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By Stephen G. Mlot

The evaluation of mineral projects involves the identification, mitigation and management of significant uncertainty. Benchmarking is an essential and effective way of increasing confidence and reducing uncertainty associated with input parameters and assumptions. Comprehensive and detailed benchmarking will ensure ?best practice? technologies, methods and systems have been considered and that the appropriate practices can be identified and incorporated into the project. In conjunction with the involvement of experienced industry practitioners, benchmarking is best employed throughout project evaluation to enable early identification of ?errors?, producing more accurate and predictable outcomes. Considerable time and effort is required to gather data and information, which should be benchmarked by the project evaluation team. There is a history of mining projects underperforming, on production, on costs and on return to the investors. The quality of mine plans and feasibility studies, and the quality of the input data is being questioned in many ways. Benchmarking assists sound project evaluation practices, by providing a database of actual results, to validate project inputs and outcomes, ensuring they are realistic and achievable. Benchmarking also provides unbiased, statistical support as the basis for sound investment decision making and ensures well considered decisions are made resulting in a more efficient study process. The evaluation of the quality of projects which are the subject of transactions also benefits from the use of real data obtained from a benchmarking database. Vendors are quick to highlight the benefits of their projects, and conceal the flaws, inflating the value. Buyers will want to quantify the potential of a project through the due diligence process relying on actual results from benchmarking. For the reasons broadly outlined above, benchmarking should be considered as an essential component of effective Project Evaluation.

Aug 1, 2013

Organisations are starting to develop processes for achieving sustainability principles they have defined for their organisation. The foundation for these principles is now well accepted. The definition of a sustainability framework is a good starting point for any project. The delivery of the framework requires the organisation to think differently about how project objectives can be met. New tools are becoming available to help achieve the sustainability outcomes for the projects. This paper will examine the project building blocks that are necessary to ensure the sustainability framework can be achieved for the project. These include new approaches to decision-making processes and evaluation tools and when to apply them. An integrated approach with shared expertise to project delivery, which is applicable to the whole supply chain, will be discussed. This will cover sustainability procurement, integrated waste management, cleaner production and eco-efficiency, sustainable products and disposal. A project toolkit will be presented and some key project tools identified. The need for management support in undertaking these new approaches is critical, as is the need to develop partnerships and cooperative management to facilitate delivery.

Jan 1, 2004

By G McCullough, J Bassan, d P. Knights, C T. Farrelly

By 2045, carbon-neutral mines will be economically producing products that are vital for the world’s transition to renewable energy. After overcoming significant technical challenges (and the investment of significant capital), leaders have successfully eliminated the use of diesel and other fossil fuels by introducing a wide range of new decarbonisation technologies. These leaders will be reaping the benefits of lower production costs (resulting from elimination of diesel), stable and predictable operations, and easier access to capital for their future projects. This paper describes a future scenario of how a net zero carbon and zero-entry mine could operate by taking maximum advantage of technologies in development or already proven in other industries. Some miners have been unsuccessful in their efforts to reach decarbonisation targets. Instead, they have been forced to close or offload their assets to be acquired by operators with better sustainability credentials, or, in some cases, to indigenous or community-based enterprises with vested interest in making operations viable and sustainable. Regardless of ownership structure, all successful mining operations will have fostered strong and positive community relations that bring education, health, security and economic development opportunities to the communities while respecting their traditions, land-uses and culture. As shallow, easy to mine deposits have become scarce, the majority of new mines are underground. Advancements in electric underground technology and the feasibility of ‘zero entry mining’ (with no personnel in active mining zones) has made it increasingly possible to economically operate underground mines, even at shallow depths. The newest mines have a near zero footprint on the surface, produce no harmful by-products, and are employing in-place or in situ methods of extraction that are efficient and low impact. Surface land-uses, such as agriculture and renewable energy generation, continue in the immediate vicinity of the mine, with no significant ground disturbance, community impact or environmental footprint.

Sep 1, 2024

By B Harvey

Achieving community and stakeholder endorsement during life-of-mine planning and implementation requires a business-connected approach, as opposed to charitable giving, disconnected offsets and environmental adventurism.CITATION:Harvey, B, 2014. Extractive companies, development and environmental agendas, in Proceedings Life-of-Mine 2014 , pp 19–22 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 16, 2014

By L Dyer, A Keith, G D. Corder

As mining activity moves to remote and less developed locations globally, a holistic approach to mine development is fundamental for achieving a balance between strong financial returns and corporate social responsibility and transparency. Key inter-related fundamentals such as social licence to operate, life-of-mine operational planning, minimising environmental impacts and, most importantly, attractive investment returns for the mining company all contribute to the viability of any new mining project.However, the typical practice in the mining industry is often to treat environmental and social/community aspects as separate compliance issues that are dealt with at minimum cost and disruption to the project and resulting operation. This often results in less than optimum environmental and social outcomes, and presents considerable liabilities at the time of closure when rehabilitation programs continue to require funding when all revenue has ceased.The five capitals model seeks to identify each of the key contributors to sustainable development as financial, manufactured/physical, social, human and natural to formulate a type of triple bottom line approach balancing these often competing project factors. The SUSOP® sustainability risks and opportunities framework, developed by the mining industry, bases its approach on the five capitals model and proposes an approach that breaks down enterprise silos to identify innovative solutions for life-of-mine sustainability. This framework has been developed with the nature of mining projects in mind in order to produce approaches and outcomes relevant throughout the life cycle from the planning phases, through project design and construction into operation and closure.This paper argues the need for a more holistic approach to the development and operation of mining projects, and presents case studies where a holistic approach has been applied, in whole or part, and discusses the lessons learned from these case studies.CITATION:Corder, G D, Keith, A and Dyer, L, 2014. A capitals based approach – leading innovation in planning for life-of-mine sustainability, in Proceedings Life-of-Mine 2014, pp 499–512 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 16, 2014

By M Berry, F MacCorquodale

The ownership, management and employment structures operating in the Australian minerals industry have dynamically evolved during the last 30 years. One of the most dramatic changes, from an exploration and mining geology perspective, is the reduction of in-house geological expertise and an ever increasing reliance on contract and consulting services.For all companies - big and small - two key issues resulting from these changes are the management of core geological intellectual property (IP) and competitive advantage. This is because there are less experienced geologists at exploration and mine sites, there are fewer head-office technical service teams to support mine sites, exploration teams are smaller with less specialists employed, and there is an ever-greater dependence on contract and consulting services.This paper reviews and explores these issues with an industry-wide geological context, then provides a case study of how Newcrest Mining Limited (Newcrest) has dealt with these issues in exploration. Newcrest has grown from a one-mine company with an Australian exploration focus, to a large global company with multiple operations and an extensive international exploration portfolio. NewcrestÆs management of its geological IP and competitive advantage has evolved as the company has grown and responded to market conditions, including its internal restructuring in mid-2013.CITATION:Berry, M and MacCorquodale, F, 2013. Managing geological intellectual property and competitive advantage - Newcrest Mining LimitedÆs experience, in Proceedings World Gold 2013 , pp 37-44 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 26, 2013

"How Wall Street Darling Molycorp Undermined the U.S. Economy, Degraded our National Security and Distorted the Global Economic Balance and How These Falsehoods Continue to be Promoted Even Today INTRODUCTION & SUMMARY In 2007 the Molycorp Mountain Pass rare earth mine was resurrected from its desert-grave in California by its then-owner Chevron Mining. Responding to elevated rare earth prices Chevron began processing on-site rare earth concentrates left over from past mining operations that were terminated in 1998i. Chinese demand had sparked what was being described as a commodities super-cycleii. Commodity prices were on the move. Wall Street smelled opportunity. In 2008 Goldman Sachs, Pegasus Partners, Resource Capital Funds, Traxys North America LLC and Carint Group LLC acquired the mining assets from Chevron. In an environment of ever-declining ethical standards and regulatory consequences the private capital group and their investment bankers would bring Molycorp to market. Molycorp, with its high powered investment banking team of Morgan Stanley and J.P. Morganiii, easily dominated the contest. Molycorp promoted itself, largely based on its past operating history and proven reserves, as the best company to challenge China’s monopoly control over the production of rare earths: a group of elements critical to most advanced technologies and U.S. defense systemsiv. Most of Wall Street’s hottest investment sectors were dependent on these materials: alternative energy, green technologies, computing, personal communications, advanced electronics and defense systems. By late 2010 there were dozens of prospective rare earth start-up ‘mining companies’ seeking capital. Eventually the number of prospective rare earth mining companies seeking capital exceeded 400, despite the reality that supply requirements of this market were disproportionally small when compared to other natural resource sectorsv. In the world of finance ‘smart money’ picks the winners. Consequently just twovi projects attracted nearly all of the capital (Molycorp and Lynas). Wall street picked Molycorpvii. This paper will primarily focus on Molycorp. By early 2010 the words “Molycorp” and “Rare Earths” electrified many people in the mining industry, most non-Chinese manufacturing technology companies, U.S. & allied defense contractors, technocrats in the U.S. national security community and eager investors across most of the world’s stock markets. It was the hottest story of the yearviii. The financial, technology and defense press coverage verged on euphoric: heaping fuel on fuel until the highly combustible Molycorp-pyre cast a long shadow over all of its rivalsix. When the IPO match was lit the spectacular flaming pyre sucked all of the oxygen out of the rare earth spacex. Molycorp was ranked the most lucrative IPO of 2010, resulting in record breaking profits to its private investors and massive returns for its early stock holding investors."

Jan 1, 2017

By Mauricio Estrada, Luis Vilchez, Luis Valencia, Marco Vera, Italo Manzo

Flotation is the most used separation process worldwide. Flotation characterization is usually carried out in batch conditions at laboratory scale. A phenomenological description of the flotation process is challenging, however, the evaluation of flotation performance in a contextual manner by means of a pilot plant is beneficial to reduce uncertainty on metallurgical results. In addition, leveraging pilot plant results by digitalize them helps describe the process dynamically. Consequently, flotation pilot plant testing allows a Digital Twin (DT) to be generated by combining ore characteristics, process information and a digital architectural platform. Therefore, the generation of a Digital Twin of the flotation pilot plant provides a tool to explore and evaluate new operating scenarios. This allows an optimum scenario to be identified and scaled up (i.e., industrial operation).

Sep 30, 2022

By Cary Hirner, Dan Lopez, Ross Webb, Stephen O’Connell

"Construction of the largest desalinization plant in the Americas has commenced in northern Chile. It is part of a several billion dollar expansion at a copper mine whose operations nearly stopped due to the challenge of securing a reliable source of water from the Pacific Ocean in a safe and environmentally sound manner. This paper discusses the risk management, design and construction of a quadruple chamber intake and outfall shaft, high capacity pump station, three 7m diameter vertically drilled marine shafts and three subsea tunnels constructed through challenging Andean hard-rock geology. The three 2.5m diameter subsea microtunnels are being mined with vertical curves through variable quality rock 30 meters beneath the ocean and retrieved in the wet from the 7m diameter marine shafts. INTRODUCTION AND BACKGROUND The battle for securing the rights to a constant water supply is a worldwide issue and nowhere is that more evident than the Atacama Desert of Chile, the world’s driest place with areas of the desert that have not seen rainfall in recorded history. The Atacama Desert also happens to be home to some of the world’s largest ore deposits which require huge amounts of water to extract and process. What available water there is comes from three main sources: deep seated wells, glacial water from the Andes Mountains, and desalinated water. Vying for water from wells and glacial streams and lakes are numerous agricultural and domestic facilities in the valleys surrounding the Atacama Desert. Environmental regulations and legal rulings have limited the amount of “natural” source water which can be used for mining purposes. Desalination plants are a known solution for combating water scarcity, albeit a costly one. The total estimated cost of constructing this desalination plant is over $3B USD, which will include a 2500lps capacity and an approximately 118km pipeline from the coast up to the mine located in the Andes. The overall scope of the project includes design, procurement, and construction packages for the 2500lps desalination plant including the seawater reverse osmosis plant, water conveyance to the mine, power transmission, the reservoir and the marine works package which forms the basis of this paper. Key components of the underground construction portion of the Marine Works are:"

Jan 1, 2016

By R. Todd Swinderman

"Higher production demands across all bulk handling segments require increased efficiency at the lowest cost of operation, in the safest and most effective manner possible. As conveyor systems become wider, faster and longer, more energy output and more controlled throughput will be needed. Add an increasingly stringent regulatory environment and cost-conscious plant managers must closely review which new equipment and design options align with their long-term goals for the best return on investment (ROI).There are primarily two separate market segments using conveyor belts. One is in process industries such as food, chemicals, paper and powders. Handled in relatively low volumes, the bulk materials that enter these processes are generally of a consistent size and quality. The other market includes mining, coal handling and cement, where the bulk material’s quality and size vary, and the volumes are typically much greater. While both segments face similar issues with safety and environmental control, the properties of the materials handled and the volumes transferred suggest different approaches, with one thing in common: increased belt speeds requiring modern equipment upgrades.Safety at higher belt speedsWith companies recognizing that safety does indeed pay, safety is likely to become a new source of cost reduction. The percentage of mines and processing facilities with a robust safety culture are likely to increase over the next 30 years to the point where it is the norm, not the exception. In most cases, with only a marginal adjustment to the belt speed, operators quickly discover unanticipated problems in existing equipment and workplace safety. These problems are commonly indicated by the larger volume of spillage, increased dust emissions, belt misalignment and more frequent equipment wear or failures."

Jan 7, 2017

By W Russell, P Wighton, J Franke

Recent advances in ruggedised industrial control system technology and architecture in combination with latest technologies in the fast-evolving 3D LiDAR sensor sector becoming available have enabled the implementation of sophisticated automation algorithms for mining equipment such as bucket wheel reclaimers, as published by the authors in the peer reviewed AusIMM 2019 Iron Ore conference proceedings. This paper provides an overview of a second use case for such automation technology in bulk material ports integral to iron ore operations. The real-time 3D machine-vision based port automation system described in this paper was originally developed for the BHP-Mitsubishi Alliance’s (BMA) Hay Point port. The system has seen deployment at other major mining and general ports in Australia, such as at Dalrymple Bay Terminal (DBT) (shown in Figure 1) managed by Dalrymple Bay Infrastructure Management (DBIM), Hay Point, Queensland. It has the following use cases:

Nov 8, 2021

By G. Richards

Mines are facing fresh challenges over how they deal with the huge quantities of water consumed. industry analyst Frost and Sullivan, demand for treatment equipment and services alone is expected to be worth US$3.6bn by 2016, while a report by consultancy Bluefield Research estimates that the total mine water market - which includes water infrastructure such as reservoirs, pipelines and dewatering systems as well as the equipment and services - will be worth US$17bn by the end of 2019. Methods of water decontamination are described.

May 1, 2015

By R. Bonifaz

The Chagres Smelter, part of the Anglo American plc group situated 80 Km north of Santiago in Chile, completed a series of operational improvement in 2005 resulting in an optimum capacity in its operational units. At present the Chagres Smelter has developed an operational strategy which seeks to reduce bottle-necks in the production process. In this way we have managed to lower operational cost, decrease energy consumption and maximize the capacity of the Acid, Oxygen, and Smelting, Converting, Refining and Casting units. A constant application of international benchmarks together with continuous staff improvement and the latest smelter technology have combined to place Chagres among the finest smelting works in the world. In response to environmental challenges, we have studying various options for investment suitable for a profitable business of benefits to both Anglo American and Chile as a whole. The most relevant technical indicators are the figures : Energy consumption less than 6,3 GJ/ton fine copper, Intensity of smelting rate in Flash Smelting unit of 6900 ton of copper concentrate/m2 settler of furnace area and be one of the top five smelter in direct cash cost .

Jan 1, 2007

By Steven Putt

The paper presents new results from Datacloud during recent Seismic While Drilling trials in iron ore, metallurgical coal, and hard rock mines around the world. The measurements are compared with wireline geophysical logs, core data, drill cuttings, and conventional measurement while drilling (MWD) systems to validate the technology and show how the data can be used.

Feb 1, 2020

By Alessandro Navarra, Roberto Parra, Boyd Davis, Frank Mucciardi

A smelter scheduling algorithm has been developed, which allocates the oxygen production between the smelting furnace and the converter aisle, so as to maximize copper throughput. The algorithm is intended for daily operation planning, controlling the sequencing of the converter cycles, and the oxygen drawn by these cycles. In some cases, it may be worthwhile to decrease converter oxygen allocation in favour of the smelting furnaces. Thus, a better utilization of the oxygen plant can increase primary copper throughput by several percentage points. This principle is demonstrated through sample computations. The approach presented in this paper can be incorporated into smelter management software.

Jan 1, 2015

By R. Bonifaz, R. Subiabre

The Chagres Smelter, part of the Anglo American plc group, situated 80 Km north of Santiago in Chile, completed a series of operational improvement in 2005 resulting in an optimum capacity in its operational units. At present the Chagres Smelter has developed an operational strategy which seeks to reduce bottle-necks in the production process. In this way we have managed to lower operational cost, decrease energy consumption and maximize the capacity of the Acid, Oxygen, and Smelting, Converting, Refining and Casting units. A constant review of international benchmarks together with continuous staff improvement and the latest smelter technology have combined to place Chagres among the finest smelting works in the world. In response to environmental challenges, we have studied various options for investment that will yield a suitably profitable business to benefit both Anglo American and Chile. The most relevant technical indicators are: energy consumption=6,3 GJ/ton fine copper (1st in the world), intensity of smelting rate in Flash Smelting unit of 6,900 ton of copper concentrate/m2 of furnace area (1st in the world) and to be one of the top five smelters in achieving the lowest direct cash cost .

Jan 1, 2007

By Christian Heili

In 1991 the Government of the Republic of Zambia passed legislation providing for the privatisation of Zambia Consolidated Copper Mines Limited (ZCCM). The newly formed Mining Companies, established after nearly a decade of difficult and protracted negotiations on such matters as, cash at close; retained percentage interest by ZCCM; equity investment; future investment commitment and tax concessions, were faced with great internal challenges and a harsh external environment. There was a convergence of a number of negative forces that had and will continue to have an impact on the mining environment in Zambia. The most crucial of these being, the competitive pressures of the global economy, fluctuating copper price and the prevailing HIV/AIDS pandemic. In the short period after privatisation, the Industry has seen the collapse of Binani Industries (Luanshya Mine), the withdrawal of Anglo America Corporation from Konkola Copper Mines Plc and the disposal of Chambishi Cobalt and Acid Plants by Anglovaal Mining Ltd. The objective of this paper is to provide a theoretical and practically researched foundation, which may be used to assist Zambian Mining Companies in making informed decisions on the issue of Strategic Outsourcing and the degree to which this may support the successful and sustainable growth of the Zambian Copper Mining Industry. If judiciously implemented, Strategic Outsourcing has the potential to generate a practical business valuation and process to assist Mine Management in the achievement of their business goals and consequently the return on investment to their Shareholders.

Jan 1, 2005

By I R. Souza

At the mining industry, there are several uncertainties that may affect the mobile mining equipment fleet sizing and usage, such as commodity supply and demand, which impacts the mineral price, environmental licenses to allow operations and strategic decisions made by the own mining company. Due to that, it may happen to acquire a mobile mining equipment for a specific site and before it finishes the entire forecasted life cycle, the machine gets idle on that operation and a decision must be made regarding this matter. On large mining companies with several sites, equipment transfer provides a good solution to solve this issue and at the same time it provides operational flexibility and allows to use the equipment until the initially planned working hours. This article presents a method to compare technically and financially whether it’s more feasible to transfer a used equipment or to buy a new one. In other words, we will compare a brand-new machine versus a used one in terms of safety, net present value (NPV) considering both capital expenditures (CAPEX) and operational expenditures (OPEX), technological obsolescence, risks, equipment maintenance reliability and lead times. Although it’s not the main purpose of the paper, it will also be briefly discussed the importance of having a considerable amount of backup equipment to handle low likelihood and high consequence risks that may materialise. This backup equipment portfolio is particularly important to avoid loss of sales and profits in case the production plan changes and it demands further equipment than initially planned to cope with the forecasted production.

Nov 8, 2021

By Todd Kilduff, Paul Wilkinson

Microtunneling is rarely a straight forward “business as usual” endeavor. More often than not, these projects take twists and turns that require on the fly, out of the box solutions to get the project completed. This paper is a case history of a 63-inch diameter, Permalok, microtunneling project, extending nearly 700 linear feet under a hill forming the left-hand abutment to an earth embankment tailings dam. The job had three major and unexpected challenges that required unorthodox solutions. Challenge #1— Face Configuration: The Santiago Formation, a cemented sand formation with widely varying strengths, presented a challenge to configuring the face with regards to the number and length of pics and cutters. Subtle differences in type and size of the tooling had a big impact on the performance of the machine. Challenge #2—Eccentric Loading: Issues at the launch shaft with the Permalok pipe adaptors caused eccentric loading on the casing pipe. This issue resulted in overstressing and breaking of several pipe joints that ultimately led to seizure of the tunnel. Challenge #3—Back-tunnel Excavation and MTBM Recovery: There were many detailed considerations into excavating a recovery tunnel to retrieve the MTBM, especially being under a high hazard earth embankment dam.

Jun 13, 2021

By O. Jerez, A. Novoselov, L. Gutiérrez, J. Morales, U. Kelm

"In Chile, the evaluation to reprocess tailings for elements other than the traditional Cu, Mo, Au, and Ag, as well as projects to implement long-term monitoring of mining residue sites are key elements of the government’s roadmap laid out for the mining industry for the next two decades. Characterization routines for tailings and mining residues in general have to be adapted from traditional ore and gangue mineral and micro-chemical studies. This contribution summarizes key aspects for the regional mining industry for a basic characterization of tailings with emphasis on small- to medium-size operations with limited in-house facilities and funds to carry out extensive characterization programs. The oldest tailings in Chile were deposited almost a century ago; this fact gives importance to the recovery of past ore /gangue feed information, process circuits and changes (e.g. acid to alkaline flotation), process water provenance and recovery, meteorological registers, and routines of filling a tailings impoundment. Basic characterization should include X-ray fluorescence spectrometry combined with laser diffraction (LD) granulometry followed by X-ray diffraction (XRD), optical microscopy (OM) and automated mineral analysis (AMA) on a reduced set of samples identified by hierarchical cluster analysis. For this detailed stage, only coarse tailings are recommended for direct a study by microscopy and automated mineralogy (P80 >100 µm); for fine tailings (P80 ~30 µm) a combination of XRD and deposit type adapted sequential extraction are more informative options. In particular, for XRD of clay phases, losses of crystallinity may result in deviation of spectra from standard reference phases due to prolonged storage. To monitor surface alteration, scanning electron microscopy can be complemented by Raman spectroscopy to detect residual reagents on mineral surfaces. For reactivity modeling BET measurements are essential."

Jan 1, 2018