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By Goldie R

The use of options theory in business has become well established in recent years and is currently one of the most exciting areas of current finance research. The theory can be used to value levered firms, and streams of contingent payments. This technique also has very practical applications in the areas of capital investment analysis and the valuation of equities in the natural resource industry. The use of options theory has been well accepted and used for many years in the trading of commodity options and futures contracts, in banking and insurance and in other industries. It also can be used to value such diverse contingent claims problems as the income tax liabilities of the firm and share underwriting agreements.Its application to the more complex options, such as those present in the resource industry, is only now becoming known. This lag is, at least partially, due to the difficult mathematics involved in solving complex options problems. Another factor is the almost overwhelming abundance of uncertainties, such as grade, tons and other natural risks, which must be considered in the evaluation mining projects.

Jan 1, 1990

In the human body, the balance between heat production and heat loss is continuously being disturbed, either by changes in metabolic rate (work being the most influential) or by changes in the external environment (heat stress), which alters heat loss. These changes in body temperature can adversely affect the function of body systems and organs. As a result, heat production or heat loss processes are triggered in order to restore normal body temperature (36 - 37¦C). If the heat generating systems of the body are excessive or the environment hostile then the capacity of the body to maintain thermal homeostasis is exceeded and can lead to a serious threat to health, or even death. This health deficit can severely affect an individualÆs capacity to work optimally; the end result is both poor productivity and health. Strategies to minimise or eliminate this effort will benefit both the health of workers and the productivity of companies. The principal strategies to reduce the effects of the environment on workers are: engineering interventions: to improve environmental conditions and reduce heat stress; and a comprehensive working in heat protocol: with provisions to identify risk situations and procedures to be adopted in relation to these. The above points will be discussed in detail with practical and simple strategies proposed to combat the deleterious effects of heat in mining.

Jan 1, 2005

The risks faced by organisations are part of a risk continuum. They can be evaluated in terms of hazard, uncertainty and opportunity as well as by the degree of influence they have on conformance, operating performance and strategic objectives. This paper discusses the application of risk management techniques for mitigating blasting hazards, reducing blasting output variability, and implementing blast improvement opportunities. Effective risk management practices can identify and evaluate risks across all levels of the continuum and can deliver realistic assessments of the likelihood and impact of risks on the companyÆs safety and business objectives. This paper does not attempt to present technical details about blasting, rather it aims to provide enough blasting context and examples so that the practical benefits of applying the risk management process to blasting can be fully appreciated. The topics discussed include: explosive management plan; statistical process control; quality blasting, rock-on-ground; Blast Management; Mine to Mill optimisation; and blasting information systems. The concept of a blasting risk management system employing a continuous improvement loop is also introduced. On reflection the insights presented should be extremely useful for observing and understanding which risk face has management focus at a mine site or for a blast site.

Jan 1, 2001

Discounted cash flow (DCF) methods are well suited and recommended as a primary valuation method for mineral assets for which there are at least indicated resources and some form of feasibility study containing engineering, production and capital and operating cost data. DCF methods are also applicable as a secondary or check valuation method for exploration properties for which no technical study has been prepared. For projects where little or no engineering, production and/or cost data is available, the process of formulating a project concept by specialists who do not possess experience and expertise in the relevant technical faculties is totally rejected as a basis for applying DCF techniques as a primary valuation method. Such an approach runs counter to The Australasian Institute of Mining and Metallurgy (AusIMM) requirement to apply relevant expertise to specific aspects of mineral valuation. Technical and commercial inputs to mineral valuation should be reviewed by specialists who have specific expertise in the relevant disciplines, and should be tempered by the quantity and quality of technical evaluation which has been undertaken and the development status of the asset.

Jan 1, 1994

By Rolley P

In the course of reviewing grade control practices at the Marvel Loch gold mine in Western Australia in 1992, FSSI Consultants developed and implemented a novel approach to ore selection using a method to maximise financial return (the MP method*). The approach was based on improved grade control sampling and an ore selection method which directly incorporates both a measure of the uncertainty in knowing the true grade of selection units in the definition of ore, as well as the operating cost and revenue parameters of the mining operation. During the past four years, FSSI Consultants have evaluated and refined the use of this approach and have implemented customised variations of the MP method at seven gold mines and a gold-copper mine in Australia. The previous methods of ore selection at most of these operations were based mainly on polygonal - sectional methods of grade estimation. At all of the sites where grade control optimisation has been given a fair trial over several months of production, the use of the MP method has been consistently rewarding to the mining operations. The benefits include increased run of mine ore stockpiles and low-grade stockpiles and decreased fluctuation in the production grade. Most operations have also benefited from a consistent ability to improve production grade through high-grading of the increased ore production. The increase in ore production has the logical benefit of reducing stripping ratios, increasing mine profitability and mine life.

Jan 1, 1997

By Boyce WH

Earthquakes are the most frightening and devastating natural phenomena known to mankind. They strike without warning and their consequences can be disastrous in terms of the toll of human life, financial crises related to the damage or destruction of man-made structures and the social and economic effects on a wide spectrum of the affected communities in the aftermath of the event. Such situations can be widely attested to by most areas around the Pacific Rim. Indeed, the threat of earthquakes is always imminent because of the geological-tectonic nature of the region as manifested by past experiences. It is patently obvious that earthquake occurrences are not only a geological hazard but also pose a serious social danger. When one considers the 19 September 1985 Mexico (Michoacan) earthquake (Mitchell at al., 1986), the necessity of continuing research is of paramount importance. An estimation . of earthquake risk encompasses both qualitative and quantitative aspects and demands a multidisciplinary research effort integrating seismology, tectonics, geology, enginering, sociology, economics, insurance and governmental policies (Bolt, 1978; Booth, 1984). These roles in mitigating such a hazard have been aptly discussed by Press (1985). A series of discussion papers based on an intergovernmental conference covering the whole scenario were published by UNESCO (1978). A comprehensive case history was provided through a workshop on the 1886

Jan 1, 1987

It is people, not organisations, that make countries great, so it seems appropriate in this Centenary year of The Australasian Institute of Mining and Metallurgy to highlight some of the mining personalities who have contributed to the greatest and most important of Australia's export industries, the Resource Industry.

Jan 1, 1993

By A Struminski

The principles of occupational risk evaluation resulting from the improper ventilation of the underground mines were presented. It was shown that the risk level implies the appropriate planning and usage of prevention methods. That approach is fundamental in the ventilation, fire and climate safety management in the copper ore mines. The paper uses the adequately modified Risk Score method.

Jan 1, 2003

The author presents various procedures for the choice of dri-ving systems for mining, including the method of indeterminate Lagrange factors and linear programming.The possible application of the points-awarding method is demonstrated.It allows for taking into account both surd and commensurable characteristics of a driving system for mining. Also, the method of economic efficiency factors is outlined.All these methods make possible the best choice of a driving system, from the as-pect of electric energy saving. Two examples are given.

Jan 1, 1985

By A B. Christie

REGCHEM is a geochemical database containing stream sediment geochemical analyses compiled from open file mining company exploration reports. The database contains data on over 21 000 samples that have each been analysed for several elements such as gold, silver, arsenic, copper, lead and, zinc.   REGCHEM is supported by GEOEXPL - a custom written computer software application which operates under Microsoft Access. The data can be plotted as maps using a geographic information system (GIS) package called MapInfo, which can incorporate data from other data sets such as mineral deposit sites from the geological resource map database, GERM.

Jan 1, 1994

There are a number of methodologies which can be used for the preparation of environ- mental impact statements. Selection of a method depends upon the type of project and the environmental characteristics of the area where it is to be built. Most methods are satisfactory for assessing impacts on the physical environment but less so for the biological. Major problems may arise in deal ing with sociological issues because value judgements are involved. Several methods of approaching problems of this nature have been tried with some limited success.

Jan 1, 1976

This paper looks at the problems associated with surface settlements and other subsidence effects from the underground extraction of coal in relation to consent applications under the Resource Management Act. The main features of subsidence are examined with respect to identifying the adverse effects as defined under the RMA. Particular attention is paid to sites where little or no data is available as in the case of greenfield sites or at mines where new or different mining methods are being introduced. In these situations it is not possible to make accurate predictions of settlements or strains and therefore other factors need to be considered. The long term effects which might occur post mining are examined in relation to mitigation and management options.

Jan 1, 2003

Gold recovery by catalytic copper ammonium thiosulphate solution has been studied. Such a process strategy is very attractive for leaching certain difficult-to-treat ores and presents lessened lixiviant toxicity compared to cyanide. Newmont Gold Company has evaluated the ammonium thiosulphate heap leach process for gold recovery from low-grade carbonaceous sulphidic refractory ores following biooxidation. The ammonium thiosulphate leach process has been studied in laboratory, pilot plant and demonstration scale. Satisfactory test results support the continuation of process development. However, the thiosulphate leach chemistry was found to be very complex. Maximum control of the stability of the leaching system is a key factor for success, especially for the heap leach process. Important solution chemistry is discussed in this paper.

Jan 1, 1997

The law including legislation such as the Occupational Health & Safety Act 1983 imposes stringent obligations on employers to ensure the health and safety of their employees. The use of pre-employment medical examinations is one tool that employers can use to assess the suitability of a job applicant for a particular position and protect themselves from prosecution or claims for compensation or damages.At the same time, however, legislation such as The Disability Discrimination Act 1992 (Commonwealth) ("DDA") and The Anti-Discrimination Act 1977 (New South Wales) ("ADA") affords protection to individuals against discrimination.

Jan 1, 1998

Sampling is an integral part of gold bullion analysis. Gold mining industries sell millions of dollars worth of gold on the basis of analyses. Biased sampling can cause a serious loss in terms of monetary value to a mining company; hence accurate sampling is of great importance. The sampling procedures for gold bullion will be described. Emphasis is given to the most reliable method of obtaining a representative sample from a gold bar. The problems associated with sample preparation will also be discussed.The sampling procedure at the Kalgoorlie Metallurgical Laboratory will be evaluated in the light of comparative results from the Australian Gold Refineries (Perth, Kalgoorlie). The most common sampling practices adopted by different gold mining companies in the Goldfields and Australian Gold Refineries, Western Australia will also be presented.

Jan 1, 1976

Accident control has been a pre occupation of progressive industrial and mining companies for many years but few have attempted more than direct injury control. In recent years, particularly in North America, analyses of accident costs have shown that material damage resulting from accidents is usually of greater economic significance than injuries and this has led to the concept of loss control. Loss control is an attempt to take the emphasis off injury prevention and to concentrate on the basic factors which affect both the health of the individual and of the company. The deterrent to greater acceptance of this philosophy has been the apparent diffi- culties of implementing a loss control programme but Associated Minerals Consolidated Limited has adopted a simple approach. It has had a minimum disturbing effect on normal operations because existing systems have been modified to provide the new information required. It is suggested that the programme outlined is applicable to other mining ventures and is a practical method of providing benefits for both the company and its employees.

Jan 1, 1975

A Presidential Commission of Enquiry into the conservation of South Africa's coal resources was appointed in 1970. This Commission, in co-operation with the Chamber of Mines of South Africa, established a national inventory of South Africa's in situ and extractable resources and reserves of coal of various types and grades by several mining methods. South Africa's future demand for coal by all market sectors and the specifications of coal required, were also established by means of econometric models. A comparison of potential supply and anticipated demand indicated serious defi- ciencies of certain types of coal and the need for the conservation of others. This paper describes recommendations for alternate strategies for the optimum utilization of available resources. Con- sideration was given to various policies relating to pricing, exports, taxation and incentives, and to the possibility of the substitution of higher grades of coal by lower grades. The steps so far taken to develop a national coal policy in South Africa are described.

Jan 1, 1977

We have been exploring for minerals in Australia for over 100 years and our methods are constantly improving - but why do we pros- pect? Is the effort justified? Obviously the main motive is economic gain. It is now and always has been but conditions are changing rapidly. Once it was the prospector who could cash the nugget. Then it was the syndicate, the small company, an amalgamation of small companies, the large company, the corporation; the multinational corporation - where do we go from there? Early there was personal satisfaction and excitement in out-door activity which gave scope for individual energy, hope and in some cases reward. There still remains the satisfaction, either individual or corporate that a mineral discovery creates new wealth and makes a contribution to the nation's well being. Parallel with developments has always been the growth of restraints on exploration, frequently out of phase with the current mineral developments - miners' rights, licences, titles, royalties, mining laws and regulations, taxation etc. As the operations have become more complex so the restraints have become more confining until it is now very necessary to question whether the chances of economic gain justify the risk and responsibility of mounting costly mineral exploration leading-to extensive capital development.

Jan 1, 1974

Flue gases from electrical power station boilers, roasting, metallurgical and chemical plants could be treated by flotation using conventional flotation machines. The flue gases are introduced into the pulp instead of the air. The flotation media is a suspension of Ca(OH)2 or CaCO3 or a solution of NH4OH etc containing Na oleate as collector and frother. The SO2 and dust content of the initial flue gases were experimentally reduced by 100 to 1000 times in one flotation operation. The velocity of the flue gases through flotation machines could reach approximatively 0.4 to 0.5 m/s and more against 1.5 m/s reached in scrubber absorbers used for this purpose, but the quality of purification is expected to be better for flotation, which is essential for the cases of heavy polluted metallurgical and chemical flue gases. For some chemical plants the flue gases flotation media may be different and more suitable as compared to the above mentioned media. The proposed flotation method could be used for separation of dry grinded ores in the form of aerosols, with a realisation of flotation from a closed space (gas bubble in the pulp) onto the interface liquid-air where the particles are attached inside the bubbles.

Jan 1, 1993

Gold bearing sediments at Scotland Point occur within the Quaternary Gibbston Fonnation, which underlies Cromwell Flat in Central Otago. Gibbston Fonnation unconformably overlies Teniary Manuherikia Group clays, sands and quartzose gravels. Gibbston Formation sediments are composed of a texturally diverse, multistoried lithostratigraphic succession of sandy/gravelly/bouldery lithofacies, deposited within a multiple channel (braided) depositional environment. Lithostatigraphic analysis indicate an upward overall decrease in average grain size, reflecting a concomitant reduction in stream competence. This trend results from progressive channel abandonment as major distributaries avulse across the outwash plain. Grade distribution of alluvial gold is controlled by aggradational and to a lesser extent degradational lithofacies deposited as distinctive braid bar forms near the base of the sequence. These lithofacies were deposited at different topographical levels on the outwash apron, under variable hydraulic conditions. Recognition of large-scale auriferous bedforms within the braid bar depositional system coupled with an understanding of lateral facies relationships, allows headgrade control on run of mine ore and quick determination of overburden to ore ratios.

Jan 1, 1988