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By R Morrison, R Dunn

In many mineral processing operations, the reported production figures for an accounting period may not make the best use of available data. While most of the mathematical approaches, such as check-in/check-out, mass balancing, used in effective metallurgical accounting strategies are well understood, the sources and magnitude of measurement errors generally are not. As part of the æAMIRA P754-Metal Accounting and ReconciliationÆ project, a study was undertaken at the Northparkes copper/gold concentrator near Parkes, New South Wales to examine the data used in their concentrator metallurgical accounting system. This paper summarises the results of a detailed examination of the mass measurement systems around the concentrator as well as the primary sampling system used for grade estimation. The goal of this work was to develop practical techniques to quantify the error (ie both accuracy and precision) of the measured metal accounting information. With this information, statistical confidence levels for this data can then be calculated. If the errors are small, the effect of error in each piece of measured data can then be propagated to other calculated production figures such as recovery and feed grade using a statistical technique called æthe propagation of errorÆ.

Jan 1, 2007

By W. A. Smith, M. C. Bekker, C. Marnewick

Projects or project-orientated approaches have become a common form of work in nearly all sectors of economies. This has led to concepts such as ‘projectified’ and ‘project orientated’ organizations. By defining projectification of a company, industry, or economy as the share of project work in total work, one can reasonably determine the impact that project management, and by default projectification, has had on that company, industry, or economy in terms of staff optimization and allocation. This paper presents the results for such a projectification study of the South African mining industry. This sector has long been a significant contributor to the country’s economy from a gross value added (GVA) and employment point of view. Understanding the impact of projectification and the project management way of work on this industry may potentially add significant value to both the mining and project management knowledge areas. We show that although the mining industry is considered by some to operate in archaic ways, the level of projectification has increased over time, and now represents approximately one third of all work conducted.

May 1, 2021

By K Fiedler, A Newell, P D. Munro

Test work is the foundation upon which the success of projects and subsequent operations is laid, reflected in Professor Arthur Taggart’s pithy observation: ‘Make your mistakes on the small scale and your profits on the larger scale’. Indeed, Professor AllanTrench has succinctly noted that ‘Get the metallurgical characteristics wrong and you don’t have a project’.With deposits becoming lower grade, more structurally and mineralogically complex, final products requiring lower levels of impurities and tailings management demanding more attention, test work now assumes even greater significance in the acceptance and successful execution of a project. This paper is the first in a series aiming to stimulate thought on the metallurgical test work process by getting back to the fundamental basics through exploring and providing some guidelines for the metallurgical testing world, noting preferred practices as well as precautions and mitigations. This covers the key characteristics of metallurgical test work programs, including what needs to be done, sample selection, quality control and associated drivers, and most importantly, selecting, assessing and managing test work facilities. CITATION:Newell, A, Munro, P D and Fiedler, K, 2018. Metallurgical test work – between a rock and a hard place, in Proceedings 14th AusIMM Mill Operators' Conference 2018, pp 15–32 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 29, 2018

The decision to contract or owner mine should be independent of, and should be made before, definitive estimated cost comparisons could be available. There is substantial potential risk of estimated cost comparisons being flawed due to difficulties in compiling comparable estimates for differing business objectives, errors and omissions or because of significant bias. In the current economic environment, escalating cost pressures potentially lead to increased incidence of disputes in mining contracts. The apparent cost of contractorÆs profit and overheads has tended to become more significant to owners. Economy-driven trends towards higher levels of performance and commercial risk for contractors, and the potential for more adversarial, difficult management; with attendant disputation between contractors and owners, have encouraged development of so-called ærelationship contractsÆ û partnering or project alliance contracts. The paper discusses the issues, circumstances when owner mining or contract mining is favoured and perceived advantages and disadvantages of contract mining. The implications of owner-perceived core business and core skills and outsourcing are also discussed. Techniques of introducing objectivity into the decision to owner or contract mine using matrix analysis or benefit comparisons are described. A disciplined procurement process should deliver a decision to owner or contract mine independent of, and prior to, any definitive comparison of estimated costs. A generic procurement process model is provided as a basis for discussion. Risk is discussed generally and as a significant factor in comparison of estimated operating costs. Consideration of risk and any prudent cost treatment are promoted as necessary pre-requisites to any comparison of estimated costs. The paper develops the concept that the decision to owner or contract mine should be based on real benefits that become obvious in the early stages of the development, particularly the procurement process; and before definitive estimated cost comparison can be available. In the context of this concept estimated cost comparisons tend to be confirmatory. Problems with comparing estimated ownerÆs operating costs with tendered contract prices are also discussed, particularly recovery of capital cost of equipment; and the owner minerÆs trade-off of operating risks for the residual contractorÆs margin attributed to overheads and profit. The paper concludes that sole reliance on a comparison of estimated ownerÆs operating costs with tendered contract prices in deciding to owner or contract mine is questionable and likely driven by a need to satisfy specific in-house customers.

Jan 1, 2003

While there have always been mining activities on the outcrops of the copper deposits around Tsumeb, large scale mining activities in Namibia only started in colonial times. Originally focusing on the known deposits, the then German Geological Survey and independent geologists soon discovered significant deposits all over the country. This eventually lead to intensive mining operations all over the country on copper, gold, diamonds, fluorspar and finally uranium. Ever since those days, mining has been one of the major economical factors of Namibia?s development, as shown in picture 1. In the Central Namib Desert mining on base metals started in 1901, and first uranium deposits were discovered as soon as 1910, later followed by others, this did, however, not lead to any mining activities on those uranium deposits in the following decades. [ ] The upswing in the use of nuclear energy in the 1960s and early 1970s triggered some extensive uranium exploration worldwide and also in Namibia. Several airborne radiometric overviews were conducted by the Geological Survey at this stage and eventually the first uranium mine was commissioned in 1976. In the following three decades, the focus of prospecting activities in Namibia shifted away from uranium again. However, since 2000 the forecast for a developing and growing global economy and its even stronger growing energy demand have triggered a large number of nuclear energy projects worldwide, thus increasing the installed nuclear energy generation capacity from 387 GW today to more than 490 GW in 2025.

Jan 1, 2011

By Felipe Poffo, Flávio Messas

Due to the high level of competition in tooling sector, a necessity to increase the level of processes and assets management has initiated. Based on the World Class Manufacturing methodology, applied mainly in serial production industries, we have challenged ourselves to adapt the main concepts and implement them in a tooling company. After one work year, we could notice 29% productivity improvement in the bottleneck process, 25% cost reduction in outsourcing, standardization of the processes, 8% reduction in direct labor. Consequently, it was possible to implement a financial reserve and a long term planning cash flow.

Nov 22, 2018

"Increasing demand for timely and accurate information about flotation plant performance requires metal accountants to increase the scope and reporting frequency of plant production. This trend has brought in-process inventory estimation at the forefront of metal accounting issues. Such significant in-process inventories can be locked in diverse process equipment (bins, holding tanks, flotation cells, thickeners, pipeline, etc.) or in stockpiles (ore, concentrates, tailings, etc.). Practice has shown that boldly ignoring these in-process inventories or the errors associated with their estimation lead to unreliable metal balances thereby creating confusion in plant production planning and operational performance assessment. To this extent, the characteristics (physical bounds, spatial heterogeneity and residence time) as well as the available measurements (volume, density, humidity, mass, composition, etc.) of each unit/section found in a generic flotation plant are jointly reviewed with respect to the particular metal accounting issues they present. The daily and monthly metal accounting tasks are then reviewed together with possible methods for obtaining reliable inventory estimates including different procedures for end-of month reconciliation.INTRODUCTION Most of the cost reduction initiatives of the mining industry aim at improving capital efficiency and asset utilization. Among the possible paths through which these goals can be achieved are mine-to-metal optimization, real-time plantwide process control (Hodouin, 2011) and knowledge sharing databases (Bascur & Linares, 2006). However, the successful implementation and subsequent monitoring will ineluctably results in an increased demand for timely and accurate information. This more than often requires metal accountants to increase the scope and reporting frequency of plant metal production. A striking example of such scope expansion is the Minas-Rio iron ore project in Brazil (Anglo American, 2013) having a pipeline route of 525 km between the concentrator and the concentrate shipping area. Several other mining companies have also set an increased frequency for their key performance indicators thereby shrinking the metal accounting period from monthly to weekly and daily. Those concurrent trends have brought in-process inventory estimation at the forefront of metal accounting issues. Indeed, as illustrated in Figure 1, improving trading reactivity requires improvements in production planning which strongly impacts the requirements for reliable metallurgical accounting. Furthermore, practice has shown that boldly ignoring significant in-process inventories or the errors associated with their estimation can lead to unreliable metal balances. In other words, since metal balances are the cornerstones of metal accounting, some of the risks associated with important business decisions are linked to errors associated with in-process inventory measurements."

Jan 1, 2014

By Lv Guozhi, Niu Liping, Liu Yan, Zhao Qiuyue, He Jicheng, Zhang Ting’an, Dou Zhihe

"This paper proposed a new method of Mg and Cl2 circulating for titanium sponge production by direct pyrolysis and thermal reduction process. Effects of pyrolysis temperature, pyrolysis time and partial pressure of oxygen on pyrolysis efficiency were researched, and the crystallite structural transformation of MgO productions at different pyrolysis temperature and time were analyzed by XRD. The experimental results indicates that the pyrolysis temperature and time effects the pyrolysis efficiency obviously, and the reasonable pyrolysis conditions by using MgCl2 in molten state are as follows: the pyrolysis temperature is 1100?, pyrolysis time is 60min and the partial pressure of oxygen is 100%, the pyrolysis efficiency get above 95% at this conditions. The dynamic analysis of molten magnesium chloride pyrolysis reaction shows that, as a chemical reaction process control, the response of the apparent activation energy Ea=70.4 kJ/mol.IntroductionTitanium is a young metal, it is applied in industrial until the Second World War. It is 160 years from the discovery of titanium to the industrial production of ductility titanium by magnesium reduction method in the United States in 1948. As a new kind of metal, titanium and titanium material are better than the traditional metal materials in mechanical properties, heat resistance and thermal conductivity. Titanium is a kind of landmark structure and function material, which is called “space metal”, “Marine metal”, “Intelligent metal” [1-3]. Although the study of new methods of titanium melting get more at present, Kroll method and Hunter method are really applied to industrial production methods for titanium smelting, and Hunter method is already discontinued because of costs at present. The core technology in Kroll method of sponge titanium production process can be ome down to two circulation, namely the cycle of magnesium and chlorine in preparation-process of titanium sponge. In the traditional Kroll method, the cycle is realized through magnesium chloride which is produced by the electrolytic magnesium reduction process in hot molten state. But because investment of equipment for electrolysis method is too high, this method has not been used by most titanium sponge production enterprise in China. At present most titanium sponge production enterprise in China produce titanium sponge by the outsourcing of titanium tetrachloride, but the main disadvantage of this method is that the by-product of magnesium chloride is difficult to deal with."

Jan 1, 2012

By D A. Sims

This paper outlines the contributing factors to a series of erroneous Mineral Resource estimates which led to considerable loss, including significant reduction of mine life and consequently a large write-down of asset value. The error prompted divestment of the mineral asset in the short-term by the owners, a major mining company. There were multiple and complex contributions to the result: • The mine was undergoing a transition in the deposit geology with increasing depth that was not accommodated in the models. Early indications of the geological transition in initial drilling were generally unrecognised in resource modelling. The shortcomings of the models became apparent with increasing infill drilling and subsequent production reconciliation. • There was a lack of recognition of, and confidence in, site-based input and skills by corporate technical management. The site had a reputation internally for over-delivery to plan early in its life and that supported the anticipation of ongoing metal delivery into the mine plan by management. • A corporate lack of confidence in site being able to adequately domain the mineralisation led to the use of a CIK domaining process, rather than one which was geologically based. This domaining process led to gross over-statement of mineralisation trends reflected in the subsequent OK estimate. • Timelines on the outsourced estimation process were so short that validation was not possible. Obvious errors in the estimate versus data were not able to be used to correct the issues and the site’s Competent Person sign-off occurred without adequate checks. This case study is presented to reinforce the concept that Mineral Resource estimates are not solely based on the ability of the Competent Person to satisfactorily guide the process. There are usually multiple complex issues in the estimation process which need to be recognised and considered in judging reconciliations of model to actual.

May 24, 2023

The AMIRA Code of Practice and Guidelines for Metal Accounting was developed in response to demand from a number of sponsor companies, including one major platinum producer. Since its publication in 2007, the Code has become widely accepted in the mining industry world-wide as a guide for best practice in metal accounting. With the changes in the structure of the platinum mining industry in South Africa over the last 10 ? 15 years, in particular, the starting up of a number of small platinum producers who must have their concentrate smelted and the contained valuable metals refined by third parties, the need for metal accounting systems that are accurate and have an acceptable level of precision has become even more critical to the success of a platinum-producing operation. The current state of metal accounting in the industry is discussed and possible areas for improved accounting and associated metallurgical efficiencies are identified.

Jan 1, 2012

By L Lachance, F Flament, D Leroux, S GariTpy

"Considerable metal values are often locked in stockpiles (ore, concentrates, heap leach pads, slags, reverts, etc.) and process equipment (bins, holding tanks, thickeners, etc.). This is more than enough to justify accurate accounting of such in-process metal inventories from both financial accounting and operational perspective. However, accurately determining the metal inventory of an in-process unit is often a challenge in industrial practice. Audits have shown that available indirect or direct measurements often carry large inaccuracies. Sooner or later, ignoring these measurement errors lead to unexpected incoherencies in reported metal balances. In such situations, coherent metal balances are then achieved through subjective and sometimes significant adjustments of in-process inventory levels. While such metal accounting methods applied by mineral processing engineers used to be rarely challenged, they are now being increasingly scrutinised by various stakeholders. Hence, metal accounting procedures that mitigate subjectivity in adjustments while still coping with the unavoidable uncertainty are more relevant than ever.This paper reviews three different metal accounting methods for reporting in-process metal inventory values. Their individual application strongly depends on the available measurements i.e. The indirect method where the metal inventory of a given process unit is determined by subtracting the cumulative reclaim from the cumulative feed carries important flaws. The direct method also comes with challenging accuracy issues so that emptying a process unit is often the best available inventory measurement. This reality is recognised for by further analysing a previously proposed operating mode where two interchangeable process units are alternately used. The third investigated method is the redundant method which combines indirect and direct methods for a given process unit. This paper reveals that the dual process unit operating mode and the redundant method can both significantly improve the estimation quality of in-process metal inventories.CITATION:Lachance, L, GariTpy, S, Leroux, D and Flament, F, 2013. Review of metal accounting methods for in-process metal inventories, in Proceedings MetPlant 2013, pp 102-117 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jul 15, 2013

By Timothy C. Siegel

This report presents the results of a synthesis on the design and analysis of ground improvement for liquefaction mitigation. The synthesis included an industry survey concerning the practice of ground improvement for liquefaction mitigation. Participation in the survey was solicited by advertisements in several trade magazines and by e-mail for the DFI membership. The survey participants numbered 150. Their professional roles include consulting engineers, specialty contractors, design engineers, government engineers, and academicians. They represent a variety of geographical areas including North/Central/South America, United Kingdom, Middle East, Caribbean, Hawaii, Japan, India, Egypt, France, Australia and New Zealand. Upon completion of the survey, several professionals in the field of liquefaction and ground improvement were interviewed for them to elaborate on the survey results. The interviews are included in the Appendix of this report. Financial support for the project was provided by DFI and Dan Brown and Associates PC. The concept of the liquefaction mitigation synthesis was developed by DFI?s Ground Improvement Committee in recognition that: (a) The results of recent research and post-earthquake reconnaissance have challenged previously longheld beliefs about liquefaction and associated mitigation techniques, and; (b) The DFI membership and the engineering/construction industry are interested to know if and how engineers and designers are subsequently adjusting their practice in consideration of recent research and post-earthquake reconnaissance. For more detailed information on recent research and post-earthquake reconnaissance, presentations are available from the State-of-the-Art Forum: Liquefaction Consequences and Mitigation that was held in St. Louis in 2012. A commentary of the state-of-practice in ground improvement for liquefaction mitigation (prepared by DFI?s Ground Improvement Committee) is included in this issue of the DFI Journal. The author would like to thank the participants of the survey and especially Mr. Mike Jeffries, Dr. Les Youd, and Dr. Ikuo Towhata for their willingness to share their expertise in interviews. The author also acknowledges Mary Ellen Bruce of DFI, Billy Camp of S&ME, Inc., and Marty Taube of DGI Menard (and Chair of DFI?s Ground Improvement Committee) for their signifi cant contributions.

Aug 1, 2013

By R Valenta, J Owen, D Kemp, E Lebre, G Corder

Copper plays an essential role in our society. It is one of the key materials supporting economic growth and human development in emerging economies, for its common use in construction, power generation and transmission. It is also a critical metal for the transition to a low carbon future, particularly for its uses in renewable energy and electric vehicles. As a result, global demand for copper has been increasing steadily and is predicted to continue in the future. The demand-supply gap is currently growing, and new mines will be needed to fill it. This project observes the current pipeline of copper mining projects, which are characterised by technical complexity (lower grades, deeper deposits, complex mineralogy etc.) but also environmental, social and governance (ESG) complexities. A common assumption in the mining industry is that a rise in copper prices will unlock these deposits. However, while most technical complexities are price sensitive and are likely to be overcome in favourable economic conditions, the influence of ESG complexities is more difficult to evaluate. CITATION: Lebre, E, Valenta, R, Kemp, D, Owen, J and Corder, G, 2018. Accounting for social and environmental complexities in mining project developments: the case of copper, in Proceedings Complex Orebodies Conference 2018, pp 39–40 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 21, 2018

By Eder Salazar

El presente texto describe la tercerización u outsourcing en las empresas mineras como una forma de alianza entre las firmas colaboradoras para hacer eficiente las tareas fundamentales. Los elementos que conforman dicho manejo administrativo son: pluralidad de clientes, equipamiento propio, inversión de capital y retribución por obra o servicio. La tercerización, solo se desnaturaliza cuando se comprueba que la empresa tercerizadora no posee autonomía empresarial

Sep 14, 2009

By Rudá Grossi Coimbra Martins

A estruturação organizacional da gestão da informação em Central de Serviços já está consolidada no ambiente de Tecnologia da Informação. O ambiente de Tecnologia de Automação compartilha características semelhantes, já que também fornece serviços para seus clientes. Entretanto, serviços de automação possuem particularidades derivadas, em grande parte, do fato de que são mais críticos para a atividade fim da empresa, já que visam manter a operação. Implantar uma Central de Serviços em ambiente de Tecnologia de Automação de uma empresa já existente demanda uma série de modificações em termos de Tecnologias, Processos e Pessoas para trazer os retornos desejados em termos de gerenciamento, organização da rotina e disponibilidade dos ativos. Este trabalho apresenta alternativas para atuar sobre os três componentes supracitados durante a implantação de uma Central de Serviços, com foco em sua operação através de uma Gestão Compartilhada (Cosourcing). Experiências adquiridas em projetos de especificação e operação de Central de Serviços também são apresentadas para embasar a estruturação da gestão da informação em ambiente de Tecnologia da Automação de indústrias de Metais e Mineração.

Jul 30, 2018

By H. Mischo, R. Ellmies

Uranium has been mined in Namibia since the 1970s. The worldwide increasing need for energy in the early 2000s has led to the development and opening of a second uranium mine in 2007 and has triggered an increased interest in uranium exploration, often referred to as “the Namibian Uranium Rush.” In all, four mining licenses have been granted by the Namibian Government, which currently has two mines in operation, a third undertaking trial mining and the fourth in project finance negotiations. In addition, highly intensive prospecting activities at additional deposits are at an advanced stage. The finalization of the strategic environmental impact assessment (SEA) on uranium mining in 2010, the first of its kind and scale in the world, has enabled the Namibian government to assess this uranium rush and its tremendous legal, socioeconomic and environmental impacts and to prepare for the different future scenarios conceivable when this article was written in 2011, including both a skyrocketing and a complete breakdown of demand scenario. The Fukushima disaster and plans of the Namibian government to significantly increase royalties and company taxes in 2011 have threatened the market situation, forcing investors to reevaluate Namibian uranium mining projects. However, with the tax and royalty increase initiative since withdrawn, most projects are back on track at this point in time.

Jan 1, 2012

By Subrata Dutta

Sindesar Khurd Mine is situated in Rajasthan, India, and operated by Hindustan Zinc Ltd, under Vedanta Group. The base metal mine is high in reserves of Lead, Zinc and silver and has been producing since 2007 with initial production of 0.3 mtpa. Recently the mine has gained prominence as a base metal underground mine in introduction of latest mining techniques and achieving high production at lowest costs. The promising Lead-Zinc reserves of Sindesar Khurd Mine (SKM) and high-tech exploration adopted by Hindustan Zinc Ltd (HZL), (Vedanta Group), raising the reserves and resources from a meager 9 Mt (1997) to 81 Mt (2012), has prompted HZL management to ramp up the mine production from 0.3 mtpa (2006-07) to 2 mtpa by 2013-14 with ambitious plans to reach 3.5mtpa subsequently (presently largest underground metal mine in India). The complete trackless system underground mine, recently equipped with latest leaky feeder communication system (unique in India), utilize modern drilling, mucking and hauling equipment aided with various utility/service vehicles. Excavation optimization and quality recovery maximization from the open and post filled stoping methods, continual expert analysis and feedback from International consultants like AMC (Australia) and SRK (UK), and involvement of renowned bodies in management excellence, have lead the mine towards highest productivity and lowest mine operating cost, earning the mine a prominent place in the global base metal industry. The paper deals with how the various challenges in mine planning and designing, mine development, operator skill, equipment introduction and maintenance, expertise availability, provide training and exposure to officials, prompt and effective communication/service, control of ground vibrations, maintain ventilation standards etc are faced in attaining high operational excellence and thus attain a record mine output/man shift (OMS) of 14 ton/man shift with targets to reach 20 ton/man /shift. Scientific designing using 2D/3D numerical mine-modeling techniques, faster stope sequencing with introduction of paste filling ( first time in India),latest leaky feeder communication system, control ground vibration to stringent standards using electronic delay system, faster raising techniques using raise borers to enhance development and ventilation, cavity scanners to monitor large stope voids, fast shaft sinking at 100 m/month(Chinese expertise) and maintaining adequate ventilation with close software monitoring are some of the highlights discussed in the paper towards achieving the targets.

Aug 1, 2013

By Klaus L. Cappel

In 1972, the Bureau of Mines of the U. S. Department of the Interior commissioned the development and design of a Simulator for research and testing of mine roof supports used in long-wall mining. The purpose of the Simulator is to reproduce forces and displacements of a section of a mine roof in contact with one or more supports. This report is an account of the design process that resulted in the final configuration of the Simulator presented here. It includes discussions of engineering considerations that led to major changes in important details of the Simulator. These changes, however, did not substantially alter the basic design originally proposed, except for the elimination of certain originally-specified features that were adjudged as insufficiently cost-effective by both the Bureau of Mines and the design agent at an intermediate stage of the design.

Jan 1, 1974

By D Audeyev

The Cooljarloo North Mine has been shaped not only by operational and processing challenges, but by climatic and economic factors. This paper outlines some of these challenges and discusses how the operating strategy has been altered over time to mitigate the impacts.Since commissioning the wet concentrator in 1999, there have been many typical operational challenges to maximising valuable heavy mineral (VHM) recovery. These include: varying in pit feed grades, different slimes types and volumes, sizing extremes between VHM and trash minerals and decreased equipment reliability handling rocky ore. These issues were successfully mitigated by: in pit extraction strategies, upgrade of the de-sliming circuit, thickener modifications and flocculent changes, installing upgraded and additional spiral capacity, and various Feed Preparation Plant screening initiatives. Combined with the ingenuity, persistence and patience of the operating team, VHM recovery >95 per cent has been achieved.However, typical processing challenges have not been the only hurdles. Reduced rainfall and water availability has necessitated the strategic co-disposal of tailings and slime to increase the speed of water recovery: groundwater abstraction and water storage strategies have also been altered. With an observed reduction in the speed and magnitude of groundwater recharge, overburden backfill scheduling has become a priority mine planning function.Combined with the above challenges, the prevailing foreign exchange rate and mineral product prices have impacted profitability. At the height of the Global Financial Crisis in 2009, major changes to the operating strategy were made to maintain a viable dry mining operation in 2010. Working with the mining contractor the existing scraper and semi-fixed Feed Preparation Plant set up was replaced with a movable in pit dozer trap facility. The end result of changes to the mining method and primary screening was a ten per cent reduction in unit costs. This article will elaborate on some of the above mentioned challenges and successes achieved over the past ten years of operating the Cooljarloo North Mine.

Oct 5, 2011

By J. R. Shultz, R. J. Lambert

One of the present trends in the mining industry is the increased use of mining contractors. In the past, many project owners have utilized mining contractors for topsoil stripping or overburden removal, usually on a short-term or periodic basis. In recent years, mining contractors have not only removed the overburden, but mined the product as well. Why is this change occurring? A prevalent trend in the mining industry appears to be the outsourcing of non-core and non-strategic functions, allowing producers to focus more on areas of technical expertise where higher incremental value is added—that is the processing, refining, and marketing of the product. As capital allocation becomes more critical, this trend is likely to continue.

Jan 1, 2002