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By S Shafiee, N Abbate

The evaluation of mining projects requires a methodology that will give flexibility and manage the existing uncertainty within the projects. The discount cash flow (DCF) and other traditional evaluation approaches, which are widely used in evaluating a significant number of mining projects, have simply assumed that the main variables remain constant in their evaluation; elements such as discounted rate, mine life, operating cost and production rate. The DCF ignores managementÆs flexibility to adapt and reforecast and revise decisions. Real options valuation (ROV) is one of the modern evaluation methodologies that provide a tool to adapt and revise mining projects under uncertainty and future variables movements. ROV brings more variables into the evaluation model compared to DCF and assumes them as uncertain and dependent. Finally, ROV provides a range of solutions that can assist in managing this flexibility.This paper endeavours to compare ROV and DCF for mining projects comprehensively and applies these two techniques in the model. The paper shows that ROV will be inclusive of extra value in mining projects due to variables not allowed for, or even ignored, when the DCF model alone is used. One of the significant advantages of the ROV method is being able to evaluate mining projects under different scenarios from the inception of the projects. Furthermore, ROV gives the ability to evaluate the mining project while allowing for abandonment, temporary suspension, or expanding the mining project. In other words, the ROV evaluation process creates an analytical environment, which allows for optimisation of the mining plan within the mining project, as well as the ability to change the capital structure dependant on existing circumstances over the life of the project. The ROV is a new evaluation method that can add value in mining project analysis and offers opportunities to amplify gains, or to mitigate losses. This paper also discusses some of the reluctance to use ROV instead of DCF in current project evaluation.CITATION:Shafiee, S and Abbate, N, 2012. Now, this is the time for mining companies to choose - Real option valuation or discount cash flow, in Proceedings Project Evaluation 2012 , pp 225-234 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

By I M. Platten, Y Xie, B W. Cuffley, S C. Dominy

"Geometallurgical programs require the collection of representative samples for geochemical, mineralogical and metallurgical test work. Such protocols must be designed to suit the style of orebody in question. The distribution, proportion and size of gold particles have a direct impact on the effectiveness of sampling and test work protocols, and the gold recovery processes employed. Characterisation studies focusing on ore mineralogy, and gold particle deportment, size and distribution are required. High resolution X-ray computed tomography provides a non-destructive method for analysing the 3D nature of gold in rock samples. It can be used to calculate the modal abundance, particle size and distribution of gold in the sample volume. This paper presents a case study of the imaging of in situ gold particles in a high-grade gold ore. The Nick O’Time reef system comprises laminated quartz veins, which locally bear extreme grades of up to 100 oz/t gold. The mineralisation has previously been characterised from both a mineralogical and metallurgical perspective. Eight visible gold-bearing vein samples were scanned using X-ray microtomography. Microtomographic data were integrated with previous mineralogical and metallurgical test work outputs.CITATION:Dominy, S C, Platten, I M, Xie, Y, Cuffley, B W and O’Connor, L, 2016. Characterisation of Gold Ore from the Nick O’Time Shoot (Tarnagulla, Australia) Using High Resolution X-ray Computed Tomography, in Proceedings The Third AusIMM International Geometallurgy Conference (GeoMet) 2016, pp 241–254 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 15, 2016

Various methods and software have been trialled for simulation of Au grades at Boddington Mine. This covers in-house and public software as well as sequential and turning bands methods. The diversity of options was further expanded with comparison of point and direct block simulation. Some difficulties were encountered in incorporating high-grade restrictions. Altering parameters or software can make very significant differences and give results varying from estimations. This paper details a new simulation run with validation and tests for local calibration (or progressive correction) of the simulations to the estimations, focusing on reproduction of statistics. This approach brings to the forefront the question æwhat is the purpose of the simulations?Æ Results and some ideas for future applications at Boddington are summarised.

Sep 26, 2011

L&M have been involved on the Shotover since 1980 when we joined Jack and Barney Ryan, who had started in 1972 with gold at $45 per ounce after a successful career as roading and demolition contractors in Christchurch. The first 85 tonne plant was a typical NZ trammel-riffle table plant with an armour plated hull for surviving Shotover floods, and was fed by a 53 tonne UH20 excavator. All this gear had to be carted in over the Skippers road on a small truck or sledge for the heavy loads. This operation was successful and generated the cash flow to sample the lower section of river and plan a second plant. To reduce fine gold losses this was planned to be a jig recovery plant and also included a vibrating screen which saved space and weight over a trammel. There are five flowlines of primary jigs and one secondary, followed by two Knudsen bowls for cleanup.

Jan 1, 1985

By A Dal-Corobbo

Traditional acid and metalliferous drainage (AMD) wastewater treatment focuses on the iron co-precipitation/adsorption process as this is a very effective method of reducing heavy metals, including copper, lead, zinc, arsenic, etc, to parts per billion (ppb) levels in AMD wastewater streams. One of the drawbacks to this method however is the large volume of sludge produced and subsequent disposal costs for the mine site concerned.A proprietary metals treatment system called high density sludge (denoted HDS) which significantly reduces the quantity of waste generated is described in this paper. This process generates a dewatered sludge that contains in the order of 50 to 55 per cent solids. This sludge is denser than conventionally dewatered sludge, which typically contains only 20 to 30 per cent solids. This advanced process has a wide range of applications and can be easily retrofitted into existing AMD treatment systems. It has been successfully installed at several mine sites to treat AMD wastewaters. This paper discusses the high density sludge process, its benefits and provides data and operating results from pilot test installations.CITATION:Dal-Corobbo, A, 2013. High-density sludge process for treating metal bearing acid and metalliferous drainage wastewaters, in Proceedings Water in Mining 2013 , pp 217-220 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 26, 2013

Blasting is an essential component of most mining operations, and is used to reduce the rock mass to a workable size distribution, as well as to create stable openings and pit walls. Frequently, there is little difference between the designs of blasts to achieve these two functions, though more advanced operations have developed different designs for these very different functions. To assist in the appreciation of how blasting practices can impact on the stability of rock openings and pit excavations, this paper reviews the role of high pressure explosion gases on final block stability. It is assumed that the stability of all surface and underground excavations are, to a greater or lesser extent, controlled by the interaction between discrete rock blocks. Typically, these blocks will be defined by either natural, or excavation induced, jointing.

Jan 1, 1999

By K T. Mandisodza, T J. Cartledge

The principal objective of Geotechnical Engineers supporting operating mines is to provide safe working conditions and ensure that pit designs are geotechnically optimised to site conditions and pre-defined stability requirements. Pit slope designs are delivered in advance of pit excavations. Making changes to these designs is usually slow to enact and involves a layered sign-off before implementation, leading to unwanted delays in their adoption and subsequently increased production pressures. When unexpected ground conditions are encountered during the mining process, or short-term mining schedule requirements demand it, changes to these designs may not be easily feasible in certain situations. It is when these scenarios arise that Geotechnical Engineers need to be proactive and consider unconventional options to deliver safe operating conditions while satisfying short-term requirements to the mine schedule. Essentially, the geotechnical short-term strategic designs double-pronged approach supports the mine schedule while providing safe conditions and minimising geotechnical risks for people and equipment. Common short-term strategic geotechnical designs include; slope buttressing, over-steepening cut slopes to increase reserve recovery through unplanned or emergency cutbacks, and accepting risk threat and operating under unstable slopes. When implementing strategic design options, the Geotechnical Engineer must consider the broader implications for such designs. They must think of the plan’s long-term effects on the mine schedule and pit wall stability. Initiating aggressive designs to recover additional reserves to satisfy a short-term scheduling demand could result in-pit wall instability or suboptimal pit layout. Before and during the implementation phase, the Geotechnical Engineer must communicate and engage with relevant stakeholders to ensure that the plan is executed accordingly and geotechnical risks are effectively managed. Proactiveness to ground response and implementation of risk management strategies will improve safety performance and optimise mining schedules.

Jun 22, 2022

By L Mikhael Gurieff, D Baas

The Phu Kham Copper-Gold Operation (Phu Kham Operation) is located in the Lao People's Democratic Republic and is owned and operated by the Lao-registered company, Phu Bia Mining Limited (PBM). Australian-headquartered copper and gold producer, PanAust Limited holds a 90 per cent interest in PBM; the Government of Laos owns the remaining 10 per cent. The Phu Kham Operation was commissioned in 2008 with an initial concentrator nameplate throughput of 12 million tonnes per annum (Mt/a). Subsequent improvement projects, including the Phu Kham Upgrade Project (PKU), completed in 2012, and the Phu Kham Increased Recovery Project (IRP), completed in 2013, increased the design throughput to 18 Mt/yr. In 2016, the actual mill throughput exceeded 19 Mt/a, this throughput is budgeted to be maintained until the end of 2020.The concentrator flotation circuit upgrade, completed during the IRP, called for a non-selective bulk sulphide concentrate to be generated from the rougher circuit. This in turn caused the mechanical flotation cells in the cleaner circuit, particularly those in the second cleaner bank, to become volumetrically overload. The overload reduced the cleaner circuit performance to approximately 92 per cent copper recovery at a 23 per cent copper concentrate grade, below the expected 95 per cent recovery. This bottleneck restricted copper units entering the plant to approximately 14.5 tonnes per hour (t/h) due to uncontrolled recirculating load build-up in the mechanical cleaning circuit.Maintaining the operating methodologies would have led to a copper production shortfall beyond 2016, to address this shortfall the Phu Kham Operation looked to optimise the Jameson Cell and mechanical cleaner circuit performance. The work included fundamental application of flotation practice and modelling, mineralogical analysis, bubble size analysis, plant surveys and test work. The results were used to develop and implement an innovative automated control system strategy incorporating flotation theory and operating strategies. The automation has the ability to quickly adapt to disturbances in the circuit and maintain optimised performance with little or no intervention by flotation operators.Upon completion, cleaner recovery increased to 95 per cent at a final concentrate grade of 23 per cent copper, and copper units entering the plant increased to 17.5 t/h.CITATION:Baas, D and Mikhael Gurieff, L, 2018. Developing flotation circuit control and automation for the Phu Kham Copper-Gold Operation concentrator, in Proceedings 14th AusIMM Mill Operators' Conference 2018, pp 37–58 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 29, 2018

Mineral Processing Education in China

Sep 13, 2010

By L I. Rozman

"There have always been development projects that fall short of expectations. In the last decade, we have seen more than the usual number of mining and oil/gas development projects taking significantly longer to develop and costing materially more than expected. The recent resource-equity market slump proves that investors are now far more cautious about investing new capital in the mineral and petroleum resources sector.What have we learned since 2005? Why have projects missed their targets? Why do investors often feel misled?Valuation of a project and the estimation of value is a more complex process than the evaluation of the merits of project development. The merit of project development can be clear from a prefeasibility evaluation, but this is no reason to skip the rigour of a feasibility study. The valuation of any project that is developed with any added risk should be discounted for this added risk.The development of a project impacts on other stakeholders, and the indirect cost of these impacts can have material implications for the cost structure, time and ultimate valuation of the project for its financial backers. The development of new projects (and thereby supply) can also have an impact on commodity prices, and therefore an impact on returns for financial backers.This paper will provide commentary on the author’s experiences and observations as a project developer and operator for 25 years, before becoming a project financier a decade ago.CITATION:Rozman, L I, 2016. Project evaluation and valuation – an investor’s golden rule, in Proceedings Project Evaluation 2016, pp 31–36 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By D J. Thobaven

Project financing challenges caused by declining commodity prices have heightened the need to improve project metrics such as minimising capital payback and maximising net present value (NPV). Khnaiguiyah Mining Company (KMC) recognised the need to improve early cash flows at their Khnaiguiyah zinc-copper project after initial studies showed the project could not provide the desired financial outcomes necessary to compete for investment dollars in the current market.A significant improvement to the project cash flow in early years was realised through simultaneous optimisation of cut-off grade, mining sequence and strategic stockpiling. This improvement was achieved by accelerating mining in the pits, stockpiling lower value material and feeding higher value material directly to the plant. The schedule required higher mining and stockpile capacities than the sequential mine plan although minimal change occurred in the definition of ore and waste as measured by tonnes and grade. The practicality of the strategic schedule was demonstrated by implementation in the production plan with excellent conformance.CITATION:Thobaven, D J, 2014. An application of simultaneous optimisation – improving the payback period of a zinc-copper open cut project, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014 , pp 137–144 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014

By D Timms

The Kempfield deposit is located in the Hill End Trough, one of several intracratonic basins developed during Silurian–Devonian time, in the eastern province of the Lachlan Orogen, Eastern Australia.The deposit contains an oxide resource of 5.8 Mt @ 58 g/t Ag and a sulfide resource of 14.4 Mt @ 45 g/t Ag, 1.7 per cent Zn and 0.6 per cent Pb, classified and reported in compliance with the JORC Code. The deposit has been previously explored by a number of companies, including INCO, Shell, Jones Mining, Golden Cross Resources and recently Argent Minerals Ltd (Argent). Argent is currently completing a definitive feasibility study with a view to mining the deposit.The deposit is hosted at the boundary between the Molong High to the west, comprising Ordovician sediments and volcanic rocks and the Hill End Trough to the east, interpreted as a back-arc basin containing Silurian sediments and siliceous-feldspathic volcanic rocks. The boundary between these two strato tectonic units is an imbricate thrust fault zone known as the Copperhannia Thrust.The Kempfield deposit is hosted in felsic volcanic rocks known as the Kangaloolah Volcanics. These have been in-faulted and folded into the Middle Ordovician meta-sediments of the Coombing Formation of metasediments along the Copperhannia Thrust. The Kangaloolah Volcanics belong to the Late Silurian Mumbil Group, comprising submarine carbonate-shale facies interspersed with extensive felsic volcanic piles, which grade conformably upwards into turbiditic sandstone and siltstone sequences (interpreted to represent a deeper depositional environment). These turbiditic rocks are known as the Campbells Formation, comprising siltstone, sandstone and andesitic tuff. The rocks at Kempfield are metamorphosed to lower greenschist facies, reflected through the different type of schists.Silver, gold, lead, zinc mineralisation is hosted in barite-rich horizons, near the boundary to quartz-phyric tuffaceous rocks in submarine, immature, reworked felsic ash tuffs. Barite appears to be hosted in greatest concentrations by the coarser grained volcanoclastic sandstones and grits, whilst intercalated siltstones are volumetrically minor and tend to return low barite and silver. Mineralisation is hosted in stratiform and probably stratabound barite-rich horizons. A northeast-trending, steeply dipping, metamorphic cleavage (S1) occurs throughout the project area.

Aug 22, 2011

Real-time data collection and plant historians are becoming common place in mining and processing plants. This vast quantity of data must be turned into easily accessible and actionable information for all levels of the organisation.Queensland Nickel use a combination of Microsoft and SAP business intelligence tools to collect, cleanse, aggregate and present plant information to the appropriate people for supporting decision making in the business. SAP Business Objects, for visualisation, and SAP MII, for integration, allows complex and accurate metrics to be delivered as real-time dashboards. Designing a rigid data management architecture to segregate the data collection, integration and logic and visualisation into distinct logical layers, allows for rapid report development and greatly assists with IT maintenance, while also minimising the complexity of any customised programming. This type of architecture ensures a common data source for all business reports, ensuring one version of the truth. The past few years at Queensland Nickel have seen process and maintenance engineers spending considerably less time collecting and integrating data and spending more time analysing what is happening in the plant. Real-time reports and dashboards have been developed around the business needs rather than around the data. Two years ago Queensland Nickel introduced an employee bonus scheme based upon meeting monthly performance targets; an easy to use dashboard that allows everyone, from operators through to management, to monitor these metrics day-to-day.

Sep 26, 2011

By J Walshe, G Duclaux, L A. Fisher, R Hough, J S. Cleverley, M F. Gazley

Characterisation of hydrothermal gold systems across multiple scales is increasingly important for our understanding of ore deposit genesis and for targeting new mineralisation. Published work on multiscale mineral system exploration focuses either on applying a single technique across scales or on incorporating a series of techniques across a limited scale range. Typically, these studiesÆ spatial scales vary from crustal to deposit-scale and have successfully linked the distribution and shape of major orebodies to fault systems or varying lithostratigraphy. But, is this scale small enough to answer fundamental questions about the relative timing, processes interactions and mechanisms involved in the formation of ore deposits? We illustrate the potential of a deposit to microscale study, using the Plutonic Gold Mine in Western Australia as an example, to better understand hydrothermal gold systems. Using an integrated approach combining lithological and alteration logs, various geochemical data set, meso- to microscale structural and textural observations and spatial data assimilation, we have revisited the fundamental processes involved in the formation of this significant gold deposit.CITATION:Duclaux, G, Hough, R, Gazley, M F, Fisher, L A, Walshe, J and Cleverley, J S, 2013. A multiscale approach to hydrothermal gold systems - unravelling mineralisation processes at the Plutonic Gold Mine, in Proceedings World Gold 2013 , pp 95-98 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 26, 2013

By T Soares, P Esteves, C Senna, V Souto, E Dias

Steinert provides a wide portfolio of Sensor Based Sorting (SBS) technologies, including the possibility to combine different sensor data in the development of the separation applications. This multi sensor approach provides a larger applicability and extensive flexibility for the technology. This effect is emphasized for mining applications, once every ore body presents its own features that can also comprise a large material variability. In this sense, every sorting application is customized and comprises a personalized solution. This means each project development includes a test work stage that approaches from the project discussion, test definition, up to test outcomes and processing development. In relation to very complex and large projects, a sorting pilot scale plant has become a crescent tendency. By having a pilot plant stage can represent a chance to test larger amounts of material from different mining areas, different mining projects, such as to consider different processing targets and application approaches. Based on that, a better understanding about the technology application can guide a more assertive development of large and complex ore sorting projects. The aim of this paper is to provide information about the applicability of the Steinert multi sensor technology at different pilot plants in South America. It consists in a compilation of laboratory test results, plant design and operational results. For that, a chromite, an IOCG deposit and a sulphide gold ore projects are presented. Additionally, the paper discusses the application of different sensor technologies combinations such as various processing targets, thus providing a wider understanding about sorting applications and flexibility.

Nov 10, 2020

By A Reid, A W. Musk, O Jones

In this paper, the authors attempt to bridge the gap that currently exists between the duty-of-care responsibilities of underground mining industry personnel, and the multifaceted health challenges facing mineworkers in Western Australia’s metal mines where diesel-powered mobile equipment predominate. In addressing this issue, the complexities of the nature and extent of the challenges are discussed along with the current inadequacy of existing regulatory metrics. Support is given to the need for well-organised in-mine baseline studies to clearly define the distribution and aging characteristics of the toxic and carcinogenic pollutants within the mine ventilation system, with special emphasis given to exploring the validity of biomonitoring systems. The paper concludes with the proposal that a template risk assessment data sheet be prepared for the industry to provide mining personnel with a sound basic knowledge of the health risks involved and the control measures and precautions available for minimising and/or eliminating the hazard.CITATION:Jones, O, Musk, A W, Reid, A and Davis, C, 2017. Risk assessment tool for mines using diesel-powered mobile equipment, in Proceedings 13th AusIMM Underground Operators’ Conference 2017, pp 151–154 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 16, 2017

THE de-silverizing of base bullion at the Port Pirie works is carried out in accordance with the principles of the well-known Parkes process. The base bullion produced by the blast furnace department carries (apart from silver values) impurities, the chief of which are copper, antimony, and arsenic. In order to more clearly indicate the grade of the base bullion, the following analysis, representative of a half-year's production of base bullion, is submitted...Before proceeding with the actual operation of de-silverizing, it is necessary that the impurities, copper, antimony, and arsenic, should be eliminated. This is accomplished in the following steps :- (1) Removal of Coppel - Copper is largely present in the base bullion as dissolved sulphide, and this is removed by liquation in a reverberatory type furnace, of which the following are the essential details :-Working temperature 7500 to 8500 C.Coal consumption per 24 hours 2 tons.The hearth of the furnace is encased in a steel tank 22 ft. 4 in. long by 13 ft. 4 in. wide by 2 ft. 10 in. deep; the bottom of the tank is covered by a depth of composition conforming to the invert :-Cement 39 cwt.Brick dust 8.4 tons.Fireclay 0.6 tons.Sand 0.6 tons...

Jan 1, 1922

By D J. Brake

The underground metalliferous mining industry continues to change under the influence of many factors including, to name a few, new mining techniques and equipment, new approaches to risk management, more stringent safety and health standards, new employment practices and orebodies become deeper and often lower grade. In addition, the same technological revolution and plummeting cost of technology that has brought the GPS, smart phones and digital cameras to the general population is also working its way through the mining industry impacting on communications, automation and process control as well as introducing major efficiency and productivity dividends. However, not all factors are positive including, in particular, the issues of carbon costs and electrical power. This paper explores some of the trends affecting ventilation in hard rock mines, some of the existing and likely future challenges and some of the potential future solutions to these issues.CITATION:Brake, D J, 2013. Ventilation challenges facing the metalliferous sector, in Proceedings The Australian Mine Ventilation Conference , pp 3-12 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 1, 2013

By P Craig, M Holden, C Zhang, D Foster, J Oh, S Saydam, J Liu, H L. Ramandi, S Akdag

High stress in rock masses can cause significant instability problems such as squeezing deformation in soft rock and rock bursts in hard rock. The support system applied in burst-prone areas in high-stress conditions is required to be able to carry high load and accommodate large deformation of the rock mass without experiencing any serious damage. Yielding support systems are promising to provide support for both squeezing and burst-prone rock mass encountered in mining or tunnelling at depth. They are ideally strong and stiff initially and then ductile after yielding (Potvin and Hadjigeorgiou, 2020). With respect to support design, a ground support system has to create a safe working environment under both static and dynamic loading conditions by providing the functions of reinforcing, retaining, holding and connecting elements (Cai and Kasier, 2018). Rigid rock bolts and cable bolts perform reinforcing and holding functions of a ground support system. In highly fractured ground or with large excavation spans (eg at roadway intersections or in caverns), unstable ground depth can exceed the length of typical rigid rock bolts (ie greater than ~3.0 m). In such cases, flexible cable bolts are needed to tie the reinforced and retained rock mass back to deeper and more stable rock. The flexibility of cable bolts allows anchor lengths greater than the tunnel opening that would otherwise restrict rigid bolts. Cable bolts also offer higher strength to weight ratio, with tensile strengths 2–3 times that of standard rebar bolts. This high strength comes at the cost of lower strain tolerance, typically around 5–7 per cent at break. Despite the lower strain tolerance, cable bolts are often used as dynamic support in demanding burst-prone ground conditions. The lower strain tolerance is compensated by allowing sufficient free length for stretching or incorporating a yielding device. There are a number of dynamic cable bolts available on the market and a number of testing campaigns have been undertaken to quantify the dynamic performance of these cable bolts. This paper reviews the existing range of dynamic cable bolts and discusses the potential areas for improvement and further research.

Nov 29, 2022

By C K. Suzuki, J A. Yanaguizawa, D M. F de Santana, L R. P Leite, A H. Shinohara

In the present work, the microstructure and mechanical properties of structural mortar from glass insulators were studied by X-ray fluorescence, X-ray diffraction, infrared spectroscopy, microhardness and compression testings. The investigated glass insulators were manufactured between the 1960 and 1990 years and had been used in 230 kV transmission lines. The results evidenced that the structural mortar of glass insulator was replaced from Portland to aluminous cement along the years. The crystalline phases of the mortar were identified and mechanical properties were correlated.

Jan 1, 2008