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Detailed cash flow forecasts have always been almost essential as a basis for judging the viability of proposed new mining projects. In recent years attempts have been made explicitly to take account, in such forecasts, of the uncertainties surrounding the assumptions upon which they are based. With the risk analysis approach, Monte Carlo simulation of the cash flows indicates in probability terms the combined effect of these uncertain basic assumptions. While the use of risk analysis has been widely discussed, few specific applications to real projects have been reported. The application of such an analysis in the feasibility study of the large new Deelkraal gold mine presently being established on the Far West Witwatersrand gold fields by the Gold Fields Group in South Africa is described in the paper. The paper also indicates how one of the major sources of uncertainty, namely the gold content of the ore, can be`quantified in objective probability terms. This feature distinguishes the application fran other published accounts in which only subjective probability assessments have been utilised.

Jan 1, 1977

The need to estimate the block size distribution of a jointed rock mass is of great importance in the design of blasting rounds to attain a pre- established fragmentation. Other Geomechanics topics, such as ,hydraulic behavior of rock-masses, as well as the determination of their strength properties, also require the accurate prediction of a rock-mass composition in terms of block size taking in due account the three dimensional interference of joints and other geologic discontinuities. In this paper, a method for computing the block size analysis of a jointed rock mass is described, using as input the common geologic data (dip and strike) of fracture planes existing in a rock bench prior to blasting.

Jan 1, 1977

The fragmentation of whole rock by blasting has an influence on the subsequent loading, hauling and crushing operations. However, no method of calculating the frag- mentation has yet been developed. This paper gives a method of calculating the fragmen- tation for the simplest form of blasting, i.e. cratering. Cratering consists of the detonation of a spherical charge of explosive in a blasthole breaking to one free surface. This paper gives a method of calculating the extent of the system of radial cracks generated by the explosive in the rock. This system of radial cracks is then used to calculate the fragment size distribution curve from blasting. The calculated curves are shown to be in good agreement with experiment.

Jan 1, 1977

By R Dimitrakopoulos, R Goodfellow

One of the primary objectives when optimising a mining complex is to maximise its value for the primary stakeholders. In order to achieve this objective, it is necessary to holistically optimise all aspects of the mining complex, including decisions of when to extract materials from the available sources, how to blend or stockpile these materials and how to best use the available processing streams to satisfy customer demand. Existing methods for global, or holistic, optimisation ignore the compounded effects that risk has on the performance of a mining complex. Over the past decade, several stochastic optimisation approaches have been proposed to integrate various forms of uncertainty into the open pit mine design and production scheduling. These methods, however, are limited in their ability to simultaneously optimise the production schedules for the portfolio of mines, material destination policies, the use of the available processing streams and the various products that are produced at each location of the mining complex.This paper aims to discuss a new method for the global optimisation of open pit mining complexes with geological uncertainty. The proposed generalised methodology is capable of modelling and holistically optimising mining complexes, including aspects related to production scheduling, blending, stockpiling and non-linear interactions that often occur in practice, but are over-simplified in existing models. Two case studies are discussed to highlight the need for these complex, stochastic optimisers. First, a case study for a nickel laterite blending operation highlights the need to integrate geological uncertainty into the optimisation in order to ensure product quality constraints are respected. Second, a case study for a copper-gold mining complex highlights the added value when simultaneously optimising the production schedule and the stockpiling and treatment of extracted materials.CITATION:Goodfellow, R and Dimitrakopoulos, R, 2014. Stochastic optimisation of mineral value chains – developments and applications for the global optimisation of mining complexes with uncertainty, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014 , pp 13–22 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014

Several coal preparation plants are presently "automated" to the extent of automatic sequencing and interlocking via digital means, together with closed loop control on various level and density circuits. This paper will explore the potential for second generation automation utilizing on-stream ash analysers and other measuring elements so as to optimize the total metallurgical process. This would enable maxim-ization of recovery, improved product homogeneity and minimum reagent consumption.

Jan 1, 1985

By A G. Shellsh, R J. Henham, J R. Foley

The Porgera Gold Mine, west of Mt Hagen in PNG is a large open pit and underground operation currently producing gold at the rate of almost one million ounces per year. This deposit has produced some 8.8 million ounces to-date and has current reserves of 103.4 million tonnes @3.2 g/t Au. The Porgera Joint Venture has invested over $A1 billion in infrastructure in this project. Technical management of this operation involves the interrogation of some 700 000 metres of diamond drilling, some 50 000 blastholes per year, and very large volumes of laboratory, geotechnical, environmental and production reporting data. Over the past seven years this data has been consolidated into a single centralised, relational database which now acts as the single reference point for all the technical application systems used for surveying, grade control, production reporting, deposit evaluation and modelling. Data transfer to application programs and management systems is controlled by the centralised database, this process at times involving a two-way, real-time, binary data transfer. The benefits of a specialised database application include security and integrity of the data asset, ease of access, and performance in a multi-user environment. This replaced fragmented, inconsistent data sets stored inefficiently as individual, unindexed, variably formatted files associated with the different application programs. Most importantly, the database has allowed mine management at all levels to make timely, confident investment, cash flow and optimisation decisions as it provides the primary link between the deposit and operational data sets on one hand, and the application programs and management and performance measurement systems on the other. This paper discusses the economic value and importance of technical data in terms of the resource asset and the means by which this data is being managed and used at Porgera.

Jan 1, 2000

The importance of orebody definition and optimisation in project development cannot be overstated. Inappropriate orebody definition is the single most important reason for project under performance and/or failure. Without the firm foundation of good orebody definition, the structure of a project cannot be assembled reliably. Many factors need to be considered in the process of orebody definition. These factors are well summed up in paragraph 123 of The Institute's Code and Guidelines for Assessment and Valuation of Mineral Assets and Mineral Securities (Valmin Code). The factors range from the initial geological data through assaying, geotechnical and hydrogeological factors to mining and metallurgical considerations. There are other factors which also need to be considered including marketing and environmental factors. This paper briefly reviews some of these factors and their impact on project development. Three examples are presented where one or more of these factors have had significant impact on the development of the Project.

Jan 1, 1997

One of the often overlooked factors affecting the capital investment decision in new or existing plants is the value of stock holdings necessary to maintain the plant. This paper puts forward a simple decision matrix on whether a part should be stocked depending on 1. the criticality of the item of equipment in terms of the effect on cash flow of its failure, 2. the lead time of the part, and 3. the stock holding value if it were Stocked.

Jan 1, 1986

The economic future of the Palmer Goldfield lies with both the gold mining and the tourist industries. An equitable solution to the competition between the two involves putting a dollar value on the historical evidence there for our Australian heritage.On 23 October 1986 the Queensland Government gazetted the Palmer River Reserves R16 of 16 200 hectares, in recognition of the competing land uses emerging in the region. The intention is that historically significant gold mining sites and relics will be preserved in situ with provision for continued gold exploration and mining.This paper explores and explains the administrative process of achieving a set of Management Guidelines for Rl6 within the Queensland political milieu. The result of that process is the achievement of some of the highest preservation standards in Australia, prohibiting surface disturbance of defined Category 1 sites, and no mining proposal has yet been refused approval.The Palmer Goldfield R16 experience is a major step in achieving a co-ordinated approach to both current mining and preservation of Queensland's mining heritage.

Jan 1, 1990

By Y Li, L Zhang, G Li, S C. Dominy

Qiagong skarn iron (copper) deposit is located in Xietongmen County of Tibet, China (N 29¦52Æ14.9ö, E 88¦24Æ10.3ö). It is situated at the middle-western Gangdese porphyry copper-belt. Mineralisation is related to a Himalayan porphyry intrusion, with the mineralised body occurring at the contact zone between the Tertiary Takena Formation carbonate rocks and Himalayan monzonitic granite porphyry. The melt, melt-fluid and fluid inclusions were observed in early quartz, with most abundant fluid inclusions in quartz, calcite and garnet from the skarn. The geology and inclusion assemblage show a close relationship between iron (copper) mineralisation and a Himalayan porphyry intrusion. Based on preliminary inclusion studies, this paper discussed the characteristics, evolution of ore-forming fluid and affiliation to the Himalayan porphyry intrusion. An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation.

Jan 1, 2008

By Guarascio M, Massacci P

In process simulation, more reliable prediction of industrial results and evaluation of data for design purposes and process optimisation may be attained by the combined use of: the modelling and simulation of ore characteristics, and 2. the modelling and simulation of the process. It is well known that geostatistical methods allow the defining of models of orebodies in which the variables considered are the grades of the valuable components. These models are proper for reserve estimation, geostatistical contouring, design and simulation of the exploitation method, and, in addition, for evaluating the variability of the ROM which is expected to be fed to the processing plant. However, no data are normally incorporated in the orebody model in order to evaluate the ore characteristics relevant for a reliable process simulation. The procedure for process simulation aimed at predicting plant results normally used so far consists in collecting samples from different orebody sites and building up a so-called 'representative sample'. On this sample, the ore characteristics (eg liberation, washability, grindability, etc) and the processing tests are referred to as the 'average behaviour in the orebody', assumed constant. A more reliable methodology consists in collecting samples from different orebody sites, in performing tests to characterise the samples from the point of view of the process (ore patterns), and in using synthetic parameters (process features). The values of the parameters are processed using geostatistical methods in order to develop a model for simulating the feed to the process. The estimation may thus be referred to the amount of recoverable minerals instead of to the existing minerals. Furthermore, the selection of the processes, the sizing of equipment and the design of control devices, as well as the prediction of results, become more accurate and reliable.

Jan 1, 1993

Declining from surface provides access, haulageway, ventilation and provision for ser- vices for stoping and development. Three boom jumbos and 3.8 m3 capacity diesel loaders are used in decline development, the majority of which is driven at a gradient of 1 in 9. Primary ventilation is drawn from the mine through raisebored airways and high pressure contra rotating fans provide secondary ventil- ation. To meet schedules a special decline crew was formed on similar lines to a mining con- tractor. The basis of payment for the mining party was changed and the net effect was to accelerate development. Ground conditions demand constant support and this is achieved with chemical anchor rock bolts, multistrand grouted bolts and shotcrete. Major local shear zones are encountered and when they are to be driven through, a combina- tion of the above methods, involving a spiling technique, is used.

Jan 1, 1977

By Wright D. C

The operation of the cyanide-sensitive Mintek/TB1 kegold electrode was studied in the laboratory, with regard to equilibration time and drift, the effects of pH, stirring, salinity, dissolved oxygen, zinc and copper(I) ions. Methods for valid calibration in the range 20-600 mg(NaCN)/L and pH values in the range 9 - 12 in the absence of copper were also studied. Increasing the salinity beyond a threshold of 40 g(NaCI)/L improves calibration and measurement. The sensitivity is 91 mV per decade change in the concentration of ionic cyanide, and output is reproducible to within 10 mV with attention to the factors listed above. However, salinity of 40 g(NaCI)/L also sensitises the electrode to interference by copper(1) ions. This copper sensitivity seems capable of saturation, suggesting a research strategy for possible remedies.

Jan 1, 1996

Three methods of gold analysis are briefly described highlighting some of the problems and advantages of each. The variation of results between samples and splits and due to method preparation are illustrated. The mean percent difference of the fire assay values from the means of sample split values for three cases is 15%. Finally, a comparison of the aqua regia atomic absorption spectroscopy and fire assay fusion AAS techniques is made. This shows that the mean precision, the ability to obtain the same value, of the methods at 98% confidence are +30% and +15% respectively. The fire assay fusion atomic absorption spectroscopy method is relatively more accurate than the aqua regia method.

Jan 1, 1982

By P Gardner

The Kanowna Belle gold mine in Western Australia has reached a depth of 1000 m on the way to 1300 m. A feasibility study undertaken in 2006 identified the mining of E-Block as both technically and commercially feasible. One of the major risks identified in the study was the ventilation capacity, as the existing primary ventilation system would not support the production schedule for mining and a major system upgrade would be required. Failure to provide the necessary airflow would put the project at risk. A review of the airflow requirements and infrastructure options detailed in the feasibility study was undertaken to ensure that the assumptions and design were optimised. This review recommended a minimum airflow of 206 m3/s, but by acknowledging the necessary constraints imposed by mining at depth and re-engineering the mine layout to optimise the primary ventilation circuit, this requirement was reduced to 160 m3/s. This represents a 22 per cent reduction in airflow and a reduction in capital cost that will see mining at depth become economically feasible at Kanowna Belle. This paper discusses the processes that led to a redesign of the mining layout and highlights the importance of including the ventilation network in the optimisation process.

Jan 1, 2008

Robe River Iron Associates (RRIA or Robe) is widely regarded as the worldÆs most cost-effective, consistent and reliable supplier of iron ore. It has been in operation since 1972 and globally is the fourth largest seaborne trader in iron ore exporting 25.5 million tonnes of -9.5 mm sinter fines and 4.5 million tonnes of pisolite lump (-31.5 +6.3 mm) during 1999. Robe is a joint venture that controls major iron ore resources in the Pilbara region of Western Australia. ItÆs participants are North Limited with an interest of 53 per cent (65 per cent including minority interests) and Japanese companies Mitsui (33 per cent), Nippon Steel Australia (10.5 per cent) and Sumitomo Metal Australia (3.5 per cent). Robe River Mining Co Pty Ltd manages the project which is a subsidiary of North Limited and Mitsui.

Jan 1, 2000

Hindustan Zinc Limited has successfully installed an In-Stream Analysis and Process Control System in the flotation section of the Balaria Lead-Zinc concentrator at Zawar Mines. The system comprises In-Stream Analysis to continuously monitor lead and zinc levels in feed, concentrates and tailings streams, field instrumentation for reagent distribution and flotation cell level control linked to a central Distributed Control System for supervisory control functions. An intensive training scheme was conducted by the system supplier for concentrator metallurgical and instrumentation engineers. Since commissioning of the system in April 1989, Hindustan Zinc has enjoyed the benefits of improved lead, zinc and silver recoveries, improved concentrate grade control and reduced reagent costs.

Jan 1, 1991

During 1991 - 1993 the author interviewed approximately thirty senior managers of varying responsibilities in either the engineering, construction or operation of a heavy industrial facility. The purpose of the exercise was to determine the factors driving a deterioration of the working relationship between the engineering and the operating company following practical completion of a major project. From the research a number of conclusions have been drawn as to the root cause of the deteriorating relationship. For this paper we are drawing on this initial research and our ongoing experience of solving problems of this nature to present some fundamentals that can be used to break the breakdown maintenance cycle.

Jan 1, 1998

The "Line of Lade", a generic term by which the great Broken Hill orebodies are collectively known, lies in the County of Yancowinna, New South Wales (NSW) at the south eastern extrenity of the Barrier Ranges. As the township of Broken Hill grew to a city (incidentally it was officially named Willyama but by exerting an enterprising community independence which is still evident today it outplayed officialdom and retained its descriptive name), two major areas of population developed, Broken Hill and South Broken Hill. These two main civic divisions are respectively north west and south east of their dividing line, the surface expression of the orebody. See Fig. 1. The border between the States of NSW and South Australia (SA) is drawn along longitude 1410 East whilst the city of Broken hill's official longitude is 1410 28' 14" East which means it is only 50 km from this political boundary. A latitude of 310 57' 03" South contributes to the harsh climate of high summer temperatures which is not mollified by any significant increase in altitude for Broken Hill is only 300 m above sea level.

Jan 1, 1983

Basic premises for evaluating special characteristics of gold-bearing porphyry metal systems stem from their contrasts with properties of the class as a whole. Included features are differences in geologic, thus tectonic, environments, subtle but real differences in the proportions of accessory metals Mo-Ag-Au that are regionally and within some regions, tempo-rally distinct, contrasts in the Ag:Au ratios, petrological-geo-chemical as well as isotopic differences between intrusive suites, the age and nature of host terranes, contrasts in alter-ation style, and zoning variations of mineralogical and physical properties of rocks. These properties are linked in various ways in different regions and suggest that in large gold-bearing systems where gold may be uniformly distributed, environ-ments of emplacement, and compositions or sources of igneous "progenitors" may dominate in importance over processes, and that systems in which gold is zoned are processes-dominant.

Jan 1, 1990