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By M Russ, J Gediga

This paper shows an economic feasible approach to implement greenhouse gas (GHG) reduction measures into the mining and metallurgy industry (MMI). The goal to improve energy consumption is directly linked to the reduction of GHG emissions in the MMI. A baseline scenario of the considered reference system and of the respective reference year has to be designed and analysed. In a second step an analysis of the same operation using the best available technology (BAT) processes is carried out to generate a basis for a benchmark system. The identified gaps will be reported and the potential GHG emission reductions will be put into relation to the investment, running cost and generated carbon credits of the new process technologies to be implemented. This economic feasibility calculation is necessary to realise a cost efficient GHG reduction roadmap decision-making for implementing new technology into the companyÆs business operations. The GHG reduction roadmap is developed using the marginal abatement curve approach.

Jan 1, 2009

By J Cook

In this paper we present a case study of the challenges and opportunities associated with the development of cultural heritage management strategies at the Lihir gold mine in Papua New Guinea. We discuss the contextual drivers and constraints, and outline the ways in which Lihir Gold Limited is aiming to set new industry bench marks for the region through the development of values-based best practice cultural heritage management programs. This approach is largely based upon a compliance partnership with a local stakeholder group. We argue that such partnerships are a prudent means of mitigating company risk, while constituting a far more necessary tool for local people in the reconceptualisation and negotiation of the experiences of significant social change and modernisation experienced in the context of recent resource development.

Jan 1, 2009

By B Jones, M Chappell

Installing ground support correctly is not an easy task, whether lack of operator training, poor ground conditions or underperforming equipment. Confirming the quality of installation can help with planning and remedial works and help to maintain a safe working environment. A 2?m bolt with 700?mm of encapsulation will pass a 10?t pull test (assuming ground conditions permit); however, it will not provide any data of the unencapsulated length and thus the ability to withstand corrosion. Complimentary testing in the form of non-destructive testing (NDT) can provide factual data that leads to the assessment of the quality of the encapsulation. By improving the quality of the encapsulation, the risk of corrosion is reduced, the ground support durability is improved and hence the asset life is enhanced.This paper presents a case study of a trial using the NDT system RokTel™. Installations of varying quality were installed and tested. The characteristics tested were corrosion, load and free length. These characteristics can be tested and assessed for cable bolts, thread bar bolts and split sets. The aim of this paper is to present NDT testing as a viable method for assessing installation quality and ongoing performance of the ground support.CITATION:Jones, B and Chappell, M, 2014. A non-destructive testing method for measuring bolt condition, in Proceedings AusRock 2014: Third Australasian Ground Control in Mining Conference , pp 307–314 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 5, 2014

By M W. A Asad, E Topal, D S. S Sandanayake

Underground mine planning requires an optimal stope layout as a prerequisite for the definition of an optimal production schedule. The procedure to generate an optimal stope layout considers an orebody model and economic parameters as inputs. It evaluates all possible combinations of mining blocks and creates a set of stopes by satisfying the physical mining and geotechnical constraints. Thus, the procedure is computationally complex, and generating a solution to the problem is a challenge. This paper presents an implementation of a new heuristic algorithm that solves the stope layout problem. In two case studies, the algorithm achieves 11.2 per cent and 22.5 per cent superior solutions to the industrially available maximum value neighbourhood approach.CITATION:Sandanayake, D S S, Topal, E and Asad, M W A, 2014. Implementing a new heuristic approach to the underground mine stope layout problem, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014 , pp 243–248 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014

By J Foster

The Lanfranchi Nickel mine is located approximately 48 km south of Kambalda in Western Australia. Mining first commenced in the mid-1970s under the previous owner, Western Mining Corporation Ltd. After two years on care and maintenance, Panoramic Resources (previously known as Sally Malay Mining Ltd) purchased the operation in November 2004. The site currently produces approximately 10?000 tonnes of nickel metal annually from approximately 430?000 tonnes of ore. The Ore is mined from four main orebodies; Deacon, Helmut South, Lanfranchi and Schmitz. The Helmut South orebody is situated approximately 790 m below surface and extends to a resource depth of 940 m. Horizontal thickness of the orebody ranges from 10 m to 45 m in width, with the average being 30 m. Previous mining at the Lanfranchi operations specifically the Helmut orebody, had a history of seismic activity. When Panoramic Resources acquired the operation it was decided that seismicity was going to be an issue and therefore a mining method needed to be selected that could effectively manage this potential risk. The dip of the orebody is quite shallow at 45º, with a 30º plunge to the south . The hanging-wall comprises of very weak ultramafics. Due to these factors the orebody posed several mining challenges. To safely and effectively mine the Helmut South orebody in the Lanfranchi Nickel mine, underhand cut and fill mining was selected as the most appropriate mining method. Paste fill comprising of cemented gold tailings was the backfill of choice. This paper is intended to convey some of the key learnings from the use of a mining method that has not been commonly practiced in Australia.

Mar 21, 2011

By F Phillips, E Deucker, J Kato

It is challenging to determine the optimal mining strategy to maximise value when a mine plan includes mineralised material which does not meet the full cost of mining but has value exceeding the variable cost of mining (‘marginal material’). Mining too much marginal material dilutes the operation’s head grade and undermines profitability. Conversely, leaving too much metal behind fails to achieve the full value of the endowment. Finding the balance between the two will maximise value delivered from the asset. This dilemma has traditionally been approached by calculating a suite of cut-off grades to define the grade of material that meets economic targets for an orebody (or zone within) and should therefore be included in the mine plan. A problem with this approach is that individual mining blocks within the zone have different costs, value and confidence levels, with each having economic co-dependencies between them. Blocks of identical grade but different mining contexts will have distinctly different economic outcomes. For example: • a block may be a low-grade increment or shell around a higher-grade stope; • a block may be available to be mined when there is spare mining capacity; or • a block may defer access to significantly higher cash flow material. Each of these circumstances would result in different value from the blocks if included as part of the mine plan. Cut-off grades calculated as averages over zones of material, or in isolation from schedule-based information, are missing the entire mining context that determines the ultimate economic outcome of making a mining decision. There are tools and techniques available to address this for open pit mining, however underground mining has different nuances. There are more intricate economic and physical dependencies between potential ore blocks, and importantly, the decision to leave material in situ can be made at any time. The case study in this paper explores a new methodology for underground mining, targeted towards strategic planning applications. It examines whether the economic logic usually applied via cut-off calculations can be implemented in the schedule so that optimal economic decisions can be made on a block-by-block basis, taking into account the mining context of the block, with the objective to maximise asset value. The results of the case study scenarios in Table 1 demonstrate the magnitude of the potential improvement in NPV that can be attained by a block by block valuation approach

Mar 15, 2021

By T Amiconi

Ernest Henry Mining commenced operations on its copper-gold project in August 1997, some two months ahead of schedule and ten per cent ($35 million) under budget. The mine is located in the highly prospective Mount Isa/Cloncurry mineral district in north-west Queensland, approximately 38 km north-east of Cloncurry. The developer and operator of the project is Ernest Henry Mining Pty Ltd (EHM), an incorporated joint venture between MIM Holdings Limited (51 per cent) and Savage Resources Limited (49 per cent). The deposit is located approximately 40 km north of Cloncurry in North West Queensland and lies beneath a featureless black soil plain with no significant creeks or gullies cutting across the site. Vegetation is sparse and consists essentially of Mitchell grass with occasional low shrubs and trees. Up to nine million tonnes of ore and over 43 million tonnes of waste will be extracted each year from an open pit operation to produce approximately 350 000 tonnes of concentrate when in full production.

Jan 1, 1998

By C R. Ure

To substantially reduce, if not eliminate, carbon dioxide (CO₂) emissions from ironmaking it is necessary to convert from blast furnace (BF) ironmaking using coking coal as the reductant to direct reduction (DR) ironmaking using hydrogen (H₂) and green electricity. Currently, almost all natural gas (NG) based direct reduced iron (DRI) production utilises iron oxide pellets in shaft furnaces, as opposed to fines in fluidised beds. Also, these pellets are ordinarily produced from high-grade magnetite concentrate, rather than hematite and goethite with typically higher gangue contents. The use of high-grade magnetite concentrate is driven by the preference to melt DRI in conventional electric arc furnaces (EAFs), thereby avoiding the basic oxygen furnace (BOF) for making crude steel (CS). However, in replacing BF with DR ironmaking it is not economically feasible to source enough high-grade magnetite to replace the lower grade hematite and goethite currently consumed. That is not to say that hematite and goethite, or even low-grade magnetite, cannot be used in DR ironmaking. However, their higher gangue content, resulting in higher slag production, requires that the EAF producing CS be replaced with a submerged arc furnace (SAF) that will produce pig iron (PI) for the BOF as does the BF. Here, critical issues to be addressed are, what are the technicalities in replacing high-grade magnetite concentrate with hematite and goethite and NG with H₂ in DRI pellet production and melting? This paper summarises certain relevant published information on DRI pellet research, test work and production together with relevant information on Pilbara ores. It attempts to illustrate the inter- relationship of composition and processing conditions on DRI pellet properties. It is intended to serve as a rudimentary guide to understanding the complexities of formulation, testing, evaluation, production and goethite and offer insight into this challenge.

Sep 18, 2023

By Q Gong, J Li, J Zhao, Y Zheng

Excavation by tunnel boring machines (TBMs) offers many advantages over conventional excavation methods, in terms of safety level, working environment, advance rate and overall cost. While TBMs have been extensively used in civil tunnel construction, they are also viewed as a competitive alternative to the drill-and-blast method for underground mining, attracting increasing attention from the mining industry. This paper presents an overview and general assessment on applications of TBMs in mines, by reviewing more than 60 TBM applications in underground/open pit coal and hard rock mines around the world. The projects range from the early exploratory trials of TBMs in mines in Germany, England, South Africa and America in the 1960s and 1970s, to the ongoing projects in Australia, China and Chile. The paper focuses on the geological compatibilities, the problems encountered, the solutions undertaken and the lessons learned from those projects. The paper summarises the progress made in the past and highlights the challenges faced by TBMs in mining due to complex ground conditions and geometrical requirements. With the technological advances of TBM and experiences gained in the past, more applications of TBMs are expected in underground coal and hard rock mines.CITATION:Zheng, Y, Gong, Q, Li, J and Zhao, J, 2014. A review of the applications of tunnel boring machines in mines, in Proceedings 15th Australasian Tunnelling Conference 2014, pp 691–704 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

By C Smith, R I. Maczkowiack, P D. Erskine

Open cut coal-mining has been conducted in the Bowen Basin region of central Queensland for almost five decades, and has disturbed an estimated area of 140 000 ha of agricultural land until 2011. Approximately one-third of the area disturbed by mining has been rehabilitated to pastures or bushland. However, none of the rehabilitated land has yet been assigned a specific end-use. This research project develops an approach for assessing end-use risks for the regionÆs mined land, and develops risk assessment models for selected end-uses. First, a web-based survey of stakeholders was used to identify risks to be assessed. The risks identified were surface erosion, subsurface erosion, bushfires, weeds and feral animals. The survey also identified possible end-uses of bushland and grazing. Second, conceptual risk models were developed based on the risk assessment concepts of likelihood and consequence specified in the Australian and New Zealand risk assessment standards. Likelihood was modelled using site characteristics and management factors that influence the occurrence probability of risks (eg surface erosion), while consequence was modelled using a set of site condition indicators and condition thresholds (changes in root-zone water-holding capacity, soil erodibility, vegetation ground cover and soil organic matter and transition probability to a non-preferred ecosystem type).The factors influencing likelihood and consequence for each risk have been integrated using Bayesian networks. The next step in model development is to parameterise the Bayesian networks using existing equations, empirical datasets, or expert opinion where data are not available. The parameterised models will be used to assess grazing and bushland end-uses against erosion, bushfire, weed and feral animal risks for rehabilitated mined land sites, with the purpose of identifying the relative risks associated with each end-use, and the landform design specifications and land management practices under which end-use risks are minimised.CITATION:Maczkowiack, R I, Smith, C and Erskine, P D, 2012. Risk assessment models for post-mining land use, in Proceedings Life-of-Mine 2012, pp 33-42 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 10, 2012

By J White

The Eyre Peninsula (EP) has been known for its iron ore for more than a century. Edward John Eyre noted the ironstone outcrop at what is now Iron Knob in the 19th century. Sir Douglas Mawson visited and reported on the geology of the lower EP in 1906, noting the widespread presence of iron stone and the likelihood of copper being associated with the iron stone. Despite this knowledge there has been only one successful iron ore mining region developed on the EP and that is Iron Knob and the Middleback Ranges which have been mined continuously since 1899. The Middleback Ranges can justly lay claim to be birth place of the Australian iron ore and steel industries.The discovery of large scale haematite resources in Western Australia meant that there was no need to seek out iron ore that needed benefi ciation. The low price of iron ore precluded further development of the EP and many other areas in Australia and overseas. This situation changed rapidly in the mid-2000s with the emergence of China as the world’s industrial power house and the soaring demand and price for many resources including iron ore. This triggered a flurry of activity across Australia and led to the rapid exploration and drives to develop the EP iron ore. A brief examination of the magnetic maps of the EP shows the wide spread presence of magnetite and associated smaller haematite deposits. A closer look reveals the magnetite deposits to vary in formation style and host rock lithology as well as being significantly altered by regional metamorphism. *This is an abstract only. No paper was provided for this abstract.*

Jul 11, 2011

By Van Barnefield J G

This paper is based on an evaluation project engaged upon jointly by Mount Isa Mines Limited nnd" IBM Austra]ia Limited. Mount Isa Mines Limited produces most of its copper from large underground open stopes within massive orebodies. Variations in the position and shapes of these stopes can result in improved metal recovery. An interactive graphics system has been developed to assist the mine design engineer optimise his design. The system can assist the engineer throughout the orebody visualis- ation, initial design and optimisation phases of his design. At any stage the engineer may call upon the display of gridded mesh data, digitized ore outlines or existing stopes or development (drives, cross-cuts). This information may be viewed in plan or any vertical section or in three dimensions with rotation. Tonnage and grade calculations may be quickly performed for initial stope outlines or for modifications to them during the optimisation phase. The system design is highly modular. An array of functions for the manipulation of coordinate and line information may be linked with the development or stope design functions in whichever way the designer desires.

Jan 1, 1977

By E C. F Hamman

Sunrise Dam Gold Mine is a large open pit mine 730 km NE of Perth, Western Australia. Contract mining commenced in the open pit in September 1996 in lake clays and saprolites with the first fresh rock mined late 1999, and the underground starting the first decline in October 2003. By May 2007, over 150 million cubic metres of material had been mined and the pit was 360 m deep with 80 m remaining before reaching the planned final depth in early 2008. A final cut-back in the northwest will commence in late 2007 with open pit mining in the Mega Pit expected to conclude in late 2010. The challenges of developing the pit can be divided into three phases:Soft materials û mining was in multiple staged pits and cut-backs in lake clays, saprolites, weathered material. The varying characteristics had a significant impact on mining methods and slope stability. Structural û mining was gradually exposing more fresh rock and the drive was to understand how major structures and lithological contacts impact on local and large-scale stability. This had a significant influence on mine design and scheduling. Slope angles û achieving the final slope angle is critical. This is done through application of high standards of final wall establishment and proactive geotechnical hazard identification and management. This includes dealing with the rapid rate of descent, interaction with underground excavations and managing rock fall risk. The paper discusses each of these phases, highlighting the geotechnical controls implemented to date, looking at their success and impact on mining.

Jan 1, 2007

By R Verreet

In April 2000 Mount Isa Mines installed hoist ropes of a new design on the double-drum winder at their P49 shaft. The ropes, CASAR Duroplast, were about three times as expensive as the previously used triangular strand ropes. The P49 shaft is situated at Mount Isa MinesÆ George Fisher Mine, located some 30 km north of Mt Isa. This shaft used the tried and proven 6 x 33 triangular strand style ropes. The rope life attained by these ropes at the time was acceptable due to many years of satisfactory performance. The following study indicates the improvement of service life using CASAR Duroplast rope in P 49 shaft, which depends on shaft and winder parameters of that particular shaft and cannot necessarily be generalised to other shafts.

Jan 1, 2005

By J Ta’ala, M Handyside

Mechanical sampling from conveyors has historically been a staple in the iron ore industry when information related to chemistry, sizing and moisture is required. In order to comply with ISO 3082:2009, samples can be taken either on a mass or time basis provided no bias is introduced by periodical variation in quality or quantity. With the introduction of mechanical sample carousels, you also have the opportunity to collect samples on a mass or time basis. In order to optimise automatic sample stations in a changing production environment, BHP Billiton Iron Ore (BHPBIO) has developed a simulation model that enables the various combinations of mass–mass, mass–time, time–time and time–mass to be investigated.The sample station model can utilise actual (variable) feed rates to achieve high resolution and enables the simulation of sample size variation. Cutter speeds and other settings can then be adjusted to better optimise the performance of the sample station with regards to optimal sample size as well as ensuring the sample station is in compliance with ISO 3082. The model can also assist process engineers in adjusting settings to better optimise the sample station and reduce unwanted events such as blockages. The model can be easily modified to conform to various sample station designs. This paper demonstrates the use of the model and the benefits that can be achieved.CITATION:Handyside, M and Ta’ala, J, 2014. Simulating time versus mass basis?sampling, in Proceedings Sampling 2014 , pp 155–164 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 29, 2014

By S Norman

The Water Delivery Alliance (WDA) was established to design, construct and commission the pump station and desalinated water delivery pipeline to link the desalination plant on the Kurnell Peninsula (constructed by others) with the existing distribution network at Erskineville, Sydney, Australia. The WDA consisted of McConnell Dowell Corporation Ltd (Macdow), Bovis Lend Lease Pty Ltd (BLL), Kellogg Brown and Root Pty Ltd (KBR), Worleyparsons Ltd (WOR), Environmental Resources Management Group Inc (ERM) and Sydney Water Corporation (SWC).Sydney’s Desalination Project is one of the initiatives to secure Sydney’s water supply against the effects of climate change, population growth and drought. The desalination plant, 100 per cent powered by renewable energy, can supply up to 250 million litres of water per day (mld), which is up to 15 per cent of Sydney’s water needs. The project involved the construction of an 18 km pipeline with an ultimate capacity of 500 mld to accommodate any future increase in the output of the desalination plant.The Alliance procured three full-face tunnel boring machines (TBM) from Herrenknecht AG to construct the 6.5 km of tunnel that would provide a conduit for the DN1800 welded mild steel cement mortar lined (MSCL) pipeline at a number of locations along the route. Nineteen shafts and 16 tunnels were required to complete this work.Crucially one of the TBM drives involved construction of a tunnel into Botany Bay under protected marine life habitats; enabling the connection of the MSCL water carrier pipeline into the dredged section of pipeline underwater, approximately 800 m off-shore in Botany Bay.This paper details the retrieval of the 17.4 m long TBM from the ocean floor upon completion of the Botany Bay tunnel allowing for subsequent use on the Project. Elements covered in the paper include the 835 m tunnel, design and construction techniques for the tunnel and recovery, and details of the methods used to install the DN1800 water carrier pipeline.

Mar 8, 2011

By Hebblewhite B, Humphreys D

An experimental mining project has been carried out in the Collie Basin to demonstrate the safe operation of total extraction mining techniques in the underground mines of the basin. To achieve this, it was necessary to design and install a means of controlling or removing groundwater so that goafing of the overlying strata could be safely achieved as part of the mining operation. The site chosen for the experiment was a triangular panel adjacent to Western No 6 (WD6) underground mine, which includes the 3 to 4 m thick Wyvern Seam beneath 130 to 180 m of overburden. The test area abuts a major fault on the downdip side. The overburden and underburden sequences include several horizons of permeable sandstones which form major aquifers. Water problems have long been recognized in all underground mines in the Collie Basin, and have previously prevented the successful application of total extraction mining. Following extensive hydrological investigations, dewatering and depressurization systems were designed to dewater the immediate roof aquifers and to depressurize aquifers higher in the sequence and in the floor. This would enable stable roof conditions to develop and controlled goafing to be achieved. The roof dewatering/depressurization procedure involved a combination of in-mine vertical roof drainage holes and conventional dewatering bores constructed from the ground surface above the mining trial area. The dewatering system was installed and operated for 29 months before the commencement of mining. Mining was eventually successfully completed in two trial panels using a retreat Wongawilli extraction system using bridge conveyors and continuous miners. Water inflow into the mine workings was channelled to a constructed sump area at the lowermost corner of the panel and pumped to the surface via vertical sump bores. The dewatering and depressurization measures adopted were successful in permitting the first controlled and systematic total extraction recovery of coal from the Collie Basin. This trial mining exercise demonstrated the potential for increasing substantially the recovery of coal from the Collie Basin, where previously recovery rates of around 30 percent from underground mining were commonplace, using only bord and pillar methods.

Jan 1, 1988

The relative contents of Au in a series of groundwaters from water bores and exploration drillholes, located near Au mineralisation at Stawell, Ararat, Clunes and Ballarat in central Victoria, were found to be clear indicators of relative proximity to mineralisation in each region. In the same series, waters with anomalous concentrations of As distinguished Au mineralisation in bedrock from secondary palaeochannel or deep lead Au. In some groundwaters, acid pH values, high sulphate relative to other anions and detectable concentrations of reduced Fe reflected sulphide minerals associated with bedrock Au deposits. Close to some ore zones, locally anomalous groundwater concentrations of Mn reflected the Fe carbonates that accompany Au in these zones. In addition, elevated concentrations of other elements provided geochemical signatures for the aquifer lithologies associated with Au mineralisation. Of the lithological indicators Co and Ni, U and F, Rb and Cs, Mo and Li respectively reflected the mafic, felsic, potassic rich and quartz zones, principally in the Stawell mine area and to a lesser extent those at Clunes and Ballarat. Mineral stability diagrams, based on groundwater activities of K', Mgt and H`, demonstrated that a series of ore-zone groundwaters follow a trend that conforms with a biotite to sericite to kaolinite alteration sequence in aquifer mineralogy. This is a good illustration of how present day groundwaters under surface conditions can reflect the underlying mineral sequences that accompany these Au deposits. These observations around mine areas suggested that groundwater chemistry could provide a rapid and cost effective method of assessing prospectivity for An of extensive areas in central Victoria. To test this, regional sampling and analysis of 355 bore waters was carried out in a region where potential An bearing rocks are covered by Mesozoic and Cainozoic sediments and volcanics. Contoured elemental abundances and distribution from this program indicated five zones in which groundwaters had elevated Au and despite the cover, appeared to reflect variations in the underlying Palaeozoic rocks. Three of the Au zones could be in terrain affected by extensions or intersections of faults, a feature in common with the established Au deposits in central Victoria. Reflections of concealed Palaeozoic rocks included a possible zone of concealed Cambrian greenstones that coincides with three of the Au zones. It was concluded that each of the An zones represents a groundwater Au focus that warrants follow-up exploration.

Jan 1, 1997

With the progress of modern mining engineering, one of the features of which is the mining from greater depths and the hoisting of greatly increased loads, it becomes a matter of increasing importance that the engineer should be able to determinewith some degree of precision the character of the strains on the hauling rope. But a wire rope is a complex structure; it is made up of spirally-twisted strands, which in turn are composed of spirally-twisted wires, and it is not particularly easy to say exactly what happens when this "doubly-twisted structure is wound round a drum or over a pulley.. The difficulty has been generally evaded in ordinary practice by the simple device of adopting a large factor of safety for the rope-usually from 8 to 10-a factor which experience has shown is sufficiently large to cover the bending strains set "up when the rope is passed over pulleys of the sizes commonly considered appropriate.When, however, we add the stress due to the bending of the rope to the stress produced by" the direct pull, we find that the actual factor of safety is usually more nearly 4 than 10, and frequently the bending stresses in the rope are so large compared with the simple tensile stresses that their neglect may easily lead to disastrous results when dealing with problems a little out of the common run. Common Empirical Rules.-It is always "recognized that the bending of a wire rope round too small a pulley is likely to do the rope serious injury, but as it is desirable in ordinary winding operations to reduce the inertia of the moving parts to a minimum...

Jan 1, 1907

By J P. Sykes, A Trench

Mineral commodity prices are subject to volatility over both the short and longer run – driving fluctuating operating margins for mining companies over time. Such market dynamics influence mine operating decisions depending on the interplay of company-specific and mineral market factors. The company factors include corporate financial strength and price-risk management strategy, as well as mining practices and methods at the operation level. The critical mineral market factor is the price of the ex-mine product. This results from underlying microeconomic and macroeconomic root-causes pertaining to mineral supply and demand, in addition to the activities of financial participants within commodity markets.Significant changes in commodity prices of an extended duration, either up or down, remain the principal influence upon mine economics – and therefore on mining practices too. Accurate and precise forecasting of commodity prices (and of relevant exchange rates) continues to prove elusive both to mineral economists and market analysts. Thus, at any given point in time, there are often widely differing price forecasts available for both the relevant commodity and currency. Companies as a result are unclear how to respond in practical operating terms to such price-side uncertainty – other than to manage incremental capital and operating expenditure. Typical company – and industry financier – responses to the difficulty in predicting future mineral commodity prices are to take measures to manage uncertainties in mining project revenues and costs. These operating practices are prudent – yet come at an economic cost: that is, lost revenue and margin opportunity is inevitable in any such system not easily capable of responding to price volatility in the market. The mine of the future will seek to capture this lost economic opportunity. This paper presents a three-stage framework for analysing commodity price forecasts to aide understanding of the commodity price cycle and the periods of high-margin opportunity.CITATION:Trench, A and Sykes, J P, 2014. Perspectives on mineral commodity price cycles and their relevance to underground mining, in Proceedings 12th AusIMM Underground Operators’ Conference 2014 , pp 19–32 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Mar 24, 2014