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By J L. Macdonald, G S. King

"The development of a predictive geometallurgical model is a multidisciplinary and iterative task that involves both discovery and integration aspects. In this paper, the authors discuss the concepts of geometallurgical modelling in terms of the underlying relationships that are used to connect geology, metallurgy and economic value, and how the early-stage preparation of a spatial geometallurgical model enhances project value and provides a sound basis for future studies and test work programs.Hot Chili’s (copper-gold-molybdenum) Productora Project, which is located in northern Chile, is a porphyry-copper style deposit that can be exploited using open pit mining and preparation of a saleable concentrate from fresh ore, as well as heap leaching, solvent extraction and electrowinning (SX-EW) extraction of copper from oxide ores. To enhance project value in the Productora prefeasibility study (PFS), Hot Chili developed a geometallurgical model that was used to predict the process responses of both sulfide and oxide ores. The Productora model incorporates test results from mineralogical, metallurgical and comminution testing, as well as other studies completed on a suite of samples collected from the many geological domains of the deposit.Using Bond Work Index and Abrasion Index proxies in the geometallurgical model, Hot Chili estimated the variability of sulfide ore throughput and comminution costs. Heap leach acid consumption in oxide ore was estimated from drill hole calcium concentrations. The model was then used in mine scheduling to identify high and low throughput or high and low acid ore zones so that the processing of these zones could be advanced or deferred to improve net present value (NPV). Additionally, the cost benefits of preparing an early-stage geometallurgy model were quantified through a comparison to a conventional model that was based on test work averages.CITATION:King, G S and Macdonald, J L, 2016. The Business Case for Early-stage Implementation of Geometallurgy– an Example from the Productora Cu-Mo-Au Deposit, Chile, in Proceedings The Third AusIMM International Geometallurgy Conference (GeoMet) 2016, pp 125–134 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 15, 2016

Banks' focus in using cash flow methods can differ markedly from that of equity investors. This paper attempts to explain and describe bankers' approach by: ò outlining the fundamental difference between banks' and investors' risk / return profiles. ò describing lenders' consequent use of cash flow methods in mineral valuation. areas. explaining lenders' specific treatment of key risk Fundamental to understanding banks' appraisal of mineral projects is the appreciation that lenders have a basically different risk profile and outlook from those familiar to equity investors. Lenders do not normally participate in any project upside. The economics of lending dictate that banks can only accommodate a low probability of loan default and consequently banks' principal focus in mineral ""valuation"" is ensuring an acceptably comfortable probability of debt repayment. A simple conceptual explanation of lenders' risk / return position is outlined.

Jan 1, 1994

DCF Valuations are very important to individuals and companies involved in the mining industry. Such valuations are critical to investment decisions in relation to new and existing projects. In particular they provide fundamental information to shareholders in the event of a capital raising or takeover and to financiers supporting mining companies and projects. Also, DCF Valuations are often used to support asset carrying values in the financial statements of mining companies. This paper presents a Chartered Accountant's (CA's) perspective on the main issues to be considered in preparing, analysing and relying upon DCF methods in mineral valuations and provides some practical examples relating to key issues. The paper makes the important point that DCF methods involve making assumptions about future events and circumstances that inherently contain uncertainty which results in a valuation prepared on a DCF basis providing a range of values that are not perfect or accurate. In order that DCF valuations provide meaningful information the underlying methodology used and assumptions made must be consistent, sound and well supported. Credibility of those involved in preparing mineral valuations is vital and this paper supports the adoption of sound practices by all concerned.

Jan 1, 1994

Vatukoula is credited with the second largest population in the Colony of Fiji. Within an area comprising 550 acres are living approximately 4,500 people. Of these, about 1,150 Fijians, 90 Rotumans, 90 Europeans, 180 Part-Europeans, 180 Indians and 30 Chinese and miscellaneous Pacific islanders are employees of the Associated Mining Companies.The remainder is made up of employees dependants with a small minority of tradespeople and Government servants, such as storekeepers, school teachers, police and post office officials.To appreciate fully the work involved in the administration of this unusual community it is necessary firstly to know something about the various types of people which compose it.The FijiansAlthough the Fijians are of Melanesian stock their physical characteristics indicate a Polynesian strain. Natives from all provinces in the Colony are to be found in Vatukoula and their varied types point to this MelanesianPolynesian intermixture. For example, there are people from Lau** and Kadavu who are tall and well built with good features and comparatively fair skins contrasting with the dark, broad featured and generally short people of the hill tribes of Ra and the coastal tribes of Bua.The Fijians, particularly the older people, are noted for their dignity, courtesy and hospitality. The young Fijians of the present generation, large numbers of whom are...

Jan 1, 1953

By A M. Ebbels, D Pratt

The current commodities super-cycle has seen an explosion in the number of mining projects demanding human resources throughout the world. The demand for key personnel currently far outweighs the international talent pool and will take several years to subside. A highly effective project team can be the difference between a successful project and a bad public relations exercise. Building an effective team and retaining the team members has become one of the major influencing factors for successful project development in the mining industry in the last decade.Increasingly, international teams are being established combining skill sets, subject matter experts, unique previous experiences and diverse cultures to deliver mining projects all around the world.This paper explores the characteristics of a highly effective team, the communication and geographic challenges and some potential pitfalls which influence the ability to form effective teams within the mining industry.CITATION:Ebbels, A M and Pratt, D, 2012. A great project team - Bringing together location and culture, in Proceedings Project Evaluation 2012 , pp 197-202 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

To form a true picture of the early history of Queensland, we must think of white settlement advancing like an incoming tide, wave by wave; each wave lapping ahead a little further than the last. The credit for opening up the country belongs to a large number of pioneers, each of whom pushed out just a little further than his predecessors.Contrary to what one might expect, Rockhampton district was settled by overlanders from the south and not from the ocean side. When the Archers, the pioneers of the Rockhampton district, reached Gracemere in 1853, settlement had already made its way down the valley of the Dawson River; for it was from Leith Hay's station at Rannes (a few miles below Mount Morgan) that the Archers advanced northward into the unknown, to find the river that the explorer, Ludwig Leichhardt, had told them must enter the sea somewhere near the Tropic of Capricorn.The Archers travelled northward from Rannes up the valley of the Dee, coming out on the edge of the Razorback Range not very far from the point at which the Dawson Valley Highway drops over into Poison Creek. (Their diary records the bearings from a lookout point to various peaks around Rockhampton, and to-day, by plotting back from these peaks, we can determine the exact spot at which they descended on to the Fitzroy Flats.) We can be certain, then, that they must have been the first white men to set eyes on Mount Morgan; though to them it would have seemed to be nothing more than an insignificant hill...

Jan 1, 1939

By Harper F

This paper outlines the authors' views of the methodologies which can be employed to value mineral properties at different stages of development for the purposes of project financing, mergers and public floats. This paper discusses the key issues in Discounted Cash Flow (DCF) analysis including the importance of data verification and the shortcomings in DCF analysis. Stockmarket valuation measures and valuation methodology for exploration and pre development projects are examined through examples and pitfalls are identified. The use of valuations in corporate transactions and their strategic value is also discussed.

Jan 1, 1994

By T R. Stacey

South Africa has a long history of rockbursts, some 100 years. During this time much research and many developments have taken place in the country to limit the occurrence of rockbursts, and to mitigate their effects. In this paper I shall present a personal view of what I consider to be important achievements, and contributions made. Some of these are: planning of stope layouts, and the use of strike barrier pillars; recognition of energy as a key factor, the use of the energy release rate ERR as a layout planning criterion, and development of MINSIM for calculation of ERR and stope planning; sequential grid stope layouts; use of backfill for stope support; and, development yielding support elements, and dynamic testing of stope and tunnel supports. The record shows the establishment of a rock engineering research powerhouse over a 40 to 50 year period and, unfortunately, the complete breakdown of this capability in the subsequent 10 years. CITATION:Stacey, T R, 2018. A personal review of South African rockburst research, experience and lessons learnt, in Proceedings The Fourth Australasian Ground Control in Mining Conference (AusRock), pp 5–16 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 30, 2018

By D M. Silva, J C. Alves

According to the literature, material transportation represents 50 per cent of the operating costs for an open pit mine. In this context, this paper proposes a multistage approach for dynamic truck dispatching in real open pit mine environments, implemented in the commercial package SmartMine®, marketed by Devex SA. The first stage of this approach defines the optimal number of trucks that maximises the tonnage production by means of a robust linear programming model, which considers the operational constraints of a real mining process. The second stage uses a dynamic dispatching heuristic joining computational simulation and multicriterion optimisation techniques for decision making for truck dispatching. Another relevant contribution of this work is the publication of realistic instances collected from a dispatching system managing an iron mine, containing information about the hauling and loading fleet, the equipment situation when the working shift starts, cycle times, the time line of special occurrences (such as equipment stoppages and loading equipment reallocation in order to satisfy the mine planning) and the tonnage produced. These instances were generated with the purpose of submitting the method to the test of a real situation that considers the uncertainties existing in the process studied. The proposed approach was validated by means of a discrete event simulation model applied to the previously designated instances. Using this multistage approach as a mechanism for dispatch decision making, it is shown that the haulage fleet productivity increased when compared with the real values reported from the instances. These results are important because they show that the proposed approach generates efficient dispatch decisions for trucks operating in a real environment, reducing operating costs, increasing production and making the mine more competitive.

Sep 26, 2011

By C T. Portelli

Belt conveyor transfers are the most likely location for high wear rates and failures. Belt transfers are necessary to change the direction of conveyed material and will remain a part of belt conveyor systems into the future. Burden being accelerated due to fall and changes in direction from one system to the next, prevents steady state flow which introduces component fatigue. The conveyor belt is considered the greatest cost item over the life of a belt conveyor system and consumes considerable downtime to replace, therefore a financial incentive exists to preserve this high-cost item. Other issues created at the transfer include health risks of uncontained dust and product losses due to spillage. Additional consideration to support the belt is one way to improve the life of components and contain dust within the transfer chute. The humble impact cradle/bed has changed little over the years whilst conveyor systems have achieved ever greater flow rates. Further development of the impact cradle is an opportunity to reduce maintenance costs and increase uptime. The peak technology on the market for conventional impact belt support is the dynamic impact cradle, which ensures the belt support area under the chute allows for some dynamic travel, whilst also maintaining a consistent skirt board area. The impact energy at a transfer when installed with Kinder Australia’s dynamic impact belt support system was measured to further understand the forces involved and how they compare with static belt support systems. Adding further dynamic capacity to the load zone has been shown to increase belt life by at least 30 per cent. Other components also benefit from reducing impact energy in the transfer and the incorporation of polyurethane bushes at roller supports has been employed further increase roller and frame life. Kinder Australia has developed a unique and innovative range of belt support technologies that further promote dynamic travel whilst maintaining a consistent skirt board area without a significant increase in belt-friction tension. This technology combines slider rails with rollers that can absorb impact independently within the support system and/or utilising exotic slider materials to overcome high belt speeds and/or system capacities. Kinder Australia has a vast library of documented case studies and application data to ensure the future systems being offered will survive, provide better chute sealing and protect the conveyor belt.

Sep 18, 2023

Estimation of operating costs in the nickel production industry requires a detailed analysis of material flows from mine to smelter to refinery. Despite the small number of nickel producers compared to other base metals, the existence of two very different ore types (sulphide and laterite) and a wide variety of mining and processing technologies make the identification of these flows of critical importance if an accurate global picture is to be obtained. Smelting and refining processes in nickel metallurgy have evolved with a high degree of adaptation to specific operating conditions in different locations. Overall costs are calculated by combining individual cost elements for each unit in production chains from mine to saleable metal product. The average cost of western world primary nickel production in 1995 was US$2.07/lb ($4560/tonne). Average operating costs remained virtually unchanged in the three years to 1995 after an 8.5 per cent fall in 1993, but a 3.9 per cent increase to $2.15/lb is expected for 1996. A major factor in this rise results from the lower prices of copper and cobalt this year, reducing the by-product credits available to major producers.

Jan 1, 1996

The long-term outlook Tor Australla's traditional mining products is for flat demand and continuing low prices. This has come about because of three far-reaching changes since earlier boom days: 1. Continuing declines in intensity of usage of basic mine products; 2. The failure of newer western and third world developing countries to realise growth expectations; and 3. Continued production pressure from third world countries (and first-world primary producers) in an effort to earn foreign exchange and rectify trade balances. These trends have led to a general situation of excess supply and weak demand. In this environment, the prerequisites for survival in the mining sector are first-class mines, modern and efficient production methods, low unit costs, aggressive marketing, and products with reasonable operating margins. Many of Australia's mines meet these prerequisites. Following the A$ depreciation and widespread unit cost reductions, most of these mines will be moderately profitable at current depressed commodity prices. They are well placed to benefit from price rises if these eventuate. A new generation of mines is concentrating on a more profitable product range (gold, diamonds, uranium, mineral sands). Australia's balance of trade remains firmly dependent on the primary mining and agricultural industries (Fig. 1). Despite optimistic talk of high-tech developments, tourism and a resurgence of manufacturing, these will remain a small component of Australia's export structure.

Jan 1, 1987

Unnamed early prospectors panned gold from creeks drain- ing the Great Dividing Range in the early part of 1851. The first publicised discovery was credited to Edward Hargraves near Bathurst in New South Wales later in 1851 and during the ensu- ing gold rush, prospectors rapidly made discoveries elsewhere in New South Wales and later across the border in Victoria. Reference to the attached graphs of gold production indicates that for much of the first 100 years, gold production came from the easily worked and readily discovered shallow alluvial deposits, many of which were located in the creeks draining mountainous regions of Victoria, New South Wales and Queensland (Fig. 1 and 2). As these deposits were exhausted, prospectors turned their attention to outcrop lode deposits which led to the development of underground mining techniques and a significant boost in over- all gold production. With the discovery of the rich Golden Mile lodes in Kalgoorlie in 1893, gold production increased signifi- cantly and peaked around the turn of the century. At that time, the enormous potential of the great Witwatersrand deposits in South Africa had only just been appreciated and for a few years, Australia led the world in gold production (1855-1863 and again in 1903). Underground mining continued in the Eastern Goldfields area of Western Australia, the Bendigo-Ballarat region of Victoria and in northeast Queensland. Very few of these operations continued beyond the Second World War, except the larger producers in the Kalgoorlie region where recovered grade had dropped to about 6 g/t Au. By the early 1970s with the gold price fixed at US$35 per ounce, most of the operations were shut down as labour costs escalated, with only the low cost bulk mining operation at Mt. Charlotte and the high grade reefs at Norseman continuing in Production.

Jan 1, 1988

This paper deals with the Australian taxation laws, and in particular the income tax laws, as they apply to mineral exploration and development both in Australia and off-shore. The Australian tax laws are imposed principally at a Commonwealth level. The most important Commonwealth taxes are Income Tax, including Capital Gains Tax, Fringe Benefits Tax, Sales Tax, Customs Duty, Excise Duty and Bank Accounts Debits Tax. The States of Australia impose Stamp Duties and Financial Duties, Payroll Tax and Land Tax. The Australian Income Tax Law including Capital Gains Tax, is the most significant tax in the country. The principal features of the income tax law are as follows: tax is imposed on a taxable income being the assessable income less allowable deductions; a full imputation system of company tax applies; a foreign tax credit system applies to both companies and individuals; capital gains are taxed as income and subject to income tax rates but the gain is inflation adjusted. Australia has negotiated tax treaties with most of its trading partners based on the OECD model; and special tax concessions apply to the mining industry.

Jan 1, 1987

By R Daiyan, G Burge, M Haider Ali Khan

Australia’s mineral and metal exports have a substantial carbon footprint, twice that of its domestic emissions, mainly due to fossil-fuel-dependent downstream processes like processing into secondary metals and their transport. The country’s vast renewable energy and low-carbon hydrogen potential offer a promising alternative to mitigate this impact. These resources can be leveraged to displace fossil fuel use and become embedded into the metals value chain. Ultimately, it will yield ‘Green Metals’ that can be scaled to reduce the environmental footprint and provide an avenue for Australia’s vast green resources to be embedded (incorporated during production and supply) in green metals that can be exported. One potential green metal is copper, which is in great demand and likely to drive global decarbonisation through renewable electrification due to its role as an energy conductor. Given that Australia is a large producer and exporter of copper, this paper provides a techno-economic model of the copper value and applies it to Queensland (a hub of Australia’s copper production) as a case study. The results show that under incumbent hydrogen (A$8/kg) and renewable energy costs, the cost of green copper would be A$9704/t (~10 per cent higher than current copper costs). Further analysis revealed that the cost of hydrogen is a major cost driver; therefore, if the cost of hydrogen can be reduced to A$2/kg (a 2030 target of the Australian government), the cost of green copper would become competitive. Furthermore, if a carbon pricing regime ($54–79/kgCO2) is introduced, green copper would become competitive at a hydrogen cost of A$3/kg. Altogether, these findings provide insights for a future green copper export opportunity in Australia. Additionally, as the next step, the model can be extended to include other metals and released as an open-source resource for assessing global green metal opportunities.

Sep 1, 2024

The commercial development of the shallow (2200 ft2 400 ft) Windalia sand reservoir at Barrow Island provided the opportunity to conduct an intensive drilling programme using equipment and techniques designed for optimum performance.During the initial exploratory and reservoir delineation phase, 12 specific Windalia test wells were drilled using drilling equipment with an optimum depth range of 6QOO ft - 8000 ft and a 9 5/8 in by 7 in. casing programme was employed. The average time from commencement of move-in to rig release exclusive of coring for five representative wells was 187 hr during this phase.Development drilling commenced December 1966 with one rig, with the second in operation January 1967.As of January 1 1968, 168 development wells had been completed. The two rigs employed are drive-in units equipped with a telescoping .gelf raising doubles mast.Optimum depth range with 4 1/2 in. drill pipe is 2500-4000 ft. Casing programme is 8 5/8 in. by 5 1/2 in. Efficient performance was achieved immediately. The average time from commencement of move-in to rig release for 15 wells drilled early in the development programme was 99 hr.By application of experience and further modification of techniques, performance was improved to an average time of 72 hr per well for 15 wells recently completed.The major drilling problem on Barrow Island is surface hole drilling due to the very hard surface limestone combined with complete loss of circulation at sea level.In this operation, significant improvements have been effected. During the exploratory phase drilling, 12 1/4 in hole to set 9 5/8 in. casing, average penetration rate was 23 ft/hr. At the commencement of the development programme penetration rate, drilling 10 5/8 in. hole to set 8 5/8 in. casing, was 28 ft/hr for the 15 early wells considered, improving to 55 ft/hr for the 15 recent wells considered.This programme is a team effort and much credit must be given to the enthusiastic co-operation of the two drilling contractors.The current field record is 2 days 4 hr with a 4 1/2 hr move including the drilling of mousehole and rathole.

Jan 1, 1968

Base metal skarns have provided most of South KoreaÆs Pb-Zn production since the end of the Korean War, with the bulk of production coming from the Yeonwha group of mines. Currently only the Kumho Zn-Pb mine remains in production, while magnetite skarns are mined as iron ore at the old Yomisan and Ulsan base metal deposits. Base metal skarns within Korea fall into two groups; those hosted in Cambro-Ordovician limestone sequences, situated mainly in sub-basins in the northeast of the peninsula and those hosted within carbonate volcaniclastics of the Cretaceous Gyeongsang Basin, in the southeast. Sulphide mineralisation is dominated by sphalerite, lesser galena, arsenopyrite and pyrrhotite, with subordinate chalcopyrite and molybdenite with Ag-Co credits. Skarns are composed of pyroxene-clinopyroxene-garnet-carbonate-quartz and magnetite, grading into silica-chlorite hornfels. Most of the significant deposits display both pipe-like and stratabound morphology. In the Hwanggang district, a zoned distribution of Ordovician carbonate hosted, polymetallic Mo-W and Zn-Pb-Cu-Ag base metal deposits is observed around the margin of a Cretaceous granite intrusion. Similar polymetallic zoning is recognised in the Sangdong district, where deposits include Sangdong (W), Abisan (Au-As) and Yomisan Northwest (Zn-Mo) and Yomisan Southeast (Zn-Cu-Co), hosted in Ordovician carbonates in proximity to Cretaceous quartz porphyry intrusives. The Taebaeksan district hosts the largest deposits at the Yeonwha group of mines. Although production ceased in 1993, significant resources remain, hosted in Ordovician limestone and dolomite that have been intruded by Cretaceous quartz porphyry dykes. Deposits in the Cretaceous Gyeongsang Basin consist of bedding concordant, vertically stacked base metal skarn mineralisation at several stratigraphic horizons, connected by carbonate-base metal veins with a pipe-like geometry. Evidence such as massive sulphide layers and restricted proximal carbonates suggest mineralisation was initially partly syn-depositional, with both base metals and carbonate venting onto a lake floor, being reconstituted to skarns by later magmatic activity. Skarn mineralisation is universally closely associated with the Cretaceous Bulgugsa Series acid intrusive activity. A common intrusive-structural relationship is recognised at some deposits, with bedding plane and imbricate thrust faulting, introducing felsic intrusives as sills. These intrusions probably introduced the base metals, carbonate, boron, heat and silica, which metasomatically reconstituted the carbonate lithologies to form skarn assemblages. The Korean base metal skarn deposits are regarded as Zn-Pb chimney-manto skarns and display similarities to the Mexican manto type deposits.

Jan 1, 1999

Minerals processing operations use a significant quantity of fossil carbon to provide energy and as reductant. Greenhouse gas emissions from the use of this fossil carbon contribute to the global increase in anthropogenic CO2 emissions to the atmosphere. In the spirit of fostering thinking about a step change in this situation, this paper explores opportunities for the use of sustainable carbon from biomass sources in a range of mineral processing operations. The exploration shows that many common processes are contenders for fossil carbon replacement and that feasible scientific research by minerals processing technologists would add to deeper understanding of the potential for a sustainable bio-carbon based industry. It is also shown that there are many dilemmas on the social, environmental and economic fronts to be solved before a biomass based industry could become a reality.

Jan 1, 2004

By AJ LYNCH

Broken Hill metallurgists have been responsible for some of the most important developments in mineral processing technology. These occurred mainly in two periods, 1902 - 15 and 1955 - 70. Mineral flotation was developed as an industrial process during the first period and this happened in two stages, the recovery of zinc minerals from the tailings dump accumulated during the gravity concentration of the oxidised ores and the selective recovery of galena and marmatite during flotation of the primary ores. During the second period fast accurate analytical procedures were developed to provide rapid assessment of process performance, and new means of controlling the process were devised which improved throughputs, grades and recoveries. These technological successes were due to the skills of the metallurgists and the commitment of the companies. They brought large financial returns. They were achieved under difficult circumstance. There are important lessons to be learnt from these successes.

Jan 1, 1992

By Dodd SF

Valuation of mining companies and their underlying assets prepared by brokers' analysts are, by necessity, approximations. The reliability of the valuations is entirely proportional to the quality of available data, the reliability of forecasts and the nature of underlying commodity price assumptions. The latter is perhaps the greatest single cause of gross variations in company and asset earnings estimates and- valuations. Assumptions are often necessary regarding commodity price achievement based on commodity hedge positions. Public disclosure from listed companies provides a sound base from which to project earnings, cashflows and balance sheets. The uncommon disclosure of projected production and cost schedules often reduces the reliability of future estimates. The application of reserve and resource estimates is contentious with practitioners applying differing weightings to importance of resources in estimating mine lives (and therefore cashflow streams). Valuation methods applied in equity markets usually focus on relative value and the identification of pricing anomalies. The commonest ""rules of thumb"" applied in the valuation of mining companies (and therefore their underlying assets) is with the use of year specific price/earnings (P/E) and price/cashflow (P/CF) ratios, with low multiples suggesting undervalued assets, high multiples overvalued situations (but these rules can often be clouded by market expectations of underlying commodity price movements). Another simply applied valuation tool is to examine the examine the value placed on reserves and resources by the market. Inexpensive gold in the ground (expressed as $ of market capitalisation per ounce of reserves or resources) might indicate a buying opportunity, but the market does discount the value of gold in the ground prior to mine development and where development risk is perceived.

Jan 1, 1994