Gazette, 2015).The review by Accent included consideration of a range of financial instruments such as bank guarantees, trust funds and insurance. It considered a number of financial assurance systems in operation in Australia, New Zealand, the European Union, Canada and the United States. These systems included: full and discount financial assurance systems predefined liability proportion systems pooled fund systems the use of post-closure financial mechanisms such as trust funds (Accent, 2015).What lessons can be learnt from other jurisdictions? Are there financial mechanisms already in place that could allow the Victorian Government and the mine operators to manage the risk of rehabilitation default3, lower rehabilitation liability, attain site rehabilitation objectives and allow eventual site relinquishment?CITATION:Cramer, M L and Wines, N P, 2016. Global lessons for a local problem – rehabilitation bonds and Victoria’s Latrobe Valley coalmines, in Proceedings Life-of-Mine 2016 Conference , pp 24–27 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 28, 2016

By D Trembath

"One of the key risks to the success of a mining operation is the accuracy of the estimates of both the economic mineral and any accompanying contaminants contained within the ore reserve. Misrepresenting the mineralogical characteristics of the ore reserve can result in considerable financial investment in an operation that is in fact uneconomic and/or carries a significant environmental risk. This in turn can result in an unplanned closure of the operation with associated financial, environmental and social legacy. One way to minimise this risk is to undertake high density resource sampling to gain a better understanding of the resource characteristics. However, such an approach is expensive, time-consuming and often impractical. The risk of not having an accurate model is typically assessed during a feasibility study utilising a Monte Carlo simulation method or some form of sensitivity analysis. Importantly, the error margins used in these types of analyses are often based on subjective or very general criteria such as ‘professional judgement’ or an ‘industry standard’. This presentation introduces a conditional simulation method for developing a range of mineralogical distribution models. Based broadly on the method outlined in Journel and Kyriakidis (2004) the proposed approach develops this work further. It combines a geostatistical analysis of the available data with automated mine design software to provide a rigorous method for assessing the confidence in the mineralogical characterisation of the ore reserve. The process is based on simulating possible mine plans based on the statistical characteristics of the available resource sample data. These plans are then assessed against high resolution resource models generated using a Sequential Gaussian Simulation method. The outcome is confidence intervals for important characteristics of the ore reserve estimate relative to the actual resource. These confidence intervals are an objective and transparent measure important for assessing closure risks and represent an improvement over common practice.CITATION:Trembath, D, 2016. A simulation approach for improving the assessment of closure risks, in Proceedings Life-of-Mine 2016 Conference , pp 36–38 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 28, 2016

By N Boughen, K Moffat, L Brooks, A Zhang

In 2015, Ernst and Young (EY) ranked socio-political license to operate (SPLTO) as the fifth greatest challenge to the mining sector (EY, 2015). The EY report asserts that SPLTO will continue to present a risk to the mining sector in the context of ‘increased activism, digitally connected stakeholders and politicians who need to respond to general consensus’. While there is no consensus on a definition, SPLTO is commonly regarded as the ongoing acceptance or approval of an operation by affected stakeholders (Moffat and Zhang, 2014; Thomson and Joyce, 2008) as well as those stakeholders that can affect the operation (Graafland, 2002). Warhurst (2001) relates the process of stakeholders granting SPLTO to the establishment of meaningful partnerships between operations, communities and government based on a variety of factors that build trust between stakeholders.From these accounts, we can see that understanding stakeholder attitudes about company performance and impacts on stakeholders directly affected by an operation are important in any attempts to measure SPLTO. Understanding the level of acceptance of an operation within these stakeholders provides a good proxy or outcome measure of SPLTO. Moreover, trust seems to be a central variable in the translation of these experiences of an operation into acceptance. What the mine or company does, its behaviour, degrades or builds trust with stakeholders, and this then affects acceptance (Moffat and Zhang, 2014).In addition, a strong emphasis is placed on the nature of the relationship between companies and stakeholders as influenced by inter-group interactions. It is not just what companies do well or poorly with respect to environmental impacts, for example, that will determine trust and acceptance, but how the company relates to its stakeholders at personal and group levels.These relationships between communities of stakeholders and extractive companies are dynamic. Brown and Fraser (2006) recognised the importance of industry being able to respond to the changing nature of societal approval and acceptance, arguing that ‘business must have regard for evolving social attitudes and expectations if it is to maintain its ‘social licence’’.This paper will describe a series of five pilot projects conducted by CSIRO with Anglo American in Australia and South Africa to generate a real-time understanding of SPLTO to guide more reflexive and effective social performance strategies.CITATION:Moffat, K, Boughen, N, Brooks, L and Zhang, A, 2016. Social licence in real-time – using dynamic methods to support a new kind of community relationship, in Proceedings Life-of-Mine 2016 Conference, pp 191–194 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 28, 2016

By J A. Braithwaite

Social licence to operate is not a new concept for the mining industry, referring to stakeholder approval or acceptance for the activities and impacts of a project, company or industry. It is intangible, dynamic and non-permanent, hence it needs to be earned and then maintained (Thomson and Boutilier, 2014). It has also been argued that social licence extends beyond building approval or acceptance, into engagement for long-term development (Owen and Kemp, 2012).There are many examples where stakeholder opposition – or withdrawal of social licence – have increased capital and operating costs, extended schedules and impacted reputation. At its extreme, the withdrawal of social licence to operate can also contribute to or be the catalyst for mine closure.The key benefit of obtaining a social licence is a reduction of risk. Stakeholder support and advocacy, as well as the implementation of social performance programs that contribute to social licence, can be beneficial in terms of schedule, costs and other benefits.While decisions to close a mine are generally driven by resource availability or economic conditions, the social, economic and environmental legacy remaining post-closure is of importance to many stakeholders. With a number of significant mines now approaching closure within Australia, we are seeing heightened community concern about the economic and social impact of mine closure and the success of land rehabilitation. So how does the concept of social licence to operate extend into the closure phase of the mining life cycle?CITATION:Braithwaite, J A, 2016. Social licence to close?, in Proceedings Life-of-Mine 2016 Conference, pp 176–179 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 28, 2016

By H von Blottnitz, A C. Keith

The influence of the life of a mine extends beyond its immediate vicinity both in geographic and temporal terms. Decisions around mine approvals are generally made based on economics, for the mine owner and immediate environmental and social impacts by governments and communities. The value from life-of-mine planning can also be viewed in a holistic frame across the entire value chain from mine to product user. This research examines the Carmichael Coal Mine in light of the holistic benefits and impacts along its value chain from the mine to relieving the lot of energy poor in India.CITATION:Keith, A C and von Blottnitz, H, 2016. Can Australian coal alleviate energy poverty in India – a case study, in Proceedings Life-of-Mine 2016 Conference , pp 52–56 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 28, 2016