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By K. Spence

"The notion of “value” has always been a subjective and contentious issue. Indeed, value is in the eye of the beholder. There are as varied methods and practices for valuing property, as there are industries in which they are applied. For example, there is replacement value, insurance value, salvage value, appraised value, book value, and fair market value, to name a few, although in the mining industry, valuations usually refer to fair market value.In the Canadian mining industry, at present, there are no comprehensive regulations or guidelines that specify which approaches or methods are appropriate for use in the valuation of mineral projects. In January 1999, The Mining Standards Task Force of the Toronto Stock Exchange and the Ontario Securities Commission recommended that the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) establish a committee to review and advise on approaches and methodologies for the valuation of mineral properties. Among the approaches to be considered are included the following: the discounted cash flow approach, the cost approach, the option pricing approach and the market comparables approach. In addition, methodologies differ depending on whether the project is at the exploration stage or the producing stage.The CIM Special Committee on the Valuation of Mineral Properties (CIMVal) expects that its final report will form the basis for a Canadian code or standard for the valuation of mineral properties."

Jan 1, 2002

By U B. Pal

Downsizing and decommissioning of nuclear facility operations is increasing the stockpile of various different grades of Radioactive Scrap Iron (RSI). Disposal of this material not only represents significant resource and value lost, but also necessitates long term monitoring for environmental compliance. The latter results in additional recurring expense. It is desirable to be able to decontaminate the RSI to a very low level that can be recycled or used for fabrication of containers for RSI disposal instead of using virgin metal to fabricate the container. Electro-Slag Remelting and Refining (ESR) is often used for decontaminating radioactive contaminated sources of scrap iron such as stainless steel. Non-radioactive oxides of cerium are used to simulate the radioactive oxide contaminants of Uranium and Plutonium. The success of the ESR process is strongly dependent on the capacity of the slag to rapidly incorporate the radioactive contaminant (simulant). In this study we have measured the slag-metal partition coefficient for cerium and investigated the reaction mechanism for the dissolution CeO, in the slag.

Jan 1, 2002

By D A. Kepert, I J. Tehnas, M A. Pudovsk

BHP Billiton (BHPB) was the first company to start iron ore mining in the Pilbara at Mt Goldsworthy in 1966 through Goldsworthy Mining Limited (GML - then Consolidated Goldfields Australia, Cyprus Mines and Utah). Operations later started at Newman on Mt Whaleback in 1969 with the Mt Newman Mining Joint Venture (MNM û then comprising American Metals Climax û AMAX, Colonial Sugar Refineries û CSR and BHP). In 1986 it acquired majority ownership of MNM, and at the same time the previously 100 per cent BHPB owned but undeveloped Yandi property came on board. Purchase of Jimblebar (formerly McCameyÆs Monster) occurred in 1990 and full ownership of Goldsworthy followed in 1991. With the exception of Jimblebar (100 per cent owned), all mines are now 85 per cent BHPB and the balance with Itochu and Mitsui. This evolution of the company resulted in an eclectic mix of mines/ores, each with their varied exploration and evaluation histories. Discussion of some aspects of these histories, and reflections on changes in exploration-related activities with particular reference to discussion of advances in geological understanding since the 1960s forms the basis of this paper. BHPB presently has open cut mines at four main centres û Newman, Jimblebar, Marillana Creek (Yandi) and Yarrie û and is currently developing the former GML Area C near Yandi. With the exception of NewmanÆs Mt Whaleback mine and immediate satellites, all are contract operated. Ore is carried on BHPB railroads (696 km total) for export through the companyÆs Nelson Point or Finucane Island shipping facilities at Port Hedland. Some is directed to the BHPB Boodarie Iron hot briquetted iron plant near Finucane Island. Over 73 Mt of ore was produced by BHPB in calendar 2001, and the company has now mined over 1500 Mt in Western Australia since their operations at Yampi Sound first started in 1956.

Jan 1, 2002

By E. Dendy Sloan

An overview of hydrate properties is given, with emphasis on unusual deviations from ice, the most common solid water form. Reliable sample preparation and reproduction of in situ hydrates provide the foundation for all hydrate science and engineering. Relations are given to connect the three domains in the title: (1) micro-scopic properties measured with Raman, NMR, and diffraction spectroscopy, (2) meso-scopic properties measured with single crystals, and (3) macro-scopic properties measured with pressures, temperatures, volumes, etc. A principal illustration relates micro-scopic and macro-scopic domains. Experiments provides the basis for improving statistical thermodynamics model for these compounds. To date, this model is one of the most commonly used industrial statistical thermodynamics applications, based upon the classical model of van der Waals and Platteeuw (1959). Microscopic measurements and simulations indicate model assumption improvements, resulting in the next generation of the statistical thermodynamics for improved macroscopic property prediction.

Jan 1, 2002

By Christian Divis

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Jan 1, 2002

By Steve Dillingham

With the millennium fever all but faded, we look to a new century filled with awe and excitement. We step forward in time, marveling over the achievements of the 20th century and wondering what the next 100 years could possibly bring. Will there ever be another time that produces such technological advances, economic progress or social changes? Keeping pace with the awesome accomplishments of the past century has not been an easy task and we must prepare ourselves for the possibilities of the future. Take, blasting safety for instance. We all know that safety is personal - a culture - promulgated not only by the company by which you are employed, but, by a sense of your own personal responsibility that must constantly be reinforced through awareness, training, and discipline. Great strides have been made in blasting safety since its crude beginnings, however, safety consciousness becomes even more important as technological advances and scientific progress are made in the coming years. It all begins with a positive safety attitude where every employee habitually examines each situation encountered, identifies potential hazards, and takes precautions to avoid those hazards.

Jan 1, 2002

In recent years there have been many changes in mine ownership due to the on-going rationalisation towards larger mining companies. Larger companies inevitably find it hard to manage small mining operations and in many cases smaller mines do not fit corporate resource, production and profit criteria. Smaller companies are more suited to managing these medium or small scale mines and are tendering for the purchase or lease of mines that larger companies wish to dispose of. In addition to these factors there has also been a trend (especially in Western Australia) for mines to continue operating at ever increasing depths. This in turn has led to more mines operating in high stress environments and experiencing damaging seismicity. Assessing the viability of seismically active mines from a takeover or purchase point of view should involve analysing the risk profile of every aspect on mining that could be affected by adverse seismicity. This includes assessing current and alternative mining methods, mine designs, support systems, extraction sequencing, monitoring and blasting. This paper includes discussion on items that need to be assessed when considering the purchase of seismically active mines, with experience gained from some recent studies in Western Australia. In these cases it was apparent that quantification of previous seismic history on itÆs own was a totally inadequate method of assessing minewide seismic risk potential. A more holistic approach is required, taking into account all aspects of relevant data, all the minewide effects of seismic activity and all possible means of mitigating those effects.

Jan 1, 2002

By T. R. Ellis

The vast majority of valuations produced for mineral properties using the net present value method provide an estimate of investment value or use value. Such an estimate can be a long way from the price that the property would actually sell for if placed on the market. Indicators from the market need to be used to validate or modify the net present value calculation if market value is being appraised. The comparable sales and replacement cost methods used in the appraisal of urban buildings generally fail when used in the appraisal of mineral properties. Other methods of sales analysis are introduced. Guidelines for what a minerals appraisal report should contain are presented.

Jan 1, 2002

How the Australasian and Canadian Codes (VALMIN and CIMVal) approach mineral property valuation is described. Brief comment is also made on the International Valuation Standards CommitteeÆs interest in a global valuation standard for Mineral (Extractive) Industries and the South African SAMREC initiatives to adopt a VALMIN-like Code. The conventional tripartite classification of valuation approaches into those that are Market-based, Income-based and Cost-based is outlined. It is best practice to use as many of these approaches as possible (and as many methods as reasonable in the particular circumstances), given the quantity and quality of the data available on the Mineral Asset (which depends upon the state of development of the mineral property). The use of specific methods must satisfy the basic considerations of logic and reasonableness and the purpose of the valuation. The competence, judgement and repute of the valuer are critical factors, since all valuations are time and circumstance specific. What constitutes æMarket ValueÆ in the different jurisdictions is discussed and definitions are given. Challenges facing the globalisation of a VALMIN-type Code for the international Minerals Industry are the influence of real estate valuers and the US jurisdictional idiosyncrasies. This is mainly due to a fixation on real property rights with a preference for using real estate-like comparative sales techniques (Market Approach) to the exclusion of Income-based approaches; a regulatory reluctance in the US to accept that Resources have considerable value; and the International Accounting Standards BoardÆs preference for Historical, rather than Current Value, accounting.

Jan 1, 2002

By B Morey, J Gordon, P Mackenzie

Mount Tom Price Mine is peerless amongst Rio Tinto iron ore resources around the world. It has provided Hamersley Iron with premium quality, high lump yield haematite ore over the last four decades. The Brockman type bedded ore, containing bands of haematite and shale of varying thicknesses has been traditionally bulk mined to either high-grade or low-grade based on alumina cut-off grades. As open pit mining has progressed deeper into the orebody approaching the keels of the megastructure, increased structural complexity, chemical and physical variations in the ore, unfavourable ore presentation and reduced blending options have become an issue for grade control and may have serious impacts on product stockpiles. The grade blocks and boundaries must be accurately defined according to geological contacts and where identified, selective mining may be applied. Therefore in-pit geological mapping is the definite and ultimate guide to achieve target grades and grade predictions. Under this scenario, it is absolutely vital that the mine geology team ensures this geological knowledge is passed onto the related departments including mining crews as well as to the short- and long-term planners.

Jan 1, 2002

By Franco Oboni, Iain G. Bruce

The design of tailings containment structures relies on well-understood engineering methods being applied consistently. Unfortunately, not all facilities are designed or managed to the same level of competency. To standardize procedures, the Mining Association of Canada (MAC, 1998) prepared a “Guide to Tailings Management.” It recommended review of designs and an assessment of the risks associated with tailings impoundments be implemented during all phases of amine life. This paper describes how the quantitative risk assessment (QRA) process can be used to define risks associated with the design, construction and operation of a tailings management facility. And it discusses how, once the risk tolerability curves (RTC) are defined for a project, they can assist the risk management (RM) process.

Jan 1, 2002

By Jane Wright, Brent Blanchard

Question: When it comes to demolition projects, what could be more demanding than asking a blaster to explosively demolish a stubby, heavily-reinforced concrete structure in the heart of a third-world country? Answer: Asking them to fell only half. Such was the charge recently put forth to Controlled Demolition Group (CDG), Yorkshire, UK when they were called to Casablanca, Morocco to provide a stunning demolition effect for the upcoming Universal Pictures film Spy Game, starring Robert Redford and Brad Pitt. Director Tony Scott (True Romance, Enemy of the State) contacted the renowned demolition firm after seeing their work on television and receiving recommendations from explosives manufacturers. The film’s producers then asked the CDG team if they could bring down half of an apartment block as part of a dramatic suicide bomber sequence.

Jan 1, 2002

I have headed this paper with a question and for the impatient among you ûthe answer is no we have not run out of developments but, and it is a big æbutÆ, we need to be innovative and ahead of the game or ænoÆ will be æyesÆ before we know it.Why do I believe that our future lies in innovation? Thirty years ago, knowledge doubled every 14 years. It is now doubling every seven years. In 1965, Gordon Moore, one of the founders of the chip maker Intel, made an observation that growth in memory chip performance is doubled every 18 months which became known as MooreÆs Law. Now there is fibre law, where the transmission line capacity doubles every nine months and storage capacity, under disc law, doubles every 12 months. What does this mean? Well, firstly there is a massive rise in information flow and availability with no limits in growth for at least the next ten years. Secondly, unlike our grandfathers, we are most unlikely to be employed by the same firm for our working career - we may not even have the choice to stay with the same company. In a phenomenon Richard Foster and Sarah Kaplan (2001), borrowing from Schumpeter, termed æcreative destructionÆ, companies are unable to sustain market-beating levels of performance for more than ten to 15 years. In the 1920s the turnover rate of companies in the United States was 1.5 per cent, so a company could employ almost three generations from the one family. A company had a half life of 60 years. In other words, you could well be in the same working environment as your grandparents. Today the churn rate is estimated to be eight to ten per cent. A company has a half life of five to six years. So for large companies, as an employer or employee or as a contractor, your working environment has a 50 per cent chance of changing in five years. Innovation is the driver of this rapid rate of change. Innovation is not for the faint hearted (Cutler, 2001) but it is the core for success in the global economy. The rate of change in our world is not going to decrease. We must learn, not only to manage change, but to enjoy the process of changing û to ride the tsunami of the knowledge economy.

Jan 1, 2002

By K Osman, P Bennett

The mining of an underground orebody requires development both in waste and ore before stoping commences. Regardless of what metal is being extracted, the waste development is minimised to reduce the cost per unit of metal mined. At the Western Metals Zinc Kapok mine site, reducing the cost per tonne of lead and zinc mined is paramount. Decline waste development costs can be minimised by methods such as increased gradient or reduced drive size. Ore development will also involve some mining of waste. The degree to which waste mining can be minimised will depend on the thickness and dip of the orebody. The drive geometry will also determine the percentage of waste within the face. It is by mining methods such as resue mining that selective mining may be used to maximise the amount of metal mined and reduce waste dilution. Resue mining can be used around a set of selection criteria established by the mine site. These selection criteria will determine how resue mining can be applied to the mine site. Selection criteria include firing times, number of headings available, acceptance criteria for percentage lost metal, dilution and most importantly operator acceptance. The single pass or two pass resue mining method should be chosen depending on the site acceptance criteria and selection criteria. The Western Metals Zinc Kapok mine site has established a set of parameters which accept the two pass resue mining method for the mining of the ore drives. The blasting results from a single pass resue method were reviewed during more recent trials in a single heading. Through a comparison of results, the parameters allowed the decision to determine the applicability of resue mining and its current form to Kapok. This paper outlines the parameters set by the Kapok mine site, reviews these in relation to the two forms of resue mining and examines the criteria which make this mining method applicable for Western Metals Zinc.

Jan 1, 2002

This paper describes the technical development of the Newman beneficiation plant over its 23 years of operation and how this development relates to the mine ore reserves of high-grade and low-grade ore. It also discusses the importance of the beneficiation product grades in the overall blending of shippable products from a range of mines to optimise overall ore resource utilisation. Also discussed is the importance of the ore reserve reconciliations in resource utilisation. Data is provided on the capacity and quality improvement results of the plant upgrade, carried out in 1999. This shows how the original capacity upgrade targets have been exceeded and the additional quality benefits that have been obtained from this capacity.

Jan 1, 2002

By P. J. van der Walt

The paper1(hereinafter BG) by two respected sampling experts contains sound theory and logic that can?t be directly refuted. Nevertheless, a practitioner knows that there is a broader context in which the practice of sampling takes place. This broader context, being less well defined than the theory of correct sampling, receives correspondingly less exposure which this commentary??prompted by? BG?seeks to rectify. ?Correctness? of a sampler is the central concern of BG, where it is presented as a sharp ?black-and-white ?distinction. Accordingly, comments below are grouped under the following headings: ?Correctness in practice ?Without correctness, what can be done? ?The broader context.

Jan 1, 2002

By T Mattiske

The Fimiston Open Pit (commonly referred to as the æSuper PitÆ) is a part of the Kalgoorlie Consolidated Gold Mines Pty Ltd (KCGM) operation in Kalgoorlie-Boulder. KCGM manages the Fimiston Open Pit, the Mt Charlotte underground mine, the Fimiston Mill and the Gidji Roaster for its Joint Venture Owners, Newmont and Barrick Australia. KCGM produces up to 850 000 ounces of gold per year. The KCGM operations are located on the historical Golden Mile on the outskirts of the City of Kalgoorlie-Boulder, about 600 kilometres east of Perth Western Australia. This traditionally underground mining centre has been worked since 1893, yielding in excess of 50 Moz of gold from ore with an average head grade of 10 g/t. This represents approximately ten per cent of the gold produced in Australia and one per cent of the gold produced in the world. The Fimiston Open Pit is essentially an aggregation of what were known as the Judd, South, Paringa, Croesus/Eclipse, Central, Brownhill, Drysdale, Morrison, North and Horseshoe pits into one continuous large-scale operation. The old Fimiston Underground Operations (included the Main, Croesus, Chaffers, Lake View, and Perseverance shafts) were also located within the area of the Fimiston Open Pit. The underground operations closed in 1992 due to high mining costs.

Jan 1, 2002

Every step on the path from the mine to the smelter invites a comparison between material inputs on one side and outputs plus accumulation on the other. Or put simply, between what you think you have produced with what you find you have at hand. The discrepancy between these sets of comparisons is the error. Following that error in a systematic and objective manner is a way to improve the mineÆs measurement systems, that in turn leads to more accurate accounting for ores, metals and concentrates. Because the control of production is so tightly coupled with the accounting of materials, any lasting improvements in materials accounting will benefit the predictions of materials movements and quality. This translates to more reliable planning and scheduling in stockpile management, logistics, shipping and marketing. The statistical tools described are direct adaptations from the long-standing methods used to maintain the quality of manufactured product in the discrete parts industries. Their use in the process industries, of which mining is one, requires some care owing to the continuous nature of ore extraction and its variable properties. The tools can be used for problem diagnostics and as early warning systems. In common practice many professional staff, in attempting to get a perfect reconciliation between expected and observed results, try to explain away the error or bury it completely. The methodology advocated here requires a different mindset because the error must be given pre-eminence for lasting improvement to be realised.

Jan 1, 2002

I would like to start by thanking The AusIMM and CSIRO for organising this excellent conference and inviting me to give a keynote address. Today I will focus on some broad observations of our industry, and leave the technical discussion to my colleagues who are presenting specific papers covering a wide range of topics. In preparation for this paper, I did a little research into the early history of the Pilbara iron ore industry. I was fascinated to read a quote attributed to Harry P Woodward, the Government Geologist in the late 19th century, before Federation. Mr Woodward described the Pilbara as an iron ore country and observed that æthere is enough to supply the whole world should the present sources be worked outÆ. Mr WoodwardÆs prediction could be viewed as wishful thinking and certainly at Hamersley Iron I would gladly envisage the Pilbara supplying the worldÆs entire iron ore needs! In reality, Western Australia accounted for 162 million tonnes or 36 per cent of seaborne trade in 2001. An impressive effort, but not quite the total world supply as Mr Woodward imagined. But we shouldnÆt dismiss these historical musings out of hand û perhaps we could see it as a challenge for the industry to æwork outÆ the present sources. We all know there is abundant iron ore in the Pilbara, and I expect it is only a matter of time until our collective technical expertise and sheer hard work will enable us to utilise its greater range of ore types. Opening up new markets will be a key pathway to creating additional value from the Pilbara ores. Today I will examine the state of play of our industry and the major influences that shape our business at present, before considering what the future might hold for us. I canÆt guarantee the accuracy of my crystal ball, but the stability and long-term nature of our industry does enable some reasonable hypotheses on where we are heading. I will also spend some time examining the way in which the iron ore producers are working to maximise the value of their resource base and obtain more from their existing capital assets.

Jan 1, 2002

By FM Murray

SAFEX International is a global organisation with more than 85 members, all of whom are manufacturers of explosives. On joining each member signs a declaration saying that they are willing to exchange information with regard to any accidents or near misses they may have in order to prevent the recurrence of the incident. SAFEX International was formed 50 years ago in Europe and has now built up a database of more than 700 accidents in the explosives business. Once every three years, an International Congress is held in which members address specific safety themes associated with the explosives industry, and also give details of "what went wrong?", "why?", and lessons learned. The next Congress will be held in Amsterdam between the 29th May and the 1st June 2002. This paper describes the operation of SAFEX International, which is dedicated to the international exchange of experience on industry connected accidents of the explosives business.

Jan 1, 2002