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By K McCaffery, R P. Halomoan

Two column flotation cells have been installed as single-stage rougher cleaners at Batu Hijau. The objective was to provide additional residence time in the cleaner circuit to maintain maximum recovery during high mill throughput and high feed grade periods. Installation of the columns has allowed the relatively coarse, well-liberated rougher concentrate and the relatively fine, low-grade scavenger concentrate to be treated separately, improving metallurgical performance in the cleaner circuit. Plant results show that the columns produce a high-grade concentrate at an average stage copper recovery of approximately 80 per cent. There is also indication of increases in both overall plant copper recovery and final concentrate copper grade. In addition, the operability and stability of the cleaner circuit has greatly improved.

Jan 1, 2007

Project-finance risk assessment is mature and approached systematically. Mining industry due diligence remains fragmented with specialists addressing different aspects of the project such as reserves/JORC, environmental impact, commodity market, even financial analysis/ modelling. Each professional has a natural tendency to believe that the risk factors they have examined are the key ones necessary to be reviewed, as if their review will stand in isolation from others in the way a project materialises. By first laying out the project risk categories and risk matrices, this paper examines the due diligence process with a keen eye to the risk assessment and overlap/interaction. Some cross fertilisation of due diligence techniques from other industry sectors is placed into the mining context. Six case studies are then presented with regards to due diligence features in each projectÆs feasibility review or financial information/ offering memorandum. A power case first shows the differences between the due diligence expectations of banks versus bond financings. Then some Australian and Indonesian mining development cases are analysed to see the due diligence learning points. Some of these were project/due diligence failures. The conclusion focuses on the value of a systematic risk assessment for project evaluation, all from the project-finance perspective.

Jan 1, 2007

By J-P Franzidis

The Floatability Characterisation Test Rig (FCTR) is a self-contained, highly instrumented, mobile pilot plant. It was developed as part of the AMIRA P9 project, primarily to determine ore floatability characteristics and to develop and validate flotation plant modelling, scale-up and simulation methodologies. This paper describes the use of the FCTR in validating the AMIRA P9 flotation model and modelling methodology. In 2001 the FCTR was installed and operated in parallel with WMCÆs (now BHP BillitonÆs) Kambalda Nickel Operation. The FCTR was operated using four different circuit configurations of increasing complexity. Metallurgical surveys, cell characterisation measurements and batch flotation tests were performed around each circuit. This allowed the calibration of a number of flotation models using a combination of data from one, two, three or four circuit configurations. The calibrated flotation models were then validated using predictive validation. To do this, data around a further five FCTR circuit configurations were collected (three of which are presented in this paper). The performance of each of the five circuit configurations was predicted using JKSimFloat V6.1 and the parameters from the various calibrated flotation models. The predicted performance was compared to the experimentally determined performance of each circuit. The validation of the AMIRA P9 model was shown to be largely successful except in the case where the reagent addition (depressant) to the validation circuit was different to that in the calibration circuits. The results also provided information regarding the required complexity of the calibration circuit and how many calibration circuits are required to obtain an accurate prediction of circuit performance. These results have increased the confidence in the AMIRA P9 flotation modelling methodology and have provided important information on what data must be collected to allow the accurate prediction of plant performance using the floatability component modelling approach.

Jan 1, 2007

By A Teen

An open cast mine on the West Coast of the South Island of New Zealand proposes to remove up to 30 m of overburden to access an ore body neighbouring National Reserve land. Part of the conditions of the mining permit is that no material above natural discharge levels may be released over the Mining Lease boundary onto the adjacent land. In order to meet this requirement, the client has contracted the design and installation of over 2.6 km of high energy dynamic rockfall control barriers. This paper describes how the rockfall hazards were assessed and the rockfall barriers dimensioned. The design involved 2D modelling of over 3000 simulations.   Modelling parameters were calibrated during field trials at a purpose built section of barrier. The resultant energies ranged from 500 to 3000 kJ. The construction phase of the project involved the drilling, anchoring, and installation of certified barriers up to 7 m high in a remote and inhospitable climate with limited machinery access. By exploring best practice in this specialized field of engineering, a novel rockfall hazard mitigation solution was identified.

Jan 1, 2007

China has large amounts of iron ore reserves, but iron ore in China, with low-grade, small disseminated particles and many other associated minerals, is difficult to dress. In recent years, with the fast development of China's steel industry, the demand for iron ore has increased markedly. The new technologies in iron ore dressing in China are very effective in processing haematite and other difficult to dress iron ores. The iron ore grade and recovery rate has been improved. This result alleviates the difficulty in iron ore supply in China.

Jan 1, 2007

The scarcity of truck tyres combined with decreases in the availability of labour, increases in fuel costs and a buoyant international economy driving project budget blowouts, have all combined to change the paradigm behind mining equipment selections. The escalation of commodity prices has occurred in parallel with an increasing maturity in continuous mining machinery, mobile in-pit crushing systems and very large-scale conveyor belt systems. This paper will consider the merits of operating continuous materials handling systems, mobile in-pit crushing systems, relocatable crushing systems, relocatable conveyor systems and automated waste handling systems in place of the more conventional approach of truck haulage.

Jan 1, 2007

By R Garzon

For resources projects with healthy net present value (NPV) and low cash flow volatility, conventional discounted cash flow (DCF) analysis will continue to provide the dominant investment decision-making criteria. However, DCF analysis can be biased because it often applies a single risk-adjusted discount rate (RADR) to compare the value of projects with different risk characteristics. Many of the difficulties with DCF modelling arise from analystsÆ inability to determine appropriate risk discounts and to estimate expected spot prices inputs for the commodities produced over the life of the project. Modern asset pricing (MAP) is a very valuable complement to DCF analysis in addressing some of these issues. Most papers dealing with MAP, however, while academically rigorous, tend not to be explicit in terms of practical application of this methodology in routine project evaluation. This paper has the objective of reviewing the MAP methodology and of demystifying its complexity, by providing a simple but realistic step-by-step evaluation of a mining project, comparing its DCF and MAP NPV values. The paper concludes that MAP provides a minimum, risk-adjusted æfloorÆ value, thus representing a valuable complement to any DCF valuation.

Jan 1, 2007

By G Veillette, B Parker, S Hart

This paper provides a history of the challenges that were experienced while treating both the clayey oxide gold ores and the supergene copper-gold ores at the Boddington Gold Mine during the period 1989 to 2001. However the bigger challenge was to find a process flow sheet that would allow the economic treatment of the large low-grade competent gold-copper resource that underlies the oxide and supergene gold resource. Metallurgical test work and engineering studies on this resource started in the mid 1990s and culminated in the approval in 2006 of the 35 Mtpa Boddington Expansion Project to treat this material. The process flow sheet provides the basis of an energy efficient comminution circuit that includes high pressure grinding rolls and a treatment circuit with gravity separation, flash and conventional flotation to produce a precious metal low-grade copper concentrate followed by cyanide leaching of the rougher-scavenger and cleaner tailings streams. The treatment circuit allows maximum removal of copper minerals prior to cyanide leaching and so provides an environmentally responsible tailings disposal circuit.

Jan 1, 2007

This paper describes preliminary research on the application of Markov Decision Processes (MDP) to Real Option Valuation (ROV) and the optimisation of mine scheduling. The MDP framework is a novel approach to option valuation and scheduling in mining operations. A learning agent is introduced into the valuation process of an open pit, where prices and block ore grades have probabilistic values. The prices are modelled using a mean reverting diffusion process and the block grades using sequential Gaussian simulation. The agent is asked to learn which production parameters should be used in order to maximise the overall value of the project. The introduction of the agent permits a real option approach to mine valuation, such that the value associated with the robustness of a design to uncertainty can be measured. A simulated example is used in which there are ten blocks to be extracted under conditions of grade and price uncertainty. Using policy iteration, an optimal policy is generated and the value of production options is found. The potential financial gains from applying MDPs to mine valuation and optimisation are substantial and warrant further investigation.

Jan 1, 2007

By B Yeganeh, A Sam, A Kohsari

The base of separation at Gol-e-Gohar iron ore plant (Sirjan in the south of Iran) is magnetic separation after milling. Magnetic separation in the plant is divided into two parts: dry magnetic separation and wet magnetic separation. Sixty-five per cent of the plant production belongs to the dry magnetic separator section. Therefore, investigation of this part of the plant is necessary. Prediction of plant production is one of the most important subjects in mineral processing plants. That means, before feed enters the plant, specification of production has been calculated with laboratory methods. The purpose of this paper is the prediction concentrate quality has achieved from the dry magnetic separator. The content of iron in the final dry concentrate will be predicted, with laboratory, pilot and modelling methods, before feed enters the plant. Different variables are used in this approach, which consist of: speed of the first dry magnetic separator (rougher), speed of the third dry magnetic separator (cleaner), iron content in plant feed, size of 80 per cent passing of feed, size of 20 per cent passing of feed and iron content in pilot dry magnetic separation concentrate that performs in a standard manner. The artificial neural network is used for modelling and one of its branches is the radial basis network (RBN). Iron content in magnetic separating concentrate in plant will be introduced as the target and will be calculated with the RBN method. In the RBN method, a set of data enters to neural network and they will be trained and simulated. Finally, the target will be predicted. Ultimately, the original target (actual iron content) and the predicted target (predicted iron content) compare and error of them will be calculated. The obtained result is acceptable and satisfactory.

Jan 1, 2007

By P S. Heithersay, M McGeough

The discovery of Olympic Dam in 1975 and, more recently, Prominent Hill in 2001 and Carrapateena in 2005 demonstrates the potential for world-class IOCG deposits in South Australia. Potential for further discovery of large IOCG mineral deposits in the Gawler Craton and the Curnamona Province is high because of continental-scale pervasive iron-rich alteration, crustal-scale structural preparation and unique magmatic-hydrothermal conditions. Recent exploration successes point to the effectiveness of new exploration tools and technologies to locate this style of mineralisation under cover. The gold endowment of these orebodies located in South Australia exceeds 75 Moz, with further discoveries to come. The lead time between discovery and development of the multi-million ounce Prominent Hill copper-gold mine in less than seven years demonstrates how quickly this style of deposit can be brought into production in South Australia. Clearly these long-life, multi- commodity IOCG deposits mines are an immediate exploration and future growth opportunity for the gold mining industry to replace ever depleting gold inventories.

Jan 1, 2007

By M I. Jeffrey, J A. Rumbal, D M. Hewitt

Ion chromatography utilising an anion exchange column and UV detection has facilitated an improved understanding of sulfide mineral leaching in cyanide solutions. By analysing for sulfide, sulfite, thiocyanate, thiosulfate and metal cyanides it is possible to show that chalcocite dissolution is a non-oxidative process in which copper cyanide and sulfide ions are formed in solution. Further, the homogeneous oxidation of the sulfide ions by dissolved oxygen is slow, but catalysed by a surface of lead sulfide or pyrite. Polysulfides may also be formed as an intermediate oxidation product and these undergo further reaction to produce thiocyanate, thiosulfate and sulfite. The leaching of copper from a pyrite concentrate sample is shown to be rapid, and accompanied by significant iron dissolution; however, the iron is not believed to be from pyrite, pyrrhotite or chalcopyrite. The rate of iron leaching and cyanide consumption is reduced by maintaining low cyanide and high oxygen concentrations. Preoxidation or the addition of lead(II) ions does not reduce the iron dissolution from this pyrite concentrate.

Jan 1, 2007

By M Bannear, J-F Wilhelmy, R Jones

Mineralogical study of the interactions between fluxes and iron-oxides helps to understand how magnetite oxidises to haematite during pellet firing. Samples of OneSteel magnetite pellets tested at COREM pilot plant were collected after three firing steps and were studied mineralogically. Preheated pellets revealed no particular microstructures related to the composition of fluxes but were more affected by their bed position. After kiln firing, the impacts of lime and magnesia became more apparent. Magnetite oxidation is complete in the cooling stage. The position and the microstructure of the residual magnetite can bring useful information that could æcompleteÆ the view of the firing cycle.

Jan 1, 2007

By R McConnochie, J V. Rowland, J L. Mauk

The Sovereign prospect in the lower Waitekauri Valley of the southern Hauraki Goldfield occurs in daciterhyolite flows and volcanic breccias of the Waipupu Formation. The lower Waitekauri Valley contains a series of NE to NNE-trending normal faults, and the Sovereign prospect lies in a NW-striking graben. The structure of the Sovereign prospect is complex. NE to NNE-trending veins and normal faults dominate the area, however WWNW and N to S-trending structures occur locally. Kinematic analysis of these structures indicates predominantly dip-slip movement, with a local strike-slip component. At least two sets of veins occur in the area: 1.        steeply dipping veins; and 2.       low angle veins, which cross-cut and locally offset the steeper dipping        vein set. Mineralization appears to have formed during normal faulting in an extensional regime.

Jan 1, 2007

By J E. Everett

At BHP Billiton Iron Ore Newman Joint Venture (NJV) ore is railed from four separate mine operations in the Newman area to Port Hedland, where the ore is screened, crushed and blended to produce lump and fines NJV products. Each mineÆs grade varies separately, so it is important that a centralised system is in place to control the overall blend and ensure that the products meet customer expectations. It is important that grade- related decisions are built into the normal production process and have minimal impact on production rates. A continuous stockpile management system (CSMS) covering the whole NJV production process is used to generate the daily crushing schedule, taking into account all currently available ore sources. Innovative additions to the CSMS provide more accurate information to support decision making by the mine schedulers; for example, blasthole estimates are continually adjusted for bias compared to crusher and port rake grades; lump-fines (L-F) grade split and beneficiation plant upgrade algorithms are updated on a continuous basis, and the dilution effect, which impacts on reported port rake grades, is removed.

Jan 1, 2007

By P Lindsay, J B. Hughes

Underground and opencast coal mining has been ongoing since 1896 on the Stockton Plateau, West Coast, New Zealand. Acid Rock Drainage (ARD) from historic and current mine workings has had an adverse environmental impact on the surrounding aquatic environment. The two main catchments affected by ARD are those of the Mangatini and St Patrick streams. These catchments flow into the Lower Ngakawau River, which holds high amenity value for the local community. Water quality targets set by Solid Energy for 2010 in the Ngakawau River include increased pH and clarity and a decrease in certain dissolved metals.   At-source ARD minimisation options are the first stage in mitigating the effects of mining acid forming rocks and reducing acid loads in the Mangatini and St Patrick stream catchments. ARD minimisation techniques reduce the quantity of acidity generated and thus reduces the treatment required. Treatment will be required for many years at Stockton due to current and historical acid formation. This paper looks at the treatment options that Solid Energy has been investigating including limestone leach beds, engineered wetlands, oxic limestone drains, and limestone dosing of catchment drainage. Particular focus is given to fine limestone dosing of the Mangatini stream and subsequent water quality improvements.

Jan 1, 2007

By G D. Cooper

There are no manuals or handbooks for budding mill superintendents or process plant managers. Most who obtain this level of responsibility have gained their training from watching the good and bad of their predecessors and the successful ones have themselves graduated from the school of hard knocks. This paper attempts to provide some helpful guidelines and direction for those who aspire to better manage a mineral processing facility. The authors have 20 years combined experience in senior management roles at nine different mineral processing operations in Australia and overseas, covering gold, base metals and mineral sands. This summary of tips and pitfalls will hopefully benefit future leaders in mineral processing and metallurgy.

Jan 1, 2007

Having worked as a consultant for most of his 40-year working life, mostly as a mineral property valuer, the author has seen many poor valuations. Most were valuations of exploration tenements where the selection of the rather subjective, but necessary, geological inputs raised the main concerns. Those valuations involving iron ore prospects raise particular problems due to the special characteristics of such deposits. Iron ore is more like an industrial mineral rather than precious or base metals and Reserves are determined not by a traditional cut-off grade but by customer specifications. This is intended to be an overview/keynote paper on the current state of the growing (yet consolidating) Australian Iron Ore industry. It has now moved beyond Western AustraliaÆs æPilbara Big TwoÆ of Rio/BHPB (with the emergence of the irrepressible FMG and Hancock Prospecting) to include the YilgarnÆs æMidwest ManyÆ (including US re-entrant Cleveland Cliffs through Portman) and projects in other States. Ore types have moved from haematite Brockman to martite-goethite Marra Mamba (including the RobeÆs mesas and below water table Yandicoogina CIDs) and magnetite ore types. There are DSOs and secondary process feed. Mineral valuers have to reflect today upon these and many other determinants of value when choosing the most appropriate methodologies to adopt when technically assessing and valuing exploration tenements containing iron ore. Set against a frame work of the JORC Code (2004) and VALMIN Code (2005), the general valuation issues involved in using the cost methods (eg multiple of exploration expenditure), market methods (eg comparable sales, rules-of-thumb and joint venture terms) and income methods (eg synthetic discounted cash flow (DCF)/net present value (NPV) modelling) are discussed. Relevant factors when valuing iron ore properties are discussed, eg ore type, lump/fines ratio, stripping ratio, water table, impurities and grade, particularly the JORC confidence category of the identified mineralisation. Remoteness and access to existing rail infrastructure is a key consideration.

Jan 1, 2007

By R Shaw, R Williamson

Global iron ore demand, sparked by ChinaÆs rapid industrialisation and emergence as the worldÆs newest steel market, has seen iron ore groups investing heavily in production capacity as well as infrastructure. The success of these new projects depends heavily on reliability, competitiveness and quality control in an increasingly demanding trading environment. Furthermore, the iron ore industry continues to improve its competitiveness in mining practices, technology innovation and management processes. The continued fine tuning of these sectors will be critical to the success of the industry in the years ahead, and this mining sector will continue to demand process improvements from their service suppliers to maintain competitiveness. Automation offers a real solution to these demands. A crucial quality control element in mining, beneficiation, stockpiling and shipping stages is ensuring representative samples of ore are taken along each step of the process. When these samples reach the laboratory it is imperative that the sample is representative of the entire stream and that no induced errors occur. Examples of automation start with mechanical primary and secondary samplers in the run-of-mine processes through to sample tower and laboratory crushers, dividers and collectors. Automation is widely used in many forms to provide reliable and repeatable samples for analysis whilst providing a safer working environment. Laboratory automation systems in use today vary from simple linear systems to sophisticated robotic cells. Sample automation in the iron ore industry has resulted in many benefits for both producers and their customers. The most significant benefits have come in the form of higher safety standards whilst reducing sample error, sample handling and sample contamination during collection. These benefits have been further augmented by reliability and repeatability of automating the final sample preparation and analysis stage. Today these benefits are reflected in reduced costs of sampling and improvement in both turnaround time and quality of results, whilst complying with Australian safety and ISO sampling standards.

Jan 1, 2007

By R Farnf, M Pegden, S Hosein, T White

A number of theoretical papers have been published outlining the use of electronic detonators to limit peak particle vibrations levels, but few empirical studies have been undertaken and even fewer examples have been published of the use of such technology in the aggregates industry. This paper gives a summary of the research work carried out at two limestone quarries in the North of England, where a series of blasts were used to compare and contrast the use of electronic and non-electric detonators. The majority of blasts were carried out using the same burden, spacing and decked charge weight loadings. A methodology was established that could be used to reduce the peak particle velocities (PPVs) at two or more specific locations by using single-hole blast vibration signatures in conjunction with specific electronic detonator timing intervals. The initial study concluded that this was only possible if single-hole signature blasts were periodically recorded to establish the shape of the correct vibration envelopes as properties were approached. These wave envelopes could then be used as the basis for choosing the specific electronic detonator timing intervals to give the lowest PPV for the properties or locations concerned. This methodology was then used in the second study to access a large volume of aggregates adjacent to a working railway tunnel. The financial benefit for the company was to convert these additional tonnages of rock from being a resource to an exploitable reserve. The project involved careful blast design and the instrumentation of a number of boreholes to enable the results of blast monitoring exercises to be compared with predicted PPV results. The iterative process involved the vibration results being uploaded into æBlast LogÆ (an expert blasting database system developed by the Blasting and Environmental Research Group at the University of Leeds) and analysed to produce predictions ready for the next blast.

Jan 1, 2007