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In 1965, Peter Flawn author of the famous text-book on Mineral Resources (1966) published a paper in Economic Geology with the delightful title `Who took the `Economic' out of Economic Geology?'. He opened this most interesting article with the following paragraph:If one were called upon to cite an example of a fish out-of-water he could hardly pick a better one than a recent graduate of geology of an America university who is suddenly faced with the responsibility of evaluating or appraising a mineral property. And I venture to say that the 'ftsh' with a doctorate - even in economic geology - is not much better equipped than one holding a lesser degree. The new graduate with a major in economic geology probably knows the significance of the various sulphur isotopes, he surely knows a great deal about the chemistry of the ore forming fluids and he recites with ease the arguments which prove deposits are epigenetic rather than syngenetic. However he is a rare bird indeed if he knows anything about the economics of the mineral industry. The truth is that geologists who are engaged in evaluation work are largely self taught. I ask my more distinguished and experienced colleagues - `Has it always been this way? Who took the `economic' out of economic geology?

Jan 1, 1993

New knowledge has no economic value unless it can be applied, or æcapturedÆ, as the R&D jargon has it. Australia probably spends more than $500 m per year on mineral industry R&D, distributed amongst the mining companies (IR&D Board, 1997), CSIRO, the universities and others. The investors in this research (industry, and the community via government) will expect some sort of return from their investment. The return will be poor unless the know-how developed in R&D programs can be exploited. This paper explores some of the issues involved in capturing the outcomes of mineral industry R&D in a form which can be exploited for economic benefit, and suggests ways in which it might be done better. It is based on the experience of the JKMRC in conducting applied research in mining and mineral processing and delivering it to the industry. It may seem presumptuous for a research contractor to be telling its clients how to do their job. However, the process of developing, acquiring and implementing R&D outcomes has to be a partnership between provider and receiver, in order for this process to work efficiently. This applies whether the two parties operate within a single corporation (a corporate laboratory and a business unit, for example) or are two entirely independent organisations (eg a mining company and a university). Both partners have a role to play, and the best examples of realising the benefits of R&D almost always involve the open-hearted and skilful handling of this synergy.

Jan 1, 1998

By G A. Davis, D G. Laughton

The great variability of mineral and energy prices has motivated some governments to incorporate a windfall profits tax into their mineral taxation regimes. Windfall profits taxes are a means for governments to capture additional mineral revenue when mineral prices are considered higher than some historic level. Governments need to be aware of the effects of such contingent taxes on the exploration, development and operating decisions of mining companies. Mining companies need to be able to calculate the full impact of windfall profits taxes on the economics of their projects. This paper examines the valuation of a multi-phase copper-gold project in the presence of a windfall profits tax. Real options Monte Carlo simulation is used to characterise the different exposures of the mine owner and of the government to the risky cash flow streams that they receive from the project. The results highlight that Monte Carlo simulation paired with the real option valuation method is able to account appropriately for the differing risk exposures, while the traditional discounted cash flow valuation model is not. Our key conclusion for governments and mining companies is that the impact of contingent tax and royalty terms can and should be assessed using advanced valuation techniques, and the results used to improve contract designs under the constraint of actual and perceived fiscal system stability.

Jan 1, 2007

By A D. Bugarski, B R. Conard, G H. Sc

The objective, of the Diesel Emissions Evaluation Program (DEEP)-sponsored project at IncoÆs Stobie mine, was to conduct a long-term field evaluation of selected diesel particulate filter (DPF) systems, available to the underground mining industry. Nine state-of-the-art DPF systems were retrofitted to heavy-duty and light-duty vehicles and were subjected to extensive long-term in-mine evaluation. Periodic efficiency tests were conducted at various stages of the study (in 2001, 2002 and 2004) to establish in-use efficiencies and durabilities of the tested DPF systems. During efficiency tests, the vehicles/engines were operated over several steady-state operating conditions. Various instruments were used to measure particulate and gaseous emissions upstream and downstream of the filter systems. The results were used to assess the effects of the filter systems on the concentrations of diesel particulate matter (DPM), nitric oxide, nitrogen dioxide and carbon monoxide in the vehicle exhaust. Experience with the operational issues related to deployment of the filter systems on underground mining vehicles, coupled with the assessment of the filtration efficiencies, were the primary objectives of the study. The variety of filtration systems and regeneration concepts used in this study offered the opportunity to investigate the advantages and disadvantages of the various types. Some of the major issues studied were criteria for selecting the filter media, means of regeneration, the long-term operational reliability, and the occurrence of unwanted secondary emissions.

Jan 1, 2005

By Westcott PC

The development of a coal project must pass through a number of phases, taking it from a preliminary evaluation through to detailed mine planning. For each phase the cost of data acquisition and associated mining studies increases exponentially for linear improvement in confidence levels. Within each mine planning phase there are four main activities. These are the economic ordering of reserves, the development of optimum mining strategies, mine design and scheduling and finally the estimation and analysis of costs. The development of the optimum mining strategy is one of the most critical aspects of a mining evaluation and the application of economic criteria at this stage of the project is vital to the successful generation of an optimised mine design. A recommended method is the concept of Economic Ratio (ER) which expresses the likely cost of mining from a given location in a deposit in terms of the value of the product likely to be recovered. The most economic mining strategy will be to mine areas from low economic ratio to high economic ratio within the constraints of reasonable equipment application. When selecting equipment a particular machine should not be selected solely on comparison with other machines in isolation, but the total application must be analysed. In the final selection the decision should be based on whether or not it has a beneficial effect on overall project economics. The economic assessment must take into account the time value of money, so the real cost can be determined with adequate provision for capital and operating costs over different time spans.

Jan 1, 1983

By J Kleynhans, D Vermeulen, V Cogho

A number of rehabilitated open cast coalmines in SA are already decanting. The paper focuses on the situation at one of these mines where the following information exist: monthly decant rates and rainfall; sulfate concentrations of the decanting water; water level measurements inside the mine prior to decanting; ABA analyses; information about the rehabilitation (drainage slope, vegetation, soil used). A 2D-model was constructed for the mine and calibrated against six years of flow data. About 85 per cent of the decant outflow rate comes from direct recharge on top of the rehabilitated mine while the other 15 per cent is derived from lateral groundwater inflows. The estimated recharge value was 17 per cent of the rainfall. Measured sulfate values showed that the sulfate generation rate for the mine was in the order of 7 kg/ha/d. Conclusions from the study are:most of the water decanting from rehabilitated open cast coal mines is derived from recharge via rainfall; given a specific sulfate generation rate, then: the lower the recharge the less the decant rate but the higher the sulfate concentration of the decanting water and vice versa; future prediction of the decant rate must be stochastic according to expected percentile monthly rainfall values; and as a first assessment of the predicted sulfate concentration of decant water from rehabilitated open case mines, the 7 kg/ha/d sulfate generation rate can be used.

Jan 1, 2003

THIS instrument, depends on the principle that, over a short period, the surfaee of a porous substance from which a liquid is evaporating receives the same amount of heat by conduction, convection, and radiation as it loses in the latent heat of the evaporating liquid. If, then, the amount of heat being received by a surface can be measured, the rate of evaporation can also be obtained. The Kata thermometer is also based on this principle differently applied.The instrument, as shown in Fig. 1, consists essentially of a thermometer with a sliding which is divided by three pointers into two equal parts which may be spaced so as to cover a distance of, for example, 5° of the thermometer scale. The instrument is calibrated so that the amount of heat required per unit area of the bulb to raise the menissus is known. The method of using the instrument is as follows:The slide is first set so that thc central pointer is at the temperature of the evaporating surface.The thermometer is cooled by any convenient means so that the meniscus is several below the lowest pointer. The thermometer is then placed near the evaporating surface, when the Ineniscus begins to rise and the time taken for it to rise from the lowest to the top pointer is measured. From this and the calibration results the amount of heat retained per unit area of the bulb at the mean temperature...

Jan 1, 1928

The Musselwhite mine, located in northwestern Ontario, Canada, has been an underground narrow-vein gold producer since the spring of 1997. As an exploration project at the feasibility stage, much effort was undertaken to generate a geostatistical resource model that would integrate the orebodyÆs geological features, as well as the controls on mineralisation. Today as an operating mine producing over 200 000 ounces of gold per year, reconciliation studies of the tonnes and grades treated at the mill, with the feasibility model, for longer time periods, and with the grade control models, for shorter time periods, show results that are in good agreement. It was clearly demonstrated with the reconciliation to production, that the key to good reconciliation remains in the proper selection and application of the geological resource estimation method. The application of a grade interpolation technique capable of capturing threedimensionally pertinent geological features, as well as accounting for spatial grade continuity, proved to be successful in the predictability of tonnage and grade at the Musselwhite mine. Along with good mine practices, this approach, which was carried through to the operation, has produced excellent reconciliation results. The ongoing reconciliation studies at Musselwhite allow for a constant revision of the grade estimation strategy. In return, this optimisation process adds value by raising the accuracy level of production expectations. As this is an evolving practice at the mine site, further implementation developments are recommended to integrate these reconciliation procedures on a more regular basis.

Jan 1, 2002

By W Mackinnon

Coal mining operations require the expenditure of appreciable start up and working capital in order to produce saleable coal for domestic or export markets. The competitive nature of the coal business restricts margins, and so it is imperative that downside risks, in terms of production outcomes, are minimised. The major risks identified for a coal mining operation, aside from sales volumes and coal price, are generally thought to be confined to the geology of the deposit and the mining process. However, the impact of product quality and yield can be very significant. If product coal is inferior to projections, then it will need to be sold at a discounted price and this can dramatically impact on margins. Equally, if yield is five to ten per cent less than planned, then this will have a huge effect on profitability. This paper will look at issues relating to in situ moisture and density, resource quality evaluation, modelling of washability and dilution, and simulation techniques, and how best practice approaches can be incorporated into mine planning and feasibility studies. Risks are best modelled and understood by adopting a detailed approach that is fully documented and auditable. This is particularly needed for multi-seam and multi-product operations. Once a well defined systematic approach is established the potential risks can be evaluated by testing different scenarios, carrying out sensitivity analyses, variability modelling and examining extreme operating conditions. These have been discussed in the paper, along with some related issues such as the cost of quick fixes and the value of spending a little more in the coal preparation area.

Jan 1, 2003

By M Zaluski, D Bless

An innovative, biological treatment process has been designed by MSE Technology Applications, Inc to treat and control acid mine drainage (AMD). A field-scale demonstration is being conducted under the Mine Waste Technology Program using water flowing from a historic mine in Montana. A successful demonstration of an in situ process will allow it to be employed at numerous other abandoned or remote mines, which discharge AMD, an acidic, metal-contaminated water. Conventional treatment methods are costly and are often impossible to use at remote locations. MSEÆs technology uses a biological system to clean up AMD. The In situ Passive Biological Treatment Process utilises nonpathogenic bacteria, which are able to neutralise acidic mine water and remove contained toxic metals. These bacteria live within a series of pile-type reactors inside the mine. The bacteria are fed inexpensive waste products. The resulting discharge is clean water flowing from the mine. This presentation will show that this technology offers a natural cleanup method for the nationÆs numerous abandoned mines. Work on this project was conducted under Interagency Agreement No DW899388-70-01-1 between the US Environmental Protection Agency and the US Department of Energy (DOE), and was performed at the Western Environmental Technology Office through the DOE National Environmental Technology Laboratory (DOE Contract No. DE-AC22-96EW96405).

Jan 1, 2003

By J E. Everett, M L. James

When iron ore is crushed and split into lump and fines components, there are systematic differences between the lump and fines grades. Generally the lump product is richer in iron and lower in the other minerals, compared to the fines product. The grade differences between lump and fines, together with the lump percentage, are referred to as the ælump algorithmÆ. Mine estimates of grade, based on exploration or blasthole drilling, relate to head grade. The ælump algorithmÆ predicts lump and fines product grades from the head grade. This knowledge is important when developing mine plans. Different ore types can be expected to have systematically different lump algorithms. Previously, lump algorithms for specific ore types have been estimated by running the crusher with a single ore type over a sample period. This method is costly, interferes with production, and yields results of limited statistical power. It has been found that weighted-least-squares (WLS) multiple regression can be used to ascribe lump algorithms to different ore types, provided sample periods have sufficiently varied ore type mixes. This study discusses the method and its application to the analysis of Mining Area C crusher production records to estimate the separate lump algorithms, which could be applied to the different ore types. The analysis has enabled the set up of lump algorithms in the production system, to improve the grade control of lump and fines product. Some other relevant applications of the WLS multiple regression approach are also considered.

Jan 1, 2005

By A Maurer, N Pereira

Low-density explosives have been developed with trials being conducted for over 20 years and yet have still only gained limited market acceptance despite producing some very promising results. The biggest concern with industry acceptance has been disbelief that a product with lower density than the ANFO benchmark could fragment anything but the weakest of strata. Trials have been carried out with products such as diluted ANFO, low-density ammonium nitrate (AN) and various other mixes, although it has been only recently that low-density explosives have been accepted as a serious alternative to traditional products such as ANFO and heavy ANFO. The recent uptake of low-density products has been the result of several key factors: the current resources boom forcing AN supply issues, the development of new handling techniques, and a far better understanding of the utilisation of such products. This paper highlights the benefits of low-density products available in the market and focuses on the situations where low-density explosives can provide the end user with benefits that would otherwise be achieved through more time consuming methods. Through correct implementation, low-density explosives can provide the blast designer with another option when looking at the optimum method of breaking the rock. This while still controlling the other limiting factors such as cost, environmental impacts (noise, vibration, dust and fumes), coal damage and safety (stable walls).

Jan 1, 2005

Technical control in an industrY invariably leads to a basic contribution from the science of chemistry. It is interesting to note. that the change from the "Assay Office" to the "Chemical Laboratory" has already taken place on the majority of progressive mining fields.Although the serlvices of an efficient chemical staff are freely availed of by operating departments, it is not generally realized that practical chemistry is definitely expensive. A great deal of misplaced energy and expense can be involved in an enthusiastic research campaign where a full appreciation of laboratory economics and a balanced sense of analytical values are lacking.In order to supply data to the various departments concerning individual costs, it was decided at the North mine to issue a supplementary sheet concerning laboratory activities.The costs are compiled under the Unit System, which is based on a relative comparison between the total cost of the various determinations. carried out and the number of such determinatiQns converted to an equivalent aggregate of units.The introduction of the system necessitates the initial compiling of a table of relative units for the various estimations carried out on the works. Each laboratory will find it necessary to draw up such a table governed by local conditions, and, as will be anticipated, a relative comparison of the cost for any particular estimation will show a variation on a lead field, a copper field, or a steelworks, etc.This is due, of course, to the predominating type of routine work, cost of landing reagents, frequency of assays, etc. The satisfactory preparation of the Unit Table requires a good knowledge of laboratory procedure.

Jan 1, 1940

IN presenting the following short paper the writer hopes to illustrate some uses of explosives in industrial work under conditions different to those prevailing on mining fields. This paper is based on experience gained at the Newcastle steel works of the Broken Hill Proprietary Company Limited. The management had decided that as soon as No. 2 blast furnace which is of an improved design was ready to be put into commission, No. 1 blast furpace was to be dismantled and reconstructed to a similar design to No. 2 furnace. This reconstruction entailed the removal of the brick lining of the furnace shaft, and, also the removal and disposal of the,"salamander" and hearth-lining. For the information of members who may possibly be unacquainted with the term "salamander," it might be explained that this term is used by iron metallurgists to denote the mass of iron and slag formed at the- bottom of the furnace, whilst in commission.The method of disposal depends upon the size and nature of the salamander, and in the case under review it was decided to bury it below the hearth of the 'furnace' to be reconstructed. A passage-way was made in the concrete walls of the cast house, and the sand-filling of the cast house removed sufficiently to allow of the concrete foundations of the furnace being reached. This passage-way was extended until the hearth was encountered. The next operation was the removal of the hearth-lining below the salamander. The removal of the concrete was not difficult...

Jan 1, 1921

By A Buckingham, R M. Hancock

The underground Sunrise Dam gold mine commenced in October 2003 to extract ore from a series of orebodies with various dips, widths, and ore grades over a strike length of 1.5 km. To successfully operate flat stopes it was identified that a means to extract ore left behind after blasting in stopes with dips ranging from 15 to 40 degrees was needed. Various options were available, which included a bulk water cannon, hand held high-pressure water jet, remote controlled small dozer, several mini excavators and finally a specialised remote controlled excavator from the demolition industry. Trials were commenced for the bulk water cannon option in 2006 that proved that the concept worked, however, the system was too cumbersome to set up for use in cycle with production. Hand washing down using mine (low pressure) water with a two-inch bullhose proved of limited value. The small, one metre high remote controlled dozer as used in South Africa was reviewed, but the steepness of most of the stopes precluded this machine. The hand held high-pressure water jet option is still being investigated; with safety factors still being addressed. Several mini excavators were trialled to clean out the flat stopes with generally poor results, the machines being either too large to fit in the drives and pull ore down or too small with too short reach to effectively and efficiently pull ore out of the stope. In early 2007 a Brokk 330 remote controlled excavator was trialled on site with the low profile of the machine and unique arm configuration proving an effective tool for pulling ore from the footwall of short, flat stopes. A Brokk 330 remote controlled excavator was purchased in late 2007 and is currently in operation.

Jan 1, 2008

Most of the copper deposits in the Lachlan Geosyncline fall within areas having either a common host rock, mineral assemblage, form of ore body or time and method of emplace- ment. On this basis a Cobar-type ore has been recognised in the deposits of the Cobar -- Mt. Hope - Melrose region. The copper ores in the Tottenham-Girilambone area to the east have a different mineral assemblage. In the more rugged Central Highlands nearer the coast copper deposits are generally concentrated either in one of several Ordovician andesite belts, particularly between Wellington and Woodstock, or within Silurian acid volcanics developed in irregular fashion over a considerable portion of this region. In only a few instances is copper known in the granite batholiths which adjoin these volcanic belts. Native copper and magnetite are characteristic of the deposits of the andesite province and it is possible that future mineragraphic studies will indicate significant differences in the base metal sulphides of both the andesitic and the more acid volcanic belts. Ores having similar mineralogy and form to the Captain's Flat deposit are known at various localities in the eastern segment of the latter belt. In the Gundagai area several small copper deposits with associated nickel minerals have been developed in the Coolac Serpentinite belt.

Jan 1, 1969

It's my privilege to welcome you here this afternoon on behalf of the Sydney Branch of the Australasian Institute of Mining and Metallurgy. This is a most important gathering. You, the delegates, represent what is probably the most influential cross-section of the mining investment community and the oil and gas investment community to meet as a group during the last decade. We are meeting today and tomorrow to review two related issues that will have far reaching implications for the effective use of capital by the natural resources sector in the 1990's. The views which will emerge over the two days will almost certainly 'influence the availability of new capital to the companies in the natural resources sector for the decade ahead. The two principal themes of Minval '89 are, first, the valuation of mining and oil and gas assets and securities, and second, disclosure and reporting requirements in the capital markets which relate specifically to natural resources companies. This conference is taking place at a time when further consolidation and rationalisation appears likely within the mining industry. Although the base metals and other sectors of the industry are enjoying profitability not seen since the early 1980's there is caution about committing to new capacity which could bring about a return to the low prices and excess supply which prevailed during much of the last ten years. These conditions have led to increased takeover activity within the mining industry overseas, and similar trends are as evident here in Australia as they are elsewhere. Recognition of value is therefore likely to become more important than ever before in preserving shareholder wealth, for creating new wealth and for preserving the financial health of the resources industry in the future. Valuation therefore is the first theme of the conference.

Jan 1, 1989

The purpose of this paper is to outline the equipment used for diamond drilling at Mount Isa, together with alterations and recent improvements therein. As the majority of the drilling is carried out with machines running at relatively high speeds using XRN blast hole bits, the paper is mainly devoted to this branch of drilling.Because diamond bit costs constitute the major expense, a considerable amount of research into bit design has been carried out, and in several instances, costs per foot have shown an appreciable decrease in spite of rising manufacturing costs and higher diamond prices. Equipment performance has at times been erratic due to delays in delivery and occasionally because of faulty parts, but in general the position has improved by keeping in close contact with the manufacturers.BLASTHOLE DRILLING MACHINESThe standard blasthole diamond drill is the 'E-500' two cylinder air powered model manufactured by Mineral Drillers Limited. Several of the older pattern JV41 are still in use, but are being retired as they wear out.. Machines are repaired in the underground diamond drill shop.The normal feed gears used when drilling in lead shales are 350 top gear and 450 low gear-actually 357 and 438 revolutions per inch of advance respectively. The 300 gear was commonly used several years ago, but it was found that bit footages could be increased without any appreciable drop in penetration rate by reducing to the 350 gear. Gears used for copper drilling are 650 and 750. Footage per shift...

Jan 1, 1953

In the past few years the Rietveld method emerged as a routine tool for quantitative phase analysis (QPA) from X-ray diffraction data. Fast and reliable results became possible by combining modern computer technology and optimised mathematical algorithms with the fundamental parameters approach in the Bruker AXS TOPAS software. Here the routine analysis of bauxite raw material and of aluminium bath electrolyte is presented. The accuracy of bauxite quantification was tested by analysing the IUCr round robin sample. An agreement of better than one per cent was obtained for minor constituents and a maximum deviation of 2.5 per cent for the major phases. This is excellent agreement with expected results from weighting. Ten different phases were quantified in natural samples from Turkey with a precision better 0.5 per cent for the major phases and one per cent for the minor phases. Additionally, crystallite sizes were obtained from the peak profiles that give valuable information for the processability of the material. XRD data from solidified aluminium electrolytes were rapidly measured using silicon strip detector technology. With the LynxEyeTM detector full patterns were collected in 90 seconds and analysed with TOPAS. It is shown how to derive well-established measures such as bath ratio and excess AlF3 from the Rietveld results. These measures are widely used in aluminium production and readily available with very high precision. The excellent agreement with ALCAN reference data demonstrates the outstanding accuracy of the method. The mean deviation between here presented results and reference data is below 0.5 per cent for total CaF2, below 0.25 per cent for excess AlF3 and 0.02 for the bath ratio. The precision of the method was evaluated by repeated measurements.

Jan 1, 2008

By G Gibson

Realising that current roadway development performance levels were unlikely to sustain new generation high-capacity (15 Mt/a) longwall mines then being planned, the Australian Coal Association Research Program (ACARP) established a Roadway Development Task Group (RDTG) in 2005 to develop a research strategy targeted at improving roadway development performance in Australian longwall mines. The initial phase of the project identified a number of factors that differentiated best practice mines from others, and proposed a multi-faceted research strategy encompassing both short- and long-term research initiatives, including:conducting regular benchmarking studies across the industry to identify factors contributing to improved performance and to monitor performance trends,conducting regular industry roadway development operatorsÆ workshops to facilitate the transfer of successful roadway development improvement initiatives throughout the industry and facilitate networking between development practitioners,development of alternative skin reinforcement and containment measures that would eliminate the use of steel mesh and enable face support systems to be fully automated,development of automated bolting and mesh handling systems that would enable operators to be removed from the immediate face area,development of a body of knowledge of industry roadway development practice,development of a web-based information management system to capture and transfer emerging developments in roadway development practice and technology,reviewing the Australian civil tunnelling and underground metalliferous mining sectors to identify practices and technologies that could potentially be utilised to improve roadway development performance, anddeveloping a new generation high-capacity mining system capable of +10 metres per operating hour for 20 or more hours per day (CM2010). The paper reports on the progress of the above initiatives and outlines strategies to continue the pursuit for improved roadway development performance.

Jan 1, 2008