Search Documents

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. Adu-Acheampong

The Mid-Tennessee Zinc (MTZ) mines, comprised of the Gordonsville, Elmwood, and Cumberland sites, last operated 4 years ago and are undergoing rehabilitation to begin production in 2008. The mines utilize a random room-and-pillar mining method that results in complex ventilation networks. Upon decommissioning, the mechanical ventilation units were removed and disposed of and several shafts sealed. In an effort to re-open the mines and operate in compliance with imminent Mine Safety Health and Administration (MSHA) diesel particulate matter (DPM) regulatory limits of 160TC µg/m3, a new ventilation system was required. The new ventilation system was developed primarily based on the diesel equipment required to meet production. Particular emphasis was placed on the DPM, diesel equipment utilization, main fan sizing, and fan locations to enable the mines to meet MSHA?s ventilation requirements in a cost efficient manner.

Jan 1, 2009

By Met M. E, Worner H. K

During the past two years, a large number of creep tests has been carried out on electrolytic lead, special assay lead and ordinary refined (Port Pirie) lead. Some of these tests have already been reported.1§ In addition, an attempt has been made to estimate the influence of the individual elements present in small traces in Port Pirie lead. The present paper gives the results obtained when small additions are made to "U" lead of the composition shown in Table 1.(which has been used throughout these investigations during the past few years). The additions were silver, antimony, bismuth and zinc. The results of the addition of tellurium have already been communicated. This investigation was intended to run parallel with a similar one using electrolytic lead as a basis and adding one element at a time.Actually, the experiments using "U" lead have got rather ahead of the others. The important point has emerged, however, that the effect of a .given addition may be appreciably influenced by the presence of traces of other elements.In most of these tests, an initial stress of 500lb. per sq. in. has been used. Whilst it is fully appreciated that this stress is higher than those used in practice, it has to be borne in mind that an improvement in creep resistance was *Manuscript received December 11th, 1936.

Jan 1, 1936

At Great Boulder Gold Mines Ltd. a number of attempts were made to remove water soluble copper and iron salts from calcined pyritic concentrates but variou~ problems arose and the methods were abandoned.A method of rapid washing has been developed and although some problems still exist a workable process was established which resulted in substantial savings of reagents used for the cyanidation of calcine.INTRODUCTIONIn the Great Boulder flowsheet crude ore is ground in cyanide solution, then thickened, agitated and subjected to two stage filtering. Secondary filter discharge is pulped with flotation circuit water, gassed with sulphur dioxide to precipitate soluble gold and activate pyrite, and after the addition of copper sulphate and xanthate, the pyrite and tellurides are recovered by flotation. Flotation tailings are thickened and pumped to the disposal area and concentrates are calcined in Edwards roasters. Calcine is washed to remove water soluble copper and iron salts and the washings pumped to the flotation section where the copper is used as an activator. The washed calcine is cyanided and returned to the crude ore circuit via the thickeners. Solution for precipitation in the Merrill Crowe is drawn from the crude ore thickeners.Prior to the introduction of calcine washing the calcine contained 7 lb/ton copper of which approximately 60 per cent was water soluble. It also contained approximately 90 lb/tol'l of water soluble iron salts. Both the copper and...

Jan 1, 1964

Working in thick coal seams presents many problems, included in these is obtaining the maximum recovery of coal under safe working conditions. In order to obtain maximum extraction it is important to understand the behaviour of pillars left for support purposes. However it is not always the practice to maintain pillar stability it is often required to design for pillar failure. The greatest hazard of pillar mining is uncontrolled pillar collapse. Many major and relatively minor collapses of pillar workings have been recorded in the history of mining. Notable among the collapses was that at Coalbrook Colliery in South Africa in 1960 (Bryan et al 1964). This led to recommendations on the design of bard and pillar workings in South Africa. (Salamon 1967) These design recommendations were based on the statistical analysis of stable and unstable pillar workings and introduced the concept of probability of pillar failure and safety factor. On the basis of this study a safety factor of 1.6 was prescribed for production panels in South Africa. A general review of pillar design procedures, reveals that a new phase of reinterpretation and modification is in progress. This takes into account for instance the effect method of working, whether by conventional drilling and blasting or continuous miner, has on coal pillar strength, and the necessity to review the methods for increasing depth of working. Also, as more is being understood about overall rock mass properties and advanced computer modelling techniques become more readily available, the mine planning engineer is faced with numerous approaches to pillar design.

Jan 1, 1989

By M. W. Hildyard

A blast was engineered close to a tunnel in a deep-level mine with the purpose of studying the wave interaction with the tunnel. Numerical modelling of seismic wave propagation was used in both the forward planning and the back-analysis of this experiment. This paper presents the forward analysis. A likely model for a propagating blast was investigated and developed. This model predicts the influence of the velocity of detonation of the blast and the rise-time of the blast on the radiation pattern, and hence on the expected positions of maximum velocity at the tunnel surface. An attempt was made to quantify the parameters of the blast model, using waveform data from two other blast experiments. The blast model caused particle velocities which were an order of magnitude lower than these measured velocities. Large values for blast pressure were required to match the amplitudes of the recorded velocities. An alternative ?effective? source with a similar mechanism but increased diameter was proposed to account for the higher velocities. It was established that distant velocities scale with the square of the borehole diameter. A calibration blast at the experimental site was also modelled. Agreement in the waveforms was not sufficient for conclusive statements to be made about the validity of the source model. However, the modelled waveforms show an encouraging correspondence with some measured waveforms. This gave confidence that the model could be used to examine wave propagation around the tunnel, and allowed a scaled source to be developed for forward analysis of the main experiment.

Jan 1, 2001

By A. McGarr

The shear stress t that can be sustained by the rock mass in the environs of a mining-induced earthquake controls the near-fault peak ground velocity v of that event according to v=0.25(ß/G)t, where ß is the shear wave speed and G is the modulus of rigidity. To estimate t at mining depths, I review the results of four studies involving Witwatersrand tremors that relate to the bulk shear strength. The first and most general analysis uses the common assumptions that the seismogenic crust is pervasively faulted, has hydrostatic pore pressure before mining, and an extensional stress state that is close to failure. Mining operations reduce the pore pressure to zero within the mine and redistribute the stresses such that, in localized regions, the state of stress is again at the point of failure. Laboratory friction experiments can be used to estimate t in the zero-pore-pressure regime. Second, model calculations of states of stress in the vicinity of mining at about 3 km depth indicated the shear stress available to cause faulting near the centre of a distribution of induced earthquakes. Third, laboratory experiments combined with microscopic analyses of fault gouge from the rupture zone of a mining-induced event provided an estimate of the average shear stress acting on the fault to cause this earthquake at a depth of 2 km. Fourth, moment tensors determined for mining-induced earthquakes usually show substantial implosive components, from which it is straightforward to estimate t. These four different analyses yield estimates of t that fall in the range 30to 61 MPa which implies that near-fault particle velocities could be as high as about 1.5 m/s. To the extent that the causative fault ruptures previously intact rock, both t and v, in localized regions, could be several times higher than 61 MPa and 1.5 m/s.

Jan 1, 2002

By Gordon DM

Tyres account for 25-30 per cent of the operating costs of large capacity haul units as used in open-cut mines.Tyre operating costs can be substantially reduced and often contained in real terms by applying knowledge that is now available.This paper describes certain specific advances in tyre management, namely batching, bias adjustment, cumulative plotting and the so-called "pressure-temperature" system of tyre pressure control, originated on the Mt Newman Mining Company's Newman minesite, and discusses the contribution that each has made to improving tyre management and reducing costs.

Jan 1, 1983

Advances in Optical Image Analysis and Textural Classification of Iron Ore Fines

Sep 13, 2010

By B. Lueger, D. Shen, M. Sedighy, R. Rand, R. Saleh, J. Cheung, M. Rifai, I. Khan, W. Sauri, D. Setianto

The world’s first active power demand stabilization system for a 3-electrode electric arc smelting furnace was commissioned at PT Vale Indonesia in December 2012 on Furnace No. 2 using an SPLC (Smart Predictive Line Controller). The SPLC technology in combination with the Furnace No. 2 rebuild and other upgrades has enabled PT Vale to increase the electrical input to the furnace by up to 20% on a stable and sustainable basis by eliminating peak powers that overload and trip out the electrical equipment, and by reducing power unbalances. The SPLC technology maintains smooth arc power using a continuously variable thyristor controlled series reactor. The SPLC compensates variations in the furnace arc with predictive changes in the circuit reactance at a speed of up to 60 times a second. The system started up quickly and has been shown to be easy to operate and maintain by PT Vale. PT Vale’s Operations Team has been testing the new system at set points of up to 90 MW on the newly re-built Furnace No. 2. Over the last 12 months, the throughput of Line 2 has increased by approximately 10% on an annual average; however, debottlenecking in other design areas of the operation is required in order to achieve 90MW operation on a sustainable basis. This outstanding success results from a combination of the furnace and other upgrades, the SPLC active power stabilization, and the skill of PT Vale in quickly adopting new technologies and maximizing the combined benefits of each technology in their operation.

Jan 1, 2014

By Benkendorff P. N

Cement production in Australia approximates 6.5 million tonnes per year. Cement clinker is sourced from 15 plants which operate 28 kilns. Cement grinding is conducted at 14 of the clinker plants plus 7 grinding plants. Average annual capacity per kiln or plant is lower than in many overseas countries, but kilns introduced since 1970's have been of larger size more in keeping with size trends overseas, although still smaller than the large units overseas. Substantial economies in capital and labour costs can be achieved in large production units, particularly with dry process kilns using precalcination techniques in which part of the fuel is introduced in the static preheater section ahead of the kiln while the balance is added to the kiln in a conventional manner. Precalcination techniques have been introduced to the Australian cement industry but as cement transport costs form a major part of supplying diverse market areas, the size of kilns is likely to remain less than maximum owing to balance with distribution costs. The cement industry uses significant amounts of thermal and electrical energy which can be minimised by proper selection of equipment and technology. Labour costs are also significant and can be contained by automation and computer control of the process.

Jan 1, 1989

"The measurement of error in assays collected as part of a mineral exploration program or mining operation historically has been undertaken in a variety of ways. Different parameters have been used to describe the magnitude of relative error, and each of these parameters is related to the standard measure of relative error, the coefficient of variation. Calculation of the coefficient of variation can be undertaken in a variety of ways; however, only one produces unbiased estimates of measurement error: the root mean square coefficient of variation calculated from the individual coefficients of variation.Thompson and Howarth’s error analysis approach has also been used to describe measurement error. However, because this approach utilizes a regression line to describe error, it provides a substantially different measure of error than the root mean square coefficient of variation. Furthermore, because regression is used, Thompson and Howarth’s results should only be used for estimating error in individual samples, and not for describing the average error in a data set. As a result, Thompson and Howarth’s results should not be used to determine the magnitudes of component errors introduced during geochemical sampling, preparation, and analysis.Finally, the standard error on the coefficient of variation is derived, and it is shown that very poor estimates of relative error are obtained from duplicate data. As a result, geoscientists seeking to determine the average relative error in a data set should use a very large number of duplicate samples to make this estimate, particularly if the average relative error is large."

Jan 1, 2007

By McNicol M. D

Petroleum exploration in onshore Gippsland was directed in the 1950s and 1960s towards plays in the basal Latrobe and Strzelecki Groups, but these became forgotten in the 1970s with the Latrobe play discoveries offshore. The principal explorationists of the time were Woodside Oil and Arco Ltd, who then departed the scene after drilling some 18 wells without major success. In the late-1980s successful hydrocarbon finds in equivalent age Otway Group sediments in the Otway Basin were made and in early 1990 Tyers Petroleum began investigations into Strzelecki Group prospects as applied to the onshore Gippsland Basin. Some 18 anticlines have been mapped, based on shallower coal exploration drilling in the Latrobe Group, which from seismic and gravity evidence are believed to unconformably overlie similar anticlinal structures in the underlying Strzelecki Group. Strzelecki targets of interest within drilling depth are the basal Tyers Conglomerate/Rintouls Creek Sandstone Formations which outcrop in the north of the Latrobe Valley and are analogous to the Pretty Hill Sandstone in the Otway Basin. In addition, intra-Strzelecki Group targets similar to Heathfield and Windermere Sandstone Members are also considered to be present. Good source rocks are abundant including coal seams and carbonaceous sediments of Neocomian and Jurassic age, which lie within the oil window. Seal is provided by the overlying Aptian-Albian aged volcanogenic sediments. The Tyers/Rintouls sandstones - a target in the Woodside/Arco wells, with two exceptions, were not reached. Encouraging intra-Strzelecki shows were reported in many of the wells. Basal and intra-Strzelecki porous quartzose sandstones remain one of the few untested plays left in the Gippsland Basin and, in the onshore, merit extra attention as they he within the oil window at economically drillable depths.

Jan 1, 1992

By Fernando Cabanillas, Wilder Sánchez

En este trabajo técnico se presentan los principales proyectos y actividades relacionadas al manejo de agua que se han realizado dentro de Minera Yanacocha, en la búsqueda de un manejo óptimo de este recurso natural, que mantenga la calidad y cantidad adecuada en los puntos de vertimiento. Se confirma que la adecuada gestión del agua y los sistemas de almacenamiento permiten mantener una descarga constante todo el año e inclusive soportar años muy secos, en beneficio de la población. Asimismo, el trabajo demuestra que la minería en la parte alta de la cuenca es compatible y beneficia el desarrollo de industrias y actividades como la agricultura, ganadería, acuicultura, turismo, entre otras que acontecen dentro del mismo entorno.

Sep 20, 2019

By S Winter, G Klenowski

During longwall mining in the Bowen Basin, open tension cracks formed by overburden subsidence occur to a height of about 175 m above the mining horizon. Within this zone, water in aquifers or inundated workings will flow into the mine.At the Oaky Creek mines Aquila seam, open cut pits containing pit water overlie German Creek seam longwall panels at a height of about 105 m. The highly saline water is classified as contaminated and cannot be discharged off-site. Because alternative water storage facilities were not available, innovative water management solutions were needed to allow longwall mining to proceed without underground flooding.Computer modelling and underground inflow measurements have been completed to accurately determine inflow rates into longwall mines from overlying water sources at increasing overburden heights. Research work has also included determining cost-effective blanket treatment of final voids and reshaping spoil piles to minimise downward seepage.Ponded water overlying the Aquila low, Grasstree south and A6 pits required remedial works prior to longwall undermining to prevent flooding. In the Aquila low pit it was necessary to partition the pit and remove water overlying longwall 32. Two in-pit bridges were constructed by dozing and track compacting low wall spoil. The final void above the longwall panel was kept dry during undermining. Maximum recorded underground inflow rate was 30.0 L/s.The Grasstree south pit final void, part of the ramp and much of the spoil piles were inundated prior to undermining of 308 panel. A bridge and blanket were required to prevent ponding above the longwall. Maximum recorded inflow during undermining was 23.2 L/s.The pit A6 south final void, which contained dumped, saturated rejects and inundated highwall mining entries was undermined by longwall 36 at the Oaky No 1 underground mine. Because mapping of highwall entries was not available, the maximum calculated inflow rate of 73.0 L/s was based on all design entries being fully inundated. The actual inflow rate during longwall mining ranged up to 20.0 L/s.Water management improvements that have been implemented include greater use of contaminated pit water to wash coal, use of evaporation fans, and installation of a 6 ML/day reverse osmosis plant for water purification.CITATION:Klenowski, G and Winter, S, 2017. Inflows into longwall mines from inundated overlying workings, in Proceedings 13th AusIMM Underground Operators’ Conference 2017, pp 183–190 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 16, 2017

The following data cover a phase in the systematic testing of gold deposits which does not appear to have been specificalIy investigated.In boring either secondary or primary deposits, gold, by virtue of its high specific gravity, will tend to migrate downward, below the driving shoe or bit, and thus cause misinterpretation of value unless final recovery Can be effected after the hole has been bottomed.Unlike fortuitous and non-recurrent errors, due to, say, running ground, "pile driving" or rock fractures, systematic error due to migration may be unpredict.able from operating data alone, and, therefore, result in serious miscalculation of the weighted average upon which the engineer's recommendation is based.Applied to diamond drilling, loss by downward migration appears to have been largely responsible for distrust of sludge assays in the past. On the other hand, although modern practice rightly trends towards an integration of both core and sludge samples in borehole valuation, the possibility of systematic loss must be investigated when using combination graphs such as those of Longyear, Moehlman and WeIler. If the sludge value is incorrect the combination graphs will serve solely to stultify the core valuation.It appears to be axiomatic that: 1. With full core, sludge assays are of minor import.2. With recovery above 90%, differentjal grinding, of the high grade sections may have occurred, and this c!ln be corrected only by the us.e of cOJ;rect sludge valuation.3. With core recovery less than, say, 70%, no accurate valuation is possible without integrating the sludge assay.4. With less than, say, 10% core recovery, the sludge assay affords the sole basis of evaluating a borehole which may have cost many hundreds of pounds.The conditions demanded for reliable sludge valuation have, in practice, been restricted to high quantitative recovery and return of nearly 90% of the drill water. It is submitted, however, that the following additional knowledge is required:1. The nature of gold distribution in the ore.2. The lifting power of the return water column, which can be gauged by the maximum quartz particle, provided that the degree of "hindrance" can be determined.3. That all gold has been cleared from the bottom of the borehole immediately after it has passed through the orebody.The three cases discussed hereunder are offered not only as proof of the thesis, but also in the hope of promoting discussion on the interpretation of borehole values and on methods for saving free gold in the sludge. The fact that two of them cover alluvial boringand the third diamond drilling has resulted in this attempt to reduce the behaviour of free gold to a basis common to all types of boring.

Jan 1, 1950

Within CRLÆs lifetime there have been a number of products that have proceeded through their life cycles. In each case market forces and technological advances have forced the cessation of the product. The company has then had to develop alternative outlets for its copper. Sometimes it has produced a similar product to fill the same market. In other cases the extra copper is sold as cathode. Today, CRL produces no semi-fabricated copper products and all cathode is sold. More recently, CRL has ventured into the sale of technology and manufacture of cathode motherplates. This area, whilst it is not what had been a traditional area of core business, has been found to be profitable.

Jan 1, 1998

By M. J. Lawrence

Independent natural resource Valuers are an essential link between miners and mineral explorers on the one hand and the finance industry on the other. Investors (and regulators) expect the mining and financial industries to be vigilant against the use of inappropriate methodology or use of illogical steps within the chosen valuation method. The Australian Corporations Law generally requires an Independent Expert Report to support mergers and takeovers (as well as for capital raising activities). The introduction of the VALMIN Code (1998) by The Australasian Institute of Mining as Metallurgy, has meant that such Reports, when prepared in compliance with it, are now much more comprehensible and reliable than before. This is because the key requirements of the Code are for transparency and materiality in the Technical Assessment and Valuation Reports prepared in connection with the transaction involved. Transparency is particularly important because it allows the reader to identify and understand the assumptions made to derive a value and to then form a view as to the reasonableness of the result. Even though many elements of resource asset valuation practice are undeniably subjective, there must be some basis of objective rationality to it. Where the reasoning is patently illogical or the inputs are chosen to achieve a particular result, the estimated value must be viewed as virtually worthless. Experience, qualifications, competence and repute are the hallmarks of a professional technical auditor and valuer.

Jan 1, 2000

By David Clarry

?The issue ?reduction requirement ?Planning abatement steps ?Energy Management & Energy Efficiency ?Energy Recovery / Utilization ?Alternative Energy Professional Services Overview ?Capital Projects and Construction ?Project Development and Planning ?Engineering ?Project management ?Construction management ?Consulting ?Process ?Business ?Environmental ?Technology ?Operational Services ?In-house engineering services for operations

May 1, 2009

As the theme of this conference is æRediscover OtagoÆ it would seem appropriate to revisit the era of the gold rushes and subsequent mining industry which rapidly advanced settlement and economic prosperity for Otago, and left permanent reminders in the form of historic mining sites, many of which are now encompassed within the Otago Goldfields Park. I have been invited to give a paper at this conference on the subject of æHistoric Goldfields of Central OtagoÆ. As well as having a working involvement with historic areas through my employment with the Department of Conservation, I have a personal interest in the early goldmining industry of Central Otago as my grandfather came out from Scotland in the 1890s to help construct gold dredges on the Molyneux. My grandfather made headlines in the local paper in 1920 when he believed he saw a New Zealand otter at Island Block near Beaumont - but that's another conservation trail that I will not pursue any further today! For this paper I intend to divide my time to cover the following topics. Firstly, I would like to sketch a mental picture of the characteristics that make up the Central Otago landscape, and the general perception that early miners must have had when viewing this foreign land. Then I would like to briefly discuss the changes and the consequences in the early gold rush to Central. Finally, I would like+ to discuss the establishment of the Otago Goldfields Park, which I will illustrate with several slides.

Jan 1, 1992