Search Documents

By G J. I dos Santos

The risk assessment of mining projects is directly related to the possible failure in estimating, and as estimates are made from sampling results, this activity should be done in a judicious and planned manner, to avoid surprises at the start of project operation. Pierre Gy’s (1995) sampling theory addresses the issue of sample representativeness and indicates that only the certainty that the sampling procedure was performed with quality may result in samples being recognised as representative. To validate the representativeness of samples from sampling boreholes selected for studies of mineral processing, the team of geology resource assessment of VALE has proposed a methodology based on the use of statistical analysis tools, which in addition to considering the spatial distribution of these samples in deposit, considers whether they are representative of the populations studied, allowing the geologist to make a quick analysis of sample representativeness.

Jul 11, 2011

By G Morgan, C Kemp

In December 2010, a trial of borehole radar technology was conducted to test the usefulness of the technique in better refining the position and geometry of narrow vein orebodies away from the primary data sources of drilling and mapping of development excavations. This paper summarises the reasons why the technique was applied, describes the testing methods selected and summarises the outcomes of the trial.Poor reconciliations of recovered metal from a section of an orebody at Jundee mine site, Western Australia, led to an investigation that identified insufficient understanding of the geometry of a narrow vein orebody as a potential cause. This orebody was situated between mapped development excavations and away from surrounding drill holes. Borehole radar was identified as a possible technique that could supply information on vein location and continuity away from other data sources allowing more accurate orebody modelling and subsequent stope optimisation.A borehole radar instrument (10 - 100 MHz frequency) was inserted into pairs of purpose-drilled boreholes on either side of relatively well-constrained mineralisation and the radar reflection data was collected. This process was repeated in five locations across the mine to represent the most common geological settings, lithologies and orebody varieties encountered at Jundee to determine the suitability of applying the technique in each of these settings. Collected, processed and interpreted radar data was compared to other geology data collected independently for verification and interpretation.Conclusions drawn from the analysis were that the technique could effectively determine the following features of the mineralised veins in the majority of test environments: geometry of veins, magnitude of offsets where structures intersect and orientations of planar structures with short strike length. The technique was very useful in selecting the appropriate structural interpretation where available data could lead to multiple, equally likely, interpretations.CITATION:Kemp, C and Morgan, G, 2012. Using borehole radar to refine orebody interpretations in a narrow vein gold deposit, in Proceedings Narrow Vein Mining 2012 , pp 121-130 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Mar 26, 2012

By M Spleit

A long-term production schedule for the LabMag iron ore deposit in northern Quebec, Canada is derived using stochastic integer programming. The optimisation formulation maximises the schedule’s net present value while simultaneously managing the risk of deviations in production tonnages and qualities by considering stochastic simulations of the orebody instead of a single deterministic model. The formulation also smooths and minimises haul truck requirements and ensures that as mining progresses, space is created within the mined out pit for the return of waste material.CITATION:Spleit, M, 2014. Production schedule optimisation – meeting targets by hedging against geological risk while addressing environmental and equipment concerns, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014, pp 397–404 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014

By G Gopinath, R Balachander, H S. Venkatesh

This paper describes in detail the controlled blasting adopted and the measurements undertaken for the successful excavation of large twin tunnels under a shallow cover for a six-lane highway project in India. The tunnels are D-shaped, each 15 m in diameter, and the cover between the tunnels and the existing railway track was about 14 m. These twin tunnel tubes were characterised by two separate three-lane carriageways for each direction of traffic, and were planned with about 25 m of reinforced cement concrete (RCC) portals at the entrance and exit of the tunnels. The major challenge of the project was the blasting of tunnels in rock below an operating railway line. As the tunnels approached the area below the railway line, the ground vibrations were monitored vertically above the blasting faces and on the railway track sleepers. Vibration intensities between those generated from tunnel blasting and those from the movement of the trains were compared, and it was found that the vibrations from blasting were lower than those from the moving trains. Though the permissible level of ground vibration based on the Indian Standard (IS) code happens to be 70 mm/s, the maximum charge per delay was calculated restricting this limit to 50 mm/s. This ensured that the vibrations in the vicinity of the railway tracks never exceeded the prescribed limit of 70 mm/s. The surface ground settlement before and after the blasts were also measured using an optical levelling instrument, which confirmed that there was no significant impact on the surface movements due to blasting. Extensometer readings inside the tunnels showed that there was no deformation in the tunnel. These twin tunnels are now operational and are providing faster connectivity with safety.CITATION:Gopinath, G, Venkatesh, H S and Balachander, R, 2015. Controlled blasting for twin tunnels with a shallow cover under an operating railway line, in Proceedings 11th International Symposium on Rock Fragmentation by Blasting, pp 801–808 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 24, 2015

By P Collier

From 1972 until 1989 when operations were suspended Bougainville Copper Limited (BCL, owned 53.58 per cent by Rio Tinto Limited) operated a large open pit mine and processing facility at Panguna on Bougainville Island, Papua New Guinea producing copper concentrate containing significant quantities of gold and silver.BCL has a stated vision of recommencing operations at Panguna. In 2008, Rio Tinto, on behalf of BCL, conducted a multi-disciplinary study to assess the technical and financial viability of redeveloping the Panguna operation. One of the key outputs of the study was a Joint Ore Reserves Committee (JORC) Code compliant mineral resource statement based on the existing block model and fundamental data, archived since mine closure. Historical data (including the resource block model and drill hole data) was recovered from computer archives by a former Panguna mine employee familiar with the various obsolete data formats, thus maintaining an unbroken chain of custody of the data by Rio Tinto since operations were suspended. No additional data were collected as part of this study.The extensive data and documentation archive facilitated a sufficiently detailed evaluation of the fundamental data and model to support an updated resource statement. Table 1 of the JORC Code was used to guide the model validation process.Reconciliation of blasthole and metallurgical plant data with the reserve model, indicated that the copper and gold drill hole composite database was significantly biased towards underestimation in several key domains due to a combination of the following: mineralisation loss during core loss, core loss (minor), vertical drill holes failing to intersect sufficient subvertical mineralised fractures and veins, drill hole spacing too wide, and variable diamond drill hole core size. The resource model evaluation was based on three material types (all previously mined at Panguna), that were defined based on cut-off grade and rock type parameters: direct feed ore – material for delivery directly to the plant, preconcentration and screening ore – subeconomic material beneficiated to produce fines of economic grade, and waste. Three pit shells and designs were generated based on three separate sets of economic parameters. These economic parameters were also used to assign material types to the block model. The three resulting models were then evaluated against the corresponding pit shells.Classification of the resource was approached conservatively due to the inherent bias in the drill hole data. Consequently only Indicated and Inferred resources were tabulated.The study highlighted the importance of maintaining detailed documentation pertaining to resource estimates and operational history, particularly reconciliation, and the value that can be added by a simple, low-cost data compilation exercise.

Aug 22, 2011

By P Stoker

"An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation. Mining and exploration properties have a unique set of technical risks. Privately-owned companies considering investing in the resources sector can optimise their investment decisions by adopting a systematic technical assessment of acquisition assets, similar to the approach commonly adopted by public financial institutions and publicly-listed companies.Technical due diligence provides a process to identify key geological, mining, geotechnical, metallurgical, environmental and social risks and opportunities and determine the most likely business case and valuation of assets. Technical due diligence is commonly carried out in parallel with legal, commercial and financial due diligence, often involving the acquirer, to maximise the understanding of the investment.There are significant advantages in investors conducting a comprehensive technical due diligence, which typically involves site visits and project assessment to international standards by an independent, multidisciplinary team of experts. The outcomes provide the opportunity for the investor to make early, informed decisions and to understand and manage risks.Technical due diligence may be carried out at several stages: when considering and weighing up a number of investment options, prior to and during a transaction or immediately post-transaction. In the first stage, the outcomes will inform the choice of investment and, more particularly, whether there are any fundamental flaws in the projects being considered. In the second stage, due diligence outcomes can inform the level of investment and approach to risk management and planning. In the third stage, risks and opportunities can be investigated in more detail, allowing the investor to consider the best options to reduce risk and maximise the benefit of the investment.This paper presents a summary of the technical due diligence assessment process, its benefits to investors, common risks in mining and exploration projects known to cause mining asset write-downs and principal technical due diligence approaches.CITATION:Keogh, A, Stoker, P and Thomas, M, 2015. Benefits of due diligence in private equity mining investments – maximising value and unearthing common risks , in Proceedings PACRIM 2015 Congress, pp 115–126 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 18, 2015

The Australian coal industry has undergone sevenfold growth over the last 30 years and since 1985 has been the world's largest coal exporter. Three quarters of Australia's coal production is exported so its future is dependent on it remaining internationally competitive with other energy sources and other coal exporting countries. Coal is likely to increase its share of the energy market during the nine- ties as oil prices increase, new coal-fired capacity is commissioned and some form of nuclear energy is developed which is of acceptable safety standards to the community for use in the 21st century. Gas may take a part of coal's anticipated market share by the Year 2000. While coal exports will increase from China, Colombia, Indonesia and Venezuela and satisfy some of this additional coal demand Australia will also expand its export production, due to its existing advantages. The United States, Canada, South Africa, Poland and USSR seem unlikely to enjoy the same degrees of expansion and some, particularly Poland and USSR, will decline. Australia will always find it difficult to compete in the more distant markets due to levels of ocean freight, although its high quality coals will tend to partly offset such disadvantage.

Jan 1, 1988

By L Lorenzen, H Muller, L Bernard

Australian companies and consultants are becoming ever more involved in projects in African, South American, East European and Middle Eastern countries. However, significant differences in culture and approach to projects sometimes make these projects challenging for reasons that are not purely technical. Often the challenges are rather related to how the project owner and local authorities perceive the reality. These perceptions and sometimes unrealistic expectations regarding project costs and potential outcomes need to be addressed by the æWesternÆ project developer and consultant.This paper will discuss the specific experience of Snowden in studies commissioned by companies from such countries for the development of very large, low-grade gold deposits in some of the most inhospitable areas in the world. The paper will further review similar projects undertaken in other ænew worldÆ countries and compare these to the initial Snowden experience.As the process operating costs of operations in many of these countries are extremely competitive when compared to the typical Australian operating costs, the paper will review the operating costs and the factors which may be pertinent to a large project of this nature, both in the Australian and the ænew worldÆ context. Will Australian-based operations be able to compete in the global gold market when the gold price softens again, as it will do at some stage in the possibly not-so-distant future?CITATION:Muller, H, Lorenzen, L and Bernard, L, 2013. Challenges of developing low-grade deposits in ænew worldÆ countries from a mining consultantÆs perspective, in Proceedings World Gold 2013 , pp 307-314 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 26, 2013

By A Bax, G Wardell-Johnson, W P. Staunton, J McGrath, J J. Eksteen

Since 2001, the AMIRA P420 gold processing technology project series has been studying the recovery of gold using gravity devices, with particular emphasis on the centrifugal units, Knelson and Falcon concentrators. The work has entailed the surveying of operating gravity circuits in Australia, Africa and North and South America.This paper reviews some of the results and lessons of these studies, including common circuit operating and design factors, which limit gravity recovery; pointers towards effective modelling of gravity circuits; and the contribution of gravity to overall gold recovery.CITATION:Wardell-Johnson, G, Bax, A, Staunton, W P, McGrath, J and Eksteen, J J, 2013. A decade of gravity gold recovery, in Proceedings World Gold 2013 , pp 225-232 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 26, 2013

By F Cesnik

The past few years has seen a concerted effort to improve the recovery of gold along with its co-product copper from the æhigh-gradeÆ Ridgeway concentrator at Newcrest Mining LtdÆs Cadia Valley Operations. A number of initiatives were identified and implemented, culminating in a sustained improvement in recovery of approximately three to four per cent for both metals. The key projects that contributed to this improvement included the installation of a 355 kW Metso stirred media detritor (SMD) to create a regrind circuit, installation of froth crowders on the scavenger circuit, installation of a Falcon SB2500SE gravity concentrator as part of the regrind circuit to improve gold recovered to bullion on-site and the optimisation of the grinding circuit to reduce the 80 per cent passing size (P80) of the primary grind from 160 to 121 ¦m for the same throughput via process control, cyclone and ball charge optimisation. This paper will focus on the supporting test work, where applicable, that was used as the design basis for the project, but more importantly the plant data before and after the changes to clearly identify the improvements to plant recovery.

Jan 1, 2007

By J Bean

Iluka Resources Ltd developed the Jacinth-Ambrosia Mine (Jacinth) in the Eucla Basin during 2009 and 2010. In this arid climate the operation relies on hyper-saline groundwater from a palaeochannel for process and potable water supplies. The water is hyper-saline, acidic and mildly reducing, with high ferrous iron concentrations. Ferrolysis commences on exposure of water to oxygen, resulting in increased acidity and the conversion of dissolved ferrous iron to insoluble ferrihydrite. The unstable groundwater forces a careful balance between interventions relating to maintaining pipeline efficiency, corrosion protection and processing aspects. Providing an oxidising environment at the head of the pipeline will result in the precipitation of akaganenite and goethite in the pipeline, which over time reduces pipeline efficiency. However, sending too much ferrous iron forward may reduce processing performance.The processing plant experiences changes in water chemistry in response to the variability of iron concentrations and pH within the pipeline, and the spatial and chemical variability of ore. As the main orebody at Jacinth contains little buffering capacity a source of carbonate in the overburden is carefully used to allow the cost-effective control of process water pH.This paper highlights the importance of understanding the chemistry of saline make-up water, ore, and overburden when designing water treatment facilities and heavy mineral processing facilities.

Oct 5, 2011

By I Sherrell, R Jain

Worldwide iron ore feed grades are trending downwards and will continue to do so with the increasing difficulties of upgrading ores. This has led to operations looking for ways to capture current tailings that still contain valuable material. In the past, these were acceptable to dispose of, but this practice is no longer economically feasible. With the increasing trend of re-mining previous tailings deposits that could be decades old, new equipment designs have been introduced to upgrade current or historic beneficiation plants. These designs can effectively upgrade these tailings to saleable products.Outotec conducted test programs for upgrading iron ore tailings from flotation rejects, thickener underflow or tailings dumps on samples provided by customers around the globe. The studies utilised Outotec’s SLon vertically pulsating high-gradient magnetic separator in combination with preprocessing equipment such as low-intensity magnetic separation, screen or scrubber and flotation for downstream processing of the magnetic concentrate. A review of the equipment required to economically process these tailings is provided, along with testing data and industrial implementation examples. The effect of different operational and design parameters on Fe grade and recovery from processing each tailings sample has been highlighted.CITATION:Jain, R and Sherrell, I, 2015. Iron ore tailings reprocessing to maximise ore production, in Proceedings Iron Ore 2015, pp 149–158 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

By R A. Anand, N N. Viswanathan, M M. Pande

Slags are the most voluminous solid by-products generated in pyrometallurgical operations, and, as such, finding an application for these oxidic materials is pertinent to maintaining resource efficiency. In particular, pyrometallurgical copper production is associated with high slag rates, typically ranging from 2.2 to 3.0 tons of slag per ton produced copper, which necessitates slag valourisation. A possible application for these iron silicate slags is as supplementary cementitious materials (SCMs), which effectively lowers the CO2 emissions per ton of cementitious material. Although utilising iron silicate slags as SCMs has been studied in previous work, the scientific literature has limited data on the effect of composition on the inherent reactivity in cementitious systems. More specifically, no reports on the impact of FeO/SiO2 ratio have been presented in previous publications. Therefore, the present study aimed to isolate this parameter in a synthetic FeO-SiO2-Al2O3-CaO-MgO-Cr2O3 system. Since the amorphous content is a pertinent parameter for SCMs, a high-temperature confocal laser scanning microscope (HT-CLSM) was utilised to assess the crystallisation behaviour at continuous cooling conditions. Furthermore, high-temperature rheological experiments were conducted to measure the viscosities of the slags in relation to the crystallisation behaviour. The experiments showed that depolymerising the slag by increasing the FeO/SiO2 ratio generated a less viscous slag, which showed higher tendencies for crystallisation. Furthermore, experiments assessing the inherent reactivity as an SCM showed that depolymerising the slag by increasing the FeO/SiO2 ratio as the sole independent parameter generated an initially more reactive slag. However, replacing SiO2 with FeO was found to negatively affect the reactivity as measured over seven days within the tested compositional range.

Jun 19, 2024

By R E. McIvor, K M. Bartholomew

Classification system efficiency (CSE) is a simple, powerful metric that provides a comprehensive measure of classification system performance. CSE directly quantifies the amount of coarse solids in the mill, and as a result, also directly quantifies the percentage of mill power being used effectively. In this manner, it is an effective, practical grinding energy efficiency metric.Three independent variables drive CSE: circulating load ratio, sharpness of classification, and classifier bypass. Due to practical downstream constrains on per cent solids, improvements realised by increasing circulating load reach diminishing returns as sharpness of classification and bypass deteriorate in the most commonly used classification device, the hydrocyclone. This combination of effects leads to the use of CSE, and its relationship to operational economics, as an objective circuit optimisation criterion.Its simplicity in measurement makes CSE a useful tool for the plant metallurgist, and it is not subject to a great amount of experimental error. CSE provides the plant operator a fast, simple, and effective means to evaluate the performance of the plant classification system. Improvements in CSE relate directly to circuit throughput and energy efficiency. This paper, through description and plant case studies demonstrates the power and utility of this emerging grinding system optimisation metric.CITATION:Bartholomew, K M and McIvor, R E, 2013. Classification system efficiency - a comprehensive closed-circuit grinding optimisation metric, in Proceedings World Gold 2013 , pp 389-394 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 26, 2013

In the course of an investigation of the influence of bismuth on copper carried out some years ago, (1) the author found that phosphorus exerted a beneficial effect on bismuth-copper alloys of low bismuth and oxygen content by neutralizing the embrittling effect of the bismuth. In the intervening years, a further examination of bismuth-phosphorus-copper alloys has been canied out and the influence of other elements and combinations of elements on copper containing bismuth has been studied.The results recorded in the present paper are part of this investigation.MATERIALSAll the alloys were made from high-grade copper (KS.A. wire-bar) of the following composition: copper 99·95%, oxygen 0,040'%, iron 0·0015%, sulphur less than 0-001%, bismuth less than (j>'OOl%, other elements each less than O· 0010/<-. The bar was hot rolled and cold drawn to strip which was cut into short lengths and cleaned in nitric acid ready for melting.A piece of this 'strip was drawn to wire 0·08 in. diam., annealed at 5000 C, and measured for electrical conductivity as a check on purity. The result was 101·5% of the I.E'.C. standard.In making the alloys, phosphorus was added as 14% phosphor-copper, bismuth as 17% bismuth-copper, and the other constituents either as copper alloys or as elements of a high degree of purity.PREPARATIQN OF STRIPSThe charges were melted in plumbago crucibles (Morgan salamander brand) in an oil-fired furnace, Le;, in the manner commonly adopted in industrial practice. The copper was first melted under charcoal, well stirred with a chaned stick, and the necessary alloying elements added and stirred in with the stick. The weight of a charge varied according to requirements but generally was about 4 lb. The charges were poured into slightly tapered brass moulds heated to about 1000 C and dressed with a mixture of mineral oil and tallow. They were not only poured under charcoal through the burning mould dressing but also- through a ring of flame produced by burning kerosene on asbestos cord wrapped round the top of the mould. Experiments carried out with plain copper proved that by this means oxygen could be excluded from the stream of metal. The billets were 7·5 in. long x O·83 in. diam. x 1·3 lb. weight.The billets were cropped about 1 in. from the top, cleaned in nitric acid, and measured for density by the usual method of weighing in air and -in water. As these measurements were required only as a check on casting, technique a high degree of accuracy was not essential (accuracy = -+ 0·2%).

Jan 1, 1942

By J Seppelt

The Kanmantoo Copper Project is owned and operated by Hillgrove Resources Limited and is situated in the Adelaide Hills region in South Australia. Mining in the area has taken place off and on over the last 140 years to recover metal from both copper and lead-zinc ores. This paper focuses on the commissioning, ramp up and future outlook for the copper concentrator at the Kanmantoo Copper Project with major focus on issues encountered and operating performance achieved to date.CITATION:Seppelt, J, 2012. Commissioning of the Kanmantoo Copper Concentrator, in Proceedings 11th AusIMM Mill OperatorsÆ Conference, pp 127-136 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 29, 2012

By E Bouchard March, F Lavoie, B Legare, K Bourassa

Quebec Iron Ore (QIO), a subsidiary of Champion Iron Limited (Champion), completed the restart of the Bloom Lake iron ore mine located in the heart of the Labrador Trough region of Northern Quebec, Canada in February 2018. Prior to its restart, the concentrator flow sheet underwent major upgrades which brought the iron recovery to the highest of all Labrador Trough operations. After two profitable years of production, QIO, supported by Soutex, started to look at technologies to improve its current performance and integrate into its expansion project flow sheet. From the lessons learned while optimising Phase 1, the addition of a scavenger-cleaner processing stage was identified as an improvement opportunity to increase recovery, produce a higher-grade product, and further improve the stability of concentrate quality. In 2019, the NI-43101 feasibility study for the Phase 2 expansion, aiming to double the production of high-grade iron ore concentrate, was published. Based on the metallurgical test work, the hydraulic classifier was selected to perform the scavenger-cleaning duty for its well-established performance and known behaviour at the cleaning step in the Phase 1 plant. To validate laboratory results, a pilot scavenger-cleaning hydraulic classifier was installed in Phase 1. Although the hydraulic classifier was selected for the feasibility study, metallurgical test work performed with the REFLUX® classifier showed interesting potential. It was thus decided to also install a pilot RC300 Reflux classifier at the scavenger-cleaning stage in Phase 1. Despite their apparent great similarities, the metallurgical performance was significantly different, and many dozens of sampling campaigns highlighted the different performance of both pieces of equipment considering the feed material particle size. This article presents the pilot plant results in terms of recovery, selectivity and stability for both the Reflux classifier and the hydraulic classifier operated in a scavenger-cleaner stage at the Bloom Lake iron ore concentrator.

Nov 8, 2021

Many persons hold the opinion that the metal indus- ries are fortuitous and that the occupation is one of sordid toil, and altogether a kind of business requir- ing not so much skill as labour. But as for myself, when I reflect carefully upon its special points one by one, it appears to be far otherwise. So wrote Georgius Agricola in 1556. He could have been espousing the sentiments of an indus- trial archaeologist investigating mining sites in 1986. South Australia has a very rich legacy from its industrial past-especially in the area of its mining history. Industrial archaeology, which is part of the broad field of archaeology, is concerned with the material and documentary remains of this industrial past. This includes the products and processes of manufacturing, industrial, technolog- ical and engineering activity and their relation- ships to people and the environment. `Archaeology' immediately conjures up the image of excavations in Greece or Eygpt. Excavation however is only a part of archaeological methodology. Industrial archaeology utilizes documentary historical rec- ords combined with field survey techniques (both above and below ground) to create a composite picture of the past. Interest in our recent past has burgeoned in Australia in the last few years. This interest manifests itself in many ways-the unprecedented popularity of Australiana and col- lecting, the plethora of Australian historic films, the growth of the National Trust, local historical societies and genealogical research. Fortunately these trends have been reflected in academic and legislative circles. Various univers- ities, institutes of technology and colleges of advanced education run courses in aspects of cul- tural resource management and conservation of the historic environment. These courses are com- prised of archaeology, architecture, geography, his- tory, materials conservation, museum studies, and national parks management and planning.

Jan 1, 1987

By I D. Gregson, A Gandhe, A S. Garcia, K M. MacAndrew

"Falls of ground still cause around one-third of all underground mining fatalities. The recent introduction of mechanised room and pillar working into Indian coalmines is an example of the application of new design by measurement and safety monitoring strategies, which can be used to reduce falls of ground risks in mines.Rock Mechanics Technology, now part of Golder Associates UK Ltd (Golder), is providing rock bolt support and pillar design services to the mines using a design by measurement approach. This involves in situ monitoring to confirm support and pillar designs and pillar extraction sequences.Site examples are given of the support designs determined and the monitoring programs undertaken for both design and safety.Routine safety monitoring of roof movement using telltales is also described. A new auto warning telltale has been developed specifically to warn of imminent caving as pillars are extracted.The approach used by Golder has played a major role in ensuring the success of these projects. As a consequence, mechanised room and pillar working is now firmly established in India, and wider application is planned to help meet future demand for coal.The experience confirms that the design by measurement method for this application has important advantages over conventional design approaches using analytical or empirical methods. Firstly, it measures the design performance or outcome rather than trying to calculate or predict it. Secondly, it provides the opportunity for the design to be adjusted to obtain the optimum outcome. Thirdly, it can do this at a local level, so that the support design can be matched to changing conditions to give the most cost-effective design. Finally, it incorporates long-term monitoring of support performance, again at a local level, so that subsequent change can be identified to enable corrective measures to be implemented in a timely manner and to ensure that ground control safety is maintained.CITATION:MacAndrew, K M, Garcia, A S, Gregson, I D and Gandhe, A, 2014. Application of design by measurement for support and pillar design in mechanised room and pillar coal mining in India, in Proceedings AusRock 2014: Third Australasian Ground Control in Mining Conference, pp 65–76 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Nov 5, 2014

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