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By J Koppe, J F. Costa

A fundamental error of sampling occurs when a sample is extracted from a larger mass of ore or lot. The act of sampling requires that all particles belonging to the lot have an equal chance of being extracted. This type of sampling is called unbiased sampling. The sampling equipment (herein referred to as the sampler) should be constructed with some additional mechanical characteristics to guarantee that the samples will be unbiased. Samplers, extracting increments from a continuous flow, such as a conveyor belt, collect aliquots at regular time intervals. These time intervals relate to the number of aliquots extracted from a given mass of lot, whilst passing through the continuous flow. The frequency of extractions will influence the precision or the error of the sample (integration error). Further, the ore variability influences the amount collected from the continuous flow. Normally, the sampling protocol utilised is designed for the extractions obtained from the conveyor belt, omitting any error committed during this operation, ie the error of extracting from the continuous flow. This study aims to analyse the error of sampling a continuous flow by using a variogram with added on auxiliary functions. Each different piece of material passing through the flow will exhibit a distinct temporal variogram, which should influence the frequency of the samples being extracted for each chosen sampling error. The methodology used is presented in the form of a case study from a coal processing plant.

Jan 1, 2005

Strong markets for metals and energy over the past five years have supported equity and debt market funding to enable a new group of mining juniors to emerge in control of economic resources, some in regions with high investment risk. As companies drive these projects to development, production and positive operating cash flow, their Boards and CEOs are confronting important questions:Having achieved initial success, what is our longer term purpose as a company? Does the purpose originally described in the Initial Public Offering to raise equity remain wholly relevant? Given that purpose, how do we understand the available sets of opportunities and related risks? Should we be acquiring new assets or other companies, or developing the existing portfolio? What commodity sectors and geographies should we focus on? Or should we be conserving funds until asset prices or project costs provide greater assurance of value to shareholders? How do we translate that purpose into tangible goals that shape and direct the work of people in the organisation? How do we get the right work done in the face of high turnover and competition for capable staff? Drawing on the authorÆs career experience and on work undertaken by Heuris Partners, this paper provides a practical CEO framework for strategy development, organisation design and on planning the work of the business in the mining industry.

Jan 1, 2006

Discounted cash flow (DCF) methods are well suited and recommended as a primary valuation method for mineral assets for which there are at least indicated resources and some form of feasibility study containing engineering, production and capital and operating cost data. DCF methods are also applicable as a secondary or check valuation method for exploration properties for which no technical study has been prepared. For projects where little or no engineering, production and/or cost data is available, the process of formulating a project concept by specialists who do not possess experience and expertise in the relevant technical faculties is totally rejected as a basis for applying DCF techniques as a primary valuation method. Such an approach runs counter to The Australasian Institute of Mining and Metallurgy (AusIMM) requirement to apply relevant expertise to specific aspects of mineral valuation. Technical and commercial inputs to mineral valuation should be reviewed by specialists who have specific expertise in the relevant disciplines, and should be tempered by the quantity and quality of technical evaluation which has been undertaken and the development status of the asset.

Jan 1, 1994

TSG Consulting works with many of the major global mining companies using simulation modelling as an integral component in their development teamÆs processes to determine which combination of infrastructure options, operating performance and operating rules best achieve project goals. All systems can be divided into a series of subprocesses. Conventional management and design practices focus on the optimisation of these system components. However, the interaction between subprocesses means that improvements made to the individual components do not necessarily translate into total system performance improvement.TSG Consulting advocates a ætotal integrated system approachÆ to understanding the behaviour and performance of complex interacting systems. In a constraint-based integrated set of processes, the instantaneous system capacity is limited by the subsystem component capacity that is the bottleneck at that point in time. Additionally, real world stochastic and dynamic influences tend to have knock-on effects across subsystem boundaries. This necessitates the requirement for simulation modelling to develop and validate solutions that are sufficiently robust to deliver sustainable outcomes. The key to maximising production is to understand the causes and effects the inherent variability has on component performance, subprocess performance and most importantly, the total integrated system performance. The correct use of simulation modelling techniques allows study teams to evaluate the relative merits of different capacity enhancement proposals. Put simply, when done well, simulation modelling provides a quantitative and rational process to enhance the knowledge and insight needed to make informed decisions.

Jan 1, 2007

By Westcott PC

The development of a coal project must pass through a number of phases, taking it from a preliminary evaluation through to detailed mine planning. For each phase the cost of data acquisition and associated mining studies increases exponentially for linear improvement in confidence levels. Within each mine planning phase there are four main activities. These are the economic ordering of reserves, the development of optimum mining strategies, mine design and scheduling and finally the estimation and analysis of costs. The development of the optimum mining strategy is one of the most critical aspects of a mining evaluation and the application of economic criteria at this stage of the project is vital to the successful generation of an optimised mine design. A recommended method is the concept of Economic Ratio (ER) which expresses the likely cost of mining from a given location in a deposit in terms of the value of the product likely to be recovered. The most economic mining strategy will be to mine areas from low economic ratio to high economic ratio within the constraints of reasonable equipment application. When selecting equipment a particular machine should not be selected solely on comparison with other machines in isolation, but the total application must be analysed. In the final selection the decision should be based on whether or not it has a beneficial effect on overall project economics. The economic assessment must take into account the time value of money, so the real cost can be determined with adequate provision for capital and operating costs over different time spans.

Jan 1, 1983

By D Elder, S Bell

Over the last five years Solid Energy New Zealand (SENZ) has gone through a series of changes in response to both external and internal factors. These changes have included corporate reorganisation and funding restructure, as well as modifications to medium and long term business objectives. The nature and size of its coal reserves and markets requires SENZ to continue developing new mines as existing mines are depleted. As well, there are opportunities to develop new mines as coal markets change or to realise value from existing coal resources. To assist in this process, a set of mine project assessment guidelines which are relevant to the size and scale of anticipated mine developments have been developed for SENZ. These project guidelines are structured to operate from the early stages of project or resource review through to final feasibility study stage. The guidelines provide both a basis for planning and budgeting, and a control mechanism within the company. They also enable clear understanding of the status of individual projects and provide a framework for comparison between projects. SENZ now has a defined method to plan, monitor and control this important aspect of its business. The paper explains the development and structure of the guidelines, as well as providing examples of their application. and use. It demonstrates how SENZ integrates its long term planning, five year planning, annual planning, project planning and risk management to maximise the value of individual projects, business units and the company overall in a consistent manner.

Jan 1, 2002

By H R. Phillips

The ventilation and refrigeration design of underground mines is an important aspect, when new or existing mines are considered and places a great responsibility on engineers tasked to do so. The current trend for both local and international underground mines is to extend their search for valuable ore reserves deeper below surface. In South Africa, the predictions are that about 40 kt of actual gold still lies in situ, ready for extraction. As mines extend their search for minerals of economic value deeper and deeper into the earthÆs crust, ventilation and refrigeration aspects of such mines become more prominent than before. The planning and design of the required ventilation and refrigeration within these mines, over their expected lifetime is important including the practical implications of such designs. Technology changes and improvements need to be incorporated into ventilation and refrigeration designs, where possible and advances in this specialised field explored. This paper explores ventilation and refrigeration design aspects within the underground mine sphere. Aspects such as mining depth, virgin rock temperature (VRT), mining methods, and different cooling applications available including ventilation supply are reviewed in design applications. Heat generally becomes a significant aspect to counter in these mines and they are not always necessarily deep mines.

Jan 1, 2005

By S Miller, R Smart, J Thomas

Single-addition and sequential net acid generation (NAG) experiments were carried out on natural and prepared samples with varying contents of organic matter and pyritic S. Results show that carbonaceous matter can produce significant quantities of organic acids during peroxide oxidation in the NAG test, which leads to overestimation of acid-forming capacity and misclassification of benign samples as potentially acid forming (PAF). Organic matter effects were most pronounced in samples with low S (less than 0.5 per cent) and total organic carbon (TOC) contents of greater than seven per cent. The single-addition NAG test will tend to overestimate acid potential in samples with little or no pyrite and high organic matter content, potentially leading to sample misclassification. High pyritic sulfur samples tend to show little difference in single-addition NAG acidities with increasing organic matter, and it appears that pyrite is preferentially oxidised by peroxide when present in significant concentrations (greater than one per cent pyritic S). In sequential NAG tests overestimation was greatest in samples with little or no pyrite, but highly carbonaceous (>20 per cent TOC) pyritic samples were affected in later stages as the pyrite was depleted. A modified NAG method is proposed to account for the relative proportions of pyrite derived acidity and organic acidity in a given NAG solution.

Jan 1, 2003

University education in Australia is changing, driven by greater market orientation, reduced funding available per student, especially in the higher-cost minerals industry disciplines, and the call for more flexible delivery of subjects and courses to meet changing lifestyles and expectations. The opportunity exists for a true partnership to develop between industry, government and academia that will reshape minerals education in Australia and secure the future supply of the specialists industry needs to maintain international competitiveness. If this partnership does not emerge, it is anticipated that AustraliaÆs somewhat fragmented and unstable higher education system, especially in the disciplines of particular relevance to the minerals industry, will be put under further pressure so decreasing its effectiveness to produce quality graduates. The Minerals Council of Australia in 1998 published æBack from the BrinkÆ, a discussion paper which proposed strategies to build a world class minerals tertiary education system in Australia. Those strategies are now being implemented collaboratively with principal emphasis on the disciplines of mining engineering, metallurgy and earth science and as far as process is concerned, on the necessity to æcooperate to competeÆ. For metallurgy, the challenge is to integrate more closely undergraduate teaching with the existing world-class research centres and to link the tertiary institutions in such a manner that the strengths of all components are harnessed and then made available nationally in major population centres and at remote sites where appropriate. For industry the challenge is to build effective partnerships with the academic community that will enable and assist the agreed course of action to take place.

Jan 1, 2000

Before proceeding to the main portion of the above subject, a few remarks as to the general question of our mill slimes seem called for, and, with this in view, it is intended to briefly refer to the salient, points connected with their production, treatment and disposal at the mills.It is well known that, owing to the inticate mixture of the constituents of our sulphide ore, 'a very great deal of crushing and grinding is required to detach the particles of galena from the zinc blende and gangue of the ore, and it will be readily understood that, in this operation, a considerable amount of the material is converted into a slime which consists of minute, but ,(as can be see~ under a glass) well definied particles of all the constituents· 6f the ore arid combinations thereof, the relative proportions of which depend on the dual characteristics of hardness and abundance of the different constituents. An analysis of the slime shows the contents to be as follows :-Galena (PbS)Blende (Zn S)Pyrites (Fe Sll)Ferric Oxide (Fell Os)Ferrous Oxide (Fe 0) contained in garnetsOxide of Manganese (Mn 0) contained in rhodonite and garnets

Jan 1, 1903

The ""multiple of exploration expenditure"" method of mineral valuation is applicable to exploration properties from the earliest stage of exploration to a moderately advanced stage but for which no resources have been delineated. While not recommended as a primary valuation method by some workers, others believe it to be the most satisfactory method of valuing exploration properties until it is possible to employ a DCF technique. In many situations facing the professional valuer, the method may represent the only semi-quantitative option available and is frequently used. Significantly it often forms the starting point in discussions to farm-in on an exploration tenement. The paper briefly reviews the definition of value as applied to mineral valuation and in particular examines the relationship between fair value and market clearing price in ""fair"", bull and bear markets. The multiple of exploration expenditure method uses previous exploration expenditure and/or future committed exploration expenditure to derive a base value for the tenements. This base value is multiplied by a prospectivity enhancement multiplier (PEM) with adjustments for market premium or discount and consideration of the quality of the exploration team to derive a fair value for the tenements. The paper will demonstrate that there is no necessary nexus between fair value derived from the method and present book Values.

Jan 1, 1994

By Murray G

This paper outlines the processes involved in acid generation from sulphides and the key factors in identifying and predicting time dependent changes in the nature of acid mine drainage (AMD). The initial characteristics of mine water; whether drainage from exposed mining faces, runoff and seepage from waste dumps or seepage from process tailings; do not necessarily reflect the long term potential for AMD. The ultimate quality of mine drainage is a function of the interaction of many chemical, physical, biological and engineering (operational) factors. Techniques are available that can predict the qualitative nature of acid generation and mine drainage quality but accurate quantitative predictions are essentially impossible at the present time. As more and more mining operations exploit sulphide ore, the AMD and acid waste issue will become a. far greater concern. The significance of time dependent factors in the production of acid mine drainage-.is not just restricted to particuL.ar mine sites but needs to be recognised by the mining industry as a whole.

Jan 1, 1988

A large scale distributed process con-trol system has been successfully applied to the automatic control of aluminium reduction cells at Boyne Smelters. A three stage hierarchy of minicomputers and microcomputers is used to continuously monitor and control conditions in each cell and to manage the data generated during the process.The automation hardware was purchased on the basis of low cost, high reliability, prior use in the aluminium industry and a high level of backup under failure conditions. The hardware has met performance criteria to date.The process control strategies have continually been updated to minimise the energy and raw material consumptions in each cell. A major change to systems software has recently been made to decrease the development time for-future changes. Various low energy potline retrofit alterations are currently being investigated requiring significant changes to the process control strategies.

Jan 1, 1985

As an environmental "pollutant", noise is different. For one thing, it is localised (as opposed to transfrontier) and, for another, relatively low levels can trigger very strong human reaction. The reactions, which are annoyance-based, range from mild to violent and do not always correlate well with the levels experienced. This paper draws on technical aspects of noise to consider control and control principles and balances them with the subjective nature of the perceptions and reactions. It is critical to bear in mind that health effects resulting from noise are secondary to the primary human reaction. It is also important to appreciate that annoying noise levels are usually well below those which cause hearing loss. Large mines tend to be remote from cities and towns and the country surrounding such mine sites is often inhospitable. In general, residences near large mines are committed for use by mine personnel and annoyance from mining noise would be rare. Noise problems at long term operations are often a result of secondary activity or land use. As a pioneer mining community develops, secondary and service industries may be established and a township created. With changes in way of life, the perception of problems also changes. Therefore, it is never too early to plan for noise abatement, particularly because noise is only one of a number of environmental and community concerns. Ihny environmental problems are associat- ed with development or expansion of smaller open cut facilities such as hardrock quarries. There is an ever-present need to reduce product cost by mining or quarrying deposits close to the end user and many local authorities have to operate quarries for undertaking their civil engineering responsibilities.

Jan 1, 1987

The recent description provided by Scott (1981) of the Ardlethan alteration systems is of particular interest as it draws attention to the analogy between Ardlethan and the porphyry tin systems of Bolivia (Sillitoe et aI, 1975).During 1978-1979 a parallel study of the mineralization confirmed that the extensive alteration pattern relates to a series of breccia pipes which provide access channelways for the mineralizing solutions (Clarke, 1979). Many of the results reported by Scott are difficult to interpret without this concept and this short discussion is intended to provide additional perspective to the proposed porphyry tin model.The breccia pipe systems are centred upon each of the major mineralized zones (Wild Cherry, Carpathia, Stackpool and White Crystal) and with the exception of the White Crystal collapse breccia the major pipes are of the hydrothermal intrusive type. They range considerably in size and shape and at least two ages of formation are revealed by their cross cutting relationships at the Stackpool, Carpathia and Ardwest regions. Individual pipes or groups of pipes have distinctive alteration/infill characteristics and the entire system can be viewed as a complex porphyry tin system evolving with time. The recognition of pipes of different types and ages reveals a situation considerably more complex than suspected by Scott, and hence both the geochemical data and modelling require reinterpretation.For instance, the geochemical data contained within Tables 2 and 3 (Scott, 1981) relate to two separate breccia pipes which correspond to the South Cherry and Ardwest ore zones respectively. Although it is probable that both pipes are temporarily identical it is important that the geochemical data be viewed in context. The brecciation is extremely difficult to recognize and it is probable that the chemical compositions given represent mixtures of altered fragments and rock flour, together with material precipitated from solution as matrix, along microfractures, within small vughs, etc.

Jan 1, 1982

By B Cooper

During the design of a new production facility for a greenfields or significant brownfields expansion many design decisions are made driven by an unquestioning objective to achieve 'lowest cash-cost' production costs. In many cases this translates to a design and operating philosophy based on largest-available, single-line equipment. Although acknowledged as an approach that is efficient from an operating cost perspective does this approach always maximise shareholder value? There is an increasing awareness in the mining industry of the value of project flexibility, robustness and value options. The design of a new production facility creates a window of opportunity which should be structured to ensure that project value options and robustness are understood and exploited. This requires the use of emerging valuation methodologies, such as Value-at-Risk and Real Options, as well as tried and trusted NPV/IRR approaches. The paper provides an overview of the basis and application of these less well known techniques in the context of metallurgical plant design. Design guidelines that demonstrate how value options and flexibility can be quantified from both a risk and value perspective are presented. Issues such as use of single versus multiple line equipment, optimum cut-off grade and improved exploitation of the inherent variability of the orebody are also examined. Finally the management issues and approaches to achieving this will be briefly discussed; for example it is common during project development to drive towards increasing certainty as rapidly as possible to facilitate 'accurate' estimation of costs. Understanding and exploiting value options requires a project culture that tolerates, and revels in, ambiguity and uncertainty û something that would make many project teams uncomfortable!

Jan 1, 2008

The purpose of this paper is to outline the equipment used for diamond drilling at Mount Isa, together with alterations and recent improvements therein. As the majority of the drilling is carried out with machines running at relatively high speeds using XRN blast hole bits, the paper is mainly devoted to this branch of drilling.Because diamond bit costs constitute the major expense, a considerable amount of research into bit design has been carried out, and in several instances, costs per foot have shown an appreciable decrease in spite of rising manufacturing costs and higher diamond prices. Equipment performance has at times been erratic due to delays in delivery and occasionally because of faulty parts, but in general the position has improved by keeping in close contact with the manufacturers.BLASTHOLE DRILLING MACHINESThe standard blasthole diamond drill is the 'E-500' two cylinder air powered model manufactured by Mineral Drillers Limited. Several of the older pattern JV41 are still in use, but are being retired as they wear out.. Machines are repaired in the underground diamond drill shop.The normal feed gears used when drilling in lead shales are 350 top gear and 450 low gear-actually 357 and 438 revolutions per inch of advance respectively. The 300 gear was commonly used several years ago, but it was found that bit footages could be increased without any appreciable drop in penetration rate by reducing to the 350 gear. Gears used for copper drilling are 650 and 750. Footage per shift...

Jan 1, 1953

If an orebody has been drilled to achieve some level of regulatory compliance, then a number of associated geological databases will exist, representing 10 000 to 100 000 m plus of core intervals. The databases usually contain data about assays, lithology, mineralisation and geophysical attributes. They will also include location information such as collar positions and downhole surveys. Obviously this data is collected by geologists for, predominantly, geologists and mining engineers. However, from a process design viewpoint process engineers usually ignore the geology where possible and rely on a small number of metallurgical test samples. Typically these test samples are sourced from convenient and available cores or from a small number of specially drilled metallurgical holes. One of the worst instances known to the author was the design of a SAG mill using only two SAG specific test results (one for each of the major ore types) while, geologically, the orebody was defined by more than 30 000 m of drilling. This paper sets out a philosophy to maximise the use of the geological data, both for process design and in preparation for the commissioning phase of projects. Geological data is used in the identification of preferred locations for metallurgical test samples, for checking the metallurgical validity of the geological ore-type definitions, where necessary developing new ore-type definitions (geometallurgical domains) and developing mathematical relationships for the estimation of important metallurgical factors across the geological database. If the estimation of factors (for example ore competence) is considered reliable enough then there is also the possibility of feeding calculated data back into the block modelling process to allow the generation of metallurgically relevant outputs in the mine plans.

Jan 1, 2007

Mr. P. F. THOMPSON said this matter was one of very great importance to producers of lead. His association with the matter was that he happened to be the Institute representative on the Committee of the Standards Association of Australia charged with formulating a standard for chemical lead, that is, lead used in technical chemistry for acid chambers and the like. The British standard had this test incorporated in it, but those on the committee felt that it should not be included in the specification. The main objection was that in an accelerated corrosion test one was endeavouring to do in a few seconds what in natural conditions would take years; and it was now being recognised that such tests were of little value in assessing the corrosive properties of a metal.The flash point test was carried out with boiling hot strong sulphuric acid; but no chemical manufacturer would be likely to use such in contact with lead. There were many factors such as the formation of steam, the chemical reduction of sulphuric acid, the evolution of hydrogen, the catalytic effect of the surface lead, affecting this test, other than the presence of the segregated impurities upon which this test throws the onus of the whole imperfection of the lead. Mr. Russell had shown that lead which had stood the test of time often gave a low flash point. They were endeavouring to find rapid methods of estimating minute amounts of the more important impurities, which would eliminate the labour and expense of a full analysis.Mr. H. St. J. SOMERSET thanked Mr. Thompson for his remarks. He supposed some of those present knew that the Broken Hill Associated Smelters was responsible for Mr. Russell's investigations at the University, and he could only agree with Mr. Thompson that the flash point test, which had been accepted at the present time...

Jan 1, 1930

By D H. Bell

The potential for extracting gravel materials from active floodplain and channel areas has been investigated for three West Coast rivers û the Grey, Inangahua and Whataroa. Studies have focused primarily on resource availability and replenishment, but there are clearly also environmental management issues associated with such a proposal. The potential uses for of extracted materials include roading and concrete aggregates, as well as railway ballast, whilst a major benefit would be in assisting with flood control and channel maintenance in a naturally aggrading system. Sediment movement in the rivers has been examined at three scales; long-term (>100 years), medium-term (10 - 100 years) and short-term (<10 years). Long-term sediment movement is based on geological and geomorphological information, such as cyclic fan development and down-cutting in the Whataroa River where sediment input appears to be largely controlled by Alpine Fault rupture events. Medium-term assessment relied on air-photo interpretations over a period of about 50 years, with the mapping of channel changes and bank migration. Short term changes were evaluated from gauging records and other hydrological data, and took account of the development of an armour layer in these gravel-bed river systems. It was concluded that sediment in the lower reaches of each river was suitable for most aggregate uses, although input of more weathered Greenland Group materials in the upper reaches (eg of the Mawhera-iti or Little Grey) resulted in product that was not satisfactory for sealing chip or railway ballast. Of greater importance was the fact that short-term studies showed that a minimum threshold of flow was required for gravel entrainment, and that significant sediment movement only occurred above the one-year return period flood. Ongoing monitoring of river profiles, with accompanying flow gauging, would clearly be necessary were a substantial increase in river bed extraction to be permitted by The West Coast Regional Council.

Jan 1, 2003