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This paper describes preliminary research on the application of Markov Decision Processes (MDP) to Real Option Valuation (ROV) and the optimisation of mine scheduling. The MDP framework is a novel approach to option valuation and scheduling in mining operations. A learning agent is introduced into the valuation process of an open pit, where prices and block ore grades have probabilistic values. The prices are modelled using a mean reverting diffusion process and the block grades using sequential Gaussian simulation. The agent is asked to learn which production parameters should be used in order to maximise the overall value of the project. The introduction of the agent permits a real option approach to mine valuation, such that the value associated with the robustness of a design to uncertainty can be measured. A simulated example is used in which there are ten blocks to be extracted under conditions of grade and price uncertainty. Using policy iteration, an optimal policy is generated and the value of production options is found. The potential financial gains from applying MDPs to mine valuation and optimisation are substantial and warrant further investigation.

Jan 1, 2007

By Turco E, Pelizza S, Castellani F, Stanganelli V

Excavation are in progress for the building of tunnels of the waterworks in West Campania (Naples). The works afferent to part II envisage tunnelling through a miocenic clay formation over consolidated by two tunnels whose sections are respectively 50 and 10m2. Tunnel blasting is carried out by mechanical means. An excavator is used in the big tunnel, whereas in the small tunnel a roadheader machine is used for a short tract and a mechanized shield is used over a long stretch. The tunnel feature complex problems regarding stability. This is particularly so for the big tunnel whose face appears unstable. For this reason the clay on the face is sistematically bolted by means of 3-metre and 12-metre bolts. This prevent the use of a TBM for tunnel Excavation.

Jan 1, 1987

By S Holmes

Solid Energy New Zealand operates the Stockton Opencast Coal Mine, a unique deposit consisting of high quality hard coking and thermal coals. Stockton's uniqueness includes high variability of the shipment specifications, strict quality constraints, minimal stockpiling capacity in the coal transport chain and the variability of coal quality both vertically within the seam and laterally across the deposit. The process of resource proving and modelling results in a high level of understanding of the deposit to allow detailed planning to be undertaken. The use of computer aided mine planning tools is an important component of the mine planning at Stockton. Detailed planning is implemented in the field through selective mining practices and monitoring to minimise dilution and maximise recovery of the coal resource. The quality variability in the coal, the æjust in timeÆ approach of the coal transport chain and markedly varying quality specifications from shipment to shipment requires a large coal inventory and the mine to be driven by quality constraints rather than material movement capacities.

Jan 1, 2003

By Brown DJ, Croghan JA, Denby B

The paper describes the development and analysis of an instability database to establish a new method of slope stability assessment for U.K. surface coal mines. The concept is based upon a Stability Index, which relates to the probability of failure of a slope. This forms the basis for a geotechnical planning software package to be incorporated into a computer aided mine design system , which is currently under development.

Jan 1, 1986

The environmental and social responsibilities of the mining industry have long been recognized by the industry itself, but during the past decade it became one of the main targets for the more radical members of the community. This came as something of a shock to an industry which had always considered that it had acted responsibly within the standards of the day. As far back as early 1968, the Australian Min- ing Industry Council (AMIC) was clipping from newspapers the odd letter written by environmen- talists and critics of mining activities. In those days every such letter was carefully studied to ensure that AMIC, if not having the answers, at least had an understanding of the types of argu- ments then starting to be used against mining activity and in favour of environmental preserva- tion. Within 18 months, the infrequent letter to the editor had become a flood of such letters and feature articles, and the environmentalists' attack on mining activities had been launched in all its Vehemence.

Jan 1, 1978

By Kitzinger F

The economic climate of the Canadian mining industry forced an increased interest in rapid, continuous excavation techniques for hard rock formations. The potential applications and advantages of continuous mining over the present drill- blast-muck labour intensive cyclical methods are considerable. Noranda investigated an electrical technique, Plasma Blasting showing considerable promise for mining hard rock. The background of the technology and the theory of blasting rock with electricity is described. The Plasma Blasting process is based on the fast discharge of stored electrical energy into a small amount of electrolyte, suitably located in the rock. The electrical energy converts the electrolyte into high pressure plasma, which expands very quickly, thereby, generating a shock wave. This shock wave produces a stress field inside the rock, resulting in a blast similar to that made by chemical explosives, but without the deleterious fumes. Noranda is currently blasting boulders of 4-5 tonnes and is at present constructing a mobile, autonomous secondary rock breaker for underground and open pit applications. Tests on in situ hard rock formations will lead to the development of a continuous mining machine. Production rates of 500 tonnes per man-shift could be obtained with such a machine.

Jan 1, 1990

By D R. Swinbourne, Y H. Yang

Calcium ferrite slag has gained prominence in the copper smelting industry over the last decade due to the emergence of continuous converting as an established technology. As smelters move towards processing which is higher in intensity, more efficient and more environmentally acceptable, its use is likely to increase because it has technical advantages over conventional iron silicate slag, which include a higher magnetite-holding capacity, lower copper losses to slag and a lower viscosity. Calcium ferrite is currently the converting slag of choice in the Mitsubishi process at operations in Japan, South Korea, Indonesia, Canada and Australia, and in the Kennecott/Outokumpu flash converting process in USA. However, users of this slag have experienced problems in containment due to its highly corrosive nature and low viscosity. As use of this slag becomes more widespread the containment problem will assume greater importance. Consequently, work has recently been carried out to establish the mechanism of refractory attack and devise means to retard it. This work will be critically reviewed in this paper.

Jan 1, 2000

By T Hodgkin

The WA Goldfields is a highly productive gold and nickel mining area, but is arid with highly saline groundwater. Groundwater is widely used to supply process water to mines in the region but high groundwater salinity, commonly exceeding 50 000 mg/L TDS, tends to increase processing costs, limit end uses for the water, cause problems with disposal and potentially increase impacts on a sensitive arid environment. The area has low rainfall (200 - 270 mm/year) but run-off, particularly during cyclonic events, is high. Our experience suggests that stream flow from catchments in the area can produce a divertible yield of 8 - 17 ML/km2/year. An evaluation of stream flow harvesting using AnglogoldÆs Jubilee Pit predicted that 1000 ML/year of good quality water could reliably be supplied to the Sunrise Dam Gold Mine. Because of high rainfall variability, it is likely that an alternate source of water supply will be necessary when operating a surface-water harvesting scheme in the WA Goldfields. However, a combination surface/groundwater supply could have substantial cost, operational and environmental benefits compared to traditional supply systems that utilise groundwater only.

Jan 1, 2003

By Weir D. R, Doyle B. N

The Sherritt Zinc Pressure Leaching Process is based upon the direct pressure leaching of zinc sulphide or lead-zinc bulk sulphide concentrates to produce zinc sulphate in solution and elemental sulphur in the leach residues. The zinc sulphate solution is compatible with conventional purification and electrowinning technology. The pressure leach residues can be treated for the recovery of elemental sulphur, lead and silver. With the conversion of sulphur to the elemental form, zinc pressure leaching allows zinc winning to be independent of sulphuric acid production. Direct pressure leaching of zinc sulphide concentrates was started commercially in October 1980. Continuing research and development studies have defined various pressure leaching configurations for integration with existing roast-leach operations, for grass roots plants, or for plants which are to have the roast-leach section completely replaced. These studies have included the treatment of zinc concentrates from various Australian producers and the development of process flowsheets for potential applications in Australia.

Jan 1, 1989

By Campain RA, Horner NJ, Limerick JM

The review covers the different concepts of automation which are appropriate to non-ferrous smelting and the degree to which the smelter, and the furnace in particular, is amenable to total automation. Due to the problems peculiar to a smelter, it is unlikely that a fully closed loop system could ever be achieved and that the smelter will continue to depend upon extended manual control supported by computer based information sorting and optimisation.Generally, loop control is performed using Taylor's Mod III process control system. For distinct plant systems involving a combination of process loops, sequencing, and data acquisition, the company has developed its own microprocessor based systems. Process optimisation using computer based analysis of operating data is well established. Utilising this data, computer modelling provides manual set point supervision for the furnace process control system.The impact of automation on the workforce and on operating costs is also examined. Predictions on future developments in the field of automation, optimisation and sequencing are propounded and related to the non-ferrous industry at large.

Jan 1, 1985

The recent installation of top gas temperature probes in blast furnaces at Australian Iron & Steel Pty. Ltd. - Port Kembla, has provided the means for studying radial gas flow distribution in blast furnace shafts. This paper describes the top gas temperature probes and outlines their development and results of initial studies aimed at obtaining a suitable relationships between temperature profiles and furnace parameters. The effects of various combinations of burden materials have been outlined by the results reported. The use of probes has also helped to clarify the effect of casting cycles on furnace operation leading to increased emphasis on the reduction of the interval between gun-up and drill-out. Areas for future studies are also broadly Outlined.

Jan 1, 1975

By Arumba J

In the Mount Victor area of the Eastern Highlands Province, re- connaissance geological mapping and new micropalaeontological data have revealed the existence of at least three small thrust- bound windows exposing late Middle to Late Cretaceous (Late Aptian-Early Albian and Late Santonian-Maastrichtian) sedimen- tary rocks and pillow lavas, Latest Paleocene- Earliest Eocene pillow lavas, and Latest Paleocene-Earliest Eocene bathyal micrites. Late Middle Eocene to Late Eocene inner neritic bioclastic micrite units also occurs in thrust contact with Middle Miocene Yaveufa Formation volcanolithic conglomerates. The Cretaceous and Early Tertiary units appear to be thrust-bound and are best exposed in a window just south of Mount Victor, and in two smaller windows to the east. The inner neritic Eocene limestone occurs in a thrust-bound sliver within the Yaveufa For- mation near Obura. The windows occur within extensive out- crop of Early Miocene Omaura Formation and the Yaveufa For- mation. Thin-bedded grey mudstone, siltstone and sandstone, typical of much of the Chim Formation form only a small part of the exposure of Cretaceous rocks. Thick-bedded volcanolithic conglomerate, spilitic pillow basalts, and welded basic tuffs domi- nate the Cretaceous section. The stratigraphy and structure of the Mount Victor area is similar to the Menyamya area, the Aure Scarp, and perhaps the Tapini area. This study has raised the possibility of widespread thrust- ing in the Kainantu area, and suggests that the boundary between the Omaura and Yaveufa Formations is thrusted, at least locally.

Jan 1, 1997

By Struthers M. A

The basement contact zone, a major fault structure underlying the copper orebodies at Mount Isa, has a significant influence on orebody extraction. The zone is comprised of a variety of weak, barren lithologies which often create very difficult mining conditions, contribute to stope dilution, and have an adverse effect on concentrator recoveries.The geological characteristics of the contact zone are described, and the importance of timely, accurate geological information emphasized.A variety of mine design strategies have been employed to reduce the impact of the contact zone on orebody extraction. Some of these are discussed, together with current trends in the southern areas where orebody geometry and hence mining methods change markedly.Recent developments in ground support techniques, such as cable dowel reinforcement, have significantly improved ground conditions in the contact zone. An example of the methods employed to improve knowledge of ground behaviour is presented. The trend towards increasing automation and larger equipment requires larger excavations; consequently ground support practices and knowledge of ground behaviour must continue to advance. Rock mechanics investigations will remain an essential part of the mine design process.

Jan 1, 1990

A modular computer-based monitoring system for mines is dis-cussed. The system consists of the following modules : production moni-toring system HADES, methane monitoring system CMC, seismoacoustic and seismometric systems SAK and SYLOK, communication systems. The system enables one to compose flexible,` economic structures according to the specification of a mine. Application of microcomputer-based monitoring and control systems in coal preparation plants also is discussed.

Jan 1, 1985

By J Q. Shi, M Karakus, Y Liu

Predicting the spatial distribution of rock mass properties in cave mining is a critical challenge. In this study, we introduce a novel machine learning-based model to advance our comprehension of rock behaviour. This model specifically focuses on the spatial distribution of rock mass and mechanical properties, a crucial aspect of our understanding of rock mechanics. Our model is inspired by the recognition that neighbouring information serves as crucial prior knowledge for predicting the spatial distribution of these properties, wherein closer neighbours are likely to exhibit similar characteristics. To effectively capture and model these neighbour relationships, we design a neural network-based model to map the spatial locations within the data set into a new highdimensional space. Within this transformed space, we utilise Euclidean distance to identify N neighbours. Leveraging these neighbours, we introduce a straightforward yet highly effective approach—label propagation—to construct a graph that illustrates neighbour relationships. This graph not only facilitates the prediction of the spatial distribution of rock mass properties but also offers a measure of uncertainty for these predictions. We validate the proposed method using a real rock data set and showcase its efficacy in capturing intricate relationships and distributions within rock properties, enabling precise predictions across diverse spatial scales. Our results underscore the potential of machine learning-based approaches to revolutionise the field of rock mechanics, providing valuable insights applicable to geotechnical engineering, mining, and other sectors where an accurate understanding of rock properties is paramount. This model has direct practical implications, offering a new tool for geotechnical engineers and mining professionals to enhance their understanding and prediction of rock properties, thereby improving safety and efficiency in their operations.

Sep 1, 2024

By Buizen M, Eagleton A. C

The results of calibration trials conducted on parachute stoppings both overseas and in Australia under a recently completed NERD&DC grant, are presented. Applications of parachute stoppings, for rapid regulation and control of ventilation networks are described including use in blasting areas and rescue work. Several parachute-type stoppings are described and their applications Investigated

Jan 1, 1988

By X Li, H Alehossein

The oscillating disc cutter (ODC) is an innovative technology for the continuous excavation of hard rock. This paper will discuss:the reasons for its development;its method of operation;current experimental results and mathematical modelling undertaken at the CMTE; andapplications in the mining and rock excavation industry.

Jan 1, 1999

Three main divisions of the. Proterozoic are recognised in the North- West of Western Australia. These are referred to, in order of decreasing age as the Mt. Bruce Supergroup, the Bresnahan Group and the Bangemall Group. The stratigraphy and distribution of each is described, their relative ages discussed and a brief geological history of the whole area is Presented.

Jan 1, 1964

By M Pizey, P Lindsay

Coal mining has been occurring on the Stockton Plateau for over 100 years. As a result of both natural conditions and mining activities, surface water on the plateau is known to have low pH and elevated metals concentrations, a condition known as acid rock drainage (ARD). Solid Energy New Zealand Ltd (SENZ), as owners of the current mining operations at Stockton desire to understand the nature and causes of ARD at Stockton to determine whether commercially viable options can be developed to improve the water quality to levels acceptable to the local community and regulators. A series of integrated water quality investigations have been performed towards developing a characterisation of the water quality on the Stockton Plateau and receiving waters. The investigations performed include: design and implementation of a water quality monitoring program to collect a satisfactory base of water quality data from which to develop an understanding of the water quality and its variability, and to collect data regarding the range of flow rates that occur in the principal streams; development of a hydrological model for the Plateau with the ability to predict flow rates at key locations on the plateau and on the Ngakawau River; field investigations of the bio-diversity of the plateau and surrounding areas, to develop a snapshot of the health of aquatic communities and whether streams draining mine workings are æadversely impactedÆ; eco-toxicology; waste dump seepage water quality monitoring at selected basal springs, drilling, investigations and permeability and geochemical testing; data processing of a range of historical data and the newly acquired data for the development of empirical relationships that describe the water chemistry system and its relationship in turn to flow rates in the streams; simulation of the long term water quality record for the measured parameters (pH, acidity and metals concentrations), based on the hydrological model and the empirical relationships developed from the new database; and preliminary development and examination of mitigation options for the ARD issues at the mine. The study has progressed towards design of pilot studies of options for mitigation of the generation of the ARD as well as treatment of the discharges. It is the integrated approach adopted by SENZ from an early time in the investigations, that has enabled fast-tracking of the pilot engineering trials. This paper presents the results of the field investigations and eco-toxicology studies and demonstrates the value of predictive modelling of water quality in the study area, even at a very early stage in the remedial engineering design process.

Jan 1, 2003

By R K. W Merkle, E Whiteman

The anorthosite complexes and related rock types of the Indian Precambrian shield are primarily associated with either cratons or mobile belts. They were metamorphosed under amphibolite to granulite facies conditions. The major rock types are chromite-bearing meta-anorthosites, amphibolites, basic granulites, pink granites and gneisses. This study was carried out on chromitite bearing samples from Sittampundi Anorthosite Complex (SAC), Tamil Nadu, to evaluate the nature and textural settings of platinum-group minerals (PGM), using state-of-the-art technology. The structure and petrology of SAC were well studied by earlier workers (Subramanian, 1956), but only scanty data on geochemical, petrology and mineralogy of PGM are available. The mineralogy of the samples is dominated by chromite (>70 mass per cent), plagioclase (An90) and chlorite-actinolite with orthopyroxene (En85). Details of the petrological evolution of the Sittampundi complex will still have to be studied further, but indications of magma replenishment at the level of chromite formation and the elevated PGE values associated with the chromitite samples make the Sittampundi complex a promising target for future exploration activity.

Jan 1, 2008