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About 90 per cent of the pre-mining BIF-hosted iron ore resource of the Hamersley Province of Western Australia is of the Phanerozoic supergene martite-goethite type. The remaining ten per cent formed as supergene deposits at ~2000 ¦ 200 Ma, and were later modified by burial to form the Proterozoic martite-microplaty hematite ores. The supergene-metamorphic segment of this general unified model has been challenged by three recently published hypogene-based genetic models for the hematite ores, all requiring meteoric oxidation to produce the ore. The most recent and detailed, by Taylor et al (2001), is based on data from the small Southern Batter and North deposits of the Mount Tom Price mine. The authors proposed that during Stage 1 æoverpressured bicarbonate-saturated basin brines from the dolomite aquifer of the Wittenoom FormationÆ at 150 - 250¦C, dissolved free silica from BIF to produce a stratigraphically thinned, magnetite-carbonate-silicate-apatite rock. In Stage 2, meteoric oxidation of siderite to secondary microplaty hematite + ankerite, and magnetite to martite, at unspecified elevated temperatures and pressures, was followed by carbonate leaching (Stage 3). Finally, during Stage 4, weathering with removal of apatite, produced the typical low-phosphorus, porous martite-microplaty hematite ores of the Tom Price-Whaleback type. However, evidence of both microplaty hematite and martite reduced to magnetite, and of infill silica, apatite, and ferroan chlorite, with late-stage pyrite, in the pore space of martite-microplaty hematite ore, shows that the hydrothermal activity at Mount Tom Price is a post-ore event. Neither pyrite nor ferroan chlorite could resist the oxidation required to form hematite ore. Recrystallisation of microplaty hematite in these infilled zones to a typically coarser form than present in most of the normal ores, is a further supporting factor. A more credible, post-ore alternative to the hypogene genetic model is suggested here. Re-exposure to leaching by ground water of the metamorphosed ore deposits in the Phanerozoic resulted in the partial removal of remnant goethite. Localised modifications in the porous BIF/ore contact zones were driven by exothermic oxygen/pyrite/carbon reactions in the footwall Mt McRae Shale. Cool descending oxygenated meteoric water in the permeable ore horizons, acted as one limb of a thermal convective cell. In the other limb, heated reducing solutions rose through the permeable contact zones, to produce the observed localised modifications of BIF and ore. Expelled silica from the carbonatised BIF invaded adjacent porous ore to form erratic silicified ore zones, and to produce the local quartz vein systems found in the associated overlying BIF.

Jan 1, 2002

By D Kubik, K The

The New Zealand (NZ) Transport Agency’s Waterview Connection will complete Auckland’s Western Ring Route, a 47 km north–south motorway alternative to Stage Highway 1. The project is being delivered by the Well-Connected Alliance comprising the New Zealand Transport Agency (NZTA), Fletcher Construction, McConnell Dowell Constructors, Obayashi Corporation, Parsons Brinckerhoff NZ, Beca Infrastructure and Tonkin & Taylor.The project involves construction of 5 km of new motorway, nearly half of it underground connecting State Highway 20 (SH20) to State Highway 16 (SH16). The underground portion of the project incorporates twin 13.2 m inside diameter (ID) tunnels 2.4 km long, each carrying three traffic lanes, one for north-bound traffic and one for south-bound traffic. The tunnels are being driven by a 14.46 m outside diameter (OD) 2400 t, tunnel boring machine (TBM) shield that was assembled and launched at the southern portal. It will be turned and re-launched at the northern portal for the return drive to the southern portal where it will be disassembled. This paper presents two major temporary works elements contributing to the successful launch of the TBM: the TBM assembly crane platform and the TBM shove frame and associated components.Tunnel boring machine shield assembly – crane platformThe TBM shield was delivered to site in subassemblies ranging in weight from 100 to 380 t. It was initially proposed to use a 750 t crawler crane sitting above the tunnel portal headwall to assemble and disassemble the TBM. However, this did not have sufficient capacity to allow the TBM shield to advance clear of the tunnel before disassembly commences. To reduce the crane’s working radius a temporary steel crane platform was developed that is supported on the side walls of the tunnel approach trench. This has enabled a smaller, less expensive, 600 t crawler crane to be used and will allow the TBM shield to clear the tunnel before disassembly.Tunnel boring machine launch – temporary worksTo launch the TBM a purpose built steel frame was required for the TBM thrust rams to react against. The shove frame had to be able to transfer the thrust loads from the TBM shield to the ground below and thrust wall behind. A range of potential thrust loads and jacking patterns were examined to develop the design load cases for the shove frame. The shove frame was used to launch the TBM at the southern portal and to re-launch it at the northern portal. Elements of the shove frame will also be used to support the portal faces during the TBM arrivals.CITATION:Kubik, D and The, K, 2014. Waterview Connection – temporary works for tunnel boring machine?launching, in Proceedings 15th Australasian Tunnelling Conference 2014, pp 281–288 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

By J Q. Cooper

The New Zealand rail authority, Kiwi Rail and Auckland Regional Transport Authority (ARTA), are jointly planning a new mainline rail link between Auckland’s downtown Britomart Station and the existing Western Line at Mt Eden. In 2009, APB&B, a consortia of Aecom, Beca, Parsons Brinkerhoff and Hassell Architects where commissioned to develop the conceptual design, Assessment of Environmental Effects (AEE) and business case for the new 3 km rail line towards preparing a Notice of Requirement to protect the route through Auckland’s central business district.This paper describes the engineering challenges in the development of the conceptual design for the three proposed underground stations, the running tunnels and connections to the existing network. Feasible alignment and station location options were developed and evaluated using multi-criteria analysis based on key client functional requirements, constraint mapping and environmental impacts. The resulting preferred scheme was then developed to a conceptual design suffi cient for assessment of environmental effects, risks, and the development of a robust construction methodology to allow high level capital cost estimates.The paper describes some of the major challenges overcome to develop the concept, including steep gradients, narrow street envelopes with existing buildings and structures, the need for large platform spaces with low ECBF rock cover and complex connections at Britomart and the main line near Mt Eden.The development of the conceptual design of the underground stations in particular demonstrates the need for a holistic value engineering approach to satisfying the architectural and functional requirements, in a highly constrained dense urban environment and at lowest practical cost. The construction methodology was a key input to the conceptual design development throughout.The conceptual design will be used as the fundamental basis for the development of the AEE and business case for the project in the future.

Mar 8, 2011

By Bukeikhanov D. G, Syedin V. F, Sagyngaliyev K. S

The present paper describes a method of simulating deposits of com- posite structure by means of computers. The method employs mathematical tech- niques to study the openworks zone formation dynamics in open-pit mines with any mode of the works front ad- vance as well as to determine, on oriented graphs,the optimal direction of openworks expansion.

Jan 1, 1977

In 1989 Henry Fairlie wrote a cover story for The New York Republic, 'Fear of Living'. He noted, `The first Apollo space craft caught fire during a test on the launch pad. Three astronauts were killed, the nation was shocked and horrified, all the more because the screams and scrambles of the astronauts could be clearly heard'. After a brief delay in manned flights, the Apollo program resumed with strong public support; within 18 months, Apollo 11 landed on the moon. Fairlie contrasts the Apollo tragedy to the 1986 Challenger disaster. `The prevailing mood in America so panicked NASA that it took almost three years to send up another shuttle', he observed. `In 19 years between these tragedies, the idea that our individual lives and the nation's life can and should be risk-free has grown to be an obsession threatening to create an unbuoyant and uninventive society.' Taking risks is a normal part of our daily routine. The act of living involves minute-by-minute decision-making focused on survival through the practical management of risks. The act of breathing exposes each individual to the risk of infection while the act of crossing the road could almost be considered suicidal. We deal with these constant threats by observing simple rules of hygiene, safety or what may be labelled as common sense. The rules of community, designed to minimise risk in society, can at times lose focus and result in the imposition of schemes that have a far greater cost than the issues from which they protect. Effective management of risk, whether in the community or a business is about awareness and balance and the elimination of unacceptable risk. Risk cannot be eliminated from our lives or our working environment. However it can be managed if it is properly understood, monitored and controlled. The purpose of my presentation today is not to provide a comprehensive technical risk inventory but to capture the essence of risk and the application of management strategies designed to deal with it in a positive fashion. The basis of our differential financial reward system is risk. The key to successful management is to deal with the downside risks in such a fashion that the benefits of enterprise are not eliminated. The key question any investor must consider is `can the major risks assQciated with a venture be managed or eliminated while retaining a greater proportion of upside potential'. The answer to this question is the ultimate value an investor would assign to any project. In reviewing the relevance of risk to our industry the range of papers to be presented today provide examples of how management deals with specific components of risk. In each case the value of the business has been enhanced by the practical application of balanced risk management. The ultimate success of the industry depends very much on this concept as it also provides a public showcase upon which we are judged. Therefore, from all perspectives the effective management of risk is a cornerstone from which to build a stable and progressive mining industry.

Jan 1, 1994

By C M. Sennitt, M J. Spadafora

Systematic field evaluation of known gold and clay occurrences in South Korea has led to the recognition and discovery of both high and low sulphidation gold-silver epithermal systems. These are associated with Cretaceous acid-intermediate volcanic centres in the southern parts of the peninsula. The high sulphidation deposits such as Seongsan and Kohung are characterised by pervasive silica-alunite-dickite-pyrophyllite alteration with anomalous arsenic geochemical signatures. Gold mineralisation is associated with fine grained marcasite and pyrite. A low sulphidation quartz vein system observed at the Tongyoung mine comprises multistage colloform banded quartz-carbonate assemblages, with minor manganese and base metals. Gold and silver occur as electrum and tellurium minerals. Some deposits such as Gasado and Dogcheon display both high and low sulphidation alteration assemblages. Early pervasive silica-alunite-pyrophyllite alteration caps formed by acid fluids with a significant magmatic component, occur above cryptocrystalline colloform banded vein systems. The quartz vein stage hosts the precious metal mineralisation and appears to have been deposited by later neutral fluids generated in part through mixing with meteroric water.

Jan 1, 1999

By PáDeáBosscher, A Bruwier, M Weidenbach, C Philippe, T Ly, A Van Den Bosch

In the mining business the cost of grinding media represents up to 40 per cent of the total milling cost and therefore grinding media optimisation has a direct impact on the concentratorsÆ bottom line. In the process of optimising grinding media alloys, Magotteaux developed its own methodology which consists of a series of analyses, tests, calculations and evaluations and assist the concentrator in optimising their processes.This paper presents the Prominent Hill case study where this methodology has been applied on both the secondary ball mill and regrind IsaMill«.The analysis of the wear conditions in the secondary ball mill allows Magotteaux to select a series of grinding media alloys to be tested to reduce grinding media consumption. By marking these different grinding media types with a unique drilling pattern, one can quantify the relative wear performance and cost effectiveness of each grinding media type within the same milling environment. After selecting the most economical grinding media composition a full scale industrial trial, involving topping up the selected grinding media is carried out and the media wear performance closely monitored and analysed.For stirred grinding mills, suppliers propose different grinding media, mainly ceramic beads, with specific properties and cost. Therefore the concentratorsÆ choice is a compromise between grinding efficiency, wear resistance and cost. The selection of the correct grinding media for stirred milling and the assessment procedure will be presented in this paper. The test results of the new stirred grinding media type in the regrind IsaMill« at Prominent Hill are presented and analysed.CITATION:Weidenbach, M, Van Den Bosch, A, Bruwier, A, Ly, T, De Bosscher, P and Philippe, C, 2012. Forging ahead - A collaboration between the OZ Minerals Prominent Hill Concentrator and Magotteaux to improve plant performance, in Proceedings 11th AusIMM Mill OperatorsÆ Conference, pp 105-110 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 29, 2012

By G A Brown

Environmental legislation is changing rapidly throughout Australia at the present time, and with that change comes additional responsibilities for the mining and petroleum industries. Among the many changes that are being made are increased penalties for both criminal and accidental environmental impairment. The defences for criminal offences are limited and for other offences the laws may impose strict liability - in effect the offender is guilty until proven innocent. Mines may be included under contaminated land legislation, creating additional liabilities for clean-up, rehabilitation and long-term management. It is not unknown in Australia for the value of a mortgaged property to be less than the amount of the environmental liability acquired by a mortgagor in possession due to contamination of the site. An essential part of the management program for resource projects is now the regular conduct of an environmental audit, the results of which assist in the management of the legal and financial liabilities facing company directors and managers. The audit can also assist with negotiations with government agencies, staff, unions, insurers, Aboriginal and other community groups. An environmental audit may also help to ensure that companies are claiming the maximum allowable deductions for environmental works under the tax laws, and provide evidence in support of such claims. Environmental legislation affecting resource industries Environmental legislation in Australia is changing rapidly and can impose massive constraints, substantial administrative costs, and considerable liability on directors, managers and the corporation. Pollution control legislation Every State and Territory of Australia has a range of pollution control legislation contained in either individual acts relating to air, water, noise and land, or embodied in a single environment protection act. Pollution control legislation provides a critical management baseline for resource industries throughout Australia, often requiring the full-time attention of an environmental manager or an environmental department. In general, it is an offence to discharge effluents into water, or emit gases into the atmosphere above prescribed limits, cause noise above a regulated level, or contaminate land without a licence. A licence determines how much of a substance can be discharged, the location, the receiving environment, the quality, and the time at which discharges can be made or noise can be caused. Planning legislation Planning legislation controls where a project is located, how it will be constructed and operated, how large it is allowed to be, and what will happen once the project is completed. Development consents or approvals will generally contain a range of conditions controlling the preparation of the site, the construction of the facility and the way it is operated throughout its expected life time. Resource projects may be regarded under legislation as scheduled or designated developments requiring special treatment during the decision-making process. Under planning legislation, it is usual for resource projects to be subject to an environmental impact assessment process. Resource legislation Resource legislation specifically covering mining and petroleum in Australia, also contains requirements regarding protection of the environment during exploration for and extraction of minerals and oil. A mining or petroleum production lease usually contains numerous conditions regarding protection of the environment and rehabilitation of the site during and after the life of the extractive process.

Jan 1, 1994

By Tronson K

Improvements in technology do not necessarily lead to higher profits: the benefit of lower costs can be captured by coal buyers, governments and workforce rather than by the colliery operators. The economic impact of longwall mining in Australia has been critically assessed to provide lessons for the future. For a variety of reasons, companies investing in longwall equipment in the past five years have generally not achieved an adequate return on the funds invested. The effect of technological innovation must be examined in the light of competitive forces operating in the market. Projections of cost reduction trends in the coal industry have been applied to a world cost model to provide a picture of the coal industry in the year 2000.

Jan 1, 1988

By G C. Snedden

Tandem row stator arrangements are common in the last stage of multirow, gas turbine compressors. Tandem row stators, or stator and de-swirler vane combinations are used to relieve the loading on the stator but ensure axial flow leaving the compressor. In this paper a standard 40” (1016 mm) ventilation fan in the Air Blow Fan’s range is modified to utilise the plate support struts on the barrel to relieve the aerodynamic loading on the aerofoil stator. Performance maps for both versions of the fan were generated using computational fluid dynamics and are compared across a wide range of rotor setting angles showing a clear advantage of approximately 2 per cent in efficiency for the tandem blade design. In addition, the area of high efficiency that represents the practically usable area of the map extends over a greater area in terms of flow rate and total pressure rise.

Oct 12, 2022

By S N CARRAS

Ore reserve estimation is a procedure involving data collection, data storage and judgement and assumptions about geology mining and metallurgy. Calculations are based on these assumptions and an economic analysis on projected cash flows is carried out. Ore reserve estimation must therefore be subjective and will always depend on the extent to which the assumptions used in arriving at the estimate are correct. This paper is an attempt to summarise the many aspects that can contribute to ore reserve problems and to offer some suggestions on how to minimise these problems. For further details on specific concepts readers are referred to the detailed descriptions in the referenced papers.

Jan 1, 1992

By Hoskings R

Conceptual studies of the run of mine stockpiling and reclaiming requirements com- menced in 1975. Final selection of equipment was made in 1978 and the equipment was commissioned in June, 1979. Equipment selection was made after extensive investigation and visits to existing facilities throughout the world. The equipment selected is described and com- pared with the alternatives. Foundations were designed to minimise clean up effort and to ensure stability of equipment under design wind loading without storm bays. Program- mable logic control enables the stacking and reclaiming facility to provide a blended feed to the coal preparation plant.

Jan 1, 1980

By Thirnbeck M, Sione T, Petrie P, Leach TM, Mori W, Digan K, Harry K

Gold and lesser copper mineralisation are associated with porphyry-related vein systems periph-eral to two separate inferred intrusive centres north of Kainantu, Papua New Guinea (PNG). The intersection of NW trending structures, formed parallel to the Markham Fault, with NE trending transfer structures localise porphyry intrusions, and control vein distrib-ution.The Arakompa veins intrude pre-existing fractures in Akuna granodiorite, located proximal to an inferred porphyry. These veins are characterised by early quartz and later pyrite-chalcopyrite. Gold mineralis-ation is associated with Bi-Te phases in the sulphide veining. At Maniape, en echelon gash veins occur within the imbricate portion of a regional structure. Maniape is a high level carbonate-base metal gold system formed distal to the same porphyry source as Z ?-;4 kmmna

Jan 1, 1994

By P A. Grossman, J H. Rubinstein, M Brazil, D Whittle

Many ore reserves are harvested by a combination of open pit and underground mining methods. In these cases, there is often material that could be mined by either method, and a choice has to be made. The area containing this material is referred to as the transition zone. Deciding where to finish the open pit and start the underground mine is referred to as the transition problem and it has received some attention in the literature since the 1980s.In this paper, we provide a review of existing approaches to the transition problem encompassing: graph theory-based optimisation employing an opportunity cost approach, heuristics and integer programming. We also present a novel opportunity cost approach, that takes into account a crown pillar, and show how the new approach can be best applied through the unconventional application of an existing mine optimisation tool.CITATION:Whittle, D, Brazil, M, Grossman, P A, Rubinstein, J H and Thomas, D A, 2016. Determining the open pit to underground transition – a new method, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 731–742 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By Tilley H. L

The 90 m deep Yallourn Open Cut brown coal mine in the Latrobe Valley, Victoria is developing into an area close to a reverse fault. A major batter stabilisation program, matched to ongoing operations, has com- menced to maximise coal recovery where the fault is within 100 m of the Open Cut. The various mine development options considered during the planning stages are outlined. These options were formulated in a back- ground of geotechnical constraints and the need to maintain continuous and reliable coal supply at a time when a new coal field would be developed. The geotechnical investigations and analysis procedures under- taken to determine stability of the batters during their excavation are presented. The geotechnical constraints on the mine design and opera- tions required to ensure safe working conditions are detailed. Current operational and batter stability conditions are considered satisfactory.

Jan 1, 1989

By Watkins JR

Movements in the mineral trade cycle are almost invariably out of phase with the gradua- tion rate of mining engineers, metallurgists and geologists. This commonly leads to situations where graduates are scarce in "boom" periods and in free supply when the trade cycle is depressed. This problem reflects the difference in elasticity and flexibility between the educational and industrial environments. In the educational system the decision that brings students to graduation is made three to five years prior to the event. This is quite a lengthy period of time in terms of mineral trade cycles. By contrast, the mineral industry has far more elasticity in responding to short term fluctuations in mineral trade. The authors do not believe that the mis- match between the availability of skilled personnel and the manpower requirements of industry in the short term is intractable. Much is to be gained by more realistic and rational manpower forecasting combined with greater flexibility in the educational realm.

Jan 1, 1982

The South American mining community leads the world in recognition and adoption of the latest grinding mill relining technologies. Clearly this region has recognised the benefits of improved relining performance as a defence against the Global Economic Crisis. Five of the six RUSSELL TWIN 8 Mill Relining Systems, ordered to date, are either operating or being manufactured for South American mine sites. The sixth is for Sino IronÆs Cape Preston Project in Western Australia. This paradigm shift, towards very short relining times, aims at displacing mill relining activities from the critical path of concentrator maintenance shutdown schedules. The first uses of the RUSSELL TWIN 8 Mill Relining System have seen some of the highest semi-autogenous grinding (SAG) mill new liner placement rates ever observed by Russell Mineral Equipment (RME), as would be expected with two, independent Machines working simultaneously in the one mill. The liner replacement rate, averaged over the whole reline is good (27 per cent improvement over single Machine System in the same mill) but short of full potential. This modest result can be attributed to reline crews unfamiliarity with RUSSELL TWIN 8 System operation. This paper compares a sample of conventional (single machine) RME Mill Relining System performance data with one ædouble headÆ mill liner handler by others. Early performance of EscondidaÆs new RUSSELL TWIN 8 System performance is then compared with recent single machine data from Escondida, immediately prior to RUSSELL TWIN 8 commissioning. RME and Escondida look to constantly improving RUSSELL TWIN 8 System performance as full operational familiarity is achieved. The preparation of this paper revealed a need to develop a global industry standard for mill relining data collection. A web based platform to develop data collection templates is also discussed in Appendix 1.

Jan 1, 2009

By S Bright, M J. Masamvu, E K. Chiwandika, S Dandi, S M. Masuka

The depletion of high-grade hard and lumpy chrome ores has forced Zimbabwean ferrochrome producers to resort to low-grade friable ores that have an average of 28 per cent fines against a set limit of 12 per cent. Submerged open arc furnaces currently in use are associated with eruptions within the furnace because of the high amounts of fines, high energy consumption, as well as high SO2 and CO2 emissions. Traditionally employed agglomeration methods such as pelletising and the use of coke in the furnace have been discarded because of the pressure to lower operational costs and to achieve higher profit margins. This research aims to develop a method to incorporate lowgrade friable ore fines and unprocessed coal into production while lowering CO2 and SO2 emissions through a closed direct current (DC) arc furnace. The closed DC arc furnace could incorporate the friable ores and coal while maintaining above 90 per cent reduction rates. Preliminary findings also show that energy consumption could be reduced by up to 35 per cent by incorporating a pre-heating and pre-reduction system using the flue gases from the furnace. In the proposed circuit, the cost of production per ton of ferrochrome might be potentially lowered by an average of 30 per cent.

Jun 19, 2024

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

By F Grobler

Many projects fail because project performance in unfavourable economic conditions was not anticipated at the investment decision stage. This type of failure may have been avoided through the selection of a strategy that enables the project to perform well under a range of possible future economic conditions (a ærobustÆ strategy); rather than an æoptimalÆ strategy for expected future conditions that will never eventuate. This paper describes a method of rapidly generating mine plans for a number of project strategies, and then evaluating it against a representative range of equally likely economic conditions. The key performance indicators derived for each strategy are the mean value and the distribution of values (variance). A prudent investor will identify prospective strategies not only on the merit of highest mean values (as a proxy for economic reward), but also on the probability of not meeting specified investment hurdles (a proxy for risk). A robust strategy will achieve its financial objective even under adverse economic variations. This paper focuses on the effect of commodity price uncertainty; particularly around the choice of mining and processing capacity levels. Results from enumerating 2000 prices scenarios against 63 strategy combinations show how processing and mining capacity can be manipulated to manage the risk-reward trade-off.

Sep 26, 2011