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This paper examines some of the fundamental economics of mining - in particular, for optimisation studies, for production rate determination and for reserve estimates.It includes introductory discussion on the principles as to how economics drives mining investment decision-making, applicable to the optimising of pit shapes and production, or truck fleets, or any other part of the mine.The main part of this paper looks at the decision to start-up a mine and why the 'optimum' production rate to start-up a mine is not the point of lowest cost according to traditional discounted cash flow (DCF) analysis. The optimum production rate is usually substantially less than this rate. The paper recognises the difference between typical mining investments and investments in other industries that do not have the unique characteristics of mining and the problem of uncertainty resolution. It examines the marginal revenue effects, the marginal cost of capital and the value of a real option to expand pending uncertainty resolution as determinants of optimum initial production rates.The final part of this paper looks at applying these principles to renewable and non-renewable resources. It examines mine life and reserve estimates from an economic perspective.

Dec 6, 2010

By A Morris

The Express Rail Link (XRL) will provide high-speed rail services from Hong Kong to Guangzhou and a connection to the national high-speed passenger rail network serving major cities throughout Mainland, China. The HK$ 67 B (NZ$ 11.5 Billion) project is of great strategic importance for Hong Kong and is being implemented to a very tight schedule, from early 2010 with completion targeted for 2015.The works include a 15 platform terminus station in West Kowloon, 26 km of twin track tunnels from the terminus to the Hong Kong/Shenzhen boundary at Mai Po, tunnel vent shafts/adits/emergency rescue siding and a stabling siding facility. Trains on the Hong Kong section are intended to operate at speed up to 200 km per hour and up to 350 km per hour on the Mainland section.This presentation will provide an overview of the entire XRL project, with a focus on the challenging geotechnical and spatial constraints on the tunnel works. This is an abstract only. No paper was prepared for this abstract.

Mar 8, 2011

By S Hu, P Ni, H Xu, P Chen

Indosinian (T) orogeny amalgamated the Mongolia-Xingan fold zone, the North China continent, the Yangtzi platform and the SE China fold zone into a unified continent. The early to middle Yanshanian (J-K1) orogeny created a Cordilleran type active continental margin in East Asia, reactivated the consolidated East China continent, and generated a large amount of granitoids, calc-alkaline volcanics and W, Sn, Mo, Cu, Au, and U ore deposits. The late Yanshanian (K2) orogeny began a transition to the western Pacific type continental margin. A tensional environment led to the development of peralkaline magmatism and tne formation of continental basins with red beds. The Himalayan (Tr-Q) orogeny was characterised by a backarc spreading and rifting regime. The dominant magmatism was continental basaltic.

Jan 1, 1995

The Black Star lead and zinc ore-bodies, situated in the western zone of mineralisation at Mount Isa occupy an area 2000 ft. long with varying widths from 100 ft. to 300 ft. The strike is N5°W, and the average dip 60° West.To test at depth the potentialities of this area, an extensive diamond drilling campaign was commenced on 16th October 1927. It was continued, with from one to six machines working, until the end of 1931. During this period, 26 inclined holes, with an average depth of 1224 ft, and a total footage of 31,828 ft. were completed. A vertical hole, 2452 ft. deep, for comparative purposes, has been omitted.These drilling operations came directly under the charge of G J Gray, General Superintendent of Mount Isa Mines, and, in the early stages were supervised by E. D. McDermott, of the Mining Trust, London. The foremen, who were in charge of various sections of the drilling operations, were: H Vale, F Bray, J Winston and A A Sanstedt.

Jan 1, 1932

By C Chen, T Kan

The distribution ratio of Pb (LPb s/m) between three types of slags (FeOx–SiO2, CaO–FeOx and FeOx– CaO–SiO2) and molten copper after equilibrium was measured at 1300°C and oxygen partial pressure (pO2) of 10-10–10-6 atm. Results showed that for FeOx–SiO2 slag, the LPb s/m increased from 0.024 to 2.57 with pO2 increased from 10-10 to 10-6 atm. The LPb s/m with CaO–FeOx slag was lower than the FeOx–SiO2 slag at the same pO2, ranging between 0.015 and 0.53. Using the FeOx–CaO– SiO2 slag generated LPb s/m values (0.02–1.6) in between. The oxygen partial pressure in the investigated range had no obvious effect on the activity coefficient of PbO (γPbO) which was averagely 0.44, 1.70 and 0.71 for FeOx–SiO2, CaO–FeOx and FeOx–CaO–SiO2 slags, respectively. The increases in the (CaO+MgO)/SiO2 mass ratio of the FeOx–CaO–SiO2 slag induced the decrease in the LPb s/m and the increase in the γPbO value. However, the variation in the Fe/SiO2 mass ratio didn’t exert obvious effects.

Jun 19, 2024

The purpose of this paper is to list by tabulation and flow sheet, the operating equipment and installations in use at Rosebery, and to refer to particular items which may be of interest for purposes of comparison, or because they possess some unusual feature. The general perspective has been taken from the viewpoint of operating and maintenance experience.The sequence begins with ore breaking and transport and proceeds through milling operations. The paper is in two sections, first, mechanical equipment, second, electrical equipment. A brief outline of a scheme for using gravel wash for stope filling, which is in course of installation, has also been given.

Jan 1, 1949

By S Hanke, J Burden, P Spies

The Waterview Connection will complete Auckland’s long-planned Western Ring Route, a 48 km north-south motorway alternative to State Highway 1 that bypasses the central city to the west. The project involves construction of 5 km of new motorway – half of it underground in tunnels – to connect the Southwestern (State Highway 20) and Northwestern (State Highway 16) motorways.The Western Ring Route will link the major population and industrial centres of Manukau, Auckland and North Shore to give the region the connected and resilient strategic road transport system it needs to underpin economic growth and sustainable development. It will also provide a direct motorway link between Auckland’s central business district (CBD) and international airport.The project involves construction of twin 2.4 km driven tunnels with an outside diameter of 14.41 m beneath residential suburbs, a major arterial road and a rail corridor. Enabling works began in January 2012 while tunnel construction using an earth pressure balance (EPB) tunnel boring machine (TBM) began in November 2013.This presentation introduces the Waterview Connection project, its role in the development of the Auckland motorway network, its procurement process, the alliance delivery model and an overview of the project’s design features and construction progress to date.Design and construction highlights of the presentation include the TBM start-up, turnaround and breakthrough arrangements as well as the experience gained during the first tunnelling drive. The presentation also covers an innovative process developed for invert construction behind the TBM that is independent of tunnel excavation.CITATION:Spies, P, Burden, J and Hanke, S, 2014. The Waterview Connection Project – progress to date, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 519–540 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

Modelling and simulation are important aspects of flotation research, which may assist in the design of new circuits and the optimisation of existing ones. Flotation research in the AMIRA P9 project has developed a methodology for flotation plant modelling based on determination of cell (pulp) characteristics. froth characteristics, and ore floatability (using floatability components). The implementation of this methodology requires the determination of ore floatability, to which end a small flotation pilot plant known as the Floatability Characterisation Test Rig (FCTR) has been designed and then built and kindly made available to the AMIRA P9 project by Baker Process. The FCTR has a 2 tph capacity and consists of six 130 litre rougher/scavenger cells and six 50 litre cleaner/recleaner cells. The Mintek FloatStar pulp level control system is used to control the pulp level in all cells. A number of experimental procedures have been developed for using the FCTR to obtain the data required for the P9 flotation models. These procedures include how to determine the floatability parameters, Pi and mi, the bubble surface area flux, Sb, the mean residence of the pulp in the cell, t, water recovery. Rw, froth zone recovery, Rf, and the degree of entrainment, ENT. The flexibility of the FCTR allows it to be used in numerous flotation studies such as stream characterisation, reagent testing, grinding experiments, power studies, oxidation studies, and scale-up and simulation studies. This paper will describe the design and operation of the FCTR and the procedures that will be used to obtain data from the rig for modelling purposes.

Jan 1, 2000

Retreating Cu-Mo Rougher Tailing by Flotation for Concentration of Copper and Molybdenum

Sep 13, 2010

Mining One (M1) is often challenged with the task of evaluating deposits considering open cut and/or underground (UG) mining methods. In many near surface deposits a combination of both methods results in the optimum economic means of exploitation. As common as it is to have open pit mines eventually develop into underground mines, theory associated with determining the optimum underground/open pit interface location continues to be subject to refinement. With recent developments in underground software packages, the generation of rudimentary underground mining stopes from basic economic inputs is not only fast, it provides a practical underground mining solution. The determination of the open pit/underground interface is not new to Gemcom's Whittle 4X (Whittle). However, its solution has only ever claimed to be indicative, mainly due the rudimentary nature of how Whittle represents any potential underground mining. The efficient generation of the aforementioned underground mining solution has provided mining engineers with a unique opportunity. Underground mining can now be represented within the Whittle environment to allow the open pit/underground mining scenario to be modelled with increased accuracy. Providing Whittle with the ability to now consider mineable underground stopes combined with the consideration of time value of money (discounting), has delivered a solution with higher credibility than ever before.This paper will elaborate on the potential value gains associated with improved accuracies in the modelling of any potential underground mining in the Whittle environment. Furthermore, it will explain the importance of incorporating time value of money in the optimisation process to provide a consistent solution through to pit selection and final analysis.

Dec 6, 2010

The suitability of char from Yallourn brown coal as a filler for carbon electrodes used in the aluminium smelting industry has been assessed on the basis of the specifications usually laid down by electrode manufacturers for petroleum coke fillers. The purity specifications can be met by a simple acid leaching of the coal before carbonization. The true density of char produced at 1200°C is within 5 per cent of the specification figure, but the bulk density of char obtained from as-mined coal is only half that specified for petroleum coke.Although this can be increased to three-quarters of the specified figure by briquetting the coal before carbonization, further increases would be very difficult to achieve, as the remaining shortfall in density is due to an extensive microporosity developed in the particles of char during carbonization.

Jan 1, 1970

By H Sofatzis, J Kinal, J Siliezar, B Kirkwood

Ernest Henry Mining (EHM) is a copper, gold and magnetite mining and processing operation located 38 kilometres north east of Cloncurry in the Mount Isa - Cloncurry mineral district of north west Queensland, Australia. The EHM ore body is an iron oxide copper gold deposit with an average grade of 1.1 percent copper, 0.5 g/tonne gold and 22 percent magnetite.At the end of 2009, after a series of promising laboratory test work, EHM converted the ball mill media charge from forged steel to high chrome media. Laboratory test work also indicated that with the use of high chrome media, the pH was able to be reduced with no negative impact on plant performance. At high pH values (above 10.5), the forged media is passivated, so as the pH of the system drops the media corrosion rate increases and floods the system with corrosion products, affecting flotation. As the high chrome media is much more inert, pH has less of an effect on copper flotation response.This paper provides an overview of the effects of reducing the pH in the EHM copper rougher flotation circuit. The pH in the roughers was dropped from 10.6 to 9.6 to determine the impact on the rougher performance and the subsequent performance of the whole copper flotation circuit. It was found that there was a slightly increased improvement in copper recovery and no statistical change in either the rougher or final copper concentrate grades for copper and gold.With the reduction in pH, there was a noticeable reduction in lime usage from 0.85 kg of lime per tonne of ore processed to 0.55 kg/t. This reduction in lime is equivalent to approximately $700,000 per annum at current production rates.CITATION:Kirkwood, B, Kinal, J, Siliezar, J and Sofatzis, H, 2013. Low pH trial in the Ernest Henry Mining copper rougher flotation circuit, in Proceedings MetPlant 2013 , pp 371-377 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 15, 2013

With some notable exceptions, marine placers located just below, or just above, present sea level, are responsible for much of today's production of detrital ilmenite, rutile, zircon, and other minerals of value. The purpose of this paper is to discuss the paleogeographic and paleo-oceanographic factors which may have determined the location of presently submerged marine placers. These factors include changes in sea level, burial by recent marine sediments, stream capture and other changes in drainage patterns, and recent changes in climate. Selected geologic situations in the Yellow Sea off the coast of Korea, in the Atlantic Ocean off the coast of Portugal, in the Bering Sea off the coast of Alaska, and in the Arabian Sea off the coast of India, will be used to illustrate the author's point of view.

Jan 1, 1971

By T Christie

Tertiary volcanic rocks make up a significant proportion of the surficial cover rocks of New Zealand, especially in the Taupo Volcanic Zone. Industrial minerals that are associated with or derived from the volcanic rocks include: amorphous silica, allophane, bentonite, diatomite, ignimbrite building stone, illite clays, halloysite clay, obsidian, perlite, pumice, sulphur, titanomagnetite ironsand and zeolite. Of these: bentonite, ignimbrite building stone, perlite, pumice and titanomagnetite ironsand have been mined and processed for 20 to 30 years, but many of the others require further characterisation of the resource and/or development of markets.   We have compiled interim mineral deposit models for halloysite clays in rhyolite and for zeolites in altered vitric tuffs. These models include geological and mineralogical attributes, which are linked to the underlying volcanic and geothermal processes that have produced the minerals and their source volcanic rocks. Halloysite clay deposits at Matauri Bay (Northland) have formed from hydrothermal alteration and weathering of rhyolite. Clinoptilolite + mordenite zeolite deposits in the Ngakuru area (Rotorua district) have formed from hydrothermal alteration of volcanic glass in lacustrine sediments and ignimbrite. Further refinement and application of these models will result in a better understanding of the mineralogy, localisation and origin of the deposits, with consequent applications in exploration and resource assessments.

Jan 1, 2001

By Gillies A. D S

The active history of foreign investment in the mining industry has resulted in Australia emerging as a major world producer of a range of mineral commodities. The current contribution to the national economy represented by mineral production and export revenues would not have occurred without both capital and expertise provided by foreign investors in the past. The initial foreign investment has led to the formation of Australian majority owned and controlled multi-national mining groups such as BHP Limited, CRA Limited and MIM Holdings Limited. These Australian companies, and others, are playing a significant part as foreign investors in the mining industries of Papua New Guinea (PNG) and Indonesia. The study examines issues of importance in foreign investment in each of the countries. It concludes that in Indonesia, the nationalisation of the Dutch mining industry in 1957 did much to deter foreign investment. The remarkable degree of policy stability brought about by the Contract of Works system since 1967 has gone a long way to restoring that confidence. The level of investment in the Indonesian mining sector is steadily increasing. Its attraction to Australian investors is a combination of policy stability, favourable fiscal terms, geological prospectivity for a range of commodities and proximity to Asian markets to the north. PNG has a stable policy regime which until recently has been free from political interference at the administrative level. As such, investors were developing confidence in the system and investment was progressively increasing as evidenced by growing exploration expenditures up to 1988. The 1989 Bougainville revolution caused a re-assessment of PNG's investment and country risk. The recent Mt Kare incident has further raised concerns over the government's ability to guarantee internal security. Foreign investors are faced with weighing concerns with the risks of operation in PNG against the undoubted geological prospectivity of the country. The fiscal regimes of Australia, Indonesia and PNG were compared by means of a simulated open pit gold mine in each country. The effect of taxation is examined by reference to the relative change in project internal rates of return (IRR). The comparison of the relative differences between pre-tax and post-tax IRRs provides a measure of the relative attractiveness of each fiscal regime.

Jan 1, 1994

By D Caley

During the response to the Moura No 4 disaster, use was made of the New South Wales Mines Rescue Service’s ‘Mineshield’ inertisation equipment. The equipment had to be transported from Newcastle, approximately 1400 kms, and the liquid nitrogen a similar distance. The time taken, and therefore availability of the liquid nitrogen, became a significant problem. Operational issues were also experienced during use. Typically the liquid nitrogen is converted to a gas (vaporised) before being injected into the mine. However, as the propane gas tanker used for the vapourising unit was delayed, an attempt was made to inject the liquid nitrogen directly down uncased boreholes. This proved unsuccessful.Following the Moura No 4 disaster and the Moura No 2 disaster, recommendations were made relating to having inertisation capacity for the Queensland coal mining industry. Today the Queensland industry has multiple options available for inertisation, including the high-volume GAG and smaller volume units such as boilers and membrane separation units. Although it ultimately aided re-entry into Moura No 4, most likely due to the issues associated with supply to Central Queensland, liquid nitrogen has not found favour within the Queensland industry as an inertisation tool.Coregas has commissioned an air separation plant in Mackay, improving the availability of liquid nitrogen to Central Queensland. Based on the availability of this nitrogen, recent sealing operations at Kestrel have trialled using liquid nitrogen and associated vapourising units. This paper details the practical application and findings of using liquid nitrogen during routine longwall panel sealing.CITATION:Caley, D, 2017. Using liquid nitrogen for the inertisation of goafs, in Proceedings Australian Mine Vent Conference 2017, pp 35–40 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 28, 2017

A short account is given of the theory and practice of determining the true U3O8 content of ore samples by the determination of the beta and gamma activities separately, using the method of Eichholz and his associates.It is shown that, despite the variation of sample activity without change in U3O8 content, the true U3O8 value can still be found.Thorium can be determined simultaneously if this element is also present.

Jan 1, 1957

Barrick Gold Granny Smith Mine is currently undergoing conversion from an open cut operation to an underground mine at the Wallaby deposit. The underground project commenced in 2005 with the development of the reserves immediately below the pit and is now currently entering a production ramp-up phase for mining of these two initial surfaces below the pit. With increasing gold prices the owner has been forced to re-evaluate the underground project and has decided to investigate the potential of a deep level mine. This deep level underground mine presents a collection of challenges with the most notable being exploitation of a series of well separated near horizontal lodes ranging in thickness from less than 1 to 20 m. A variety of room and pillar mining methods are employed for extraction with careful consideration to resource recovery and pillar design for long-term stability. Compounding these deep level challenges is a need to accelerate mine level development to maintain the production profile of the mine. This paper describes the challenges, key learnings and outcomes of the studies undertaken to date associated with this project.

Jan 1, 2008

By T Isaksson, J Anderson

The procurement process for underground construction contracts, in particular those contacts involving tunnel boring machines (TBMs), is subject to many complex and inter-related variables, including national and local politics, public policy, community involvement and media attention û as well as strict environmental and legal requirements. Other restrictions include the time available to adequately investigate geotechnical conditions and viable technical options to determine the best construction methodologies û including selection of tunnel boring machine characteristics and, those construction means and methods suitable for the specific geotechnical and environmental conditions. The latter are, most often, quite imperfectly understood. æGetting it rightÆ implies that an optimal configuration û of machine type, characteristics and associated methodologies û can be found and successfully implemented for a particular project. æFrom the beginningÆ implies that the lack of time issue can be successfully resolved. Within an international context this paper highlights a number of issues of concern which relate to tunnel procurement systems and the ways in which certain key processes are managed during planning, design and construction. The authors argue that there is considerable room for improvement in the way tunnelling projects are undertaken and an approach is discussed which has the potential for substantial gains in cost and schedule and reduction of risk. Savings, however, may only be fully realised if the new methods can be fully implemented by all parties involved. This, we believe, will require the rejection of ætraditionalÆ forms of management and procurement with associated changes in the roles and responsibilities of owner, engineer and contractor. Additionally, risk identification, assessment and mitigation are essential cost and schedule control process which have, to this point, been underutilised by the underground construction industry.

Jan 1, 1999

By D E. Thorp

The mining and concentration operations of New Zealand Steel have been carried out initially from the Waikato North Head (WNH) deposit since 1969 and subsequently from the Taharoa deposit since 1972. Over the years the WNH operation has produced about 1.2 million tonnes of concentrate which has been converted into steel, while total exports to the Japanese Steel Industry from Taharoa reached five million tonnes in February of this year. Recent expansion plans both in domestic steel production and in the ironsand concentrate export market have made it necessary for the company to look closely at, among other areas, the mineral processing of the titaniferous ironsands in both deposits. This paper deals with the recent test work carried out at WNH and Taharoa on the use of the cone concentrator unit as a primary gravity concentrating unit ahead of the magnetic separation stages and as a cleaner concentrator following the primary magnetic separation.

Jan 1, 1977