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By M. J. Virnig, G. A. Kordosky

Throughout time, the mining industry has been very successful in meeting the world's requirements for metals and materials while meeting the challenges of decreasing ore grades and increased emphasis on protection of the environment. This success has been due to the development and implementation of new technologies. A clear example of such a development over the past 25 years is the increasing use of leaching/solvent extraction/electrowinning for the recovery of copper from oxide and sulfide ores. The key to the successful introduction of this technology was the discovery and development of the hydroxyoxime liquid ion exchange reagents by General Mills Chemicals (now Henkel Corporation). An important role was also played by the close working relationships between General Mills Chemicals and Ranchers Exploration which resulted in startup of the first plant in 1968 and between General Mills Chemicals and Bagdad Copper which resulted in the startup of the second copper SX-EW plant in August of 1970. Following on the heels of the hydroxyoxime development came the commercialization of other new chelating reagents based on different chemical functionalities, i.e., beta-diketones, alkylated 8- hydroxyquinolines and sulfonamidoquinolines. This initial spurt of activity was then followed by a slowing of development in terms of new reagent functionalities. Activity has continued in terms of further optimization/improvement of existing reagent functionalities but the commercialization of new reagent functionalities has slackened. This observation reflects the fact that the development of new reagent functionalities for metal recovery has become increasingly more expensive such that the right combination of price and sales volume must exist in order to justify the investment required to bring a new reagent to the market place. Given the dependence of the mining industry on innovation to meet the needs of the future, one can ask how these new developments, particularly in new reagents, will occur. To arrive at an estimate of the costs involved in commercializing a new metal extractant functionality, particularly a chelating type functionality, a case study of the development of LIX ®* 34

Jan 1, 1994

Valuers of mineral properties should be aware that accountants are a major user of their opinions of value. Reliance by accountants can range from obtaining comfort that book values in balance sheets are not overstated to establishing values by which to assess the fairness of a takeover offer. Accountants using mineral property valuations clearly can't be expected to have the same level of expertise as the valuer and ""second guess"" the valuation. But they do have an obligation, under the ASC guidelines and their own professional standards, to'check the logic and reasonableness of the valuation before being able to rely on it. This means reviewing the valuation report for general sensibility, discussing the methodologies and assumptions with the valuer and being satisfied as to his competence and independence. This paper outlines how accountants use mineral property valuations, the level of scrutiny applied to such valuations and the problems commonly encountered in practice by accountants seeking to rely on them. The paper also explains how values of-mineral properties are established in company balance sheets and why these often differ, quite validly, from fair market values.

Jan 1, 1994

A broker relies heavily on mineral valuations and independent experts' reports to provide the fundamental information, both technical and commercial, which provides the basis of estimating the sharemarket value of securities and underlying assets. It is important to appreciate the significant variance that can occur between the market value and other types of valuation at a particular point in time. In general, most experts' reports and valuations seek to provide estimates of technical/fundamental or ""fair"" value which correspond to the Corporations Law and accounting standards requirements. They do not usually attempt to estimate (stock) market values and it is usually and quite correctly the broker's task to estimate market values on the basis of a technical appraisal and consideration of all other commercial, market and financial influences. Therefore ideally, an independent experts' report or information memorandum will include material relating to commercial and management aspects of a company as well as detailed technical reviews and fundamental valuations. Wherever sensible cash flow projections can be made, cash flow-derived valuations, usually based on discounted cash flow (DCF) calculations, remain the preferred valuation methodology. Brokers in general would not argue with this preference. However, there is a paucity of examples of valuations where alternative methods are applied as a check on the reasonableness of a DCF-based estimate.

Jan 1, 1994

By D. W. Euler, D. G. Brophey

"In an attempt to address the issue of rising labour costs, and to improve productivity, a laser-based system to guide underground LHDs and trucks has been developed. This comprehensive system is known as the Opti-Trak system.Essentially, the vehicle is equipped with front and rear-mounted lasers which scan a reference strip mounted on the drift back. The vehicle follows this reference strip and in addition, based on reflective bar codes mounted beside the reference strip, initiates certain functions (i.e. dump cycle, speed change, brake check, etc.). Any programming that is drift-specific is handled by the positioning of the reference strips and bar codes. Consequently, the vehicle can easily travel to many different haulageways or branches, providing the reference strip and bar codes are in place.The advantages of this system are an immediate elimination of haulage operator costs and an increase in available hauling time to 7 hours out of an 8-hour shift as compared to the typical 5Y2 out of 8 hours that a manned haulage system offers.This paper describes the Opti-Trak system and the benefits to be realized from automation of mine haulage requirements."

Jan 1, 1994

By N. L. Bingham

The mining industry's image is molded by what the general public knows, or thinks they know about mining. As we prepared for the production of Caterpillar's educational film, Common Ground, we first had to find out exactly what the public perceptions about mining were. Before we could educate people about mining, we had to find out what they already thought. As we broke down those perceptions, we were able to narrow our focus to relevant, realistic approaches for the film. We found out what people didn't know about mining. And most importantly, we singled out the facts they should know... facts that could create more favorable attitudes. This research was instrumental in our final direction for the Common Ground project.

Jan 1, 1994

By McMahon D

The approach to valuations at the Normandy Poseidon Group is a measured and methodical process that utilises skills sourced from a number of different disciplines. Whilst being subject to a strict set of guidelines, it is also sufficiently flexible to be able to cope with the considerable variety across the resources industry. The group uses Discounted Cash-Flow (DCF) techniques extensively in order to develop a base valuation. Other external factors (eg the market) are, however, also taken into account when forming a view on value. Other methods of valuation are used in tandem or as alternatives depending on the task. DCF techniques are an important tool but would never be used in isolation. Considerable care must be given to developing the DCF analysis as its components (eg discount rate) are prone to misuse. Whilst the valuation process is quite detailed and scientific, it is really only as good as the inputs or assumptions (technical, financial, etc) that are used. The methodology used remains consistent whether the group is undertaking the corporate planning process or making an acquisition.

Jan 1, 1994

By Phil A. Keele

"IntroductionGeneralThe Genesee Coal Mine is a joint venture of Fording Coal Limited and the city of Edmonton. The mine supplies thermal coal to the Genesee Generating Station operated by Edmonton Power and is located approximately 75 km southwest of Edmonton (Fig. I).Under the terms of the joint venture agreement, Fording Coal Limited has designed and developed the Genesee Coal Mine. Fording also operates the mine which has a minimum economic life of thirty-five years. Mine development started in the spring of 1987 with the construction of the dragline erection pad and mine service complex. Major development of mining areas was carried out in 1988 with the construction of haul roads, powerlines, topsoil recovery, etc. Mining officially commenced on December 14,1988.The mine produces 1.6 million tonnes of coal per year and employs 65 people. MiningGround conditions have turned out to be very poor, as expected with the majority of the overburden in the first few years a soft lacustrine clay with minor amounts of fine-grained glacial till. To compound matters, what was expected to be a relatively uniform coal subcrop turned out to be a very irregular erosional contact.The coal mined at Genesee is a sub-bituminous Class B thermal coal with approximately 16070 ash, 21% moisture, 8300 Btu/lb and 0.27% sulphur on an as-mined basis.The primary piece of mining equipment used at the Genesee Coal Mine is a M8200 walking dragline. It has an effective operating radius of 100.6 m, a 50.5 m3 bucket, and weighs approximately 3860 tonnes yielding a ground pressure of III KN/m2•Figure 2 illustrates schematically the single pass mining sequence presently employed at the Genesee Coal Mine. The M8200 is used to lift all coal out of the cut, the coal being placed in stockpiles on the prepared pad .This method maximizes coal recovery under the conditions where spoil failures due to poor material would otherwise put men and equipment at risk. The coal is subsequently loaded by the coal shovel operating on the same bench as the M8200 dragline and delivered to the plant as required.All mined areas, as required under Alberta Legislation, are to be returned to an agricultural land capability equal to or better than that which existed prior to mining. Reclamation activities, as a result, are an important and integral part of the mining process. A complete list of the primary mining equipment deployed at the Genesee Operations appears in Table I."

Jan 1, 1994

By L. Drisdelle, S. Gendron

"Survival in today's business climate requires participation of all employees in a Total Quality Management Program encompassing everything - ""safety, quality of products, quality ofet1ch and every job done, and of course production "". We all know what needs to be accomplished, but struggle with how to do it, especially in an industry which has not always experienced management/union cooperation, and mistrust is still present.This paper describes a process to improve team work and employee involvement in Inco's nickel carbonyl refinery at Copper Cliff The process involves facilitatorship training for all employees, and a system for reinforcing and accomplishing the required behavioural change. The system is described in detail and a number of examples are presented. At the refinery, the staff is starting to understand as Max DePree recently wrote ""Without Quality Behaviour, you cannot have Quality Product"". IntroductionThe Copper Cliff Nickel Refinery (CCNR) is Inco's largest and most modern nickel refinery, which celebrated its twentieth year of successful operation in April 1993.The heart of the refinery is the Inco pressure carbonyl (IPq plant which produces high purity nickel pellets and specialty powders by refining an approximate 80% nickel granule feed. The carbonyl plant is a modem chemical plant with very special and demanding requirements for safety and environmental protection due to the toxic nature of the refining gas.Since 1987, there has been an emphasis at CCNR on a comprehensive Total Quality Improvement (TQI) Program which was designed based on recognizing customers' needs for improved systems for quality management. This program is customer oriented and comprises such elements as team organizational concepts, customer audits, process assessment and internal quality auditing.A detailed review of progress was made in early 1991 and it became apparent that the ""ownership"" of the TQI program was not broad based. In fact, the program was very much a staff driven effort and fell far short of total employee involvement and relentless continuous improvement that are now considered essential to remain competitive and stay in business.Inco staff has now come to regard that early phase of our TQI program as ""the technical aspects of total quality improvement"".The safety experience was also puzzling. Even though the safety statistics were good with an average lost time frequency of 1.6 for the last five years, the perfonnance improvement had plateaued and remained pretty much the same. Clearly a new approach was required if significant progress and continuous improvement was to be made."

Jan 1, 1994

By B. Macdonald

In 1991, roofbolts were introduced as a primary support for inseam retreat longwall entries at CBDC's Phalen Colliery. Increasing mine depth (+550 m) necessitated replacing conventional inseam steel sets in these entries because they were being severely damaged during wall retreat and subsequently causing gate end problems. Roofbolts had been used in the Sydney coalfield between 1949 and 1963 in room and pillar working, however, some concerns arose with using roofbolts as a primary support in long (2.2 - 3.4 km) single entry roadways. In order to alleviate these concerns, a phased approach was adopted whereby conventional steel densities remained along with roofbolts. The roofbolt design was such that the roofbolts would be the primary support and the steel sets would experience little or no loading. A detailed geotechnical monitoring program was developed by both CBDC and the Cape Breton Coal Research Laboratories technical staffs. The results of this monitoring were used to build-up confidence in roofbolts and subsequently reduce the steel set densities until eventually only roofbolts were used as a primary support. This paper will discuss briefly the phased introduction of rootbolts at Phalen Colliery and more specifically the development of geotechnical data collection and interpretation.

Jan 1, 1994

Milling operations at Misima Mine are discussed, with specific reference to the application of energy and cost saving concepts. Design stage innovations and post-commissioning developments are covered. General operational problems are described with specific reference to problems associated with operating in a remote location.

Jan 1, 1994

The ASC has a dual role of business facilitator and law enforcer. Only certain types of expert report are of interest to the ASC. The powers of the old Companies Code and the Corporations law are compared. NCSC Policy Release 149 was dependent on the prescriptive powers given to the NCSC in the Companies Code. The Corporations Law does not give the ASC power to prescribe the contents of expert reports. The requirement now is for all necessary information. Research evidence is that some investors want simpler prospectuses while others need more detail. The ASC's examination of expert reports is after registration of primary documents. This leads to a necessity for experts to maintain adequate records.

Jan 1, 1994

The words ""Uncertainty"" and ""Risk"" pervade every discussion about mining exploration and investment. Perhaps these terms are subjectively understood by industry professionals, but objective portrayal of these concepts outside the industry is a woefully undeveloped science. This paper addresses current industry understanding and practice regarding quantitative risk assessment techniques, and provides examples of the application of three of these techniques. Probabilistic techniques for financial risk assessment are valuable adjuncts to conventional financial analysis, and address a range of issues not assessable by any other means. The value of whole-of-project probabilistic risk assessment is currently debatable for decision-making purposes, but is seen as important as a mechanism to focus attention to the critical issues that ultimately impact on project success. The dissection of project capital into risk and non-risk components provides valuable insights into risk characteristics not readily quantifiable in any other way. This technique also provides a framework for more objective ""what if?"" scenario evaluation and for the capital structure of resource projects. Finally, mechanisms for the valuation of undeveloped reserves are examined, and guidelines suggested. The importance of reliability in production cost estimates is highlighted and the impact of early development on reserve valuations is discussed. The importance of economics throughout all stages of the evaluation process is fundamental.

Jan 1, 1994

By Fair A, Oxenford J

Syncrude Canada Ltd operates one of the largest open pit mines in the world at Fort McMurray in northern Alberta, Canada. In 1993, Syncrude mined and processed 131.2 Mt of oil sands to produce 67.0 MBbls of synthetic crude oil (SCO). This represents approximately 13 per cent of Canada's crude oil requirements. In addition to the oil sand mined, Syncrude moved approximately 96 Mt of overburden ahead of the mining operation in 1993. Since start-up in 1978, Syncrude has had outstanding success in improving the safety and reliability of its operation. Much of this success has been achieved by reducing risk through the application of new and improved technology. This improved safety and reliability has resulted in, among other things, very significant improvements in operating costs and profitability. This paper discusses some of the technology applications that have been introduced at Syncrude to reduce risks to people, equipment, operations and the environment. Three specific examples will be discussed in detail to demonstrate how reductions in risk have greatly improved the operation.

Jan 1, 1994

Mine drainage and mine reclamation are topics of major interest to the mining industry, federal and local governments, and the general public. This publication and its companion three volumes are the proceedings of a conference held in Pittsburgh, Pennsylvania, April 24-29, 1994. There were twelve sessions (69 papers) that dealt with mine drainage, including modeling, geochemistry, prediction, treatment, control strategies, characterization, hydrology, and case studies. These sessions comprise volumes 1 and 2. The six sessions (34 papers) that dealt with reclamation and revegetation of disturbed lands are included in volume 3. Volume 4 includes the six sessions (34 papers) that dealt with such topical issues as fires at abandoned mine sites, subsidence, hydrology, mine wastes, and policy. Poster session presentations are represented by 49 papers and 92 abstracts that have been placed in the back of volumes 2, 3, and 4, consistent with the subject of that volume.

Jan 1, 1994

By K Whelan

The Land Access Branch of the Mines Division of the Northern Territory Department of Mines and Energy is responsible for Aboriginal Liaison and cross-cultural matters that affect the Department. In essence, it exists to provide a basis for communication between the Department, industry. Aboriginal organisations and Traditional Owners. The paper outlines the various ways in which this is accomplished including the preparation of detriment submissions for pending land claim hearings, the use of promotional material to support access to Aboriginal Land for NTGS Mapping Programs and field work, and advice/assistance on exploration and mining issues.

Jan 1, 1994

By G R Ryan

Recent events have raised the issue of whether, and if so when and how, an explorer may gather data from a mining tenement or permit which is held under the relevant mining Act by another party. Two situations arise: that of the small operator who wishes to prospect, and if successful mark off, ground held by others by virtue of the local form of exploration permit; and that of a regional explorer who may wish to enter on to some one else's existing mining tenement within the region of interest. The legal situation varies from state to state. At present the broad consensus seems to be that, provided consent is given, small-scale prospecting on another's exploration permit is at least tolerated if not actually provided for by the relevant Act. Entry onto a granted tenement to carry out any form of exploration is, however, prohibited in all jurisdictions unless consent is given. Furthermore it would appear that the proposal and conclusion of a joint venture agreement places certain obligations upon the party proposing to carry out exploration. These conclusions apply where ground surveys are proposed. Where data acquisition is by aerial survey the situation is much less clear, principally it would appear, because up to now little thought has been given to it. If trespass applies at ground level, at what height does it cease to apply? Can aerial magnetometry or photography be classified as prospecting? Is there an obligation upon public authorities who carry out remote sensing to make data available to the holders of mining tenements within the surveyed areas? Moves are now afoot to address these and other considerations, and it would be in the interests of everyone if a national approach to the problem could be adopted from the beginning. Certain suggestions in this respect are put forward.

Jan 1, 1994

By J G Reid

In the period since 1989 the Yabulu Nickel Refinery of Queensland Nickel has undergone a transformation both in terms of the nickel laterite ore feed and the refined nickel product. These two changes were mutually supporting, as will be shown in the following paper. It had been realised since the early-1980s that the Greenvale orebody would be exhausted by 1992. Consequently planning had been in progress throughout the 1980s for the importation of overseas ore as a replacement for the Greenvale ore. The existence of extensive lateritic ore deposits in New Caledonia and Indonesia made these locations the natural focus of attention. With the three Japanese ferronickel smelters sourcing their nickel garnierite ore feed from these locations it was relatively easy for the miners to supply the overlying limonite ore to Yabulu. This limonite ore was previously discarded as waste. The Yabulu refinery now receives about 85 per cent of its ore from these two overseas sources. The transition from Greenvale ore to imported ore occurred gradually between 1989 and 1993. It was during the ore importation planning stage of the mid 1980s that Queensland Nickel commenced the technical investigation which led to the ammoniacal solvent extraction (ASX) plant installation and the product change from nickel oxide to nickel metal.

Jan 1, 1994

By T O Aspinall

The Australian mineral industry involves a diverse range of expertise and skills. Within that, the mining industry, representing mine planning, mine management and equipment operation, has capital intensive, high productivity equipment and a small but skilled workforce. Continuing education for all personnel in the workforce after formal school courses will be an important contribution towards improving competitiveness. The non-tertiary sector represents a significant proportion of the workforce and requires as much attention as the tertiary educated group. Competency Based Training is now being developed for the mining industry in Australia under the National Training Board and the mining industry is well represented in establishing standards and curriculum. TAFE is a major source of accredited courses but some mining companies are also developing internal courses not necessarily for external accreditation. Articulation of such accredited courses to tertiary mining engineering courses has been considered. The education and training of equipment operators through continuing education requires attention to operating skills, an understanding of the productivity factors under the direct influence of the operator and providing product quality to the customer. The education and training of mining engineers has been widely covered and continuing close involvement of the mining industry is required to ensure well balanced courses in technical and interpersonal skills as well as motivation to continue learning for life. Postgraduate research is a part of continuing education but the mining industry has to continually address the adequate recognition of post-graduate qualifications for the increased technical or management expertise and the development of better analytical and problem solving skills which can be directed towards improving competitiveness. More attention has to be paid to providing adequate financial incentives to attract suitable students, particularly after attaining some experience, and to address their professional career path with a company so they are not significantly disadvantaged by undertaking post-graduate studies. The Chartered Professional Engineer status as provided by The Institution of Engineers, Australia to qualified candidates is being considered by The Australasian Institute of Mining and Metallurgy as a further recognition of a member's specific expertise and competence in mining and metallurgical engineering. Continuing education plays a major part in the maintenance of the expertise and competence required for a professional engineer to develop and also to retain chartered status. Continuing education will be a significant part of the education and training of all the mining workforce towards improving the competitiveness of the mining industry. The major challenges will be the motivation of all towards lifelong learning and the integration of the various programs towards providing the opportunity for a steady and satisfying career progression.

Jan 1, 1994

By Jaques A. L, Heinrich C. A

Mt Todd lies towards the south end of the Pine Creek Geosyncline, sandwiched between the Cullen Batholith and the Edith Falls Basin, in an area of regionally metamorphosed sandstones, siltstones and shales. The Batman deposit, some 3 km west of Mt Todd is a sheeted quartz vein system hosted within greywackes of the Palaeoproterozoic Burrell Creek Formation (Finniss River Group). The gold-bearing quartz veins, trending 010¦-020¦ and dipping 60¦-70¦E, are commonly 0.5 to 5 cm wide and occur at intervals which are from 10 cm to 1 m apart. Gold tends to be restricted to the quartz veinlets and immediately adjacent country rock. Grade Control utilises two 4 m 'collar' samples which are collected from each 8 m production blasthole. The irregular distribution of the quartz veins and erratic gold mineralisation has resulted in a disseminated 'salt and pepper' type of gold occurrence, with only a poorly defined footwall. Delineation of ore and waste blocks for mining uses an approach which combines the smoothing effect of kriging with a pragmatic view of the raw data. Large ore blocks with simple geometry help to minimise mining dilution, reduce block variance and give good reconciliations to interpreted ore tonnes and grade. Daily mine face advance is reported against truck counts and provides continual comparison with budgeted production. All data processing uses Gemcom software, together with Lotus spreadsheets.

Jan 1, 1994

The constructionhunnelling industry in Hong Kong has taken an upturn during the last few years due to the commencement of works to relocate the International Airport to Chek Lap Kok Island. The Airport Core Program consists of ten individual projects including roads, landfill, bridges and tunnels to build the airport and link it to the mainland of Hong Kong. Part of one of these projects is Cheung Ching Tunnel located on Tsing Yi Island. The proposed tunnel consists of a 1.6 km twin tube road tunnel through the island's central ridge, taking three lanes of traffic each way. Each tunnel is 16 m wide - (the widest road tunnel in Hong Kong) and are 10 m high. ICI Explosives (China) saw an opportunity to supply bulk explosives to the Cheung Ching tunnel and contacted ICI Australia to determine availability of a bulk system for tunnel blasting, and assist in its introduction. This paper discusses the methodology behind developing that bulk system to suit a large tunnel drill and blast operation. It also looks at the problems encountered along the way, from the development of the product to the application of the system in the tunnel and the eventual success of introducing a bulk system into a large tunnelling project.

Jan 1, 1994