SME Mining Finance 2015 The Use of Technology and Data to Manage and Reduce Cost and Risk and Optimize Mining Operations and Decisions

The case for step change improvement in the mining industry

Boom time returns were driven by price

Lower prices have now exposed a 15 year structural decline in mining productivity

A primary cause is the quality of deposits

Necessity is the mother of invention Step change improvements are needed for long term sustainability and a return to productivity improvement in mining There is no single ‘silver bullet’ innovation like the 1990’s economies of scale Numerous avenues need to be followed and this lends itself to a collaborative approach

Notable past Aussie inventions 1854 Refrigerator 1961 Flight recorder 1926 Pacemaker 1992 Wifi 1961 Ultrasound 1978 Bionic ear 1980 Winged keel 1858 Australian Football 2006 Cervical cancer vaccine 2003 Google Maps 1939 Penicillin 1965 Boxed wine

Seeking step change improvement in mining: The Cooperative Research Centre for Optimizing Resource Extraction (CRC ORE) Government Researchers Mining Companies Suppliers

Five research focus areas, supported by case studies

Example 1: Mogalakwena selective blasting trial Higher blast energy to deliver finer HG material

Example 2: Telfer coarse liberation Ore stream sizing analysis indicates 80% of Au-Cu concentrated in less than 40% of the mass below 20 mm This represents potential Au-Cu upgrade factors of 1.5 to 3 times current feed grade Detailed ore stream analysis identified 4 distinct ore types that respond different in alternative processing circuits (simulated) Modelling of circuits indicates it is possible to increase feed grade and reduce milling energy by up to 30% by classifying feed material early in the process

Next steps The CRC ORE research case studies and trials conducted on mine sites indicate that opportunities exist for step change improvement Doubling grade or reducing costs by ~30% is achievable Individual mine owners will need to assess the business case depending on the level of investment and procedural change, as well as the level of confidence in trial results

Promising innovation avenues Improved orebody knowledge Big data analysis and optimization Exploiting variability Automation and control Smart circuit design Early waste separation Collaborative Global

Acknowledgements