Search Documents

By R Knight

"In project evaluation there are two matters of keen interest to non-executive directors: the process by which an investment recommendation is reached, as well as the investment itself, as presented. It is sometimes mistakenly believed that Boards of directors are interested only in the result. That is not so. The process by which project evaluations are derived and socialised with the Board is as important as the result, sometimes more so.Setting aside the gloomy predictions of the doomsayers and looking through short-term volatility in supply and demand, the overall availability of mineral resources more often than not exceeds demand. There are in reality more development projects in prospect at any one time than are needed to meet the market. Only the fittest will prosper, although some others may survive.Optimism springs eternal in the mining industry and every project promoter, executive or entrepreneur has a convincing project development case. Some will create value for shareholders, but the historical evidence suggests that many will fail to meet the expectations set in their evaluation.Boards of directors make the final decision to invest, or not, in a new mine. Knowledge is power, and on that basis the balance of power favours management. Management has the facts (or in some cases, what passes for fact) and the passion to invest. The non-executives have the power of approval – yes or no – but before making a decision directors must demonstrate due diligence, the essential precursor to project approval.Management has a vital part to play in facilitating that due diligence process and in encouraging the independent thought processes of the Board. A closed approach by management fosters a negative, risk-averse attitude on the part of the Board. One that encourages an understanding of the rigour of the project evaluation process and the robustness of the result will allow directors to understand better the implications of their decision.CITATION:Knight, R, 2016. Project evaluation – a non-executive director’s perspective, in Proceedings Project Evaluation 2016, pp 11–19 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

A novel fracture-plane control blasting technique with particular application in wall-control blasts in mines employing medium to large diameter boreholes is described. It consists of a string of nested holes, each nest consisting of a large diameter charge-hole flanked on either side by a small diameter satellite hole. Each nest is shown to be an analog of a pressurized hole with diametral notches along its length. This 'equivalent-notched' hole concept for generating controlled fractures along preferred directions has been successfully investigated in the laboratory and in the field. The technique has been used to generate controlled fractures on a quarry bench in highly jointed limestone. The resulting blasts with a 250 mm diameter central charge-hole and 50-75 mm satellite holes show that two nests of such holes almost 5 m apart could be joined by a single co-linear fracture. The design range of diameter ratio between charge-hole and satellite hole is 3 to 6 and spacing is 3 to 5 charge-hole radii. With careful matching of explosives and decoupling, and combination of diameter ratio and spacing, it would be possible to connect two nests of such holes more than 20 charge diameters apart by a single controlled fracture plane. The relative merits of the technique against existing wall-control blasts are discussed, and guidelines for practical fracture-plane control blast designs are discussed.

Jan 1, 1990

The 1980's have produced an outstanding revival of the Australian gold industry. In contrast to some previous mining booms, the economic aspects of the growth in gold production are soundly based. In general the new developments have been highly profitable and this is beneficial to all parties- whether they be government, shareholders employees or suppliers. Mining companies are showing a large commitment to gold exploration with approximately 50% of Australian exploration budgets now being directed towards gold. An increasing proportion of this expenditure is being channelled towards the eastern States with Queensland 'being the major centre of interest. Further strong growth in production is expected with some 50 projects likely to come on stream before 1990. A very significant aspect of the foundation for this growth is a continuation of the existing tax status of the industry.

Jan 1, 1987

By Lorenzen L

In South Africa, as in many other countries, the young engineering graduate is promoted quite soon to a management position where he uses less technical skills and more people-oriented skills. In the standard undergraduate curriculum for engineering, little attention is paid to the non-technical issues of the profession. An undergraduate course in management techniques cannot be a substitute for a MBA or Masters degree in engineering management, but can at least create an awareness of the practical problems facing the engineering manager. The aim of this paper is to provide an outline of such a course structure at the University of Stellenbosch. A survey is also presented on management training in the South African and Australian mineral industries. Feedback from students and graduates indicates that the fresh graduate does not fully appreciate the value of such a course until he/she achieves a position of responsibility after two or three years. Nevertheless, the management course appears to be successful in widening the perspectives of the engineer. As explained frequently in management journals, the technically oriented person (the engineer) has a convergent thought pattern, which could be in conflict with the more divergent thought pattern of the top, personnel or marketing manager. It becomes increasingly imperative for the young minerals engineer to be externally oriented instead of the traditional internal focus of engineering. The engineer should not only be aware of environmental issues in the technical design and operation of plants, but should also understand the inter-relationship between public relations, political pressures and environmental perceptions vis-d-vis technical facts.

Jan 1, 1993

The Cadjebut Mine is located 80 km southeast of Fitzroy Crossing. Cadjebut is owned 58 per cent by BHP Minerals and 42 per cent by Billiton Australia. Cadjebut is a 'Mississippi Valley Type' (MVT) deposit. Minerals present are sphalerite, galena and marcasite in a sedimentary host of dolomite and siltstone. The ore contains few deleterious impurities and no silver. The mill was commissioned in the first half of 1988 at a rate of 320 000 tonnes per annum. An expansion in the latter half of 1989 has since increased production to 550 000 tonnes per annum. The initial geological resource at the commencement of mining was 3.8 million tonnes at 13.5 per cent Zn and 4.4 per cent Pb. There is sufficient ore left to sustain operations to 1995 at a grade of 11.2 per cent Zn and 3.9 per cent Pb. The ore from underground is stockpiled on the surface via a drift conveyor and from the stockpile is fed into a grinding circuit consisting of a SAG and ball mill. Cyclone overflow at a Pgp of 90 pm gravitates to the flotation circuit. Lead and zinc are sequentially floated to produce an 80 per cent Pb grade at 90 per cent recovery and a 61 - 62 per cent Zn grade at 96 per cent recovery. The concentrates are thickened and filtered before being trucked to the port of Wyndham 600 km away. From Wyndham the concentrates are shipped to smelters in Asia, Europe and Australia.

Jan 1, 1992

In response to requests from the iron ore mining industry, the Commonwealth Scientific and Industrial Research Organisation (CSIRO) Division of Mineral Physics has developed a number of bulk analysis techniques in which analyses are obtained directly from ore samples weighing many kilograms or from ore located on conveyor belts.Because penetrating neutron and gamma radiation is used, measurements are obtained from a large volume of ore, which ensures thal the analyses are represelllative of the bulk.Two different gamma-ray techniques have been developed to measure iron ore grade. The first is based on backscallering of 60CO gamma rays, while the second involves measurement of the annihilation radiation which arises when the ore is irradiated wilh 226Ra gamma rays. Both techniques measure the iron concentration with an accuracy (1 s) of better than 0.4% Fe.A thermal-neutron irradiation technique using a 252Cf neutron source has been developed for the simultaneous determination of iron and the aluminium impurity (expressed as AI2O3) in iron ore fines on a conveyor bell. Because the conveyor speed must not exceed about 0.05 m/s, if good accuracy for AI2O3 is required, an auxiliary analysis bell is required Lo avoid inLerference with normal ore processing. Dynamic trials have demonstrated that accuracies of 0.6% Fe and 0.1% AI2O3 can be obtained.

Jan 1, 1985

By Donald D

A number of standard tests are conventionally carried out to characterise strength properties of rock. The values of the parameters obtained are often affected by planes of weakness or defects in rock structure. For the purpose of mine design, the range in values or the class of the strength (obtained from a number of tests) is generally more important than a precise value (obtained from a single or limited number of tests). Research has been conducted to establish a relationship between an indentation index and the strength of the intact rock material from the Eastern Goldfields of Western Australia. The Tamrock Raise Boring Index (RB-i) test, which is quick and easy to perform, was selected as the indentation test. The results show that, for heterogeneous, strong to very strong rock, there is a good correlation between the indentation index and the uniaxial compressive strength and tensile strength.

Jan 1, 1996

Blasting is a common practice in mining whereby solid rock is fractured, using explosives, to a more manageable size. The effectiveness of blasting influences a number of downstream activities such as shovel digability, crusher throughput and mill throughput. As the cost of explosives is relatively low compared to milling costs (mainly due to power consumption), blasting practices can be optimised so that the downstream processes are made more efficient, and an overall cost saving made. This is the basis of the Mine to Mill approach. The effectiveness of the blasting is influenced by two main factors, the blasting practices used (eg explosive amount and type) and the geology of the area. As the geology cannot be altered, the blasting practices must be refined to create optimum blasting. Kalgoorlie Consolidated Gold Mines (KCGM) Fimiston operation, located in the heart of the Kalgoorlie Goldfields is the largest gold mine in Australia. Mine to Mill at KCGM has had varied success, with initial positive indications being lessened by a number of factors, including the increase in the amount of voids.

Jan 1, 2003

By Rabie A. S, Fouad K. M, Ammar A. A

The existence of Gabal El Kahfa ring complex, located in the Eastern Desert of Egypt, has been ascertained from aeromagnetic and aeroradiometric survey data as well as by aerial photography. Two maps for -the net aerial radiometric measurements reduced to ground level and aerial magnetic data corrected for the regional normal gradient of the earth's magnetic field have been constructed. The aeroradioactivity data have been interpreted geologically and analyzed statistically to outline various radiometric units and compute their charac- teristic statistics. The ring complex showed a circular radiometric feature and yielded a radiometric mean background and a standard deviation of 6.48 and 0.89 pR/h respectively. Besides, the observations showed a normal distribution. The aeromagnetic data have been reduced to the north magnetic pole, then filtered to produce the regional-and residual-component maps. Statistical trend analysis was conducted for the tectonic linea- ments resulting from the three magnetic maps, to define the structural framework of the area under study. This statistical study proved the exis- tence of trends in the east-west, northwest-south- east, northeast-southwest and north-south directions. The ring complex is characterized by a circular magnetic feature, whose average relief is 2150 nT. It is included within a high east-west trending magnetic zone. The latter represents a deep-seated uplift or anticline which is bordered from all sides by some faults of different trends.

Jan 1, 1988

By Sharwood M

Welcome to the morning of the second day of Minval '89. There are some three hundred and fifty of us here today. That represents certainly the most influential gathering of the mining and investment community in Sydney for a very long time, and on behalf of the Institute I bid you all a very great welcome. Due to the pilots' strike some of you have arrived by very unusual methods and others have travelled long distances. So for those of you that have made a special effort, thank you very much. Inevitably some people have not been able to get to Sydney and this has led to some minor programme changes. I'd like to thank our sponsors. Our underwriting sponsors are Energy Resources of Australia, Neil Cole & Associates, Resource Finance Corporation and Robertson Australia Limited, and to those firms thank you very much. To our major sponsors, County NatWest, I would like to say a particular thank you. County is the lead sponsor for Minval '89. They've :made an important contribution to the programme, and we're indebted to them for this support. We look forward to County's continuing involvement in the programme today. County NatWest is a major participant in the Australian equities markets and a growing merchant banking organisation in this country. It's parent organisation, National Westminster Bank, isa leading UK domiciled bank which is also active in Australia. This session is the Pancontinental Mining Ltd sponsored session, and I'd like to record the gratitude of the Australasian Institute of Mining and Metallurgy to Pancontinental for its generosity in sponsoring the session. This morning's session focuses on valuation and follows on from yesterday's proceedings which looked particularly at the impact of NCSC draft Policy Release Number 149. Robert de Crespigny, who was to have been the Chairman of this morning's session, has had some special problems with the pilots' strike.So we have the privilage to have in his stead Michael Sharwood.

Jan 1, 1989

By McGuckin P. H

The Cadjebut orebody is a MississippiValleyType (MVT) zinc-lead deposit, and is located approximately 80 km southeast of Fitzroy Crossing in the Kimberley region of Western Australia. It is one of five zinc rich orebodies discovered by BHP Minerals in the region.The participation in the Cadjebut Joint Venture is BHP Minerals limited (Manager), 58 per cent and Billiton Australia Limited, 42 per cent.The mineralisation is contained in gently dipping dolomitised limestone sediments (part of the Lennard Shelf carbonate sequence) with an orebody width of between 60 and 120 m and a strike length of approximately 3 km. The deposit consists of two thin, stratabound shallow dipping orebodies, one overlying the other, to provide discrete but not independent mining areas. The orebody contains approximately 2.1 million tonnes of recoverable ore at an approximate grade of 12 per cent zinc and four per cent Lead.

Jan 1, 1992

The continued exploration of the major brown coal deposits of the Latrobe Valley has resulted not only in the discovery of huge additional reserves, but also in new concepts of the stratigraphy and structure of the coal seams in that area. The author sets out his interpretation of the new information which has become available over the last six years.A section of the paper is devoted to the quality of the coal. As the chemical composition of these brown coals has been discussed in some detail by previous authors, only the major constituents and the heat value of the coal are dealt with in this paper. Some of the variations in quality are related to the geological structure.The occurrence of underground water and its relation to open cuts is dealt with briefly.INTRODUCTIONThe Latrobe Valley Tertiary Basin is almost entirely covered by a layer of Post Tertiary sediments which mask the underlying rocks and their structures. As a result, the geological understanding of this area has had to await the comprehensive drilling campaign in search of brown coal, initiated by the Victorian Mines Department in 1917, and subsequently carried on by the State Electricity Commission of Victoria. The first detailed geology was published by Herman (1922), and this was followed some 25 years later by papers by Edwards, and later Thomas and Baragwanath, to which reference will be made later in this paper. Herman included a section on the geology of the Latrobe Valley in his book Brown Coal, which was published in 1952.Since that time a considerable amount of new information has become available from the continued drilling carried out by the Commission. In addition, geophysical work carried out by the Commonwealth Bureau of Mineral Resources has assisted in the defining of geological structures in the area.

Jan 1, 1960

By Walker E. R

IN the early age of steel it was made hy what is known as the cementation proeess, in which wrought iron was embedded in charcoal and heated in a mufflc furnace to a tcmperature of approximately 1100° C. for varying lengths of time, the length of time depending upon the amount of carbon (or better known in thosedays as the degree of hardness) required in the finished product.By this process the resultant product obtained was not of uniform quality, and because of this uncertainty of quality Huntsman was induced, in the year 1740, to introduee what is known as the crucible process.This process consisted of cutting into small pieces the product of the cementation process, placing these pieces in a crucible, and melting them down with the aid of a eoke-fired furnace, after which the molten metal was cast into suitahly shaped ingots, from which could be hammered any desired shape.A section of crucible furnace is shown in Fig. 1. By this means a product, very uniform in character, was produced.The process is still in use, but, owing to its high operating cost, it is mostly eonfined to the production of very high-grade carhon and alloy steels. Its position to-day as a producer of these high-grade steels is, however, being very seriously challenged by the electric process.It was owing to the excessive cost of crucible steels and the need of producing a steel in commercial quantities and at a reasonable cost, that led Sir Henry Bessemer to introduce what is known as the Bessemer process.

Jan 1, 1930

By Mayer TE

The Granites Goldfield is located 550 km northwest of Alice Springs. Mineralisation was discovered in 1900 and intermittently worked along nine km of strike until the early 1950's, yielding a recorded production of 470 kg of gold. The geological environ- ment, pre-existing exploration drilling results, and an optimistic view on gold, prompted acquisition of the property by North Flinders Mines Limited in 1975. An agreement was signed with the Central Land Council in August 1983 and drilling commenced in the same month. In the past, gold was won from alluvial deposits, rich quartz veins and lower grade, disseminated stratabound mineralisation. The last is contained within a distinctive unit in the Mt. Charles Beds, of the Early Proterozoic Tanami Complex. This informally named "Host Unit" is a metamorphosed, chemical- pelitic sediment. The schist contains variable proportions of amphibole, quartz, garnet, clinopyroxene, carbonate and sulphide, inter- calated with recrystallised chert beds. Free gold occurs in several mineralised horizons within the Host Unit, generally conformably distributed within lithologic bands or at lithologic contacts. The Host Unit occurs within a sequence of metamorphosed pelitic sediments and intermediate volcanics. Although mostly confined to the Host Unit, stratabound gold mineralisation also exists in both Footwall and Hanging Wall Schists, usually within zones displaying certain Host Unit characteristics. The deposits may be loosely categorised as being of banded iron formation (bif) type, although some important differences are noted between them and classical bif type orebodies.

Jan 1, 1984

The Macquarie Dictionary defines `information' as: knowledge communicated or received concerning some fact or circumstance; (in communicating theory): a quantitative measure of the contents of a message. For mining companies investing in data capture and information processing technology for operations management is a key issue. Beyond producing performance related information that employees can relate to it is being able to deliver that information into the workplace when it is required, to the employees that can utilise it. To be effective the data needs to be received and understood as `information'. The technology is now available and proven to enable `information' to be delivered into the mining workplace adding value to the activities performed by mine employees. The application of computers and information technology in the mining industry has typically been limited to the resource definition and planning stages, accounting and administration and the process plants that treat the ores and minerals. The mining extraction processes that consume expenditure and determine output in a mining operation occur in an environment dominated by unpredictable events and variable conditions. The mining operation has long been regarded as an inexact science conducted in unpredictable circumstances with many independent variables affecting the output and resultant cost of production. Financial accountants keep track of expenditure and management accountants analyse the cost of production usually on a weekly or monthly basis but all this effort can't affect the outcome, that was determined by the real time events and variations of circumstances over a week ago. Such reporting and analysis can result in conclusions being drawn about what improvements can be made and how you might do better next time, but generally the data is not detailed enough, is inaccurate or misrepresents the real issues. The capital investment required for any mining operation is substantial and comparable to other industries such as manufacturing. The performance and utilisation of manufacturing plants is usually closely monitored down to the lowest level of detail. Many modern plants are controlled and optimised using programmable intelligent devices and monitors display real time performance to the operators and prompt them to make informed decisions to maximise production and minimise wastage. Technology suitable for the mining industry is now widely available and has proven to be a reliable and powerful tool for the optimisation of mining operations. This paper focuses on the latest information technology developed by Modular Mining Systems that has been implemented in mining operations worldwide. The benefits reported by the mining companies utilising real time information technology over the past 15 years have generally related to optimisation of truck fleet allocation and material blending. Some mining operations have reported improvements in equipment utilisation of greater than 20 per cent. With the development of real time graphical display screens in the operators cabins the benefits of information delivery can be harnessed to make employees more effective in the workplace.

Jan 1, 1995

By Mallett CW, Hammond RL

Geological maps of the Pacific Rim recently published by the Circum-Pacific Council for Energy and Mineral Resources have provided a useful perspective from which to view modern plate interaction and the evolution of modern fold belts. An important lesson from any study of modern plate interaction is that of the normality of change. The chaotic is more usual than the simple. Present day convergent margins with mixed characteristics are measures of this chaos. Indeed, the character of less than one third of the present length of the Pacific Rim can be ascribed to conventional models of plate interaction. Another lesson is that of the great mobility of oceanic crust. Enormous areas of the Pacific may not be represented in future fold belts developed at convergent boundaries unless normal consumption processes are disrupted, and even then only by linear zones a few kilometres wide. The axes of divergent boundaries creating Pacific Ocean crust have been equally mobile, with new spreading sites taking over from older sites through time. Divergent boundaries, whether active or inactive, consist of oceanic crust, and may be wholly consumed at collision sites with convergent boundaries. Their only potential contributions to fold belt evolution are transforms and magmatic activity. It is this transform component that can provide us with a mechanism to explain the apparent contradiction of both compressional and extensional features occurring together in a developing fold belt. Reconstructions for the SW Pacific are used to demonstrate that the fold belts under construction during the last 4% (Jurassic- Recent) of geologic time have involved interaction between convergent, divergent, and transform boundaries. In the last 15% of earth history (Late Proterozoic-Recent), many enigmatic features of the geologic landscape in Eastern

Jan 1, 1987

By A E. Annels, M D. Raine, I M. Platten

Lode-gold systems are often characterised by a high to extreme nugget effect (>50 per cent), and the presence of coarse gold particles (>100 ¦m in size). They rank amongst the most difficult of ore deposits types, in terms of producing an accurate and precise resource estimate. Their effective sampling is generally difficult because of the relatively low concentrations involved and erratic nature of the gold particles. Grade continuity is usually less consistent than gross geological continuity, and is typified by the localisation of grades within discrete oreshoots. In most cases drilling, particularly diamond drilling is an effective measure of global geological continuity, whereas grade can only be reliably resolved from underground development. Depending upon drill density and geology, it is unlikely that anything above an Inferred Mineral Resource can be estimated from surface drilling alone. Underground development, in-fill drilling and, potentially, bulk sampling or trial mining will be required to delineate Indicated and Measured Mineral Resources and subsequent Ore Reserves. Grade estimation will have to account for highly skewed and often multi-modal populations, extreme values, a high nugget effect and low geostatistical ranges. A clear geological model that honours both geological and grade continuity must drive the resource estimation process.

Jan 1, 2003

The difficulty in creating and obtaining a competitive edge in the mineral industry is rapidly increasing. The Kiruna Iron Ore Mine in the far north of Sweden is currently thriving on the world market through firm managerial strategy. LKAB believes in upgrading its raw material to produce a high quality iron ore product for sale to steelworks throughout the world. It is vital that this product is also of uniform quality and quantity to provide quality assurance to customers. The first link in meeting these product requirements starts in the underground workings. Mining methods and operations are of large-scale. Automation and continuous production streamline operations and reduce operating costs. These factors have built Kiruna Iron Ore Mine into the world's biggest, most modern, underground iron ore mine. To remain competitive on the world market, LKAB relies heavily on research and development. The mine is currently in a phase of upgrading its operations. A 25-tonne Toro electric loader is being tested to improve the rate of output of ore from the mine. Long hole drills are being improved to increase accuracy and efficiency. An electronic detonating system will improve detonator delay precision. Projects are underway to better understand ore flow mechanisms from a caving orebody. Benefits include improved ore recovery along with better rock quality control at the caving front. The continued updating of mining operations at Kiruna will enable LKAB to continue to maintain its competitive advantage on the world market in the production of high quality iron ore products.

Jan 1, 1997

The large rotary blast hole drills for hole sizes of 250 to 375 mm in diameter have been utilized by large open pit metal and coal mines for production drilling all over the world. The design of such rotary drills is in most cases about two decades old and it has not been done much in order to apply a modern technology on rotary drilling. The most modern large rotary drill, Tamrock RI 10, consists of an advantageous rotary head with a squirrel cage AC motor controlled by a frequency converter, a beneficial mast structure with a possibility for inclined drilling, hydraulic driven, independent crawlers, and a modern ergonomic cabin to provide a comfortable working condition for the oper- ator. Several automatic features are available as options. The rig has been designed to be operated by one man only. With this modern rig the produc- tion rate can be increased and production cost kept on a low level.

Jan 1, 1989

By C Glassock, P Tilyard, T Sandeman

Computer simulation is a well accepted tool for modelling the behaviour of large and complex operating systems. It is a particularly useful technique in complex operations where there are multiple interactions between the inputs and outputs of various unit operations. It can be utilised during the early stages of a project as part of the business case definition phase or the early engineering phases, or alternatively to help understand the various options available in an upgrade or expansion. With the design of a new processing plant to handle a different ore type at Lihir Gold Limited (Lihir), there was concern that the existing conveying system could separately handle the increased tonnages. A simulation model was constructed which allowed Lihir to examine the impact on the conveying system of the new process plant, as well as investigate the effect of different trucking options. As is often the case, once the simulation model was built, further understanding of the downstream bottlenecks was able to be investigated, including the sizing of critical equipment.

Jan 1, 2006