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By V. Montaruli, A. Nieto, M. Cardu

Nickel is a metal whose workability and mechanical strength at high temperatures and in corrosive environments makes it an indispensable alloying element for the realization of stainless steel, specialty steel, super-alloys, rechargeable batteries and electroplating. Because its main fields of application are key to the development of industry and, thus, to society, nickel has recently been recognized as a potentially critical mineral, despite its abundant reserves. The purpose of this paper is the creation of possible case scenarios determined by factors and events that, in the medium to long term, could change the current structure of the nickel market on the demand and/or the supply side. Four scenarios have been determined by considering a demand variation due to the occurrence of a natural disaster and an aerospace plan implementation and taking into account the resource nationalism and the skills shortage as supply varying factors. Through the creation of a georeferenced global nickel database, the paper proposes supply strategies related to the four scenarios for each top nickel consumer: China, India, European Union, United States and Japan.

Jan 1, 2013

By A. Lashgari, V. Kecojevic

This paper presents research on the environmental impact of digging and loading equipment used in surface coal mining. Environmental impact was assessed through the measurement of equipment exhaust and dust emissions, and sound level. In this study, exhaust emission refers to carbon dioxide (CO2), carbon monoxide (CO), nitrogen oxides (NOx), sulfur oxides (SOx) and volatile organic compounds (VOCs). Dust generation refers to fine particles (PM2.5), inhalable particles (PM10) and total suspended particulate matter (TSP). Sound level refers to the sound pressure level at different distances from the equipment. Modeling of the environmental impact of digging and loading equipment was conducted using the Microsoft Visual Studio.NET software package. This research was a part of a broader project involving the development of a software system for the selection of productive, cost-efficient and ecofriendly mining systems, sponsored by the Appalachian Research Initiatives for Environmental Sciences (ARIES). This research may assist mining professionals in quantifying the environmental impact of digging and loading equipment, and developing strategies for reducing the overall impact of such equipment in surface mining.

Jan 1, 2013

By A Chadwick, J de Ross, C Adams

Imagine a æshinyÆ new mine, $1 B in the bank and record commodity prices. So how does a company and its management team create enough tension to maximise profit and to establish a culture that can weather the good and bad times?That was exactly the situation the team at OZ MineralsÆ world class Prominent Hill mine in South Australia faced in 2009.Three years later, the harder times have come - lower though still healthy commodity prices, rising industry costs, fierce competition for talent, geological and technical issues (common to developing mines). However, the company was able to maximise profit during the good times and equip the culture to deal with the tougher times with minimal turnover.Through the combination of simple systems and processes, people development, application of commercial technical acumen and a combination of yin and yang leadership, OZ Minerals has achieved something quite rare - sustainable continuous improvement.The journey started with a vision. The EGM Operations created the æsparkÆ. The dream was to create a æfranchise mineÆ that could be rolled out to new mines and acquisitions as the company grew. However, the real leadership came from his lieutenants who provided the important yin and yang. The GM commercial provided the tools, processes, systems and the bottom line focus. The GM operations focused on culture, leadership, training and sustainability. This powerful combination (along with some good old persistence) was able to create the critical mass required to make continuous improvement go æviralÆ.This paper explores this unique case to uncover the essential ingredients that were created and mixed together. It will touch on the key human, technical and system elements that helped achieve significant improvements in plant recoveries, mine throughput and operational efficiencies, while overcoming human capacity, geotechnical and contractual challenges.CITATION:de Ross, J, Chadwick, A and Adams, C, 2012. How to create a perfect storm, in Proceedings International Mine Management 2012, pp 239-250 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 20, 2012

By G Malherbe, J Gonzalez, D C. Franklin, J Bassan, C T. Farrelly

To respond to ever-increasing challenges, mining companies have been experimenting with new business models and technologies in order to speed mine development, production, processing and transport. The various experiments involve mobile access to data, intelligent sensors, advanced analytics, virtual collaboration, virtual reality, automated equipment, remote operations centres and strategic partnerships. A synthesis of all these components creates a ænetwork effectÆ that can dramatically improve the overall effectiveness the entire operation. The concept of the Network Centric Mine borrows from a variety of industries, including defence, aerospace, aviation, petroleum, utilities and manufacturing. Central to the concept are improvements to the way we connect people, process, information and technology, resulting in a more highly collaborative business model, with roles and processes designed to take advantage of new technology. The components of the mining operation act as a connected network aimed at a common goal, regardless of the boundaries of organisation and location.The design of this new organisational ecosystem needs to take into account the recent advances that enable the æplug and playÆ integrated collaborative environment, including cloud computing, mobile devices and social networking, as well as advances in augmented reality, robotics, geo-location, digital labelling, simulation and analytics. However, the most consistent lesson from other industries is the need to properly enable the behaviour and process changes necessary for success.Benefits from adopting a network centric approach include the more effective use of scarce expertise, improved data and information analysis, reduced process variance, and more informed and faster decision-making. The future of mining will see more technology savvy workers who will drive the adoption of new processes. The operations will shift from a relatively static and disparate set of functions, to a digitally aware, dynamic, automated, integrated and interactive environment, with increased agility, lower operating costs, higher productivity and improved safety.CITATION:Farrelly, C T, Malherbe, G, Gonzalez, J, Bassan, J and Franklin, D C, 2012. The network centric mine, in Proceedings International Mine Management 2012, pp 143-160 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 20, 2012

By D Cliff, K Bailey

Traditionally occupational health and safety (OH&S) has been managed for the direct benefits of reducing injury and illness to workers on mine sites. In the current skill shortage climate it is important to recognise the value that OH&S management can have in assisting mines in minimising their exposure to this issue. In times of skills shortage turnover is high as mines poach personnel from each other. This leads to loss of corporate knowledge and loss in productivity through the need to train new personnel in mine-specific operating procedures. In addition absenteeism can significantly disrupt production as there may be no ready replacements available for key jobs. Pressure will be placed upon workers to remain at work even though they are not completely fit for work, leading to presenteeism and consequently loss in productivity. In addition to the threats to routine operation, the loss of management and professional staff can significantly increase catastrophic risk through loss of experience and corporate knowledge. There is increased pressure to focus on events that occur regularly in the here and the now and underestimate the rare, or unlikely, events.The theme of this paper is that by properly addressing OH&S management at mine sites, companies can minimise their exposure to these problems. Put simplistically, a safe and healthy mine is a sustainable and productive mine. Case studies and relevant literature will be used to support this premise.CITATION:Cliff, D and Bailey, K, 2012. Health, safety and sustainability, in Proceedings International Mine Management 2012, pp 53-58 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 20, 2012

By R Russell

The relative infrequency of fatalities and other serious events can give them an appearance of being random, of being beyond any reasonable degree of anticipation and prevention. In fact, the vast majority of these events result from exposures that are identifiable, measurable, and manageable. The lessons of prominent incidents, such as the Space Shuttle Columbia, OxyÆs Piper Alpha, Esso Longford, BP Texas City, Massey Mine, as well as lessons from single fatality events, is that alongside the proximate causes of each incident, there also coexisted an underlying fabric of systems, mechanisms, and culture that allowed risk in the workplace to persist and often to become normalised. All of these ingredients of the organisationÆs safety fabric lend themselves to the influence and intervention of senior leaders. The difficulty is that traditional injury prevention paradigms are not sufficient for addressing the precursors that lead up to catastrophic and fatal events. A recent study of such events, led by Dr Thomas Krause concluded that the descriptive aspect of HeinrichÆs safety triangle is useful, but that the predictive aspect is not. The study surfaced reasons why a reduction in less serious injuries does not necessarily correspond to a proportionate reduction in catastrophic and fatal risks. This presentation expands on the findings to include the concept of exposure to the event potential linked to precursor events and the framework for leading an organisation to be both cognisant and effective in eliminating such events.CITATION:Russell, R, 2012. Shifting the cultural paradigm for the prevention of catastrophic and fatal events, in Proceedings International Mine Management 2012, pp 91-96 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 20, 2012

By H Jones

Closure cost estimates may be generated at any stage of a mining operationÆs life; commencing with the initial prefeasibility studies and continuing through to the final decommissioning cost estimates. However, not all mine closure cost estimates are necessarily the same. Cost estimates will vary depending on the purpose for which they are prepared, the organisations requiring or undertaking the estimate and the stage of the mining operation. Different organisations can legitimately arrive at disparate cost estimates for closing the same mine because the organisations have different reasons for requiring the estimates. Another, equally valid, reason for potentially wide variations in cost estimates by different organisations on the same mine site is the different definitions of æclosure costsÆ used by different estimators. This paper considers the different approaches by different organisations including operating companies, government authorities and financial organisations and uses a hypothetical example based on practical experience to illustrate some of these differences in estimation methods.The paper suggest that a more consistent approach to closure cost estimating in the Australian mining industry would assist mining companies, governments, the accounting industry and the broader community to better understand this complex component of mine planning. One possible approach to closure cost estimating is briefly outlined.CITATION:Jones, H, 2012. Closure cost estimation - All things to all men?, in Proceedings International Mine Management 2012, pp 115-124 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 20, 2012

By J Coombes

Within the mining industry there is a growing trend of placing inexperienced technical people into positions of responsibility beyond their readiness. Their responsibilities often include providing the fundamental basis for decision-making: the resource model or even the daily grade control estimates. Whilst software continues to make the processes more accessible, the thinking and rationale for selecting parameters still requires control rather than auto-piloting. Operators run these systems in virtual isolation, and have limited immediate access to experts. Beyond the stress of the professional burden are the increased risks to the mining operations and overall project success.While many experienced experts recall being thrown in the deep end, the relative isolation from experts coupled with the gravity of professional burden before readiness, is less familiar. Many recall in intimate detail the experts who gave them direction, assisted them along the way and even helped them claw out of inadvertent mistakes. Experienced professionals all have a responsibility to enable capability across the generations, to ease the burden and to mitigate the risks.This paper provides an outline of how mentoring as an on-the-job professional development process can be structured to more fully enable success of a mentoring program. Three examples complement the principles presented.CITATION:Coombes, J, 2012. Structuring meaningful mentoring, in Proceedings International Mine Management 2012, pp 15-22 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 20, 2012

By G Campbell-Cowan

Much has been written about the fact that most transformation efforts disappoint. This paper addresses factors that should be taken into consideration in planning and implementing transformation programs to ensure success.In 2009, St Barbara commenced a transformation program to address issues of chronic poor quarterly operational performance; financial pressure caused by the unreliable operational performance; and an inability to develop business plans with integrity and to reliably deliver on the plans. As a result of a number of years of disappointing operational performance, St BarbaraÆs culture was not conducive to business success.This paper uses lessons learnt during St BarbaraÆs transformation program to highlight key characteristics of change programs that can generate significant sustainable benefits. While there were many benefits from the transformation program, the most significant impacts of St BarbaraÆs program have been transformation of the companyÆs culture and capability of people as business leaders; the establishment of a business systems framework to guide the design and development of systems; and developing support functions, for example centralised procurement and supply chain, business improvement and technical services.CITATION:Campbell-Cowan, G, 2012. Business transformation - Lessons learnt for successful change, in Proceedings International Mine Management 2012, pp 135-142 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 20, 2012

By I Thomson, L D. Black, R G. Boutilier

The social license to operate (SLO) began as a metaphor for the ability of communities to stop mining projects. Soon people began to speak of levels of social license and the ability of communities to raise costs without completely stopping exploration or mining activities. Today the concept has spread to other industries and is evolving towards becoming a general management perspective on the socio-political rights and responsibilities of the corporation. The business case underpinning the SLO perspective on management is the need to assess and manage socio-political risk. For mining companies, socio-political risk has been steadily rising for several reasons, including the efforts of non-government organisations (NGOs) to pre-empt government policy options; the entry of mining companies into jurisdictions weak in the rule of law; and the weakness of global economic and financial regulation. In this perilous world beyond the comfort zone of effective government, mining companies must build their own socio-political stability by engaging directly with stakeholders to develop a strong SLO. In order to become a practical management perspective, the SLO needs to be measurable, which amounts to measuring the socio-political risks and opportunities presented by stakeholders. We present the results of efforts since 2009 to develop a globally reliable and valid measurement tool at the project and industry levels, validated in studies in Australia, Bolivia, Mexico and the USA. A factor analysis suggested four factors that mine management can address to raise their SLO level. The most chronically neglected factor involves the political right of the corporation to foster more equitable social contracts locally and regionally in both developed and developing countries. We conclude with recommended steps to earn and maintain the social license at the project and industry levels.CITATION:Boutilier, R G, Black, L D and Thomson, I, 2012. From metaphor to management tool - How the social license to operate can stabilise the socio-political environment for business, in Proceedings International Mine Management 2012, pp 227-238 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 20, 2012

By P Holt, M Allen

On the first of July, 2012, the Australian GovernmentÆs Clean Energy Act commenced. From this point, a price of $23/t of CO2-e will apply to facilities that trip the liability threshold. This first part of this paper concentrates on the mechanics of the Clean Energy Future legislation and how it will be applied to the mining and mineral processing industry.The second part of this paper contains analysis of the data presented for typical mine operations. Methodologies for constructing a carbon strategy are also presented. This will entail determining what the objectives of the carbon strategy are, and defining what the strategic priorities for a business should be. An action plan to address the risks identified from the Clean Energy Act is also developed as part of the strategy.Details such as the advantages and disadvantages of opting into the carbon price scheme for liquid fuels are shown. Other considerations such as the ability to acquire permits through the carbon farming initiative or through overseas clean development mechanism projects are explained.CITATION:Allen, M and Holt, P, 2012. Implications of the carbon price and developing a carbon strategy, in Proceedings International Mine Management 2012, pp 105-114 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 20, 2012

By J Westh, S Rashleigh, L Gallagher

Mining companies are moving towards automated haul trucks and other equipment. One reason for this is that if automated trucks can operate in a standard pattern over and over again without variation, then human error is reduced, if not eliminated.The challenge for mining production leaders/managers is to ensure operators follow standard operating procedures for load and dump operations, with each operator doing the same thing, every time. However, operators are only human and inconsistent performance is rife at every mine site. The finger may be pointed at the operators for not doing as instructed. The clarity and variability of trainer instructions may be considered causal to the problem. Herein lies the problem. Almost all operators believe they are following the procedure very closely; moreover, they all demonstrate a strong desire to conform to instruction.Using video analysis and feedback, each operator can be shown where and by how much they differ from the benchmark set by their company. Operators, often for the first time, can see definitively what they are doing, compared to industry best practice.The technology utilised by real-time video (RTV) crews measures time, distance and angles. It can overlay the video of the operator at the load site, with video of the perfect pass. Operators are amazed when they see how near to, or how far they are from best practice.The footage and data gathered by RTV assists operators in understanding exactly what adjustments are required to increase proficiency. It also assists load and dump superintendents to identify where in the process they are losing time. When translated to overburden removal or mineral/resource extraction, the result is large production economies without the need for large capital investment in new automated technology.CITATION:Westh, J, Gallagher, L and Rashleigh, S, 2012. Improving safety and mine productivity using real-time video technology, in Proceedings International Mine Management 2012, pp 173-188 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 20, 2012

By A N. Danoucaras, S E. Goater, D Hearne, A M. Bansuan

It is globally recognised that existing and emerging mining activities should be conducted in a æsustainableÆ manner for the entire life of mine. Many companies annually publish corporate sustainability reports to demonstrate their actions in accordance with international expectations. This concept of sustainable mining practices also applies to mine water management, with influences often extending beyond site operations, affecting surrounding catchments and community users. This paper explores differences in conceptual and operational terms of æsustainableÆ mine water management within the Philippines. Outcomes of a review of corporate sustainability reports, governance documentation, research programs, and stakeholder knowledge acquired through action-research workshops are presented. The paper aims to inform and support future capacity building exercises delivered by the International Mining for Development Centre (IM4DC), with outcomes tailored to government officials and policy makers of developing countries. The project is funded by IM4DC, which is working with AusAID to identify needs and develop capacity with regard to mining for development; specifically, issues pertaining to governance and regulation, social and environmental sustainability, and operational effectiveness in developing countries.CITATION:Bansuan, A M, Goater, S E, Danoucaras, A N and Hearne, D, 2012. Integrated sustainable water management in mining for development in the Philippines, in Proceedings International Mine Management 2012, pp 205-226 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 20, 2012

By J Harris, P Kirsch, R LaBouchardiere

æMining + Health in DevelopmentÆ is a project funded by the International Mining for Development Centre (IM4DC, 2012) to develop a centralised database of corporate sustainability initiatives for managing and improving occupational and public health, based on information extracted from social and environmental reports of major mining, oil and gas (MOG) companies. This register of materials has the potential to increase stakeholder awareness of the unique health risks impacting the minerals industry, employees, their families and surrounding communities, as well as to inform stakeholders on global industry approaches to health management.Data and preliminary outcomes from analysis of different MOG corporate sustainability reports on public health and disease management are presented for six African countries (Democratic Republic of Congo, Ghana, Mozambique, Sudan, Tanzania and Zimbabwe) and six Asia-Pacific countries (Indonesia, Mongolia, Pakistan, Papua New Guinea, Philippines and Vietnam).With the minerals industry facing ongoing rapid growth worldwide, including continuous expansion into developing regions, the æMining+Health in DevelopmentÆ project will inform industry, civil society and regulators of current health management practices and programming among the different sectors of the minerals, oil and gas industries and across various regional operations. This baseline information will serve as a resource for minerals industry managers, providing a forum for sharing best practice health management approaches amongst MOG companies.CITATION:LaBouchardiere, R, Harris, J and Kirsch, P, 2012. Mining and health in development - An inventory of global resource industry health initiatives in developing countries, in Proceedings International Mine Management 2012, pp 75-90 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 20, 2012

By T Trott, G Lumley

"The mining industry suffers from a shortage of professional and other workers. Research and analysis has demonstrated a close correlation between high performance in productivity, maintenance and safety. There is also a significant correlation between engagement and performance. It is the hypothesis of the authors that mines can use a strategy of establishing themselves as a high-performance mine to attract and retain high caliber professional people: step 1 is to become best practice in equipment performance (productivity, maintenance and safety) step 2 is to brand the mine as æbest practiceÆ by sharing what has been confidential performance and outcome information with the general industry.Previous research has shown that many professional people are attracted by the prospect of a high achieving site because of the learnings and the support for continually doing better. In addition, a link has been established in previous research between productivity and safety. Operators and drivers are attracted to sites which have fewer dangerous people operating or driving. Good management delivers exceptional performance and a work site which high caliber managers and operational personnel people want to work at. The strategy requires commitment and proper execution but it can work. The strategy needs a specific approach and this paper will discuss this. A case study is provided from a mine which over a nine month period increased dragline performance by 15 per cent and reduced stress on the boom by 30 per cent. This mine paid the employees (professional and operational) $25 000/a less than the major mines but the operators and professional people would not leave; in fact, people were happy to be paid less to work there.CITATION:Lumley, G and Trott, T, 2012. Using best practice operations as a strategy for attracting and retaining professional people, in Proceedings International Mine Management 2012, pp 35-52 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Nov 20, 2012

By T J. V Duffy, L H. D Siahaan, P G. Albert

G-ResourcesÆ Martabe Mine in North Sumatra, Indonesia, is a US$700 M world-class and world-scale operation in a country which, with a few notable smaller scale exceptions, has had no significant hard rock mining development in more than ten years.The mine was commissioned in the middle part of 2012 and poured first gold on 24 July. At full production Martabe will produce 250 000 oz/a of gold and 2 - 3 Moz/a of silver at cash costs in the lowest quartile. The mine location is on the west coast of North Sumatra, which experiences annual rainfall of 4 m with no notable dry season, adjacent to seismically active fault zones, and relatively close to a rural community of 31 000 people with no significant industrial experience.The management team has successfully forged strong links with the various government departments and levels in Jakarta, North Sumatra Province and the local Regencies; developed long-term relationships with the various community groups within the local district of Batangtoru to build a sustainable social licence; has dealt with the physical and environmental challenges presented by the project location, and has successfully raised more than US$900 M over a period of three years for the original acquisition then the development of the project.Whilst in its infancy of operation, the mine is set up to deliver a long-term sustainable future for the company, the shareholders, and the people of Batangtoru and all stakeholders generally. The quality of the project execution and commitment by the company will ensure that maximum value can be delivered from Martabe, not just for the current mine life but from the significant exploration potential that exists on the large tenement area that the company has access to for 30 plus years.This paper will deal with the physical challenges associated with the design, the Indonesian government regulatory requirements for mine development, the social aspects of building a world-class project in a developing area, the in-country commitment necessary for any project development anywhere in the world and the successful funding arrangements for the mine development.CITATION:Albert, P G, Siahaan, L H D and Duffy, T J V, 2012. Building AsiaÆs latest hard rock mine, in Proceedings International Mine Management 2012, pp 189-204 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 20, 2012

By Y Zhu, W Liang, P Knights

In recent years, Chinese companies have invested billions in Australian mineral exploration, development and processing. In 2008 - 2009 alone, the Foreign Investment Review Board approved $26.4 B of investment. Much of this investment has been by merger and acquisition (M&A) of Australian resources companies. This paper sets out to investigate how Australian CEOs perceive the cultural and institutional challenges in operating Australia mining companies recently acquired by Chinese interests. HofstedeÆs cultural dimensions and institutional theory from management science were used to develop a structured questionnaire, which was subsequently used to conduct telephone interview of the CEOs of six recently acquired mining companies. Analysis of the survey results indicated that, in all cases, few changes were made to the operational management of the Australian companies post-M&A. The three major benefits for Australian companies as a result of the M&A are the ability to; access long-term debt at lower cost; secure finance for growth plans in financially volatile times; and maintain existing management structures. Some perceived negatives involved longer and more convoluted decision-making as a result of Chinese state approval required for investment decisions. The study identified building æGuanxiÆ and an aversion to losing æfaceÆ as important cultural learnings for Australian CEOs. Maintaining effective communications is regarded as key for successful cultural integration.CITATION:Liang, W, Zhu, Y and Knights, P, 2012. Cultural challenges in Chinese/Australian mining mergers and acquisitions - A CEOÆs perspective, in Proceedings International Mine Management 2012, pp 251-260 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 20, 2012

By M Scoble, A Ostry, J Shandro

Mining companies are not ill-informed on the topic of community health. There have been a number of research studies that have illuminated community health issues associated with mining, especially in the western Canadian province of British Columbia. However, what is missing amongst the literature is the perspective of mine managers and mining executives on this topic. This is important as mine managers and executives face a number of issues related to community health and are under pressure to consider the topic in more detail. This paper presents results from an exploratory qualitative investigation based on grounded theory research techniques into current community health considerations from the perspectives of mine executives and mine managers working in Western Canada. Interviews were conducted between February and May 2012 with 11 mining versus ten mining executives and managers who represented operating mines or mining umbrella organisations in Western Canada. Participants report on general community health issues that are perceived to be important, the perceived role that the mining sector should play?in contributing to community health and how this differs in Western Canada as compared to locations abroad, and?risks companyÆs face in making community health contributions. This paper concludes by drawing attention to pressing health needs that are present in Northern, rural and Aboriginal populations in Western Canada and provides a platform for future research initiatives focused on improving the health and well-being of communities associated with the mining industry. CITATION:Shandro, J, Scoble, M and Ostry, A, 2012. Community health considerations from mining executives and managers in western Canada, in Proceedings International Mine Management 2012, pp 97-104 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 20, 2012

By B Dodd

This paper details how the Australian Securities and Investments Commission (ASIC), as a disclosure and conduct regulator, approaches regulation of continuous disclosure, capital raising and control transactions in the mining and resources sector, and the reasons for the approach. In examining this topic the paper considers the Joint Ore Reserves Committee (JORC) Code (JORC, 2004), the VALMIN Code (VALMIN Committee, 2005), the relevant ASX Listing Rules and the relevant provisions of the Corporations Act 2001 (Corporations Act). This paper discusses ASICÆs approach to expert reports and disclosure with reference to Regulatory Guides 111 Content of expert reports and 170 Prospective financial information.CITATION:Dodd, B, 2012. Issues in capital raisings and disclosure, in Proceedings International Mine Management 2012, pp 3-14 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 20, 2012

By J T. Carswell, N A. Schofield

Fluctuations in periodic reconciliations between the mine and the mill are an expected and common experience in mining and processing operations. These fluctuations are caused in part by errors in the estimates of tonnage and grade of the mined material as well as errors in the millÆs assessment of the material processed. Keeping these errors small and unbiased is an important aspect of an efficient operation whose primary goal is to derive maximum benefit from the exploitation of the mineral resource.These fluctuations in periodic reconciliations can also mask subtle but economically important problems which may take years to identify and resolve. Such problems can result from a poorly-conceived model of the mineralisation which affects both the spatial distribution of the ore as well as the tonnage - grade distribution over the range of cut-off grades. Poorly conceived models of the mineral resources and ore distribution can arise as a result of insufficient and inadequate?drilling and sampling of the mineralisation, inappropriate?application of geological?constraints in the estimation process and the use of inappropriate methods to estimate the block grade distribution. This paper presents three case studies from gold and copper mining operations, two of which experienced significant problems with their mine to mill reconciliations over extended periods of time. For the gold mine in case study 1, sampling problems were ultimately considered to be the main cause of the poor reconciliations between grade control predictions and the mill which persisted over a period of 18 months. In addition, incorrect application of resource modelling methods contributed significantly to a mismatching of the mill capacity with the mine at the beginning of operations. For the underground copper mine in case study 2, a change in the approach taken to resource modelling brought marked improvements in ore definition and more accurate predictions of ore grade and better production forecasts.The third case study describes the background to the expansion of production to exploit a large tonnage of lower-grade stockwork mineralisation in an open pit gold mine. Several years of favourable Mine to Mill reconciliation data from the mining and processing of higher grade and lower grade stockwork styles of gold mineralisation provided the confidence in the approach to grade control to support the expansion plans during a period of low gold prices.The paper is intended to complement the discussion of mineral resource estimation methods and risks in Section 6.1.3 of the Mine ManagersÆ Handbook to be published by the Australasian Institute of Mining and Metallurgy (Schofield, 2012).CITATION:Schofield, N A, Moore, J and Carswell, J T, 2012. Mine to mill reconciliation - Three case studies, in Proceedings International Mine Management 2012, pp 161-172 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 20, 2012