Geometallurgy: A review of economic implications for the mining industry in a sustainability driven dispensation

Abstract

• Exogenous and endogenous risks threaten mining industry viability. • Orebody uncertainty amplifies mining company risk exposure. • Geometallurgy contributes to mitigating risk, macroeconomic pressures and enhancing operational efficiencies. • Geometallurgical approaches offer several economic benefits. • Resource, structural and technological factors limit implementation of geometallurgical approaches. Growing concerns around Environment, Social and Governance (ESG) and, the influence of institutional investment pressures, threatens the viability and legitimacy of the mining industry. ESG and investor pressures coupled with ore body variability and uncertainty in the industry contribute to mining industry risk exposure. For mining operations approaching maturity, mechanisms are required to maximise value accretion across the mining value chain. Diligent and purposeful knowledge of an orebody is required in such an effort. In this regard, geometallurgical thinking has long been adopted as an approach to maximise orebody value in all stages of mining projects. The paper begins by discussing ESG and its significance followed by an account of risk in the industry. Several benefits of geometallurgy are described and supported by examples of case studies showing successful adoption in industry. Important considerations are highlighted that have limited a broader adoption of geometallurgy. Considering the exogenous threats attributed to ESG risk, the authors discuss how geometallurgy can be applied to further mitigate mining company risk exposure. Scope exists to reinforce ESG performance. A framework is proposed to support the inclusion of non - quantitative variables associated with each ESG metric in a geometallurgical block model.