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

Jan 1, 1994

By B Flynn, P Knights

Low-loaders or 'floats' for relocating equipment in surface mines are limited to a capacity of approximately 350 t. In the iron ore industry it is desirable to be able to rapidly relocate excavators in order to maintain production rates within appropriate quality limits. In addition, the ability to rapidly relocate heavy equipment raises the possibility of improving the quality of repairs by performing maintenance in controlled shop conditions. However, many iron ore operations operate hydraulic excavators in the 600 to 800 t range, with newly released excavator models exceeding 800 t. These excavators are too large to float using conventional technology. This paper examines the potential for using multi-bogie transporters to relocate large hydraulic excavators in surface mines. Recent innovations have seen the development of modular transporters which can be coupled together to achieve larger platform areas. When separated, and with their drive bogies neutralised, these units are able to be towed behind prime movers and relocated between mines via public roads. The potential cost savings for relocating a Terex RH170 excavator in an open pit coal mine are examined. In the first six months of 2008, the analysis showed the potential for a 38 per cent reduction in total travel time with a corresponding revenue increase of approximately $350 k. The paper recommends that a feasibility study be conducted into offering a heavy equipment relocation service within the Pilbara region.

Jan 1, 2009

By C Beal

Proper understanding and management of production drilling in sublevel cave (SLC) mines is essential for meeting production targets and for avoiding inefficiencies that could lead to costly bottlenecks. In many SLC mine management models drilling is considered a derivative activity of firing and bogging. Its scheduling is considered to be implied in a firing schedule and given an arbitrary target completion, ‘several weeks’ or ‘a month’, ahead of production firing. Like development, drilling activities are most efficient when conducted separately from other production activities. Unlike development, however, it is not apparent during planning and feasibility how far in advance of firing drilling activities ought to be conducted. This paper presents a method of defining a minimum threshold of drilled stocks above which drilling, firing and bogging operations occur most efficiently. As an example, the drilling activities, procedures, and maintenance at Glencore Xstrata’s Ernest Henry Mine are presented, and the larger scale consequences of improvements to these areas are presented to illustrate their importance in the operation of an SLC mine.CITATION:Beal, C, 2014. Understanding the role of production drilling and drilled stocks in efficient operation of a sublevel cave mine, in Proceedings 12th AusIMM Underground Operators’ Conference 2014 , pp 235–242 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Mar 24, 2014

Relationships between lead blast furnace performance and the composition and size distribution of sinter were determined from analysis of lead blast furnace operating data. Sintering plant practice was subsequently modified and substantially improved furnace performance resulted.

Jan 1, 1971

By N Cann

In the 10 years from 1998 to 2008 the annual number of fatalities in the Australian mining industry has plateaued (MCA, 2007-08 and abc.net.au website). Despite significant efforts to eliminate fatalities, this is not a comfortable statistic in this very public performance indicator.GHD has been working with the mining and minerals processing industry to identify the key risks that lead to fatalities utilising a semi quantitative risk assessment technique (SQRA®), initially developed to assist Major Hazards Facilities prepare Safety Cases (OH&S, 2007-08) in response to the Longford Incident in 1998 (Dawson and Brooks, 1999).Workshop cross functional teams are assembled from the sites and led by the GHD facilitators to identify the incident types that can have fatal consequences, the causes of those incidents and the controls that are utilised (or could be utilised) to reduce the risk. The risks for each incident type are quantified to produce a risk profile for the facility and the critical controls – the controls that have the greatest impact at reducing the risk of fatality – are selected. These controls are assessed for their adequacy and improvement actions are identified. Prioritisation of the actions is achieved by re-estimating the incident risk profiles.A review has been undertaken using a small sample from the more than 100 individual studies that GHD has completed at mining and minerals processing sites. The five most significant risks reported by sites are:1. Fall from Heights,2. Vehicle/ Vehicle and Vehicle/Pedestrian interactions,3. Entanglement,4. Molten Metals and Materials, and5. Electricity.The most significant reductions in risk identified were found to be by implementing engineering controls. Examples include:1. Chutes to contain splashes and spills of molten materials,2. Redesigning instrument and equipment layouts to take personnel away form high risk areas,3. Designing remotely operated equipment to remove personnel away from high risk areas,4. Proper fire fighting equipment provisions such as deluges around flammable materials, and5. Adequate risk assessment to ensure equipment is designed to handle the real situations and not a design case to meet an arbitrary specification.All of these cases and many of the actions identified in the studies could have been handled through better design and construction early in the life of a project rather than retrospectively fitted after operations have begun.

Aug 8, 2011

By J E. Everett, D Linden, P Maney

In response to the implementation of a new schedule for iron ore fines in the International Maritime OrganizationÆs (IMO) International Maritime Solid Bulk Cargoes (IMSBC) Code, improved measures for the management of moisture have been developed. In particular, prediction of cargo moisture allows management of iron ore fines within the supply?chain to facilitate the safe?shipping of iron ore fines.An ARIMA model, augmented to allow for shipment tonnage, has been developed to predict the moisture level from previous shipments of the same product. The model explains about 60 per cent of the moisture variance. It was found that inclusion of other available information, such as ore composition, train/rake assays and recent rainfall at port and mine, did not add to the predictive power of the model.CITATION:Everett, J E, Linden, D and Maney, P, 2013. Predicting iron ore fines shipment moisture, in Proceedings Iron Ore 2013 , pp 17-26 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 12, 2013

By S Chaudari, T Ren, T Harvey

Management of respirable dust on longwall face remains a challenging issue for mine operators, particularly for the new generation of thick seam longwalls. A fundamental understanding of the airflow behaviour around the shearer is critical for dealing with the dust control issue on longwall faces. Computational fluid dynamics (CFD) modelling techniques have been used in this study to conduct a detailed investigation of the air and respirable dust flow patterns around the longwall shearer. Three CFD models have been developed to represent different longwall cutting heights. The results of these modelling studies tallied well with field measured airflow data from different mines. The validated thick seam longwall face model was then used for detailed parametric studies to simulate the effect of various parameters and dust control concepts. The dust control options investigated include various spray configurations, shearer clearer, modified cutting sequences and shearer scrubbers of various capacities to minimise the respirable dust migration towards the walkway area of the longwall face. This paper presents a summary of the results of these CFD modelling investigations.

Jan 1, 2005

By N Swiegelaar

Loubert Witbank is a defunct coal mine situated near Ermelo in South Africa. Mining ceased in 1992, and within a short period acidic decant occurred, with a significant impact on the regional catchment. The problem was studied during 1996/1997, and the site remediated in 2001/2002 by the Department of Water Affairs and Forestry. Remediation involved primarily submerging of carbonaceous material, backfilling of voids, and capping of the site. Acidic water with high iron levels was also neutralised and discharged. The project was used to assess the cost benefit of different options to the downstream users, from which target expenditure was derived for the various improvements. The cost benefit analysis for neutralisation provided a basis for the investigation of low-cost neutralisation options that are robust enough to be applied in a remote environment.

Jan 1, 2003

By J Wheeler

The objective of this paper is to examine the operation of high frequency screens in closed circuit grinding, where the outcomes achieved indicate favourable economic gains at the comminution stage and downstream processes, including flotation, dewatering, and filtration operations. The classification process in grinding circuits has been slowly evolving within the last century. The history of classification devices brings to mind rake classifiers and spiral classifiers, which although having higher efficiencies compared to hydrocyclones, were not able to keep pace with the evolution of concentrator equipment treating higher tonnages. This higher tonnage throughput has tended to drive the concept of utilising hydrocyclones as the classification stage in closed grinding circuits. The comminution process is commonly the most energy intensive stage of mineral processing. Researchers have determined that the classification stage in the comminution process has the greatest potential for improvement. This paper is intended to inform mineral process engineers of the benefits that high frequency screens offer over hydrocyclones. This will be done by reviewing the purpose for the evolution of classification in the comminution process, documenting past and recent studies, and explaining the modern technology that is currently available.

Aug 8, 2011

Investment decisions in the Australian mining industry are often made without awareness of the impact of risk on project outcomes. A fundamental change in thinking is required to move away from the traditional attitude of æcushioning the blowÆ towards a measured approach to project risk. Such an approach involves quantifying and understanding project uncertainty so that investments may be shielded from downside risk while at the same time exposed to upside potential. Communication and collaboration between study teams and corporate financial managers must be improved before the industry can improve its project investment record. Monte-Carlo simulation provides a way to quantify and understand investment risk, but its accuracy depends on how well the variability of input parameters is estimated. Research in this area is currently centred on quantifying uncertainty in mineral resource estimation using new conditional simulation techniques, but a less-rigorous method can be applied in practice to begin the education process and develop the required awareness at board level.

Jan 1, 2003

By Adams R. W

A commercial scale strong acid leaching plant was commissioned at the Risdon plant of the Electrolytic Zinc Company of Australasia Limited, a member of the Pasminco group of companies, in February 1988. It was designed to upgrade the lead/silver residue product from 26% to 37% lead, thus improving the realised value and increasing overall zinc recovery. This in turn enables the lead smelter treating the lead residue to improve its productivity. The equipment consists of two 250m3 bricklined leach tanks and two 6.5m diameter stainless steel high rate thickeners operating with counter current washing at 95¦C and 120 g/L H2SO4. The present filtration and drying equipment is also being replaced. Two 35m2 squeeze action filter presses equipped with horizontal plates are being installed, together with ancillary drying equipment to ensure that the final product complies with the transportable moisture limit. The new filtration plant is due to be commissioned in mid-1989.

Jan 1, 1989

By P Grouhel

In the recent years several new blasting technologies have come into use in surface mines. Electronic initiation, low-density emulsion explosives and modelling software are in regular use throughout the world. In Australia, these new technologies have achieved significant application, largely in open cut coal mines where more than 20 per cent of blasting is now conducted with electronic initiation systems. These new techniques have contributed to the vast improvement in blasting outcomes evidenced by increased recovery of saleable product and faster excavation rates. In large surface mines, OricaÆs unique combination of electronic initiation systems, bulk emulsion explosives and modelling software can be harnessed to target critical value outcomes. This includes targeting better fragmentation, increased ore uncovery rates and better wall stability û all adding to improved mining operation profitability. Orica Mining Services have combined these technologies into a set of offerings called Blast Based Services (BBSÖ). The paper describes applications of these new technologies and possible benefits in large surface mines.

Jan 1, 2007

By B McFadyen, Y Potvin, K Woodward

The Australian Centre for Geomechanics (ACG) held two workshops in 2019—one in Australia and one in Canada—to discuss processes and methods currently used in the mining industry for stope design and reconciliation. In practice, this work strives to optimise stope performance and aims to maximise ore recovery (minimise underbreak), while minimising dilution (overbreak). One of the key findings from the workshops was that current stope design practices, almost exclusively, rely on some versions of the empirical Stability Graph methods developed in 1980s. Although robust and useful at the feasibility study stage, there are a number of inherent shortcomings with this approach. The Stability Graph’s limitations first lie in that it cannot assess underbreak, which is a very important measure of performance. Furthermore, the method doesn’t consider a number of factors which often have a critical influence on stope stability, for example, drilling and blasting or the presence of faults. Given the current industry standard practice, there is a great opportunity to reinvent the stope design process to optimise performance. A finding of the workshops was that every mine quantifies stope performance in terms of volume reconciliation with a focus on dilution and ore losses, and reconciling metal tonnes recovered from the mill. Many mines further investigate stope performance by looking at individual stope faces and the causes for the deviations between the planned stope shape and the measured cavity. Recent research at the ACG has shown that investigating overbreak and underbreak at a higher resolution is a powerful way to identify the root causes of overbreak and underbreak. Finer scale assessment is achieved using an octree analyses, which effectively divides the relevant stope volume into cubes on the scale of a metre and produces many tens of thousands of data points. The octree data structure and subsequent analysis underpins a data-driven stope design methodology. The ACG is currently developing a design approach based on multivariate modelling methods that can account for the many variables that influence stope performance and forecast stope overbreak and underbreak results. Back-analysing stopes based on octree reconciliation results provides a rich database for training the model. Once the model can achieve reliable forecasting of overbreak and underbreak, an interactive drill-and-blast design will allow for the assessment of different firing strategies to optimise stope performance.

Mar 15, 2021

The main asset of a mining company is the mineral resource; without resources there is no mining business and the infrastructure is useless. In this context the role of the mining geologist is to always keep the resource inventory to an optimum level for the mining business and to maximise the transformation of the resources into reserves in a multi- disciplinary work environment. In short, a ægood mining geologist has to always provide the best ore to the millÆ.To do his/her work properly, several technical skills are needed: to know how to observe and describe nature in order to optimise the data acquisition process, particularly when mapping; to have a good understanding of natural variability in order to develop proper sampling strategies and sample preparation protocols to minimise all the errors generated by the sampling process; to have a good understanding of assaying practices: their limitations as well as their assaying errors; to carefully and properly store the geological data and information and to preserve the geological patrimony; to fully understand ore forming processes to generate the best possible geoscientific models, which are fundamental for the mining business; to fully understand the consequences of the geoscientific models along the value chain from rock to cathodes; and to continuously validate and improve geological practices and models by continuous data collection and observation of geo- mining-metallurgy processes. Some very important behavioural competencies are also needed:long-term vision, passion for excellence and value generation, strategic influence, systemic and innovative thinking, and knowledge and experience transfer. Last but not least, it is important to point out that a deep knowledge of the mining business is essential to add value by using geology best practices.

Jan 1, 2006

By A Rantala, C Cruickshank, I Muzinda, O Haavisto, J Timperi

The production at First Quantum Minerals’ (FQM) Kevitsa Mine, located in northern Finland, commenced during the second quarter of 2012. Presently, the mine processes approximately five and half million tonnes of ore annually, producing nickel, copper and platinum group metal (PGM) concentrates. In order to support fast production ramp-up and optimise the performance of flotation thereafter, an extensive advanced flotation control solution was implemented by Outotec in collaboration with FQM Kevitsa.In addition to basic process instrumentation and process control, each of the 14 Outotec 300 m3 and another 26 cells, ranging from 20–160 m3, have been equipped with state-of-the-art systems providing froth image analysis and automatic froth speed control. Also, the flotation cell levels are stabilised with advanced feed-forward level control.The online analyser provides key feedback information of the process performance for the advanced process control (APC) system. Based on this information, APC system defines grades and recoveries according to rules defined by Kevitsa process metallurgists. This system executes the control strategies for optimising the production of concentrates.Throughout the implementation and support phases, specific and intensive attention was paid to ensure plant personnel gained full understanding of interacting with the system and how to incorporate their process experience and skills to optimise the APC strategy. This level of expertise is also a valuable asset in understanding the APC system’s contribution to the overall performance of the plant as well as providing the ability and confidence to define key performance indicators used for continuous assessment. The experiences and results from site achieved so far are discussed in this paper.CITATION:Rantala, A, Muzinda, I, Timperi, J, Cruickshank, C and Haavisto, O, 2014. Implementation of advanced flotation control at First Quantum Minerals’ Kevitsa mine, in Proceedings 12th AusIMM Mill Operators’ Conference 2014 , pp 369–378 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 1, 2014

By V Rodríguez, M Hormaza, R J. Romañach, C Pinzón-de la Rosa

The authors have presented their ideas for developing a powder sampling device in the I-Corps™ program sponsored by the National Science Foundation (NSF). This is an intensive customer discovery program developed to increase the economic impact of the research sponsored by NSF.The I-Corps™ program requires performing at least 100 interviews with potential customers in various industries. These interviews are essential to establish the need for a particular product or solution, and identify potential commercialisation partners and competition. The interviews have revealed the absence of Theory of Sampling (TOS) principles in many companies. The interviews are designed to identify the difficulties associated with current sampling practices that do not meet TOS principles.The I-Corps™ program is a significant challenge for scientists who often avoid discussing a concept in fear of losing their research idea. The program teaches how to obtain information without releasing the important intellectual property related to a product development idea. The I-Corps™ methods have been used to discover the prevailing ideas on sampling in various industries.I-Corps™ also teaches how to present ideas to investors; another significant challenge for a scientist. We are currently learning to present sampling and TOS to investors and business development experts, and will share some of these experiences.CITATION:Pinzón-de la Rosa, C, Rodríguez, V, Hormaza, M and Romañach, R J, 2017. Theory of Sampling meets the National Science Foundation I-Corps™ program, in Proceedings Eighth World Conference on Sampling and Blending , pp 351–354 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2017

By S R. Green, G D. Corder

The legacy issues from mining can, and have often, extended well beyond the closure of operations. However, conventional cost-benefit analysis provides little incentive to implement initiatives at the project development stages of a new mining project as the costs that will be incurred towards the end of the mine life, 20 years or longer, appear minor in net present value (NPV) terms. This analysis can be misleading as the true costs of managing post-mining land can continue for many years, or decades, after mining ceases and any resulting unfavourable legacy issues can delay or prevent government permits or licences to develop new resources. Proper upfront planning is critical for implementing successful rehabilitation and closure strategies. The investment in this planning needs to be done in a structured and rigorous manner taking into consideration the long-term and broad benefits of sustainable land uses after mine closure. The advantages of such an approach could include the streamlining of regulatory approvals by early advice to the regulator of identified issues and responses to those issues, and clear evidence that a strong social licence to operate ethic with local, regional and national benefits is included in the decision-making process. This paper investigates the potential closure options for two case studies at the early stages of project development - concept and prefeasibility. By using a sustainability framework that can identify opportunities and risks, prospective initiatives that deliver enhanced environmental, community and social benefits will be compared with compliance-orientated approaches. This comparison is made across the Five Capitals Sustainability Model - natural, human, social, manufactured and financial. The results of this analysis demonstrate that upfront planning during project development and due care and effort during the life of the working mine will reduce the risks of long-term detrimental legacy issues. This will ultimately benefit the mine operator, the local community and the state.CITATION:Corder, G D and Green, S R, 2012. Using a sustainability assessment framework to achieve enhanced legacy outcomes, in Proceedings Life-of-Mine 2012 , pp 311-318 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 10, 2012

The Sishen iron-ore-mine produces 3 pro= ducts with size gradings of 25 to 8 mm, 11 to 5 mm and 5 to 0,2 mm and has a product capacity of 20 Mtpa. Ore is produced at an average Fe content of 66,2 % Fe for the two coarser pro= ducts and an average of 65,3 % Fe for the fine ore product. Three stage crushing is practised to re= duce the run-of-mine ore to -90 mm after which it is screened into five different size frac= tions of which four are heavy media beneficiated in static baths and cyclones and the fifth frac= tion discarded to slimes dams. A final three stage crushing and screening process is employed to produce the final three Products which are homogenized by means of blen=ding systems nrinr to despatch.

Jan 1, 1987

By J Cortinez, P Vallejos, J Yianatos, M Rodriguez

Nowadays, one of the main problems in current flotation plants and new projects is the significant decrease in feed grades and changes in the mineral composition, which has an important effect on the mineral liberation and associations. Additionally, flotation plants usually operate with feed throughput higher than the original design, which has a significant impact on the feed particle size. All these conditions affect metallurgical performance, and must be evaluated and addressed, by improving control strategies for banks optimisation. For this purpose, the flotation of valuable minerals along the circuits requires better understanding, considering the compromise between performance and selectivity in flotation circuits. This paper presents a characterisation of the different minerals recovered along industrial flotation circuits. Plant sampling campaigns, performed in a copper industrial concentrator in Chile, provided the data for the study. Two rougher flotation banks consisting of cells of 130 m3 and 300 m3 were analysed. All the samples from the industrial surveys were analysed by screening and mineralogy, and the mineral recovery along the circuits was evaluated per particle size class, liberation class, type of associations, and others. Additionally, operating data on froth depth profiles complemented the evaluation of the mineral composition of concentrate streams, along the circuit. The results allowed for identifying and quantifying the main factors that affect the copper recovery and concentrate grade along the flotation banks. It was found that minerals with liberation lower than 50 per cent have a significant impact on the recovery. On the other hand, the decrease in the Cu grade in concentrates along the flotation circuits is mainly due to the relative increase of middling minerals (less liberated), non-valuable floatable minerals, such as free pyrite, and gangue entrainment. The characterisation of the gangue entrainment flow rate along the flotation banks showed a strong relationship with froth depth, which becomes more critical towards the last cells of the banks.

Aug 24, 2022

By T Trott, M Lewis, G Lumley

The analysis of equipment trends in The AusIMMÆs revision of Monograph 19 - Australasian Mining and Metallurgical Operating Practices (AMMOP) (in prep) in the paper by Graham Lumley raised some interesting, and in parts disturbing, trends in the Australian open cut mining industry. According to the Australian Bureau of Statistics (2011) the productivity of the whole mining industry is down by 34 per cent since 2001. In terms of open cut equipment, median output for draglines is down by 15 per cent since 2003, electric rope shovels are down by 41 per cent since 2003, hydraulic excavators are down by 39 per cent since 2008, front-end loaders are down by 39 per cent since 2007 and trucks are down by 41 per cent since 2006. Clearly e boom has not been good for the efficiency of the mines. During this same time, best practice (defined as the average of the top ten per cent by annual output per unit of input) has declined, but not by as much as the median (eg shovels down by eight per cent, excavators down by 19 per cent and FELs down by five per cent). This paper will build on the analysis of AMMOP to understand the differences occurring between median and best practice and identify the factors contributing to the decline in performance. As the industry enters a period of potentially lower prices for commodities and reduced margins, pressure will be brought to bear on mine sites to start moving more with the equipment they have. An understanding of where efficiency has been lost will be a key component in that. The information contained in AMMOP, and the subsequent analysis of that information in papers such as this one, will be crucial to reversing the decline in open cut equipment performance.CITATION:Lumley, G, Trott, T and Lewis, M, 2012. Reversing the trend in open pit mining equipment output, in Proceedings Eighth Open Pit OperatorsÆ Conference , pp 75-82 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 18, 2012