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By G Akdogan, R V. R Handfield-Jones

The application of microwave energy as a substitute for conventional heating has drawn interest from many researchers in extractive metallurgy. Microwaves have a heating effect just as many other forms of radiant energy. Microwaves are able to penetrate the substance at which they are directed and in being absorbed heat the material from the inside. As a result of heat generated in the interior of a particle, microwaves can affect the rupture of a particle (in this case a host ore) and break down the matrix of the particle (host ore) and expose the recoverable mineral to the leaching reagent. Two series of leaching experiments were carried out at temperatures above 90????C using a conventional heater (hot plate) and a modified 850 W, 2.45 Ghz microwave oven. One series of tests was carried out at ambient temperature. A pyritic/arsenopyritic gold concentrate was leached with 3.3 kg/t to 6.8 kg/t NaCN for two hours. The extraction of gold at 6.8 kg/t NaCN was higher in microwave assisted leaching (59 per cent) than the extraction obtained in leaching at conventional heating (39 per cent) and ambient temperature (28 per cent). Extraction of gold was dependent on the size fraction used and was 48 per cent for û75 ¦m, 43 per cent for û90+75 ¦m and 37 per cent for û150 + 90 ¦m size ranges.

Jan 1, 2000

By S R. Williams

There is a sense of geometallurgy being new; a new methodology for mining project development and improved operational strategy. One of the main challenges that any ænewÆ technology faces is a validation of the value and the need to produce case studies. However, producing case studies can often be problematic particularly given the long cycle from mineral deposit project, through feasibility and construction to stabilised operation of a mine.However, the roots of geometallurgy go back quite some time. Successful practices with geometallurgy can be seen from as early as the 1980s. Many times those practices were not called geometallurgy but something else and, in other cases, what can be seen are various components of the geometallurgical ævalue chainÆ.This paper will analyse a selection of published past practices from a geometallurgical perspective to demonstrate the value realised from the application of this methodology. The paper will then make some general comments on where this history of work in geometallurgy has lead us to and what are the challenges today for the geometallurgical effort.CITATION:S R Williams, 2013. A historical perspective of the application and success of geometallurgical methodologies, in Proceedings The Second AusIMM International Geometallurgy Conference (GeoMet) 2013 , pp 37-48 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 29, 2013

By I M. Platten, S C. Dominy

The Clogau St DavidÆs gold mine has a recorded production of around 81 000 oz Au and it is the largest mine in the Dolgellau gold-belt and BritainÆs most prolific historical producer. The original mine was first worked for copper, however; in 1854, gold was found in waste material from the St DavidÆs section. In recent times the mine has operated intermittently between 1983 - 2007. The principal black shale-hosted gold-bearing reef (Main Reef) can be traced for about 3 km, striking approximately NE-SW and dipping steeply between 60¦ - 90¦ SE. The reef system pinches and swells, changes strike and splits into a number of smaller branches. Reef width is variable, ranging from over 6 m to a few cm and in places reducing to small irregular blobs. The reef is internally complex and composed of swarms of narrow (1 - 300 mm) subparallel veins separated by country rock sheets. The gold-bearing veins within the reef package are discontinuous; though generally possess bonanza grades running 10s - 100s oz/t Au. It has historically been shown that some gold-rich vein segments can grade up to 300 oz/t Au. The predictability of the gold-rich segments is poor, but has been shown to be related to presence of the Clogau (black shale) Formation, and/or the mechanical interactions of the reef with greenstone sills, reef branching and splitting and/or cross-fractures to form ore shoots. The mine is currently being re-evaluated as a potential small-scale selective operation.CITATION:Dominy, S C and Platten, I M, 2012. Geology, mineralisation and potential of the Clogau St DavidÆs mine, Dolgellau gold-belt, Gwynedd, Wales, in Proceedings Narrow Vein Mining 2012 , pp 101-120 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Mar 26, 2012

By M Sebbag, T Taimre

Barrick Gold Corporation is proceeding with development of the Buzwagi Mine in the Lake Victoria Greenstone Belt District of Tanzania. The Buzwagi orebody occurs in the Nzega Shear zone within the Greenstone Belt and is hosted in a K-Feldspar rich granite in contact with mafic volcanic. The orebody presents 2.6 M ounces in 41 Mt of reserves, at 2.0 g/t. Over the ten year mine life, total material movement will be 261 Mt. The feasibility study was completed in 2006 and presented several technical challenges. Two principle challenges are grade control and the impact of dilution on the economic viability of the project. The principle challenges for grade control will be quality control and quality assurance in the sampling of the massive coarse grained granite, which comprises 70 per cent of the deposit. The principle challenge with dilution will be with the selective mining of the narrower mineralised zones contained within the mafic volcanics. This paper will focus on the mine planning methodology which has been applied including selective mine unit (SMU) and dilution estimation, net smelter revenue (NSR) calculation and the effects of cut-off grades to the project economics and mine schedule.

Jan 1, 2007

A model has been developed for drum scrubbing which allows selection of geometry and power input. Specific aspects considered are: Calculation of total static and operating volumes. Total residence time based on total operating volume. Solids residence time based on solids operating volume. Selection of the aspect ratio. Alteration of operating fill to allow for smaller or larger feed openings. Selection of proportion of critical speed. Calculation of shell and motor power requirements. The model uses either solids or total residence time to calculate the required operating volume. The solids residence time is based on the proportion of coarse solids in the feed. Material finer than the reject size is considered as part of the slurry. The solids operating volume is the static volume plus the surcharge on the discharge weir required for flow of the solids from the unit. The total operating volume is the static volume plus the surcharge on the discharge weir for the total flow to exit the scrubber. The burden density is calculated from the coarse solids bulk density and the slurry density that includes all the fine solids. Power is calculated using the Liddell and Moys correlations for burden position and shape, and the operating rotational speed. Results from the model (especially power) have been verified from industrial installations of significant size. Predicted and observed power draws are within two per cent. A check against the JKMRC mill model shows power draw prediction agreement to within four per cent.

Jan 1, 2004

By T O&apos, Sullivan

Reconciliation of metal production from a sublevel cave (SLC) mining operation is a complicated process. SLC reconciliation is unlike reconciliation for open stope operations, where a tonnage of extracted ore can be assigned to an exact volume of in situ ore, and a direct comparison made between the estimation of contained metal and actual metal production. In SLC operations the ore extracted from a particular SLC drawpoint will be composed in part from the parcel of freshly blasted in situ material, in part from varying components of ore material (from cave stocks) flowing down from other previously mined areas vertically above the current draw position and in part from external dilution. This leads to difficulties in reconciling production grades against estimated grades. The problem is that we know how much metal we have produced but we can not precisely say where it has come from. Metal production reconciliation is fundamental in assessing ore reserve estimation accuracy and performance and in determining a draw management strategy for SLC mining. In terms of contained metal, differences in extracted metal compared to in situ metal represent changes to cave stocks. To generate local estimates of the cave stocks, differences in metal for each ring are treated as additions to or subtractions from a series of vertical columns of stocks extending throughout the height of the cave. The sum of metal differences (extracted versus in situ) for each vertical column results in a residual metal map at any particular mining level. The metal maps show areas where the metal production has been greater than or less than expected. The maps also highlight areas in the cave where residual metal is located, areas where targeted overdraw can reduce cave stocks.

Jan 1, 2006

By J L. Stacey

The diverse priorities, drivers and concerns of multiple stakeholders in the minerals industry complicate the integration of sustainable development considerations into mine design, as well as operational and strategic decisions. The ability of the industry to address all role-playersÆ needs, or indeed, to achieve consensus among all role players on the plethora of sustainable development issues seems a noble yet unattainable goal. One of the difficulties in assessing the relative importance of sustainable development issues across many stakeholders is the inevitable lack of impartiality in valuing these issues. Starting from a premise that transparency and fairness of the process are absolute prerequisites for progress, but that consensus is not, an approach has been developed in which all stakeholders are asked to assess the importance of all other stakeholdersÆ priorities, excluding their own. The approach recognises that stakeholders have different levels of contribution, understanding, vested interests, and perceptions of legitimacy and entitlement, across the diversity of sustainable development issues and decision criteria. Using Triangular Value Analysis, the relative weightings of each of the stakeholderÆs priorities are determined through a regression-like technique. The uniqueness of this approach is the manner in which self-assessment bias and overemphasis of stakeholdersÆ own priorities are avoided. The methodology can be used for both internal and external stakeholders, and in conjunction with other group decision making techniques, such as the nominal group or Delphi techniques. This paper will illustrate how Triangular Value Analysis may be applied in the minerals industry to determine priorities in various decisions relating to potentially conflicting sustainable development priorities within the industry.

Jan 1, 2009

By Y Durkheim, P Saunier, L Ameglio

"In the last decade Afitex developed the Draintube™ geocomposite, which provides simultaneous drainage and waterproofing functions. This new type of drain tubes planar geocomposites (DTPG) differs from other geocomposites as the drainage core is composed of multiple corrugated and perforated pipes instead of biaxial or triaxial nets. It is furthermore associated with needle-punch stitched layers of non-woven geotextiles, which act either as capillary mediums or as filters.In this paper, the structure of the Draintube™ drainage composite is presented along with its key properties and the drainage mechanism associated with its particular structure.The relevance of this kind of structure is then reviewed based on past and current laboratory bench evaluations and field installations for mining applications such as the covering of acid rock drainage (ARD) tailings for the Central Manitoba Mine (Canada) site-rehabilitation; and as a pregnant solution collection layer in heap leach pads.Some of the demonstrated critical advantages of Draintube™ in the mining industry are as follows: reduction of the thickness, hence lower volume of granular drain layers improvement of fluid and gas collection and reduction of the hydraulic load reduction of secondary collector network mechanical protection of the sealing membrane fast and economical installation of interlifts stability under extreme conditions (compression, temperature, pH) increased stability of entire covering system and reinforcement of protection of dykes filtration of the covered material customised drainage positive connection of the geocomposite to collector pipes enable leaks detection (using a conductive textile layer) with an electrical test.CITATION:Saunier, P, Ameglio, L and Durkheim, Y, 2015. Tubular drainage and lining geocomposite for mine tailings and heap leach pads, in Proceedings Tailings and Mine Waste Management for the 21st Century, pp 297–304 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jul 27, 2015

By J K. Claflin, S R. La Brooy, A M. Claflin

Rotary kilns have been in service in the gold industry to regenerate carbon for 65 years. At the time oxide ores with gold head grades of 8 to 10 g/t were being treated. Carbon could be regenerated adequately at 650°C and solution losses were less than 1%. Forty years ago, research indicated that heavily fouled carbon from flotation circuits had to be held at 750 to 850°C for ten to twenty minutes for full reactivation (Avraamides and La Brooy, 1987), gold head grades were typically 5 g/t and solution losses typically 0.02 ppm – still less than 1%. In 2017 it was determined (Claflin et al., 2017) that a residence time of less than 1 minute at 750°C can be adequate to reactivate carbon fouled with organics sufficiently to achieve 0.005 ppm solution losses in a flotation tailings leach plant.With the potential for discovery head grades to drop below 0.6 g/t, solution losses of 0.02 ppm represent over 3% loss. Tight operation of the whole carbon circuit is required to keep gold solution losses below 1% going forward.There are alternatives to a rotary carbon kiln, e.g. vertical kilns of which the Minfurn, Rintoul and Combustion Air kilns are examples. The alternative kilns can be heated using electrical heating elements, induction, and microwave. These kilns can operate successfully under the right conditions, however, they are almost exclusively for small carbon throughputs and are not suitable for the large carbon advance rates that are required to process low head grade ore deposits. Large throughput carbon kilns are are almost exclusively fossil fuel fired rotary kilns and the subject of this paper. In the view of the principal author, a fossil fuel fired vertical carbon kiln is preferred to a rotary kiln, however, it is not currently used in the industry.Thermal regeneration of activated carbon has a major impact on gold recovery in the carbon circuit. The carbon kiln and associated equipment constitute 3 to 5% of the capital cost for an oxide processing plant and up to 10% of the capital cost if flotation tails are leached. Despite the capital cost and impact on recovery, the carbon kiln is often poorly selected, operated and maintained.Six years ago Ausenco embarked on the Carbon Kiln Initiative to reduce solution gold losses. This body of knowledge has been published in a series of papers culminating in this paper on how to:1. Select a kiln appropriate for the flowsheet;2. Maintain the kiln to achieve design operation; and3. Operate the kiln to minimise costs and maximise reactivation.CITATION:Claflin, J K, La Brooy, S R and Claflin, A M, 2018. Carbon kiln selection, operation and maintenance, in Proceedings 14th AusIMM Mill Operators' Conference 2018, pp 251–274 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 29, 2018

By D Yates, C C(te, M Rodgerson

This paper describes how specific technical and regulatory issues related to water management have been dealt with at Anglo AmericanÆs Moranbah North mine. It compiles the collection of practices that have been implemented since 2010 in response to climatic and regulatory drivers. Operations must continually evolve as they face emerging challenges. For Moranbah North mine, one key challenge is the integration of its mine water system to that of its new neighbouring mine Grosvenor. The commitment to ongoing improvement has placed the mine in a good position to face this particular challenge.Water-related risks were identified then mitigated by technical practices, which have focused on improving underground water management, increasing storage capacity and installing a state-of-the-art control system for the management of water on-site and for releases of mine-affected water to the environment. These practices are supported by an extensive monitoring and audit system that provides confidence in the reporting of activities and outcomes. The strategy has helped the operation with its continual attempts to minimise reliance on high-quality third-party water and improving its interaction with the surrounding environment and community.CITATION:Rodgerson, M, Yates, D and C(te, C, 2013. Leading practice water management at Moranbah North Underground Mine, in Proceedings Water in Mining 2013 , pp 301-310 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 26, 2013

Risk management has become an essential tool for mining companies to ensure their projects are well-managed and profit expectations are achieved. Risk management has also become a mandatory corporate governance requirement in Australia for publicly listed companies and equally important to attract investors. This paper provides a brief overview of the essential tools needed to implement a practical risk management framework to comply with the internationally recognised ISO 31000:2009 risk management-principles and guidelines from the perspective of small or soon to be producing mining companies. To?successfully?deal with the unknown and to manage the opportunities and risks involved with a mining project requires a clear understanding of the basic risk management principles. These include how to develop a project risk register, how to develop a project risk treatment plan and how to manage and monitor project risks to take full advantage of the opportunities presented.The first step is to identify and fully appreciate the risks that face a mining project. There are many risk identification methods that can be used including checklists, brainstorming and hazard and operability (HAZOP) studies. These often lead to a telephone book full of risks which are near to impossible to manage. A risk library specifically designed?for mining?projects containing no more than 100 risks will cover the major showstoppers, is practical and can be readily implemented and successfully managed.A risk framework also needs to be established which is compatible with the companyÆs structure and objectives. Once each risk has been assessed in regard to consequence and likelihood and the risk control systems are in place they need to be assigned to the responsible manager. The extreme or high risks will require a risk treatment plan to be developed. Risks will change during the life cycle of a mining project. Hence, a reliable monitoring system is also required for compliance.CITATION:Jones, J A, 2012. Mine project risk management, in Proceedings Project Evaluation 2012 , pp 117-122 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

By D Flint, O Rindriatmoko

PT FreeportÆs Deep Ore Zone (DOZ) Mine is the latest block cave mine within the East Ertsberg Skarn System (EESS).Issues with undercutting and stress concentrations at the extraction level were experienced, leading to reduced pillar strength.The extraction level-related issues became more pronounced, leading to local panel drift collapse, in an area that was over 100 per cent extraction. A review of ground conditions, panel collapse descriptions, and factors contributing to panel collapse are presented in this paper.

Jan 1, 2005

By X Dahe

SLon vertical ring and pulsating high gradient magnetic separators (VPHGMS) possess the advantages of high efficiency and high reliability in beneficiating weakly magnetic minerals. In recent years, models SLon-2250, SLon-2500, SLon-3000 and SLon-4000 have been developed. This paper gives several examples of their applications in oxidised iron ore and ilmenite processing flow sheets to improve iron and ilmenite recoveries.CITATION:Dahe, X, 2017. Recent development and application of SLon vertical ring and pulsating high gradient magnetic separators in the iron ore and ilmenite processing industries, in Proceedings Iron Ore 2017, pp 461–466 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 24, 2017

By G Siboni, A Correa De Araujo, M Gotelip Barbosa, M J. Venturini

In support of the development of its Liberian iron ore project, ArcelorMittal Mining Research and Development (AM Mining R&D) has performed characterisation and beneficiation test work on drill core samples received from the proposed mine area. In addition to this, a sinter feed product was composed by blending and processing the drill cores in order to predict sintering performance of the ore. This article presents the methodology used to prepare the drill core blend for characterisation, as well as describe the sinter pot trial. The results are presented, demonstrating how important this type of study is for the development of an iron ore deposit.CITATION:Gotelip Barbosa, M, Siboni, G, Venturini, M J and Correa de Araujo, A, 2017. The use of drill core blends to predict sintering performance, in Proceedings Iron Ore 2017, pp 297–302 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 24, 2017

By R P. Varden

This paper looks at the design of the Bentayga raisebore with subsequent back analysis using a LiDAR survey. A search for LiDAR raisebore assessment publications shows little work has been done on this subject. The paper examines the empirical design and RS2 modelling assessment with the bored condition. The high resolution of the LiDAR enabled mapping of weak structures that were located on the geotechnical investigation hole the orientations of which could not be determined. In addition, the scan showed were water ingress was occurring, potential stress overbreak and structural controls on stability. The LiDAR results were able to confirm no additional support work such as a shotcrete liner is necessary. The LiDAR results have been analysed in one metre increments as volume of overbreak against the empirical stability criteria (McCracken & Stacey 1989). The future use of LiDAR mapping over a range of rock mass conditions will provide quantification of the established empirical assessment improving its reliability. It is also a useful and accurate tool to monitor long term stability of a raisebore due to stress change or ore pass due to wear.

Mar 15, 2021

By K Henley

One of the greatest practical difficulties of measuring airblast occurs when a significant wind is blowing onto the microphone. Small windscreens are usually used to mitigate the wind noise on the microphone, but in some wind conditions, sound pressure levels (SPL) of over 120 decibel (linear) are frequently recorded. There are no specific procedures to mitigate the effect of wind noise when measuring airblast in any of the standards or guidelines pertaining to the measurement of airblast from blasting operations, other than the requirement to use an effective windscreen. A search for relevant literature was undertaken and measurements were taken over a period of six months at a test site using alternative microphone measurement methods. Previous researchers’ experiments with windscreens in silenced wind tunnels showed that wind noise can be reduced through the use of large diameter windscreens, and that at low frequencies, the windscreen size and the material type makes no difference to measured SPL values. Other researchers found that wind turbulence caused significant SPL measurement problems. A comparison with field data failed to explain the extremely high SPL recorded by the field microphones at wind velocities much lower than those used in wind tunnel testing. It has been concluded that turbulent airflow over and behind the microphone is a significant contributor to extraneous noise in airblast measurements in windy conditions. This turbulence can be generated by objects upwind of the microphone or by the microphone itself if the windscreen is ineffective. Reducing the wind speed over the microphone by placing it on the ground is the approach required by the international standard for the measurement of noise from wind turbine generators (IEC 61400–11). This paper presents data that illustrates the extent of the problem, reports on the trial of three different microphone mounting locations for measuring airblast from blasting and concludes that in windy conditions, microphones placed on the ground substantially avoid wind problems and do not reduce the measured SPL of the airblast.CITATION:Henley, K, 2015. Reducing the effect of wind on airblast measurement during blasting, in Proceedings 11th International Symposium on Rock Fragmentation by Blasting, pp 485–492 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 24, 2015

Martha Mine is an open pit gold-silver mine, located within the township of Waihi, 150km southeast of Auckland and is operated as a joint venture between Normandy Mining Ltd. 67 %) as Manager and Otter Gold Mines Ltd. (33%). The deposit was historically mined, by underground methods from 1888 to 1952, producing 5.5 moz of gold and 30 moz of silver, from 11 mt of ore. The current operation began in 1988, producing, to June 1999 - 867,245 oz of gold and 5.5 moz of silver from 9.5 mt of ore. The licensed reserves were due to be mined out by late 2000. Consents were granted in December 1998 to allow the expansion of the operation through to 2007 accessing an additional 7.5 mt of ore at 3.4 gpt Au and 26.0 gpt Ag for 800,000 oz of gold and 6.4 moz of silver. The key elements of the expansion are: 1. Pit enlargement 2. Upgraded crushing and material handling facilities 3. Construction of a second tailings storage facility 4. Upgraded water treatment capacity 5. Increased operating capacity This paper presents an update of expansion activities to date.

Jan 1, 1999

By P A. Kirsch, A Hine

Mining is a major global industry that requires the moving of considerable volumes of earth and rock (overburden) to win the valuable ore prior to mineral extraction and processing. As a result of this process, new landscapes are created, both extracted voids and overburden piles, as well as infrastructure for management of mine operations, wastewater, tailings, other raw materials, transportation and extreme rainfall events. Resource companies must develop and obtain regulatory approval for detailed plans that manage this displaced material through all phases of the life-of-mine and rehabilitate the site at the time of closure (including landform stability, revegetation and ongoing management).Individual mine sites operate in long time frames (ten to 50 years), with several mines often operating in the same region, generating cumulative overburden volumes and heavily altering the original landscape. These impacts are universally framed as a negative consequence of the industry, especially by modern society that values natural (and some agricultural) landscapes as pristine and almost sacred. Overburden and tailings are also seen as a problem, and are a significant business cost to mining practice.This paper looks to investigate perceptions of mining and post-mining landscapes, questioning the aesthetically driven emphasis on the ‘natural’. It proposes instead an opportunity to reframe the way we look at overburden and landscape impacts from mining, exploring the possibility of imagined post-mine landscapes unburdened by traditional aesthetic expectations. These landscapes, to be conceived by regional stakeholder roundtables, have the capacity to be built by regional mining consortia as a foundation for sustainable post-mining economies.Post-mine regeneration offers both the motivation and the basic materials to create an altogether new environment from a blank slate. Few circumstances allow the opportunity to truly explore a re-envisioning of the land on a huge scale, and the possibilities merit serious consideration.CITATION:Hine, A?and Kirsch, P?A, 2014. Dreams of futures past – curating post-mining landscapes, in Proceedings Life-of-Mine 2014 , pp 121–138 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 16, 2014

By A D. Campbell, G R. Power

The objective of the draw strategy in a caving mine is to maximise economic return by minimising waste dilution3 and maximising ore recovery4. The draw strategy must also include suitable controls for air blast and mud rush hazards and is highly constrained until continuous cave propagation has been achieved. This paper details a three-year project at the Ernest Henry Mine (EHM), which used cave flow simulation software to develop a draw strategy that increased the mine value by 32 per cent.Dilution and ore loss can be significant in sublevel cave (SLC) operations and result in poor recovery and considerable economic losses. To minimise dilution and ore loss, cellular automata software was used to simulate cave flow over the mine life. The optimisation project required mining footprints for various cut-off grades to be developed. Draw strategies for each mine footprint were then generated using a range of shut-off grades. Economic assessment of each scenario was then conducted to determine the mine footprint and corresponding draw strategy that generated the highest NPV (net present value). The iterative simulation process was improved by developing automated software functions in the flow modelling software to reduce time taken to generate and assess life-of-mine (LOM) draw strategy scenarios.In addition to improving the NPV of the mine, the optimisation project also enabled a decrease in the mine cut-off grade which increased the ore reserve and extended the mine life. Overall, an iterative process of mine planning, cave simulation, economic evaluation and geotechnical analysis was used to significantly increase the economic return of the SLC whilst ensuring caving risks were controlled to an acceptable level.CITATION:Campbell, A D and Power, G R, 2016. Increasing net present value by a third at an operating sublevel cave mine using draw strategy optimisation, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 167–174 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

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