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

"A new approach to mineral project evaluation is described called Scenario-Based Project Evaluation (SBPE). SBPE incorporates well established æscenario planningÆ and æscenario thinkingÆ approaches, which are used extensively in other industries,?most notably the?petroleum industry. While most scenario planning is qualitative and non-probabilistic, the approach described here includes both quantitative and qualitative aspects. SBPE is complementary to optimisation approaches and allows mining firms to build and operate projects that are more robust in the face of adverse changes as well as proactively respond and exploit the upside offered by a realistic assessment of variability. The approach has potential to improve project performance and decrease operational risk. It also has important applications for currently operating mines.Conventional evaluation of metalliferous mineral deposits uses estimates of metal grades and deleterious attributes in singular æorebody modelsÆ, usually 3D block models, which fail to capture two critical aspects that underpin the realised value of mining projects: the inherent uncertainty of the estimated attributes the spatial variability of attributes, at the scale of mining selection, which impact on downstream processing steps and fundamentally drive realised value. While singular models are appropriate for estimating block averages, conditional simulation (CS) models of the relevant attributes are needed to represent uncertainty and capture spatial variability. Any attributes that can be either built into CS models and/or modelled in the envisaged mining/processing steps, can be evaluated fully through to highly ægranularÆ (ie detailed and un-smoothed) cash flows. A complete view of SBPE relies on selected strategies being tested against plausible æscenariosÆ of factors external to the project and thus outside management control. æExternalitiesÆ captured in such scenarios include market prices, costs and taxes. Via SBPE, project managers may demonstrate that there is material value in preserving or purchasing options that provide future flexibility to respond to the changing externalities or changes in orebody performance. Such flexibility generally comes at a cost but is very difficult to value. It is argued that full value chain evaluation using SBPE can help to value these options for a mining company. A case study for a gold mine is presented.CITATION:Vann, J, Jackson, S, Bye, A, Coward, S, Moayer, S, Nicholas, G and Wolff, R, 2012. Scenario thinking - A powerful tool for strategic planning and evaluation of mining projects and operations, in Proceedings Project Evaluation 2012, pp 5-14 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

May 24, 2012

By Koppe J. C, Costa J. F C L

This paper compares different results for overburden volume estimation assisted by geoestatistics, particularly using kriging methods. The main goal is to obtain the most reliable digital terrain model for the calculation of the overburden volume. The data was collected on an irregularly spaced grid and interpolated values were calculated to provide a denser, more regular data set before volume estimation. The field work was developed at the Butia-Leste Coal Mine, southern most Brazil, where an accurate survey was done using a total station theodolite with electronic data collector. The study was developed in five main steps: data acquisition, exploratory data analysis, spatial continuity measurements, point and block kriging estimation and verification of the results. Data acquisition was carried out on a 5 x 5 in grid. This dense grid provides an exhaustive data set of the real terrain against which data subsets can be compared for the various interpolation procedures and volume calculation. This provides an interesting insight into the influence of the number of data on the estimation error. Univariate statistics were used to compare each data subset and the exhaustive dataset. Ordinary kriging on the data subsets followed by contouring was carried out using Geoeas and Surfer software respectively. A subroutine written in C provided the link between the files generated in Geoeas and subsequent contouring routines embedded into the Surfer package. Omnidirectional and directional variograms were modelled defining the parameters for kriging estimation using Geoeas. Different variogram models were checked through cross validation prior to kriging. A comparison between the magnitude of the differences in volumes calculated with the different DTMs was attained. These final result indicates the sensitivity of the volume obtained to the number of data points. As the number of data points increases the estimation error decreases, but at some point there is no significant decrease in the final volume with the collection of additional data.

Jan 1, 1995

The key concepts relating to the calculation of recoverable reserves for selective mining in open pit gold operations are discussed. While the general concepts are relevant to a wide range of gold ore bodies, their application is specific to particular ore bodies.The important factors contributing to the recoverable reserves aregeology, mining method, dilution, ore loss, sampling methods and theultimate bench height used in production.The implications of current methods of computing recoverable reservesare reviewed and some alternative approaches to recoverable reservecomputation based on production experience are presented.

Jan 1, 1986

In most States of Australia it is a legislative requirement for underground mines to have a separate means of egress from the normal means of ingress to permit the safe evacuation of workers to the surface in event of an emergency. Such egress may be in the form of a ladderway equipped shaft/underlie or trafficable incline/decline. Additionally, there is a general requirement to have one or more airways, separate to the main shaft or other principal entrance of an underground mine, extending to the lowest level to permit ventilation to all parts of the mine. Fulfilling these requirement is difficult in the development phase of a mine when access underground is achievable by only a shaft or decline in the process by being sunk. What is frequently practiced in Australia is for production to then commence, sometimes in association with continuing development, in the same configuration without the establishment of this separate method of egress to the surface nor additional airway/s with reliance on refuge chambers to cater for back up in any emergency. Not only, could this jeopardise the health and safety of workers in case of an underground emergency it could be construed as a statutory breach of legislation. While recognising that refuge chambers are often used throughout underground operations nowadays their equipping and the criteria for their location needs to be bought into focus. This presentation discusses how such legislative requirement can be met alongside the use and appropriateness of refuge chambers.

Jan 1, 1998

By J Manuel, A Trudu

Regulations on the emission of particulates from sinter plant stacks are becoming increasingly stringent and reducing these emissions by improving gas cleaning systems is a significant cost to the sinter plants. This paper describes an investigation into the emission of particulate matter from an iron ore sinter bed during the sintering of a Japanese Steel Mill (JSM) style ore blend in a 300 mm diameter pot grate test facility. Several techniques were trialled to determine a reliable method to sample the quantity of dust emitted and determine the mechanism of dust emission from the sinter bed. The nature of the dust was also examined using chemical and size analysis as well as optical and scanning electron microscopy. The paper discusses the techniques used to carry out the program as well as results on dust loading measured during sintering and the nature of the dust captured.

Jan 1, 2002

By Sorentino C

Mineral valuation may appear to be a special field of financial valuation when in fact it is a subset of general investment decision theory. The only significant difference in mineral valuation is that in the case of valuing an on-going mineral asset, ie a mine, often there is no initial capital outlay involved. One is required to determine what the mineral asset as it stands is worth. But this is the same problem as determining the maximum one could pay today and not incur a loss over the life of the asset. In other words one needs to determine the Net Present Value (NPV) of the asset. The two most widely used discounted cash flow methods, NPV and Internal Rate of Return (IRR) came of age with the rapid adoption of the personal computer and spreadsheet programs. The two methods are directly related as the IRR is a special case of NPV. NPV measures the absolute increase in real wealth that can be expected from a certain investment, which makes it particularly suitable for mineral asset valuation, but ignores the efficiency of the investment. In contrast, IRR gives the expected efficiency of the investment but ignores the increase in wealth aspect. IRR has two serious theoretical weaknesses; multiple IRR's and a very rigid assumption about the rate of return of reinvested proceeds, plus if no initial equity expenditure is involved there is no IRR. The choice of the ""hurdle"" rate can also be a problem and in certain circumstances one can obtain different rankings of mutually exclusive projects using IRR and NPV. Although NPV and IRR supposedly measure financial risk, in fact they only address a very narrow area of risk, namely the time value of money given the real discount rate. They side step the issue of what the real discount rate should be and varying degrees of risk. The classical way to establish the real discount rate is to use the weighted average cost of capital.

Jan 1, 1994

By Heape JM

Production from the Cattle Grid orebody commenced in August, 1974. This followed a recent discovery arising from an extensive exploration programme involving stratigraphic drilling, geochemistry and geophysics. Located some 4 km west of the original copper occurrences at Pernatty Lagoon the discovery was found to contain 4.6 million tonnes of ore averaging 2.4% copper. The ore is a "sandstone copper" type localised near the disconformity between two Precambrian (Adelaidean) stratigraphic units, the Pandurra Formation and the Whyalla Sandstone. The mineralisation roughly follows the interface between these units and occurs in fractures, vugs and along bedding planes. The mineralogical character of the ore is somewhat complex consisting of chalcocite and bornite, with associated chalcopyrite, sphalerite, pyrite and other less common sulphides. 1. Senior Geologist, Pacminex Pty. Limited, Sydney, N.S.W. 2. Mine Geologist, for Mt. Gunson Mines, Pacminex Pty. Limited, Mt. Gunson, S.A.

Jan 1, 1975

By C A. Foss, K Blay, K Leslie, D Hillan

Magnetic field studies provide remote sensing of magnetisation distributions and a means to investigate moderately- to strongly-magnetised ore deposits that may be partially or totally buried. However, above-surface magnetic field surveys have limited capability to resolve the detail of magnetisation distributions because of the large separation between the magnetisation and the magnetic sensor. While some of this detail is available from magnetic susceptibility logging within boreholes or from magnetisation studies on recovered core, these measurements are limited to the exact trace of the boreholes. The large disconnect between ground or aeromagnetic surveys and highly-localised borehole sampling can cause problems in developing robust source models from magnetic survey data. The measurement of magnetic field in boreholes has the capacity to at least partially bridge that gap by measuring the magnetic field due to magnetisations proximal to, but not intersected by, the boreholes.CSIRO has developed the world’s first downhole magnetic tensor gradiometer. This instrument measures magnetic field gradients in all directions within a borehole. A prototype instrument has been built and tested as part of phase 1 of the Deep Exploration Technologies Cooperative Research Centre (DET CRC). The prototype performed well with magnetic pyrrhotite at the DET CRC test site in the Adelaide Hills and at Carpentaria’s Hawsons magnetite deposit south of Broken Hill. Further work is required to reduce the diameter of the probe so that it can operate in NQ holes (it is currently limited to HQ or wider) and to transform it to a continuous logging tool. The borehole tensor gradiometer can be used to investigate the continuity of magnetisation over a distance of several metres to tens of metres away from a borehole intersection and the structural dip of the magnetic body. It can be used to either replace or augment downhole magnetic susceptibility logging. This instrument is one component of an integrated CSIRO suite of new magnetic field utilities and methodologies for iron ore exploration and development.CITATION:Leslie, K, Foss, C A, Hillan, D and Blay, K, 2015. A downhole magnetic tensor gradiometer for developing robust magnetisation models from magnetic anomalies, in Proceedings Iron Ore 2015, pp 299–304 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

By D Guibal, J Vann, M Harley

Many sample value distributions are highly skewed and present variograms with high relative nugget effects and/or short-range structures. In consequence, significant deskewing of the histogram and variance reduction occurs when transforming between sample and block support, where blocks are of significantly larger volume than samples. When making estimates in the mining industry we usually wish to estimate on the basis of block support rather than sample support. The selective mining unit (SMU) refers to the minimum support upon which ore/waste allocation decisions can realistically and practically be made. The SMU is usually significantly smaller than the sampling grid dimensions, in particular at exploration/feasibility stages. In a non-linear estimate, for each large block (by convention called a æpanelÆ) we estimate the proportion of SMU-sized parcels above a cut-off grade threshold. A series of proportions above cut-off defines the SMU distribution. Use of such non-linear estimates reduces distortion of grade-tonnage curves and provides a better basis for mine planning and economic decision-making. At present, Multiple Indicator Kriging (MIK) is the most widely used technique for performing estimation of recoverable resources. MIK is not the only approach available and it has some potentially serious limitations. The MIK technique is described and a number of theoretical and practical implementation issues are examined. In particular: MIKÆs assumptions about spatial distribution of grade; the behaviour of indicator variograms; application of change of support models; order relationship problems; and modelling the tail of the distribution. Some simple tests are described which allow us to determine the suitability of different estimators for a given deposit and criteria to identify a preferred estimator are also examined. Uniform Conditioning (UC), an alternative estimator which may be used instead of MIK, is described.

Jan 1, 2000

By Benson CD

Increasing numbers of Australian gold companies are active in the United States, due to the great untapped gold potential, which is currently undervalued by traditional U.S. companies. The differences in technical, cultural and financial character between the two mining industries provide the Australian companies with a relatively unique blend of strengths (and weaknesses) that can be used to advantage in the U.S.

Jan 1, 1987

By Ricketts N. J, Smith G. D J

A hydrometallurgical process was developed for recovery of copper from copper-lead matte formed as an intermediate product at the BHAS lead smelter at Port Pirie. A plant utilizing this process was commissioned in 1984. The leach step involves oxidation of the copper-lead matte in an oxygenated acidic chloride-sulphate leachant. The results of laboratory scale testwork from which the chemistry of leaching was deduced, are presented in this paper. The rate of recovery of copper to solution from copper-lead matte depends largely_on the availability of oxygen to the sulphide surface. The optimum leach temperature is approximately 85¦C. Free acid must be supplied according to the stoichiometry of the leach reaction: Cu1.91 S + PbS + 2.91 H2SO4 + 1.455 02 = 1.91 Cu2+ + 1.91 SOj- + PbSO4(s) + 2.91 H2O + S¦ The grind size of the matte is of minor significance. Chloride concentration in leachant should be at or above a minimum of 10.0 g/l. Chloride acts to complex cuprous ions formed during leaching.

Jan 1, 1987

By Thomas W

Due to record low tin prices and an uncompetitive position in world markets, the Renison tin mine has undergone three major phases of restructuring in the last three years. This has involved substantial job losses, almost all of which have been through voluntary retrenchments. Retrenchments took place in 1988, 1990 and 1991.The last phase of restructuring was the most dramatic, as many aspects of the operation of the mine were changed. New pay structures were introduced, and the miners' contract system was scrapped. Drastic pay cuts occurred in many areas, although the opportunity was also taken to increase pay at some of the lower levels where inequities existed. Work practices were changed, as was the management structure.

Jan 1, 1992

In mineral asset valuation the use of any valuation method requires the input of competent and independent technical professionals. A resource valuation must be as transparent as possible to allow others to assess the validity of their underlying assumptions. Materiality is a dominant factor in all valuations and a valuer should set out the basis for the subjective decisions made in this regard. Any valuation methodology must comply with the requirements of the law, practice notes and guidelines issued by the various relevant authorities and professional bodies. The valuation methodology chosen to value a mineral asset depends upon the amount of data available on that asset and the reliance that can be placed upon those data. Mineral assets generally fall into one of three broad categories, depending upon their state of development, ie whether they are at the exploration, development or operating stage. Naturally there are transition phases. Hence, there are ""Grass Roots"" Exploration Areas and Advanced Exploration Prospects; Pre-Development Projects and Developing Mines; and Operating Mines. The features of each of these mineral asset status categories are described, mainly in terms of the confidence in the contained identified Resources/ Reserves. The various subjective methodologies available for the valuation of ""Grass Roots"" Exploration Areas and Advanced Exploration Prospects -are specifically reviewed. The pitfalls in adopting a ""recipe"" approach are noted. It is the author's view that the Expected Value Method (based on the probability adjustment of the output of a Discounted Cash Flow/ Net Present Value model) has little application in the valuation of exploration mineral assets, so it is only briefly addressed. The methodologies reviewed are listed below. ò Multiple of Exploration Expenditure Method (expenditure based). ò Joint Venture Terms Method (expenditure based). ò Geoscience Rating Methods (eg Kilburn - area based). ò Comparable Market Value Method (real estate based). ò Rules of Thumb (eg $/Resource or production unit; % of in situ value). Some recent Prospectuses are used to provide examples of their misinterpretation and misapplication.

Jan 1, 1994

By R N. Lamb, A N. Buckley

Experiments have been carried out to establish whether time-of-flight secondary ion mass spectrometry (ToF-SIMS) is able to differentiate monolayer and multilayer coverage of thiol collectors on sulfide minerals. The systems investigated were those for which x-ray photoelectron spectroscopy is able to provide an independent determination of the extent of coverage, and included diethyldithiophosphate (DTP) and 2-mercaptobenzothiazole (MBT) on chalcocite, DTP on Ag2+MS prepared by sulfidising metallic silver, and isobutyl xanthate (BX) and MBT on galena. For monolayer adsorption of MBT on chalcocite, peaks from MBTû but not Cu(MBT)û ions were evident. For multilayer coverage, Cu(MBT)2û ions were clearly present, notwithstanding the fact that other data had identified the principal multilayer species as Cu(MBT). For adsorbed DTP on copper and silver sulfides, DTPû and metal(DTP)Hû peaks were observed for monolayer and multilayer coverage. Although the multilayer species was expected to be predominantly metal(DTP), metal(DTP)2û ions were evident for multilayer (but not monolayer) coverage. For the PbS/BX system, intact Pb(BX)2 or Pb(OH)BX ions were not detected for multilayer coverage, although Pb-containing ions heavier than PbBX were. Indeed, for all the systems studied, ToF-SIMS was able to differentiate monolayer from multilayer coverage. In general, however, the SIMS evidence alone might not be sufficiently definitive to effect the differentiation. In the case of collector adsorption on copper and silver sulfides, if the multilayer species detected had been the metal monothiolate only, and had not involved the formation of some metal dithiolate, then ToF-SIMS might not have been able to provide an unequivocal differentiation of the two coverage conditions.

Jan 1, 2005

By A R. Sale

This paper highlights two aspects of the mineral sands industry in Australia: the development of the industry from approximately 1870 through to 1980, and the author’s experience in the industry from 1966 to date.The first real heavy mineral (HM) mining in Australia started in 1870 with the mining of heavy mineral slicks on the beaches along the east coast of Australia. The real potential of Australian heavy minerals was however only realised in the 1920s with the first production of a heavy mineral concentrate that was shipped to Canada for processing. Post WW 11 and the Korean War, Australia was the largest producer of mineral sands products in the world as well as a significant developer of associated separation equipment and technology. The number of producing companies in the east coast peaked at 33 in 1957, was reduced to ten by 1965, and subsequently further reduced to five in 1980 as a result of potential mining areas being declared National Parks or Conservation Reserves. Today there is one company, Unimin Australia Pty Ltd (formally Consolidated Rutile Ltd) operating on the east coast. In contrast there were three companies on the west coast in 1965, four companies in 1980, and four companies today (albeit not the same companies).There have been considerable ups and downs for the industry in Australia, however world wide it was renowned in the past as being an industry that attracted numerous interesting and innovative characters that played a major role in developing it into the vibrant industry that it is today. This, given the current climate, is predicted to continue into the future.The author has been continuously involved in the industry for over 45 years from 1966, initially as an electrician at Consolidated Rutile Ltd culminating in the role of General Manager/President of Iluka Resources Limited USA, prior to his retirement in 2009. His exposure has been world wide and has covered all aspects of the industry but in the main focused on project development and operational areas. During this time there have been significant technological advances, yet to some extent the basic principles have not changed at all. Some of the most noteworthy advances include the development of the Wright Spiral in 1977, the development of the Reading High Intensity Wet Magnet (WHIMS), the rare earth magnets, the CRL floating thickener and the improvement of analytical techniques. From a safety, health and environmental perspective there has been significant advances that the industry has much to be proud of. These include wetland restoration both in Australia and in the US, the restoration of farmland in Virginia and Capel, and the re-establishment of native species, for example at Eneabba and Richards Bay to name but a few.

Oct 5, 2011

The Division of Minerals and Geochemistry in collaboration with three mineral exploration companies, Mawson Pacific Ltd, Ramsgate Resources Ltd and Tectonic Systems Pty Ltd commenced a two year research project to investigate the application of remote sensing techniques to exploration for mineral deposits in access of the Yilgarn Block in Western Australia. The project utilizes satellite data such as day and night imagery from the NOAA-AVHRR (National Oceanic and Atmospheric Administration - Advanced Very High Resolution Radiometer) satellite. The recent research with the imagery in the Kalgoorlie, Southern Cross and Mt Magnet regions has highlighted the advantages of the mid infra-red and the two thermal response channels of NOAA-AVHRR for geological investigations. These three channels have the spectral resolution to distinguish stratigraphic units and younger intrusive bodies, and to delineate fracture zones and shear zones associated with Proterozoic dykes. But most important is the capacity to distinguish thermal signatures from geological structure, near-surface outcrop and palaeochannels which have been covered by unconsolidated sediments. The research project applies remote sensing methods including enhanced satellite imagery optimised to the Western Australian environment. It encompasses data from both space and airborne monitoring platforms that have obsreved a significant spectral response for the classification of alteration zone lithologies. It includes the collection of multiseasonal data from areas of interest which is essential both for the understanding of thermal characteristics of important lithologies and for the extrapolation from field work investigation to potential exploration areas. No comprehensive investigation of this type has been carried out within the Yilgarn goldfields.

Jan 1, 1987

By G K. Robinson, M D. Sinnott

Three-dimensional granular flow models have been run to simulate three types of sample cutters: a cross-stream cutter, a vezin, and a cross-belt cutter. This type of modelling involves solving the equations of motion for large numbers of individual particles as they travel along a conveyor belt and interact with a sample cutter. It allows flows of bulk materials to be visualised and understood. Here we have used spherical particles. These results illustrate some advantages that modelling has compared to physical bias testing: By taking reference samples which are very close to the actual samples, the estimation of bias can be achieve quite precisely with very few runs. (Many Standards about bias testing recommend a minimum of 20 runs, but we have found that five runs generally provide adequate precision.) Potential bias can be divided into two components: the particles which are missed but should have been sampled and the particles which are extra but which should not have been sampled. This more detailed information can provide useful insight. Exactly the same material can be sampled using different sample cutters, thereby avoiding a source of variation that complicates physical testing. Much more detailed visualisation is possible, allowing better understanding of the bulk material flow in various circumstances.

Jan 1, 2005

Electronic Detonators have made significant strides over the last few years, both in quality of product and performance in different blast applications. The precision and flexibility of the SMARTDET units provides the mines with a powerful means of controlling blast results, giving both cost and productivity improvements. The SMARTDET Electronic Detonator System, robust and easy to use, has been successfully deployed over the last 18 months in improving mine productivity and creating safer working conditions in both quarrying and long-hole stoping. The key to the improvements has been the precision and flexibility of the electronic timing, and the ability of the mine personnel to grasp the concept quickly and use it effectively.

Jan 1, 1999

By D-J Min

Strategies and achievements in the Asian steel industry to construct industrial ecological chain are reviewed largely in the case of Japan, Korea and China. Emphasis is placed on the development of resource circulatory system for the minimisation of various wastes and emissions of green house gases (GHG), toxic gases and polluting particulates. The minimisation includes:Rationalisation of iron and steelmaking processes; Implementation of available relevant measures/technologies; Life cycle assessment in designing steel from semis to assembled products; Reduction, reuse and recycling of materials and energies; and Utilisation of core competence technologies to process domestic and industrial wastes. In view of global nature of the above wastes- and emission-issues, inter-industrial linkage and international cooperation across the borders in the Asian countries have become more important. Inter-industrial linkage definitely serves to cut back the wastes and emissions. Examples of such linkage and factors influencing the sustainability of the linkage are described with expectation for further development of the linkage. Importance of international cooperation cannot be overstressed under the circumstances where steel production in China exceeded 220 Mt and world production exceeded 945 Mt in 2003 and is still increasing. Practical measures are discussed to enhance the linkage and cooperation for effectively promoting the reduction, reuse and recycling, including implications for the nonferrous industry.

Jan 1, 2004

Since the days of Adam Smith and Milton Friedman the discussion of corporate citizenship and sustainability has been flooded with multiple contradictions, with proponents of sustainability saying that it is a crucial cog in the business strategy, while those against, maintain that æthe business of business is businessÆ and therefore sustainability issues are just add-ons. Sustainability arises from a deeply held vision by corporate leaders that businesses can and should play a role beyond just making money. Businesses should embrace the understanding that everything that a company does has an impact both internally and externally (communities, employees and customers), and the natural environment. This paper highlights the approach that led to a view that there is a contradiction between profitability, sustainability and community development, and we provide a further argument to the contrary. This argument is based on a comprehensive literature review of over three decades by various scholars linking corporate social performance and corporate financial performance. Driefontein Gold MineÆs approach is that of linking the community development, natural environmental and employee well-being initiatives and projects to the mineÆs business strategy. The paper further highlights the coordination and implementation mechanism of sustainability at the mine where the accountability lies with the head of the mine operations. A two pronged approach is employed where there is an internal dialogue on sustainability between the various departments coordinated by the sustainable development department and an external tri-sector partnership with local government, interested and affected parties and the mine. These approaches are closely linked to the contributions towards the mineÆs financial bottom line.

Jan 1, 2009