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By D Mather

The Resources Boom of the 1960s in Australia provided a strong foundation for AustraliaÆs economic prosperity for the remainder of the twentieth century. In combination with sound economic management, our world-class minerals and energy sector has played a key role in the nationÆs competitiveness, and it has been the major source of our exports since the early 1970s. Even with the emergence since 1990 of major mineral provinces in Latin America and elsewhere, Australia has increased its percentage of world production of several minerals. Between 1990 and 2002, our share of iron ore production rose from 13 per cent to 20 per cent, nickel mine production from eight per cent to 17 per cent, copper mine production from four per cent to seven per cent and zinc mine production from 13 per cent to 17 per cent. Whether this situation will continue during the coming decades motivates the discussion of this reflective paper. The approach is to consider fundamental supply-side and demand-side issues in arriving at a view about the state of the world, the world minerals sector and the Australian resources sector in the coming decades. The argument draws from the experiences of other mature mineral producing countries such as Canada and the United States. In such nations, efficient producers have often sustained competitiveness for extended periods, despite falling grades and other challenging operating conditions. Yet several forces are changing the economic geography of the minerals industry in significant ways. These include the re-emergence of major global mining corporations, the revision of mineral policy in over 100 nations since 1985, the mobility of technology and more efficient transport both for mineral productions and mining professionals. Given these trends the paper argues that the Australian mining industry must continue to change and evolve significantly in the foreseeable future. Its leaders will need to be even more internationally focused if it is to maintain its strong competitive position.

Jan 1, 2006

Many operating hard-rock sulfide mines are predicted to require perpetual post-closure management to prevent environmental degradation. Causes include evaporative concentration of metals and other solutes in pit lakes, and acid rock drainage from sulfide waste-rock, tailings, and pit benches. Dilemmas posed by the prospect of perpetual management include: uncertainty in predictive models typically prevents reliable bounding on forecasts for the timing or magnitude of environmental impacts; comprehensive closure designs that can meet environmental standards may not be economically possible, particularly when applied retroactively to mines permitted under less stringent closure requirements; the publication of site-specific environmental analyses in peer-reviewed journals are discouraged in the current regulatory environment, hindering scientific advancement; and the durability of financial and government institutions cannot be assured for the long-time horizons over which mine impacts are predicted to occur. Re-evaluating mine closure in a framework of sustainable development (as proposed by the Mining Mineral Sustainable Development forum), can resolve, in part, these dilemmas. Key sustainability goals include: assurance of the social and economic well-being of the local community; assurance of the long-term environmental integrity of the region; and establishment of institutions capable of addressing (and learning from) long-term environmental management. Under a sustainability framework, impractical plans for immediate attainment of perpetually-stable closure may be replaced with a fund for long-term management of environmental impacts (eg through contaminant migration controls and exposure barriers), and a set-aside long-term growth reserve intended to eventually fund more complete closure. Fund expenditures would follow Adaptive Managementùa template for environmental-management institutions in which knowledge accumulated and uncertainty acknowledged explicitly. Under adaptive management, trusts would be flexible entities, supporting an evolving program of monitoring, predictive model refinement, and treatment. Periodic value of information analyses would target data collection efforts, refining the balance between predictable cost and uncertainty. This framework could overcome present-day financial shortcomings, enhance the field of environmental science, and meet the needs of future generations through the propagation of capita.

Jan 1, 2003

It is a commonplace of our industry that prices of most minerals have been historically weak during the 1980s. The International Monetary Fund's index of prices of metals fell 25 per cent between 1980 and 1982, rose slightly in 1983, and has since fallen further. In December last year it was 37 per cent below its 1980 average. The few temporary exceptions to the mineral industry's malaise highlight the excess capacity, which largely explains the weakness of prices. The industry has painfully come to recognise that more satisfactory prices will not be restored until supply capability and demand move back into better balance. Mine capacity was installed in the expectation of much faster growth of demand than has occurred. For a variety of reasons mine and plant closures have been insufficient to restore equilibrium to the market-place. The industry may, therefore, have to resign itself to continued weak prices for some years more, at least by the yardstick of the 1970s. Growth rates of demand have slackened off in line with economic activity, and in response to continuing substitution and technological improvements. To the extent that the recent weakness of oil prices stimulates the industrial countries' activity, demand for non-fuel minerals may grow faster than most forecasters now predict. It is, however, much too early to say how long the weaker oil prices will persist, and even more difficult to estimate their probable effects. In typical post-war business cycles the usual response to recession was to batten down the hatches, and ride out the storm. Sooner or later, and probably sooner, demand resumed its previous trend path, and prices recovered. The market, in effect, bailed mines out of trouble; the more efficient could make attractive pre-tax profits whilst even the poor to mediocre could earn a satisfactory living. Prices rose at least as fast as general inflation, and in the early 1970s much faster. In retrospect those price rises of the early 1970s were historically abnormal but they did not appear so in the prevailing inflationary climate of the time. When the market failed in the early 1980s many of the hardest hit companies looked for scapegoats.

Jan 1, 1986

Kumba Iron OreÆs Sishen Mine is one of the worldÆs largest iron ore mining operations situated in the Northern Cape, South Africa. It produces 29 million tonnes of iron ore products per annum using a dense medium separation (DMS) beneficiation process. Kumba is currently commissioning the Sishen Expansion Project (SEP) which will produce a further 13 Mtpa product through a jigging beneficiation process. The products from the Sishen Mine are highly sought after and consumed by domestic and various European and Asian customers. During beneficiation iron ore slimes are generated and discarded as waste material to the slimes dams. A study was initiated in 2005 to investigate processes to beneficiate these slimes to saleable products û prompted by the current high demand for iron ore products and the high grade in the Sishen slimes thickener underflow of approximately 54 per cent Fe. Initial laboratory scale test work indicated that a 66.5 per cent Fe iron ore concentrate could be produced from the Sishen slimes thickener underflow through a process of classification, two stage wet high intensity magnetic separation (WHIMS) and five stage flotation. This process, however, did not produce the desired results during pilot plant testing and numerous alternative process routes were investigated. The process that did achieve the desired product grade of 66.5 per cent Fe at economically feasible product yields consisted of two stage WHIMS using SLON magnetic separators. Results achieved indicate that the thickener underflow slimes can be upgraded from 54 per cent Fe to 66.5 per cent Fe at a product yield of ca. 40 per cent. Product yield could be increased through the further beneficiation of the SLON tails. The Sishen slimes thickener underflow production rate is ca. 3 Mtpa û resulting in a potential concentrate production of ca. 1.2 Mtpa. The slimes concentrate will be fed to a pelletising plant that will produce 66 per cent Fe pellets destined for domestic and or export markets.

Jan 1, 2008

By P Townsend, F Russell

Palabora Mining Company operates an integrated open pit mine, concentrator, smelter and refinery complex located in the Northern Province of South Africa. The Palabora open pit went into production in 1966, mining 30 000 t/d to produce some 62 000 tpa of copper. With continuous modification and improvement, a mining rate of 82 000 t/d, producing up to 135 000 tpa of refined copper, has been achieved. While these improvements have also enabled the mine life to be nearly doubled, the open pit will reach the end of its economic life by 2003. The Palabora orebody is vertical and the reserve extends to a depth of 1800 m over an area of 700 m by 200 m. Studies to assess the economics of mining the orebody by underground means began in the mid-1980s. These studies indicated that block caving is the lowest cost underground mining method that would generate a suitable return. In March 1996, a decision was made to develop a 30 000 t/d block cave mine that will extend the life of the Palabora Mining Company by a further 20 years. In terms of the relatively high rock strength and the resultant coarse fragmentation that is expected at the drawpoint, the Palabora cave can be considered rather unique when compared to other block cave operations. This paper describes the project in broad terms and details the mining method, particularly with respect to the cavability of the orebody and the design features to deal with the coarse fragmentation. The project commenced in July 1996 and final development of the undercut and drawbells is scheduled for completion in November 2003. This paper describes the status of the project and planning as of April 2000.

Jan 1, 2000

By A Keddie

Standard microeconomic theory suggests that the behaviour of mineral extraction and processing firms with respect to their demand for water can be modelled and a market demand for water subsequently derived. Such a model, although an abstraction of the real world, should be able to predict the responsiveness of quantity of water demanded to change in price, and, change in demand to a range of factors including: expectations about reliability of supply, changed commodity prices for mineral production, and change in water technology and storage at mine site. This paper demonstrates that the price of water is particularly responsive to changes in demand and that although price increases would result in some additional supplies, physical constraints on supply suggest that the industry will be paying considerably higher prices for water in the future. It is recommended that the mining industry undertakes quantification of possible price increases to position itself to minimise the impact on their operating costs as well as to make responsible capital investment decisions to facilitate future expansion or commissioning of new mines. Substantial investment is required to commission a new mining venture with expected rates of return subject to risk and uncertainty due to fluctuations in world commodity markets as well as reliability of secure supplies of inputs. If a reliable supply of water was subject to uncertainty and water was a critical input for production, then the initial mine design would typically consider a range of production decisions contingent on levels of uncertainty with respect to water supply. These states or sets of water supply, will affect production decisions and future water demand. Modelling production decisions contingent on different states of nature, termed the state-contingent approach, provides a number of insights about producer behaviour under uncertainty. This paper investigates the assumptions underlying the derivation of the market demand for water by the mineral resource industry and identifies the drivers of demand and the responsiveness of the industry to change in price and supply, particularly in relation to capital investment in water-use technologies. The usefulness of these models to the mining industry is considered by reference to the increasing demand for water by the industry in Queensland, in a climate of water shortages.

Jan 1, 2006

By I D. Hair

A numerical groundwater model was used to predict the nature of interactions between heavy mineral sands mining operations and the groundwater regime at North Stradbroke Island, Southeast Queensland. North Stradbroke Island is formed mainly of massive vegetated Cainozoic aged dune sands. Since the 1950s, a number of operations have mined rutile, zircon and ilmenite on North Stradbroke Island. In such mining operations, a dredge and an associated processing plant are floated in a pond either above or below the prime groundwater table The numerical model was based on the North Stradbroke Island Groundwater Management Model, developed in 2001 by the Department of Natural Resources and Mines (NR&M). This model was constructed using the modular, cell-centred, finite-difference groundwater flow model, MODFLOW, developed by the United States Geological Survey (USGS). The NR&M model was refined to improve model resolution and detail for simulating dredge mine paths. Of particular interest were: water table fluctuations induced by mining for the identification of slope stability risk; the optimisation of sand spear arrays supplying mine make-up water requirements; inflow and outflow rates to the dredge pond for overall mine water balance; and interactions with Eighteen Mile Swamp and water supply bores controlled by the Redland Shire Council (RSC). Depending on the water level in the dredge pond compared with the surrounding groundwater table, water either flows out of the dredge pond into the groundwater regime or from the groundwater system into the dredge pond. The MODFLOW river package (RIV) was utilised for the modelling study. Dredge pond movement was simulated using specialised software developed by Watermark Numerical Computing (WNC) to interpolate pond positions and map the dredge path to the model grid both spatially and temporally. As tailings placement affects the groundwater system through increased recharge, the MODFLOW recharge package (RCH) was utilised to simulate different recharge efficiencies. Long-term model predictions were made for the period from July 2002 to May 2021. Results of the modelling showed that exchanges of flow between mining operations and the groundwater regime could be effectively managed. The study provided valuable information which was used to develop an appropriate mine water management plan.

Jan 1, 2003