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All companies and individuals who embark on a business venture incur costs. For the most part these costs can be conveniently categorised, firstly into capital and operating costs and then into the various elements of these major cost centres. Although the nature of expenditure naturally differs as between industries certain broad cost types are characteristic of all heavy industries. The capital costs of gaining access to an orebody, equipping a new mine, building a treatment plant and perhaps refining and smelting facilities are likened to capital expenditure by a manufacturer on new plant and equipment required for an expansion or new product innovation. Similarly the day to day costs of labour and materials employed in the running of a mining operation can be likened to similar costs in other heavy industry. There is another group of costs that are not so easily categorised. Most industries incur unavoidable costs that do not form part of the direct or capital costs of physical production. These costs include taxes and other payments to government and research expenditure. The mining industry has a particularly heavy burden of non-production costs and it is the objective here to highlight and analyse a few of them. These costs are exploration expenditure, infrastructure expenditure, royalties and income tax. This is not to suggest that these are the only major non-production costs that the mining industry needs to bear. The industry may incur significant costs for environment protection, land tenure maintenance and on liaising with Government on a wide variety of matters. It is for reasons of subject manageability that the list is confined to the four costs mentioned. For the mining industry, exploration and infrastructure expenditure, royalties and income tax have several distinguishing features. Firstly, they are generally proportionately large costs. Exploration and infrastructure expenditure for example, could well exceed mine development costs. Depending on how royalties are levied, they may be very high in relation to profits earned and many in fact exceed profits. Secondly, except for income tax, they are costs that are generally not payable by other industries. Exploration expenditure is in some respects comparable with industrial research and development. However, because mines are wasting assets exploration is necessary for survival, and it is likely to form a larger part of costs per dollar of profits or sales than R&D. It can therefore be said that exploration is of far more significance to the miner than R&D is to the typical industrial company. Furthermore, unlike exploration expenditure, R&D results are transportable and patents permitting, transferable. The infrastructure burden that miners must carry is unique to the industry. Whereas urbanised industry is not usually liable for the capital cost of power, water, transport, townships and community facilities, the miner must finance these projects himself. Neither the payment of royalties, nor of course, income tax are unique to the mining industry. Royalties are more properly described as a unique charge on some primary industries but however described, they are a charge that manufacturing and service industries do not have to pay. Whilst we all pay income tax, the mining industry's uniqueness derives from the special problem that the industry has in arriving at annual net income in view of the capital intensity of the industry, partly due to expenditure on infrastructure, the indefinite life of capital equipment and its unpredictable residual value, funds expended on exploration and long lead times associated with a mine development. The third distinguishing feature of these costs is that, with the possible exception of exploration expenditure, they are heavily influenced by the policies and actions of Government. As such the industry has a responsibility to promote the industry by emphasising its potential to improve national product including exports and by requesting that the Government provide for the industry in its long term planning and seek its co-operation to prevent the industry incurring inequitable penalties relative to other industries.Finally, exploration and infrastructure expenditure are significant because they are front-end charges on a project. When due allowance is given the time value of money and the deferment of income from a mining development to which they relate, exploration and infrastructure expenditure assume greater importance than the raw money expenditure suggests. For all these reasons, exploration and infrastructure expenditure, mining royalties and mining income tax are worthy of detailed study. This is the purpose of this paper. The objective is to examine the determinants that give rise to them and provide some thoughts on their impact on on-going and potential mining developments and, where relevant, to make some suggestions as to how they may be minimised.

Jan 1, 1977

By P J. Harris, C T. OÆConnor

Collectors are used to impart hydrophobicity on particles thus increasing their chances of reporting to the froth phase. Also, the extent to which naturally hydrophobic gangue particles, such as talcaceous minerals, report to the froth can be reduced by the use of depressants. Thus the use of collectors and depressants will directly influence the extent to which hydrophobic particles report to the froth. However these hydrophobic particles will also have a direct effect on the characteristics of the froth phase, more strongly hydrophobic particles causing a reduction in the stability of the froth with the expected concomitant effects on grade and recovery. This study included microflotation (ie frothless flotation) and batch flotation of various ores using a number of different collectors and depressants and a newly developed froth imaging device (SmartfrothTM). Flotation performance was characterised by mass and water recovery, and recoveries and grades of the valuables. This paper shows how the various reagents influenced the behaviour of the pulp and froth phases. The critical importance of managing the type and dosage of reagents used in flotation with a view to optimising their influence on the froth phase is discussed.

Jan 1, 2005

By M P. Sandy, J B. Albrecht

"Narrow vein mining can be loosely defined as mining operations involving orebodies with a true thickness of less than 4 m. Some authors have limited the term to steeper-dipping orebodies where the ore will rill under gravity. However, ænarrow veinÆ can also legitimately refer to some of the flatter orebodies, such as many of the platinum, chrome and gold deposits of Southern Africa, and several in Australasia including Bullen (at Norseman), Sunrise Dam, Telfer (Patterson, 1993) and the famous æflatmakesÆ at the Emperor Gold Mine in Fiji (Gordon and Harmse, 1993). Where the orebody dip is less than about 40¦ additional effort is usually required to remove the broken ore, including the use of scrapers, hydraulic monitors or remote-operated excavators (Tombs, Buckingham and Hancock, 2008).Working in such narrow orebodies presents particular operational and geomechanics challenges. A range of mining methods have been developed or adapted to exploit narrow orebodies including:cut-and-fill,narrow vein bench or longhole stoping,Alimak stoping,shrinkage stoping, and methods for shallow dipping orebodies (including Airleg and mechanised methods).The paper discusses some of the advantages and disadvantages of each method with a focus on geotechnical aspects including mining sequence options, stress management, ground support requirements, dilution and recovery.CITATION:Sandy, M P and Albrecht, J B, 2012. An overview of geotechnical issues in narrow vein mining, in Proceedings Narrow Vein Mining 2012 , pp 185-194 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 26, 2012

It cannot be said that accurate and reliable ore reserve estimation is the fundamental of any mining operation success. Estimation techniques which are used to estimate the grade distribution of an orebody together with the assessment of uncertainty and risk have a vital influence on the success of any optimisation algorithm. Traditional estimation techniques such as kriging or inverse distance weighting are frequently used for assigning grade values to blocks. Various attempts have been made in order to compare geostatistical estimated methods for ore reserve estimation. This paper aims to evaluate the sensitivity of different estimation methods over changing the block dimension. For this reason, several block models with different dimensions were derived in Chador Malu iron ore mine which is located in 180 km northeast of Yazd in the centre of Iran. Each block model was estimated by different estimation methods such as nearest neighbours (NN), inverse distance (ID) and ordinary kriging (OK). The results of each estimation methods were compared against a control block file created by using the assay results of all blastholes drilled in the ore over four benches of the pit. The results signify that by estimating the large block size, no significant improvement occurred due to the employment of different estimation techniques. Furthermore, the grades estimated based on ID method is more reliable, but OK methods estimated more accurate tonnage.

Dec 6, 2010

Placer Dome Asia Pacific operates eight mines in the region and has two closed operations that are either under rehabilitation or at the latter stage of care, monitoring and maintenance. All operating mines are scheduled to close within the next ten years based on current proven reserves. Mine closure planning and associated risk assessments are integrated into both strategic planning and day-to-day operations within the Placer Dome group. Mine closure is all about predicting the potential risks and Placer DomeÆs knowledge has improved following the planned closure at Kidston Gold mine in North Queensland. Planning for closure commenced in earnest in 1994, and focused on identifying the issues and associated potential risk to the environment, and ensuring that the most suitable control measures were implemented leading up to and following closure in July 2001. At all times during the process of planning, implementation, safety contractor management and post closure, the identification of risk and potential threats to the business have been identified and managed. Post closure risk assessment of rehabilitation strategies potential to fail has been completed in conjunction with URS and opportunities to manage these potential failures in perpetuity will be discussed along with lease surrender. Misima Mines is currently processing low-grade ore and plans to close in 2004. Planning for closure has been ongoing for several years with a focus on the social aspects and the impact of the mine closing on a remote island community. Misima Mines has assessed the risk profiles using a community closure focus group, to identify both the biophysical and social aspects for closure.

Jan 1, 2003

By A D. Price, W J. Germs, O Patterson, T R. Weaver

"Understanding controls on groundwater and surface water flow and quality at mine sites throughout all mine stages is critical to effectively manage environmental impacts over the entire mine life. Monitoring forms is an essential component of this proof of understanding. Typically, monitoring programs at mine sites have been developed in the framework of existing conditions. However; recognition of the challenges of climate change and the performance of mines during recent extreme events in Australia has highlighted the need to develop monitoring programs that are resilient and responsive to changing environmental conditions. Water monitoring programs need to be effective under a range of environmental conditions, potentially not historically experienced.This emerging challenge requires cross-disciplinary teams to work together to understand issues including: representativeness of background conditions to longer-term conditions at the mine site sensitivity of mine and closure designs to changing climate and hydrologic conditions methods of performance (eg water quality or quantity) failure during extreme climate events such as flood or extended drought.These understandings come together in a detailed conceptual and, in many cases, numerical hydrologic model that considers the mine-water environment under a range of conditions. The groundwater, surface water and water quality monitoring programs that are developed from the conceptual model need to be sufficiently responsive to be effective in the face of such changing conditions, with results in turn informing the conceptual model. Extended drought, major floods and changing weather patterns can alter recharge and discharge areas, oxidation profiles and ultimately, the contaminant flux estimates that would have contributed to mine design parameters and performance. Unless these effects are considered in the spatial and temporal design of the monitoring program and within the parameters monitored, the resultant program may fail to capture data that are critical to evaluating environmental impacts from mine sites.Developing and implementing a water monitoring program that considers these issues can build confidence in mine performance under a range of conditions, leading to increased confidence by all stakeholders in long-term mine performance during and after closure.CITATION:Weaver, T R, Price, A D, Patterson, O and Germs, W J, 2013. Developing resilient water monitoring programs in changing climate conditions, in Proceedings Water in Mining 2013, pp 109-114 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Nov 26, 2013

By Davies S. G, Mackey L. C

The oxidation of iron and nickel sulphide concentrates, and the dominant sulphide minerals which comprise them, has been studied under ignition conditions using thermogravimetry (fG). The concentrates were derived from various minesites and they showed differing tendencies to ignite. Ignition temperatures ranged from 416 to 488°C and the extents of reaction, measured at 500°C, varied from 64 to 88 percent. The reactivity of the least reactivematerial was improved significantly by grinding. Particles <63/lm showed 85 percent oxidation compared with 55 - 65 percent for particles >63/lm.Examination of the individual sulphide minerals revealed that these materials also have significantly different degrees ofreactivity and are subject to particle size effects. For particles <45/lm, the ignition temperatures were as follows:ò pyrite and violarite 380 - 385°C; pentlandite 425 - 430°C; and pyrrhotite 470 - 475°;ò for particles >90 /lm, the ignition values were: pyrite 395 - 400°C;ò violarite 430 - 435°C; pyrrhotite 540 - 545°C; and pentlandite 560 - 565°C.Using the data on the individual minerals it was possible to rationalise the differing degrees of reactivity of the concentrates. The role of the most reactive constituent in initiating the ignition reaction has also been discussed.Finally, the results of this work were found to compare. favourably with the behaviour ofthe concentrates in industrial and pilot-scale flash smelters.

Jan 1, 1989

By C A Heinrich, Morse M. P, Cruickshank B. I, Pyke J. G, Whitaker A

Very little public domain information is available on the exploration signature of the Coronation Hill Au+Pd+Pt deposit. From 1987 to 1990 the BMR (now AGSO) carried out geological, geophysical and geochemical (whole-rock, stream, soil and rock chip) surveys within the South Alligator and Kakadu Conservation Zones and defined several key parameters useful for exploration programs. The essential geological ingredients for the style of Coronation Hill Au+Pd+Pt¦U deposit are oxidised, low pH fluids, dilatant fault structures, a thick neutral to oxidised cover sequence and chemical traps in the basement. In geophysical data, the areas surrounding the mineralisation can be detected by airborne magnetics as major lows in magnetite-rich rocks, whereas in airborne gamma-ray spectrometry data, imaged spectrometric channel ratios such as U2/I'h and U2/K highlighted alteration surrounding the deposits. Three types of stream-sediment and soil samples were taken from each site: (1) -1 mm mesh, 5 kg sample for bulk cyanide leach (BCL) analysis for Au, Pd, and Pt; (2) 1 kg sample of -1 mm mesh sediment for fire assay/ICPMS analysis for Au, Pt and Pd; and (3) 50 g - 180¦ mesh sample for a variety of trace element analyses, including Au, Pd and Pt. Techniques 2 and 3 gave similar results for Au, Pt and Pd, while the recovery rates for Pd and Pt from the BCL samples were considerably lower. Other trace elements did not define unique indicators for Pt or Pd mineralisation, as each sample reflected the dominant lithology in the drainage basin. Rock chip surveys were useful in determining which faults were associated with the ore fluid in regions of multiple fracturing. Results from these exploration-style surveys also confirmed that the Coronation Hill deposit is a variant of the unconformity-style of mineralisation, as all significant geochemical and/or geophysical results occur at or below the unconformity.

Jan 1, 1994

Trucks are the primary means of bulk material transport in Open Pit hard rock mines worldwide. They are considered to be the most- flexible system available. The large number of trucks used in some mines provides flexibility. Spare units allow for the reduced availability of the single units. Trucks have however very poor energy efficiency. Only 40% of the consumed energy is for transport of the payload, the remaining energy is required to move the dead load of the trucks. With the increase in cost, pressure, mine operators are now looking for alternative methods to make their operation more economical. Energy conservation and increasing haulage distances and uphill haulage are major factors in many well established operations. New methods have already proven themselves as more economical alternatives. Belt conveyors are an alternative means of transport with much higher energy efficiency. They use up to 80% of the consumed energy for transportation of the payload. Energy costs for conveyors are 30% of the energy costs for trucks on level transport and as little as 15% for elevating payloads. Belt conveyors require much fear spare parts and wear components than trucks. A factor of one to two times applies for level transport and ten to twenty times for uphill transport.

Jan 1, 1986

Water is becoming an increasingly valuable commodity in Australia and the mining community is finding itself competing with pastoralists, domestic consumers and industry for access to what is an essential but finite resource. This paper will provide an overview of various legislative regimes in Australia governing water resources, and will review some of the fundamental issues which should be considered by mining companies when contracting with other parties for the supply of water. The paper will focus on mechanisms to secure access to water for mining purposes, and will deal with the following issues: Grants of water entitlements under legislation û (navigating the legislative requirements necessary to facilitate the taking and use of water for mining activities) The paper will focus on the key legislative requirements for securing access to water in Queensland, Western Australia, New South Wales, Victoria, South Australia, Tasmania and the Northern Territory, and will examine: compliance with regulatory processes for securing water entitlements through the grant of water allocations, licences and permits, etc; and dealings with water entitlements (ie statutory mechanisms for transferring water entitlements on a temporary or permanent basis). Securing access to water under water entitlements through contractual means. The paper will also review of some of the fundamental issues which should be considered by mining companies when contracting with holders of water entitlements for the supply of water from both groundwater and surface water sources. These issues include (inter alia): securing appropriate rights to take and use water in compliance with relevant legislation, the necessity to protect the validity of underlying water entitlements, ensuring the security of supply for the contract term, access rights affecting water entitlements and other important issues relating to the security of water entitlements for miners.

Jan 1, 2003

By Weyer J

Many existing computer planning programs for the mining industry focus either on big mining enterprises with a high production rate or on smaller operations for high value minerals. Big mining enterprises, like the hardcoal company `Ruhrkohle AG' in Germany have their own R&D departments which develop powerful computer programs for planning purposes, partly in co-operation with mining universities. However, there is a remarkable number of small- scale mining operations which are either not able to buy expensive hard- and software or don't have the skills for the operation of extensive software programs. Partly there is also a trend in using rule of thumb calculations rather than computer programs which need a lot of - partly unavailable - data. For this reason a computer program was developed which does not need expensive hardware and software and which can help the planning engineer in the selection of a limited number of possibilities. Until this time the planning engineer established two or three different cases and calculated the results with a pocket calculator. This could last some hours or even some days. Now he or she can use the computer program with a normal PC to compare the cases. All activities are menu-driven. The basis for all, calculations are fixed and variable costs as well as average performance for special activities. The paper gives an example for a possible planning situation in fluorspar mining (originally this program was developed for the fluorspar enterprise Lengenfeld in Germany). It shows the initial situation, the main structure of the program, the input logic and the results. Benefits, limits and possible extensions of the program are discussed.

Jan 1, 1995

The applicability of Bieniawski and Hoek-Brown empirical strength criteria has been assessed for different groups of coal and various types of intact rocks by using a vast number of published triaxial test data from various places. Analysis of individual data sets revealed that the traditional forms of the criteria do not have a perfect agreement with the data. A strong negative correlation has been observed between B in Bieniawski's criterion and m in Hoek and Brown's criterion with uniaxial compressive strength of materials. Both criteria have been modified and empirical relationships have been introduced for coal as follows:m = 62.903 - 34.213 (log pc) 0.9772B = 10.152 - 4.709 (log pc )0.8889Similar relationships have been developed for different rock types as well.A comparison between the applicability of each of the above approaches with the conventional criteria reveals a very significant advantage for new approaches and a supremacy for the Bieniawski criterion in all cases particularly in the case of coal.The modified Bieniawski criterion fits coal as well as different types of rocks with excellent accuracy.The modified Hoek-Brown criterion gives a good result for rocks but does not fit coal data quite well. In other words, Hoek-Brown criterion is not an suitable one for coal.

Jan 1, 1998

By R L. Brathwaite, R Carver

The REGCHEM (Regional Exploration Geochemistry) database of open file mining company data, managed by GNS Science, has recently been upgraded with the compilation of additional data, especially for the Otago region (see http://maps.gns.cri.nz/website/minmap). In June 2007, data compiled for the Otago region included more than 2000 stream sediment samples from 19 surveys, more than 800 BLEG (bulk leach extractible gold) samples from 12 surveys and a few pan concentrate samples. The stream sediment samples were typically analysed for Au and As, and in many cases for other elements including Cu, Pb, Zn, Sb, W and Mo. The BLEG samples were analysed for Au and in some cases also for As. The main exploration target was mesothermal gold deposits in the Otago Schist, although one survey of the Otago Peninsula targeted potential gold deposits associated with the Dunedin volcanic complex. Geochemically, the mesothermal gold deposits are characterised by anomalous As and Au, with some also characterised by anomalous W and Sb, and these four elements are the best pathfinders in stream sediment geochemical surveys. The introduction of lower detection limits in Au analyses in the more recent stream sediment surveys and in the BLEG surveys enables the use of this element as the primary pathfinder for mesothermal gold deposits.

Jan 1, 2007

By Henley R, Harris L

High resolution airborne magnetic and radiometric data have been shown to optimize exploration for epithermal gold deposits in the vicinity of Charters Towers, northeastern Queensland. The radiometric data allow extrapolation of poorly outcropping geology to provide a cost-effective mapping technique, even at exploration scales (eg. 1:25,000). At a regional scale (eg. 1:100,000) the magnetic data reflect the regional tectonics and divide the area into domains for the application of different genetic models. For example: 1. the Ravenswood Batholith is characterized by multiple intrusions dating from Ordovician to Permian age. The polarity of the magnetic anomalies implies an age for the intrusions and indicates a deposit style for exploration. 2. extensional and wrench tectonics along the northern margin of the Drummond Basin are interpreted from the magnetic data and indicate favourable blocks for detailed exploration. Genetic exploration models may be tested in favourable environments by the recognition of geophysical signatures. These signatures reflect structural, lithological and alteration patterns arising from controls on ore deposits and can be applied at regional or detailed scales.

Jan 1, 1989

Thank you for this opportunity to address your conference on The role of coal in the New Zealand energy market".New Zealand's energy market has, in common with much of New Zealand, undergone major change following the market reforms of the Labour Government.As far as the energy sector is concerned this change has been for the better, as it has created for the first time in a very long time a "true economic market" for energy in New Zealand.

Jan 1, 1990

There is a difference in design aspects between steel linings and rubber linings for grinding mills. The basic design rules for rub- ber are described as well as the liner designs for different applications.

Jan 1, 1978

By T Martin, M Martin

Mining of sulfide-based ore deposits typically creates a potential for release sulfate and acid to groundwater, and many operating mines are thus predicted to require long-term post-closure treatment of groundwater. Toward the goal of selecting an optimal treatment, this paper compares costs of four demonstrated technologies for long-term treatment of sulfate-contaminated groundwater: in situ biological reduction (ISR), in situ permeable reactive barrier (PRB) composed of compost and zero-valent iron (ZVI), and two ex situ æpump-and-treatÆ technologies ù ex situ biological reduction, and ex situ nanofiltration with lime precipitation. Costs for each technology are estimated for treatment of a model aquifer system containing sulfate-contaminated groundwater, with the goal of treating 1 m3/min of groundwater from 1500 mg/L sulfate to a target level of 500 mg/L. (Metal removal is typically achieved by these technologies, and thus excluded from this analysis.) Costs are estimated for each technology as a function of treatment duration (ten to 60 years) and, for PRB and ISR, required replacement frequency (ten to 60 years). Estimated costs include capital and operation and maintenance, using a seven per cent net discount rate. Results indicate that ex situ technologies (biological reduction and nanofiltration with lime precipitation) are the most expensive. In situ technologies may be much less expensive, with PRBs having by far the lowest potential cost, followed by ISR as the next least expensive. However, actual costs for the in situ technologies are very sensitive to poorly constrained parameters, particularly the ZVI content of the PRB, and the effective life of PRB and ISR systems. This large cost uncertainty supports delaying remedial actions where viable, and suggests that feasibility analyses are generally warranted for specific applications to focus on these sources of uncertainty.

Jan 1, 2003

By Herbst JA

During the last decade, it has been established that conventional mineral-processing control strategies based on classical control theory result in significant increases in plant throughput and operating-cost saving. The proper education and training of personnel using dynamic simulators of the principal unit operations is vital for proper design and maintenance of control systems. Severe multivariable interactions and numerous constraints on both manipulated and state variables in grinding/classifica-tion and flotation systems can be studied using time domain analysis with proper dynamic simulators. Two interactive programs are described, and the basis of each simulator and its structure are discussed. Two examples concerned with choosing, tuning, and decoupl-ing of manipulated and controlled variables for a grinding/classification circuit (DYNA-MILL II) and for a rougher flotation circuit (DYNAFLOAT II) are presented. The way in which these dynamic simulators can be used for the design of model-based control strate-gies is also outlined. A brief description of the use of these dynamic simulators for screening alternative strategies and circuit optimization is given.

Jan 1, 1985

By D Johns, L Murray

This paper discusses pore pressures in the embankments of tailings dams by comparing real world data with common design assumptions. Assessment of pore pressures has implications on material behaviour interpretation from CPT investigations and, therefore, on the design. For example, the assumption of hydrostatic pressure is conservative for limit equilibrium stability analyses but may be un-conservative in assessing the potential for contractive behaviour and strength loss during shearing. This paper presents some real world data, the investigation methods to determine the pore pressures, and subsequent interpretation of CPT data and material parameters such as the state parameter. It also examines the design implications of assuming a hydrostatic pressure distribution, by comparing results from that assumption with those obtained using the real pore pressures.CITATION:Johns, D and Murray, L, 2018. Characterisation of pore pressure in tailings dams and the implications for design, in Proceedings Mine Waste and Tailings Stewardship Conference 2018, pp 239–249 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 23, 2018

SAG Mill Grinding Design Versus Geometallurgy - Getting it Right for Competent Ores Smarter processing for the future, in the area of SAG mill design involves accurate grinding test data, completing final mill design in less than three months, and at a cost of less than US$80 000. More detailed variability testing on the other hand takes longer, is more expensive, and is used for throughput optimisation for an existing or newly purchased mill. This paper shows that SAGDesignTM testing is excellent for new SAG plant design due to relatively low cost per test and the ability to do more testing for a limited budget on larger projects. It also briefly examines a way to develop proper geometallurgical ore hardness information on every block in the mine model, from the more detailed analysis data.

Sep 13, 2010