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By Mary Stewart, Jim G. Petrie, Geoff Brent

"Life Cycle Assessment (LCA) is gaining increasing acceptance as a decision-support tool by which to evaluate the environmental performance of a product, process or service. This is evidenced by its inclusion in international policy documents (for example in the European Union’s Integrated Product Policy) and in environmental management standards (the ISO 14 040 series of environmental management codes relate to LCA). In response to this, the minerals industry has conducted a number of commodity-specific LCAs. These include studies for global production of a number of commodities including copper, nickel, aluminium and steel. In addition, a number of minerals companies profess to use LCA as part of their suite of project and technology assessment tools. Often, this collected use represents more a situation of “we do this because we’re told it’s good for business” rather than from any demonstrable evidence of this fact. This has led to a situation of much confusion and disillusionment within the industry, exacerbated by the obvious current limitations of LCA to accurately reflect the environmental performance of minerals and metals.Our point of departure here is that LCA, conforming as it does to the tenets of environmental systems analysis, is a valuable starting point, and that there is merit in exploring to what extent the methodology can be enhanced to better reflect the environmental performance of minerals and metals. Specifically, we explore here the further development of LCA to address the following:• Land Use issues• Consumption of Abiotic Resources including metallic and non-metallic minerals, water and soil)• Human and Eco-toxicity issues relating to mobility and bio-availability of metals• Salinityand address these through selected experimental and simulation case studies relating to energy- and base minerals production. Advances resulting from the United Nations Environment Programme/Society for Environmental Toxicology and Chemistry Life Cycle Initiative are presented in that they directly affect the application of LCA to mining, minerals and metals. Comments are offered on how best the mining and minerals industry might interface with future developments resulting from this Initiative in order that the Initiative can deliver outcomes which render LCA a useful tool for decision making in mining and minerals processing."

Jan 1, 2003

By M. Hermanus

1. INTRODUCTION It gives me great pleasure to extend my warmest greetings to everyone attending the 30th International Conference of Safety in Mines Research Institutes. I would also like to bid a special welcome to all of the international delegates who have travelled to Johannesburg to take part in what surely be a most rewarding session of deliberations. As you come together over next four days, you will have a wonderful opportunity to exchange ideas and information on strategies and practices for the implementation of sustainable patterns of development. The objectives of this meeting are both timely and far-reaching, as countries around the globe work towards the sustainable use of the world resources. Each of you brings a high level of expertise to these deliberations. I know that you will make the most of this opportunity to address the challenges and opportunities to highlight the most innovative and technologically efficient methods of social protection in order to ensure an increase in the quality of life, health, safety and living environment for the peoples of the Africa. Our country, although endowed with an immense and diverse array of mineral deposits, is perhaps best known in the mining industry for the fact that it is the world’s biggest producer of gold. Although South African gold production has declined over the past years and the industry faces serious problems, it is a myth that the South African industry is moribund. There is a new energy coursing through the South African producers which will ensure their powerful presence for many years to come, based not only on their domestic production but also and probably increasingly on their external operations. Africa features prominently in the latter category.

Jan 1, 2003

By Jerome P. Downey

Technologies developed within the field of extractive metallurgy to recover, concentrate, and purify metals and industrial minerals from ores, have served as the foundation for all of the subsequent environmental remediation, materials recycling, and waste management technologies. This paper discusses the application of classical extractive engineering principles to the development of a thermal process for the recovery of mercury from solid wastes. Process development is presented as a series of logical stages, which begin with a thorough characterization of the site-specific waste, move on to bench and pilot scale testing of the process options, and end with a functional process flowsheet. This paper also presents thermodynamic data on many mercury species of interest to the minerals, power, and chemical industries. These data can be used to model the speciation and recovery of the mercury as a function of various process parameters.

Jan 1, 2003

The spatial distribution of copper grades at the Mansa Mina project is highly variable due to the presence of high grade copper/silver/arsenic breccia bodies. Copper grades within the breccia bodies tend to average about 4.5% copper while grades in the surrounding stockwork average about 1.0%. The breccia is known to occur in the vicinity of significant controlling structures, however, the outline and therefore the thickness of the bodies are far from regular. Due to the high grade of these bodies a significant proportion of the value of the project is derived from the breccia tonnages. The irregularity in the outlines/thickness translates into an uncertainty in the breccia tonnage and therefore in the value of the project. Acknowledging the economic importance of the breccia bodies and the risk associated with the breccia tonnage uncertainty, significant additional drilling has been proposed to both understand the spatial distribution of the breccias and reduce project risk. The costs associated with this additional drilling are not inconsequential; thus, a reasonable question is ‘what value is derived from this additional drilling’? To obtain an answer to this important question, a simulation approach is applied. First the deposit is simulated using the existing drilling and the uncertainty in the resource is defined. Next the proposed drilling program is simulated and the simulated data are added to the existing data. Using this expanded data set a second simulation of the deposit is created and once again the uncertainty in the resource is defined. Using this approach, the reduction in the uncertainty in the resource can be determined. To convert this reduction in uncertainty (or reduction in risk) in the stated resource into a dollar value, a method of defining the increase in the project rate of return necessary to account for risk is presented. Using the two different rates of return, the difference in project NPV and hence the value of additional drilling is determined.

Jan 1, 2003

By M Coulthard, J Rivalland, K Dugan

Prior to 2001 Yallourn Mine has pumped approximately 1000 Megalitres of water per annum from aquifers beneath the mine floor in order to control aquifer pressures that were thought to have an influence on mine floor and permanent batter stability. In 2001 one of the deep aquifer pumps was shut down for five months in order to measure the aquifer recoveries. Prior to the shutdown a UDEC model was created in order to predict what level of recovery in the aquifer pressures would be critical to mine stability. The shutdown showed that the aquifer levels recovered and stabilised at levels that did not threaten the stability of the mine. The aquifers recovered to levels below the critical levels identified in the UDEC model.

Jan 1, 2003

By Gordon P. Riddler

IMMM Reporting Code 2001 – Some Developments -General definition of a Competent Person -Rules of Conduct with Guidelines -Table of Generic Terms with Guidelines -More specific to non-metallic minerals -Word ‘ore’ is not used for reserve/resource categories -More definitive on Mineral Exploration Results

Jan 1, 2003

By Qiang Yu

This paper reports on a research project supported by NSF, which aims at developing a multi-scale methodology for systematic microstructure prediction in thermo-mechanical processing of metals. This methodology is based on combining mesoscopic microstructure models with macroscopic process formulations and involves the following three main steps: (I) based on the given global processing conditions, the gross deformation patternof the entire workpiece is modeled using a continuum-based algorithm, (2) the resulting parameters are then extracted from the continuum-based simulation, post-processed and passed on to the mesoscopic numerical module, and (3) the microstructural changes are finally modeled at the mesoscopic scale. This approach is expected to overcome the disadvantages of current microstructure prediction practice employing empirical relationships between microstructural features and processing parameters. Keywords: Thermo-mechanical processing, Microstructure, Grain growth; Recrystallization; Mesoscopic models; Finite Element Method

Jan 1, 2003

By Ross D. Lawrence

"Comparable transaction analysis is the best known of the market approaches to valuation of exploration-stage mineral properties. The analysis of option and farm-in agreements can also provide useful guidance to valuators. While such approaches can be distorted by incomplete analysis, market-based methods are capable of providing consistent, credible results when carried out carefully with due consideration paid to all factors which buyers and sellers consider when dealing in the real market.RÉSUMÉRoss D. Lawrence graduated from the University of Toronto with a B.A.Sc. (Applied Geology-1956) and an M.Comm. (Mining Finance-1959). As a student and following graduation, he worked across Canada on a variety of mineral exploration projects.In 1962, he was one of the founders of Watts, Griffis and McOuat, and has practiced as consulting engineer since then. For the past 20 years, Mr. Lawrence has headed up the WGM valuation practice, responsible for a group of professionals which has carried out scores of valuations of mineral properties and mining companies. He is a Certified Minerals Appraiser of the AIMA and an active participant in professional affairs.INTRODUCTIONMineral properties without defined resources present one of the most challenging tasks to the mineral valuator. You will hear from others at this conference about the use of cost and income approaches to the problem of valuing exploration properties. This paper will concentrate on market-based approaches. Market based-approaches are based on the principle of substitution and include such techniques as:??Comparable transaction analysis (sometimes referred to as sales comparison analysis).??Farm-in commitment analysis??Rules of thumbAre there any valuation standards available to assist the valuator? In Canada there are none that apply to the valuation of mineral assets or securities. This problem is being addressed, at least in part, by the CIMVal committee of the Canadian Institute of Mining, Metallurgy & Petroleum (CIM)1. Further, the recently established Canadian Association of Mineral Valuators will be giving consideration to the adoption of valuation standards."

Jan 1, 2003

By S. E. Daniel

"Due diligence reviews are an essential part of mineral property acquisitions. One of the primary reasons to complete an environmental review prior to exploration property acquisition is to assess the potential environmental liability. It is critical to identify the potential reclamation costs or existing environmental liability associated with the exploration property. A review of the existing condition of the property and its history can allow prioritization of exploration targets and ease future expenditures for historic damages. IntroductionIn Canada and some other jurisdictions, the purchaser of a property is assumed to know, and is (in the absence of deceit or fraud) financially responsible for, what is purchased. A plea of ignorance, at least from the perspective of environmental liability, is not an acceptable excuse to avoid responsibility (Nelson, 1994). Therefore, if an exploration company (for the purposes of this paper, any organization conducting exploration work) purchases a property that has environmental contamination, the new owner is liable for the cost to reclaim the site to an acceptable level. The cost to reclaim the site is the environmental liability. The new owner is responsible for existing environmental liability of the property, even if the exploration company’s personnel were not aware of the problem. In simplest terms, buyers beware. Therefore, in order to protect the exploration company’s interests, the exploration manager should determine the characteristics of the property of interest prior to purchase or other involvement, and exercise due diligence.The term “due diligence” is often used in the mining industry. To ensure clarity, in this paper’s context, the author has chosen to use the following meaning: “… due diligence is used to describe a detailed data review, generally in connection with the purchase or sale of a mineral property, the approval of a large capital expenditure, or the borrowing of a large sum of money” (Smith, 1997).Directors of the exploration company are held liable for the decisions made, unless they have relied in good faith on,“…a written report of the auditor, or a report of a lawyer, accountant, engineer, appraiser, or other person whose profession lends credibility to a statement made by any such person” (OBCA, 1994)."

Jan 1, 2003

By Steven Wright, Sharif Jahanshahi, Shouyi Sun

"While there is a large industry based on recovering platinum group metals (PGM) from complex sulphide ores containing Cu and Ni, there is little information on the thermodynamics of the matte phase formed on smelting the ore and in particular the behaviour of Pt in the matte.The equilibrium between metallic platinum and industrial mattes was studied in a series of experiments where a small quantity of matte (5g) and platinum foil of 150 µm thickness (0.5 g) were equilibrated in magnesia crucibles at 1400°C under conditions where the oxygen and sulphur partial pressures were fixed.The chemical composition of the phases was determined from EDS analysis using a scanning electron microscope. Line scans were initially used to confirm that the foils had attained a uniform composition across their thickness. The composition of the matte was determined from analysis of an area of matte including the small metallic droplets and dendrites.The results of the equilibrium study are presented in terms of how the oxygen and the sulphur pressure affect the distribution of Pt, between the matte and the alloy foil (Lmatte/alloy). Other variables investigated were matte chemistry, i.e., the Fe content and the temperature. The activities of platinum in the mattes were calculated using a regular solution model describing the activity-composition relationship in the alloy."

Jan 1, 2003

By Ross D. Lawrence

"IntroductionOne of the methods used when applying the Market Approach to the valuation of a mineral exploration property is known as the Joint Venture Terms Method. The method is particularly useful for the valuation of early-stage exploration properties. Unfortunately, valuators are sometimes imprecise in distinguishing between joint ventures and other types of transactions.At VALMIN '94, Bob Appleyard1 proposed that, if one ignores the time value of money and the probability that the expenditure commitment would be completed, the formula to calculate the value ($V) of a property owned by Party B at the time of the deal would be:$V =$Ex (100-1%)/1% (Formula I)Where $V is the value of the property2Where $E is the expenditure commitment by Party A, andWhere 1% is the percentage property interest to be earned by party A.At PACRIM '99, Mike Lawrence and Graham Dewar3 referred to this method and suggested that there was an ambiguity in the formula proposed by Appleyard in 1994. Mike Lawrence referred to this problem again at VALMIN '014•Lawrence & Dewar suggested that the formulashould be:$V100% =($Ell%) x 100 (Formula 2)Where $V 100% is the value of the entire property,Where $E is the expenditure commitment by Party B, andWhere 1% is the percentage property interest to be earned by Party B.Subsequently, there has been considerable discussion in the AuslMM Bulletin5. In my view, this discussion has touched on a number of useful points, but generally has overlooked one essential element needed for an understanding of the correct application of the N Terms method. That essential element is to understand that there is a material difference between (1) entering into a joint venture arrangement and (2) the purchase of an interest in a property."

Jan 1, 2003

By D Hunter

A production information management system (PIMS) was recently implemented at Queensland NickelÆs Yabulu Refinery. Although a strong business case was developed to justify the significant investment in PIMS some potential beneficiaries remained sceptical of the anticipated benefits. The decision to install PIMS was justified as the on-line availability of continuous production data enabled the optimisation of some crucial operations resulting in significant cost savings, improved throughput and final product quality. Furthermore the rapid access to extended historical data has allowed the cause of repeated failure of equipment to be determined. The investment is expected to pay for itself within two years and has already contributed towards significant savings. This paper focuses on some of the diverse production improvements gained and compares the anticipated benefits in the business case to those achieved. A brief outline of the phased implementation of the OSIsoft PI data historian and complementary client software at Yabulu is included, along with details of the lessons learned.

Jan 1, 2003

By Jan E. Nesset, Phillip J. Mackey

"Studies have shown that there is a correlation between commissioning and start-up time, i.e. time to reach full plant design capacity, and the degree of innovation and technical/engineering uncertainty in the project design. The paper describes the types of start-up curves for plants according to the level of technology or uncertainty in the process design. The need to properly describe and understand the commissioning and start-up time is examined using these curves and the importance on project success is highlighted. A number of case histories of recent mining and metallurgical projects are also reviewed. Finally, the paper reviews how to better assess the level of start-up uncertainty associated with a project and makes suggestions for decreasing the commissioning time due to technological risk.INTRODUCTIOThe start-up of a new mining and metallurgical facility, a much anticipated event, is a critical step in the life of such a project. Achieving a successful start-up and reaching the design capacity on-time requires careful planning, a thorough understanding of the key technological and engineering components involved and a well-trained and adequatelystaffed start-up crew. In this paper, some of the aspects related to start-up of a mining/metallurgical project will be explored, and in particular, the impact of the technology component will be examined. In order to illustrate this, a number of case histories based on recent mining and metallurgical projects will be discussed. Ways of assessing and understanding the uncertainty associated with technological issues related to start-up of a mining and metallurgical plant will also be examined.The history on mining and metallurgy is full of success stories of great mines and mills that are now considered “company makers” (well known examples of such successes include the Horne mine for Noranda which had a 1 year start-up in 1926-27, the Dome mine for Placer Dome, the Grasberg deposit for FMI in Indonesia). Less well documented are specific studies relating to plant start-ups and what constitutes a success or a failure, however there are a few notable references in the literature and these will be reviewed."

Jan 1, 2003

By Deborah A. McCombe

"There are a number of important dates that must be disclosed when a Qualified Person (QP) is preparing a technical report for securities purposes. The dates are discussed in NI43-101 and the Form of the Technical Report, NI43-101F1. •,Effective date of the technical report •,Possible revision date of the report •,Effective date of mineral resources and mineral reserves •,Date of the personal inspection (site visit) •,Signature date of the date report (execution date) •,Date of the certificate of the QP •,Date of the consent of the QP The effective date of the report is basically the cut-off date for the information that is included in the technical report. The effective date should be close to the signature date. If there is too long a period between these dates, the QP runs the risk of new material information becoming available and then the technical report would no longer be current. The effective date is disclosed on the title page of the report and on the signature page. If a technical report needs to be revised to correct problems or disclosure deficiencies identified by the regulators, the QP will normally need to include a revision date on the title page of the report to distinguish the revised version from the original version. In these circumstances, the regulators will request that the original date of the report remain on the title page and the revised date will be below it. When a technical report must be revised, the QP must resign and date the signature page of the report and provide a new certificate and consent."

Jan 1, 2003

By G. A. Brooks

Increasing interfacial area through gas injection is one of the main methods for accelerating reaction between slag, metals, and gases in modern pyrometallurgical reactors. In slag-metal reactors, the generation of a large number of metal droplets into the slag phase through high gas velocity has a much larger effect on the overall kinetics compared to the enhanced mass transfer through mixing. Top blowing technology generates large interfacial areas (>300 m2/tonne) through high impingement gas velocity at short distances between the exit of the injection lance and the metal-slag interface. Phase separation may become a limit at the case of very high interfacial areas, though there is still only limited understanding of the trajectories of metal droplets in slag-metal-gas emulsions.

Jan 1, 2003

By M Spagnolo, M Ashley, D, L Reemeyer

PasmincoÆs Century Concentrator in North West Queensland commenced operations in November 1999. The nameplate production capacity of 500 000 tpa of zinc metal production in concentrate was achieved in August 2002. Completion of the production ramp up was successful due to the culmination of a number of initiatives throughout 2001 and 2002. Mine to mill interaction to understand and eliminate head grade related bottlenecks affecting Concentrator production and reduce feed variation. Grinding circuit process development û operating and process control strategies to improve stability and reduce grind size to support zinc recovery. Pumping upgrades to control spillage in ultrafine zinc flotation Low density zinc flotation strategy û to improve silica-sphalerite separation to improve zinc recovery while maintaining acceptable silica in final concentrate. Flotation circuit process development û froth crowders, froth cameras and reagent control strategies to improve primary zinc flotation performance. Review and implementation of longer campaigns between planned shutdowns to improve availability. Team reorganisation û to improve setting and implementation of metallurgical strategies. This paper describes these initiatives and their contribution in achieving the production target. It also notes the ball mill motor failures that delayed the successful achievement of the ramp up, and CenturyÆs response to minimise the production impact. The paper also outlines the capital improvement program that was implemented to improve zinc recovery to design 82.5 per cent recovery once the production rate had been achieved.

Jan 1, 2003

By Rodney J. Ishak

The reduction of Mn3O4 to MnO has been investigated in a thermobalance apparatus, The charge was composed of manganese ore (decomposed by heating/calcination or pre-reduction to mainly Mn3O4) and coke. The material was charged to a crucible, which was suspended in the balance. CO-gas was distributed through a grid in the bottom of the crucible. Two sizes of ores were used; 2.4-4.8 mm and 6,7-9.5 mm. Coke particles were in the size range 4.8-6.7 mm. Experiments were conducted in the 900-1100°C temperature range. The composition of the product gas was monitored continuously. External mass transport between bulk gas and particle surface does not seem to limit the rate of reduction. Assuming that both diffusion through product layer and chemical reaction at the interface between MnO and Mn)04 are rate controlling, the data was tried both in a shrinking core model and in a grain model using regression. The grain model gives the best physical description of the process, because the reactant is in fact a porous medium. With this model the effective diffusivity was calculated to be in the 1.5-6.10.5 m2/s range. The pore size was mainly between 0.1 and 10 um,

Jan 1, 2003

By Karl J. C. Harries

"9.1. INTRODUCTIONIn Chapter 5 of Volume I royalties are dealt with and several topics would appear to be duplicated in this Volume. However, Volume I may be looked upon as a general guide, whereas this Volume is a reference volume. It deals in considerable detail with specific provisions and concepts relating to royalties between private parties. This does not, however, mean that Chapter 5 can be ignored. It should be looked upon as a source of general information concerning royalties between private parties and as a negotiating aid intended to give an overview of various topics. You may well find that in its general approach it will lead you to ask a question which, hopefully, will be dealt with in this Volume .It should be remembered that royalty agreements are agreements with a particular focus, and so the concepts set forth in Chapter 1 apply to them. This chapter addresses a few considerations specific to royalties that will usually form part of an agreement rather than a stand-alone agreement.9.2. FORMAT FOR ROYALTY PROVISIONSIn many of the cases where royalties arise, they are adjunct to, or part of, other arrangements. For example, a royalty may form part or all of the consideration to be given to an owner upon purchase of his property, or it may arise if a joint venturer ceases to contribute to the venture and has his interest converted to a royalty.1 It is with such situations that this section primarily deals; if the royalty is contained in an agreement that is singularly, or primarily, concerned with creating it, then it is just a normal agreement.Commonly, by the time the right to receive the royalty arises, at least some of the other provisions of the agreement have been performed and/or become redundant. For example, in an option agreement the royalty will be a continuing obligation of the optionee, usually arising only after the option has been exercised.2 In a joint venture agreement, a royalty will often arise where the interest of a non-participating venturer has been diluted and converted to a royalty, in which case the recipient will usually become a passive party, entitled only to his royalty, and most of the rights that he enjoyed as an active venturer will cease to be effective."

Jan 1, 2003

During the first five years of operation, the Lihir gold mine has steadily increased plant throughput rate to over 4 Mtpa, well above the original design capacity of 2.8 Mtpa. Understanding how future variations in ore type impact on plant performance has been an integral part of LihirÆs development program. This paper discusses the key drivers for significant improvements to the plant, including a second oxygen plant, a pilot flotation plant, an autoclave heat recovery circuit, a pebble crushing circuit and additional autoclave feed pumping capacity. The result is a process plant with the flexibility to accommodate variations in ore type without significant loss of throughput.

Jan 1, 2003

All large open pits in Australia have been mined, or are planned to be mined well below the local water table. This raises several issues that impact on mine safety, mining costs and regulatory approvals. Some pits will be æwetÆ, where they are mined through permeable horizons and where there will be measurable groundwater inflows. These will require some form of dewatering. There may also be some difficulties in the disposal of excess water. Other pits, may be ædryÆ, where they are mined through impermeable material and there are no measurable groundwater inflows but where there are stability issues related to hydrostatic pressures within the pit walls. These may require some form of depressurisation. Some pits are a combination of both. Effective management of groundwater inflows and groundwater related stability issues and the development of cost effective and environmentally acceptable dewatering and depressurisation systems requires an understanding of site specific hydrogeological conditions and practical experience in what works best for different conditions. The presentation will include an outline of the key hydrogeological factors that impact on large pits, practical methodologies for achieving dewatering/ depressurisation, and some case studies from the Goldfields, Pilbara and North Queensland.

Jan 1, 2003