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All companies and individuals who embark on a business venture incur costs. For the most part these costs can be conveniently categorised, firstly into capital and operating costs and then into the various elements of these major cost centres. Although the nature of expenditure naturally differs as between industries certain broad cost types are characteristic of all heavy industries. The capital costs of gaining access to an orebody, equipping a new mine, building a treatment plant and perhaps refining and smelting facilities are likened to capital expenditure by a manufacturer on new plant and equipment required for an expansion or new product innovation. Similarly the day to day costs of labour and materials employed in the running of a mining operation can be likened to similar costs in other heavy industry. There is another group of costs that are not so easily categorised. Most industries incur unavoidable costs that do not form part of the direct or capital costs of physical production. These costs include taxes and other payments to government and research expenditure. The mining industry has a particularly heavy burden of non-production costs and it is the objective here to highlight and analyse a few of them. These costs are exploration expenditure, infrastructure expenditure, royalties and income tax. This is not to suggest that these are the only major non-production costs that the mining industry needs to bear. The industry may incur significant costs for environment protection, land tenure maintenance and on liaising with Government on a wide variety of matters. It is for reasons of subject manageability that the list is confined to the four costs mentioned. For the mining industry, exploration and infrastructure expenditure, royalties and income tax have several distinguishing features. Firstly, they are generally proportionately large costs. Exploration and infrastructure expenditure for example, could well exceed mine development costs. Depending on how royalties are levied, they may be very high in relation to profits earned and many in fact exceed profits. Secondly, except for income tax, they are costs that are generally not payable by other industries. Exploration expenditure is in some respects comparable with industrial research and development. However, because mines are wasting assets exploration is necessary for survival, and it is likely to form a larger part of costs per dollar of profits or sales than R&D. It can therefore be said that exploration is of far more significance to the miner than R&D is to the typical industrial company. Furthermore, unlike exploration expenditure, R&D results are transportable and patents permitting, transferable. The infrastructure burden that miners must carry is unique to the industry. Whereas urbanised industry is not usually liable for the capital cost of power, water, transport, townships and community facilities, the miner must finance these projects himself. Neither the payment of royalties, nor of course, income tax are unique to the mining industry. Royalties are more properly described as a unique charge on some primary industries but however described, they are a charge that manufacturing and service industries do not have to pay. Whilst we all pay income tax, the mining industry's uniqueness derives from the special problem that the industry has in arriving at annual net income in view of the capital intensity of the industry, partly due to expenditure on infrastructure, the indefinite life of capital equipment and its unpredictable residual value, funds expended on exploration and long lead times associated with a mine development. The third distinguishing feature of these costs is that, with the possible exception of exploration expenditure, they are heavily influenced by the policies and actions of Government. As such the industry has a responsibility to promote the industry by emphasising its potential to improve national product including exports and by requesting that the Government provide for the industry in its long term planning and seek its co-operation to prevent the industry incurring inequitable penalties relative to other industries.Finally, exploration and infrastructure expenditure are significant because they are front-end charges on a project. When due allowance is given the time value of money and the deferment of income from a mining development to which they relate, exploration and infrastructure expenditure assume greater importance than the raw money expenditure suggests. For all these reasons, exploration and infrastructure expenditure, mining royalties and mining income tax are worthy of detailed study. This is the purpose of this paper. The objective is to examine the determinants that give rise to them and provide some thoughts on their impact on on-going and potential mining developments and, where relevant, to make some suggestions as to how they may be minimised.

Jan 1, 1977

The Agnew Mine No. 1 Ventilation Shaft is the largest diameter shaft blind drilled in a hard rock mining environment. The selection of this method of shaft development was based on achieving an accelerated mine development and exploration programme. Drilling the shaft from a pre-sink depth of 73m commenced on March 22, 1982 and the shaft was stopped due to rig structural problems at a depth of 750m, 280m from the designed depth, on February 12, 1983, 137 days behind schedule. While problems with rig mechanical availability, cutter life and lost drilling tools in the hole hindered progress and escalated costs, penetration rates above prediction were achieved and both the speed and safety aspects of the method were well demonstrated.

Jan 1, 1983

By W Stange

Assessing the risks in a mining project is a key aspect of project evaluation. This is an exacting and demanding task because of the complexity due to the need to deal with uncertainty over long time periods. The way risks are assessed and managed is critical to the long-term success of the projects and the business. Discounted cash flow (DCF) analysis is commonly used for project and risk evaluation. A discount rate is selected that accounts for uncertainties in the cash flows. However, it is difficult to determine an appropriate discount rate due to the large number of factors that need to be considered and the complex relationships between risk sources. Using a proven framework, ævalue at riskÆ (VaR), this paper proposes to rigorously model and quantify ærisk at sourceÆ. The approach was first employed to assess financial market risks and is now widely used in the banking sector for risk assessment. In project evaluation, all risk sources are identified and estimated separately to ensure the overall project risk is quantified accurately. A bottom-up approach has been proposed. Estimates are first carried out for risk factors at the bottom of the project structure. The assessment is then applied at increasingly higher levels until the overall project risk is estimated. Value at risk is a versatile methodology and can be used in a local or integrated manner. The final value is objective and the calculation steps can be easily justified and followed. Four case studies have been included to illustrate how the proposed approach can assist management in decision-making.

Jan 1, 2009

Getting it right is a very profitable outcome. Shareholders would ideally like to see their directors get it right all the time on the major economic decisions. But it is very difficult for mining directors to get it right all the time in such an uncertain environment. Primary decision-makers of companies with significant stakes in the mining industry should get it right much more frequently. The legal measures of evidence (beyond reasonable doubt and on the balance of probabilities) can be used to determine whether grade estimates (a key revenue variable) are realistic. The application of this approach can be far reaching. More frequently correct decision-making would result in more effective allocation of limited resources (capital and labour). In turn, this would result in higher financial returns and a more extensive mining industry.

Jan 1, 1994

The following thesis is an outcome of an investigation undertaken by the writer, at the suggestion of Professor Skeats, of the dykes and associated auriferous reefs of the Walhalla-Wood's Point belt, with the view of determining what relation, if any, existed between the petrological nature and the extent of llietasomatic alteration undergone by the dykes, and the genesis and localization of the gold.Although the greater part of the writer's time in the field and laboratory was occupied in studying the dykes and auriferous occurrences, a study was also made of the general geology as a basis for the special investigation. In addition, it soon became evident in the field that secondary enrichment had played a marked part in re-concentrating the gold and some interesting data in this connection have been collected. For example, indubitable evidence has been found of nuggets of gold having been formed by secondary processes.

Jan 1, 1920

Some important mineral fields are referred to in discussing the formation of placer deposits in Australia. Testing methods include boring hand, with percussion rigs; with auger and pit digging drills; and l by vibro drilling. Sampling errors are minimized by the use of correct techniques and equipment for boring, sampling, and sample dressing, A hypothetical set of data is used to demonstrate the final process of evaluation, and some relevant taxation provisions are discussed.

Jan 1, 1964

Where vertical or near vertical faces are required in open excavations in soils and rocks, some form of stabilization of the 'cut is often necessary. Stressed anchors either alone or in combination with steel, timber or concrete-lagging are often an economical and versatile means of providing support. Stressed anchors are also-a very economical means of anchoring a wide range of structures such as dams, cranes, transmission towers, retaining walls, spillway aprons, bridge piers; and - stacks. The anchors need not be stressed always on installation.other than to proof load them. A number of examples illustrate some of-the more practical aspects of.the design and construction techniques used. No new methods of design or construction are involved, but merely some consolidation of the engineering design, soil and rock mechanics,thinking applied to the stressed anchor tech- nique.

Jan 1, 1971

By T Roache, K Yang, M Quigley, C Young

In late 2004 a large-scale evaluation of a new suite of tools for semi-automated core logging was carried out in the Eastern Goldfields of Western Australia. Known as HyLoggingÖ Systems, these combine rapid hyperspectral mapping of mineralogy and very high resolution digital imaging of cores and chips in their original containers. The resulting data is very information-rich and provides information about host rock, alteration and regolith mineralogy. This, in turn, can be used to test geological models about fluid/rock interactions, ore system architecture, ore feed characterisation and generally improve the objectivity of the normally manual and variable logging process. Results were obtained from the Kanowna Belle and St Ives gold deposits in the Kalgoorlie region, as well as numerous holes from across Western Australia stored in the Kalgoorlie Core Library. At the Kanowna Belle gold deposit critical spatial trends in the proportions of white mica, the chemistry and species of those micas, the presence of selected carbonate species and the absence of chlorite proximal to ore zones have all contributed to improved ore deposit understanding. Significantly many of these trends are not discernible to the naked eye, nor easily quantified, previously, across many thousands of metres of core from separate drill holes. At St Ives, the HyLoggerÖ was able to show that low-Al (phengite) and high-Al (paragonite to muscovite) white micas are spatially associated with D3 foliation zones that are proximal and distal to Au mineralisation, respectively. D3 foliation zones are also associated with the depletion of metamorphic chlorite and amphibole, and their replacement with biotite, relative to unaltered mafic host-rocks. The HyLogged GSWA drill holes yielded mineralogical characterisation of classic deposits, including Kambalda (Ni), Fimiston (Au), Teutonic Bore (Cu, Zn, Ag), Black Swan (Ni) and Hannans (Au), illustrating a wide variety of mineralogical trends due to both host lithologies, previously unrecorded lithological subdivisions, and alteration patterns. During 2005 a unique thermal infrared HyLogger was developed to map the important remaining silicates, such as feldspars, quartz, olivines, pyroxenes and garnets. This was successfully tested on a 9000 m subset of the same cores as the earlier study. Interpretation has focused, in particular, on silicification, albitisation, and the mineralogy of several high-grade, less hydrous deposits.

Jan 1, 2006

The safety of mine winder systems with regard to overwind, underwind, rope factors of safety, winder brakes and the like is discussed. Many misunderstandings and poten- tially unsafe practices are discussed as well as variations between requirements of various Mines Departments. Various methods to improve safety are suggested and the formation of an industry committee to review present practice and foster development of improved safety and economy is also suggested.

Jan 1, 1984

Palaeomagnetic work on the red beds of the Hervey Group from central N.S.W., and on the Mount Eclipse Sandstone from the Ngalia Basin, Central Australia, reveals a pre-deformational magnetization from the Hervey Group, which indicates a semi-equatorial palaeolatitude during the latest Devonian or earliest Carboniferous and a syn-deformational magnetization from the Mount Eclipse Sandstone which places Australia at a palaeolatitude of about 70¦ ¦ 20¦S during the early Late Carboniferous. By comparison with the existing data from Australia, the new results indicate that: (1) Australia (and thus eastern Gondwanaland) underwent a rapid southward movement of about 60¦ during the late Early and early Late Carboniferous, (2) the Lachlan Fold Belt has been part of cratonic Australia since at least latest Devonian or earliest Carboniferous, and (3) the New England region and cratonic Australia were at a similar palaeolatitude during earliest Carboniferous, but they may have undergone the rapid southward movement separately.

Jan 1, 1987

By McAllister J

Oxygen was in restricted use at Port Kembla until tonnage oxygen became available for steelmaking in the open hearth furnaces. In adopting the new process various modifications to furnace design and operation were necessary and some of these, including increase in roof height and variation in firing and draft control, are discussed.The design of oxygen lances is also discussed and various steelmakingtechniques considered.Steel production increased with oxygen roof lancing-one- furnace producing 8,507 tons in one week-but new problems, such as rate of refractory wear, and disposal of fumes, were created.Design of future open hearth oxygen furnaces is predicted.INTRODUCTIONIn the post-war era, the availability of "tonnage" oxygen caused a major revolution in steelmaking techniques. Various pneumatic processes showed that steel can be madeat a very fast rate and that oxygen steelmaking can be applied to open hearth furnaces. Methods used are surface impingement with roof lances, bath injection with door lances, flame enrichment with fuel firing, mixed gas and oxygen firing, and enrichment of normal combustion air by oxygen injection into the flue systems.Owing to its previous restricted availability and high cost, oxygen was used in rather small quantities in the open hearth furnaces at Australian Iron and Steel Pty. Ltd.(A.I. & S.), Port Kembla, until about the middle of 1960.At that time tonnage oxygen became available and roof lancing commenced on No. 33 furnace at No. 2' open hearth shop.

Jan 1, 1962

As near surface deposits are increasingly mined out and pit widths beginto exceed the reach of practical direct-casting stripping machines, high haulage costs can make truck-shovel pre-stripping operations uneconomic. This is compounded because the rate of inflation for diesel fuel oil, lubricants, tyres, etc. exceeds the general rate of inflation. The use of conveyor transport systems, long established in terracemining operations in weak materials, e.g. engineering soils, can provide a viable haulage alternative in pre-strip operations and in some open pit settings. The paper describes the engineering requirements and basic economics of such systems.

Jan 1, 1985

By Biswas AK

The solubility of nickel in matte smelt- ing slags, both as oxide and in the metallic form, is predicted using the results of a recent experimental work carried out with lime- free iron silicate slags as well as slags containing lime. Predicted solubilities are much lower than the nickel content of smelting slags, indicating that entrapped and possibly dissolved matte could be the major cause of nickel losses in such slags.

Jan 1, 1975

By M Manefield, G Bournival, S Ata

Asteroids contain an abundance of valuable resources such as: nickel, cobalt, gold, platinum and rhodium. Whilst the consumption of mineral resources on Earth continues to deplete, meteoroids have the potential to become a significant source of minerals. Even though the minerals content of asteroids may be relatively high, the valuable minerals are more likely to be only a small portion of the total ore present in the main body. The ores must, therefore, be processed to extract the metals of interest from the waste. Existing terrestrial technologies rely on manipulating the physical and chemical properties of minerals. The application of these techniques to asteroids processing, however, is not straightforward due to the presence of different conditions such as zero gravity and lack of water in space. This paper discusses potential separation and extraction techniques that can be used for processing of asteroids.CITATION:Ata, S, Bournival, G and Manefield, M, 2015. Resource recovery in space, in Proceedings Third International Future Mining Conference, pp 275–280 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 4, 2015

By Lynch P

Oaky Creek Coal Pty Ltd. currently mines high quality coking coal from both underground and open cut operations at its Oaky Creek Mine. Coal is transported by rail to the Dalrymple Bay Coal Terminal south of Mackay and to the Gladstone Coal Terminal. Oaky No.1 Underground Mine, Open Cut and Highwall Mine have concentrated on seams from the German Creek Formation, one of the major productive coal measure formations in the Bowen Basin Coalfields. (Fig. 1) location map.

Jan 1, 1998

By Williams P. A

Tailings dams constructed by the upstream method have traditionally been built using the sand fraction of the tailings, which has automatically provided a relatively permeable embankment material, and helped provide the necessary drainage conditions which are a pre-requisite for safe and stable dam construction using this method. This paper discusses some recent trends which have resulted in proposals to use impermeable material in place of the sand fraction as the embankment material, both for the starter dam, and subsequent lifts. The consequences of these types of decisions on the overall stability of the dam are illustrated, and the need for continued monitoring of pore pressures in the tailings as the dam is raised is emphasised.

Jan 1, 1992

By M Warren

The professional geologist or engineer on a mining operation has a particular view of their operation. This is based on the factors of the operation that have a direct impact on the daily work program of the professional, such as production rates and grades. The view that would be taken by a financier who is called upon to support the project may be somewhat different. The value of the operation to the financier is in its ability to generate surplus cash for its owners and thus repay the debts to the financiers, with as low risks profile as possible. A number of tools are used to test the sensitivity of the project to variations in the key cost/revenue drivers. The Financier may call on a team of technical specialists to assist with the assessment of the cash flow and risk profile and to monitor the development of the project. The ability to offset this risk, as all projects have some degree of risk, may be a key factor in determining the level of financial support to be offered.

Jan 1, 2002

By Clark K. N

The need for and advantages of simulators in iron ore pellet induration research are described. The approaches to simulation and the techniques to carry it out are discussed in detail covering drying and firing for the straight grate process. The CSIRO simulator design is described and some errors in simulation are discussed.

Jan 1, 1974

The first stage in the refining of lead blast furnace bullion is the removal of copper and this is normally done as a batch process in open kettles,A number of attempts have been made in the past to establish fontinuous processes operating in reverberatory type furnaces, but the growth of accretions in the furnace has always presented a serious problem.This has been overcome in the plant of the Broken Hill Associated Smelters Pty Ltd at Port Pirie by the construction of a reverberatory furnace and ancillary cooling system of novel design.Although a number of mechanical and metallurgical problems still remain to be solved, it is claimed that a workable continuous copper drossing process has been established.

Jan 1, 1963

The need to estimate the block size distribution of a jointed rock mass is of great importance in the design of blasting rounds to attain a pre- established fragmentation. Other Geomechanics topics, such as ,hydraulic behavior of rock-masses, as well as the determination of their strength properties, also require the accurate prediction of a rock-mass composition in terms of block size taking in due account the three dimensional interference of joints and other geologic discontinuities. In this paper, a method for computing the block size analysis of a jointed rock mass is described, using as input the common geologic data (dip and strike) of fracture planes existing in a rock bench prior to blasting.

Jan 1, 1977