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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 Schaap W

A test on Taylor's rule of mine life using published data on open pit porphyry copper mines confirmed that mine life is, on average proportional to the fourth root of reserve tonnage. Deviations from this rule-of-thumb occur to a large extent as variations between regions that are qualitatively explained in terms of differences in grade, infrastructural needs or special taxation effects.

Jan 1, 1984

The limit of pressure to which an underground dam may with safety be subjected, is a question that-as far as the writer knows has not received the same attention from authorities on engineering construction, or practical mining, that has been accorded to questions on which the design and strength of other structures or machines in connection with a mine are based. That dams may, under certain conditions, be constructed to resist water under great pressure is a known fact. But the difficulty of demonstrating beforehand that any proposed structure of this kind will withstand the pressure and be effective is, owing to the indeterminate nature of some of the risks to be provided against, very great. In the present state of our knowledge it may almost be laid down as a rule, that a dam of this kind should not be undertaken where grave consequences would attend failure until experience of structures where the physical conditions are similar, but where there are no such risks, has given assurance that such work would stand.In Mines and Minerals for May, 1900, there is published a paper by Mr. James McNaughton describing the construction of three underground dams in the iron mining district of Michigan.The first of these was put in to hold back a flow of 750 gallons per minute, which when pent up created a pressure of 276 pounds per square inch, showing that the height of the sustained column was about 635 ·feet. The hole through which the water issued was in the bottom of the cross cut it was enlarged by removing all loose rock for a depth of 18 ft...

Jan 1, 1901

By H Arvidson, C Morley

Reconciliation has become very topical over the last ten years but how do we distinguish what is good practice, and even more importantly, show how it adds value? Reconciliation at Anglo American has received support from the very top of the company and this has enabled success in the design and implementation of a range of processes, reporting activities and actions. Focus has been on full Mine Value Chain Reconciliation (MVCR) from Resource to Product and on proactive cross-functional engagement. A standardised set of reconciliation definitions and relationships are used at all mines across the company to diagnose planning and performance issues. Results are formally presented in an efficient dashboard format, accompanied by a concise narrative to communicate what has been learned and what is being done to correct, improve or change practices. Importantly, effort has also been made to sustain MVCR by embedding good practice and quantifying the benefit of reconciliation explicitly via linking results to value.This paper sets out the lessons learned from the past two-years’ journey, highlighting areas where good practice has been defined and achieved. A ranking for quantifying reconciliation confidence over time is presented as a means of putting results into context and continuously improving the reconciliation process. Finally, a solution to define the value that can be derived from reconciliation is described, detailing how cross-functional personnel meet monthly to review results and implement actions that are tracked in terms of value creation.CITATION:Morley, C and Arvidson, H, 2017. Mine value chain reconciliation – demonstrating value through best practice, in Proceedings Tenth International Mining Geology Conference 2017, pp 103–116 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 20, 2017

By J Canterford

There is an apparent push to develop and commercialise "new and innovative" process flow sheets. A not-too-difficult reality check clearly demonstrates that the success rate of this push is not particularly significant and in fact could be regarded as a waste or misappropriation of R&D funding and the associated brain power. As Julian Sumner Miller would comment "why is this so?" To put it bluntly, many of the so-called innovative developments are equivalent to gold plating the dunny door - visually interesting but of very limited practical value. This presentation encapsulates some personal lessons learnt over the past 45 years.CITATION:Canterford, J, 2013. Developing a ænew and innovativeÆ process flow sheet - Traps for all players of all ages, in Proceedings MetPlant 2013 , pp 1-5 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 15, 2013

This paper examines the reform of mining legislation over recent years, the establishment of new Crown land management agencies, and the role of the Crown and environmental groups in nature conservation inNew Zealand. It describes the relationship of the minerals industry to the Department of Conservation and environmental groups over recent years, and the prospects for mineral development on the Conservation Estate in future.

Jan 1, 1995

By S Withell, K Sheehan

Whitehaven Coal (WHC) is undergoing a transformative journey, deeply committed to the principles of a High Reliability Organisation (HRO) and the establishment of a mature, interdependent culture founded on psychological safety. This ongoing commitment is not merely aspirational but is supported by performance improvements backed by both quantitative performance data and qualitative evidence of cultural progression. WHC has strategically integrated leading and lagging indicators to target fatal risk. WHC focus areas include an emphasis on strategy and risk appetite, targeted data, informed learning, proactive addressing of fatal risk and the integration of data management and technology.

Apr 16, 2024

At the Orieco mine quartz veins carrying sulphides were localized in parts of an extensive fault zone in the Mathinna Beds during late Middle Palaeozoic mineralization.These deposits were subsequently exposed, and oxidation of the sulphides by percolating groundwaters resulted in the formation of gossans at the surface, and replacement close to the permanent water table of the more soluble sulphides by copper sulphides (chalcocite, coveIlite). A restricted zone containing copper oxides (cuprite, tenorite), copper carbonates (malachite, azurite), iron arsenates (scorodite, pharmacosiderite) and possibly rare copper sulphates occurred above the water table.The renewed oxidation of these deposits following mine development has been facilitated by the ready circulation of air and water combined with the formation of large free surfaces ideal for evaporation of aqueous solutions. Under these new conditions of high initial sulphate concentration, low pH, and relatively high Eh, the previously formed mineral assemblage is unstable and numerous Cu (Fe,Zn)-sulphates and Fe (Cu,Pb)-arsenates are presently forming in fractures in the fault zone and on the adit and stope surfaces for some considerable distance from the Sulphide-rich ore shoots. The observed spatial sequence of the major sulphates with respect to the sulphide-rich zones (Le. chalcanthite-antleritebrochantite and langite) is consistent with decreasing sulphate concentration and increasing pH away from the oxidizing sulphides.

Jan 1, 1970

Plant-Based Trials of Monitoring of Coal Flotation Systems Using Electrical Impedance Spectrum Technique

Sep 13, 2010

By M Logsdon, B Johnson, M Fordham

The underground Neves Corvo copper-tin mine in southern Portugal currently disposes of its tailings in a ætraditionalÆ wet tailings impoundment. With the development of new technologies for preparation and transport of thickened tailings or paste, alternative tailings disposal options have become available that provide a more sustainable water management system and a higher degree of environmental protection. In addition, growing European resistance towards subaqueous disposal may well result in mandatory use of dry disposal methods in the near future. Twenty-four tailings disposal alternatives were evaluated through a cost-effective and easily-implementable bench-scale geochemical screening program conducted at site. Since the tailings are pyrite-rich and highly acid generating, particular emphasis was placed on monitoring likely indicators of sulfide oxidation under the various simulated disposal scenarios. Dependent parameters investigated as part of the program included moisture content, use of alkaline additives (lime, cement), use of a bactericide, and agitation. Response parameters included paste pH, specific conductance, and temperature as indicators of oxidation. The testing was carried out for 30 weeks. Results indicate that a number of relationships between the geochemical stability of the samples (ie sulfide oxidation) and sample characteristics can be readily identified. Based on the results of the screening program, a limited number of tailings mixtures have been selected for further long-term testing in field weathering cells to aid in the identification of the optimal mix design for future tailings disposal at the Neves Corvo Mine. This type of testing provides an inexpensive and reliable methodology for semi-quantitative comparison between tailings disposal alternatives, in particular at locations where more rigorous evaluation through long-term, fully replicated testing is not immediately feasible.

Jan 1, 2003

By R Shaw, M Hidding

The design of primary sample cutters for high-capacity conveyors is critical to achieving a correct sample, both in collecting the sample and ensuring smooth sample discharge flow. Modelling usually occurs at the design stage and requires extensive experience to achieve the correct result. However, it is difficult to confirm the effectiveness of the cutter design until after installation. Even with high-speed video, confirmation of complete sample capture is difficult, especially if the material characteristics change over time. Recent investigation using discrete element method (DEM) simulation to model the flow of the ore into the cutter and observe how it interacts with the cutter has revealed some interesting design requirements not observed in the past. By including DEM modelling, the correct design and optimisation of the cutter can be more accurately determined prior to commissioning.CITATION:Hidding, M and Shaw, R, 2017. Modelling ore flow in the design of high-capacity sample cutters, in Proceedings Eighth World Conference on Sampling and Blending , pp 145–150 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2017

By A Jankovic, D David, P Payne

Although the majority of current steel production is supported by iron ore sourced from high-grade haematite deposits, the long-term growing demand for steel has led to higher raw material prices and opened the way for many new magnetite deposits to also be developed. There is a rich and long history of magnetite ore processing in Western countries, including large operations such as Cleveland Cliffs in the USA and LKAB in Sweden, as well as smaller operations like Savage River in Tasmania. The challenge for virtually all magnetite operations is to minimise operating costs, which is dominated by the cost of power required to fine grind the ore in order to achieve acceptable concentrate iron grade together with low impurity content. This remains the case today and will be even more important in the future when a carbon tax is expected to become a significant addition to the operating costs for magnetite deposits. Historically, the lowest operating cost was achieved by multistage fully autogenous grinding with integrated magnetic separation steps between the stages. The major benefit of fully autogenous grinding is the elimination of steel grinding media costs and the need to discriminate between steel and magnetite in coarse magnetic separation. The separation step between grinding stages progressively reduces the amount of material to be ground. Application of more efficient grinding technologies developed in the last 20 years, including high pressure grinding rolls (HPGR) for fine crushing and stirred milling for fine grinding, has provided opportunities to further reduce the operating costs associated with comminution. Both technologies are already implemented in some magnetite processing operations, although in limited capacity. The results of a theoretical option study for high capacity processing of a hard, fine-grained silica-rich magnetite ore is presented in this paper, with the emphasis on comminution circuit options. Several circuit options are ranked based on a net present value analysis incorporating an estimate of carbon tax added in the operating cost. The study demonstrates the significant advantages of applying more efficient autogenous grinding technologies.

Jan 1, 2009

At the present time this plant is treating by direct cyanidation 1,000 tons of ore from Open Cut mining and dumps, and 1,200 tons of current flotation tailing obtained from the Sulphide Mill, per day.The following table shows the average analysis of the two feed products (see Table 1):Precipitation Process.-The pregnant solution obtained by the cyanidation of the above has the following general analysis:-Gold 0·600 dwt. per tonTotal Cyanide 0·050 %Free Cyanide 0·045 %Calcium Oxide 0·015 %KCNS 0·060 %Na2S20S 0·140 %CaS04 0·200 %Cu 0·050 %Zn 0·004 0/0K4Fe (CN) 6 NilThis solution, after standard clarification, is precipitated by means of zinc dust and a soluble lead salt.

Jan 1, 1939

By P Grieve, J L. Mauk

The Central Maratoto Valley in the Coromandel Peninsula contains a sequence of veins in pervasively altered dacite + andesites of the Waipupu Formation. We recognise at least eight different vein types: (1) pyrite stringers, (2) quartz + carbonate veins, (3) crystalline quartz veins, (4) carbonate veins, (5) chlorite + carbonate veins, (6) siderite veinlets, (7) siderite + carbonate veins and (8) carbonate + pyrite veins. The overall temporal trend of the veins is from early pyrite to quartz and then to late carbonate veins. Carbonate veins and pyrite stringers both form planar and irregular veins, whereas some carbonate veins have diffuse contacts with the wall rock. Gold and base metal sulphides are associated with some of the quartz + carbonate veins. Textures within the veins reflect open space filling and multi-phase reopening. A partial record of hydrothermal activity has been preserved by vein crosscutting relationships, hydrothermal alteration minerals and fluid inclusions. Hydrothermal alteration minerals display zonation from south to north. The alteration increases from unaltered to weak propylitic alteration of andesite in the south (MVRCDC1), to sericitic alteration of andesite and dacite in the north (MVRCDC3). The alteration assemblage is dominantly sericitic, with no adularia present, drawing parallels to the Thames region where there is no adularia.

Jan 1, 1999

Traditionally, capital costs of major resource development projects have been estimated as a single amount to which a percentage accuracy has been assigned based on the method of preparation of the estimate, that is, on the amount of information available to develop the estimate.However, there is a growing recognition of the importance of a probabilistic approach to capital cost estimates, and of a more rigorous calculation of estimate accuracies and of the presentation thereof. Accuracies can be expressed with more certainty as a percentage of the estimate amount where the percentage represents one standard distribution on the probability curve for the capital cost of that specific project. Thus confidence levels can be stated for various estimated amounts - for example, it can be stated that there is an 85% chance that a stated amount will not be exceeded, or a 90% certainty that a (higher) amount will not be exceeded. Moreover, the right skewness of the probability distribution curve for most projects can be readily recognised and reflected in the evaluations. This enables senior executives and board members to have a clearer understanding of investment uncertainties, and the possible magnitude of commitments.

Jan 1, 1990

By I Lourel

In evaluating the installation of an in-pit crushing and conveying (IPCC) system for any mine, a number of options are available for each of the dig side, transport and dump side operations. Some of them are moreappropriate than others; given the pit arrangement, the material being handled and the rates at which it needs to be moved. This paper seeks to document the options that might be employed, and to rank them in terms of their applicability at any mine and their practicality overall, with a view to nominating those that would be most suitable for further study.

Jan 1, 2009

By E Portes, G Noble, J Roberto, A Stabile

Iron ore beneficiation plants are facing economic pressures to treat more challenging ore types, improve efficiency and improve product quality. Better control and stability of the plant process in the face of increasing feed ore variability has been a goal for many of the operations facing these challenges.Prompt gamma neutron activation analysis (PGNAA) technology has proven to be a successful measurement technique within an iron ore beneficiation plant. PGNAA was first developed in the early 1980s for the measurement of the elemental composition of bulk materials. Today, PGNAA technology is applied for elemental analysis within the iron ore industry on both bulk materials and slurries.Traditional composite sampling throughout the wet iron ore beneficiation process provides a delayed measurement of average properties but does not capture the true variability of the process in real-time. As such this is a limiting factor towards stabilisation and optimisation of the process. A PGNAA analyser provides real-time slurry elemental analysis of feed, concentrate and tails streams within the processing plant. The analytical data from the analyser can be exploited with a control strategy to correct and stabilise the plant on a much shorter time scale, delivering significant economic benefits and greater operational flexibility. The economic benefits include more stable product quality and a reduction in composite sampling and laboratory costs.Some example results will be presented from the Vale Vargem Grande iron ore beneficiation plants, which are utilising a six stream multiplexed Thermo Scientific PGNAA Slurry Analyser.CITATION:Noble, G, Stabile, A, Portes, E and Roberto, J, 2017. Real-time slurry elemental analyser for iron ore beneficiation plant control, in Proceedings Iron Ore 2017, pp 481–486 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 24, 2017

By C J. Hogan

Increasing demand for fine grinding to improve mineral liberation and metal recovery and the need for stricter control of the environmental impact of tailings deposition poses problems for tailings disposal. This has led to an increasing number of investigations of properties of tailings and their disposal. This paper describes laboratory model testing undertaken on Macraes mine flotation tailings to provide information on tailings behaviour under conditions of subaerial deposition. The in-place density or 'dry density' of the impounded tailings and the impoundment depth relationship are important for utilisation of the available impoundment storage facility and results of dry density to depth relationships are given for the Macraes mine tailings impoundment.

Jan 1, 1993

By Gillies A. D S, Lee A. H

Water is an integral component of a mining operation. To-date water management has received a low profile in the overall management of mining operations. To cost effectively meet the requirements of government environmental legislation the man

Jan 1, 1994

By Creelman C. A

With the technique and data obtained in using the blast hole diamond drill for "Removal of Horizontal Level Pillar by means of Blast Hole diamond drilling at New Occidental Gold Mines N.L.," as described in Proceedings No. 133 of 1944, and a series of experiments using the blast hole diamond drill for stoping at New Occidental and New Cobar Mines over the past two years, a benching method of stoping has been developed using 2 inch coring diamond drill bits, resulting in efficient and economical ore extraction in these large ore bodies.During the experimental stages the standard H-inch blast hole was used, but the deflection of the holes, when using this solid bit, either decreased or increased the burden of the hole when it became necessary to drill holes deeper than 45 feet.It was found that after blasting vertical holes deeper than 45 feet, the ore did not break satisfactorily over the full length of the hole; on one occasion as much as 30 feet of bench was left at the bottom of the face, which had to be subsequently re-bored andblasted.As this defect was also noticeable to some extent even when the holes did not deflect, it was then obvious that the explosive had become less sensitive in the lower section of the hole. This was probably brought about by pressure being built up ahead of the detonation wave in H-inch hole, resulting in desensitization of the explosive.Another series of experiments were carried out, using 2-inch solid bits, which enabled a much greater burden on the holes, and the use of primacord for the full length of the hole.This gave satisfactory results regarding breaking and fragmentation, but was uneconomic owing to the excessive consumption of diamonds, and the slow rate of drilling.Further experiments were then carried out using 2-inch coring bits, (Fig. 1) which allowed holes of 90-feet to be bored with little deflection, and proved to be entirely satisfactory as to cost and speed of drilling.

Jan 1, 1945