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Reconciliation involves the collection of tonnage, grade (quality) and contained metal (product) data from disparate and hopefully independent sources. Examples are exploration data, production sampling data from blastholes or drawpoints, and process plant data. These data may be compared by means of ratios (factors). The F1 factor usually relates short-term (ore control) model tonnages, grades and metal content to ore reserves depleted. The F2 factor usually relates received-at-mill tonnages, grades and metal content to delivered-to-mill = production tonnages, grade and metal content. The F3 factor is F1 × F2 and enables a comparison of a mineÆs ability to recover the tonnage, grade and metal content estimated in ore reserves. The F1 factor measures the accuracy of orebody knowledge in the ore reserves to the demarcation of ore and waste by ore control (short-term model). The F1 factor may be used to check and calibrate the selectivity of mineral resource models and/or planned dilution assumed in transfer from mineral resources to ore reserves. The F2 factor enables a check on unplanned dilution entering the ore stream between ore control and the mill. Using the factors it is possible to calculate a monetary value on improvements in the accuracy of orebody knowledge, selectivity and the effects of dilution and ore loss. Reconciliation should be an implicit part of the mining process, and reconciliation targets should be a key performance indicator for well-run mines.

Sep 26, 2011

By B Muller

The disposal of tailings has become a greater issue due to the changing economics of mineral extraction. The processing of lower grade deposits and tougher environmental regulations has led to the selection process for tailings disposal options becoming more complicated. Current selection methods are too time consuming or too easily manipulated for inexperienced users to use successfully. This paper examines a different method for the initial selection of a tailings disposal system, using a numerical system that was introduced into the mining method selection field. The numerical method system was compiled by reviewing previous work done on the positive and negative aspects of the tailings disposal methods used by the coal and metallurgical mining industries. Assessing the common trends and design aspects of each of the methods was undertaken and a ranking was designed to explain how well suited the tailings disposal methods are to a situation. The tool successfully analysed sites using common data to indicate methods for disposal that would have provided minimal technical problems, low environmental risk and been practically possible. The tool also proved successful in identifying critical areas that would need further investigation. This new system was tested on some disaster case studies from around the world in order to show that it could have successfully selected a different method for tailings disposal that would have prevented the disaster.

Sep 26, 2011

By M Reisi, H Waterer, M Savelsbergh, F Engineer

The Hunter Valley Coal Chain Coordinator (HVCCC) Limited is the primary planning organisation responsible for the export of coal through the Port of Newcastle, Australia. HVCCC stakeholders include producers (mining companies), rail track owners, above rail operators, and terminal operators. The HVCCC is tasked with coordinating the activities of all the corresponding parts of the coal export supply chain so as to maximise the system efficiency. The HVCCC also has a forward looking planning role: with demand for coal expected to double in the next decade, strategic capacity planning is a core activity for the HVCCC. Optimisation and simulation models are key aids in such activity. They are used to suggest and evaluate infrastructure expansions and operating policy changes. These models require input data in the form of shipping stems, which are arrival streams of ships at the port, together with their cargo types and composition, and date and time of arrival.Although everyone is familiar with the expression ægarbage in equals garbage outÆ, relatively little research is dedicated to the issues surrounding input data generation. In this research we seek to redress this, and have developed a method for generating high quality shipping data. Shipping stems used as input should be realistic, reflecting key characteristics of historical patterns. They should accurately represent future demand scenarios. Yet they should also have controllable parameters that can be used to test what-if scenarios, such as are required by the HVCCC to answer questions about future infrastructure or operational plans.Here we review our process for achieving this, and give a case study analysing the effects of different shipping stems on the performance of the coal chain, as measured by a capacity assessment tool. The latter is an optimisation model that takes shipping stem and infrastructure data as input, and calculates key supply chain performance metrics. The potential benefits of alternative demand management strategies are analysed by measuring the performance of the coal chain given different shipping stems obtained via the stem generatorÆs controllable parameters.

Sep 26, 2011

By B J. Wilde

Evaluating the resources and reserves in a mineral deposit requires many interdependent subjective decisions. The decision of stationarity is arguably the most important. This decision includes: the choice of domains that subset the entire deposit, modelling the boundaries of each domain, and understanding and considering the nature of the contacts between domains. Reasonable choices are made in consideration of the geological context, the available data, the goals of the study and the available resources for the study. This paper reviews aspects of the decision of stationarity in modern resource assessment with a focus on quantifying uncertainty and using numerical/statistical tools to help the geomodeller. The use of volume/distance functions to quantify uncertainty in domain limits is particularly important and is presented in detail. The use of contact plots provides help with the continuity of grades across domain boundaries. Realisations are not assembled as a branching combinatorial of all possibilities, but as a set of realisations that provide a measure of uncertainty. This paper amounts to a definition of stationarity for modern resource assessment.

Sep 26, 2011

By J F. C L Costa, J C. Koppe, C Diedrich

Currently mineral resources evaluation is firstly expressed in terms of volume. Next the resources are transformed into tonnes by using an average bulk density applied to the whole deposit or, in some other circumstances, various different densities to distinct geological domains. Previous work in uranium, copper and nickel deposits used linear correlation between grades and bulk density to derive the density. Geophysics methods are also another good way to obtain density indirectly.These approaches do not take into account that two samples with the same grade but with different bulk densities can characterise different sample supports, leading to severe bias in grade and tonne estimates. It is important that the systematic measurements of bulk density are included into the estimation process, particularly when density is not correlated with the grades. Additionally, the extra time and costs involved in obtaining the bulk density data have made the mining industry disregard it.This study reports the impact in resource estimates by using a methodology that includes the bulk density variability. It involves the determination of a variability model for the bulk density and another model for the composite that was weighted by density as well as by its length. Next, these variables are estimated by kriging and the final grade estimates are obtained. The tonnages are obtained with the bulk density estimates. The conventional methodology was also applied and both estimates are compared to the reconciliation data from a major copper deposit. The results show a significant difference between the tonnage and grade estimates obtained from these two methodologies.The results show that considering density variability when compositing leads to a more accurate methodology resulting in better grade and tonnage estimates locally and globally.

Sep 26, 2011

By J Araya, O Leiva

The mine evaluation process, composed of the designing, planning and valuation of a mine project, is, among other variables, based on an estimated orebody model. However, as the information from the drill holes is limited, it is impossible to know with certainty the mineral content in each block within the estimated block model. Consequently, uncertainty about the value of metal grades, or other geological attributes, arises because of the lack of information at unsampled locations. This is one of the reasons why, in any mine operation, there will always exist a divergence between estimated and real values. Cut-off grade optimisation is the process used to determine the operating mining strategy (long-term production scheduling) that will maximise the total profit value (normally referred as the net present value (NPV)) of a mine operation. This is done by defining a dynamic cut-off grade policy which is constrained by the production capacity of the mining, mill and refining.Real options is a type of contract, written on real assets such as mining, oil and other natural resource industries, that gives you the right but not the obligation to exercise the contract. It is based on operational and managerial flexibility, which allow mine decision makers to react to either good or bad operational and economic events in the future. But, what do geostatistics and cut-off grade optimisation have to do with the application of real options in a mine project evaluation process? The objective of this paper is to answer the previous question by showing how geostatistics combined with cut-off grade optimisation are key tools for corporate/managerial decision makers, which allow them not only to analyse the resource/reserves of their projects, but also to generate operational strategies that can maximise project value by minimising the downside risk due to ore tonnes and grade uncertainties, while achieving operational and physical constraints such as mining and processing capacities. A real copper grade open pit mine project is used as a case study.

Sep 26, 2011

This paper describes modern long-term mine scheduling and gives an example of its application. It then discusses the obstacles to the implementation of such schedules.

Sep 26, 2011

By D M. Silva, J C. Alves

According to the literature, material transportation represents 50 per cent of the operating costs for an open pit mine. In this context, this paper proposes a multistage approach for dynamic truck dispatching in real open pit mine environments, implemented in the commercial package SmartMine®, marketed by Devex SA. The first stage of this approach defines the optimal number of trucks that maximises the tonnage production by means of a robust linear programming model, which considers the operational constraints of a real mining process. The second stage uses a dynamic dispatching heuristic joining computational simulation and multicriterion optimisation techniques for decision making for truck dispatching. Another relevant contribution of this work is the publication of realistic instances collected from a dispatching system managing an iron mine, containing information about the hauling and loading fleet, the equipment situation when the working shift starts, cycle times, the time line of special occurrences (such as equipment stoppages and loading equipment reallocation in order to satisfy the mine planning) and the tonnage produced. These instances were generated with the purpose of submitting the method to the test of a real situation that considers the uncertainties existing in the process studied. The proposed approach was validated by means of a discrete event simulation model applied to the previously designated instances. Using this multistage approach as a mechanism for dispatch decision making, it is shown that the haulage fleet productivity increased when compared with the real values reported from the instances. These results are important because they show that the proposed approach generates efficient dispatch decisions for trucks operating in a real environment, reducing operating costs, increasing production and making the mine more competitive.

Sep 26, 2011

By C Tonkin, S D. Howell, P V. Johnson, J Moriarty, P W. Duck

This paper presents the scientific framework underpinning the resource valuation and optimisation model (RVOM). The RVOM is a partial differential equation based real options software package, which helps mine owners optimally plan their operations, understand their project risks, and make defensible valuations. This is achieved in the presence of both financial and physical uncertainty, as well as processing capacity constraints. The RVOM can be applied to any multi-ore mine, open pit or otherwise, where the block-order of extraction has already been planned using existing software tools such as the Gemcom WhittleÖ strategic mine planning package. The RVOM can also take account of multiple commodities within a single mine, and multiple forms of price behaviour. The three key outputs from the RVOM are: valuation, optimal decision and probability of decision. A decision takes account of upfront costs, and can include an unlimited number of transitions between: normal operation, expanded operation, care and maintenance and abandonment (and variants thereof). The RVOM then employs stochastic process theory to determine the probability of reaching these decisions. This gives the mine operators clear indications as to where their risks lie, aiding their mine planning. A clear example of the RVOMs usage to a case-study gold mine is presented, demonstrating its broad applicability, the added value it can create and how users can easily make use of the RVOMÆs state-of-the-art algorithmic engine.

Sep 26, 2011

Large deposits present computational challenges to todayÆs commercial orebody modelling systems that are based on conventional block models. We describe a system that is specifically engineered to model and visualise large deposits. Central to the system is linear octree encoding of conventional block models and real-time conversion of three-dimensional (3D) meshes to linear octrees. We provide both methodological treatment and practical experience in implementing such a system. A commercial implementation is also presented to demonstrate the validity of the approach.

Sep 26, 2011

By S D. Dessureault

In one of North AmericaÆs largest mines, which contains more than six active coal-producing faces, mine controllers must meet the complex challenge of adhering to the mine plan while also ensuring customer quality. Fleet management systems (FMS) provide many different avenues to control production flows, from the faces to the various pit crushers. Nonetheless, mine controllers must balance a variety of factors such as unplanned downs, differing customer demands, their own daily key performance indicators (KPIs) related to equipment utilisation, among others. Deviating from the short-term mine plan is the most common means of balancing the other factors, since adherence to the plan is traditionally only measured during the weekly variance meeting with engineering staff. However, such deviation may be one of the most costly responses, as long-term scheduling issues may arise such as multi-face dead-heading or insufficient stripping. This paper focuses on the development of a system for real-time adherence to mine plan within a control room environment. This system is part of a larger blending-focused, multi-million dollar project with elements of a centralised remote control room, developed at the University of ArizonaÆs Mining Information Systems and Operations Management (MISOM) Mine Control Center (MC2). The mine plan (MPL) component of the overall blending system integrates both historical and real-time FMS data with mine plan requirements directly sourced from original systems (no additional input required). The measures, displayed largely as graphs, have tools to help controllers manage the production to facilitate adherence to the plan. Some measures are designed to motivate crews to perform by inciting competition between crews, softened through a study of the controller culture. The MPL component was deployed at the mine, and the before and after deployment adherence was measured. This paper discusses the technical development of the new tool, its deployment, and an ethnography (study of culture) to understand controller motivation.

Sep 26, 2011

By E A. Gunn, J Zhou

In this paper a project to develop a joint optimisation/simulation model for production planning in a mine-mill complex is presented. The system involves a mill receiving ore from a number of different locations, each with a unique mineral composition. The mill consists of several crushing and grinding circuits that function in series and parallel. Scheduling the flow of materials through the mill is complex due to constraints on throughput imposed by the millÆs design, the length of time material can be stockpiled on the surface, varying input mineral composition, and throughput targets for a range of output products.An optimisation model is used to create a set of campaigns (ore feed rates) over a given planning horizon under the assumption of deterministic mill throughput. A simulation model is used to evaluate the production plan under assumptions of stochastic machine failure and operational losses created by the need to cycle between input feeds. Campaign scheduling has two important implications for the simulation. First, during any campaign, multiple ore types may need to flow through the mill. However, the mill must be controlled to ensure that only one type of ore can be in a crusher, a grinder or a storage bin at any point in time. Second, as the mill switches from one campaign to another, the set of ores being processed may differ. Thus, the flow of ore through the equipment during a campaign changeover must be controlled to ensure that one or more of the ores from the current campaign can be completely eliminated before the ores from the new campaign are introduced.The simulation architecture employed for this project is Visual Basic for Applications (VBA) combined with MS-Excel as a user interface. A fixed step discrete event orientation is assumed as the simulation framework. A set of model constructs was built for the project with a specific Canadian milling operation in mind, but was designed to be representative of a broad class of milling operations. The constructs are implemented as class objects within the VBA structure, each with a number of properties and methods. The collection of VBA objects forms a composable modelling toolkit. These objects can be linked together by users, via MS-Excel, to represent a broad range of milling operations.

Sep 26, 2011

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