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By B Tadesse, L G. Dyer, K Ward

The Golden Mile ore deposit in Western Australia is one of the largest gold telluride deposits in the world. Approximately 20 per cent of the contained gold in the deposit is present as gold telluride minerals, the most prevalent being calaverite (AuTe2) and petzite (Ag3AuTe2). Telluride mineralogy in the Golden Mile orebody is fine grained and complex having formed due to hydrothermal deposition in the late paragenetic sequence. Nineteen tellurium bearing minerals have been identified including gold and silver as well as mercury, lead and nickel tellurides (Shackleton, Spry and Bateman, 2003). Extensive work has been completed on the flotation of gold, gold-silver alloys and gold ores however there is a lack of information detailing the difference between flotation of native gold and individual gold minerals (Dunne, 2016). Studies on the flotation behaviour of gold ores have focused primarily on the flotation of free gold and refractory sulfides (Teague, Van Deventer and Swaminathan, 1999).

Aug 24, 2022

By K T. Mandisodza, T J. Cartledge

The principal objective of Geotechnical Engineers supporting operating mines is to provide safe working conditions and ensure that pit designs are geotechnically optimised to site conditions and pre-defined stability requirements. Pit slope designs are delivered in advance of pit excavations. Making changes to these designs is usually slow to enact and involves a layered sign-off before implementation, leading to unwanted delays in their adoption and subsequently increased production pressures. When unexpected ground conditions are encountered during the mining process, or short-term mining schedule requirements demand it, changes to these designs may not be easily feasible in certain situations. It is when these scenarios arise that Geotechnical Engineers need to be proactive and consider unconventional options to deliver safe operating conditions while satisfying short-term requirements to the mine schedule. Essentially, the geotechnical short-term strategic designs double-pronged approach supports the mine schedule while providing safe conditions and minimising geotechnical risks for people and equipment. Common short-term strategic geotechnical designs include; slope buttressing, over-steepening cut slopes to increase reserve recovery through unplanned or emergency cutbacks, and accepting risk threat and operating under unstable slopes. When implementing strategic design options, the Geotechnical Engineer must consider the broader implications for such designs. They must think of the plan’s long-term effects on the mine schedule and pit wall stability. Initiating aggressive designs to recover additional reserves to satisfy a short-term scheduling demand could result in-pit wall instability or suboptimal pit layout. Before and during the implementation phase, the Geotechnical Engineer must communicate and engage with relevant stakeholders to ensure that the plan is executed accordingly and geotechnical risks are effectively managed. Proactiveness to ground response and implementation of risk management strategies will improve safety performance and optimise mining schedules.

Jun 22, 2022

By B Laidens, D Souza, W Bielefeldt

The CaO-MgO-SiO2-Al2O3 system, characterised by its intricate phases and thermodynamic properties, plays a pivotal role in steel secondary refining processes, encompassing desulfurisation, non-metallic inclusion capture, and refractory protection. Accurate predictions for diverse industrial applications, including metallurgy, ceramics, and materials science, are imperative. To address this challenge, a combination of machine learning techniques will be specifically applied to model the liquid fraction of the slag and the solid fraction of MgO. The development of an artificial intelligence (AI) system, leveraging various machine learning techniques, has gained momentum in this project. The focus of this work is on constructing an AI model, based on machine learning techniques, within the CaO-MgO-SiO2-Al2O3 system, utilising simulation results from FactSage™, version 8.1 (by GTT Technologies). The primary objective is to train the AI model using these simulation outputs to predict the percentage of liquid fraction and MgO saturation based on chemical composition parameters. The AI model will undergo training with a comprehensive data set of simulations within the CaOMgO- SiO2-Al2O3 system, covering a diverse range of compositional at 1873 K. These simulations, conducted through FactSage™ 8.1 software, provide a robust foundation for AI model training, ensuring generalisability and precise predictions for the liquid fraction of the slag and the solid fraction of MgO, the solid fraction of MgO in this case is determined by the difference between the total MgO and the MgO in the liquid fraction, so it is not the objective of this study to determine which phase of MgO is in the solid state.. The predictive capabilities of this AI model hold significant implications for process optimisation, quality control, and decision-making in CaO-MgO-SiO2-Al2O3- dependent industries. Precise estimations of the liquid fraction and MgO saturation empower researchers and engineers to enhance operational efficiency and quality. This paper explores the methodologies employed for AI model creation and training, achieved results in terms of prediction accuracy, and potential applications in the field. The development of this AI system signifies a notable advancement in utilising machine learning for better comprehension and control of complex chemical systems. Furthermore, to align the study with real-world steel production, we introduce FeO and MnO at concentrations of 2 per cent and 1 per cent at 1873 K, respectively, following the validation of model results using the CaO-MgO-SiO2-Al2O3 system. This adjustment aims to bring the study closer to the observed reality in steel mills globally.

Jun 19, 2024

By D Felipe, G J. Harbort

In the past 40 years substantial changes have occurred in flotation machines. This has included increases in mechanical cell size to 630 m3 , significant changes to flotation column aeration design and widespread use of the Jameson cell and other pneumatic flotation cells. Over the corresponding period there has been increased used of machine characterisation measurements to benchmark and optimise flotation circuit performance. JKTech maintains a database of industrial flotation machine characterisation measurements. The database contains over 4000 entries and includes gas dispersion measurements, such as bubble size, gas hold-up and superficial gas velocity, cell dimensions and impeller tip speeds. Data comes from numerous operating sites and commodity groups, including gold, copper, molybdenum, nickel, palladium, lead-zinc, platinum, silica, phosphate, coal and iron ore. Flotation duties registered include flash flotation, preflotation, roughing, scavenging and cleaner circuits. Measurements have been conducted on a wide range of flotation machines from different manufacturers. This includes forced air machines, such as Outotec and Dorr Oliver, and self-aerated machines, such as Denver and Wemco. The database also includes substantial flotation column entries, such as the Microcel, Eriez/CMT Slamjet and Jameson cell. This paper describes the flotation machine characterisation database and discusses the variation between different types of industrial flotation machines, in operating production circuits.

Aug 24, 2022

By Langham B. M

A chemical study of the petrographic components of Greta (Maitland) coal, carried out by the Metropolitan Gas Co. (Melbourne), has revealed an anomaly in the composition of the durain which was thought to warrant petrological investigation.The original study, by the Metropolitan Gas Co., extended over eight shipments of coal received during the winter of 1943.The percentages of the several petrographic components were eslimated by careful handpicking of large samples of each shipment, and analyses were made of the handpicked components, which were also tested as to their gas-making and coking properties.The results are summarised in Tables 1 and 2. At first sight the components of the Greta coal bear a general resemblance in composition to those of other bituminous coals of similar rank, apart from a notable richness in volatiles, which is a distinctive feature of Greta coal. The durain has a typically higher ash content, and lower volatile content than the clarain (Table 1); and the coking behaviour of the four components is typical (Fig. 4).When, however, the analyses of Table 1 are re-calculated on a dry, ash-free basis, an anomaly appears: the clarain and the durain, on this 'pure coal' basis, have practically identical compositions, with the durain containing a slightly higher proportion of volatiles than the clarain (cf. Table 3); but the tar yield of these two components is very different (Table 1). Re-calculated on a dry, ash-free basis, the yield from the clarain is 18.9 gallons of tar per ton, while, that of the durain is 29.0 gallons per ton. The gas derived from the durain is correspondingly richer in illuminants (CH etc) and poorer in hydrogen than that from the clarain (Table 2), and is also notably richer in nitrogen.That the composition of the Greta durain is consistent is proved by the analyses of Table 3, in which the compositions of the respective durains and clarains of eight separate shipments of coal are compared. In most bituminous coals, the durain contains several per cent less volatile matter than the associated clarain, and high volatile content in a durain usually indicates a durain rich in spores.

Jan 1, 1947

By G P. S Resende, D E. G Oliveira, E A. S Baeta, T F. Bravin

There is currently in the mining industry, as well as in other industries, a movement seeking to increase investments in decarbonisation processes to help combat global warming. Among some initiatives taken is replacing diesel-powered mobile equipment in the mines with electricity-powered equipment, such as electric off-highway trucks or even belt conveyors in the mining operation. Samarco is a Brazilian mining company that since its conception has used a conveyor belt mining system in its mining operation, using only a small number of trucks to complement the mining process. This mining process that combines conveyor belts and trucks has brought environmental gains for the company since the environmental impact of conventional truck-only mining is greater than that of the combined system. To measure these gains, a medium-term mining plan was developed in which two fleet scenarios were detailed. One scenario contemplated a high level of detail of belt mining seeking its maximisation, while the other considered the operation performed 100 per cent by trucks, eliminating the use of conveyor belts. Through the comparison of these two scenarios, it was possible to make an inventory of atmospheric emissions and greenhouse gases for each one of them considering data such as types of equipment, diesel consumption, total distance travelled and energy consumption. The results showed that the fleet scenario with conveyor belts results in periods with up to 15 per cent less greenhouse gas emissions and 37 per cent less total particulates compared with the truck-only scenario. Therefore, the results confirm the environmental benefits of the method and the need to look for ways to even expand it in future operations through a study to identify the potential areas in the long-term mining plan.

Sep 18, 2023

By L Chaffey, M Buckland

The minerals industry has enormous potential to positively contribute to sustainable development and many leading companies have concluded that their long-term success is directly linked to their ability to leave a lasting positive legacy. While there are many examples of success, there have been failures as well and much work has been done in recent years to define the role of the minerals industry in sustainable development and identify the key elements for success. In the past, our sector could point to the taxes and royalties it paid, the exports it generated and employment it created and felt confident that its contribution would be recognised and duly acknowledged. This is no longer the case. Critics of the industry have highlighted resource-rich countries that have failed to capitalise on their resource wealth and have arguably lower standards of living than their resource-poor peers û the æresource curseÆ hypothesis. Recent research has done much to clarify the factors that contribute to a countryÆs success or failure and all stakeholders in the industry now need to include these learnings in their approaches going forward. We know that our long-term success relies on embedding a company- wide approach to sustainable development into all aspects of our business operations. In this paper we highlight BHP BillitonÆs experience in the development and implementation of policies and systems designed to enhance our contribution to sustainable development. We detail the business drivers for excellence in this area and the key external codes and initiatives that have shaped our approach. The values-based BHP Billiton Charter, Sustainable Development Policy and associated Health, Safety, Environment and Community (HSEC) Management Standards are central to our approach. Implementation is reviewed through our HSEC audit program. One area in which we have placed particular emphasis is our approach to community development. BHP Billiton has a corporate target to contribute one per cent of its pre-tax profit on a three year rolling average to voluntary community programs. As our profit stream has increased with the minerals boom this is approaching an A$100 million commitment. In our paper we detail how we are working to ensure we maximise the value of this contribution for our communities and our shareholders.

Jan 1, 2006

By G Simpson, S Dressler, A E. Levett

Tailings storage facilities often represent a mining operation’s most significant liability, posing serious environmental, social and safety risks. Almost all mining operations dispose of wet tailings (Valenta et al, 2023), which represents a risk of failure due to the potential for a rapid strength reduction of the unconsolidated materials leading to static liquefaction and subsequent dam wall failure. As a waste stream, tailings disposal, decommissioning and relinquishment aim to be inexpensive processes, ruling out many highly engineered solutions. Advantageously, tailings consolidation does not need to be immediate, opening the door for relatively passive, inexpensive consolidation methods that aim to gradually increase the strength of tailings over extended periods (ie years). In this paper, we present the prospect of novel in situ tailings stabilisation, learning from studies that have investigated the most erosion-resistant landforms on Earth.

Aug 2, 2023

By M Bellamy

The DeGrussa copper deposit was discovered by Sandfire Resources in April 2009. Construction of the 1.6 Mt/a concentrator, open pit and underground mining operations commenced in March 2011 with first concentrate production achieved in October 2012. Over the next ten years, DeGrussa grew to include both the DeGrussa and Monty underground mines, establishing itself as one of the world’s premier copper producers with total production of 663 000 t of contained copper by the time the mine closed. Final ore was trucked from Degrussa on 5 October 2022. This paper examines the mine closure experience from both a planning and operational perspective. The paper provides an overview of the site’s mine planning process including the factors involved in determining the end of the mine life and how this was tracked and communicated in the lead up to the end of mining operations. It will also look at some of the specific operational aspects involved in maintaining steady state production all the way through to the last day while facing increasingly challenging conditions. These factors, along with the external factors faced by most of the industry such as labour shortages and COVID related disruptions, contributed to making it an interesting journey to the end of operations at DeGrussa.

Mar 29, 2023

By B Shi, Y Li, L Ma, F Zhou

Subsurface fires are a common threat to coal mining, as spontaneous combustion of coal can potentially result in gas combustion and explosion. Fire-proof techniques, such as grouting, foam, or colloid injection, are not in a position to function ideally, due to the limited coverage and stopping the extinguishment substance from reaching the fire location. Liquid nitrogen, as a kind of all-submerged fire prevention or extinguishing method, can rapidly extinguish fires, thus preventing gas explosion and minimising extinguishment time. Injecting liquid nitrogen through boreholes is an important way during the period of mine catastrophe. But liquid nitrogen is not effective enough in infusion; technical issues restrict the development and utilisation of liquid nitrogen fire prevention and extinguishing technology. Immediate infusion of liquid nitrogen is usually associated with ‘air slug’ (the balloons and bubbles in the pipeline which hinder the flow of low-temperature liquid), which blocks pipelines for liquid nitrogen injecting. Another issue is that the pipeline tends to be damaged due to freezing, which undermines the injecting efficiency of liquid nitrogen and its application result. In order to solve the problems of the low efficiency and some other related field issues in liquid nitrogen perfusion, the ground–underground high efficiency liquid nitrogen injection technology were developed. Implementation of liquid nitrogen infusion techniques in Chinese coalmines achieved the goals of fire prevention and air-cooling. The technique presented in this paper is efficient in absorbing heat, and consequently, displacing oxygen and combustible gases. Field tests at Rujigou and Yangchangwan Coalmine justified the efficiency of the technique. By using this technique, there was no waste left behind, which may impede the subsequent production. The presented technique is of great benefit to the social, economic, and environmental aspects of mining operations, and will have broad applications in fire prevention for large-scale coalmines.CITATION:Zhou, F, Shi, B, Li, Y and Ma, L, 2015. Key techniques and engineering applications of stereoscopic liquid nitrogen infusion for coalmine fire prevention, in Proceedings The Australian Mine Ventilation Conference, pp 291–298 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 31, 2015

By R M. Smart, A T. Harrison

Backfill systems using unconventional cementitious binders have been successfully used in relatively deep and hard rock tabular mines for longwall, scattered stoping and shaft pillar removals. Two unconventional cementitious systems are discussed: A ground granulated blast furnace slag (GGBS) with an activator containing lime. This has been used with a total tailings æstableÆ slurry at a relatively low dosage of less than seven per cent, by mass, based on dry solids. The room and pillar stopes supported with this fill were up to 20 m high and the tailings were relatively high in pyrite. A GGBS binder plus a silicate based activator and gelling agent that virtually eliminated all water drainage (and hence post filling shrinkage). The system used a slurry, but the addition of the activator created a final placed product that had the behaviour of a paste. The system has been successfully used for almost ten years in the following applications: stoping widths (mining heights) above 1.6 m; and shaft pillar removals in seismically active areas at the end of the life of the shafts. This paper discusses the technical merits and costs of the systems and compares them to other fill systems (including true paste systems). the acceleration (normally g, 9.81m/sec2) is increased to a significantly larger (but generally unmeasured and unknown) value, as shown in Figure 1.

Jan 1, 1998

Large deposits present computational challenges to todayÆs commercial orebody modelling systems that are based on conventional block models. We describe a system that is specifically engineered to model and visualise large deposits. Central to the system is linear octree encoding of conventional block models and real-time conversion of three-dimensional (3D) meshes to linear octrees. We provide both methodological treatment and practical experience in implementing such a system. A commercial implementation is also presented to demonstrate the validity of the approach.

Sep 26, 2011

By M Steinberg, M Amarant

Upstream Classifier are well-known in the iron ore industry for at least 15 years. At present, more than 60 units are in operation in Western Australia. The advantage of this technology is their capability to produce three products with one equipment – iron ore concentrate, iron ore middlings for further processing and slimes (tailings). The principal of this beneficiation process – upstream classification and upstream separation – will always remain. However, the optimisation of the classification and separation efficiency of the equipment itself is a continuous process driven by enhanced automation and instrumentation, design changes and the use of upstream and downstream information and requirements. Besides efficiency, the safety, maintenance and replacement conditions are very important subjects for the operation of an iron ore mine. The aim of this paper is to present a new allflux® upstream classifier design, which has been developed together with several iron ore producer from Western Australia. The new design benefits from its sustainability approach by dividing the entire equipment into small reusable parts. As a result, maintenance is minor, replacement much faster, lifetime much longer and costs much lower. Furthermore, it demonstrates new features to prevent hazardous working conditions such as confined space as well as new fixing devices to speed up the replacement of certain items and parts.

Sep 18, 2023

By G Pasin, F Wirfiyata, G Khomaeni, W Valery, A Maclean, A Jankovic

The grinding circuit at PT Newmont Nusa Tenggara (PTNNT) – Batu Hijau mine consists of two SABC (semi-autogenous milling, ball milling, pebble crushing) trains, including four 20'?×?33'6? ball mills that have been lined with steel liners since the commissioning of the plant in 1999. During 2011 and 2012 an industrial trial was conducted to evaluate Poly-Met liners (a combination of rubber and steel liners). These new liners were installed in two of the ball mills (ball mills 1 and 2) and operated in parallel with ball mills 3 and 4 with steel liners.The objective of the trial was to compare the plant performance with the Poly-Met and steel ball?mill liners with regards to wear life, mill throughput, grind size and total unit costs. The trial was conducted over the entire life of the liners. The evaluation methodology implemented consisted of frequent spot sampling around the ball mill circuits, complete surveys/audits in both ball mills, and detailed analysis of process data. This paper presents the results of the industrial trial and main conclusions.CITATION:Maclean, A, Wirfiyata, F, Khomaeni, G, Jankovic, A, Pasin, G and Valery, W, 2014. Ball mill Poly-Met liner evaluation at PT Newmont Nusa Tenggara – Batu Hijau mine, in Proceedings 12th AusIMM Mill Operators’ Conference 2014 , pp 255–262 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 1, 2014

By P Holtham, K Duffy, L Pyle, W Valery

The mining industry is becoming increasingly focused on pre-concentration due to its potential economic and environmental benefits, particularly for the more complex, low-grade, high throughput operations now being developed. Advances in technology have seen bulk ore sorting (BOS) trialled at several operations. However, BOS should not be seen as a ‘silver bullet’, it can offer significant benefits, but only under the right conditions. Deposits with interspersed mineralogy or disseminated, fine-grained minerals can be difficult for BOS. Large batches of barren or low-grade material are required for BOS to be effective. Hatch has recently completed several studies for clients who believed that bulk sorting was the most suitable pre-concentration technique for their operation, based only on an assumed sorter recovery or on laboratory trials of the chosen sensor. However, minimal consideration had been given to the heterogeneity of the deposit, the achievable separation batch size or sensor repeatability. Evaluation of BOS needs to consider both heterogeneity and sensor suitability. The valuable or gangue mineral must be present in such a way that it can be separated effectively in the large bulk sorting batch sizes, without competing minerals or changing ore characteristics affecting the metal upgrade or recovery. Also, the sensor chosen must be able to detect either the valuable mineral, a proxy for the valuable mineral, or a gangue mineral for rejection with sufficient accuracy and precision (repeatability). This paper presents three recent case studies, emphasizing markers which indicated that bulk sorting was unsuitable for the project whilst highlighting the pre-concentration technologies which were applicable (including particle sorting, and coarse particle gravity separation). The modelling methodology, equipment sizing and forward work plans developed to verify these alternative solutions are also presented, demonstrating the key factors contributing to a thorough scoping assessment.

Aug 24, 2022

By S Lehane, S Pearce

The characterisation and assessment of waste rock has been the subject of considerable research, and many guidance documents have been published both internationally and within Australia. While these documents provide detailed information on how to characterise waste rock, there is not a great amount of detail on how to determine the optimal waste management options from an operational viewpoint. For example, typical questions that a mine operator would seek answers to include: What placement method should be used (eg end tipping versus paddock dumping)? What is an optimal tip head height for waste placement in a storage facility? How should sulfide grade control be carried out?Defining the contributing factors to waste management and waste material placement and assessing the contribution of each variable directs these assessments towards a semi-qualitative and quantitative methodology. Quantitative methodologies show an increase in the confidence of these assessments by providing logical, measureable assessments.As part of a strategic assessment for waste management at an active mine site, a detailed risk-based investigation of the influence of variables common to waste placement was completed. These variables included placement method, placement height, sulfur grade and material conditioning (eg compaction) on the associated risks of waste material storage. The assessed risks include temperature assessments (potential for thermal take-off as a result of spontaneous combustion), toxic gas production and flow and acid production potential. Applying a numerical modelling approach to the assessment of the different waste material placement strategies allows for the variation in risk to be graphically presented and communicated through risk matrices and histograms.CITATION:Pearce, S and Lehane, S, 2015. Quantitative risk assessment tools to assist with waste management and placement guidelines, in Proceedings Tailings and Mine Waste Management for the 21st Century, pp 353–364 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 27, 2015

By G R. Ballantyne, G Lane

Dry milling circuits that include high pressure grinding rolls (HPGR) or vertical roller mills (VRM) and air classification have replaced dry ball milling in cement production, but how do they compare to wet milling and classification circuits in mineral processing plants? Two case studies are presented that compare the energy efficiency, wear, liberation and capital cost of dry and wet milling circuits. In both case studies the VRM and HPGR consume half the energy of a wet tumbling mill for the same duty. However, the dry classification system tends to significantly erode the energy benefits. A number of improvement opportunities are presented that have the potential to improve the energy and capital efficiency of dry milling circuits. These improvement opportunities focus on the dry classification system that consumes significant energy in heating and fan power requirements and requires a large proportion of the footprint.

Aug 24, 2022

By K White, C Ferguson, M Harding

Understanding watercourses and river processes at a landscape scale is vital for managing risk to mining infrastructure and operations as well as minimising future environmental impacts beyond the life of the mine. Recognising this, Iluka Resources Limited engaged Alluvium Consulting Australia to identify and characterise watercourses across several neighbouring mineral tenements in the Eucla Basin, South Australia (Alluvium, 2013, 2014a, 2014b). The objective of the studies was to inform planning for risk management during mine planning and operation and appropriate landscape rehabilitation for mine closure.Mining operations in the area are by open cut extraction of mineral sands. The extracted resource is processed on-site before leaving the site for export. Several pits are to be developed in stages with simultaneous backfilling and surface reinstatement. Mining is initially taking place in the Jacinth tenement, where up to 100 km of watercourses may be directly or indirectly impacted (refer to Figure 1).The total study area (shown in Figure 1) is approximately 330 km2 and spans three smaller areas that were the focus of separate investigations during mine planning.CITATION:Ferguson, C, White, K, Harding, M and Hardie, R, 2016. Landscape-scale assessment of watercourses in remote arid South Australia to inform mine planning to mine closure, in Proceedings Life-of-Mine 2016 Conference, pp 200–204 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 28, 2016

By S Tierney, D Cumming-Potvin, I Thin, Y Potvin, D Grant

The preliminary modifying factors for future stope design in the Southern Mine Area of Olympic Dam consisted of only a single, arbitrary value of Equivalent Linear Overbreak/Sloughing (ELOS). In order to improve this, a study was conducted which developed a more comprehensive methodology for assigning ELOS, Equivalent Linear Lost Ore (ELLO) and Equivalent Linear Fill Overbreak (ELFO) to individual stope faces based on geotechnical and mining parameters. The approach used was to look at the simple cases, which were classed as vertical stope walls in good ground (RQD 80-100%), divided into wall orientations (North, South, East, West). The stope walls were also split based on the blasting practice used (toeing, parallel or a combination of the two). The expected ELOS and ELLO from these ‘base cases’ are then modified by parameters which have historically been found to affect stope performance (Hydraulic Radius and Q’). The size of the effect found in the historical data determines the ELOS / ELLO applied. The methodology was summarised in an easy to use flow chart and was applied to all of the proposed stope shapes for the Southern Mine Area and summarised per mining block. This allowed each iteration of the mine plan to be assessed in terms of overbreak (both rock and vertical fill exposures) and underbreak.

Mar 15, 2021

"Cash flow modelling during project evaluation is enhanced when probabilistic methods are applied to the inputs. One of the important inputs is the quarterly production profile. Typically, the steady-state production profile provided to project evaluation practitioners is deterministic, with each quarter the same as every other quarter. This is unrealistic as actual production profiles from existing mines exhibit a range or quarter-on-quarter variance. Monte Carlo stochastic simulation of the production profile can be used to provide a range of possible outcomes, but how are these ranges selected? This paper describes the use of quarterly production variance from a large database of mines worldwide as a benchmark to inform the appropriate selection of ranges. The coefficient of variation is used to rank the production from mines, with quartile analysis applied to indicate industry best, median and worst variation. Due diligence of existing mines and evaluation of future production performance can be quantitatively assessed using this approach. Examples of the effect on value are provided.CITATION:Stewart, C A, 2016. Production variance benchmarks and their use in project evaluation and due diligence, in Proceedings Project Evaluation 2016, pp 201–213 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016