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By Keith C. Hendrick

"Metal prices are frequently the most critical and least predictable element in determining the profitability of mining operations. Short -term fluctuations can be offset in varying degrees by hedging or other market actions. Such solutions are not practical for the longer term, The paper investigates the nature and extent of metal price risks and evaluates methods to reduce them.IntroductionIt is management's responsibility to improve the odds by managing the-risks by identifying them clearly, assessing them accurately, minimizing them where possible-and, then, timing decision s success fully.In determining the profitability of current operations, preparing forward plan s or developing feasibility studies for new projects or expansions, pr ices are usually the most critical input. Being market determined rather than cost based, they can also be the most unpredictable As a result, commodity prices are frequently the greatest of all risk factors.Nature of Commodity PricesThe cyclical nature of commodity prices is well known. They are stable only when supply is in balance with demand and forecast to remain that way. An imbalance on either side of the equation can lead to a price reaction completely out of proportion to the actual or perceived surplus or shortage.This exaggeration arises through the cumulative effect of market forces. When the market senses an uptrend, consumers buy for the expected increase in activity. They also seek additional quantities for inventory before price s rise. Merchants defer spot sales anticipating higher price s, speculators go along for the same reason, and producers raise prices in response to demand. Events tend to confirm the expectation of each party and strengthen their reaction causing prices to move higher."

Jan 1, 1983

The Kelian gold mine which was developed in East Kalimantan Indonesia in 1990 - 1992 is scheduled to complete mining and processing operations in 2004. This will have a major impact on the neighbouring communities who have benefited from the jobs, economic activity and infrastructure development which has been generated by the mine. Currently, there are no formal regulations or standards specifying the procedures for relinquishment of mining leases in Indonesia. Furthermore, a move towards regional autonomy, providing greater authority and responsibility to local (regional) areas, has recently been implemented in Indonesia and limited capacity exists in the new regional governments. Consequently, in October 2000, Kelian Equatorial Mining (KEM) initiated a partnership with the local community and government to explore sustainable post-closure options for the mine site and community development programs. The Kelian mine closure strategy seeks full involvement of all stakeholders through the Kelian Mine Closure Steering Committee (MCSC) in the development of sustainable solutions which will enable communities to secure long-term benefits and minimise post-closure risks from the KEM operations. This organisation, jointly chaired by the Head (Bupati) of the regional West Kutai government and the KEM President Director, with representatives from the local communities, governments and NGOs, has developed a Charter, a website and evaluation criteria to ensure accountability and transparency. There are four technical working groups, consisting of representatives from the mine, local community leaders, NGOs, Universities, Local, Provincial and Central Government Departments, which report to the Steering Committee. These working groups have researched, developed and recommended sustainable options to the Steering Committee. The MCSC has met quarterly to examine options in accordance with the criteria set out in the Charter and has endorsed sustainable solutions which have support from Government, Community and the mine. This paper describes the closure risks, sustainable outcomes derived through the Kelian mine closure steering committee process and outlines the methodologies used to develop and endorse sustainable solutions in a society with limited capacity undergoing enormous change and uncertainty.

Jan 1, 2003

By Willem J. Marais

The management of unpaved mine road networks on large surface mines rarely results in optimal road maintenance strategies and minimised total road-user costs. This is ascribed mostly to the complex and dynamic combination of variable road networks and loading and discharge points. In a dynamic mining environment - typically those mines in which production is managed by a centralised truck dispatch system ? there is no guarantee that a particular road maintenance intervention will contribute significantly to reducing total road-user costs or increasing productivity. Most large surface mines operating ultra-heavy mine trucks rely on an integrated on-board diagnostic data collation, communication and GPS-asset location system as a real-time fleet management tool. By extending this system to incorporate a multi-sensor analytical procedure in which specific truck vital signs are monitored and filtered, a road defect can be recognised and a trigger level set to relay the location of defects on the mine haul road to the centralised truck data management system. Previous work established the feasibility of the multi-sensor approach to road defect recognition on large mine haul trucks, and outlined the defect recognition, analytical and modelling issues and system limitations. This paper presents the development of the analytical procedure used as a basis for evaluating the truck on-board data to establish maintenance priorities amongst a network of mine roads. Following an introduction to the system architecture, the results of system field trials are analysed and the results discussed in the light of defect density and traffic volume as the primary variables in an approach to prioritising road maintenance. The paper concludes that by supplementing the existing mine communication and asset management systems, road maintenance can be managed on a near real-time basis and maintenance equipment dispatched to where most immediate benefit will realised from a maintenance intervention on the network, thereby generating the maximum improvement in service and reduction in cost per ton hauled.

Jan 1, 2008

Accidents in open pit mining have a high cost in lost time of person- nel, damage to equipment and installations, and lost production. The realities of export competition require that Mine Management sig- nificantly reduce the costs associated with accidents and workplace ill-health. Newer management approaches are proving effective in reducing the Total Cost of Risk through a strucured Occupational Health and Safety Programme exhibiting the following features: ò Formal Company Policy ò Accountability for OH&S performance clearly designated to each level of management and supervision ò Effective utilisation of a Mine Occupational Health and Safety Co- Ordinator and a Mine Occupational Health and Safety Adviser ò Development of realistic OH&S Objectives ò Training of Management, Supervision and Workforce in Occupa- tional Health and Safety ò Development and adoption of Safe Work Practices and Procedures ò Effective employee selection procedures, control of Contractors ò Monitoring of the health of the workforce ò Collection, recording and distributing information on all Mine inci- dents, accidents, injuries and damage ò Ensuring that the Mine environment is healthy and safe ò Effective Emergency Procedures to deal with injury, fire, rescue and other situations of risk ò Controlling those Mine hazards which cannot be removed ò Adopting a high standard of Occupational Rehabilitation ò On-going visible Management participation in the programme to ensure that momentum is developed and maintained. This approach requires that Occupational Health and Safety be given equal status with product quality, maintenance of plant and output per- formance; its implementation is rewarded with improved morale and major cost reductions.

Jan 1, 1989

By G D. Cooper

There are no manuals or handbooks for budding mill superintendents or process plant managers. Most who obtain this level of responsibility have gained their training from watching the good and bad of their predecessors and the successful ones have themselves graduated from the school of hard knocks. This paper attempts to provide some helpful guidelines and direction for those who aspire to better manage a mineral processing facility. The authors have 20 years combined experience in senior management roles at nine different mineral processing operations in Australia and overseas, covering gold, base metals and mineral sands. This summary of tips and pitfalls will hopefully benefit future leaders in mineral processing and metallurgy.

Jan 1, 2007

By R. S. Francis

There are no manuals or handbooks for budding mill superintendents or process plant managers. Most who obtain this level of responsibility have gained their training from watching the good and bad of their predecessors and the successful ones have themselves graduated from the school of hard knocks. This paper attempts to provide some helpful guidelines and direction for those who aspire to better manage a mineral processing facility. The authors have 20 years combined experience in senior management roles at nine different mineral processing operations in Australia and overseas, covering gold, base metals and mineral sands. This summary of tips and pitfalls will hopefully benefit future leaders in mineral processing and metallurgy.

Jan 1, 2007

Contractors have penetrated all areas of the Australian mining industry over the last 15 years. The process started in the WA gold and nickel mines and has since spread around the nation to iron ore, base metals and coal mines.The mine contracting industry has progressed from tentative beginnings in the 80s to the current situation where it is now providing high standards of professional management, safety and workmanship with competent people and high quality plant and equipment.

Jan 1, 1998

By P Nissen, T Jenke, M Ralph, M Cattani, M Quinlan

The West Australian Government hold an annual ‘Mines Safety Roadshow’ around the State’s regions and the capital city, Perth. Each year presenters provide an update on legislation and safetyrelated themes. A recurring theme is the mining industry fatality rate. Professor Michael Quinlan’s ‘Ten Pathways to Death and Disaster’ (Quinlan, 2014) has been referenced regularly to assist in structuring workshops and conversations concerning fatality prevention in the mining industry. The ‘Ten Pathways’ are the outcome of an analysis of fatal injuries in the mining industry, which identified a series of common themes to the fatalities: Pathway 1: Design, engineering, technical and maintenance flaws. Pathway 2: Prior warnings or causes for alarm ignored. Pathway 3: Failures in risk assessment. Pathway 4: Failures in management systems and hazard management plans. Pathway 5: Failures in auditing. Pathway 6: Economic pressures compromising safety. Pathway 7: Failures in regulatory oversight and inspection. Pathway 8: Worker and others expressing concern prior to the incident. Pathway 9: Poor management – worker communication and trust. Pathway 10: Emergency and rescue resources and procedures. To determine a fatality risk profile we asked participants at the Mines Safety Roadshows to indicate their perception of their employer’s performance in each of the Ten Pathways. We administered the questionnaire at the Mines Safety Roadshows in 2017, 2018, 2019 and 2023. In this paper, we report on the results of the questionnaires, and suggest how organisations can improve their fatality risk score.

Apr 16, 2024

By H. Warren Newcomen

The southwest wall of the Lornex Pit at the Highland Valley Copper mine has been experiencing slope displacements since 1978. Measures to manage the displacements on previous pushbacks have included stepping out, scheduling pushbacks to unload the crest of unstable areas, slope dewatering and mining with intensive slope monitoring. The final pushback on this wall is currently being mined and substantial modifications to the slope geometry could prove to be uneconomic. As a result, a campaign of surface water collection and diversion, horizontal drainhole drilling and deep well drilling is currently underway to maintain an acceptable degree of stability to the end of mine life. The various factors contributing to instability, including engineering geologic controls, rock mass strength, and surface and groundwater hydrology are presented. Movement trends, displacement magnitudes and stability analyses results are also discussed.

May 1, 2002

By C. S. Maggs, L. Shwydiuk, H. W. Newcomen

The southwest wall of the Lornex Pit at the Highland Valley Copper mine has been experiencing slope displacements since 1978. Measures to manage the displacements on previous pushbacks have included stepping out, scheduling pushbacks to unload the crest of unstable areas, slope dewatering and mining with intensive slope monitoring. The final pushback on this wall is currently being mined and substantial modifications to the slope geometry could prove to be uneconomical. As a result, a campaign of surface water collection and diversion, horizontal drainhole drilling and deep well drilling is currently underway to maintain an acceptable degree of stability to the end of mine life. The various factors contributing to instability, including engineering geologic controls, rock mass strength, and surface and groundwater hydrology are presented. Movement trends, displacement magnitudes and stability analyses results are also discussed.

Jan 1, 2003

By M. C. Baumann

The Getchell Mine is located in Humboldt County, Nevada, approximately 70 km northeast of Winnemucca. Slope management has been a critical factor in the feasibility of mining operations since they began in the early 1930's. Although underground entries began in 1937, underground production was limited because hanging walls consisting of clay gouge and crushed rock tended to collapse into the workings. Controlling these collapses required extensive timbering. Due to these poor ground conditions, surface open-pit mining was the primary mode of production from 1938 to 1967 with only minor contributions from underground operations. Mining was suspended in 1967 due to economic pressures. From 1960 to 1967, the previous operator mined the property in three open pits. Initially, these pits were constructed with footwall benches, but these failed. These failures were aggravated by construction of 60° slopes in footwalls with shale partings dipping into the pit at 43° to 60°, resulting in large planar failures and wedge failures. In response, the previous operator adopted a slope parallel to the bedding planes.

Jan 1, 1993

By L. K. Walker, G. A. Kosick, P. D. Young

"MillEX is an information management system designed by mineral processors for mineral processors. The system utilizes ""cutting edge"" software technology to gather and store all automatically and manually recorded data from the plant operation and laboratories. This data is delivered to the desk of superintendents, metallurgists, technicians and managers, and permits the user to query, correlate, graph, report and present this data in minutes. In the past this task would have taken days and even weeks of tedious work to complete.MillEX allows the engineer/analyst to quickly develop a very thorough understanding of the complex relationships of process variables and equipment that exist in the plant, and their effect on product quality and quantity. The time and resources that are currently wasted on duplicating data entry will be an effort of the past.This paper describes the structure of MillEX and how it conforms to the needs of mineral processing personnel.INTRODUCTIONPicture a personal computer on your desk which will carry out the following commands:1. Plot a graph over the last six months, using weekly averages, of percent minus 200 mesh material in the primary cyclone overflow.2. Overlay this graph with a graph of concentrate grade versus recovery over the same time period.3. Retrieve a prior month end report, update all operating supplies tables and metallurgical performance with this months data, and embed the graphs created above.4. Edit text and print the current month end report. This is only one example of the type of power MillEX isbringing to the mineral processing industry."

Jan 1, 1992

By S. Culp, P. Metcalfe

Web technologies and the Internet have revolutionized the computer industry. The Web browser technologies have also moved to portable devices such as Personal Digital Assistants (PDAs) and mobile phones. This paper looks at how to implement a Web Server solution and addresses some of the inherent advantages in the technology. It will also look at some examples of how plant productivity can be managed with a Web Server approach.

Jan 1, 2002

By R Dunne, S Hart, G Levay

While water represents a major proportion of the mineral pulp processed in flotation circuits, relatively little research effort has been committed to understanding and controlling the influence of water quality on this process. Historically, this probably stems from the perception of water as an inert transport medium. However, the changing attitude towards water as a valuable resource, has given impetus to increasing requirements to use relatively impure make-up water supplies such as treated effluents and a high proportion of internally recycled water. In turn, this has resulted in the need for a more detailed focus on process water quality and its control to minimise adverse effects on sulfide flotation. Along these lines, prior to commissioning of a new concentrator at their Cadia Hill Gold Mine, Newcrest Mining was proactive in examining potential water sources and the influence of water quality on flotation of their copper/gold bearing ore. An extensive water quality survey of all major potential water supplies to the concentrator was undertaken. The flotation performance of the Cadia ore in each of these waters was investigated on a laboratory scale. The results of these studies identified that water quality could indeed have a significant influence on the flotation process. Since operations at the Cadia Hill concentrator began, water quality surveys of both make-up water sources and recycled flotation circuit waters have been carried out on a regular basis. By doing this, a database of water quality has been established which can be compared with plant performance. In parallel with the water quality surveys, a series of laboratory flotation tests have been conducted using a standard ore and waters from various streams to monitor changes in flotation performance as a function of water quality. These tests have indicated that certain water types may have a significant influence on plant performance. More research is required to better understand the impact of water quality on sulfide flotation. This understanding will help operators to minimise adverse effects, while maintaining the best utilisation of available water resources.

Jan 1, 2003

By J. Rafael Otaíza, Francisco Mardones

This work has addressed the problem of creating a predictive model of the maximum particle velocities in the rock mass (PPV). The model designed specifically can model the subsequent vibrations of blasting based on geometric parameters, explosive loading, and the blasting process itself. Models based on artificial intelligence (AI) algorithms can find useful non-linear patterns to solve classification, regression, clustering, among other problems. They are flexible mathematical transformations adaptable to various objectives and types of data. With their different levels of abstraction, they can find a function that relates the input variables to the sought-after response. These models have been successfully used in similar contexts (Prashanth, (2018)) and have achieved state-of-the-art results in the field (Lawal, (2021)). The main challenge is to adapt them to the context of Chilean mines, in addition to including the geometric information of the blasting and the heuristic to obtain the set of optimal parameters, it is proposed to follow the work of (Simonyan, (2013)) and obtain "saliency maps" adapting it to tabular variables. We implemented an Artificial Neural Network (ANN) with a large number of neurons in the hidden layers. Models based on neural networks can find useful non-linear patterns to solve classification, regression, clustering, among other problems. They are flexible mathematical transformations adaptable to various objectives and types of data. With their different levels of abstraction, they can find a function that relates the input variables to the sought-after response. The literature shows that, for the problem of rock type identification, basic neural networks perform well (Simonyan, (2013)), but lack uncertainty estimates. This is a data-driven model, and in this sense, the model training was carried out using data from multiple operations in the large copper mining industry in Chile. In these databases, data consistency and the balance of the various independent variables that have the greatest impact on the model were ensured. With the above, the optimal hyperparameters of the model were determined, obtaining a predictive R-squared of 0.94.

Jan 21, 2025

By J. R. Donald

"Project development has been increasingly formalized in the past decade, with most organizations having extensive and descriptive deliverables documents and processes to govern the stage gate progress of capital projects. Although this has improved the general governance of capital project development and execution, it has perhaps not led to improved business success. This paper identifies specific challenges associated with developing complex projects with multiple stakeholder interests over the long timeframe of the project life cycle. The paper outlines these challenges and suggests management approaches and aspects of project development where increased focus is required to achieve improved business outcomes."

Jan 1, 2015

By C E. Woolley, A Hosseini, J Foster

Northern Star’s Thunderbox Open Pit C-Zone cutback was designed to maximise extraction in a short life excavation; In fresh rock on the western wall this included 20 m to 30 m bench heights with 6.5 m to 10 m berm widths and a 90° pre-split angle. Rock mass quality in this area is generally fair to good, however, there are sections where the dominant foliation runs parallel with the designed pit wall, and more closely spaced, altered, foliation is present: these areas are difficult to predict and prone to failure. Stringent controls and monitoring were required in order to safely access below these areas, in particular the use of slope stability monitoring radar, Trigger Action Response Plans (TARPs), re-entry procedures, visual inspections, drone inspections and day-to-day personnel awareness of the hazard. Robust and comprehensively planned remediation was also required after two significant slope failure events where long reach equipment and rope access techniques were utilised to remediate the areas in question safely, but also in a timely manner, such that expected production targets were impacted as little as reasonably practicable. This combination of rigorous risk management and well planned remediation resulted in a successful and complete extraction of the C-Zone cutback with no impact to operational safety.

Jun 22, 2022

Lafayette Mining Limited, a listed Australian company, is developing a polymetallic Project on the island of Rapu Rapu, located to the east of southern Luzon in the Philippines. The Rapu Rapu Project is based on the Ungay deposit, which has proven and probable reserves of 6.0 million tonnes of 2.5 g/t Au, 28 g/t Ag, 1.2 per cent Cu and 2.1 per cent Zn. The Project will produce copper and zinc concentrates from a sulphide flotation plant as well as dore from a CIL gold plant. Average annual metal production over the projected six-year mine life is 9800 tonnes of copper, 14 000 tonnes of zinc, 50 000 ounces of gold and 590 000 ounces of silver. Despite a rich mineral endowment and long mining history, there have not been any significant new mine developments in the Philippines since the early-1990s. The investment climate has been affected by legal challenges to the 1995 mining code, civil unrest in parts of the country, the impeachment of the previous President and community concerns about the industryÆs environmental performance. As a consequence, the Rapu Rapu Project is viewed as a test case û within both the country and the international mining industry û on whether minerals investment in the Philippines is an acceptable business proposition from a risk perspective. Lafayette has faced formidable challenges in managing the development risks of the Project. The major risk areas of the Project for which the company developed strategies include: regulatory, environmental and approvals issues, technical evaluation, project development, social and community issues, land acquisition, and financial and marketing issues. This paper describes the risk management strategies successfully pursued by the company, and which have the Project on track to commence construction in 2003. Dealing with each of the areas in turn, Lafayette sought to develop strategies which either effectively neutralised, minimised or otherwise addressed the key risks most likely to be experienced.

Jan 1, 2003

Managing project exposure and risk has numerous viewpoints, including those of engineers, owners, bankers and insurers. Fewer stakeholders are involved in early stages, though with wider risk management techniques and tools available. The costs and sometimes benefits of the occurrence of risk and uncertainty have different contingent outcomes for different stakeholders. For some, the impact of risk outcomes can be mitigated or managed. Some sectors and stakeholders can manage resources project risks more completely, by choice or by externally imposed forces, opportunities and constraints. The core to resources project risk management lies in the identification and analysis of project risks, the examination of project management risk options and alternatives, and the determination of which risks are able to be controlled, managed or laid off to third parties. Without prior risk identification and knowledge, the wildcard of previously unidentified or unconsidered project risk impact has the potential for fatal impact to one or more stakeholders. A range of case studies is reviewed, from exploration projects to development and operating projects, with relevant learning experiences, from the risk management lessons available from the oil and gas sector as well as the mining sector. For many cases, the emphasis focuses on the risk analysis modus operandi and on risk management and risk mitigation techniques that can be and in some cases have recently been implemented for resources project and related debt, capital markets and equity project fundings.

Jan 1, 2003

By D. J. Wood

BHP Copper has grown, in just over six years, from a minor participant to the world's largest privately owned copper producer. BHP Copper's major asset is the world's largest copper mine -Escondida in Northern Chile. Ten years ago investing in Chile was considered high risk. Today, Escondida represents an investment of approximately US$2 billion. Reward is the result of managed risk and Escondida is a clear demonstration of both. The Ok Tedi copper and gold mine in Papua New Guinea represents a Rubicon of risk and a retrospective on reward in a developing country on the doorstep of a developed one. The story of these two mines encapsulates risk in the mining industry.

Jan 1, 1998