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This paper examines some of the fundamental economics of mining - in particular, for optimisation studies, for production rate determination and for reserve estimates.It includes introductory discussion on the principles as to how economics drives mining investment decision-making, applicable to the optimising of pit shapes and production, or truck fleets, or any other part of the mine.The main part of this paper looks at the decision to start-up a mine and why the 'optimum' production rate to start-up a mine is not the point of lowest cost according to traditional discounted cash flow (DCF) analysis. The optimum production rate is usually substantially less than this rate. The paper recognises the difference between typical mining investments and investments in other industries that do not have the unique characteristics of mining and the problem of uncertainty resolution. It examines the marginal revenue effects, the marginal cost of capital and the value of a real option to expand pending uncertainty resolution as determinants of optimum initial production rates.The final part of this paper looks at applying these principles to renewable and non-renewable resources. It examines mine life and reserve estimates from an economic perspective.

Dec 6, 2010

This paper focuses on two sites in the Mount Pleasant - McCormacks Bay area of Christchurch where residential development has taken place either within or immediately adjacent to former quarries for the extraction of volcanic rock. At the Quarry Road site less overburden was dumped on adjoining land around the turn of the century, and c.1980 dwelling and related construction took place on approximately 6 m of relatively loose fill material without the recognition of its presence or geotechnical characteristics. Subsequent settlements led to abandonment of a swimming pool and the underpinning of the 3-storey architect-designed house, whilst litigation brought by the owner resulted in findings of negligence against both the architects and engineers. At the Tramways Quarry site the Council approved subdivision of the former quarry area in the early 1980s without requiring any geotechnical evaluation of batter stability or related issues. During development it became apparent that significant blast damage had occurred to rock faces, necessitating a variety of remedial measures, and that waste materials had been dumped down faces without regard to long-term stability. Both case studies confirm the requirement for careful documentation of former quarry sites by territorial local authorities as part of their administrative function, and for detailed engineering geology and geotechnical evaluation of such areas prior to any residential use of the land.

Jan 1, 1998

By D Barclay, S Mercer, S Wright

Mine water management is often an afterthought in mine planning processes and can introduce significant risks to projects when studied as a stand alone component at a later stage in the mine design. Incorporation of a mine dewatering and pore pressure dissipation strategy in the early stages of mine planning is imperative in order to minimise constraints on the production schedule, to match designed pit slopes and maximise project value for an open cut mine option such as Olympic Dam. A risk-based mine planning approach was adopted during the project selection phase study whereby water management was introduced into mine planning, scheduling and the development of an operational strategy. Hydrological and hydrogeological studies and outputs were successfully integrated into the various iterations of the mine planning cycle during early selection phase to manage the potential water management risks associated with pit slope depressurisation and access to dry working conditions during rapid advancement of mining phases.An extensive network of vibrating wire piezometer sets and long-term depressurisation testing characterised aquifer conditions and demonstrated that hydraulic connectivity exists within the geological profile due to the presence of structures and resource drill holes which enhance vertical connectivity. This connectivity, along with underdrainage from mining activities contributes up to 100 m of depressurisation in low permeability units.A pit dewatering strategy incorporates the mine planning schedules and accounts for operational constraints as to the location and development of the dewatering wells, storages and pipelines. Numerical modelling generated a range of likely pit inflows and dewatering requirements with the average initial dewatering discharge likely to be 150 L/s and reduce quickly to 50 L/s after five years, depending on the premine schedule.Coupled hydrogeological and geotechnical assessments were also carried out as part of the mine planning cycle and indicate that successful dewatering will go a long way to reduce the pore pressures within key geotechnical units during the rapid mining phase where around 300 m of cover sequence is stripped in five years. However, the residual storage in the primary aquifer and the residual pore pressure in underlying low permeability units will need to be dissipated (in-pit horizontal holes) as the pit floor advances. Pit slope design angles are sensitive to depressurisation and dewatering and up to 70 per cent depressurisation of key geotechnical rock units are required. Whilst an accelerated program of aquifer dewatering supported by lithostatic unloading should drive rapid depressurisation in the lower permeability units, intervention is anticipated in key geotechnical units such as the Tregolana Shale and volcaniclastics. The extent of induced drainage will ultimately depend in part upon the mining rate and geotechnical stability requirements. Practical operability testing addressed the potential for operational constraints to mine depressurisation activities such as congestion and mining schedule development within the pit and identified that depressurisation drilling can be achieved even with reduced access availability. Mine operations and planning groups established design criteria and considered the likely inoperable periods following rainfall events of seven to 14 days to manage the base surge and minimise impact on production. In-pit surface water management options to minimise operational disruptions during and after significant rainfall events were estimated used a stochastic approach.

Jan 1, 2009

During the drilling campaign conducted between October, 1942; and May, 1943, to prove the extent of the scheelite deposit worked by King Island Scheelite N.L. at Grassy, King Island, Tasmania, 35 holes were drilled and 606 samples recovered and assayed for their content. Of these, 238 came from outside the limits of the orebody and were for the most part barren, although a few contained some scheelite. The present statistical analysis is made only of the 368 samples taken from diamond-drill cores of the orebody itself.Drilling Pattern and Sampling MethodsFrom the purely statistical viewpoint, it is realised that methods employed in selecting sites for diamong.-drilling, and of collecting samples from drill cores, do not give a completely unbiassed set of data for analysis. Fig. 1 is a sketch plan showing the relativepositions of the drillholes, which were inclined at an angle of depression of 50 deg. The pattern does not conform to a properly randomized and' regularly-spaced grid, the positions of the later holes being determined by the results obtained from previous holes.Statistically, the bias is, therefore, favourable. The unequal spacing of the drill holes and the lack of uniformity in direction of the lines along which the holes were drilled are unsatisfactory from the mathematical viewpoint; but it is realised that these irregularitiesare difficult to avoid in determining by the most economical methods the extent of such an orebody, and are dictated by geological rather than mathematical necessity.Sampling, also, is lacking in complete uniformity. Each sample is approximately 10ft. in length. However, owing to the fact that 100% recovery of core is rarely achieved, and actual lengths of samples taken are ,primarily governed by the length of the drill runs,and secondarily by lithological changes, there is a considerable amount of variation in the sample length.AssayingWith the exception of 28 samples from three drill holes all samples dealt with in this paper were assayed in the Melbourne University Ore-Dressing Laboratory of the Commonwealth Scientific and Industrial Research Organisation. These assays were given to the nearest 0.05% WOg as it was considered that more accurate determination was not possible. This fact has been taken into consideration in the frequency analysis below. The 28 assays determined by the Tasmanian Mines Department were given to the nearest 0.01%.

Jan 1, 1950

Some design and feasibility studies have been made into possible methods of economic recovery of sulphur from smelter gases emitted at Western Mining Corporation's Nickel smelter at KalgoorIie in Western Australia. The smelter discharges some 330 000 tonne/yr of sulphur dioxide in a stream of approximately 6 per cent by volume of S02.Three possible recovery methods have been considered:1. The manufacture of sulphuric acid using the contact process.2. The concentration of sulphur dioxide to a pure form using dimethyl aniline as an absorbing medium.3. The reduction to elemental sulphur using natural gas as the reducing agent.Design studies were carried out by final year chemical engineering undergraduate students at Royal Melbourne Institute of Technology (RMIT) in 1981 under the supervision of the author and other teaching staff of the chemical engineering department. These studies indicate that sulphuric acid manufacture is the economically preferred recovery route.Markets for sulphuric acid include several potential mineral processing applications and the established fertiliser industry.Sulphuric acid is currently manufactured in a number of plants located at coastal regions of Western Australia using imported sulphur. The sulphuric acid is then used for superphosphate or titanium dioxide pigment manufacture at adjacent plants.The possibility is considered of manufacturing superphosphate at Kalgoorlie from locally produced acid obtained from the smelter gases and from phosphate rock railed to the site from the coast. The advantages of such a scheme include improved scale and technology of operation compared with some existing coastal operations, use of a waste material to replace imported sulphur, and avoidance of costs and hazards associated with railing large quantities of sulphuric acid.

Jan 1, 1983

The Use of Automated Mineralogy to Interpret the Batch Flotation Performance of Merensky Reef Ore

Sep 13, 2010

By Hookings H. J

UNDER a contract relating to the sale of a Broken Hill concentrate, the differentiation between granular and slime concentrate is determined by the proportion of the material which will pass a 200-mesh (I.M.M. standard) screen, and this has led to considerable attention being devoted to the question of laboratory sizing tests with screens of this order.It was found that many of the screens turned out by the makers during the war, and also since its termination, did not conform with the I.M.M. specifications as closely as some supplied in pre-war days. A perfect screen is hardly to be expected, but when the above contract was framed the parties anticipated that, by special care being taken during manufacture, a screen at least as good as the best pre-war screens would be available. This, however, has not proved to be the case, and the large irregularities in screens recently supplied render them useless for sizing determinations under the contract. The makers were approached through the Institution of Mining and Metallurgy, London, with the view of obtaining a few screens conforming as closely as possible to the 200-mesh I.M.M. standard, and in response to a request twelve pieces of screen were...

Jan 1, 1922

By M Olsson, U Nyberg, K Widenberg, P Svedensten, F Ouchterlony

During 2007 and 2008, the project Optimal Fragmentation in Blasting II was conducted at the Långåsen quarry of NCC Roads AB near Arlanda. The main goals were:an evaluation of the effect of using electronic delay detonators (EDDs) in quarry blastinga validation of the design curve concept introduced at the Vändle quarry.Five production blasts were monitored. After a first trial round, the remaining four rounds each had about 100 Ø89 mm holes in a 14–19 m high bench charged with site mixed emulsions. In rounds 1 and 2, a tighter pattern than normal was used in one half of the rounds, raising the specific charge there from 0.7 to 1.0 kg/m3. Non-electric initiation was used with two holes per 25 ms delay in-row and 67 ms between rows. In rounds 3 and 4, electronic delay detonators were used instead, with 10 and 5 ms in-row delays respectively.The monitoring encompassed drill hole collaring and alignment, in-hole deviations, the rock structure in the bench faces from 3D imaging, first row burdens, etc. Eleven 400 t samples were taken from the muck piles and sorted in the quarry and sieved in the laboratory (lab). The lab data made up a fines tail that was grafted onto the in-pit sorting data to form sieving curves for the test piles. These curves were then compensated for the absence of boulders to construct the sieving curves for the blasted muck pile.These have been used to derive fragmentation model formulas for the non-electric rounds, also called design formulas. They are based on blast geometry, charging data and the properties of the rock mass. The formulas may be used to estimate the effect of changing blasthole pattern, borehole diameter and stemming length for example.The use of EDDs gave several unexpected results. In comparison with non-electric initiated rounds with a somewhat lower specific charge the fragmentation was much coarser; x50 increased from 160 to 200 mm. The effect of raising the specific charge in the non-electric initiated rounds from 0.72 to 0.99 kg/m3 was a much finer fragmentation; x50 decreased from 160 to 120 mm.CITATION:Ouchterlony, F, Nyberg, U, Olsson, M, Widenberg, K and Svedensten, P, 2015. Effects of specific charge and electronic delay detonators on fragmentation in an aggregate quarry – building fragmentation model design curves, in Proceedings 11th International Symposium on Rock Fragmentation by Blasting, pp 727–740 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 24, 2015

Stratiform lead-zinc mineralization at the Pegmont prospect occurs as a 4-6 m thick body interbedded within arkose, schist, amphibolite, and pegmatite of the Kuridala Formation in the Eastern Belt of the Lower Proterozoic of northwest Queensland.The overall structure of the body is that of a strongly crumpled east-dipping sheet. In detail it is subjected to complex and irregular deformation.Gossaneous outcrops of the mineralised body are anomalous in Pb-Zn-Ag content and have been traced, discontinuously, over about 36 km2 in a NNE-trending belt.Below the zone of oxidation, which reaches 25-40 m below the surface, the primary sulphides are galena, sphalerite, and pyrite.Drilling on a 2 km2 area near the discovery outcrops indicates fairly uniform grades of lead and zinc.Changes in thickness of the mineralised body are gradual.

Jan 1, 1977

A simulation and animation model was constructed for the Stockton Coal Mine. This mine is located in the north western area of the South Island of New Zealand. This model was used to study the optimum size of the stockpile areas whilst achieving the correct product coal qualities. The model evaluated the impact on stockpile size and product coal qualities for both bulk and selective mining. The effect of modifying the amount of known clean coal quality was also investigated. The software used was GPSS/H« for the simulation and Proof Professional« for the animation. From the study, it was recommended to incorporate selective mining in future studies. The shipping plan needed to be modified for a better correlation between coal production levels, in situ coal resources and wash plant capacity.

Dec 6, 2010

The following paper describes the refining practice for the production of lead, silver and gold at the works of The Broken Hill Associated Smelters Pty. Ltd., Port Pirie, South Australia.The refinery is situated on the wharf frontage and is built parallel with it. The refinery occupies an area of approximately 3380 square yards. (Fig. 8)There are two buildings, one containing the softening and de-silverising sections, measuring 225 ft. x 57t ft., while the other building, which measures 225 ft. x 90 ft. covers the de-zincing, lead moulding, retorting, cupellation, and dore parting sections. (Fig. 1)The retorting, cupellation, and dore parting sections are completely isolated from the rest of the plant by strong small-mesh wire gratings welded to steel uprights. The dore parting plant and generator room are further isolated by a brick wall, built up to the roof. The two main buildings are steel structures, with outer walls and roof of "Robertson" corrugated sheeting; the side and end walls are open for some distance above the ground, and this, coupled with the high roof which is 50 ft. from ground level, ensures the free access of air and light. Conditions are such that operators work in a clear atmosphere.

Jan 1, 1937

In 1801, Hatchett discovered the oxide of a new element while he was examining a heavy black mineral from Haddam, America, which had been presented to the British Museum. He named the mineral Columbite and the metal Columbium. A year later a Swedish investigator, Eckeberg, while working with a new mineral resembling columbite-yttrotantalite discovered a new element, to which he gave the name of tantalum.In 1844, Rose announced the existence of two new elements in a sample of columbite from Bodenmais. One was similar to Eckeberg's tantalum and the other was called Niobium. Wollaston, in 1909, attempted to show experimentally that columbium and the tantalum were identical, but it was soon proved that they were two separate elements. Subsequently a number of investigatiors found other "new elements" in tantalum and columbium bearing ores, but these were shown to be mixtures of the twin metals.Since Hatchett's Columbium and Rose's Niobium are identical, it is more fitting to use the name assigned to this element by the earlier investigator. However, the term niobium is still retained in Germany and England.The separation of tantalum and columbium has been one of the major problems for analytical chemists since the discovery of the two elements and it is only in recent years that tantalum of a high degree of purity has been produced. High purity columbium metal is probably still to be obtained.Until 1903 tantalum was merely a laboratory curiosity, but about this time its use in incandescent electric light bulb filaments was discovered. Eight years later it was replaced by tungsten, which was better and cheaper. For a time the electrolytic valve action of tantalum was used in the charging of storage batteries, but the chief uses of the metals' to-day are for corrosion resistant apparatus, in vacuum tubes and as carbides in the manufacture of hard cutting and shaping tools.Most of the recent work on the metals has been done by C. W. Balke, in America. Tantalum has been studied more than columbium. OCCURRENCE OF TANTALUM AND COLUMBIUMI. NATURE OF ORESTantalum and columbium occur, nearly always together, as the oxides in combination with other metallic oxides. The only known exception to this is the reported occurrence of metallic tantalum with gold in the Ural Mountains. Unlike most other metals, no compounds with sulphur are known to occur in nature. Tantalum and columbium minerals occur usually...

Jan 1, 1943

I would like to thank The Australasian Institute of Mining and Metallurgy for inviting us to share with you some of our experiences in the handling, storage, and transportation of industrial minerals in North America. Cometals, Inc. is a wholly-owned subsidiary of Commercial Metals Company, headquartered in Dallas, a public corporation whose shares are traded on the New York Stock Exchange. Sales exceed one billion dollars. Cometals, Inc. is located in New York and specializes in marketing of chemicals as well as raw materials used in the manufacture of steel, refractories, abrasives, glass and ceramics. This makes us one of the larger regular shippers of industrial minerals. Many people are aware that industrial minerals need to be viewed and judged on the merits of their chemical and physical characteristics. In addition you are surely aware that close attention must be paid to the economics of these minerals to determine the appropriate value and competitiveness of the minerals or products delivered at the doorsteps of the consuming work. You may, however, not be aware that the handling and transportation of the mineral is of crucial importance, in fact, the transportation and handling costs of industrial minerals frequently are a major component of the value of the ores marketed and, therefore, it is only natural that close attention should be paid to them. Many of the industrial minerals require special handling to assure that the material reaches the consumer without being contaminated and without getting wet. I invite you to accompany me through the various steps involved in "delivering the goods" to the consumer.

Jan 1, 1989

By A Giblett, R Dunne, D Appelhans

There are a number of hurdles that must be negotiated in order to design an effective gold ore treatment facility such that the expectations forming the basis of project economics are valid and can be achieved in practice. Selecting samples based on geometallurgical context, performing and interpreting testwork relevant to the selected process flowsheet are essential considerations towards achieving this aim. This paper discusses recent experiences in process development for free milling gold ores giving consideration to frequently encountered challenges of this nature.CITATION:Giblett, A, Appelhans, D and Dunne, R, 2013. Considerations for effective gold process development, in Proceedings MetPlant 2013 , pp 445-454 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 15, 2013

By M Carr, K Williams, W Chen, J Plinke

The depletion of iron ore deposits at the face of the mine site dictates the necessity for the exploitation of formerly less attractive orebodies to meet the demand of the modern world. These orebodies will typically be found close to or even beneath the water table where an increasing clay and moisture content will result. Problematic iron ores, colloquially termed as ‘wet and sticky’ material (WSM), can have a significant impact in the material handling stream due to the expensive downtime of processing equipment, which is attributed to the inter-particle and boundary cohesion and adhesion forces of the bulk material.In order to gain a better understanding of the causes of poor handleability, experimental test methods to determine wall adhesion, and inter-particle adhesion within bulk materials were developed. Based on the combination of wall adhesion and inter-particle adhesion measurements, with traditional methods of assessing bulk material handleability, a new method to assess the potential of bulk materials to cause handling problems is proposed. This method reduces the multitude of factors leading to problematic behaviour to a handleability index (HI) [0,1], which is easily assessed and understood. The method is suitable for adhesive materials and applicable for a wide range of material flow, from gravity reclaim stockpiles to transfer chutes and carry back on conveyor belts.Additionally, this research presents an assessment of the HI derived by experimental testing of three iron ore samples. A clear understanding of the problematic behaviour of the iron ore samples is achieved with the use of dust extinction moisture (DEM) tests, which indicates the regions where problematic behaviour may be experienced on-site.CITATION:Carr, M, Plinke, J, Williams, K, Roberts, A and Chen, W, 2017. Determination of the handleability index of adhesive bulk materials, in Proceedings Iron Ore 2017, pp 503–510 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 24, 2017

THE nature of the ore deposit of the Broken Hill line of lode is such that it can be broadly divided into two the calcitic and siliceous ore bodies. The principal minerals occurring in these ores are: Galena, sphalerite, pyrite, arsenopyrite, chalcopyrite, pyrrhotite, calcite, rhodonite, garnets, feldspar, fluospar, quartz.Whilst these minerals persist in both classes of ore, the following typical analyses of Broken Hill South Limited ore bodies will give some indication of the disposition with regard to each:

Jan 1, 1928

Rb-Sr measurements on total-rock samples of granitic rocks from the Mount Isa region have confirmed the existence of two periods of granite-forming activity. The Kalkadoon Granite, together with the Ewen Granite and possibly an older phase of the Sybella Granite, has been shown to belong to the earlier age-group at 1760 m.y.; the Wimberu Granite and a pegmatite associated with the Sybella Granite have been dated at 1540 m.y. The initial Sr ratio suggests that the Wimberu Granite may be new material of deep-seated origin.Further Rb-Sr measurements have confirmed previously-reported K-Ar results upon biotites from these rocks, whilst showing that, in this metamorphic terrain, biotites have lost varying amounts of radiogenic Sr and Ar, and therefore yield ages which are younger than the true age of the second event.

Jan 1, 1966

By T Hughes

The Gekko InLine Pressure Jig (IPJ) was unleashed on the World gravity separation market in 1996 and has since sold over 150 units in applications including tin, diamonds, silver, coal, garnet and gold. During the past twelve years the knowledgebase of the best applications and capabilities of the IPJ has greatly increased. Improvements to the original IPJ design have included engineered ceramic ragging in specific gravities from 1.6 to 5.0, full automation and improved designs of feed presentation and tailings and concentrate handling systems. The IPJ has been found to be able to handle a wide feed size range and recover mineral at liberation size without significant addition of water to the mass balance. Test work carried out during full-scale operation of the IPJ has shown the IPJ can recover diamonds down to 0.5 mm, sulfides down to 0.3 mm and gold down to 0.1 mm which greatly expands its application in the mineral processing industry. A significant volume of data now supports the symbiotic benefits of an IPJ and flotation circuit combination to pre-concentrate an ore and minimise downstream processing requirements.

Jan 1, 2008

About 15 per cent of total electricity (400 MkW) was generated by nuclear power plants in the world (2009) and about 36 000 tons of uranium has been mined in uranium mines annually. Radioactive waste material is produced from uranium mines and nuclear power plants. The wastes must be disposed or stored safely for long-term. If they leak and/or move from disposal or storage sites due to air/groundwater flow, then a serious environmental pollution can occur. Hence, multi-layer system has been proposed and employed in order to seal off these radioactive waste materials from biosphere. Basically, bentonite is now used for establishing absorbing and sealing layers in this system. However, the amount of high quality betonite is very limited and in some cases it is hard to be obtained.On the other hand, a great deal of refuse from coal burning plants is produced every year and the amount of it is expected to be higher each year, especially in developing countries. More than half of flyash is utilised and the remaining is disposed at the disposal sites. However, the life of the disposal site is limited and it is diff cult to find a new disposal site. It is requested that the percentage of the utilisation of the flyash be increased in every field.From the above two points of view, a flyash-based barrier layer/cover system is considered in this research and this paper discusses the applicability of flyash as a content of barrier layer/cover material based on the results of a series of laboratory tests.

Dec 6, 2010

The author summarizes and extends the relevant results of papers previously published by various authors and presents these results in chart form. The charts are used to demonstrate the theory on a hypothetical mine.INTRODUCTIONRecently a series of articles have dealt with leakage in a mine ventilation system and the problem of its reduction.Theories were developed by Peascod and Keane (1955) for the combined effect of flow in the airways and leakage through the porous barrier between the intake and return of an ideal mine. Later Keane and Peascoa. (1956) extended these ideas to the use of an underground booster fan in increasing the face ventilation and showed how to determine the water gauge and location of the most efficient underground fan.These articles were based on the assumption that Atkin:son's formula:P = R Q2 (1)gave the relation between the pressure drop P lb'/sq. ft., the quantity, Q kilocusecs, flowing in the mine airways and the total resistance, R Atkinsons, to air flow offered by the mine roadway. An Atkinson is defined as a resistance such that 1 kilocusec of air flows due to a pressure drop of 1Ib.jsq. ft. However for conditions prevailing in most mines a more :appropriate relation is that postulated by Reynolds and others (Lamb, 1953) :P=R Qn (2)where n has some value slightly less than 2. It should be noted that Atkinsons may not be used as units when n is not equal to 2.

Jan 1, 1958