MINING IN A MORNING

Mining in a Morning

Dr Elena Clarici
Portfolio Manager, Scipion Mining and Resources Fund,
and
Chairman, Association of Mining Analysts
E: [email protected]
 Mining in a Morning

Aspermont UK Ltd
Publisher of the weekly Mining Journal
(founded in 1835), and organiser of the
‘Mines and Money’ series of conferences
 Mining in a Morning

FORMAT
1. Introduction
2. Geology
Elements / Minerals / Metals
Rocks / Geologic Processes
History / Deposits/ Resources and Reserves

3a. Surface Mining

3b. Underground Mining
4. Processing
5. Economics
Demand / Supply / Costs
Prices and Markets / Industry Structure
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1. INTRODUCTION

We will look at:

• General statistics
• Summary of mining activity
• Overview of the industry’s structure.
 Mining in a Morning

Everything we use is:

Farmed
Fished/hunted, or
MINED.

These are the world's three primary industries.

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ANNUAL GLOBAL OUTPUT

ORE WASTE TOTAL

(Mt) (Mt) (Mt)
Metals Mines 7,000 13,000 20,000

Aggregates* 15,000 0 15,000

Coal Mines 7,000 8,000 15,000

Industrial Minerals 1,000 1,000 2,000

Total 30,000 22,000 52,000

* Very hard to estimate, but US production was 1,500Mt

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TARGET OPERATIONS

World's mined coal and metals production:

Around 90% (by value) is produced by

only 2,000 mines.
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SMALL OPERATIONS

Most of the remaining extraction operations

are relatively small.

These operations are often family or

community run, and rely on local expertise
and second-hand equipment.

Outside our remit.

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VALUE OF ANNUAL
MINED PRODUCTION

Total is some US$3,000 billion:

US$1,100 billion coal/lignite

US$900 billion in metals and gems
US$600 billion cement and aggregates
US$400 billion industrial minerals.
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DEEPEST OPERATIONS

The world’s three deepest mines are

adjoining operations in South Africa:
● Mponeng ('Look at me') = 3,778m
The other two are
● TauTona ('Great lion')
● Savuka ('Wake up').
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Deepest open-pit mine is Bingham Canyon in Utah, at over 1,200m

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The second deepest open-pit is Codelco’s Chuquicamata

in Chile (at 900m), extracting 60Mt/y of copper ore
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SOME OTHER STATISTICS

● Surface/underground ratio = 60:40.

● Surface mines/quarries = 90% of all ore and rock.
● Top ten companies = one-third mined production.
● Exploration = US$11.2 billion in 2010 on non-
ferrous metals (27% in Latin America), vs.
US$8 billion in 2009 (estimated by MEG)
● Over 3,000 stock exchange listed exploration and
mining companies (half in Canada).
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MINING

Coal production = 6,000Mt ‘hard’ and

1,000 Mt lignite.

At prices currently of US$100/t (to

historically US$330/t), coal is easily the
most valuable mined commodity, followed
by iron ore.

The values of the other mined metals are

significantly less.
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MINED PRICE VALUE PA

(‘000t) (US$/t) (US$ bn)
Coal/Lignite 7,000,000 110 770
Iron Ore 2,200,000 140 308
Copper 15,800 8,600 136
Gold 2.54 52,860,000 134
Nickel 1,400 19,250 27
Zinc 12,000 2,080 25
PGMs 0.38 48,200,000 18
Bauxite 200,000 60 12
Diamonds 0.032 350,000,000 11
Lead 4,000 2,122 8.5
Sub Total 1,450
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GOLD

Annual production is some 2,540t (almost 82Moz).

Chinese output is around 9.6Moz, with Australia
in second place on 7.0Moz, and the US and South
Africa in equal third place on 6.7Moz (Note:
South African output is barely 25% of its
production in the early 1970s).
The other leading producers are Russia (5.9Moz),
Peru (5.7Moz), Canada (3.2Moz), Indonesia
(3.2Moz), Ghana (2.7Moz), Uzbekistan (2.7Moz)
and Papua New Guinea (2.0Moz).
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HISTORICAL GOLD

Total of under 200,000t ever mined.

Half of this is contained in stocks that can

still be identified.

Because of its high density (over 19t/m3),

this total mined amount could fit into a cube
with sides of 21m.
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Garimpeiro miners
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TWO EXTREMES

BHP Billiton’s Ekati mine

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NUMBERS GAME

100,000 exploration licences per year.

Recent estimates (for the leading 3,000 companies):

• 5,000 drilling projects
• 1,000 reserve-definition studies
• 600 feasibility studies, and
• 300 mines under construction.

Large companies dominate the processing sector.

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INDUSTRY BALANCE

Gold and diamonds are relatively simple to mine,

transport and trade (and so attract the juniors).

There are many more press releases on gold and

diamonds than the mined value would suggest.

Larger companies dominate ore production, and

they control the most important mines.
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LARGEST OPEN-PIT MINES

SURFACE MINE COUNTRY OWNERS METAL ORE (Mt, 2008)
1 Morenci SX-EW US FCX, SMM, Sumitomo Cu 108.0
2 Codelco Norte Chile Codelco Cu 100.0
3 Carajas (N System) Brazil Vale Fe 96.5
4 Hamersley Australia Rio Tinto Fe 95.6
5 Yanacocha Peru Newmont, Buenaventura Au 92.6
6 Escondida Chile BHP, Rio, Mitsubishi, IFC Cu 89.5
7 Round Mountain US Barrick, Kinross Au 74.7
8 Toquepala SX-EW Peru Grupo Mexico Cu 74.3
9 Grasberg/Ertsberg Indonesia FCX Cu 70.6
10 Chuquicamata Chile Codelco Cu 60.0
11 Radomiro Tomic Chile Codelco Cu 54.2
12 Robe River Australia Consortium # Fe 50.2
13 Los Pelambres Chile Antofagasta Cu 49.9
14 Bingham Canyon US Rio Tinto Cu 49.1
15 Lebedinsky Russia Metalloinvest Fe 47.6
# Rio Tinto, Mitsui & Co, Nippon Steel and Sumitomo

Source: Raw Materials Group

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LARGEST UG MINES

U/G MINE COUNTRY

MAIN CONTROLLED ORE
METAL BY (Mt, 2008)
1 El Teniente Chile Cu Codelco 45.0
2 Kiruna Sweden Fe LKAB 27.5
3 Zhezkazgan Kazakhstan Cu Kazakhmys 24.1
4 Impala South Africa PGM Implats 15.9
5 Malmberget Sweden Fe LKAB 15.4
6 Palabora South Africa Cu Rio Tinto 12.5
7 Rudna* Poland Cu KGHM 12.0
8 Manitoba/Ontario Canada Ni Vale 10.5
9 P-S Complex# Poland Cu KGHM 10.5
10 Rustenberg South Africa PGM Anglo American 10.0
* KGHM's three mines (Rudna, Polkowice and Lubin) count as one operation
# Polkowice-Sieroszowice

Source: Raw Materials Group

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MOST VALUABLE METAL MINES

COUNTRY TYPE OWNER VALUE (%)
1 Carajas (N system) Brazil Fe OP Vale 1.95 1.95
2 Hamersley Australia Fe OP Rio Tinto 1.93 3.88
3 Escondida Chile Cu OP Consortium (1) 1.57 5.45
4 Robe Rover Australia Fe OP Consortium (2) 1.02 6.47
5 Oktyabrsky Russia Ni UG Norilsk Nickel 0.99 7.46
6 Yandi Australia Fe OP BHP Billiton 0.94 8.40
7 Grasberg/Ertsberg Indonesia Cu OP-UG FCX 0.89 9.29
8 Itabira Brazil Fe OP Vale 0.85 10.14
9 Area C Australia Fe OP BHP Billiton 0.80 10.94
10 Minas Centrais Brazil Fe OP Vale 0.76 11.69
11 Mariana Brazil Fe OP Vale 0.73 12.42
12 Codelco Norte Chile Cu OP Codelco 0.73 13.15
13 Antamina Peru Cu OP Consortium (3) 0.73 13.87
14 Manitoba/Ontario Canada Ni UG Vale 0.71 14.58
15 Sishen SA Fe OP Anglo American 0.69 15.27
1. BHP Billiton, Rio Tinto, Mitsubishi and IFC
2. Rio Tinto, Mitsui, Nippon Steel and Sumitomo Met
3. BHP Billiton, Xstrata, Teck Cominco and Mitsubishi
Source: Raw Materials Group
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EXAMPLE METALS USAGE

Content of average Mobile phone

car (2006) (by volume)
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And now …

GEOLOGY
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2. GEOLOGY
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GEOLOGY

CONTENTS
● Elements, minerals and metals
● Rocks and geological processes
● History of discovery
● Mineral deposits, resources and reserves
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EARTH’S BUILDING BLOCKS

● Elements Smallest particles (eg Si)

● Metals Elements that are malleable (eg Cu)
● Minerals Chemically-bonded elements (FeO)
● Rock Solid mass of minerals (eg granite)
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ELEMENTS

Substances that can not be subdivided into

simpler forms.

Characteristics (and groupings) based on:

● Atomic number /weight
● Physical and chemical properties.
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METALS

● Any class of solid substance (including

elements) that are:
- Malleable (ie they can be moulded)
- Lustrous (in general)
- Fusible
- Ductile
- Good conductor of heat and electricity.

● Good examples are copper, lead and gold.

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METAL CATEGORIES

● Precious Resistant to weathering (Au, Ag)

● Base With acid to form salt (Cu, Zn)
● Ferrous Affinity with iron (Cr, Co)
● Non-ferrous No affinity with iron (Al, Mg)
● Speciality Exotic properties (Cd, Hg)
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PRECIOUS EXAMPLE: GOLD

Crustal abundance: 0.004ppm

Uses: Monetary, ornamental,

electronics

Sources:
Native (nuggets)
Pyrite etc (microscopic)
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BASE EXAMPLE: COPPER

Crustal abundance: 55ppm (ie 0.0055%)

Uses: Wiring, piping, coinage, alloys

Sources:
Malachite, Chalcocite, Chalcopyrite
Native
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FERROUS EXAMPLE: IRON

Crustal abundance: 5.6%

Uses: Equipment and building

construction (95% world’s metal)

Sources: Haematite,
Magnetite, Pyrite
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SPECIALITY EXAMPLE: SILICON

Crustal abundance: 28.2%

Uses: Electronics, alloys

Sources: Quartz, Flint, Jasper

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ALLOYS

● Mixture of two, or more, chemical elements,

at least one of which is a metal.
● Examples:
- Bronze (Cu + Sn)
- Brass (Cu + Zn)
- Steel (Fe + C)
- Stainless steel (Fe + C + Cr).
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MINERALS

Elements that bond together chemically.

Examples: Bauxite (Al2O3.2H2O)

Chalcocite (Cu2S)
Chalcopyrite (CuFeS2)
Iron oxide (FeO)
Chromite (FeCr2O4)
Ilmenite (FeO.TiO2)
Rutile (TiO2)
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MINERAL PROPERTIES

Quartz, galena
● Colour / streak and siderite
● Hardness
● Density
● Magnetism
● Radiometric
● Crystal form
● Fluorescence

Fluorite
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MINED MATERIALS

● Metals As already listed

● Industrial minerals Salt, limestone, marble
● Energy minerals Coal, oil, gas, uranium
● Gemstones Diamonds, rubies
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AGES OF DEVELOPMENT
Stone Age Stone and flint tools
Copper Age Chalcolithic age
c. 5,000BC copper smelting in
Anatolia (Turkey)
c. 4,000BC UG copper mining at
Rudna Glava (Serbia)
Bronze Age Copper-Tin alloy from 3,500 BC
Iron Age Higher temperatures required,
from 1,500 BC (inclusion of
carbon for steel from 1,100 BC)
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ROCKS

Rocks (hard or soft) are combinations of minerals,

and can be characterised by how their constituent
elements have combined. The main rock groups are:
● Oxides Elements bond with oxygen
● Silicates “ “ “ “ and silica
● Carbonates “ “ “ “ and
carbon
● Sulphides “ “ “ sulphur (eg FeS2)

Note that soil and sediments are eroded rock.

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ROCKS

As pebbles:
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ROCKS

Or strata:
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ROCK TYPES

● Igneous Cooling of magma

● Sedimentary Eroded
● Metamorphic Subsequent physical change

Also:
● Overburden Blanket of soil, gravel and/or
clay formed by recent weathering
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GEOLOGICAL PROCESSES

IGNEOUS SEDIMENTARY METAMORPHIC

Granite Sandstone Marble

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1. IGNEOUS ACTIVITY

INTRUSIVE EXTRUSIVE
Underground Surface lava
Cools slowly Cools fast
Large crystals Small crystals
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IGNEOUS DEPOSITS
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2. SEDIMENTARY ACTIVITY

Banded layers
of sediment
(eroded from
earlier rocks to
form new
strata).
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3. METAMORPHIC ACTIVITY

Subjection of existing rock to

high pressure and temperature.

Contact metamorphism

Regional metamorphism
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DEFORMATION STRUCTURES

Compression and
extension forces in the Faults
crust affect all types of
rock.

Folds Veins
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Mountain-building periods
are called ‘Orogenies’.

Deposits centred on
ancient ‘shield’ areas:
● Archaean (4.6-2.6bn)
● Proterozoic (2.6-0.6bn).
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MINERAL DEPOSITS

‘Deposits’ are concentrations of minerals. Grades are

crucial to the likelihood of economic extraction.

Typical grades:
● Base metals Parts per hundred (eg 3% Cu)
● Precious metals Parts per million (eg 3g/t Au)
● Diamonds Parts per 100 million (3ct/100t)
eg US$200/ct = US$6/t mined
If 1ct stones = one every 33t.
 DEPOSIT CLASSIFICATION
Process Category Metals/minerals
Igneous Magmatic segregation Cr, Ni, Fe, Ti,
Volcanic-hosted massive sulphides (VHMS) Cu, Pb, Zn, Au, Ag
Sedimentary exhalative (SEDEX) Cu, Pb, Zn, Ag
Hydrothermal veins Ag, Au, Cu, Pb, Zn
Porphyry deposits Cu, Mo, Au, Re
Pegmatites Be, Sn, Ta, Li
Sedimentary Placer/palaoeplacers Au, Pt, Sn, ilmenite, rutile, zircon
Evaporites Halite, sylvite, borax, gypsum
Marine sediments Fe, Mn, phosphate, limestone
Hydrocarbons Coal, oil, gas
Metamorphic/ Skarns W, Cu, Sn, Pb, Zn
Replacement Orogenic Au, W, talc asbestos
Replacement Pb, Zn
Weathering & Gossans Au, Ag
Groundwater Laterites Ni, Al
Movement
Roll-front U, V
Mining Waste Waste rock dumps Au, Ag, Cu
Process plant tailings U, Co
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ORE DEPOSITS

Economically-recoverable mineral
accumulations.

Size (tonnage or volume) varies with the

project’s economics, therefore revenue and cost
assumptions need to be included in any
announcements. This will incorporate the
assumed metal price and the likely recovery
factor, usually expressed as a cut-off grade.
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RESOURCES / RESERVES

Resource1 Inferred Evidence of mineralisation

Indicated Initial drilling
Measured Tonnage calculated
Reserve2 Probable Higher level of confidence
Proven Well understood grades, etc
1 Form, quality and quantity such that there is a ‘reasonable’
prospect for eventual economic extraction
2 Economically-mineable part of measured resource. Includes
realistically-assumed factors (mining, metallurgical, economic,
marketing, legal, environmental, social and governmental)
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RESOURCE STATEMENTS

Category Tonnage Gold Copper Contained

(‘000t) (g/t) (%) Gold (‘000oz)
Inferred 50,000 3.0 1.9 4,700
Indicated 5,000 2.9 1.9 450
Measured 500 2.7 2.2 40

Data will need to take account of:

Cut-off grade (eg 0.3g/t Au) and price assumption (eg $1,000/oz)
Mineralogy (for processing), and other influences on costs.
 EXPLORATION STAGES

Geochemistry – Drainage and soil sampling, gas tests

Geophysical – Magnetics, electromagnetic, gravity, resistivity,
radiometric and seismic.
 EARLY STAGE EXPLORATION

Early stage exploration requires the

amalgamation and interrogation of many
different data sources to aid prospectivity
analysis and targeting.

• Historical geological maps

• Geochemical / geological sample data
• Infrastructure and landforms
• Tenement boundaries
• Geophysical or satellite imagery
Source: © MICROMINE (UK) LTD
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Core drilling
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DRILLING ANALYSIS
 DATA ANALYSIS
•Surface and subsurface data is input into modeling packages
- Surface pits, trenches and channels
- Shallow RAB (Rotary Air Blast) drilling
- Medium depth Percussion/RC (Reverse Circulation) holes
- Deep diamond core holes

• Geologists work in cross section and long

section to examine zones of open
mineralisation at depth and along strike in
order to plan drilling campaigns.

• The environment is easily manipulated into

3D, and oblique off shoots are more easily
spotted.
Source: © MICROMINE (UK) LTD
 GEOLOGY MODELLING
• Geologists plot varying
compositions of lithology,
alteration, mineralisation, assay,
and structural data to interrogate
zones of mineralisation.
• The sectional interpretation is then
linked together in 3D by
wireframing.
• Valid 3D solids are then generated
to represent the ore zones, faults
and rock types of the deposit.
• Zones are then separated into
domains according to weathering
extent, mineralisation style, phase,
grade etc

Source: © MICROMINE (UK) LTD

 FINDING ADDITIONAL RESOURCES

Additional resources can be

identified from an existing
deposit by the use of
integrated data and 3D
visualisation

Resources are also added

by using more modern
and suitable estimation
methods such as ordinary
kriging and multiple
•? indicator kriging

Source: © MICROMINE (UK) LTD

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EXAMPLE SECTION
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BEFORE AND AFTER

Initial Infill drill

drill results
results
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AND NOW TO ... MINING

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3. MINING
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MINING DEFINED

Mining = Extraction of valuable material.

Most of what we use must be fashioned from
material that is mined.

There are essentially four main types of mining:

• Wet-mining and dry-mining on the surface
• Underground mining and insitu mining.

Also now Marine mining – seabed ore extraction

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1. SURFACE MINING

Surface mines <400m.

Cut-off depends on the

economies of surface v
underground methods.
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SAFE ANGLES

Stripping ratio:
• Depth
• Shape of orebody, and
• Wall angle.

Safe wall angle:

• Type of rock
• Number of fractures
• Water seepage, etc.
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DENSITIES

Coal - 1.3 t/m3

Earth (dense) - 2.0 t/m3
Granite - 2.6 t/m3

Broken rock is usually between 50% and

70% of the insitu density.

Bulking factor = increase in volume

from the solid state to broken material.
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OVERBURDEN REMOVAL

Bucyrus
(Marion)
dragline in
Colombia.
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BUCKET-WHEEL EXCAVATOR

Sandvik machine:
weighs 1,650t, has
16 buckets and can
shift 6,700m3/h
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SURFACE MINING

Involves either Wet or Dry mining.

Two types of the latter:

Open-cast = 'soft' commodities (eg coal)
Open-pit = 'hard' commodities (eg copper).
The mining process is fundamentally different
between these soft- and hard-rock operations.
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1.1 OPEN CAST MINING

Grade does not change significantly, and the operation is
generally configured to maximise equipment efficiency.
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WHEEL
LOADERS

Softer rocks can be

recovered directly
using very powerful
excavators.

This Komatsu loader has a

bucket of 20-35m3.
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LOADING PROCESS
A typical loading
process is shown by
this Caterpillar
pairing: a 992K
Wheel Loader
and 777F truck.
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1.2 OPEN PIT

Hard-rock deposits: smaller

and more varied than for
the soft-rock minerals.
Operations are typically
much more constrained.
 PIT OPTIMISATION
• Once the resource geologist has finished the block
model, it is given to a mining engineer to begin
the process of design and optimisation of pit shells.

– Optimisation incorporates the

economics related to the project such
as cost of mining ore per tonne, waste
mining cost per tonne, processing
recovery, pit slope angles, processing
cost per tonne, commodity price etc.

– After running an optimisation a pit

shell is produced that encloses the
economic blocks and excludes the sub
economic blocks.

– The shell is used as a guideline to

design a pit
Source: © MICROMINE (UK) LTD
 PIT DESIGN

• Once you have your optimised pit shell, the

engineer then starts to design the pit,
including ramps, access, infrastructure etc.

• The pit area is divided into subareas with

different slopes angles

• Geotechnical data provides guidance on

design of pit slopes for different rock types
or areas with cleavage or bedding that pose
a higher risk of failure.

• A block model and the optimum pit shell

as used as guidance for designing pits
bench by bench. Source: © MICROMINE (UK) LTD
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ARGYLE
DIAMOND
MINE,
AUSTRALIA

Configuration designed to maximise recovery

of the metal, rather than to maximise equipment
efficiency. Complex shapes.
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EXTRACTION PROCESS

Metals mines: extraction process involves

drilling and blasting, rather than digging (as for
soft rocks).
Drilling of the holes for explosives is similar in
appearance to exploration drilling but no need
for measurement and is much shallower (<50m).
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PRODUCTION DRILLING
Drilling power: rotary and/or hammer action.

Atlas Copco's Pit

Viper rotary rig at
Chuqicamata in
Chile.
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DRILLING TECHNIQUES

Outside holes undercharged, and fired first.

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DRILLING
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LOADING

Broken ore is lifted onto either trucks or conveyors

for transportation to the processing plant.

This lifting is usually done by:

• Excavator:
Electrically or hydraulically powered, and
Shovel or backhoe configuration

• Wheeled Front-end Loader.

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FRONT-END LOADER

A popular front-end loader is the Caterpillar 994.

Note the chains
that are being
used to protect
the wheels.
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HYDRAULIC EXCAVATOR

Two main configurations:

Backhoe and Face shovel.

Liebherr R9800 backhoe;

weighs 780t and has
bucket sizes of 38-42m3.
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SHOVEL EXCAVATOR

This Terex RH400

excavator, working
in Alberta, has the
more usual shovel
configuration.
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MATCHING EQUIPMENT

Ideal: 3-5 passes.

Komatsu 960E
truck and P&H
2800 electric
rope shovel.
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SIZE MATTERS
Komatsu 930E3 (used without drivers for a
period at the Radomiro Tomic copper mine).
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1.3 WET MINING

Two main types:

Sluicing (hydraulic mining) - powerful water
jets (monitors), sluices and pumps.
Dredging - buckets or suction-cutter heads
used to extract material from shallow-water
ponds.
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UNDERSEA & SHORE MINING

De Beers has mastered the technique

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SURF ZONE

In the surf zone and in shallow water, De Beers uses the Jet
Rig (below left) and Seawalker (below right).
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OTHER SURFACE EQUIPMENT

Graders, compressors,
generators, hydraulic
breakers. Tyres crucial.
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OTHER TRANSPORT

Conveyors ubiquitous, some quite sophisticated.

UNDERGROUND MINING
U/G
MINING

Source: Atlas Copco

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CONVENTIONAL U/G MINING

Typical layout.

Shaft always in
the footwall.
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FINSCH DIAMOND MINE

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UNDERGROUND ACCESS

Vertical shafts and/or by inclined roadways (called

ramps or adits). Usually two access routes (one for
fresh air, men and materials; and one for exhaust air
and the ore).
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U/G STRUCTURES

Ore tunnels =
temporary, support
less substantial.

Layouts can
quickly get
complicated (eg
Kiruna iron-ore
mine in Sweden).
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DRIVING TUNNELS

The driving of tunnels is usually

highly mechanised eg this
Canadian RDH 100 Drillmaster.
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EXTRACTION TECHNIQUES
Room and Pillar (Bord and Pillar)

This method is
mainly used for
the mining of
soft-rock, flat,
orebodies.
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ROOM AND PILLAR

Method lends itself to mechanised extraction but to

maximise efficiency the pillars need to be 'robbed'.

The method is also best for minerals of relatively

low value as removal of too much of the pillar is
dangerous.

Video (#1).
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ROOM AND PILLAR

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CONTINUOUS MINERS and

ROADHEADERS (for soft rock)

Roadheaders - Ranging arm with a cone-shaped cutting

head.

Continuous Miners - wide cylindrical drum(s), which

has only an up-down motion (as photo).
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LOAD-HAUL-DUMP

LHD vehicles are popular because of their versatility.

Sandvik's
2500
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EXTRA LOW PROFILE

Height <1.2m = XLP equipment, eg Atlas Copco’s

Scooptram
ST600LP (on
Anglo Platinum's
Watervaal mine
in South Africa).
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LONGWALL MINING

For flat or shallow-dipping strata, in both soft

and hard-rock mining. However the extraction
method and equipment is radically different.

Face:
• Between two parallel roadways
• Width = 80-300m
• Length = Up to 3km in length.
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LONGWALL – Advance and Retreat

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LONGWALL BENEFITS

Advantages:
• High rates of resource recovery
• Little permanent roof support required
• Minimal manual handling, and
• Relatively safe.

Disadvantages:
• Expensive initial cost, and
• Surface subsidence can be considerable.
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LONGWALL – Material Flow

Roadway: Maingate and Tailgate

Void: Goaf, Goff or Gob.

Air flow travels up the Maingate,

along face and back down Tailgate.
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Powered
Roof
Supports
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Joy
Mining’s
61t
monster.
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STOPING
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STOPES v LONGWALLS

Stopes <1.5m in height and highly labour intensive.

 Mining in a Morning

STOPE MECHANISATION

Lonmin's Hossy chromite

mine - Sandvik LZ100L
low-profile dozer (below).

Sandvik DS110L roof

bolter (above).
 Mining in a Morning

BLOCK
CAVING
Orebody is
predominently
vertical.
Mine
schematic
ADD TEXT
 Mining in a Morning

PRODUCTION DRILLING
Production drilling can be highly automated, as in
this system provided by Cubex Ltd.

Sub-level
Caving Video #2
 Mining in a Morning

SHRINKAGE STOPING

Generic term to describe the process of mining

upwards, leaving broken rock in the excavation
as a working platform.

Broken ore is drawn through ore-passes but the

extraction is regulated such that the upper level
of the material acts as a floor for drilling.

The method is used for irregular-shaped

orebodies.
 Mining in a Morning

SHRINKAGE STOPING
 Mining in a Morning

TRANSPORTATION

Ore Passes
Effectively
vertical
tunnels.
 Mining in a Morning

ORE COLLECTION

Ore collected directly from ore passes using a

shutter system, or lifted from the floor using
load-haul-dump (LHD) vehicles.
Transportation to the shaft (or incline) can be by:
• Conveyor
• Train, or
• Truck (rigid-frame or articulated).
 Mining in a Morning

NARROW-SEAM HAULAGE
Low-profile trucks include this Bucyrus Ramcar coal hauler at the
GDK5 room and pillar mine in India. The unit has a 20t payload
and can be powered by a diesel or electric engine.
 Mining in a Morning

Feeder / Breakers are often used in soft-

rock mining as the interface between
the mobile extraction equipment and the
fixed conveyor system, as in this
Stampler unit.
 Mining in a Morning

OTHER TRANSPORT

Men and materials can also be conveyed to the shaft

(or surface) by train, truck or conveyor.

Some mines also assist their workers in walking up

inclines by providing moving ropes.
 Mining in a Morning

STORAGE

Ore separated from the waste at the earliest

opportunity.

'Run-of-mine' is used to describe the ore as it

emerges.

Although some of the waste rock can be

stored underground most has to be taken to
the surface.
 Mining in a Morning

Storage: FAM installation at BHP

Billiton's Spence copper mine in Chile.
 Mining in a Morning

And now to PROCESSING !

Mining in a Morning
4. PROCESSING
 Mining in a Morning

PROCESSING

Mined material is not normally readily

saleable.

Processing: valuable commodity

separated from the surrounding gangue
(or uneconomic) material.
 Mining in a Morning

SELECTION PROCESS

Depends on:
• Input (run-of-mine, ROM) material
• Required final product.

Final product: ore concentrate to

high-purity metal

Concentrate = Mills (focus of this seminar)

Primary metal = Smelters/Refineries
 Mining in a Morning

PROCESSING OVERVIEW

Milling:
• Crushing/grinding (or liberation)
• Concentration
Smelters and Refineries
• Metals recovery
Waste storage
 Mining in a Morning

1. CRUSHING / GRINDING

Initial stages usually involve a reduction in the size

of the ore from boulders to particles.

The work will incorporate:

● Primary Crushing (eg Jaw Breakers)
● Secondary Crushing (sometimes)
● Grinding (normally using Ball Mills).
 Mining in a Morning

FLOW DIAGRAM

Typical flow of ore

from blasting through
primary crushing to a
Semi-Autogenous
Grinding mill.
 Mining in a Morning

PARTICLE LIBERATION

Designed to maximise the surface area

that will come into contact with
subsequent chemical processes.

Primary crushers: integral part of the

storage arrangement, and usually located
close to the operating mine. Most basic
type is the Jaw Breaker.
 Mining in a Morning

SECONDARY CRUSHERS

Might include a Cone Crusher or Double Roll Crusher.

ThyssenKrupp
double roll
crusher at an
oil-sands mine
in Alberta.
 Mining in a Morning

SCREENING

Measurement required of
the resultant particle sizes.

Vibrating screens are almost

always used, with the
smaller particles falling
through the calibrated holes
and the larger material This image is of
being recycled. an Assinck unit.
 Mining in a Morning

MATERIAL FLOW

Water and/or chemicals added post

screening to ease the flow of the material
as it enters the grinding circuit.

The ore will be passed through one or more

Ball Mills or Rod Mills. These are rotating
cylinders where the ore is broken down by
impact with itself and steel balls or rods.
 Mining in a Morning

AUTOGENOUS MILLS

Rock-only
(Autogenous) mills
are sometimes
used where the ore
is easily broken
and steel balls/rods
need not be added.
However, Semi-
Autogenous
grinding is more
normal.
 Mining in a Morning

2. CONCENTRATION

Series of processes that concentrate the ore by

removing waste material.

Where the ore has to be transported a

considerable distance, this concentration will
occur at the mine site rather than at the
processing operation.

The final product will typically be a pregnant

solution containing 20-40% metal.
 Mining in a Morning

CONCENTRATION EXAMPLE

Mount Tom
Price iron-
ore mine in
Australia.
 Mining in a Morning

JIG

Alljig unit,
manufactured
by allmineral.
 Mining in a Morning

Inspection
ANOTHER JIG hatch
Feed

This jig unit is an

in-line, high-recovery,
gravity device from
Gekko Systems. It ‘Cut’
uses air rather than points

water.

Hydraulic
cylinder
 Mining in a Morning

FLOTATION CIRCUIT

Involves treating the ground ore in a bubbling mixture

of water and chemical reagents.

Mineral particles:
• Maintained in suspension by surface tension forces
• Adhere to gas bubbles and float to the surface
• Metal-containing froth is skimmed off, and the
chemicals removed.

Waste:
• Adhere to the water and sink.
 Mining in a Morning

FLOTATION REAGENTS

Reagents alter the surface properties of

minerals, and make the mineral particles either
water-avid or water repellent.

These reagents may be broadly classified as:

• Collectors
• Depressants
• Frothers, and
• Modifiers.
 Mining in a Morning

FLOTATION CELL DESIGN

Shape depends on the required retention

time and the level of aeration. Rectangular
cells possible if volume < 85m3.

Larger volumes require circular cells.

High-grade ore requires a greater 'surface

area to volume' ratio (ie shallower) to
maximise recovery.
 Mining in a Morning

FLOTATION DYNAMICS

FLSmidth
installation at
Freeport-
McMoRan's
Cerro Verde
mine in Peru.
 Mining in a Morning

DIAMONDS ARE DIFFERENT

Diamond-recovery processes are able to draw on

two unique properties of the stones:
• Diamonds tend to adhere to certain organic
compounds, and this property can be used for
recovery on Grease Tables.
• With a few exceptions (eg some kimberlite
deposits in northern Australia), diamonds
fluoresce under X-ray.
 Mining in a Morning

TREATING IRON ORE

Magnetic Separator: Treatment of iron ore.

Water is added to ground ore, and the solution

passed over a revolving magnetic drum.

This concentrate is usually too fine to be used

in a blast furnace (for iron recovery), so is
mixed with a bonding agent and rolled into
marble-sized iron-rich pellets (and used for
making steel).
 Mining in a Morning

HEAP LEACHING

Simplest, and cheapest, processing method, and

can make even low-grade gold ore is economic.

Involves percolating a cyanide solution through

mined rock that is stacked in mounds on a
polyethylene liner.

Dissolved gold is collected in channels

underneath and the pregnant solution passed to
a smelter. Recovery only around 75%.
 Mining in a Morning

Pipeline mine
in Nevada

Image by Dave Schumacher, and

extracted from the Geo Mine Info
website
 Mining in a Morning

3. METAL RECOVERY

Method depends on:

• Ore type
• Grade
• Product required, and
• Access to power/water.
There is a difference between methods employed in the
recovery of base metals and precious metals.
Recovery of copper, zinc, nickel etc is more complex than for
gold, silver and platinum because the base-metal ores
invariably contain sulphide minerals, which are difficult to
separate.
 METALS RECOVERY

There are essentially two main types of metals

recovery; utilising either liquids or heat.

HYDROMETALLURGICAL PROCESSES
Two main recovery methods for gold:
• Cyanidation
• Carbon-in-pulp
 Mining in a Morning

GOLD: CYANIDATION

• Ore reduced in size, and cyanide added.

• Lime introduced to maintain alkalinity for
subsequent precipitation processes.
• Slurry pumped to air-agitated tanks.
• Pregnant solution filtered and clarified.
• Solution contains anionic gold cyanide.

Merrill-Crowe method: zinc dust added to

precipitate gold from solution. Resulting
suspension filtered and passed to smelter.
 Mining in a Morning

GOLD: CARBON-IN-PULP

CIP recovers precious metals by simultaneous

dissolution and adsorption onto 'activated' carbon
in an agitated slurry tank.
Gold-pregnant solution is produced by washing the
carbon granules with a strong solution of sodium
hydroxide and sodium cyanide.
Gold recovered onto steel-wool cathodes by
electrolysis before refining (as in the Merrill-
Crowe process).
 Mining in a Morning

OTHER HYDROMETALLURGICAL
PROCESSES

Hydrometallurgical (ie leaching) processes can be

used to create many other metal-rich solutions.

Solvent-extraction Electro-winning (SX-EW) is a

popular method. Involves the recovery of metal
from the leach solution by special organic solvents.

Loaded solution then treated with suitable chemicals

to recover the copper either in solution or precipitate
form. The metal can then be recovered by
electrolysis.
 Mining in a Morning

The plant at
Collahuasi is a
good example
of an SX-EW
design.
 Mining in a Morning

OTHER LEACHING METHODS

High-pressure leaching
Innovation in treatment of lateritic nickel.

Bacterial leaching
Thiobacillus ferroxidans breaks down
sulphide minerals and generates sulphuric
acid (which, in turn, dissolves the metal into
solution as a sulphate or sulphide).
 Mining in a Morning

PYROMETALLURGICAL
PROCESSES

These processes utilise:

• Smelters, and
• Refineries.
 Mining in a Morning

SMELTING

COPPER EXAMPLE (BLISTER)

• Concentrate fed into Roaster - yields a calcine.
• Fluxes added, and calcine put into Reverberatory Furnace.
• Gangue minerals form various low-melting minerals.
• These poured off as slag.
• Copper matte poured into Converter (with reducing agents).
• Remaining iron oxidised and bonds with fluxes to form slag.
• Residual sulphur burnt off.
• Copper reduced to a product that is over 98% Cu.
 Mining in a Morning

REFINING

With the exception of aluminium, refining is

the final stage in the processing of metals.

For most metals, a smelter is used to create a

metal matte, which is then refined to near
100% metal.
 Mining in a Morning

ALUMINIUM

This metal is the exception, in that refining

comes before smelting.

The mined bauxite is ground and mixed with

caustic soda to form a slurry. This is treated
in a refinery to recover alumina trihydrate,
and then smelted to produce aluminium.
 Mining in a Morning

COPPER REFINING

• Copper from the smelter is formed into anode sheets and

placed in a tank of copper sulphate in the refinery.
• Electric current is passed from these anodes to cathode
sheets of pure copper.
• Copper passes from the anode to be deposited on the
cathode, which is subsequently melted down and cast.
ISA PROCESS (patented by Xstrata) - used in more than
35% of the world's copper-refining operations.
The technology is used to bypass complex processes by
utilising permanent stainless-steel cathodes in electro-
winning applications.
 Mining in a Morning

4. WASTE HANDLING

The waste material from the processing plant is

usually transported to a tailings dam, although
they are sometimes dumped at sea.

There are various types of tailings dam but (to

reduce costs) the retaining walls are generally
built with either the waste product itself or with
material that is available locally.
 Mining in a Morning

TAILINGS DAMS

Will typically incorporate:

• Containment or toe wall
• Drainage system
• Delivery system
• Decant system
• Stormwater diversion system
• Return-water system
• Ancillary system of access roads and a
power supply system.
 Mining in a Morning

SURFACE WASTE DISPOSAL

Includes consideration of:

• Dam sizing, siting, design and operation
• Legal and environmental regulations.

Factors in dam location include:

• Distance from the processing plant
• Elevation of the dam relative to the plant
• Access
• Hydrology
• Geology
• Visual impact, and
• Land usage.
 Mining in a Morning

Conventional Tailings Impoundments

Downstream, centreline and upstream designs

Upstream
embankments
are the most
popular,
accounting
for 60% of
the total.
 Mining in a Morning

AND NOW ... ECONOMICS

Mining in a Morning
5. ECONOMICS
 Mining in a Morning

ECONOMICS OF AN INDUSTRY

DEMAND Commodity Consumption

SUPPLY Availability and other factors
COSTS Determining factors, and importance
MARKET Price determination

INDUSTRY STRUCTURE
 Mining in a Morning

1. DEMAND

Consumption is mainly for properties,

rather than intrinsic worth.

Substitution available for most

commodities.

Demand inelastic (to price) in short term,

but more responsive in longer run
 Mining in a Morning

DEMAND INFLUENCES

Population Economic structure

Geography Technology
Transport Fashion / Social trend
Availability Government regulations
Income levels Prices
 Mining in a Morning

2. SUPPLY

Determinants of supply (and costs):

Ore grade Type of mining

Ore content Technology
Location Depletion
Input prices General economic factors
Scale of operation By-products and inventories
 Mining in a Morning

CHANGES IN CAPACITY:
COPPER MINES
4000

3000

2000
'000 tonnes copper

1000

0
1973-78 1978-83 1983-88 1988-93 1994-99 1999-04 2004-07
-1000

-2000

-3000
New m ines Expansions Closures Reductions

-4000
Sources: 1973-93 Rio Tinto, 1994-2007 IWCC
 Mining in a Morning

3. COSTS

Influences (similar to supply) include:

Ore grade Scale of operation

Ore content Type of mining
Location Technology
Input prices By-products
 Mining in a Morning

RISING COSTS: COPPER

180

160

140
US cents per pound of copper

LME price
120

100
Ninth decile
80

60
Median

40
Lower quartile
Upper quartile
20
Source: Brook Hunt Associates C1 costs
0
1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005
 Mining in a Morning

4. PRICES and MARKETS

● Balance between supply and demand

● Costs
● Nature of product
● Recycling
● Economic activity
● Inventory movements
● Exchange rates
● Confidence and speculation
 Mining in a Morning

NATURE OF ‘COMMODITIES’

● Standard specifications and

grades
● Common prices
● Concentration on relative costs
● Little control over demand
● Widely produced and used
● Little or no after-sales service
 Mining in a Morning

SPECIALITY PRODUCTS

● Variation in grades and specifications

● Product tailored to specific uses
● Chemical / physical characteristics vary
● Technical services very important
● Delivery schedules important
● Competition in non-price aspects
● Processing is important part of success
 Mining in a Morning

PRODUCT LIFE CYCLES

YOUTH: MATURE:
New technology Technology accessible
Few producers Many producers
High barriers to entry Barriers depend on ore
Specialised end use Diverse markets
Attractive profits Range of cost structures
Producer controls price Pricing more complex
 Mining in a Morning

INFLUENCES ON RECYCLING

End uses
Technology
Product life
Regulation
Recovery rates
 Mining in a Morning

LME PRICES v STOCKS: ZINC

1400 5000

4500
1200
4000
Prices
1000 Stocks 3500
LME stocks '000 tonnes

Prices US $/tonne
3000
800
2500
600
2000

400 1500

1000
200
500

0 0
1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008
 Mining in a Morning

OUTPUT v PRICE: ALUMINIUM

40000 10

9
35000

8
30000

US$/lb in real 2007 terms

7

25000
'000 tonnes

20000 5

4
15000

3
10000
2
Prices
5000
1
Output
0 0
1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000
 Mining in a Morning

INFLATION (REAL PRICE): COPPER

450

400

350
LME
US cents/lb in real 2007 terms

300

250

200
US producer
150

100

50

0
1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000
 Mining in a Morning

PRICING MECHANISMS

● Producer pricing Certainty, stability

● Negotiated prices Can work if few players
● Cartels Collusion, supply boost
● Terminal markets Reference price, hedging
 Mining in a Morning

5. INDUSTRY STRUCTURE

Factors influencing each sector:

● Number of producers
● Level of corporate diversification
● Main or by-product
● State involvement
● Regulatory restrictions
● Barriers to entry
● Nature of end uses
● Concentration of production
 Mining in a Morning
SHARE OF TEN
LARGEST PRODUCERS
90

1975 1985 1990 1995 2000 2007

80

70

60

50
percent

40

30

20

10

0
Bauxite Aluminium Copper Mine Copper Zinc Mine Zinc Smelter Nickel Mine Gold Iron Ore
Refinery
Source: Raw Materials Group
 Mining in a Morning

AND THIS IS WHAT IT IS ALL ABOUT!

 Mining in a Morning

THAT’S IT ... THANKS