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The mining industry represents a small part of the international economy. Comprising few large companies, the industry exhibits volatile returns and over the past 25 years has failed to produce a long-term return that meets its cost of capital. It is not surprising, therefore, that the minerals extraction and processing industry is under considerable pressure from the investment community to lift its game. Management and boards are responding to this pressure by implementing more exacting cost control measures, capital management programs and through the process of consolidation. However, the cost of capital to the industry appears to have increased in recent years and investor attention seems to be preoccupied with the ænewÆ economy. Both of these influences will conspire to raise the bar for acceptable industry economic performance. This paper provides a useful snapshot of the minerals and extraction industry as it enters the 21st century. It remains cautious about future performance other than to conclude that single digit returns are likely to prevail, albeit at higher levels than over the past 25 years.

Jan 1, 2000

Open stoping dimensions are typically controlled by a number of factors including production drilling capacity, scheduling, fill constraints, orebody dimensions and host wall rock conditions. Frequently host wall rock conditions are the key control on stope dimensions. As a new mine is brought into production, there is a steep geotechnical learning curve for those associated with the development of the mine. Initially, the experience and observations gained at other mines is used to guide the stope design. As experience is gained at the new operation, site specific techniques can be validated for use. This has been the case at BHP Cannington, where a heavy emphasis has been placed on the validation of empirical stope stability techniques for site specific conditions and experience. A range of empirical and numerical techniques can be applied during the design of open stopes. The empirical techniques are an experience based application of known performance levels during the design of open stopes. The numerical modelling and structural tools can be used to compliment the empirical techniques so that an understanding can be gained of the likely stress and structurally controlled failure mechanisms.

Jan 1, 2000

By S Blackburn, T Veasey

The physical and mechanical properties of rock can be measured by a variety of standard tests, and studies have shown that there should be a fundamental connection between breakage in comminution and rock æstrengthÆ. The current study aims to develop the ring-loaded strength test, used as an industry standard for the characterisation of brittle ceramics, for determination of comminution behaviour from exploration borehole core samples. The test procedure is simple, reproducible and can yield 250 separate measurements from a one metre length of drill core. The effects of material grain size and fabric on the degree of scatter of results have been investigated with respect to the ring-loaded strength test. This study has also compared the ring loaded strength to the chevron bend test used to determine the Mode I fracture toughness. A wide range of rock materials have been studied and with further work it is conceivable that an operational work index could be obtained directly from exploration drill cores tested via the ring-loaded disc test.

Jan 1, 2000

By P Cameron

The Julius Kruttschnitt Mineral Research Centre (JKMRC) has recently commercialised a variety of new products for the mining industry through its commercial division (JKTech). Although the products cover a wide variety of niche applications, a common thread runs through the Research, Development and Commercialisation (RD and C) process: they have emerged from industry sponsored projects. The development history of JigScan (a control system for the mineral-processing jig) is a good example of how this RD and C process works in practice. It involves building mutually beneficial partnerships between the JKMRC and the mining industry through several incremental projects with one or more industry sponsors. All research projects have objectives to demonstrate but these projects also feature a degree of product development to actively encourage and support the longer-term vision for the mature commercial technology. The process to develop JigScan as a commercial product worked because each incremental project recovered costs, provided an immediate benefit for the sponsor and contributed to the longer-term development objectives of the JKMRC. Integrating development with research need not greatly increase the cost of research objectives generally provides a more robust research outcome for the sponsor and greatly reduces the overall development risk. Successful projects often feature industry mentors actively participating in the RD and C process. Additional funding from government appears to be easier to obtain when such close partnerships with industry are apparent. Finally, the business structure of the JKMRC within the University of Queensland ensures that commercial outcomes, developed within the contractual arrangements of the underlying RD and C projects, are used to benefit and support further RD and C with the mining industry. This paper tells the story of the development and commercialisation of JigScan, and draws conclusions about this kind of RD and C model.

Jan 1, 2000

The æProfit Driver ModelÆ is a tool which builds costs from first principles and integrates revenue, costs and physical mining parameters and, hence, can quantify the impact and leverage on profit. In this paper an æexample mineÆ has been created to represent a typical Australian Open Cut Coal Mine. This has then been input into the Profit Driver Model to allow different variables to be tested. A series of variables were tested to determine which ones had the highest impact on profit and results are useful to management as a guide to the areas in which they can focus effort to achieve better profitability. Whilst the highest profit drivers are those external to the control of management and include selling price and exchange rate, the next most sensitive are those variables related to the geology of the mine and the mining method. These included coal quality, yield and strip ratio. Site management has some control of these. For example, the ability to vary the sequence of mining or improve the yield by a more efficient coal washing process. The efficiency of the workforce and management has similar impact to the mining variables. Finally, there are the supply variables, such as fuel, labour and explosives which are the least sensitive although, cumulatively, still significant. Each mine is different and the results of the example mine will not apply to all mines. However, the approach taken is universal and the tool illustrates a simple method to quantify the profit impact when changing variables. The benefit of the approach is the short time taken to get a set of results. This allows the more detailed and time consuming work to be more focused. The results illustrate that management has a significant influence on profitability.

Jan 1, 2000

By D Craw

Bulk ore tailings from the Macraes gold mine gold extraction process are stored in a large (ca 0.6 km2, 80 m deep) mixed tailings impoundment whose pH is maintained near 8 by natural rock neutralizing capacity. The mixed tailings will be stored in this impoundment in perpetuity after mining ceases. Confidence in the long term environmental stability of these tailings can be gained from examination of mineralogically and chemically similar geological situations in the immediate vicinity. A sequence, typically about 5 m thick, of sands and gravels derived from the Macraes mineralized zone 12 000 to 28 000 years ago contains rounded detrital sulphide mineral grains which are unoxidized despite close proximity to the surface and occasional incursion of oxygenated waters. Saturating water pH is currently 7-8. Sands with 0.2 to 0.8 wt % organic carbon host sulphate-reducing bacteria (SRB), and localized cementation by authigenic framboidal pyrite has occurred. Comparison of the 28 000 year-old sediments with the modem tailings suggests that similar chemistry will prevail, possibly with deposition of authigenic pyrite in the tailings, in the long term. As long as the present slightly anoxic and circumneutral pH environmental conditions are maintained in the mixed tailings dam, sulphide decomposition and acidification are unlikely. These sediments provide a plausible geological analogue for long-term benign storage of the mixed tailings impoundment.

Jan 1, 2000

James Barnes is Managing Director of James Barnes & Associated Ltd which is a company that has invested ten years of development to provide developers with a transparent, user friendly consultation framework that identifies who needs to be consulted, how they are to be consulted and procedures required to manage the risks associated with getting all the wrong! Despite the assertion above, this paper is not about to provide delegates with the answer to whom they ought to consult or identify the expectations that Maori might have in regard to the consultation process. It would be a very brave person indeed who would venture an opinion on such a sensitive subject. There are no short cuts to finding out what expectations Maori might have on any given situation. Nothing can be taken for granted. What this paper will attempt to do however is provide practical insights into what might be on the minds of Maori interests as they deal with the issues associated with mineral resources, particularly those under Treaty of Waitangi Claim. The Treaty of Waitangi has a significant bearing on the current debate between Maori and the Crown regarding ownership of mineral resources in New Zealand. The Waitangi Tribunal is currently hearing a case presented by a number of Iwi over the ownership of oil and gas resources in Taranaki and Hawkes Bay. Others will follow. The Crown and Maori have never been able to settle differences over ownership rights without resorting to legal action and it looks like this scenario is about to be repeated in regards to minerals. The Crown has a duty to actively protect the Maori interest. This is a fundamental expectation in the relationship between Maori and the Crown. In the case of minerals, Maori have yet to see the Crown do its duty. The impact on developers has become evident through Maori objections to consent applications as the issues of mineral right remain unresolved.

Jan 1, 2000

By P Hanna

Following the Busang fiasco, more detailed guidelines were appended to the latest revision of the JORC Code released in September 1999 (JORC, 1999). Although the definitions and terminology essentially remained unchanged, the additional information in the guidelines has highlighted a number of issues for consideration by geologists undertaking computer-based resource estimations. The three main issues are:Data Integrity û details such as drilling and logging techniques, sampling procedures, assay tests, site visits, data recording and aggregation methods need to be considered. Geological Interpretation û is the Competent Person applying the appropriate software interpretation to the deposit in accordance with the regional setting. Are the correct computer-based tools being applied and are they producing the desired result (without compromise) to the satisfaction of the Competent Person? Modelling Technique û the importance of the relevant experience of the Competent Person not only in regard to the geology, but also with respect to the modelling algorithms and resource calculation methods of the computer software system involved. At the end of the day, it is essential that the Competent Person undertake a reality check on the resource estimation itself. They should also check that the borehole spacing is in accordance with the level of continuity for each critical parameter (such as structure, grade, impurities, etc) for which the resources are categorised.

Jan 1, 2000

Mobile mining equipment presents only a small portion (ten per cent mining project costs but the selected technology will determine to a large extent the mining performance and mine profitability. The actual performance of the selected mobile equipment technology will rely on the support functions, infrastructure, user interface and user acceptance. Optimising the technology to match the circumstances is an increasingly important phase in a mine feasibility study. Smartly done feasibility studies include the possible future needs of changing or building-up of the selected technology. In massive mining applications the machinery faces quite different challenges than in selective or small-scale mining applications. In massive mining applications the efficient and continuous move of large amounts of material has led to the use of increasing degree of automation. This higher degree of automation in a mining application, on the other hand, will be best applied to a smooth and streamlined mining process and operation. Mining methods like block caving support automated operation. Automated mobile equipment needs supportive infrastructure, monitoring and information transfer systems as well as well established working procedures. Too often the user interface and human factor is disregarded during the consideration of automation. Through the available supplier programming tools it is possible to see how much the selected technology provides flexibility in changing production or economical situations, when major rebuilds or replacements are necessary, and view the effects of all these on the mine economy. When adequate technology is available from various sources, the difference becomes from preparing for the future, managing costs and combining the best layout with the most suitable technological solutions.

Jan 1, 2000

By S Vearncombe

SpaDiSÖ is a revolutionary approach to the spatial analysis of point data using geometry to analyse geometry! SpaDiSÖ uses each and every spatial relationship and is not dependent on mathematical models. For n points there are n2 û n spatial relationships and, because of the square function, the method yields interpretable results for both small and large data sets. SpaDiSÖ is an alternative to variography for directional studies. At the regional scale, the analysis can assess distribution patterns of mineralisation and potential controlling structures. At the deposit scale, the characteristics of zones of mineralisation such as direction, spacing, high-grade ore direction and grade distribution can all be deduced.

Jan 1, 2000

By P Cavieres, R Dunlop, S Gaete

El Teniente Mine started the exploitation of the primary rock in the beginning of the 1980s decade, using caving methods. Since the beginning the mining activities have induced seismicity including some occasional rockbursts. Owing to the relevant damages, the mining operations were stopped in some production sectors. This paper describes the concepts that have been used in order to control the induced seismicity based on the strategies for controlling the rockmass breaking process, which depend on mining parameters. It also presents the main concepts applied in the Teniente Sub6 sector design and the experience collected during its sector exploitation.

Jan 1, 2000

By S M. Denn

The Cawse nickel-cobalt operation is situated 50 km NW of Kalgoorlie in Western Australia, at latitude30o22'30'' south and longitude 121o08'30'' east on the Kalgoorlie 1:250 000 geological map sheet (SH 51-9) (see Figure 1). The project is owned and operated by Centaur Nickel Pty Ltd (CTR) and was the first in Australia to commercially produce nickel metal and cobalt sulphide through pressure acid leach (PAL) technology. Cawse has a total resource base (all categories of resources + reserves) of 213 million tonnes Mt at 0.7 per cent Ni and 0.04 per cent Co, comprising 127 Mt at Cawse Central which is 100 per cent owned by CTR and 86 Mt at Cawse Extended where CTR has a 80 per cent equity. Cawse Extended is located immediately to the northwest of the Cawse Central leases. All current reserves (proved and probable) of 30 Mt at 1.0 per cent nickel are contained within Cawse Central. In addition the Siberia project area 20 kilometres to the NW has a resource of 63 Mt at 0.7 per cent Ni. Cawse is a dry laterite deposit, with nickel and cobalt hosted by iron and manganese oxides. Cawse Central mineralisation extends over a ten kilometre strike length, with three pits currently being mined. The Bunyip pit has the premier nickel and cobalt grades within Cawse Central. There are seven dominant lithology types forming mappable units within current pit exposures. Four of these units are host to nickel and cobalt mineralisation. Ore types are defined as Upgrade, Grind and Non-upgrade, depending on their physical characteristics with respect to the treatment route. Mining commenced in February 1998. To the end of calender 1999 the operation has produced 2100 tonnes nickel plate and 470 tonnes of cobalt as a cobalt sulphide product. Future production will target 9000 tonnes per annum Ni metal and up to 2000 tonnes per annum Co, based on processing 500 000 tonnes of ore per annum.

Jan 1, 2000

By A Coulson, J Hussey

Noranda Inc is a Canadian mining and metallurgical company with its activities managed through businesses in copper and recycling, zinc, aluminum, magnesium and various metals through its interest in Falconbridge Ltd. Noranda operates three base metal mines, three copper smelters, one copper refinery, one zinc refinery, one lead smelter and refinery, three copper recycling and sampling facilities seven aluminum producing facilities and one magnesium production facility in the construction stage. The mining side of Noranda has a strong history of open stope, cut and fill and shrinkage mining. The 1999 Noranda Annual Report lists a 206 million tonne resource located at Porphyry Mountain in GaspT, QuTbec. Mont Porphyre is a large tonnage, low-grade porphyry style Cu-Mo deposit that was discovered in 1994. It is located at a depth between 1.0 and 1.7 km below surface and characterised by a very competent rock mass. The Mont Porphyre resource is located adjacent to the town of Murdochville, close to NorandaÆs Mines GaspT operations. Mines GaspT closed its open pit and underground operations in 1999 after approximately 45 years of mining, but still operates a copper smelter near Murdochville. The low-grade and great depth of the Mont Porphyre resource suggested that mine design could not be based on the conventional Noranda open stoping mining practice. This paper will review NorandaÆs approach to evaluating the Mont Porphyre deposit. The approach included two definition diamond drilling campaigns, a review of current caving practice, an in-house scope study, a geotechnical logging program for diamond drill core and participation in an international study on cave mining. One interesting component of NorandaÆs approach was the scope study that involved a team of multi-disciplinary personnel drawn together for a short period of time. The objective of the scope study was to determine what conditions would be necessary to mine the deposit and to assess the merits of continuing with further exploration work. A review of current worldwide underground bulk mining practices, and in particular an evaluation of the applicability of caving mining methods, were key components of the scope study. The scope study team concluded that derivatives of caving could be applied to the mining of Mont Porphyre, but additional diamond drilling was recommended to further define the deposit and improve the level of geotechnical information. Following the recommendations of the scope study team, a diamond drilling campaign was completed during the summer and fall of 1997. The 1997 drilling campaign had two secondary objectives, in addition to the primary objective of defining the limits of the orebody. The first objective was to improve the level of geotechnical information available for the characterisation of primary block cave fragmentation. The second objective was to improve the delineation of a lower grade intrusive core. A geomechanical investigation was conducted and included particular emphasis on geotechnical data collection and analysis. A review of the actual data collection process, including several trials of different core orientation techniques, will be included in the discussion.

Jan 1, 2000

Ok Tedi Mining Limited has recently completed the first phase of a trial to compare the performance of D26B Krebs cyclones in different configurations to the new Warman 650 mm CAVEX cyclones. From 1992, rougher flotation feed size has increased from the target d80 grind size of 150 ¦m with increasing SAG mill throughput. At high SAG mill throughput, operators have difficulty maintaining the target cyclone feed pressure and must increase the cyclone feed density, thus resulting in a coarsening of the cyclone split. Warman International have developed the CAVEX high capacity cyclone. The new CAVEX cyclones, when compared to the Krebs units appear to:produce a measurable increase in volumetric flow for the same pressure drop; maintain or decrease the proportion of coarse particles reporting to overflow; and lower the overflow density. In all plant trials to-date, the CAVEX cyclones appear to be superior to the standard Ok Tedi Krebs cyclones. Further testwork is planned to evaluate modified Krebs cyclones (with recent design improvements) against the CAVEX cyclones.

Jan 1, 2000

Good morning and thanks for the chance to talk to you. It's really pleasing to see so many industry representatives here I want to spend a few minutes talking about issues relating to your industry. At the end of today I would like to leave you with three strong messages from government. The first is that this government supports environmentally responsible mining and the endeavours of the mining industry. The second is that explorers and developers are wanted and welcomed in New Zealand. And the last is that it is up to the industry to keep the public properly informed about how your industry and to constantly work on improving your public image. The mining industry is a high-tech industry which fits snugly with our concept of a growing knowledge-based economy. It has particular value for regional development, the gold mining industry alone provides more than 4,000 jobs û mostly outside of the main cities. The industrial minerals industry is twice as large as that. As well as those people directly employed by the industry there are greater downstream effects for the community. One example from the broader extraction industry of this is of the local pie shop down the road from one of Taranaki's petroleum industry locations. The shop sells over $4,000 worth of pies a week to workers in the industry. That's just one example of the positive benefits the industry brings to its local community and is the sort of real positive benefit you need to be telling people about  

Jan 1, 2000

By W J. Rankin

A study of refined metallic copper and nickel production was carried out using Life Cycle Assessment methodology to estimate the life cycle emissions of greenhouse and acid rain gases for these metals using data derived from the literature. Various processing routes were investigated which included a pyrometallurgical and a hydrometallurgical route for each metal. The effect of a number of process variables, namely ore grade, fuel type for electricity generation and efficiency of generation were also examined in the study. The results of the study, expressed in terms of total (or full cycle) energy consumption, Global Warming Potential (GWP) and Acidification Potential (AP), showed that the hydrometallurgical processes involving solvent extraction and electrowinning had higher energy consumptions and GWPs than the pyrometallurgical processes for both metals. Nickel metal production was shown to be several-fold more energy intensive than copper metal production. The significant effect that falling ore grades have on attempts to meet greenhouse emission targets was also highlighted in the study.

Jan 1, 2000

By P Murthy, Z Guan, P Townson

In this paper, we introduce a methodology to optimise mining equipment operation in terms of the conflicting concerns of productivity and availability. We also introduce the concept of damage points and equipment dutymeters. These provide the mine management with tools to monitor the success of such optimisation. Since we have quoted the results of an on-going Australian Coal Association Research Program (ACARP) project, the apparent focus of this article is on draglines. However, the concept is equally applicable to other equipment. Mining is the type of business that requires a large investment in capital infrastructure and equipment to produce a product that is sold at a relatively low unit cost. In such a business, the key to competitiveness lies in achieving the full realisation of capital investment ie sustained production at high levels. Some of the concepts outlined in this paper are essential components of this picture.

Jan 1, 2000

By V S. Svinin, V V. Rybin, V A. Maltsev

In large-scale mining, large-sized intermediate pillars, or block-pillars, are generated on the horizon or between closely located mines. These pillars are mined under high rock pressure that results from the stress concentration zones superposition from closely located working excavations. This problem becomes much more complicated if high tectonic stresses occur in the rock mass inducing a rock-burst risk situation. Mining experience gained in mining seven block-pillars at three Khibiny mines in Russia under the geomechanical situation like that described aboveÆ is discussed in detail. It has been shown how safe mine of block-pillars depends on their width, location relative to significant geological failures and uncaved rocks of the hanging wall, the order of pillar recovery, and application of special measures for rock mass stress relieving. Basing on the analysis of the mining experience and special scientific researches, the basic principles are worked-out for safe block-pillar mining under rock-burst prone conditions.

Jan 1, 2000

By W D. Rech, K W. Keskimaki

As an integral part of the conversion from rail haulage to conveyor haulage at Henderson, over six kilometres of drifting and several large complex openings were mined. The deepest of these areas was nearly two kilometres beneath the surface, bringing all of the challenges of rock stress and heat that come with mining at these depths. Though many mines operate at these depths, the development of the infrastructure necessary to support a 36 000 tonne per day caving operation brought some unique challenges to the development mining activity. The issues handled include: finding experienced staff for a æfast trackÆ development program; rock bursts and ground conditions; inflow of 50 degree centigrade water; acceleration of the project completion; large diameter raise boring and difficult muck handling.

Jan 1, 2000

By S Latchireddi

Close circuiting autogenous and semi-autogenous mills is an energy efficient way of grinding and a number of operations have utilised this in the design of their comminution circuits. Owing to the large flow of slurry through the mill that results from operating this way the grates and pulp lifters have to be designed to cope. However, the literature has little or no information on how grate and pulp lifter size and design are related to their ability to remove slurry from the mill. Over the last few years the JKMRC has been researching this area and has developed relationships between grate/pulp lifter design and flowrate capacity. At the same time it has determined the major causes of pulp lifter inefficiency and a solution to preventing this inefficiency (the Twin Chamber Pulp Lifter). This paper describes the models that have been developed through this program and uses industrial scale data to illustrate their accuracy. Results from the industrial trials of the Twin Chamber Pulp Lifter are also presented.

Jan 1, 2000