Search Documents

The production of synthetic rutile from ilmenite using hydrochloric acid leaching is investigated. Previously published data is used to comment on the optimum process conditions. It is shown that the most important aspect to consider is the maximisation of impurity dissolution and the minimisation of titanium losses.

Jan 1, 2001

By van der Walt TJ, van Deventer JSJ, Reuter MA

Owing to their complexity, many metallurgical processes are difficult to model fundamentally, and as a result more attention has been focused on the use of artificial intelligence techniques to simulate these processes. In this paper recent advances in the use of neural nets to model processes not amenable to conventional methods are discussed. These include the application of a new modelling methodology based on the use of neural nets for the dynamic simulation of metallurgical processes, the use of conventional techniques in conjunction with neural nets to simulate gravity separation circuits, as well as the detection of gross errors in variable measurements by means of a neural net representation of the relation between measurement and constraint residuals.

Jan 1, 1993

Much of the theory upon which the Sublevel Caving (SLC) method is based was developed in Scandinavia many years ago. It was based mainly on æbinÆ theory and æellipsoid of drawÆ configurations derived from sandbox models. In many cases, classical SLC layouts influenced by these early theories obtained relatively poor results. Early dilution entry, low tonnage factors and low recoveries were commonly experienced. SLC soon gained the reputation of being a high dilution, low recovery and development intensive method. This led to SLC falling into disfavour generally, other than as a pillar reclamation method used at the end of the life of mines. More recently a number of mines, notably those in Australia, have adopted SLC as a primary extraction method and have achieved good recovery results. The reason for the better results is believed to be an outcome of modifications in some of the basic design parameters and operational procedures. This has led to questions being raised regarding the original æbin theoryÆ assumptions and classical SLC layout designs. It is clear that the fragmentation and flow characteristics occurring in a choke blast situation (compaction of waste, variable size and shape of fragmentation throughout the ring) conflicts significantly with the assumptions of regular loose flow of uniform, fine grained, material in a bin. Interactive versus independent draw conditions can also materially effect the outcome of a SLC operation. The good results obtained more recently can only be explained by using ænewÆ models of behaviour, which have to a large extent been borrowed from block caving. If these models are correct, they point to a number of design and operational changes that can be applied to improve the effectiveness of SLC. This paper discusses the factors that may not have been fully considered in early SLC design and modelling. It emphasises the importance of delayed dilution entry as a primary objective of sound SLC design and provides a basis for efficient SLC design and operation.

Jan 1, 2000

By W Y. Kim, Y B. Kang, Y J. Park

The phase equilibria in the Al2O3–TiOx system were investigated in wide ranges of temperature and oxygen partial pressure: 1300~1600°C and 10-16.6~10-8 atm, respectively. The equilibrium phases and their compositions were identified using X-ray diffraction (XRD) and electron probe microanalysis (EPMA), respectively. Most noticeably, a wide range of pseudobrookite solid solution was found in equilibrium with almost pure alumina. At each temperature, the cationic ratio expressed as RTi = nTi/(nAl + nTi)) of the pseudobrookite solid solution showed a noteworthy dependency on the oxygen partial pressure. This resulted in the formation of a broad range of pseudobrookite solid solutions, ranging from Al2TiO5 (RTi = 1/3) to Ti3O5 (RTi = 1.0). Complete miscibility within the pseudobrookite solid solution was observed at 1600°C, with only a minor miscibility gap becoming evident below 1500°C. Based on the results obtained in the present study, the behaviours of Al2TiO5 pseudobrookite have implications in two key domains: (1) understanding changes in the physical properties of the materials, and (2) elucidating the evolution of Al–Ti complex oxide inclusions in liquid steel which can deteriorate the steel cleanliness.

Aug 21, 2024

By Espi J

The Nena high sulphidation deposit, located in the Sandaun Province, PNG, contains a measured and indicated resource of 51 Mt of copper ore grading 0.5% Cu and 0.6 g/t Au at a 0.5% Cu cut-off. The copper orebody is overlain by an 18Mt oxide gold resource grading 0.1 % Cu and 1.4 g/t Au at a 0.6 g/t Au cut-off. The deposit is hosted in advanced argillic altered pyroclastics interstratified with lavas, volcanoclastics, epiclastics and sediments of the Debom Volcanics within the Frieda River Intrusive Complex. Foraminiferal sediments indicate the Debom Volcanics to be Early-Middle Miocene in age. Alteration is elongated along, and concentric about a northwest trending structure (Nena Structural Corridor) which is about 7km in length. The inner two alteration types, residual and massive silica-alunite are strongly brecciated and host the bulk of later hypogene Cu-Au mineralisation. Weakly mineralised weak silica- alunite and barren peripherally zoned clay alteration surround the inner mineralised alterations. The hypogene sulphide deposition was polyphasal, episodic and is zoned from north to south from covellite-enargite ¦ chalcocite (5600N to 5200N) to a mixed enargite-luzonite (5200N to 4700N) to luzonite-stibioluzonite (4700N to 4400N) in the south within a 1200m long by 300m diameter sub horizontal pipe like body. Paragenesis studies indicate that pyrite ¦ marcasite were introduced early with barite and black native sulphur before deposition of banded pyrite (melnicovite) with barite during a period of brecciation. Continued brecciation allowed bladed covellite ¦ chalcocite followed by enargite-luzonite-stibioluzonite ¦ pyrite (brassy) and minor acicular covellite deposition. Yellow native sulphur and trace amounts of galena were deposited in remaining pores. Pre-acid alteration intrusives domed the mainly volcanic stratigraphy in the southwest and post-mineralisation porphyries in the northeast truncate mineralisation. Supergene processes and erosion have modified the top of the deposit, creating a 45m thick goethitic-scoroditic-haematitic gold cap above a 40m thick (on average) chalcocite rich supergene blanket. Lesser amounts of digenite, covellite native copper and rarely seen malachite occur in the supergene copper zone.

Jan 1, 1997

By S Coward, J Vann, R Wolff, S Jackson, S Moayer, A Bye

Uncertainty about the future and orebody should significantly impact evaluation of mining projects. Scenario planning, widely used in other industries, for example in the petroleum industry, can provide organisations with an opportunity to explore the consequences of uncertainty on their future plans. By developing plausible scenarios, scenario planning assists decision makers by allowing them to make systematic and possibly effective decisions for the future. This paper reviews existing mine project evaluation in the context of a new framework called scenario-based project evaluation (SBPE) (Vann et al , 2012) that addresses many shortcomings of existing approaches. SBPE uses conditional simulations (CS) models as inputs which are evaluated against future alternative project pathways (æalternativesÆ). These alternatives are evaluated using multiple plausible images of the deposit (CS realisations) which capture realistic variability and as an ensemble, map uncertainty of various orebody attributes at fine scale. The alternatives can involve different mining, stockpiling, blending and processing strategies. The ultimate output is a (stochastic) set of cash flows for each alternative from which financial measures, such as NPV, can be derived. Alternatives can then be explored in the presence of against external scenarios such as changes in prices, costs, and taxation. The obvious problem with such data rich results is knowing which scenarios or group of scenarios are optimal.An innovative approach to robust stochastic optimisation (RSO) suited to the SBPE framework is presented here for the first time. This approach to RSO aims to deal with the large number of alternatives generated from SPBE. The goal of applying the RSO approach to SBPE is to identify robust strategic alternatives (project configurations) which have the flexibility to deal with variability and uncertainty of geological and processing inputs such as density, grade and process performance. By applying the proposed RSO method, it is possible to deal with uncertainty and identify the best project configuration in the face of a large number of envisaged scenarios. A case study is provided, in which we have tested the application of the proposed method and compared the result with conventional methods. An important conclusion from this research is that selecting the value of the penalty coefficients in the RSO approach proposed is (as is all optimisation) an exercise of trade-offs; a higher net present value (NPV) is generally associated with a higher risk and a lower risk is associated with a lower NPV. Indeed, this is a strong argument for considering the RSO approach outlined here over more conventional approaches.CITATION:Moayer, S, Vann, J, Coward, S, Jackson, S, Bye, A and Wolff, R, 2012. An innovative approach to robust optimisation for scenario-based mineral project evaluation, in Proceedings Project Evaluation 2012 , pp 141-148 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

By C Fong

Compliance Planning is an active approach to ensure mining operations align more closely to their longer-term plans. Through Compliance Planning, operations can not only measure their performance on intervals as short as intra-shift, but they can then apply corrective measures to ensure they remain as close as possible to the plans. Compliance Planning targets short-term and execution level teams, as these are the shortest duration planning divisions commonly found in mining operations. Compliance Planning combines live information with intelligent planning capabilities to provide a framework that enables mining operations to realise a significant improvement in reconciliation of plan to actual movements.

Jun 22, 2022

By C Balci, D Tumac, A Sheterpour-Mamaghani, E Dogan, A Kocbay, T Erdogan, A Gumus, H Copur, E Altintas

Excavation of vertical and/or inclined shafts in the underground structures requiring careful design and planning. Raise Boring Machines (RBMs) are commonly used for excavation of shafts for different purposes such as ventilation, orepass, and human-material transportation. Proper selection and accurate performance prediction of RBMs are two main parameters affecting the cost estimation and planning/scheduling. Indentation test is one of the most preferred methods that can be used to predict advance rate of RBMs. This study aims at suggestion of new prediction model for instantaneous penetration rate of RBMs based on indentation tests. Different rock (core) samples (with different geological origins) are obtained from the raise boring application projects in Turkey; then, the indentation tests are carried out on them by using a real-life insert (button), which is used in reamerhead cutters investigated in this study. Finally, the statistical relationships between the field performance and the indentation indices are investigated. The study indicates that the brittleness index (the ratio of maximum applied force to corresponding penetration) can be used to predict instantaneous penetration rate of RBMs used in the vertical raise bored shafts excavating rocks having uniaxial compressive strength lower than 100 MPa.

Nov 29, 2022

By Gillies A. D S

The active history of foreign investment in the mining industry has resulted in Australia emerging as a major world producer of a range of mineral commodities. The current contribution to the national economy represented by mineral production and export revenues would not have occurred without both capital and expertise provided by foreign investors in the past. The initial foreign investment has led to the formation of Australian majority owned and controlled multi-national mining groups such as BHP Limited, CRA Limited and MIM Holdings Limited. These Australian companies, and others, are playing a significant part as foreign investors in the mining industries of Papua New Guinea (PNG) and Indonesia. The study examines issues of importance in foreign investment in each of the countries. It concludes that in Indonesia, the nationalisation of the Dutch mining industry in 1957 did much to deter foreign investment. The remarkable degree of policy stability brought about by the Contract of Works system since 1967 has gone a long way to restoring that confidence. The level of investment in the Indonesian mining sector is steadily increasing. Its attraction to Australian investors is a combination of policy stability, favourable fiscal terms, geological prospectivity for a range of commodities and proximity to Asian markets to the north. PNG has a stable policy regime which until recently has been free from political interference at the administrative level. As such, investors were developing confidence in the system and investment was progressively increasing as evidenced by growing exploration expenditures up to 1988. The 1989 Bougainville revolution caused a re-assessment of PNG's investment and country risk. The recent Mt Kare incident has further raised concerns over the government's ability to guarantee internal security. Foreign investors are faced with weighing concerns with the risks of operation in PNG against the undoubted geological prospectivity of the country. The fiscal regimes of Australia, Indonesia and PNG were compared by means of a simulated open pit gold mine in each country. The effect of taxation is examined by reference to the relative change in project internal rates of return (IRR). The comparison of the relative differences between pre-tax and post-tax IRRs provides a measure of the relative attractiveness of each fiscal regime.

Jan 1, 1994

This paper describes a detailed geostatistical study of producing copper orebodies at Mount Isa Mines Limited in Queensland, Australia. As a result of this work, kriging has been adopted for grade estimation for final stope design at Isa Mine. Extensive variogram and back analysis studies indicate that one relative variogram model can be used to give optimal kriged grade estimates from production sampling throughout the 100 million tonne copper orebody complex. The kriging method replaces a computer technique used at [sa Mine based on inverse distance weighting using parameters chosen from experience.Comparative stope designs based on 10 million tonnes of ore indicate a 16% increase in minable ore tonnage at a grade well above the cut-off, as a result of the geostatistical work.Although this paper is written as a practical description with simple explanations of geostatistical concepts, the theory and use of relative variograms has been expanded. A possible link is suggested between relative variograms and first order kinetics of natural mineral concentration processes.

Jan 1, 1982

By S Zheng, Y Zhang, Z Wen, S Ma

Red mud (RM) is a solid waste product generated during alumina refinery process, and is usually stored in SFs (SFs) because it canÆt be disposed of easily. In this paper, environment degradation caused by RM-SFs was systematically assessed by the method of single factor pollution index based on the analysis data of water, soil and atmosphere sampled around one newly-built and one decommissioned RM-SFs, which are managed by an alumina production company in China. The results revealed that the ambient environment around RM-SFs is seriously polluted by alkali and mercury (Hg). The pH value of RM leachate, surrounding surface water and groundwater are all higher than the limit of water quality standards in China. And as a possible result of overflowing of high alkaline leachate, soil pH value for the decommissioned SF decreases with increasing distance between the sample collection points and the closest side of RM storage facility (RM-SF). Total Hg concentrations in RM leachate, surrounding surface water and groundwater all exceed Grade III limits of ChinaÆs Environment Quality Standards for Surface Water and Groundwater. However, the air quality was little affected as the daily average of TSP in the air is below grade II values of Chinese Ambient Air Quality Standard.CITATION :Wen, Z, Ma, S, Zheng, S and Zhang, Y, 2012. Assessment of environmental quality impacts caused by red mud storage facilities in China, in Proceedings Life-of-Mine 2012, pp 51-58 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 10, 2012

By García B., Wolff E.

The pellet qualities primarily depend upon the thermal profile and gaseous environment during induration. During the induration of the pellet, it undergoes physical as well as chemical changes. Physical changes are mostly due to sintering and chemical changes are due to carbon burning inside the pellet. The effect of carbon on sintering is investigated on a single pellet scale using an optical dilatometer. Sintering is a complex process that involves transportation through various mechanisms. Sintering is quantified in terms of sintering ratio and the kinetic parameter, exponent ‘n’, under isothermal conditions is deduced using the power law equation. The value of n can be used to estimate the sintering mechanism at different isothermal temperatures. Also, the activation energy is calculated using the empirical Arrhenius equation. The activation energy of 0 per cent coke and 1 per cent coke-containing pellets are 531.0 kJ/mole and 552.6 kJ/mole respectively. The order of magnitude of activation energy suggests the same mechanism in both cases. Although the mechanism of sintering is the same, 1 per cent coke-containing pellet sinters more at any isothermal temperature.

Jun 17, 2024

By Carr SD

The Omineca Belt of the Canadian Cordillera straddles the western boundary of the North American paleocontinental margin and accreted oceanic and island arc terranes. Crustal thickening of the orogenic belt was initiated in the Jurassic and culminated in latest Cretaceous and Paleocene times.Thin-skinned shortening of the Rocky Mountain Foreland Thrust and Fold Belt was balanced by basement-involved crustal imbrication within the Omineca (hinterland) Belt. Middle and upper crustal rocks of the hinterland (Selkirk allochthon) were thrust eastward and ramped onto basement of the North American continental margin. By latest Paleocene the southern Omineca Belt formed an elevated crustal welt that was at least 60 km thick.Within less than 3 Ma of the culmination of crustal thickening the belt was rapidly uplifted and tectonically denuded. The southern Omineca Belt was extended by as much as 80% as upper crustal rocks were displaced on moderate to low angle normal sense shear zones and brittle normal faults. This oro-genic collapse is interpreted to be a gravitational response to crustal thickening and thermal soft-ening, facilitated by reduction in plate-boundary-induced far field stresses.

Jan 1, 1990

By W R. Adamson

Cerro Vanguardia SA (CVSA), property of AngloGold Ashanti, mines gold and silver from a system of vetiforme orebodies located in the south of the Argentine Patagonia, in the Province of Santa Cruz.Surface mining techniques are applied to develop a series of narrow pits with an average waste to ore ratio of 26:1. This quite unique constraint brings into focus the need to maximise inter-ramp and final wall angles, leading to a strong need to optimise wall control drilling and blasting in order to reduce back-break damage to an absolute minimum.The paper describes a program of applied investigation and design modification implemented during?2008?and?2009 in?two?separate pits of Cerro Vanguardia. Three distinct yet complementary damage mechanisms were identified and observed during the field components of the work; vibration induced strain fracturing, surface cratering around blasthole collars and quasi-static loading and unloading of the surrounding rock mass as a consequence of poorly controlled confinement.With these mechanisms identified, a measurement, modelling and modification campaign was conducted in order to reduce the incidence of each source of damage. Interactive design analysis and modelling, near-field vibration measurement, video capture and the application of electronic initiation technology were supported by seed wave modelling and topographic evaluation of the achieved results.Results point to the usefulness of simulation techniques for determining optimum delay timing to reduce vibration impact, while the visualisation of explosive energy distribution produced by drilling and explosive loading decisions assists in reducing the probability of over-confinement.This paper presents relevant aspects of the two fieldwork campaigns:1) describing the application of the techniques, and2) summarising the results obtained.

Nov 8, 2011

By H Wright

Black Rock Cave (BRC) is a sublevel cave which was developed in 2018–2020 and has been in production since November 2020. BRC is part of the Mount Isa Mines complex and extracts a leached orebody comprising of high-grade chalcocite ore, situated below the historic Black Rock Open Cut workings. The mine is owned by Mount Isa Mines and operated under contract with PYBAR Mining Services. In 2021 a number of rockfalls occurred throughout the mine and were increasing in frequency. This culminated in a major rockfall on the decline in June 2021, after which the decision was made to withdraw all persons from the mine, initiate rehabilitation and conduct further investigations to deduce a safe method to provide long-term support. The rockfall investigations have shown that the corrosive nature of the highly leached rock mass can consume a split set in less than 18 months. A review of potential corrosion resistant ground support methods concluded that steel split sets have a safe lifespan of six months at BRC, and that all workings must have corrosion resistant support installed prior to exceeding the safe life of the friction bolts. The review recommended the use of 4 m cable bolts as the most suitable method of corrosion resistant support. This new support system, and the requirement to rehabilitate all mine workings within the leached orebody, had an impact to the schedule and an effect on both equipment and manning levels at BRC. Accelerated jumbo rehab allowed access to the production levels within two months of the rockfall. Cable bolting then followed the jumbo bolting in all leached areas. The direct impact has been ten months of reduced production, due to night shift closures of the decline to enable cable bolting. The impact to the mine has been minimised by the small flexible team that enabled the mine plan to change rapidly and often to accommodate the challenging conditions. In less than two months from the rockfall event, production had resumed. Within ten months of concluding that the mine required; full rehabilitation, a new support system and a full re-schedule, normal mining operations had restarted, with pre-event productions rates being achieved.

Mar 29, 2023

By G N. Phillips

Global annual gold production has been remarkably constant over the last decade at ~2500 t/a3. The major producers today are China (annual production over 350 t and rising), Australia (250 t), USA (240 t), Russia (200 t) and South Africa (190 t and falling); these figures are representative of recent years but approximate. Demand from jewellery, investment, industrial and dental uses has been in excess of mine production for the last decade, by approximately 1000 t/a.Ongoing exploration is the life-blood for gold mining, and more so than for many other metals. Explorers consider sovereign risk, security, labour costs, commercial terms, land availability and inherent geologic prospectivity to determine where to focus their activities. Exploration success over the last decade has been shared by established major producers like Australia, Canada and USA, several countries in West Africa, and many parts of the Pacific margin. Although gold-only deposits have dominated world gold production historically, the gold-plus types, especially copper-gold, are becoming more important.Australia experienced a major period of exploration success from 1979 that has led to annual gold production rising from 17 t in 1979 to 250 - 300 t/a recently. Today, Australia has economic demonstrated resources of over 9000 t Au, which has risen progressively from 220 t in 1979. The majority of production has come from gold-only deposits in the Yilgarn craton in the southern half of Western Australia, but there are a few large Proterozoic deposits in central Australia including Olympic Dam, Telfer and Starra, which are mostly gold-plus types with copper and gold. Large goldfields in the younger host rocks of eastern Australia include the gold-only deposits of Victoria and North Queensland, and gold-plus deposits of New South Wales.CITATION:Phillips, G N, 2013. Australian and global setting for gold in 2013, in Proceedings World Gold 2013 , pp 15-22 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 26, 2013

By I Coombes, M Trim, Y Sun, M McRae, A Spiegl, H Lagger, A Amon, P Barraclough, M Villeneuve

The Brisbane Airport Link Project (AirportlinkM7) includes the design and construction of more than 12.5 km of tunnels, with the Kedron interchange including four ramp tunnels that intersect with mainline tunnels and result in caverns with spans of up to 26 m. These caverns are in highly variable ground conditions with less than 35 m of cover underlying residential neighbourhoods and commercial properties. The Kedron caverns were constructed using the sequential excavation method (SEM). Owing to complex geometry and excavation sequence, the caverns were designed based on numerical modelling methods, including both two- and three-dimensional models. These numerical methods were used to develop a suite of support types with excavation sequences for the expected range of ground conditions. A combination of methods that included in-tunnel monitoring (convergence monitoring and extensometers), probe holes, endoscope probes, face mapping and ground settlement measurements were used to verify performance of the tunnel support systems and to select and refine the appropriate support system for each section of the caverns. The construction monitoring data indicated that numerical modelling can provide a good basis for predicting the performance of large-span underground openings in highly variable ground conditions. This paper presents a comparison of the performance of the caverns predicted by state-of-the-art numerical models and the actual measured performance.CITATION:McRae, M, Villeneuve, M, Trim, M, Sun, Y, Barraclough, P, Spiegl, A, Amon, A, Lagger, H and Coombes, I, 2014. Brisbane Airport Link Project – design and construction of the 26 m span Kedron Caverns: comparing monitoring data with the design, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 295–306 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

Vertical flow systems (SAPS, vertical flow wetlands) are increasingly used for passive treatment of mine drainage that is net acid. Data on 30 systems in eastern US show that well designed systems typically add about 40 g/d/m2 of alkalinity to influent net acid water. If they are designed with a conservative loading rate of 25 g/d/m2 and carefully constructed, they produce net alkaline water. Alkalinity added depends on influent acidity, Fe, pH, and retention time, and ranges widely, from 7 to 484 mg/L, so this is not a useful design criterion. Some waters may benefit from retention times longer than the conventional 12 - 16 hours, but the design must be partly based on cost-benefit considerations. Systems with fine limestone added to the compost layer perform better than average, perhaps to an alkalinity generation rate of 80 g/m2/d. A variety of problems are noted in the 30 systems and others reported in the literature. Systems with high influent Fe (> ~75 mg/L, varying with pH) tend to gradually decrease in flow rate because of precipitation and settling of Fe hydroxides on top of the compost layer. Some high-Fe systems precipitate Fe in the limestone layer, suggesting inadequate compost thickness, or short-circuiting through thin spots. Systems with Al exceeding about 10 mg/L tend to plug because of Al hydroxide precipitation in the limestone layer. Flushing only removes a small part of this precipitate, but can extend life. Some systems are ineffective because of failure of the inflow system. Some systems are uneconomic because they are oversized. A continuing program of inspection and maintenance is necessary for long-term performance.

Jan 1, 2003

By D Xu

BHP Billiton Iron Ore is one of the world’s premier suppliers of iron ore. It currently has operations in Western Australia and Brazil and also has some iron ore interests in West Africa.BHP Billiton’s Optimisation R&D team has developed a proprietary mine planning optimisation tool that uses a mixed integer linear programming (MILP). This tool is called Blasor and it is used to rapidly evaluate the resource development potential (RDP) scenarios for the company’s business development strategy. In addition it generates life of asset (LOA) mine plans for the company’s operations and growth projects. The Blasor optimiser maximises the discounted operating cash fl ow (DCF) as the objective function, subject to mining, processing and transportation capacity constraints and blended product quality constraints. The paper will outline how Blasor has been applied to the resource development potential (RDP) strategy scenario studies, growth project evaluations and LOA mine planning within BHP Billiton Iron Ore.The practical application of Blasor to resource planning optimisation within BHP Billiton Iron Ore has demonstrated the value of such a tool for optimising strategic directions through the evaluation of a number of carefully proposed scenarios and maximisation of operational decisions, such as cut-off grade, open pit development sequence, etc. Particularly for the company’s business development direction studies, Blasor plays the role of a fair valuation tool in that it discovers the most valuable resource development scenario, thus establishing a sound basis for comparing the economic merits of each scenario.

Jul 11, 2011

By D Connelly

As the resources sector becomes tougher with rising costs and cyclical metal prices, mining companies need to continue to reduce their costs and do more with less. Many new resource projects fail to come in under or on budget based on Feasibility Studies. Particularly, capital expenditure (CAPEX) proves difficult to achieve for resource projects. A number of resource projects have failed because of aggressive plant CAPEX cost cutting resulting in projects with no surge capacity and are unable to achieve design throughput. In addition, the plants are not operable because of the omissions. In recent times many businesses have also experienced the "costs" of simply implementing aggressive operating "cost cutting” measures as a strategy for solving business performance problems. This paper looks at technology driven, employment related, luxury cuts, department cuts and restructuring cuts. In the past companies used an incremental approach based on the use of past budget information as an integral part of the budget construction process going forward. The use of performance reports and Management Information Systems (MIS) is examined along with the role of continuous improvement in achieving sensible cost cutting.

Aug 8, 2011