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By G J. A Dewar

The Australian Corporations Law generally requires Independent Expert Reports to be presented in support of capital raising or in defence of mergers and takeovers. The introduction of the VALMIN Code in 1995 (and its recent revision issued as the VALMIN Code, 1998) made Assessment and Valuation Reports in these circumstances much more comprehensible than before because of its key requirements for transparency and materiality. By forcing the Independent Valuer to provide an explanation of the reasoning behind the estimation of a particular resource asset, VALMIN allows the reader to clearly see any error or illogicality in the valuation methodology used and to seriously question or even reject the resulting value. Even though many elements of resource asset valuation practice are undeniably subjective, there must be some basis of objective rationality to it. Independent resource asset Valuers are the essential link between mineral explorers/miners on the one hand and brokers/analysts/fund managers/investors on the other. The minerals and financial industries both expect them to not use inappropriate or invalid valuation methods and illogical steps within these methods. This paper examines some of the less sensible ways in which some of the main techniques that Valuers commonly use to assess the fair market value of mineral properties have been applied in recent instances. The authors hope to discourage the adoption or perpetration of the æWhat-number-did-you-have-in-mind?' approach. It is MINVALÆs view that as many methods as possible should be used in any resource asset valuation. If any of the resulting estimates are in approximate agreement (particularly if they were derived using the less subjective of the available methods), ie if they cluster, they are probably more persuasive as being the Preferred Value of the asset than outlier values within the Valuation Range.

Jan 1, 1999

By Dan Michaelsen, Warwick Stewart

"PT Kaltim Prima Coal (KPC) is a large-scale truck and shovel operation mining thermal-coal in East Kalimantan, Indonesia. The operation produces 15 million tonnes of coal and mines over 120 million bank cubic metres of overburden annually. Approximately 35 percent of the waste rock is classified as potentially acid forming. Acid drainage must therefore be managed to prevent acid formation from spoil dumps and mined-out areas.KPC aims to prevent acid production in dumps by covering potentially acid forming spoils with materials identified as non acid-forming. The covers, built to engineering standards, minimise the flux of oxygen and water to pyritic spoils, thereby controlling the oxidation reaction, and reducing ARD discharge to negligible rates. Cover designs and cover materials vary according to stability, materials availability, equipment availability, and cost effectiveness. A modified field net acid generation (NAG) test procedure has been developed at KPC to identify and segregate overburden geochemical types. This paper discusses the ARD management strategies and operational procedures adopted by KPC to manage potentially acid forming waste rock. The development and field application of the NAG procedure at KPC is presented in a companion paper. Analytical"

Jan 1, 1999

By B. Cavender

Investments in new technology are often intended to improve the production or cost performance of existing operations. The economics used to justify these projects can be flawed, however, if they do not adequately consider the potential benefits of the alterative: the fully optimized use of the facility's present equipment and personnel. While new technology can be effective, dramatic improvements in production performance can also be achieved through the rigorous application of standard industrial engineering and operations management practices. An intermediate approach may also be effective: many basic improvements In the mine or plant necessary to support new technology will be equally effective when implemented for the facility's present operators. Firms who optimize their present operations are able to save the capital and avoid the risk associated with new technology. These firms will also be able to capitalize more quickly on new technology when it is implemented.

Jan 1, 1999

By J. R. D. Gravel, D. A. Poland

"The induration of iron ore pellets has always utilized prefired pellets to protect the pallet cars from the environment of the induration furnace. This paper presents the process used to obtain superior upper sidewalls. These heat resistant castings are used on induration pallet cars, and their life improvements by as much as 400% is a significant step towards the reduction of the prefired (or hearth layer pellets.) The benefit to the industry in the removal of the hearth layer is improved overall productivity. IntroductionThe Iron Ore Company of Canada (IOC) operates with production facilities located in Labrador City, Newfoundland and Sept Iles, Quebec. It has recently been acquired by North Limited, an Australian based resource oriented company. Prior to its acquisition, IOC has examined several methods of operational cost reductions. One of these was an examination of indurrating pallets. Pallets are composed of numerous assemblies and sub-assemblies. The examination of the upper sidewalls began as an intent to increase the operational life of the component. The anticipated net effect was to be a reduction in the overall pallet maintenance cost. All of the components and assemblies have undergone a severe scrutiny. IOC has found that the success of the project has depended upon not only the technical competency of all parties involved, but also upon the ability to share risk, to be innovative, and to find a partner with whom the development can proceed without fear and yet with accountability. IOC has found in Cast Steel Products (CSP) such a partner in the field of pallet development. This paper will undertake to explore the progression into the arena of partnering between IOC and CSP. CSP and IOC met in the fall of 1994. The work of re-engineering the pallets began with an initial order for 36 pallets in March, 1995. The work on the upper sidewalls involved segregation of the effect of alloy development versus physical geometry development. The nature of partnering between the two companies allocated alloy development to IOC and physical geometry development to CSP, yet no advancements were made in either area without the close co-operation or the involvement of both partners."

Jan 1, 1999

By Armin D. Ebner

A hetero-f1occulation model is developed to calculate the net force exerted on a paramagnetic nanoparticle that is moving in the proximity of a magnetite particle that is fixed or supported within an open flow and magnetically energized packed bed. Important variables investigated include the size and surface charge of the particles, the magnetic field, the ,flow velocity, the electrolyte concentration and the magnetic susceptibility of ,the nanoparticle. The ?influence: of other naturally occurring forces, such as hydrodynamic and DLVO(Le., van der Waals and electrostatic) forces on the magnetic attractive forces between the magnetite particle and the nanoparticle are also examined. This model reveals the feasibility of using magnetite particles instead, of stainless steel as the energizable element for high gradient magnetic separation.

Jan 1, 1999

By W. Hitchcock

To enable the analysis of stability for a mine feasibility study a variety of geotechnical engineering parameters need to be obtained. At the early stage of a project it is usual for those responsible for the study to require a wide spatial distribution of RC holes in order to define a resource at the lowest possible cost. By the time a geotechnical study has commenced drilling priorities have usually switched to improving the definition of a resource, by drilling with diamond coring methods in the central area of the main orebody. The usual timing for geotechnical data collection is therefore after a wide distribution of holes have been drilled but which contain little geotechnical information. Conventional methods employed usually involve estimation methods, including book values and examination of disturbed core, or expensive additional drilling. With downhole geophysical methods we can economically take advantage of existing holes to obtain continuous values for density, defect orientation and ranking, elastic modulus values, unconfined compressive strength estimates and fracture frequency. This paper presents the results of a geophysical study and discusses the advantages and potential pitfalls of the method as compared to conventional methods of data collection.

Jan 1, 1999

By M. Wason

An Ore bed magnetic liner element is made of permanent ceramic magnets embedded in a rubber molding. (See figure 1) They are difficult and expensive to manufacture correctly. Therefore, the lining for a complete mill is expensive, as high as 400% more than conventional rubber liners. The magnets are not very resistant to impact as they are very brittle. Mills of 12 feet or more can use only I inch balls; mills under 12 feet can use balls of 1-1/2 inches. These liners are therefore used in regrind applications with small balls or in secondary pebble mills. Rubber liners for these applications last a long time, so if life was the only consideration, the pay back for these liners would be longer than the life of the mine. The Ore bed liner and its bed of ball chips or magnetic ore is relatively thin and the surface of this bed has a high coefficient of friction. The liners are made so that opposing poles are situated next to each other and that the mill shell and the bed of ore or ball chips completes the magnetic circuit. (See figure 2) The combinations of these properties results in a very efficient liner. Due to the low profile of this bed, there is no material that is lifted too high, so we have a very compact charge with very high attrition, good for fine grinding. These liners have shown a 10% ball consumption reduction and a 10% lower power draw for the same capacity. Due to the magnetic orientation, the bed is formed in a wave shape along the lines of magnetic force. Tests conducted at a copper mine in the southwest United States have confirmed these findings. The mills where the liners were tested are 10.5 feet by 16 feet Hardinge regrind mills operating as overflow ball mills.

Jan 1, 1999

This paper examines some of the important aspects of mineral taxation policies and practices, with reference to the mining tax regimes of selected Pacific Rim countries (see Tables 1 and 2). The following subjects are addressed:what is æmineral taxationÆ?, basis for mineral taxation, types of mineral taxes, objectives of the mineral taxation regime, best practices, and mineral royalties. Many countries, in some cases with the encouragement and assistance of international funding agencies, are actively assessing the international competitiveness of their mining tax regimes with a view to attracting investment. However, these countries recognise that the mining tax regime is not the only consideration that is taken into account by prospective investors. The countryÆs geological prospectivity, physical infrastructure, labour force, political risk, and regulatory system are also important factors in the investment decision making process. Although it is probably true that an attractive mining tax regime will not necessarily attract mineral investment, there is a real possibility that an unattractive regime can drive away investment. For example, Hugo Dummett, general manager for discovery at BHP, hinted recently that BHP could cease exploration in Russia in the absence of positive tax changes. Dummett is reported as saying that if taxes æend up being as onerous as they are now, we really have to rethink why we are hereÆ (Mining Journal, London, November 27, 1998).

Jan 1, 1999

In the estimation of recoverable resources, geostatistical techniques such as Multiple Indicator Kriging require a change of support correction to derive theoretical recoveries based on an assumed level of mining selectivity. The change of support models most widely used in practice entail model based generalized corrections either on a global or local basis. Examples include the affine and indirect lognormal methods. Change of support corrections derived empirically through short-scale conditional simulation realizations often show notable differences compared with theoretical corrections determined using model variogram parameters. The existing changes of support models are reviewed and an alternative method is proposed.

Jan 1, 1999

By G. Van Weert

Separation of minerals by shape has received little attention, since minerals normally do not break into different shapes during crushing and grinding. However, comminution of consumer wastes generates opportunities for novel separations based on particle shape. For instance, ductile plastics are broken into longer curved shapes, whereas brittle plastics yield angular particles. Using spouting beds for particle separation in water requires controlling the spout's instability. The preferred geometry for such redesigned spouting beds is reported. Plastic cylinders, discs and spheres were separated as a function of rising water velocity and amount of particles in the system. By using 5 mm particles, differences in settling behavior could be video recorded.

Jan 1, 1999

By R. Dekkers

Non-metallic inclusions in liquid steel are mainly formed during killing. As far as these particles are not captured by the slag, they are found in the cast steel where they can deteriorate the mechanical properties. Inclusions may also disrupt the continuous casting process, affecting thus directly the quality of the steel and the production capacity. Steel pin samples from the Sidmar plant (Belgium) were taken in different steps of several ladle treatments and in the tundish. Also slab samples were studied. All samples concern the same type of low alloyed aluminium killed steel. The non-metallic inclusions were isolated from the steel matrix and investigated with scanning electron microscopy and energy dispersive spectrometry. The evolution of the non-metallic inclusions is described by their number, size, shape and elemental composition. The main non-metallic inclusions present are aluminium oxides and spinel type compounds.

Jan 1, 1999

By D. Kump

The Bullfrog Mine is an underground goldmine that uses the underhand-cut-and-fill mining method. The portal was established on June 18, 1991. Mining is expected to be completed by the summer of 1999. This paper starts by discussing what it took to get from nothing to 2000 tons-per-day backfill, and ends with a hindsight commentary on things that did and did not help.

Jan 1, 1999

By Zajber A, Kulchen R, Letzel D, Weyer A, Schwellenbach J

The search for modem casting plant concepts today focuses more and more on the harmonisation and optimisation of overall concept lines to obtain a continuous quality control and reduce the cost of production (Figure 1). Fin I As far as continuous casting plant concepts are concerned, this specifically requires an optimal adaptation and flexible operation when converting liquid steel into a directly processable product without any in-between treatment. Continuous casters need to fully satisfy the requirements of both the upstream steelmaking facilities as well as the downstream rolling facilities.

Jan 1, 1999

By W. J. Spat

Political risk is an integral part of the mining business in Northern Andean countries. Peru, Ecuador, Colombia, and Venezuela all have a higher than average political risk compared with other South American countries. Successful operations in such contexts require: 1. Good political risk information; 2. A thoroughgoing political risk management plan; and 3. A strategy to deal with political risk perception on the part of the investing public. Obtaining quality political risk information, developing a political risk management plan, and addressing political risk perception are the foci of this work.

Jan 1, 1999

By P. Dauphin

"CANMET’s Mining and Mineral Sciences Laboratories have developed the Canadian Mining Technology Network (CMT-Net), a website to provide industry with up to date information on technologies in several areas. This paper gives background on the Mineral and Metal Processing sector, describes the steps leading to the development of the websites strategy and gives a tour of CMT-Net. IntroductionThe government of Canada is developing a strategy aimed at fostering the development of value-added activities in the area of mineral and metal processing (MMP). Natural Resources Canada (NRCan) and Industry Canada will partner in delivering on this strategy. Instrumental in defining the main thrusts of the value-added strategy was a series of consultations held across Canada with representatives of companies and organizations active in the sector. The objective of the consultations was to identify barriers to the development of activities which add value in the sector, as well as point to positive factors.Following the consultations, a discussion paper was produced, “From Mineral Resources to Manufactured Products: Towards a Value- Added Mineral and Metal Strategy for Canada” (Natural Resources Canada, 1998). The paper reviews the sector’s structure and main statistical information, lists some of the positive factors and barriers to value-added activities and defines a new partnership between industry and government that will lead to more valueadded activities. The main objective of the paper is to serve as a discussion document between stakeholders during the development of the strategy."

Jan 1, 1999

By Kirlk Yeager

"Ammonium nitrate (AN) is commonly mixed with a wide variety of additives to produce specialty formulations. Two additives commonly utilized are sodium nitrate (SN) and sodium nitrite (SNi). Application of the nitrite is primarily limited to gassing of emulsions. The nitrate, however, is incorporated in a wide variety of formulations. The effect of both these materials on the thermal stability of AN was examined. Experiments initially utilized lab-scale testing methods (sub-milligram sample size), such as differential scanning calorimetry (DSC), with scale-up to cook-off analyses (16 g) eventually applied. Labscale testing indicated that the presence of SN and SNi (both at 5 wt%) produced no harmful effects on the thermal stability of AN. The cook-off results did not agree with those from the lab-scale analyses, with both SN and SNi creating tremendous thermal destabilization of AN. These effects were seen at additive levels as low as 0.1 wt%. When SNi was employed as the additive, cook-offs became violent enough to create explosions in the testing apparatus. Although SN did not create as spectacular a destabilization, it did lower cook-off temperatures to approximately the same level as SNi. The dangerous situation created by SN andSNi seemed to be limited to cook-offs conducted in sealed vessels. If the SN/AN or SNi/AN formulations were allowed to cook-off in vented vessels, the thermal destabilization of AN did not occur. These results seemed to indicate that even “trace” amounts of what might ordinarily be viewed as benign additives could create significant destabilization of AN-based explosives under proper circumstances. Conditions created by blocked pumps, or deep boreholes could well overlap those produced in sealed cook-off vessels. In addition to showing the hazards potentially created by “benign” additives, the study also stressed that experiments designed to evaluate thermal hazards must include duplication of field variables to the fullest extent possible. "

Jan 1, 1999

By John T. Ling

"This paper describes the operation of a rope haulage used as the main system of transportation in an underground coal mine. Prince Colliery, which is operated by the Cape Breton Development Corporation, has been in operation for 23 years and produces 1.2 million tonnes of coal annually. The mine extends a distance of 8000 metres under the Atlantic Ocean. All personnel and supplies are transported by means of an endless rope haulage system consisting of a train of rail cars that are operated by an electric engine on surface. The wire rope is 15 km long and weighs 63 tonnes. The system is believed to be the longest of its type used in an underground coal mine. The design of the system, safety features of the haulage, and problems encountered during the design and construction are described. IntroductionCoal has been mined commercially in Cape Breton, Nova Scotia since the 1800s. Several coal seams that are part of the Sydney coal fields, dip toward the north and northeast out under the Atlantic Ocean at angles between -4 and -15 degrees. Coal has been economically mined at depth in excess of 1200 m and more than 11 km from the coastline.Traditionally, single and double drum hoists have been used to haul the coal to the surface and also for transporting the workers and the materials required for mining up to 8 km. With the introduction of mechanized mining methods in the late 1960s, conveyor belts began to replace rope hoists for coal transportation. Improvements in hoisting system design also allowed for drums that could wind up to 6100 m of 32 mm wire rope in 15 layers.These hoists are commonly referred to as “drop hoists” because they take advantage of the gradient of the slope to assist in allowing the mine car train to reach the end of travel. The cars travel on steel rails and the rope is guided by rollers to reduce friction in the system."

Jan 1, 1999

Over the last 15 years working in the mining, construction and extractive industries, one of the areas that has always concerned and at the same time drawn the author to it is the application of drilling and blasting in the underground development mining and civil construction tunnelling fields. In that time, the author has come across many drives and tunnels that are larger than design or badly damaged in the perimeter or both. When the question is asked as to why this is the case, the reply is generally æthatÆs the way it is and always has beenÆ. Sometimes it is blamed on bad ground, bad drilling, bad explosives, bad initiation or just plain bad. Most operators build a dilution factor into development and tunneling costs as an acceptance of overbreak and similarly pattern bolt everything to overcome excessive perimeter damage. This paper will attempt to unravel some of the mysteries behind perimeter drilling and blasting in underground drives and tunnels and discuss methods to reduce overbreak and therefore reduce costly dilution and to minimise perimeter damage which in turn will allow more cost-effective ground support. It should not be assumed that better drilling and blasting alone would automatically allow an operation to reduce ground support. The operator must still æreadÆ the ground and its characteristics in order to ensure sufficient ground support is placed to allow the operation to progress safely. This paper will not go into the intricacies of bolting, meshing, shotcreting, concreting and other ground support, but it will use indicative costs for the primary areas of drilling, explosives, excavation and labor to show the magnitude of cost-efficiencies which can be obtained through improved drilling and blasting applications. Drill and blast remains the most flexible and cost-effective method of underground excavation as long as it is applied safely and effectively.

Jan 1, 1999

By Joel A. Huffinan

"This presentation is being given to better inform the audience of the dependability of precious metal analysis by fire assay. A brief explanation, however, of standard fire assay exploration procedures will be given. An overview of other types of analyses by fire assay will be discussed as well, and the operation of a modern day assay laboratory.IntroductionThe use of lead oxide for the fire assay process dates back to the finds in Troy II and the Cappadocian Tablets about 3,000 B.C. Some advances have been made in the basic procedures due to instrumentation and electronics, but the fusion and cupellation procedures used in fire assay remain much the same as during this period.In 1600 AD. Agricola was the first to take a scientific approach to fire assay recording methods and procedures used (Hillerbrand and Allen, 1905) [1]. Since this period, much of the recognized research into the analysis of ores and metals was carried out in the late 1800's and early 1900's prior to World War II, and again after the deregulation of precious metals. The renewed interest in precious metals mining and metallurgy are due much to advances in precious metals heap leaching in late 1970's."

Jan 1, 1999

By Jon C. Yingling

Lean manufacturing, pioneered by Toyota, has been credited with the most significant improvements in production efficiency and product quality since the transformation from craft manufacturing to mass production in the early 20th century. It represents a comprehensive philosophy for structuring, operation, control, and management of production systems that is believed to have wide applicability. This paper outlines major lean manufacturing principles and discusses their potential for application in the mining industry.

Jan 1, 1999