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By R. Luchese de Moraes, J. A. Matthews, C. Feliciano Bruzual

The role of biomass char in blast furnaces has been re-examined by scientists worldwide, as a feasible option to reduce the carbon intensity of ironmaking. This contribution makes a technical and economic analysis of the ferro gusa industry in Brazil, with the last 172 charcoal-Blast Furnaces operating in the world. A key strategic question is presented: what is the current status and future prospects of biomass use in Blast Furnaces? Findings provide significant implications to metallurgists: while ferro gusa from charcoal is regarded as carbon neutral iron with low impurities, there are limiting factors that hinder the further proliferation of charcoal-BFs: biomass generation requires vast extensions of arable land and aggregates have low production capacity. Additionally, most of the charcoal is presently generated in beehive kilns with low yields. These elements combined make charcoal-hot metal expensive in price. With respect to the future prospects of biomass, the injection of small biochar particles through the PCI rigs in BFs (here coined Bio-PCI) and iron ore sintering may offer a practical alternative to significantly reduce the CO2 emissions in the ironmaking process.

Jan 1, 2015

By L. A. Updegraff

Before discussing the application of capacitance for the measurement of moisture content in a moving stream of coal it might be well to first give a brief description of the process and then show how it can be applied to the coal industry. A capacitor may be described as a device having two conductors separated by an insulator, the conductors hereafter being designated as a test cell or test plates and the insulator as the dielectric. Capacitance, therefore, is a measure of the ability of a capacitor to store an electrical charge. Two basic factors that affect capacitance are the dimensions of the capacitor and the dielectric constant of the insulator. Capacitor dimensions which affect its capacity are the area A of the conductive surface, and the distance d between plates. Capacitance is inversely proportional to the distance between plates and directly proportional to area A, so if capacitance is indicated as C and the dielectric constant as K the equation for capacitance would be C = AK/d. The dielectric constant can be described as the ratio of the actual capacitance of any given material to that of a vacuum, which is unity. In industrial applications the area of the plates remains constant as also does the distance between them, leaving the dielectric constant as the only variable to affect the capacitance measurement. Figure 1 is a schematic diagram of an r-f excited capacitance bridge in which a test cell is part of the circuit. This bridge consists of four capacitors in two pairs connected across an a-c voltage source. In one side of the circuit the two capacitors are fixed but in the other side they are variable, one being the rebalance capacitor operated by the servo motor and the other the test plates between which the dielectric passes. Capacity of the plates is a function of the dielectric constant of the material between them and is measured at radio frequency. Within the recording instrument is an r-f oscillator and a 60 c ps modulator. The radio frequency signal is generated by the oscillator, modulated by a 60 cps wave, and sent to the bridge. Therefore the signal entering the capacitive bridge is a radio frequency carrier with a 60 cycle envelope, If the bridge is in balance as the signal enters there would be no voltage drop and so no output by the detector. As long as the dielectric constant remains the same the bridge will stay in balance. However, any change in the dielectric constant, which in this case would be a change in moisture content, would affect the bridge. Higher moisture increases the capacity of the test cell which causes less voltage to develop across it causing imbalance of the bridge. This in turn causes a radio frequency signal to appear at the detector. Output from the detector is a 60 cycle ripple which is in proportion to the imbalance of the circuit. A 60 cycle amplifier boosts the detector signal to enough power to drive the servo motor which positions the recording pen and also rotates the variable capacitor, to which it is mechanically connected, to bring the bridge back in balance. An increase in moisture causes the servo motor to rotate in one direction, but a decrease causes imbalance in the opposite direction, and thus rotates the motor in that direction. This brings the bridge back in balance and stops the motor. The bridge shown in Figure 1 has been modified so as to provide a wide range of adjustments. Coarse and fine span adjustments located in the recording instrument are set to govern the amount of pen movement for a given change in capacitance. A measuring head unit contains coarse and fine zero adjustments for

Jan 1, 1961

By Eric Lutz

"Great effort has been expended for more than 40 years to improve the workplace safety and health of surface and underground miners across the United States. When looking at the past decade, withstanding the 2010, Upper Big Branch (UBB) disaster that took the lives of 29 miners, this effort has resulted in a generally decreasing trend from 57 fatalities (22 coal; 35 metal/non-metal) in 2005, to 45 (16 coal; 29 m/ nm) in 2014. Through August of this year, there have been 23 mining-related deaths (eight coal; 15 m/nm). These results reflect continued diligence and perseverance on the part of miners that stay true to our legacy; and demonstrate significant investments from mine-site leadership, mining corporations, and state and federal regulators. However, over the past five years there have been an average of 32 fatalities per year, with a low of 36 (2011 and 2012) to a high of 45 (2014). If we know that there will be somewhere between 30 and 50 mining related deaths next year, which of us will volunteer to be counted as one of the numbered? Clearly, we all agree that one fatality is too many; and as evidenced by changes following UBB, deaths in any sector are deaths reflective of all mining across all sectors.The impact of each miner death touches us all. Miner’s deaths are felt deeply by family and friends, most significantly the children; their communities in which they served, supported, and worshiped; and by society that has lost a hardworking, dependable contributor. Further, to take a slightly cynical, but realistic view, miner fatality events impact the financial vitality of mining and contracting companies and broadly diminish investor confidence. Just as important, these events significantly impact our communities and result in negative public perceptions, which ultimately drive regulatory policy and related compliance pressures. This resulting pressure forces operations to broadly address safety and health gaps in very specific ways (i.e., see U.S. Mine Safety and Health Administration (MSHA) regulations regarding lids for trash cans) minimizing a mine site’s opportunities for operational flexibility. To break this cycle that is the operational reality, mining companies are focusing tremendous efforts on fatality prevention and specifically on dedicated investment to prevent multiple fatality events."

Jan 1, 2015

Bubble Load Measurements in Flotation - A Critical Review of Current Practice

Sep 13, 2010

By N. B. Aughenbaugh

This report summarizes the results of an investigation into the causes of coal mine roof instability caused by the environmental characteristics of the air ventilated through a mine. The field studies, which were mostly in the Illinois Coal Basin, concentrated on collecting data of surface weather conditions, mine air characteristics (relative humidity and temperature), roof material types, roof movements, and characteristics of roof deterioration. The field studies revealed seasonal changes in weather are reflected in the mine air. The intake air undergoes rapid tempering along its course as it interacts with the ambient mine conditions. There are seasonal moisture interchanges between the mine rock and air, and a mine will lose more water than it gains on a yearly basis. The field studies also established that when the roof rock is shaley, seasonal changes in the humidity will cause roof deterioration because of the detrimental action of moisture on the shale. Roof falls were inventoried and classified by geometry. In the laboratory investigations, physical tests proved unreliable for evaluating shales for roof stability. The Franklin slake test lacks the sensitivity needed to differentiate shale durability for roof stability. A relative humidity test that reveals the sensitivity of a shaley rock to moisture change was devised. Environemntal chamber studies showed that neither temperature nor barometric pressure have a direct influence on shale durability. Photoelastic studies showed that the rate and depth of moisture absorption into a shale is controlled by bedding planes, fractures, and holes interrupting the exposed surface.

Jan 1, 1976

By O. Naiker

Xstrata has modified and improved on the solid state reduction of chromite (SRC) process that was pioneered by Showa Denko in Japan and previously used at Xstrata?s Lydenburg plant. The history of pre-reduction is a long one, with the SRC process being the first and only commercially successful one prior to Premus. Krupp developed the chromite direct reduction and the rotary hearth for the pre-reduction of chromite. However, these processes have not been successfully commercialised. The are a number of significant differences between Xstrata?s patented Premus and the original Consolidated Metallurgical Industries (CMI) process. These include, the use of lower cost anthracite fines as the reductant source together with the use of unactivated bentonite as the binding agent. In addition the use of oxygen as an energy source is used in Premus but not in the original CMI process. There was a fundamental change in the operational philosophy of the process in that while the original CMI process aimed to maximize metallization of the pellets, the Premus process seeks to maximize the energy output from the kiln while still achieving the required efficiencies and hence increasing furnace output. Premus is designed to reduce electrical energy consumption, provide high recoveries of metallic oxides, and utilizes low cost reductant and energy sources such as anthracite and oxygen respectively. Due to the fact that Premus is one of the most technologically advanced and competitive processes used today in the production of ferrochrome it was the process selected for Xstrata?s new ferrochrome facility, Project Lion, that is due to be commissioned in the third quarter of 2006 in the Steelpoort Valley in Mpumulanga, South Africa.

Jan 1, 2007

By Fred D. Wright, Philip B. Bucky

FOREWORD By E. D. Gardner[$] THE present known petroleum reserves are limited, and unless important new fields are discovered the Nation will be dependent, in the not too distant future, upon imports or upon synthetic liquid fuels to supplement domestic petroleum supplies. As a national defense measure, it would appear desirable to develop a substitute source of liquid fuels within the borders of the country if new discoveries of petroleum should prove disappointing. Congress undoubtedly had this in mind when it passed the Synthetic Liquid Fuels Act (78th Congress, approved April 5, 1944). The act directed the Bureau of Mines to construct and operate demonstration plants for producing synthetic liquid fuels from coal and oil shale, and from forestry and agricultural products. As a part of this program, the Bureau of Mines has built a demonstration plant at Anvil Points, near Rifle, Colo., for retorting the oil shale, and has developed a mine to supply the plant with oil shale. At the beginning of mining operations, the physical qualities of the oil shale, which would have a bearing upon the selection of mining methods and practices for exploiting the deposits, were largely unknown. A comprehensive mining-research program has been set up to determine the best methods and practices to follow to obtain the lowest overall practicable mining cost for producing the oil shale on a large scale. Unusually low mining costs will be necessary for shale oil to be produced commercially. Consideration now is being given to exploiting a series of flat-lying beds 70 ft thick by a room-and-pillar method of three benches with the advance heading at the top. This report is one of a series giving the results obtained in research on mining problems. INTRODUCTION The structure and physical qualities of the oil shale indicate that the 70-ft interval of the oil-shale measure can be safely mined in open stopes; studies indicate that this method would be the most economical one to use.1 As labor will be a major item of expense, the largest equipment that could be operated efficiently in the workings would be required to obtain the lowest practicable mining cost. It was therefore desirable to know the maximum safe span of unsupported rooms and the size of pillars necessary to support the overburden. This paper describes the work done at the Columbia School of Mines Barodynamic Laboratory in determining the maximum safe unsupported roof spans and the minimum safe pillar dimensions for the oil-shale mine at Rifle, Colo.

Jan 1, 1947

By Douglas A. Anderson

Mine the Internet? You bet. Precious information resources are there to be found by those willing to explore. Of course, the stratigraphy and the exploration tools must be learned. This article is is designed to help learn those tools and how to find the information that can help the reader. However, beware the Internet. It can be addicting. On the other hand, information can be found that you never suspected. And users can make contact with people who might otherwise never have crossed their paths.

Jan 1, 1996

By Ali Porbaha

The use of soil nailing technology as a cost effective alternative for excavation support and slope stabilization has substantially increased in the United States during the last decade. For example, in the past thirteen years, more than 185,800 square meters of soil nail walls have been constructed in California alone. The conventional soil nail systems pose difficulties when ground conditions are subject to caving, for instance for silty sand (sugar sand) or cobbles and boulders. The construction industry has developed self drilling hollow bar systems (or pressure injected bored, IBO) that combine both drilling, placing and grouting in a single operation as a solution to speed up construction. While the system is extensively used for temporary applications, nevertheless, some concerns, particularly about corrosion, has limited the use of this technology as a permanent system in North America. This study presents several issues related to self drilling soil nail systems, the results of a field investigation and a summary of the research project.

Jan 1, 2006

By V Poizat

In different parts of the world the term epithermal is commonly used for a variety of deposit styles. Using the redox state of the ore-forming fluid (inferred from mineralogy and alteration), the metal assemblage of deposits, and other characteristics, at least five different styles of epithermal deposit can be distinguished. Most of these different deposit styles appear to be related to magmatic fluids, with differences resulting from different compositions of source magmas. The most common style of epithermal deposit (low-sulfidation gold-silver deposits associated with calc-alkaline volcanic rocks) remains the most difficult to explain; the metals in these deposits may be derived by basement leaching without magmatic input, or they may come from magmatic volatiles, with contaminated I-type or S-type magmas as the most likely source.

Jan 1, 1995

By Marco Jáuregui, Alexander Benites

El presente trabajo técnico nace de la necesidad que tenía Minera Yanacocha de ubicar los sectores más importantes para la realización de sondajes diamantinos, los cuales ayudarían a la confirmación o adición de nuevos recursos para el proyecto Chaquicocha Subterráneo, así como para establecer la línea base para operar la futura mina. Así, el objetivo de este trabajo es explorar diferentes técnicas de construcción de portales y falsos túneles en dicho proyecto, en la búsqueda por reducir el tiempo de construcción, la exposición al riesgo de los trabajadores y el costo de las construcciones.

Sep 20, 2019

By N. O. Lotter

The reliability of a set of flotation results is key to minimizing project risk either at concentrator commissioning, or at the point of implementing an improvement to an existing concentrator operation. High-Confidence Flotation Testing was developed for this purpose, and is part of the list of technologies of various scales used by Xstrata Process Support (XPS) in addressing these projects. The methodology is based on two principles: one, to ensure that the ore sample is representative and has been well-blended and subsampled; two, to perform the flotation tests in sufficient numbers of replicates with appropriate quality controls, so as to improve the reproducibility of the test data. Across ten years of practice and continuous improvement with this methodology at Xstrata Process Support, Sudbury, several improvements to this method and complementary connections into sampling and quantitative mineralogy have been developed. Two case studies are reviewed. These show the capability of this system in both optimizing an existing concentrator operation and in serving a new mine scenario. Further work to improve the efficiency of this procedure has been identified.

Jan 1, 2009

By Ranajit Kumar Sahoo, Shatrughan Soren, Surendra Kumar Biswal, Soumya Sahoo, Sachida Nanda Sahu

The presence of appreciable quantity of clay mineral in Indian hematite ore needs an attrition technique using screw scrubber in the beneficiation circuit to remove the ultrafine clays and avoid downstream operational problems. Spectroscopic analysis revealed that iron ore samples obtained from the Barbil region of Odisha contain a high amount of silica and alumina in the form of clay minerals (e.g., kaolinite) contributed as a loss on ignition (LOI) in the iron-making process. Iron ore fines of below 10 mm size were subjected to a laboratory-scale screw scrubber, and the effectiveness of scrubbing as well as the pelletization of the scrubbed product was investigated. The screw scrubber in the beneficiation circuit helps to remove the clay minerals, causes an increase in iron values from 63.65% Fe(T) to 66.18%Fe(T), with improved physical (CCS of 325 kg/pellet) and metallurgical (RDI of 2.24%) pellet properties.

Aug 31, 2020

By R. G. Burdick, W. R. Peters

Shallow underground voids resulting from early coal mining and other resource recovery activities over the past several decades are now being recognized as a significant cause of ground subsidence problems. Uncertain knowledge of abondoned coal mines also imposes potential hazards in current underground mining operations, since water inundation or the release of methane gas is a serious hazard when mine excavation operations break into an abandoned mine. Requirements for detecting and mapping subversive manmade tunnels in previous work has led to the development of a surface-operated automatic earth resistivity survey system and associated computer data reduction process for military applications. Field demonstration tests of this system have resulted in successful detection of tunnels at depth-to-diameter ratios greater than 10 to one. Under the sponsorship of the Bureau of Mines, a similar high-resolution earth resistivity system was designed and constructed for use as a potential means of detecting abandoned coal mine workings. The hardware and software aspects of third new system are described together with applications of the method for surveying and mapping abandoned coal mine workings. Field tests are presented to illustrate the detection of both air-filled and water-filled mine workings.

Jan 1, 1984

By Daven N. Compton

The optical properties of Au nanoparticles have been known for some time, with both Au colloids and Au nanoparticles embedded in glasses having been extensively studied. In this study, Pt nanoparticles have been incorporated into Au colloids, and the linear and non-linear optical properties investigated. UV-VIS spectrophotometry, fluorescence spectroscopy and the z-scan method have been used to examine the effects of such additions.

Oct 1, 2003

By Elizma Ford, Vincent Sithole

"Two shortened test procedures for estimating the Bond ball work index are compared for suitability of use on Zambian/DRC-type copper–cobalt ores. The first procedure is based on a batch milling test while the second procedure is based on a limited locked-cycle test. Both procedures were conducted using a standard Bond test mill. INTRODUCTION The Bond ball work index is widely used in the field of minerals processing as an indicator of ore grindability. The work index is determined by means of a locked-cycle test procedure that typically requires seven to eight cycles to stabilise at a re-circulating load of 250%. A typical test requires between three to four kilogram of ore sample and around eight hours of operator time. For geometallurgical test work applications, where a large number of variability samples are to be tested, it would be highly beneficial to use a test procedure that requires less sample mass and operator time. Certain test work laboratories, for example SGS and JK Tech, are already offering various types of shortened test procedures for estimating the Bond ball work index. This paper discusses a comparison of two shortened test procedures that were evaluated for suitability of use on Zambian/DRC-type copper–cobalt ores. EXPERIMENTAL Test Procedure 1 – Batch Milling The first test procedure is derived from a batch milling approach proposed by the University of Hacettepe (Aksani, 2000). Some modifications were, however, made to the data analysis method from that originally proposed. During this test procedure, a 700 mL volume of sample is milled in a standard Bond test mill for a pre-determined number of revolutions. The feed and product particle size distributions are measured for each test. These results are then used to back-calculate a cumulative breakage rate parameter (k) for each particle size, according to the following formula:"

Jan 1, 2015

By Verya Nasri

The proposed Second Avenue Subway Project in New York City is approximately 8.5 miles long, up to a depth of 120 feet beneath grade and runs the length of the eastern side of the island of Manhattan from Harlem in the north to the financial district in the south. It will reduce overcrowding and delays on the existing parallel line, improving travel for both city and suburban commuters, and upgrading access to mass transit for residents of the East Side of Manhattan. This subway line will have 16 new stations providing transfers to the existing Metro-North commuter rail service and to New York City Transit subway lines and bus services. The first phase of construction includes two TBM rock tunnels 2.4 miles long and two new large and shallow rock cavern stations with clear span openings ranging from 70 to 100 feet and length in excess of 1000 feet with 615 feet center platform, coupled with low rock cover ranging from 20 feet to 40 feet. The design methodology for these large and shallow rock caverns consists of using well known empirical methods for initial estimate of support requirements and then two and three dimensional continuum and discontinuum analyses for verification of the selected excavation sequence and support system. This paper describes the analysis and design methodologies used for the two large and shallow rock caverns with insight into how to overcome the design complexities and construction challenges of the urban underground.

Jan 1, 2008

By Jerry T. Shelby

Surface and underground mining operations require equipment with high power output ratings. Haul trucks, loaders, dozers, and other equipment need increasing horse-power to meet production demands. To get more horsepower out of the engines driving the equipment, most manufacturers use turbocharging. Detroit Diesel puts the number at about 90% turbocharged, while Caterpillar estimates 75% to 80% of all its equipment is turbocharged. Turbocharging increases the power output and overall engine efficiency. But it presents some maintenance and operational problems that were not factors when only naturally aspirated engines (nonturbocharged) dominated the scene. A turbocharger is an exhaust-driven air compressor. Using the waste energy in the engine exhaust, a turbine wheel is driven. This wheel is connected by a common shaft to a compressor wheel. The shaft is supported by two plain bearings, or bushings. As the turbine wheel is rotated, the compressor wheel continually compresses the intake air to the cylinders. Compressing the intake air means that more air can be put into the cylinder to burn more fuel. The more fuel the engine can completely burn or combust, the more horsepower the engine can produce. Even though the turbocharger is a relatively simple device, it is a sensitive engine component. It requires special consideration at engine start-up and shutdown. Being freewheeling and exhaust driven, turbochargers can experience temperatures of 540°C 1000°F) and rotational speeds of more than 100,000 rpm. Due to those temperatures and speeds, lubrication is critical to the operation and life of a turbocharger. The turbo is located high on the engine, with the oil supply running through an external line from the sump. The recommended practice is to start the engine and allow it to idle for a few minutes before any revving or loading. This allows the oil to reach the turbo and properly lubricate the bearings before high rotational speeds are seen. Turbo oil supply lines can be as long as 1.5 m (5 ft). Depending on ambient temperatures and oil viscosity, it can take as long as 30 seconds for oil to reach the spinning turbo. However, as little as five seconds without oil can damage the turbo's bearings, reducing its life and overall efficiency. Lubrication problems seen at shut-down can also significantly affect turbo life and efficiency. Manufacturers recommend an idling period of five to seven minutes before engine shutdown. This allows the turbo to slow down and cool off somewhat to help prevent oil coking and bearing damage. When the engine stops, so does the oil supply. There is very little oil left on the bearing surfaces and in the turbo oil supply passages. The immediate heat transfer from the turbine wheel to shaft, bearings, and turbo body literally cooks what is left. This high heat without oil flow can cause bearing deformation by actually melting some of the bearing material. The rapid oil oxidation and coking will restrict oil passages, damage bearings and shaft. Besides heat soaking, there is another problem. If the turbo is spinning at high speeds when the engine is shutdown, the turbo must spin-down to a stop without oil flow. With the large size of turbos used on mining equipment, this spindown time without oil can be for as long as 10 to 20 seconds. Fortunately, lack of lubrication at start-up and shutdown and the subsequent bearing damage can be prevented by oil injection devices. These devices hold a reservoir of engine oil. The oil is injected to the turbocharger bearings immediately on start-up and for several minutes after shutdown. Oil injection devices are spring loaded, hydraulic accumulators. They are actuated at start-up by a solenoid wired to the starter motor. Engine oil pressure charges the accumulator during normal operation. Upon shut-down and loss of oil pressure, the device provides oil to the turbo for about two or three minutes. With an oil injection device, the engine can be started and immediately driven without fear of turbo damage. Also, an abrupt shutdown will not damage the turbocharger since the device will continue to lubricate for two or three minutes. A word of caution. Be sure the oil injection device provides positive oil displacement (pressurized oil flow). Do not use a gravity-flow device. Unless it is a true accumulator, the device could starve the turbo for oil on start-up, Ask for start-up and shut-down pressures and delivery times before considering installation. Keep the oil clean, and follow the manufacturer's recommended oil change intervals. These intervals are usually shorter than with naturally aspirated engines. Use oil with a CD rating designed for diesel applications. A multiviscosity oil is preferable. Use a synthetic engine oil, such as Mobil's Delvac 1, Gulf's Super Duty II, or Chevron's Sub-zero Fluid. Synthetics have much better flow properties at low temperatures. They also have greater oxidation stability (they can take the high heat of turbo-bearing lubrication. And they produce fewer deposits because they are more thermally stable. But synthetic oils do cost more - two or three times more. One additional point - maintain the air intake system. Since all mining is usually in a dusty environment, air filters should be changed regularly and intake systems should be checked for leaks. All intake air passes through the turbo. Any dirt or abrasives entering the turbo will damage the unit and shorten its life. While mining is a heavy duty business with severe operating conditions, you can get the life from your turbocharger that you expect by following a few simple steps: • equip the turbo with an oil-injection device to provide lubrication on start-up and shutdown; • change the oil and filters regularly; and • use the proper oil-synthetic, if possible.

Jan 3, 1987

By Eddy Valencia, Miguel García, Edgar Contreras

Anglo American Quellaveco S.A. (AAQ) ha implementado un centro de control geotécnico con monitoreo en tiempo continuo 24h/7d incorporando tecnología basada en interferometría de apertura real y sintética, lo cual permite tener total cobertura de todos los taludes expuestos del tajo y poder identificar movimientos precursores y su evolución durante los trabajos de extracción. Con la incorporación de este sistema y las mejores prácticas de monitoreo, como discriminar errores en las lecturas, identificación de anomalías atmosféricas y escogiendo periodos de cálculos adecuados, se obtienen datos de calidad que representan el comportamiento tendencial, las magnitudes de deformación y velocidad, permitiendo obtener datos de calidad para la aplicación de pronósticos de falla acertados

Sep 29, 2023

Resources and reserves are critical inputs into the determination of an operating mineÆs financial results and balance sheets, but how well understood is this fact. Do the investors, directors, accountants and geologists/engineers responsible for preparing or relying on relevant aspects of the end results properly understand the inputs and outputs and the associated risks that may be established. The first step is to understand how financial reports are impacted. The most obvious, and best known, impact is in the calculation of depreciation and amortisation charges against long term assets. In addition, however, there is a requirement to regularly determine whether asset book values are impaired û this is nearly always performed globally by the preparation of a discounted cashflow model for a mine which is usually based on a mine life as determined from the resource and reserve statement û the particular driver here is normally the short and long term production plans. A key aspect of the short term production plan is that it would normally not assume that the reserve and resource statement implies consistent grade, stripping ratios, etc. However, outside of the early years of a plan, more generic assumptions of these variables are often made in conjunction with the reserve and resource statement. Depending on the timeframe of the detailed production plans, this can have a large impact on a projectÆs net present value. Other financial balances that may also be impacted include restoration and rehabilitation provisions, retrenchment provisions and deferred or equalisation stripping accounts. The age old question of whether all reserves should be used or whether some or all of the resources should be included for financial reporting purposes has never been adequately resolved. It is our view that there should be no prescriptive answer to this question but judgement of all professionals involved in the process needs to be included. Furthermore, the company needs to be able to support their conclusions with well thought out and appropriate answers. This may not be in line with the approach that certain accounting standard setters may be proposing or taking, and this paper will outline the current status of global requirement and the likely future directions. Whether reserves or resources are utilised, does not change the key requirement that those preparing or using reserve and resource statements need to understand key aspects. For example: geologists/engineers do they know how reserves or resources will be used? have they imparted information on variability of key drivers such as grade or depth or dilution? do they know that major financial/business altering decisions may be made based on the analysis? accountants do they understand where the numbers have been derived from and the assumptions that may have been made in their determination? do they understand the degree of accuracy (or inaccuracy) that may exist particularly with resources)? do they understand the history of resource reconciliations and what it may mean for the future? directors do they understand the processes undertaken by the company to prepare the financial report and the interaction between the geologists/engineers and accountants? do they understand the potential sensitivity of results to the input variables? Financial reporting is extremely reliant on the use of the reserves and resources, however, the geologists/engineers, accountants and directors do not always understand the interactions between themselves which may lead to misleading public reporting. More education and communication between various parties is needed.

Jan 1, 2002