AusIMM Hunter Branch
JORC CODE Workshop - COAL
(and the Coal Guidelines)
Thursday 6th April, 2017
(From the perspective of financiers and
end-users)
JORC CODE Workshop - COAL
These comments are my perspectives and should not be
taken as representing the position of all end-users or
financiers. Similarly, they should not be taken as being
the view of the University of Wollongong, or its staff.
The comments relate to the modification factors, the
calculation of Estimated and Proven Reserves.
The comments are based on evaluating feasibility
studies for a merchant bank, conducting coal preparation
pilot plant trials, delivering programmes and explaining
terminology to non-technical personnel
JORC CODE Workshop - COAL
1. Not all reports complying with the JORC
Code have equal value.
They’re like students marks in exams. They may all
pass, but some have 50 to 60% and gain a pass, while
some are very good, score 90% plus and gain High
Distinctions.
Reports written in accordance with the JORC Code,
especially for showing Reserves are the same, they
may comply, but they may have little or major benefit,
depending on how well the modifying factors have
been considered.
JORC CODE Workshop - COAL
2. Assumptions
Assumptions regarding the modifying factors lead to
uncertainty and discounting of value from the
investor, or end-user point of view.
Advice is testing, testing, testing, to eliminate, or
minimise assumptions, increase certainty and enduser/investor confidence.
JORC CODE Workshop - COAL
3. Coal v’s Metals
Overwhelmingly, Coal has more variability
and coal quality is determined by a wider
range of both chemical and physical
properties than most metal ore deposits.
JORC CODE Workshop - COAL
4. Coal Quality
Coal Quality is determined by the end-user.
Different end-users place premiums on
different coal properties, so that the one
Coal Resource can have different values
and hence different Reserves, depending
on the end-use customer.
JORC CODE Workshop - COAL
5. Quality – Determined by the End User
GEOLOGY
FEASIBILITY
Locating &
STUDY
Proving
Technical &
the ore
Financial modelling
body
Laboratory batch
and Pilot Plant work
FABRICATION
& JOINING
Producing
a useful
product
SALES
PROCESSING
Shaping and
changing
physical
properties
USAGE
PLANNING &
DEVELOPMENT
CONSTRUCTION
MINING
Mine planning, design
Gaining access to
construction, project
the ore-body
management &
commissioning
REFINING
Adjusting the
composition and
alloying to give
the desired properties
RECOVERY
EXTRACTION
Extracting the
wanted
material
RECYCLING
PRODUCTION
MINING
Removing the ore
from the ground
MINERAL
PROCESSING
Separating the
wanted valuable
mineral from the
worthless rock
JORC CODE Workshop - COAL
6. Limitations of the JORC Code Definitions Metallurgy
“Physical and/or chemical separation of constituents of
interest from a larger mass of material. Methods
employed to prepare a final marketable product from
material as mined. Examples include screening,
flotation, magnetic separation, leaching, washing,
roasting, etc.”
The more widely accepted definition for Metallurgy is
“The making, shaping and treatment of metals and their
alloys”.
JORC CODE Workshop - COAL
7. Metallurgical/Materials Balance
Weight
(t.)
As-mined Coal 100
Clean Coal
70
Coal wash
30
Coal
wt. (t) %
65
65
59.5
85
5.5
18.3
Ash
wt. (t)
35
10.5
24.5
%
35
15
81.7
Yield = 70% Recovery = 91.5% Grade = 15% Ash
Separation Efficiency = 66.7%
Error in the JORC Code: Recovery and Yield are
shown as synonyms, meaning “The percentage of
material of interest that is extracted during mining
and/or processing. A measure of mining or
processing efficiency”
JORC CODE
Workshop
COAL
(From the ACPS Lecture Notes)