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By J Gould, T Elkington

Mine operation strategies are commonly optimised with a net present value (NPV) maximisation objective. There are well known properties of a typical mining project optimised for NPV, including high production rates and declining cut-off grade schedules. In practice, however, frequently there are operations that diverge from such NPV-maximising properties. Although a range of reasons for this can be at play, one possible explanation is that operators intuitively adjust their strategies to compensate for the flaws inherent to NPV maximisation. In particular, NPV analysis does not reflect the benefits of managerial flexibility inherent in a mining plan. Real options valuation (ROV) is an alternative approach that addresses this issue. We compare the properties of NPV and ROV optimisation solutions generated for the same scenario. Our simple case study demonstrates that the presence of real operating options in the optimisation model not only entails increased project value as expected, but also tends to encourage lower processing capacity (with lower associated capital cost), higher cut-off grades and greater use of stockpiles.CITATION:Elkington, T and Gould, J, 2012. Real option value optimisation, in Proceedings Project Evaluation 2012 , pp 35-40 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

Grey River Gold Mining Ltd commenced dredging alluvial flats in the Grey River Valley in 1989. Previous drilling indicated over 100 million cubic metres of gravels with some 90 per cent of the gold in the bottom seven metres. The dredge built by Rahco, Spokane, was innovative in a number of aspects but particularly in the fact that a separate ladder with a cutter and pump was used to strip the overburden and a bucketline to mine the gold bearing wash below. Metallurgical studies and exploration were initiated when the project commenced. Leasing and environmental considerations were investigated and action taken. While progress is being made, the operation at this stage is not meeting required production and performance. Main problems have been with the stripping system and wear.

Jan 1, 1990

One of the important directions of further increase of quality and efficiency of control of mining companies and branches is the creation of the operation and development monitoring systems of such facilities. The main purpose of these systems is to provide managers with reliable and timely information on the current state and typical tendencies of operation of the facilities under control. However until the present time no scientific and methodical ground for system monitoring of the mining companies and branches has been created. Therefore, the authors of the report have aimed to assess the current situation with regard to the researches in this field and to do analysis of the most important aspects and ways of solution of the issue under consideration.

Dec 6, 2010

Strategic planning in mining is an important value accretive process. One of the most important aspects during the planning phase is determining the correct mine and plant design. The traditional mine site design (mine, plant, stockpiles, dumps) develops a fixed system for one set of conditions or expected values. A robust design is a fixed system that is designed to deal with a large range of conditions without changing the system design. A flexible design changes the system dynamically in response to changes in uncertainties. It is hypothesised that a robust design generates less value than a flexible design as it fails to realise the value of actively managing the operation. One of the most critical aspects in creating strategic value from a project is embedded in the design of the system. A flexible design has components that allow the design of the system to change over time. An operational plan is proposed as a hybrid of a robust and flexible design. This paper seeks to compare these different design methodologies. An analysis of the same case study is undertaken to compare these approaches, showing an a traditional net present value (NPV) of $1678 M, robust design NPV of $1787 M and an operational plan NPV of $1867 M - an increase of $170 M.

Dec 6, 2010

By R Garzon

For resources projects with healthy net present value (NPV) and low cash flow volatility, conventional discounted cash flow (DCF) analysis will continue to provide the dominant investment decision-making criteria. However, DCF analysis can be biased because it often applies a single risk-adjusted discount rate (RADR) to compare the value of projects with different risk characteristics. Many of the difficulties with DCF modelling arise from analystsÆ inability to determine appropriate risk discounts and to estimate expected spot prices inputs for the commodities produced over the life of the project. Modern asset pricing (MAP) is a very valuable complement to DCF analysis in addressing some of these issues. Most papers dealing with MAP, however, while academically rigorous, tend not to be explicit in terms of practical application of this methodology in routine project evaluation. This paper has the objective of reviewing the MAP methodology and of demystifying its complexity, by providing a simple but realistic step-by-step evaluation of a mining project, comparing its DCF and MAP NPV values. The paper concludes that MAP provides a minimum, risk-adjusted æfloorÆ value, thus representing a valuable complement to any DCF valuation.

Jan 1, 2007

In the context of sustainable development, the Minerals Council of Australia (2010) states that 'investments in minerals projects should be financially profitable, technically appropriate, environmentally sound and socially responsible'. In other words, the business of mining can only be sustained if these criteria are met.   Science and technology plays a major role in all four of these criteria. This paper will present the technology and innovation emerging from the Minerals Down Under National Research Flagship which brings together CSIRO and more than ten of Australia's leading universities to work with industry to drive efficiency, productivity and environmental performance. This work is required if the Australian minerals sector is to thrive and continue to deliver national benefit in the face of increased global competition, declining ore grades, depleting ore deposits, increasingly constrained national resources (land, energy, water and people) and changing societal expectations.   Science and technology to reduce emissions and water use, discover greenfields resources, enable deeper mining operations and transform mineral processing are described. Technology is presented as an enabler of sustainability: a means to this end but not as an end in its own right.

Jun 1, 2010

Particle Size Measurement of TiO2 Nanoparticles in Non-Aqueous Solvent by Interactive Force Apparatus Under an Electric Field

Sep 13, 2010

Study on the Mineral Processing Technology of Low-Grade Refractory Lead-Zinc Oxide Ores Containing Argillaceous and Carbonated Gangue in Yunnan

Sep 13, 2010

Gold mineralisation was first noted in 1983 at the Wapolu Point area of Fergusson Island, Papua New Guinea (PNG) during a follow-up regional reconnaissance program. Subsequent exploration programs through to late 1987 completed 22,147m of costean trench sampling, 553 aircore/RC/diamond core drill holes (16,970.5m total) and metallurgical testwork, predominantly on the Wapolu grid in two mineralised areas.Subsequently in 1988, geostat-istical global and polygonal resources were calculated for the main mineral-ised zones, Didigayagaya and Dagwalala. In 1992, a 'probable total reserve' of 1.9Mf @ 2.4g/t with a 1.2g/t cut-off was calculated for these prospects.

Jan 1, 1994

By Yucheng H, Baogui Y, Wenyong L

High-water rapid-solidifying material, called 'high-water material', is a new material developed by the authors over many years. The material can solidify nine times its volume of water into solid. The material is a fine kind of binder with special properties. The solidifying body of high-water material with water has quite a high early strength. The compressive strength of the material within three days can reach the same strength as conventional Portland in 28 days. One ton of the material can replace three tons of conventional Portland cement as binder. Some important achievements have been made in application of high-water material. In metal mines, based on the material, a new full-tailing cemented backfill technology has been developed. The characteristic of the new technology is that high-water material is used as binder and full tailing or alluvial sand is used as backfill aggregate. Because of the application of the new technology, major technical problems in backfill technology such as classifying of tailing, dewatering, transportation of pulp, low strength of hackfill body. environmental contamination and so on, have been solved.

Jan 1, 1998

Mine planning includes equipment selection as a subprocess because aging equipment must be replaced to maintain or improve productivity levels. The criteria used for decision-making in mine planning and equipment selection are often inextricably linked and inherently contradictory. For example, financial wisdom demands that development, which is an expense and locks up capital, be deferred as far into the future as possible yet on the contrary technical knowledge suggests that developing well ahead of stoping is practically desirable because it generates additional geological information required to improve planning of the unmined portion of the orebody and create better operating flexibility. Consequently, mine planning professionals have to delicately balance all decision criteria when executing mine planning in order to achieve optimal mineral extraction or when selecting equipment, so that capital is optimally deployed. These two processes can therefore be characterised as belonging to the multi-criteria decision analysis (MCDA) type of problems. MCDA problems are alternatively referred to as multiple attribute decision-making (MADM) problems and belong to a broader group of problems called multi-criteria decision-making (MCDM). There is now a gradual recognition and application of MCDA techniques in the minerals industry. This paper explores the theory, current and potential application of these techniques in decision-making in the minerals industry.

Dec 6, 2010

By M Foster

The new environmental legislation of 1986 was left incomplete and to date remains so. The 'missing' process by which environmental consideration should be applied was never embodied in law and has predisposition to a wide interpretation. The Resource Statutes which govern land use and development place demands on the environmental process without that definition. The Resource Statutes are themselves under review by Government. There is a new Government Department of Conservation. It is still in its early days and facing a challenge to compose its role as a steward over large tracts of land holding significant marketable resources, animal, vegetable, mineral, and abstract. It has also taken over numerous consent and advocacy roles in legislation beyond its own empowering Act. Enter the mining company, anxious if not able to get an easy passage for consents to prospect and mine, then at least to have a clear path to tread to get there, within a fixed time period. Whichever options appear available to process environmental approvals, public participation is that being favoured most by the regulatory bodies. Where a public notification of consent applications is mandatory, public participation should lead to the fastest track available.

Jan 1, 1988

Change is inevitable but learning from change is an option. Willingness to learn is one of the first lessons that a leader must learn. Get comfortable and get left behind. I propose to outline the main social changes which are taking place and their impact on the Minerals Industry. Also the changing way we do business and what are the skills needed to manage that change and diversity. How are Associations and Institutes responding to this ever changing environment? More specifically, what is my Vision for the Institute to assist professionals to achieve greater and continuing professional excellence in their chosen professions?

Jan 1, 2000

By D Kilkenny

This paper discusses the use of a mechanised shaft sinking machine Herrenknecht Vertical Shaft Sinking Machine (VSM) – to conduct the 93 m presink for the Wira Hoisting Shaft at the Prominent Hill Mine in South Australia. This technology has been widely used in the global construction industry, however, this was the first time it had been used in Australia and the second time in a mining application. The non-entry shaft sinking system eliminates risks associated with a traditional manual method and allows all shaft construction operation to take place from surface. The geology in the upper 100 m at the Prominent Hill mine is conducive to mechanical excavation, with expected rock strengths below 130 MPa. This enabled an alternative shaft construction methodology to be considered. The Herrenknecht VSM system was selected due to its extensive work history and demonstrated performance in similar ground conditions. In collaboration with the operations and design team, the shaft collar and surface configuration were modified to suit the requirements of the VSM, additional equipment, and loading jacks that support the pre-cast lining. Dedicated concrete moulds were designed in Germany and built in Italy. The concrete segments were cast in Adelaide and road freighted to site. This paper outlines each stage of the presink – refurbishment, transportation, logistics, establishment, operation and demobilisation. Selecting this shaft presink excavation methodology, delivered through positive collaboration and communication despite some challenges, shows the benefit to the mining industry of applying new technology and innovation to improve safety and productivity.

Mar 29, 2023

Recovery of Rhenium from Mineral Raw Materials of Kazakhstan

Sep 13, 2010

By C E. J de Ronde

Most of the world's economically significant volcanogenic massive sulphide (VSM) deposits are considered to have formed in submarine arc and backarc settings. While the Kermadec-Tonga arc is an excellent example of an intra-oceanic arc setting, it remains largely unexplored in terms of submarine mineral resources. More than half of this arc (~1400 km of the >2500-km-long feature) lies within the EEZ of New Zealand, where it is defined by at least one sub-aerial and 33 submarine volcanoes. The NZAPLUME (New Zealand American PLUme Mapping Expedition) cruise of March 1999 provided a systematic assessment ofhydrothermal activity on the southernmost 13 submarine volcanoes along the southern Kermadec arc. Using prospecting techniques based on the physical and chemical detection of hydrothermal plumes, we discovered that more than half (7 of 13) of the southern Kermadec volcanoes host one or more active hydrothermal systems at depths ranging between <200 to 1800 m. Chemical results show that the fluids discharged are compositionally diverse among volcanoes and between sites at a single volcano. Plumes over more than half of the volcanoes are gas-rich (He, CO2, H2S) relative to mid-ocean-ridge (MOR) plumes. In addition, most sites are highly enriched in Fe, yielding Fe/Mn values that far exceed those for MORs. One interpretation consistent with these observations is compositional overprinting by addition of magmatic fluids, which are typically highly enriched in gaseous and ionic components. Regardless of the source, it is clear that the ligands (HS-, Cl-) required to efficiently transport base (e.g. Cu, Zn, Pb) and precious (e.g. Au, Ag) metals to the seafloor are abundant in Kermadec arc fluids. We conclude that modem analogs of VMS deposits are likely forming at multiple sites along the Kermadec arc and within the EEZ of New Zealand.

Jan 1, 2000

By K Ehrig, C Lower, V Liebezeit, M Smith, E Macmillan

"Minerals, minerals, minerals. Elements occur in the earth as minerals. If local physical, chemical and structural conditions are conducive to concentrating these minerals to sufficiently high abundances in the earth’s crust, a mineral deposit will form. If technology is available to extract metals from the minerals economically, then you have a mineral resource that will be mined and processed. Determining which minerals are present and quantifying their abundances, textural characteristics (grain size and shape) and how they are intergrown with each other is the realm of the mineralogist. Geologists use this mineralogical data to understand how the mineral deposit formed, how to find high-grade zones within the deposit and where to find other mineral deposits. Metallurgists use this data to design, operate and optimise processing facilities to extract metals from the minerals. The types, quantity and precision/resolution of the mineralogical data required by geologists and metallurgists are different, but are not mutually exclusive of each other. Fortunately, measurement technology is available that is relatively rapid, high volume and low cost, thus enabling ore and gangue mineral characterisation at a historically unprecedented scale of a mineral resource.CITATION:Ehrig, K, Liebezeit, V, Smith, M, Macmillan, E and Lower, C, 2014. Geologists and the value chain – how material characterisation by modern mineralogy can optimise design and operation of processing facilities, in Proceedings Ninth International Mining Geology Conference 2014, pp 5–14 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Aug 18, 2014

By A Bird

Gravity gold circuits have an important part in reducing operating costs and maximising recovery in modern gold plants where coarse gold is present in the ore body. The design and selection of equipment has a vital part in the overall effectiveness of the gravity gold circuit. There are a number of associated factors that need to be taken into consideration when selecting the most suitable equipment for gravity gold circuits including occupational health and safety, security and labour requirements. This paper is a case study that outlines the validation behind the design, selection of equipment and subsequent benefits of the recent upgrade of the gravity circuit at the Marvel Loch gold mine with the main component to the upgrade being the installation of a Consep Acacia Reactor. Since the upgrade there has been a significant increase in gravity recovery, which has reduced the amount of gold reporting to the leaching circuit therefore reducing reagent consumption and overall operating costs. There has been an increase in overall gold recovery and therefore increased gold production. The benefits to occupational health and safety include the removal of toxic gases being released in the gold room during the previous practice of gold concentrate calcination and the removal of the arsenic and nickel from the gold doré, which poses a risk during refining. Manual handling and security has improved as there is no physical contact with gold concentrates during the automated process using the Acacia reactor. The total time for gold room personnel working in the gold room has also reduced from around six hours per day to less than one hour per day.With the continuing development of low grade gold deposits, there will be an increase in demand for low capital, high recovery gravity gold circuits that can significantly increase overall production while reducing operating costs.

Aug 8, 2011

CHAPTER 1 - GENERALIn the introduction to this chapter a general account is given of the growth of the mining industry in Western Australia from J88G, when the output of gold for the whole State was only £1148, to 1908, when: the output had risen to £6,999,885. In 1903 the output reached £8,770,719.It is quite evident that the discovery of gold in Western Australia was the means of opening up the road to broader industrial expansion, and it is doubted if any other portion of the British Empire more clearly exemplifies the nation-building forces of metalliferous mining than this State.The chapter includes an account of the following situation and history of the field.CHAPTER 2 - GEOLOGYIn this chapter the classification of the rocks of Kalgoorlie, but particularly those on the Golden Mile, is considered. Each rock is described in detail, and microphotos are shown to indicate the most important features in each type. As far as the Golden Mile is concerned, it is held that, notwithstanding the general chemical and more or less dynamical metamorphism which the rocks have suffered, it is possible to divide them into six groups...

Jan 1, 1912

The Dynamics and Thermodynamics of Absorbing Lithium of Ion Sieve Preparing Pollymetallic Nodules

Sep 13, 2010