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By J Yamatomi, Y Tamanishi, S Miwa

The four-dimensional (4D) network relaxation method, originally developed by Akaike in 1999, uses Lagrange relaxation and is known for its ability to include the price change and possible better outputs, but the computation time is huge. However, the continuous advancement in computer technologies allows the use of higher-speed computers with more memory capacity. Therefore, in this paper the authors have tried to implement the method with adjustments and improvements in its algorithm to suit the current computing system. As a result, the computation time has been drastically reduced and more constraints can be included, which makes the scheduling a more realistic one. The case study of an open pit gold mine with 129 500 blocks can be solved considering the capacity constraints in 71 seconds. In previous case studies, the mined ore had to be processed or disposed of immediately. Now, stockpiling can be included as another option. Since the details of the algorithm are still being improved, the computation time is a little longer than the previous cases without the stockpiling option. However, it is found that scheduling with the stockpiling option is possible in a reasonable time. In conclusion, the 4D network relaxation method has become more useful with advances in computer technologies and provides better results.

Sep 26, 2011

By S Van Duin, I Porter

This paper discusses how advanced manufacturing technology (AMT), which is fundamentally reliant on and developed via multi-disciplinary skills, has benefitted non-mining industries, and what lessons can be derived from this experience to benefit the mining industry, particularly underground coal mining. Examples of AMT use in æconventionalÆ industry, some drawn from the more than 25 years experience in many different industries of the Automation and Robotics team at the University of Wollongong, are described to show typical benefits, risks and opportunities expected in using AMT. Applying AMT to mining brings many unique challenges and this paper expands on these and then provides practical examples of how a multi-disciplinary team can develop new processes and systems leading to productivity, safety and other benefits for underground coal mining.

Sep 26, 2011

Longwall mining operations have been in place in Australia since the early 1960s. This mining method is currently used to extract the bulk of coal obtained from underground mines in Australia (CSIRO, 2010). Despite the high tonnages extracted the expected utilisation of much equipment remains relatively low. To some extent this level of utilisation is influenced by the variability in conditions inherent in the mining process. This variability in production rates presents challenges to those attempting to design a coal clearance system. The difficulty is to design a system that has sufficient capacity to support production, without over capitalising or incurring high operating costs. The need to allow for a series of largely unplanned events in the design of a coal clearance system makes simulation modelling an ideal technology to employ. Simulation modelling is a methodology that allows a system with interacting components to be modelled over time, while explicitly taking into account unplanned events that may disrupt operations.This paper discusses how dynamic simulation models have been used to assist in the design of coal clearance systems. Typically this type of modelling has been used to look at the likely profile of production rates from the Longwall shearer and to determine how well various proposed combinations of belts, bins and stockpiles would support production.

Sep 26, 2011

Visual computing opens the design process to a wider audience and allows rapid communication of mine plans to all stakeholders. The integration of software and hardware technologies that take advantage of a graphical environment will continue to improve both long-term and short-term mine design (Figure 1). A good design must be adaptive to respond to decision changes as the mine develops and more information becomes available. The constraints on mine design predicate careful analysis in order to operate the mine as efficiently and safely as possible.Continuous improvement in mining is assured by developing innovative technologies that target mine survey, drill and blast, modelling, short-term design and pit and stope optimisers. The design life of a mine has to be sufficiently long to ensure the mine is commercially successful, justifying the high start-up capital costs. Being able to execute a plan so that it honours the design realises the rewards of computerised mine planning and the long-term investment in data acquisition.

Sep 26, 2011

After many years of studying the rock mass gravitational flow phenomenon, it is well known that moisture conditions may change the mechanical properties of the caved and broken material, causing different problems at drawpoints. One specific problem, perhaps one of the most unpredictable and uncontrollable, is that of mudflows (also known as mud rushes). The aim of this paper is to show how to establish optimal extraction rates at a drawpoint in order to avoid the closure of that drawpoint due to the high risk associated with having high-technology automated loaders working in the production level of panel cave and block cave mines prone to mud flow events. This optimisation should take into consideration critical restrictions related to mine planning, such as the need to reach the planned production. It is also important to consider the correct design of surface (in the subsidence zone) and underground drainage systems to prevent groundwater or rainwater entering muck piles, filled stopes, galleries or open cuts. With these considerations, and keeping in mind other factors that should be included in a sensitivity analysis of variables, it is possible to find a correlation between the percentage of extraction from a drawpoint and the possibility of occurrence of a mudflow. Finally, this paper proposes different draw strategy techniques in order to mitigate potential mudflow issues on a caving production level.

Sep 26, 2011

By A Huebner, A Noack

Companies all over the world are very sensitive concerning their IT and network security. In most network connected technical installations and machines however, network security is not taken into account to a significant extent: insecure protocols are run, unencrypted information is exchanged freely and even broadcasted wirelessly and networked machines are accessible via insecure file transfer protocol (FTP).What happens in case of malfunctions of such technical installations? Who is responsible? Who can be held liable in case of accidents? The first computer worm for automation systems (æSTUXNETÆ) (Symantec, 2010) was discovered during 2010.The paper is intended to create sensitivity among decision makers for potential security and resulting safety leaks and points out the current status quo in technical network security. It outlines best practices for secure networking and procedures for remote access and remote software updates on stationary equipment and mobile mining machinery. It describes how to ensure authentic and genuine configurations and software targets and how to ensure secure communication for autonomous and remote controlled equipment. For such equipment in particular, the following statement should apply: æThere is no safety without network securityÆ.

Sep 26, 2011

By E Rubio, N Morales

A common practice in the mining industry is to decompose the planning process into different tasks, so the overall process and specific schedules can be constructed easily. Nevertheless, currently there are some adverse effects, such as not capturing the real value of a project by not taking into account the construction of several underground drifts and general infrastructure. Then the common practice is to compute mining sequence and cut-off grade profiles over the life of the mine without constitutively integrating the development schedule as a means to measure the constructability of a given mine design and sequence. Thus, the investigation summarised in this paper shows a novel, integrative way of treating an underground mine sequence and production schedule while considering drift development scheduling. Moreover, it is thought that, because of this original model, the whole underground production scheduling exercise must concentrate on combining the development and the production scheduling to compute a robust and a feasible production schedule.In order to quantify the effect of the conventional way of viewing the planning, the concept of the building information model (BIM) needs to be used, which was postulated by Charles Eastman and has been used extensively since the late 1970s. BIM takes other aspects of a project into account, considering at the same time the spatial relationships, quantities and properties of building components, but especially some kind of model visualisation, which is the advantage to be incorporated. This paper presents the basis for an optimisation model that allows for defining the sequence of the mining development so that the production plan can be achieved. For this, the model considers the space dimensions, time, pattern or strategy, cost or benefit, precedence and resources available. Tests were performed considering a block caving and sublevel open stoping method. Finally these tests showed the main conclusion, that production sequence changes when the building capacity is considered.

Sep 26, 2011

Various methods and software have been trialled for simulation of Au grades at Boddington Mine. This covers in-house and public software as well as sequential and turning bands methods. The diversity of options was further expanded with comparison of point and direct block simulation. Some difficulties were encountered in incorporating high-grade restrictions. Altering parameters or software can make very significant differences and give results varying from estimations. This paper details a new simulation run with validation and tests for local calibration (or progressive correction) of the simulations to the estimations, focusing on reproduction of statistics. This approach brings to the forefront the question æwhat is the purpose of the simulations?Æ Results and some ideas for future applications at Boddington are summarised.

Sep 26, 2011

By F Grobler

Many projects fail because project performance in unfavourable economic conditions was not anticipated at the investment decision stage. This type of failure may have been avoided through the selection of a strategy that enables the project to perform well under a range of possible future economic conditions (a ærobustÆ strategy); rather than an æoptimalÆ strategy for expected future conditions that will never eventuate. This paper describes a method of rapidly generating mine plans for a number of project strategies, and then evaluating it against a representative range of equally likely economic conditions. The key performance indicators derived for each strategy are the mean value and the distribution of values (variance). A prudent investor will identify prospective strategies not only on the merit of highest mean values (as a proxy for economic reward), but also on the probability of not meeting specified investment hurdles (a proxy for risk). A robust strategy will achieve its financial objective even under adverse economic variations. This paper focuses on the effect of commodity price uncertainty; particularly around the choice of mining and processing capacity levels. Results from enumerating 2000 prices scenarios against 63 strategy combinations show how processing and mining capacity can be manipulated to manage the risk-reward trade-off.

Sep 26, 2011

By B Olsson, R Norman, M Volz

Australia has seen unprecedented demand for coal exports in the last ten years and this demand is set to expand further still according to many analysts. This rapid increase in demand has placed pressure on multi-user coal chains to guarantee the capability to meet the required demand, in terms of both current operations and capacity expansion.The projects required to deliver these forecast tonnages take place in an increasingly complex commercial and technical environment. These challenges include brownfield and greenfield projects, multiple rail and terminal service providers as well as a myriad of mine operators, all needing to operate in an increasingly integrated manner to get the most out of expensive shared assets.Increasing complexity and integration drives the need for more holistic and sophisticated analysis tools. The capacity of coal chain subsystems, such as mine, rail and port, can no longer be determined effectively in isolation. Understanding the nature of the interactions between these subsystems and the resultant capacity of the integrated system is the key to maximising value. TSG advocates the use of a total integrated system approach to understand the behaviour and performance of complex coal chains.Recently, TSG has worked in conjunction with the Integrated Logistics Company and a number of stakeholders in the Dalrymple Bay Coal Chain to deliver the first independent system master plan. This master plan has provided a quantitative and rational assessment of coal chain capacity in its current state and a prediction of its capacity once a pipeline of committed capacity improvements is in place. It is underpinned by a highly detailed discrete-event simulation model of the complete coal chain as an integrated system, including mine load-outs, rail, terminal and port operations.This paper provides an overview of the study and describes the differences between subsystem and total integrated system model performance.

Sep 26, 2011

By A Galli

Traditionally pit optimisation and scheduling is carried out assuming that the resources, the commodity prices and production costs are all known. Once the pit contour and the mining schedule have been determined, geostatistical simulations can be used to assess the impact of the uncertainty in the resources on the pit design and the schedule, and likewise stochastic simulations can be used to test its robustness to fluctuations in costs and prices. But it would be more interesting to have a dynamic procedure for optimising the pit as the resources become better known and as economic factors such as commodity prices and costs evolve over time. This paper presents a novel approach for doing this. Rather than working with millions of small selective mining units, it was decided to work with large blocks, called macro-blocks. Mining sequences are defined as the quantities to be extracted from each macro-block in each time period. Feasible mining sequences are mining sequences that respect the accessibility constraints, and also the geometric constraints on the amounts that can be extracted from any one block over time, or from all the active blocks at a given time. Having defined feasible mining sequences, their mathematical properties were studied. It was found that natural breakpoints occur in the sequences when one set of blocks have been completely mined out, thereby opening up access to others. It was discovered that families of sequences exist, and that they are convex and closed under certain types of row permutation operations. Convexity is an advantage when optimising. The closure property opens up the possibility of mixing and matching subsequences of rows in the sequences. Another interesting property is that the sequences form branching families, rather like the binomial and trinomial trees used to model prices in finance and in real options.It is easy to generate large numbers of feasible mining sequences randomly. A two-step procedure is used to find the best one (or the best few) using three economic criteria: expected NPV,the probability of a negative NPV, and the percentage of years when the cash flow is negative. The procedure was tested on a synthetic gold mine based on the characteristics of the Essakane mine in Burkina Faso. The results were encouraging.

Sep 26, 2011

By E Rubio, N Morales

Currently, mine plans are optimised by using several criteria as objective functions, like profit, life-of-mine, concentration of some pollutants, mining costs, confidence level or ore resources, with consideration of constraints related to production rates, plant capacities and grades. Whilst this approach is successful in terms of producing high value production schedules, it uses a static opening sequence of the drawpoints and therefore the optimisation is made within the level of freedom left by the original opening schedule, and as a result it is far from the true optimal value of the project. This paper presents a model to optimise the sequence of drawpoint opening over a given time horizon. The emphasis is in the precedence constraints that are required to produce meaningful operational sequences considering the exploitation method (panel or block caving), physics considerations and logical rules. Further on, while it applies the standard approach of maximising net present value (NPV), it considers other targets for optimisation, like the robustness and constructability of the plans. Finally, it applies the model to real data to obtain feasible plans by means of this model. The first tests were done varying the production capacity of the mine.

Sep 26, 2011

By I Douglas, L Allen

Localised indicator kriging was developed following a similar approach used by Marat Abzalov (2006) in his paper titled æLocalised uniform conditioning (LUC): A new approach for direct modelling of small blocksÆ. Abzalov introduced the idea of mapping panel distributions from uniform conditioning onto selective mining unit-sized blocks that were created using ordinary kriging. This concept of remapping panel distributions was applied to multiple indicator kriging histograms.At Newmont a program was developed that made the remapping of MIK histograms to SMU sized blocks extremely efficient and was subsequently tested on several gold deposits. The results have been encouraging as the localised indicator kriging (LIK) method has eliminated many issues that have plagued both ordinary kriging and multiple indicator kriging. Use of localised indicator kriging methodology limits the smearing of high-grade and the over-smoothing of grade that is common and difficult to control in OK but retains the ability for localising grades. LIK also simplifies change-of-support corrections, eliminates un-mineable slivers of low or high-grade when dealing with small tonnages, and allows for the mapping of linear and non-linear estimates into the same block.

Sep 26, 2011

By S D. Dessureault

The largest surface coal mine in North America requires complex materials handling infrastructure to fulfil the highly variable quality specifications of its contracts. These diverse demands, reflected in the arrival of numerous customer trains every day, necessitate the integration of information in every stage of production. To meet this goal, quality measurement, train line-up and mine planning processes are being integrated into local and remote control rooms. The effectiveness of such a system can only be measured by comparing decisions that are made with, and without, each of the individual integrated control systems. Traditionally, mine controllers use their experience, intuition or a variety of trial-and-error spreadsheets to determine the ideal materials handling flows needed to achieve the correct quality. These balanced decisions are complex since many factors must be considered such as the mine plan, fleet costs, quality variability and others; consequently mine controllers usually have widely varying success between crews.An evaluation model was developed to assess the impact of a decision support system (DSS) integrated in a control room for controlling the coal blending process. To this end, an ARENA-based simulator representing the whole production process can be used to pull performance and current materials handling settings directly either from the real-time systems in the mine, or from historical data. In this way, the same shift (breakdowns, cycle rates, etc) can be simulated and performance compared. Different settings of the DSS, in terms of what information is displayed and the methods for doing so, can be tested for effectiveness. The historical data are extracted directly from a corporate data warehouse, without altering the everyday working databases. At the same time, the simulator writes its results back into the same data warehouse structure, allowing the same KPI reports to be used to measure simulated shifts.

Sep 26, 2011

In this paper a quantitative deterministic risk modelling approach (Quadrim) is introduced. The mathematical framework and equations for quantifying uncertainty within and aggregating across value chain nodes from error propagation techniques is proposed and discussed. A case study and worked examples, based on a hypothetical mine are then presented. This illustrates how uncertainty from the mining and economic value chains can be handled in a typical net cash flow calculation, and how this can be translated to a risk model. It is then illustrated that current valuation techniques do not just result in an information gap for decision makers. Traditional approaches such as discounted cash flow (DCF) analysis and truck and shovel productivity analysis, which do not take into account uncertainty in input values, can result in potential bias in estimates such as net present value (NPV) or equipment hours

Sep 26, 2011

Real-time data collection and plant historians are becoming common place in mining and processing plants. This vast quantity of data must be turned into easily accessible and actionable information for all levels of the organisation.Queensland Nickel use a combination of Microsoft and SAP business intelligence tools to collect, cleanse, aggregate and present plant information to the appropriate people for supporting decision making in the business. SAP Business Objects, for visualisation, and SAP MII, for integration, allows complex and accurate metrics to be delivered as real-time dashboards. Designing a rigid data management architecture to segregate the data collection, integration and logic and visualisation into distinct logical layers, allows for rapid report development and greatly assists with IT maintenance, while also minimising the complexity of any customised programming. This type of architecture ensures a common data source for all business reports, ensuring one version of the truth. The past few years at Queensland Nickel have seen process and maintenance engineers spending considerably less time collecting and integrating data and spending more time analysing what is happening in the plant. Real-time reports and dashboards have been developed around the business needs rather than around the data. Two years ago Queensland Nickel introduced an employee bonus scheme based upon meeting monthly performance targets; an easy to use dashboard that allows everyone, from operators through to management, to monitor these metrics day-to-day.

Sep 26, 2011

By M J. Pejovic, S BoÜevski, I Miljanovic, M Hudej, A Milutinovic, A Petrovski

The paper deals with the problem of managing the supplies of consumables (energy resources, lubricants, explosives, explosive supplies, tires, spare parts, etc) in mines. After the introductory remarks and comments, a general stochastic model of supply, relating in general to the dynamic programming method is presented. A selection of stochastic supply model for experiments and research by the authors of this paper is not a coincidence, based on of their long experience, showing that this type of model is the most suitable to provide support for decision-making and management of supplies of consumables in mines.In order for the problem?of?consumables?supply?management to be reviewed, in whole and objectively from the aspect of risk, experimental tests of the stochastic model in real conditions were performed at the limestone open pit mine æZelenikovecÆ near Skopje, the capital of Macedonia. The scope of the experimental research enabled reliable analysis. The results obtained confirm the efficiency and reliability of the stochastic model and two separate manipulative-operational positions regarding its application, which may have an important influence on the optimisation of supplies.

Sep 26, 2011

By M Armony, J F. C L Costa, J C. Koppe

Linear kriging methods fail to estimate local grades and local reserves for highly skewed variables due to three reasons: it uses only part of the available data information, it has no physical principles associated with the mathematical proceedings to minimise the problems, and it works with continuous variables while data are discrete because of the limited precision of any equipment. The techniques commonly used up to now to solve the highly skewed variables estimation problems were unsuccessful, unless mathematical rigor is abandoned. Even the method of multiple indicator kriging is not satisfactory. This paper presents a new framework, the field parametric geostatistics (FPG) that transforms noisy variograms into well-behaved variograms and justifies mathematically empirical procedures commonly used, as trimming or capping arbitrarily very high values. The method, when applied to non-skewed variables, yields similar results to classic kriging. The methodology is illustrated in a case study at a gold deposit in Brazil, and compared to results obtained by usual techniques.

Sep 26, 2011

By R Razanatsimba, A Galli

A mining company has entered into contractual commitments to supply certain quantities of its product to clients in each time period. Failure to fulfil its obligations would damage its reputation as a reliable supplier. The planned production would normally be sufficient unless major problems such as highwall failures, roof falls, natural disaster, or strikes that interrupt production or delays in obtaining environmental permits, occur. To overcome these difficulties, the company may be able to obtain more of the commodity: from its strategic stockpile (if there is sufficient there); by buying it on the spot market; or for some commodities such as gold and uranium, by leasing it. Two sources of uncertainty, the spot price of the commodity and the occurrence of serious incidents that interrupt production, are considered. For simplicity it is assumed that the commodity price follows a geometric Brownian motion, that productions incidents have a binomial distribution, that they are independent from one time period to another and that they do not affect prices. A branching tree structure is used to model the joint evolution of prices and production incidents. The aim of this research project was to evaluate the companyÆs options for fulfilling its contractual commitments. When evaluating these options, multi-stage stochastic programming with recourse was used to solve this problem because in addition to providing the dollar value of the project, it gives decision-makers the æroadmapÆ to reach the optimal value. That is, how much material should be bought/sold on the spot market, how much to add to/subtract from the stockpile, how much to lease and in the worst case what the shortfall would be, for each time period as a function of the current spot price and breakdown status. A case-study over a five-year period is used to illustrate the proposed procedure. In this study the production would be sufficient to cover the companyÆs contractual commitments unless production incidents occur. Focus is on evaluating the impact of the quantity initially in the stockpile on the value of the project when the commodity market is tight, that is, when only small quantities can be bought on the spot market or by leasing.

Sep 26, 2011

By R Paterson, A Christensen

The routine use of gravity gradiometry for the detection of orebodies with no outcrop is now being undertaken. The commodities and orebody styles range from banded iron ore formations to volcanogenic massive sulfide (VMS) style polymetallic deposits. This recent innovation of flying gravity gradiometry was pioneered by BHP Billiton and Lockheed Martin with the Falcon technology (Lee, 2001), and now two additional systems, also using Lockheed Martin instruments, are deployed. In South Africa, magnetic gradiometry is being developed and deployed with the same objectives in mind. In this case, a system from Institute of Photonic Technology (IPHT) is being used. The detectable wavelengths from such systems have decreased to less than 200 m in the last year, and it is expected in 2011 that wavelengths to less than 100 m, with anomaly signal strengths of less than 2 Eotvos for gravity gradiometry will be viable. The key to these advances lies in the improvements of processing software and geological modelling. In particular, methods using all the tensor components are starting to be routinely deployed to filter, level and grid the observed signal. These methods do, however, require full insight and understanding of the reference coordinate systems used by the various instrument designers and survey operators. The digital terrain models need also to be observed to an accuracy of better than 20 m cell sizes, using such techniques as Lidar. Then the terrain effects can be modelled. The topographic surface represents the largest and most proximal density contrast encountered in an airborne survey. Hence terrain effects can have significant impact on airborne gravity gradiometry data. A decorrelation of the terrain effect with the observed signal requires a method of best fitting with a regional surface density. A novel technique has been developed for this purpose. This technique uses a tensor algebra to estimate a density between 1 - 4 g/cc that explains the average observed signal. Armed with this result, the anomalous buried bodies can be revealed by subtraction.

Sep 26, 2011