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By B K. Da, S A. Balaji, G P. Roy, T K. Dutta

The raw material handling complex at the Durgapur steel plant provides iron ore, crushed coke and flux to two sinter plants. Either some facilities were not envisaged or not properly designed before the project stage which caused problems during operation of the plant. The absence of an in situ roll turning facility, used to increase maintenance activities for disassembly, transportation of rolls to central machine shop and assembly of rolls, led to decreased crusher availability and increased activities for the maintenance crew. The provision of a smaller vibro feeder/screen in place of a suitable sized screen caused jamming of the screen deck, adversely affecting screening efficiency and the crushing index of crushed coke. Some design modifications and developmental work was undertaken, such as the development and installation of an in situ roll turning facility in the existing limited space, achieving low feed (0.1 - 0.2 mm/rev), lower cutting speed of 30 - 40 m/minute for 350 BHN hard roll, which was also a difficult engineering challenge to bring within the tolerable limit of vibration. This was successfully achieved. Modifications to the screen deck, introduction of differential speed crushing and modification to the vibro screen and vibro feeder for uniform distribution of feed have been incorporated. These innovative design modifications to the in situ roll turning have led to a drastic decrease in maintenance activities and an improvement in the crushing index. Modifications to the screen have resulted in the elimination of jamming and improved screening. Modifications to the vibro screen before the primary crushers and to the vibro feeder before the secondary crushers have prevented excessive wear in the central portion of rolls, ultimately leading to increased roll life. Incorporation of differential speed crushing has resulted in an increased crushing index and decreased generation of micro fines. All the above modifications have led to distinct improvements in equipment availability, increased roll life and a decrease in maintenance activities and improvement in crushed coke granulametry, ultimately resulting in improved productivity and quality of iron ore agglomeration at the sinter plant. The innovative design modifications mentioned above are discussed in detail in this paper.

Jan 1, 2005

By P Walker, I Crnkovic, D Bennett

The Phu Kham deposit represents a copper-gold porphyry system, with mineralisation present in skarn, stockwork and disseminated styles. Significant folding and alteration events have created a complex heterogeneous mineralogy horizon. Weathering and water table contact have created a leached zone, overlying transition zones with supergene chalcocite- dominant secondary copper mineralisation and clay-rich gangue. Primary ore copper mineralisation is mainly chalcopyrite with minor bornite. The major challenges to the copper-gold flotation process are a wide size distribution of chalcopyrite mineralisation and poor primary grind liberation, a high pyrite content in skarn ore requiring aggressive pyrite depression conditions, clay-rich gangue and non-sulfide copper mineralisation in weathered zones, and a significant association of gold with pyrite.The Phu Kham concentrator has been developed as a conventional semi-autogenous grinding (SAG) and ball milling circuit followed by selective rougher flotation, regrinding and cleaner flotation to produce a copper concentrate containing payable gold and silver values. The concentrator flow sheet design offered a capital efficient compromise between high copper recovery bulk sulfide flotation with large cleaning capacity, and lower recovery copper selective rougher flotation to ensure concentrate specification of 24 per cent copper grade could be achieved. This paper will examine and discuss concentrator flow sheet development, including projects implemented since commissioning to improve copper recovery, and future projects designed to maintain and enhance copper in concentrate production with decreasing copper grade and increasing pyrite content of ore feed, and increasing hardness of primary ore.CITATION:Bennett, D, Crnkovic, I and Walker, P, 2012. Recent process developments at the Phu Kham Copper-Gold Concentrator, Laos, in Proceedings 11th AusIMM Mill OperatorsÆ Conference, pp 257-272 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 29, 2012

By R Symes

The Fosterville Goldmine in Victoria Australia employs the BIOX« Process to liberate gold from its sulfidic flotation concentrate through bacterial oxidation. Gold occurrence is primarily as submicron particles in pyrite and arsenopyrite and has been described as being in æsolid solutionÆ and therefore not amenable to direct cyanidation. Once liberated by the oxidation process, the gold is then available for cyanide leaching. During the oxidation process it has been found that a portion of the liberated gold becomes suspended in the liquid phase in what appears to be a colloidal state. This liquid becomes a waste stream during washing of the oxidised solids and the suspended gold is therefore lost. A method was previously developed using an addition of quebracho tannin to significantly reduce this loss by formation of an iron-tannin precipitate which captures the gold which then reports to the cyanide leach circuit with the oxidised concentrate solids onto which it is adsorbed.This paper discusses the development and plant trial of a second processing step to further enhance gold recovery by use of flotation tailings essentially as a source of extra surface area to capture residual tannin-iron precipitate and its associated gold not recovered in the first step.CITATION:Symes, R, 2012. Recovery of colloidal gold from oxidised concentrate wash liquor - Further improvement, in Proceedings 11th AusIMM Mill OperatorsÆ Conference, pp 383-388 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 29, 2012

By Y Shougu

Many mine accidents will affect the mine ventilation system when they occur. At present, there is a lack of monitoring means to capture the occurrence of accidents in time by monitoring the ventilation system, so as to take emergency measures to reduce the loss of personnel and property. Pressure wave is an elastic wave existing in air. Most accidents in mine will cause obvious changes of pressure wave. It is an innovative idea to monitor the occurrence of accidents in mine by measuring pressure wave. The development and functions of the pressure monitoring device and related software are introduced in detail. The pressure wave monitoring test is carried out in San Xavier underground mining laboratory, and the D-wave and S-wave waveform data are collected. The waveform characteristics are analysed, and the main frequency distribution of the pressure wave is found to be within 1 Hz by using FFT. At the same time, the influence of the propagation distance of the pressure wave on the waveform is analysed. The propagation velocity of D-wave and S-wave are roughly calculated, and they are 279.6 m/s and 397.3 m/s respectively. S-wave is slightly faster than D-wave. Although there are errors and uncertainties in the test, the test verified the feasibility of the existence and collection of pressure waves in the ventilation roadway, and provides a method for the future study of the propagation of pressure waves in the mine ventilation system.

Oct 12, 2022

By S Gomez-Hernandez, P D. Munro

Filtered dry stack tailing storage facilities offer many advantages over thickened tailing storage facilities and yet, most of the mining companies still prefer the latter.Some of the advantages of filtered dry stack tailing storage facilities are: increased structural integrity of the tailing storage facility, which is even more critical in areas of high seismicity, close to nearby communities or environmentally sensitive areas; maximised water recovery which is particularly important in arid environments where water is an extremely valuable resource and its supply is regulated; optimised recovery of valuable metals in the process water, avoiding high cyanide concentration going to detoxification (both aspects haven’t been emphasised enough in technical papers on this subject); optimised space to store the tailings in mountainous regions; minimised elevation of embankment height, providing a safe option to store the tailings in places where there is limited area available; simplified license approval to operate where the tailing facility is a big issue; and avoidance of potential problems with nearby communities.Filtered dry stack tailing storage facilities have some disadvantages such as: technology limitations in operations that process high throughputs (eg >50 000 tpd) as they require many filters resulting in high maintenance and operating costs; higher capital cost; low efficiency in the filtration process, particularly in ores with high clay content increasing operating problems and capital cost; the new technology risk with possible debottlenecking issues and a longer time to achieve the design throughput; and the need to treat larger water flow rates when the water balance is negative.This paper analyses: the operating practices of Mexican gold and silver operations using filtered dry stacking storage facilities; implementation issues, advantages and disadvantages; quantifiable reductions in gold and silver losses and actual lower detoxification cost; and current trends to use filtered dry stacking storage facilities in new projects. The data gathered raises questions about (a) the need to collect data on tailings filterability, and; (b) reducing the current high operating cost of tailings filtration.CITATION:Espinosa-Gomez, R, Gomez-Hernandez, S and Munro, P D, 2018. Tailing filtration practices in Mexican gold and silver mines, in Proceedings 14th AusIMM Mill Operators' Conference 2018, pp 275–282 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 29, 2018

By J Bean

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

Oct 5, 2011

By H Esterhuizen

The Ernest Henry Mine (EHM) in Queensland, Australia is a Sub-level Caving operation that started production below the previously mined open pit at a depth of 535m. Current Production mining has progressed to a depth of 730m, with planned production mining to extend down to at least 1000m below surface. The inclined nature and geometry of the orebody combined with geological structures provides for challenging mining conditions. Over several years, Ernest Henry Mine has introduced measures to improve outcomes based on observations, monitoring and data analysis. As mining progresses deeper, EHM will continue to proactively take steps to ensure future outcomes are anticipated and mining can continue safely and uninterrupted. The focus of this paper is on the changes in seismic- and stress-driven behaviour of the rockmass experienced at EHM, the ground control measures implemented, and the anticipated future conditions and controls required. CITATION:Esterhuizen, H, 2018. The evolution of seismicity and ground control measures at Ernest Henry Mine, in Proceedings The Fourth Australasian Ground Control in Mining Conference (AusRock), pp 20–41 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 30, 2018

The problem of comparison of island arc's andesites in terms of petrochemical data is exa- mined. It is definitely established that only two main factors exist controlling the petroche- mical variety of the Kurile arc's andesites.Ori final multivariate statistical technique and computer software are used to extract these fac- tors. It is shown as well that the chemical com- position of igneous rocks depends on the type and structure of the Earth's crust. The follo- ~cing interpretation is proposed for the two factors describing petrochemistry of andesites: the first one is the depth to the Benioff seis- mofocal zone and the second one is supposed to indicate the position of the peripheral magma chambers. The basic trends of variations in the chemical composition components depending on the changes in the controlling factors are de- Tcnnined.

Jan 1, 1987

By G J. Harbort, K Lam, C Sola

The relationship between the geology of porphyry copper deposits and their processing performance is an area of interest. Being able to predict comminution properties of the ore from physical characteristics and geological descriptions would allow an increase in the precision of capital cost estimates, operating cost estimates and throughput rates. This geometallurgical approach would reduce the requirements for expensive comminution tests.As the comminution circuit is the highest capital cost item in the plant and a possible throughput bottleneck, understanding the variability in hardness within the orebody is critical. A geometallurgical model allows calculation of ore hardness values in mining blocks from ore characterisation data. This model subsequently uses a combination of simulation and power-based approaches to relate ore hardness and flotation feed size to grinding circuit throughput.This paper reviews the geometallurgical models developed for seven porphyry copper deposits and discusses the strengths and shortfalls of the methodology and similarities and differences between the different deposits.CITATION:Harbort, G J, Lam, K and Sola, C, 2013. The use of geometallurgy to estimate comminution parameters within porphyry copper deposits, in Proceedings The Second AusIMM International Geometallurgy Conference (GeoMet) 2013 , pp 217-230 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 29, 2013

By F M. Weir, M Fowler

The design of excavations in rock must, implicitly or explicitly take into consideration the influence of small- and large-scale geological structures. For most sites the complexity of a fractured rock mass is best captured using a 3D fracture system model based on field data. A discrete fracture network (DFN) approach involves stochastic modelling of the ‘smaller scale’, nondeterministic structures. For slope stability or tunnelling projects DFN modelling provides a valuable geotechnical tool for characterisation of a rock mass and identification of likely failure mechanisms.This paper presents a suite of the DFN modelling undertaken for the design of a large open pit in Australia. The proposed pit is to encounter a 160?m thick, high strength, sheared shale unit, which overlies a crystalline basement. DFN modelling was undertaken separately for both the shale and basement units. While the model inputs and development for each unit are briefly presented, the focus of this paper is on the various applications of the DFN modelling.A key advantage of the DFN approach for design studies is its probabilistic application to structural analyses and results. Multiple realisations of the same model were generated for both the shale and basement units, with the stability analysis carried out on each iteration. The generation of a large number of DFN models and analyses allow assessment of wedge volume, factor of safety and proportion of unstable slope for a range of conditions. The DFN modelling at the case study site was also utilised for a number of other purposes. For example, investigation of likely fault lengths in the shale unit and combined rock mass and defect failure. The development of this tool has been influential in improving our understanding of fracture networks for excavation design.CITATION:Weir, F M and Fowler, M, 2014. Rock mass characterisation and analysis for excavation design – a discrete fracture network approach, in Proceedings AusRock 2014: Third Australasian Ground Control in Mining Conference , pp 445–456 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 5, 2014

By R Wedmaier

Henty Gold Mine is an underground operation producing 100 000 ounces of gold per annum. The original mining method used was flatbacking with paste fill. However, a non-entry method û uphole benching û was introduced in 1998 to recover the deteriorating crown pillars. Initial challenges were encountered, including poor drilling accuracy, difficulty in charging holes and poor rise performance. These challenges were overcome by a Continuous Improvement Team, consisting of mining engineers, supervisors and miners. Following this, the Team implemented further changes aimed at reducing ore loss and dilution. A second area addressed by the Team was development blasting, where innovative detonator technology known as the ExelTM DevelDetTM was introduced and rapidly accepted by the operators. Continued use of the ExelTM DevelDetTM resulted in a number of benefits, such as easier bogging, less perimeter damage, faster charging and hook-up and decreased wastage. Finally, improvements were made in the area of explosive handling, where competency-based training of operators was conducted and manual handling of ANFO has been significantly reduced by the introduction of the MiniMoverTM into the underground magazine.

Jan 1, 2001

By D Smith, A Ramdhani, J Francke

Ground penetrating radar (GPR), a well-established geophysical technique generally used for shallow civil engineering applications, has, in the last decade, found increasing acceptance as a complementary tool in mineral resource evaluations. As new sites are trialled with the method, a greater understanding is being garnered regarding the most suitable environments for long-range radar. Although successful projects have been conducted worldwide for mineral sands, iron ore and alluvial projects – tropical weathering environments have produced some of the most impressive results. Specifically, tropical nickel laterites have shown to be, with some notable exceptions, ideal GPR environments.Such high-resolution remote sensing has particular relevance to bulk commodities or those which possess significant rheological variation within geological units, and has led to some innovative downstream uses within exploration, project development and the larger mining industry. In this paper, we examine the application of long-range GPR in Indonesian nickel laterite deposits in general, to highlight some of these novel applications with particular reference to resource modelling, mine geology and operational economic implications.CITATION:Francke, J, Smith, D and Ramdhani, A, 2014. Ground penetrating radar to enhance the exploration-to-mining value chain, in Proceedings Ninth International Mining Geology Conference 2014 , pp 175–182 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 18, 2014

By T Ireland

The Rosedale Outfall Project utilised an earth pressure balance (EPB) tunnel boring machine (TBM) for only the second time in Auckland. Although the tunnel was excavated fully through East Coast Bays Formation (ECBF), the downhill gradient along with some unexpected areas of extreme water posed some significant challenges during construction.The Rosedale Waste Water Treatment Plant Outfall Tunnel project was commissioned in response to the growing needs of North Shore City, New Zealand. The outfall tunnel comprises a 3 km long segmentally lined tunnel and a 2.1 km buried marine pipeline, and discharges 2.7 km offshore. The capacity of the new outfall is 6 m3/s compared to the existing outfall capacity of 1 m3/s.Following previous project experience, and with the tunnel located along its full length in the bedrock weak sandstone/siltstone bedrock of the East Coast Bays Formation, tunnelling conditions were expected to be benign. However during construction six high inflow events were encountered, including a full face (3.4 m diameter) of Albany Conglomerate over a 48 m length of tunnel. This material comprised cobbles in an uncemented sand matrix, and inflows were recorded at over 25 L/s.This paper describes the design challenges on the project including the design of a steel fibre reinforced segmental lining for internal pressures. The specification of the machine is discussed including the modifications required to enhance the risk mitigation measures already in place. The ground conditions encountered are discussed and have improved the knowledge of the range of conditions that can be expected in Auckland.Despite the challenges presented during construction, excellent progress rates were achieved and the tunnelling was successfully completed ahead of program.

Mar 8, 2011

By R K. A Taylor

The growth in production of beneficiated ilmenite products has been one of the most significant trends in the titanium feedstock industry over the past 30 years. In this period, the production of titanium slag and synthetic rutile has grown five-fold to the point where these products represented 56 per cent of total feedstock production in 2000. Additional production capacity is being proposed as the core component of new feedstock supply projects presently under consideration. A high proportion of these products is based on technologies for which the inherent quality of the is an essential factor. Location specific factors also play a large part in determining the cost of production. As the demand for such products grows, and the availability of favourably located sources of ilmenite of suitable quality declines, it can be expected that existing beneficiation technologies will become increasingly constrained. Existing beneficiation technologies, and those which have been developed, but are not yet commercially applied, are reviewed. Future issues which are likely to impact on the cost effectiveness of these technologies, or the quality of final products, are identified. These factors suggest directions for development of ilmenite beneficiation technologies to achieve economic production of the quality of feedstocks which will be demanded by the TiO2 pigment industry in the future.

Jan 1, 2001

By T Huynh, K Tungpalan, E Wightman, M Edraki, S Palaniandy

Most preventive environmental management practices promote proactive integrated approaches to waste management. For example, life cycle assessment is often used to find the ‘hot spots’ of environmental burdens. This kind of approach is often based on generic data and has rarely been used for tailings. Besides, life cycle assessments are less useful for designing operations or simulating changes in the process and consequent environmental outcomes. It is evident that an integrated approach for tailings research linked to better processing options is needed.The aim of this Nextmine™ project is to develop new tailings management models by streamlining orebody characterisation, process optimisation and rehabilitation. We present an integrated tailings management approach and preliminary results from a case study. Combined grinding and flotation models were developed using geometallurgical data from the orebody, to predict the properties of tailings produced under various processing conditions. The modelling scenarios based on the case study data provide the capacity to predict the composition of tailings and the resulting environmental management implications. For example, the type and content of clay minerals in tailings will affect the geotechnical stability and water recovery. Clay content will also influence decisions made for paste or thickened tailings and underground backfilling.CITATION:Edraki, M, Huynh, T, Wightman, E, Tungpalan, K and Palaniandy, S, 2015. An integrated approach to proactive tailings management, in Proceedings Tailings and Mine Waste Management for the 21st Century , pp 323–332 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 27, 2015

By JOHN G. RAYNER

An examination was made of the filtration characteristics of a haematite slurry using a range of polyacrylamide based flocculants in solutions containing up to 3 per cent sodium chloride. The polymers used were "high" and "Iow" molecular weight and had from 0 to 40 per cent charged groups.Increasing charge density tends to reduce the dose required to achieve optimum performance measured by filtration rate and by cake moisture. In general increased salt addition tends to increase the dosage required to achieve these optima. Both these observations result from the change in polymer extension and accord well with the bridging theory of flocculation.The dose required for optimal cake moisture is up to three times greater than that required for optimal filtration rate. This effect is reasonably consistent for all polymers studied and appears to be non-linearly dependent on salt concentration, with the difference being small at 0 and 3 per cent but quite significant at 1 per cent.

Jan 1, 1987

By M Morey

Ok Tedi Mine is located eighteen kilometers from the Irian Jaya border in the Star Mountains, Western Province, Papua New Guinea. Sequential flotation concentrators produce a copper / gold concentrate for market, and a pyrite concentrate for environmental containment, with low sulphur tailings from the pyrite flotation sequence being discharged to river. Strict sulphur assay targets are set for the riverine discharge. Current porphyry and skarn ore blends from open pit operations at Mt. Fubilan will cease by 2017. However, drill cores indicate an economic ore body in the skarn ores surrounding and below the current pit limits. With proposed mining from a western pit wall ‘cut back’ and an eastern pit wall underground operation, potential for ore ageing in sub level cave underground stockpiles is apparent. With little information in the literature, Ore Ageing test work at prefeasibility level consisted of multiple one tonne stockpiles of -50 mm crushed rock. For the bankable feasibility study, a successful test work program was implemented utilizing 40 tonne ROM ore stockpiles composed of exposed pit extensions of future ores. Realistic ageing profiles of Skarn ores were obtained from one tonne monthly samples subjected to laboratory testing. Test work outcomes included:• Similar ore ageing profiles from both the pre feasibility study (PFS) and feasibility study (FS) programs, suggesting ore susceptibility to oxidation has greater effect in ore ageing than rock size for Ok Tedi skarns. • Laboratory rougher flotation of pyrite showed significant variation in sulphur recovery rate, suggesting three classes of pyrite floatability.• Laboratory rougher flotation of both copper and pyrite for up to 19 months ore ageing from 11 stockpiles, suggested three stages in the ore ageing process.

Aug 8, 2011

By S G. Gemell

"The financial model is an integral component of any project evaluation based on mineral resources, ore reserves and (at least internally) exploration targets. Given the unity of purpose for preparing financial models for project evaluation purposes, the diversity of both format and content of the finalised models is surprising. Many models are prepared by staff or consultants who are comfortable with a particular format that may be used for other purposes, such as budget preparation or financial reporting. It is natural in these situations that the practitioner will take these models and adapt them to the purpose. The end result may or may not succeed in providing a clear, accurate and sufficiently detailed view of the project’s economic viability.When preparing a model, the practitioner should be cognisant of the interpretation and review, or audit, process. The auditor may be a consultant or employee of a bank, potential equity provider or of the project sponsor itself. Depending upon the scale of the project and the level of participation of the entity that the auditor represents, the financial model will be interrogated more or less rigorously. In any event, the end user will require the model to permit easy change of inputs and will wish to confirm that such change is appropriately and thoroughly transmitted throughout.Accordingly, there are some ‘dos and don’ts’ that can be readily applied in the creation of the financial model that will greatly assist the end user, not just in the change of inputs, but also in reviewing the model’s integrity. The less time and effort required by an auditor in this regard is reflected directly in the cost of the review process.CITATION:Gemell, S G, 2016. Financial modelling with the auditor in mind, in Proceedings Project Evaluation 2016, pp 172–180 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By D Kepert

It is the role of the exploration geologist to create wealth through the discovery, delineation and characterisation of economic mineralisation. This requires a critical depth of geological understanding.Unfortunately, the resource industry is well known for its cyclic nature. Many of the current generation of workers have only ever experienced the boom of the ‘super-cycle’ and are only just discovering the negative side to the business. For the case of the geologist and especially the exploration geologist, the magnitude of peaks and troughs are usually amplified and may become destructive to all parties. During the uptime a healthy stream of exploration good news becomes the staple diet of company releases, in particular those of junior companies attempting to bolster the share price. The geological knowledge and experience gained thus forms a significant and integral part of the value and therefore, future of a company. On the downturn it is often viewed that geologists are a luxury, an optional extra and a burden on the bottom line with companies entering a period of memory loss and myopia.Retention of geological knowledge however remains critical as projects, companies and cycles mature. Beyond exploration per se, this knowledge becomes both fundamental in de-risking and commercialising an asset (through development or divestment) and in positioning the company for cyclic or counter-cyclic opportunities.The growth and retention of this knowledge base is difficult to quantify in terms of direct value but becomes one of a successful resource companies greatest assets. At worst, its loss can lead to millions of investors’ funds wasted on missed opportunities, drilling, or poorly designed plant and mine.But the rocks are around for the longer haul and pay little notice to the vagaries of the scurrying of Man.This paper reflects on some of the authors own observations through 25 years of iron ore exploration, in why it is critical to always rigorously question the prevailing geological (mis)understanding and the technical and commercial benefits which that may bring, and looks forward to the future.CITATION:Kepert, D, 2015. Geology – the affirmative case, in Proceedings Iron Ore 2015, pp 285–298 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

By L J. de Lange

As a material asset for mining entities, the resources and reserves (RR) estimation processes are surprisingly underrepresented in the assurance landscape. When press reports expose them being inaccurately reported, or in merger and acquisitions processes, their importance becomes clear. The impact of erroneous RR numbers (both positive and negative) could have a material impact on an entity’s reputation and value.The technical nature and ‘black magic’ connotations of the RR estimation processes are possibly reasons why audit committees are not actively involved with it. Internal auditors avoid the RR processes for similar reasons. Also the traditional approach to obtain assurance on RR is expensive and is therefore only performed when it is absolutely required.However, stakeholders’ expectations of good governance are growing. Part of this increased focus is based on attaining a higher degree of certainty about the current and forecasted position of the entity. Stakeholders are also increasingly more interested in non-financial areas of entities, as the future success of an entity is more than a set of financial metrics.Consequently, the RR estimation processes should be visible on the agendas of audit committees. Monitoring of key controls is required as part of the governance obligations for senior management and the audit committee. So once it is on the audit committee’s agenda, the question then becomes, how will that agenda be supported by an assurance process that is cost-effective?The main objective of the paper is to describe a model of RR assurance that has been effectively applied in some mining companies. The paper discusses one particular approach that provides an audit committee with the required assurance regarding RR processes. The approach ties the assurance needs of the audit committee to the needs of the technical experts in the entity, therefore involving two important figures. It also offers assurance providers with a model to audit ‘through’ the RR processes rather than ‘around’ them. The paper then discusses top-down and bottom-up approaches that provide assurance at different levels of an entity.A governance audit that focuses on the RR processes is suggested as a top-down approach. A bottom-up approach assesses the design adequacy of internal control processes. A hybrid model is described which meets the needs of diverse stakeholders including the audit committee and the RR community.The hybrid model combines the expertise of professionals in both internal audit and RR. The right balance of these skills directed by a singular approach ensures that a credible result is achieved.This approach is not as expensive as some verification approaches used in the industry and can, as a result, be performed on a more regular basis.The last element of the paper looks at implementation of the reporting mechanism. An assurance process aimed at continuous improvement further enhances the robustness and reliability of RR reported by an entity.CITATION:de Lange, L J, 2016. Resources and reserve assurance processes – a framework for improved governance, in Proceedings International Mine Management Conference, pp 21-34 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016