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By A. Broussaud, J. D. McKay

Benefits analysis of adaptive Expert control systems operating at plants in Africa and the United States are presented. Proper statistical tools and techniques are discussed. Technical and practical pitfalls of strategy comparison are also presented and illustrated with from published data. Advantages and disadvantages of a “Pay for Performance” approach to a project are reviewed.

Jan 1, 2001

By B Chi, A Mahanta, R A. M Maddever, O Dominguez

BHP Billiton, in collaboration with Sodern and CSIRO, has developed a downhole logging tool for measuring geochemistry in situ. The FastGradeTM 100 (alternatively, FG100), exploits pulsed fast and thermal neutron analysis (PFTNA) to analyse the rock. This method is based on the detection and measurement of characteristic gamma rays emitted from isotopes in the material that become briefly radioactive when they are bombarded with neutrons. The tool outputs raw spectra arising from three types of neutron interaction, namely, inelastic scattering, neutron capture and neutron activation, which occur in successive time-windows (Smith et al, 2015). The spectra contain peaks at specific energies that are characteristic of the different elements interacting with the neutrons, the gamma count of which is related to elemental concentration. BHP Billiton uses in-house data processing software to convert the measured spectra to elemental concentrations.Much work has been done to understand the tool response under a wide variety of environmental and operating conditions, including logging speed, borehole rugosity, the presence of cavities, water etc. Effort has also been directed at understanding and quantifying the current sources of error in our conventional assays due to sample collection, preparation, and laboratory instrumentation in order to use this information as a baseline to compare against the FastGradeTM 100 results.To date, the FastGradeTM 100 primary use has been as a verification tool (JORC, 2012). However, beyond this, it has considerable potential to improve productivity in both exploration and production environments due to its ability to provide geologists with assay results soon after a hole is drilled.This paper presents initial test work and tool performance, including accuracy and precision under various conditions. Results are illustrated by comparing tool measurements to assays from laboratory samples collected from both reverse circulation and diamond-drilled holes.CITATION:Chi, B, Maddever, R A M, Mahanta, A and Dominguez, O, 2017. Near real-time assay with downhole assay tool (FastGrade™ 100), in Proceedings Eighth World Conference on Sampling and Blending , pp 137–144 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2017

By F. W. Bowdish

A theoretical and experimental laboratory study has shown that the rate of breaking of oversized particles in a ball mill is proportional to 1) the concentration of such particles, and 2) the area of the balls, provided that the balls are larger than a certain size relative to the particles. If all undersized material were removed as formed, the rate of breaking would be almost independent of the quantity in the mill. Rate equations are given which are similar to those for zero, first, and second order reactions. Deviations of small balls from the equation for a second order phenomena are quantified by a factor called "nipping efficiency." Some data are correlated by a dimension-less equation, which is used to estimate nipping efficiencies from data not in the correlation. The investigation described here was undertaken after a literature survey revealed that little was known concerning the mechanism of breaking of particles within a ball mill and the effect of this mechanism upon grinding rates. One paper, by Roberts1 , offered a theory concerning the mechanism of breaking, and a rate equation for the breaking of particles larger than some size to particles smaller than that size. That paper provided the starting point for a theoretical and experimental investigation of grinding under carefully controlled conditions. THEORETICAL CONSIDERATIONS In his paper on the probability theory of ball mill grinding, Roberts theorized that "... a given expenditure of power leads either to a certain number of point to point blows per bp-hr or to a certain distance of line contact per hp-hr ..." He assumed that the balls touch each other during each blow or during moving contact. Then he said that a volume of pulp, dependent upon the size being considered, would be covered per minute within which all oversized particles would be crushed to particles smaller than that size. Naturally, the higher the concentration of oversized particles in the pulp, the higher the rate of which they would be broken. From this reasoning Roberts obtained the differential equation -dC/dt = k hp/ton C (1) where k is a constant for any size of particle, density of particle, and moisture content of pulp. C is the percentage of oversize in the material to be ground, t is the time, and hp/ton is the power input per ton of material in the mill. He then integrated the equation to log Co/Ct = k/2.3 hp/ton t , where Co and Ct are the percentage of oversize at time zero and t respectively. By always using the same quantity of material in a mill and assuming that it required constant power to run the mill, he was able to combine the horsepower per ton factor with the other constants to give an equation for a first order rate.

Jan 1, 1961

By Michel R. Julien, Michel Lemieux, Jean Cayouette, Daniel Talbot

"The Louvicourt Mine located near Val d’Or, Quebec has been in operation since 1994. It produces copper and zinc concentrates. The tailings generated from the ore processing operations have a strong net acid generating potential. Louvicourt Mine, a grass root project, was designed for closure with the best available technology at the time of design. In order to inhibit short and long time acid potential generation, sub-aqueous disposal was selected at the design stage. Given the fact that disposal in a natural lake was ruled out up front for obvious reasons related to loss of natural habitat and risks of permitting delays, a man made facility built with dams was planned. This mine includes therefore the first fully man-made sub-aqueous tailings disposal facility built in Canada. The requirement of using sub-aqueous disposal had serious implications on the placement of tailings. This tailings facility located about 9 km from the mine site has been selected based on the available natural confinement, the favorable foundation and hydrogeological conditions. This paper describes the site and the design criteria that were used. A presentation is also made on the placement technique to maximize storage and its impact on the operation of the basin. The performance of the basin, the dams and the decant structures is reviewed.Résumé : La mine Louvicourt, située près de Val d’Or, Québec est opérationnelle depuis 1994. Elle produit des concentrés de cuivre et de zinc. Les résidus générés par les opérations de traitement du minerai possèdent un fort potentiel net de génération d’acide. Le parc à résidus de la mine Louvicourt, implanté dans un milieu naturel intact, fut doté dès sa conception initiale de la meilleure technologie de fermeture disponible à l’époque, soit la déposition sous couverture aqueuse et ce, dans le but de bloquer le potentiel de génération d’acide à court et à long terme des résidus. Etant donné que la déposition dans un lac naturel fut mise de côté dès le départ pour des raisons évidentes reliées à la perte d’habitats naturels et au risque d’introduire des délais dans l’émission des permis, un étang artificiel délimité par des digues a été conçu. Cette mine fut donc la première au Canada à être dotée d’une installation anthropique de disposition des résidus sous une pleine couverture aqueuse. L’exigence d’une déposition sous couverture aqueuse a eu des implications sur le mode de mise en place des résidus. L’emplacement de l’installation de gestion des résidus a été choisi en un lieu situé à environ 9 km du concentrateur sur la base du confinement naturel disponible et des conditions hydrogéologiques et géotechniques favorables. Cet article décrit le site et les critères de conception utilisés. Une présentation est faite sur la technique de mise en place utilisée pour maximiser l’entreposage et son impact sur l’opération du bassin. La performance du bassin, des digues et des structures de décantation est également revue."

Jan 1, 2004

By S J. Loach

Geological reconciliation is an indispensable part of BHP Billiton’s Western Australian Iron Ore (WAIO) operations. Since 2009 our reconciliations have been calculated in a single, centralised sequel-server database. This system draws data from across our operations and calculates a hierarchical sequence of reconciliation factors that span the company from the smallest grade control (GC) block to the whole of WAIO. It then presents the results using sophisticated graphical reporting tools.The initial motive for developing WAIO’s reconciliation system was to meet corporate compliance and public reporting requirements. The ability to validate our resource and reserve models by comparing their estimates of tonnes and grade with production figures remains the system’s principal function; however, as the system has matured, we have significantly developed its ability to support the improvement of various technical activities within the business. For example, the system can now calculate and report reconciliation factors for different resource classifications, short-term planning models and geometallurgical estimates.More recently, great emphasis has fallen on the system’s ability to detect and warn of possible geological issues that may pose a risk to either production schedules or product quality. We envisage a future where automated analysis of our large historical data set will enable high-risk conditions within future mine plans to be detected and highlighted.In all of these ways geological reconciliation plays an important role in contributing to this company’s financial and operational resilience.CITATION:Loach, S J, 2017. The development and future of BHP Billiton’s Western Australian iron ore geological reconciliation system, in Proceedings Iron Ore 2017, pp 415–422 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 24, 2017

The need to hoist increasing loads from great depths is leading to the more general adoption of winders of the Koepe and Blair types. The trend has introduced a number of new problems in winding ropes, more particularly in the Koepe system where regular destructive tests during the life of a rope are not possible. Consequently, the importance of introducing non-destructive tests is much greater, especially so in the case of Koepe ropes used for deep winding where there are three major destructive fatiguing influences. These are rotational effects when a vertical rope is changed end-for- end each trip, the much greater range of stress to which the rope is subjected each trip as compared with drum winding, and the destructive effect of a high coefficient of friction between wheel and rope. A plea for a lower coefficient in the interest of better rope and tread life, substantiated by analysis, is made for Koepe winders operating at depth.Co-ordination of rope testing with general hoisting problems is stressed and the active participation of the Wire Rope Committee of the Australian Mineral Industries Research Association Ltd. in the promotion ofthe project is noted.The general introduction of a rope testing programme in Australia, personnel requirements and some local basic research in the subject to cope with future demands are considered.

Jan 1, 1967

Metana Minerals commenced life in 1970 and graduated to a mining company in 1981 with the opening of a small alluvial tin-tantalite mine at Wodgina (W.A.) The present board of directors assumed control of the company in 1978 and established the exploration and development philosophies that have guided the company's expansion to its present status as an emerging diversified miner. An ability and willingness to raise equity capital when required has been a feature of the company. Company activities include exploration for gold, diamonds, heavy mineral sands, polymetallic (base and precious metals) deposits, strategic minerals, rare earths, oil and gas in a geographical distribution covering the entire Australian mainland Metana owns and/or operates four gold mines (Reedy, Mt Magnet, Youanmi and Howley) and at the time of writing is developing a fifth gold mine - its first underground mine - at Rothsay. In contrast to many similar or larger sized companies, Metana undertakes most activities itself rather than through the use of consultants or contractors. In-house services include: analytical and metallurgical laboratories, plant engineering design and construction, drilling and mining (earthmoving) Metana Minerals has established an enviable reputation for technical excellence and this expertise has placed the company in a sound position to continue its growth pattern into the future. This growth will be achieved through a combination of low cost and successful exploration and acquisition of suitable mines either directly or through corporate activity.

Jan 1, 1989

By Stephanie Price

Engineering Associations ?Regulatory authority ?License individuals and firms ?Discipline licensed members ?Enforce against improper acts ?Programs for EIT?s, competence, etc

Oct 1, 2010

By Y. Zhoa

The surface morphology of materials is of fundamental importance to many surface related applications, such as wetting, friction, reflection, drag, and adhesion. Various approaches for micro/nano patterning atop polymer surfaces have been proposed in recent years. However, a cost effective technique is still highly in demand. In this paper, we demonstrate a novel but rather simple and generic approach for surface micro/nano patterning using shape memory polymers (SMPs). Different types of novel patterns are realized and their 3-D surface features are quantitatively analyzed by a PLµ Confocal imaging profiler.

Jan 1, 2010

By O. C. Blade

[In its general study of crude petroleum, tic Bureau of Mines has published several reports that include analyses of samples of crude petroleum from Oklahoma fields3/. This report discusses briefly the properties of crude oil samples collects in come of the producing fields in the State ACKNOWLEDGMENTS This investigation was conducted by the Bureau of Mines in cooperation with the State of Oklahoma. No study was made under the general supervision of R. A Cattell, chief engineer, petroleum and Natural-Gas Division, Bureau of Mines Washington, D. C., and N. A. C. Smith, supervising engineer, Experiment Station, Bureau of Mines, Bartlesville, Okla., and under the direct supervision of Ludwig Schmidt senior petroleum engineer Bureau of Mines, Bartlesville, Okla.]

Jan 1, 1939

By A. S. Argon, G. East

From their study of the anisotropy of grain boundary mobility in aluminum, the authors conclude that tilt boundaries have a higher mobility than twist boundaries because the atomic misfit at the pure-twist boundary is relatively small compared to the misfit at a tilt boundary for a given amount of misorientation. If this is true, then one would expect a twist boundary to have a lower grain boundary energy than the corresponding tilt boundary. Fig. 6, taken from the work of Gjostein and Rhines,10 shows that this is indeed the case for [001]-cu tilt and twist boundaries in the high-angle region, thus lending support to the authors' conclusion.

Jan 1, 1968

By T. Tamura

It is known that the CaO-FetO-P2O5slag system has a wide liquid miscibility gap at steelmaking temperatures and this two-liquid slag phase has many advantages such as high activities of both FetO and CaO and high amount of P2O5. The phosphorus distribution ratio between the two-liquid slag and molten steel was confirmed to be higher than that between CaOsat.-FetO-P2O5slag and molten steel. The two-liquid slag may be useful for dephosphorization of molten steel and reduction of slag volume. Furthermore, the phase equilibrium of two-liquid CaO-FetO-P2O5slagsaturated with MgO was measured to determine the applicability of the two-liquid slag to dephosphorization in steelmaking process. Keywords: slag, refractories, solid solution, two-liquid phase, dephosphorization, steelmaking, phase equilibrium.

Jan 1, 2004

By R. T. Jones

Slags have been produced as by-products from pyrometallurgical processes for thousands of years, and have generally been regarded as waste. Many of these slags are no longer seen as residues merely to be discarded, but as potential economic sources of metals, or as useful by-products in their own right. Slag cleaning can enhance the recovery of valuable metals in existing pyrometallurgical processes, or can produce economic value from recycling old slag dumps. For example, a process has been developed and implemented industrially for recovering cobalt from copper smelting slag in a DC arc furnace. The relatively non-leachable behaviour of glassy slags allows them to be used as a very safe means of disposal of metallurgical waste streams, including many that are classified as hazardous. The high temperatures, reducing conditions, and good mixing that can be achieved in a DC arc furnace enable the effective functioning of this environmentally beneficial means of disposal. Lead blast furnace slag can be rendered safe for disposal by treating it using the Enviroplas process, which strips most of the hazardous lead from the slag (and traps the rest in an insoluble glassy slag) and recovers economic quantities of zinc by absorbing (in a lead splash condenser)the zinc vapour that is fumed off in the furnace. Another example can be seen in the recovery of a chromium- and nickel-containing alloy from stainless steel plant dust, while producing a disposable residual slag. The examples presented here illustrate that it is possible to develop processes that are both economic and environmentally beneficial. Keywords: DC arc furnace, plasma, slag cleaning, cobalt recovery, zinc fuming, Enviroplas, jigging, re-melting fines, environmental, economic

Jan 1, 2004

By Tomohide Takeyama, Yuki Yoshida, Masaki Kitazume

"Abstract A series of centrifuge model tests was conducted to investigate the failure pattern and stability of cement treated clay ground having an unsupported vertical slope. The model ground was subjected to monotonically increasing centrifugal acceleration until it failed due to the enhanced self-weight. The test results were compared with the numerical analyses in which the treated soil was simulated by the Smoothed Particle Hydrodynamics (SPH) method. In the simulation, the Dracker- Prager model is employed as the constitutive model. In order to simulate the brittle behavior of the cement treated soil, it is assumed that the unconfined strength is gradually reduced to a certain value which corresponds to the residual strength due to accumulated plastic strain. It was found that the simulation by using SPH method can express the brittle failure observed in the centrifuge model tests.IntroductionBecause of economical and environmental concerns it has become more difficult in recent years to obtain enough soil to construct reclaimed land for airports, electric power plants, manufacture plants and so on. On the other hand, it has become difficult to find and construct disposal sites for waste subsoil or dredged soil. These circumstances have encourage geotechnical engineers at present to use these poor quality materials as filling materials more than they were used one or two decades ago. Several soil admixture methods have been developed to improve their properties and to manufacture high quality fill materials.The deformation and strength characteristics of cement treated soils have been investigated in Japan, which have revealed that the treated soil is characterized by a brittle behavior with quite high compressive strength and quite small strain at failure, and the treated soil with relatively high strength shows tensile failure instead of shear failure. Regarding to evaluate the stability of structures adjacent to or buried in the treated ground, Kitazume (1998) and Kitazume et al. (2003) investigated the earth pressure of cement treated ground by the centrifuge model tests. And they emphasized that the failure pattern of the cement treated ground was much different from that of ordinary ground. After the Hyogoken- Nambu earthquake in 1995, many design codes for the seismic stability were revised in Japan, so that seismic stability must be evaluated more precisely. The dynamic earth pressure of ordinary grounds is usually calculated by a pseudo-static limit equilibrium method based on the Mononobe- Okabe’s method (Okabe, 1924; Mononobe and Matsuo, 1929). This calculation method is also applied to the cement treated ground, although its applicability has not been thoroughly clarified."

Jan 1, 2014

By H. K. VAN POOLLEEN, W. Hurst, H. C. Bixel

In an earlier publication* I showed the development of the instantaneous point source solution for a well producing at a constant rate at the center of a system of two radial, adjoining sands of different permeabilities. I also showed how a wellbore radius could be incorporated if this were the development required. For the purpose of that paper and the point I wished to make, this solution served. It yielded a simplifying solution of sands in series identified by Eqs. VI-26 and VI-27. (These equations are reproduced in part by Bixel and van Poollen as their Eq. 3, Page 302.) I am well aware that the simplified solutions are approximations. The facts that these Ei-functions satisfy the diffusivity equation and meet the boundary conditions both at the well and at the interface between sands, and that the earliest time considerations yield zero pressure drop, are evidence that the solutions are good approximations. This was the purpose for these formulas, which I interpret that where the permeabilities are of finite order of magnitudes in the respective media, the relations give satisfactory answers. However, from the authors' point of view there are reservations, which leads me to consider their entire generalization as illustrated in their Figs. 1 through 14. What I understand from their storage capacity, relationship Fs, which is the ratio of the product of porosity and compressibility of Sand II to Sand I, that is employed here by the authors as a correlative means of identifying one figure from another, there is nothing in the exact mathematics that supports such a term as a means of correlation. This is taken out of context, unsustained that this applies. Here the mathematics are known, where the true correlation is the diffusivity term of one sand to another. This entails permeability that refers back again to the term M in their paper for the transmis-sibility of fluid from one sand to the other that should have also been a part of this storage capacity. In Figs. 8 through 14, which purported to show the simplified equation following this correlation, there are apparent discontinuities for M equal to or less than 0.1000 that differ from the trends for greater values of M. In this connection there is no reference radius given for this cumulative pressure drop in the paper that would permit me to make these calculations. However, what is clear for M equal to 0.1000 or less we are treated to almost a closed barrier at the interface; a condition entered by the writers without qualification. This across-the-board treatment of these simplified formulas, whatever the motive of the authors, enters into a range of permeabilities that even I as the contributor would have reservations that such could apply. Under comparable conditions I would be looking at a closed reservoir or some facsimile for such. The extent to which the approximation or the exact equations pertain is not evident in the generality offered by Bixel and van Poollen in their paper. Only when they or other writers show the comparison of the pressure distributions within the formations can one be able to judge the rational limits to subscribe to the simplified formulas.

Jan 1, 1969

By Johnny Lyons-Baral, John Kemeny, Don Kraemer

Ground vibrations from blasting can result in the degradation and failure of rock and soil exposures, as well as damaging neighboring houses and buildings. At the same time, vibration provides an opportunity to regularly monitor the rock and soil exposures. If a geophone or accelerometer is attached to a rock block or wedge on a mine slope, for example, then blast vibrations will regularly “sound” the rock block and the resulting vibrations can be used to assess the stability of the rock mass in the neighborhood of the accelerometer, as well as monitoring the properties of the blast. This paper describes the development of a wireless sensor network based on inexpensive MEMS accelerometers for blast monitoring and rock and soil structural health monitoring. The wireless sensors are placed at various locations in and around an open pit mine or quarry, and transmit data to a central source after ground vibration events occur. As described in the paper, a variety of wireless and non-wireless accelerometers were tested in actual field conditions. This includes the monitoring of over 30 blasts at an open pit mine in Arizona with as many as nine simultaneous accelerometers. Matlab was used to process all the data and develop innovative methods to view and interpret the data. This includes the use of the wavelet transform to determine resonance frequencies, and the use of both ground resonance frequencies and scaled-distance peak particle velocity (ppv) relationships to assess slope stability. As part of this research, a three-dimensional point cloud environment for viewing and analyzing the vibration data from the sensors has also been developed.

Jan 1, 2014

Kinetic Behaviour of Solid/Solid Separation of Ultrafine Particles in Aqueous Suspension

Sep 13, 2010

By Kevin Connor

There was little change during 1988 in the production of minerals in Burundi. The Government of Burundi, which banned all commercial mining operations in the country in 1979, lifted the ban on mining of alluvial gold deposits and started a program of small-scale artisan gold mining in October. Along with the legal mining of gold, licensed gold trading counters were established. Other mineral commodities produced were kaolin clay, lime, and peat. In compliance with the Government ban, the only mineral wealth exploited for commercial sale and export was alluvial gold. Through financial assistance from the International Bank for Reconstruction and Development (World Bank) and the United Nations Development Program (UNDP), a study to inventory the country's mineral resources continued throughout the year. As part of this study, during the year, a West German company undertook a drilling program to further outline the nickel reserves of the Musongati area in central Burundi. Results of the work as of yearend were disappointing, with only 12 million tons of ore identified with better than 2% nickel content proven. Investigations also continued during the year regarding the centrally located deposits of vanadium-bearing titaniferous magnetite. A Norwegian company contracted to prepare a prefeasibility study for developing the deposit. The British Sulphur Corp. Ltd. was nearing completion of its $1.2 million2 study of the phosphatic limestone deposit at Matongo-Bandaga at yearend. Ore reserves of about 17 million tons grading 11% phosphorus pentoxide (P2O3) had been identified. The phosphate zone overlies a carbonatite rock, which could provide the basis for a cement industry. Additional drilling was planned for 1984. Exploration for gold was underway in 19S3 in northern Burundi through UNDP funding. Several primary deposits of shallow semimassive sulfides with gold values ranging from traces to 11 grams per ton had been discovered. With assistance from the Federal Republic of Germany, bastnasite reserves of 5,400 tons, with associated high europium oxide and cerium content, were verified, and the prospects for finding

Jan 1, 1985

By Christopher Mark

Knowledge of in situ stresses is fundamental to many studies in earth sciences, and coal mine ground control is no exception. During the past 20 years, it has become clear that horizontal stress is a critical factor affecting roof stability in underground coal mines. The theory of plate tectonics and the World Stress Map (WSM) project has been extremely helpful in explaining the sources and the orientations of the horizontal stresses observed underground. Recently, WSM geophysicists studying deep-seated stresses have developed a model of how stress magnitudes vary with depth in the crust. They have devoted relatively little attention to near-surface stresses, however. This paper explores the relationships between deep-seated and shallow in situ stresses in several of the world?s coalfields, using a data base of more than 350 stress measurements from underground coal mines. The analysis indicates that distinct regional trends exist, corresponding roughly to the regional stress fields identified by the WSM. The paper presents equations for estimating stress magnitudes that were developed by treating depth and elastic modulus as independent variables in regression analysis. The magnitude of the horizontal stress increases with depth, at rates that range from 0.8 to 2.0 times the vertical stress, just as the WSM ?critically stressed crust? model predicts. Overall, it seems that the stress regimes encountered in underground coal mines are closely linked to those that exist deep in the earth?s crust.

Jan 1, 2008

By C. Hutton

"SynopsisThe last commodities supercycle (2003 to 2011) was characterized by a belief in volume at any cost, where absolute output was deliberately prioritized over productivity considerations. This practice fuelled overoptimistic forecasting and planning, which in turn contributed to the economic crisis that followed. The sudden collapse of commodity prices has resulted in mining companies scrambling to find the right balance between optimizing current operations and preserving sufficient flexibility to grasp future opportunities. The runaway costs of building and operating mines have almost squeezed out profit margins, while lower ore grades are inflating production costs. Mining companies therefore need to look at the business with fresh eyes, and develop strategies to attract equity capital as traditional approaches are simply not working anymore. This is especially so in the context of a dwindling investor base that continues to demand greater returns, despite a significantly lower appetite for risk. This paper revisits the micro-economic concepts and demonstrates how pressure from shareholders to prioritize output contributed to spiralling costs and value destruction. Practical techniques are described to model cost curves to optimize a Mineral Resource endowment and address the need to rightbalance a business and preserve agility.IntroductionHenry Lazenby (2014) for the Mining Weekly writes, ‘Bruised and battered, the global mining industry today is undergoing a sea change. Practices and policies that might have worked wonders in the past are not as relevant today, and new approaches to running profitable mining operations need to be found.’ One significant practice the mining industry had during the last commodities supercycle (2003 to 2011) was chasing volume at any cost; absolute output was deliberately prioritized over productivity considerations (Goldsmith, 2013). Lazenby contends that in the face of falling and volatile commodity prices, many mining majors ‘across all commodity groups are currently grappling with sagging profits and low company valuations. This is often regarded as the result of the were in pursuit of growing their output at all costs in a high commodity price environment.’ Lee Hodgkinson, KPMG’s Canadian mining industry leader and quoted by Lazenby, says that ‘mining companies are now trying to find the right balance between optimizing current operations and preserving their agility to grasp future opportunities. The runaway costs of building and operating mines have almost squeezed out profit margins [whilst] lower grades of ore are inflating production costs. Mining companies need to look at the business with fresh eyes, and develop strategies to attract equity capital as it seems clear that some of the traditional approaches to the mining business are simply not working anymore."

Jan 1, 2015