Search Documents

By M L. Leybourne

In 2012, in response to an increasing potential unfunded liability, the Western Australian Government passed the Mining Rehabilitation Fund Act 2012. The intent of this Act was to introduce an annual levy on tenements covered under the Mining Act 1978 based on the area of disturbed land. The fund generated from these levies could then be used to rehabilitate mining sites where all other options to ensure rehabilitation had been exhausted. The fund could also be used to rehabilitate abandoned sites or features which, in Western Australia, number over 10 000.The Mining Rehabilitation Fund (MRF) was implemented on 1 July 2013 for an initial voluntary year. It becomes compulsory on 1 July 2014. By the end of March 2014, nine months into the voluntary period, over $6.5 million had been paid into the fund. The incentive for tenement holders to voluntarily enter the fund was the opportunity to have unconditional performance bonds held against their tenements retired. While there will be circumstances where bonds will continue to be applied, it is the State Government’s intention to retire most of the bonds.The MRF has received mostly accolades from industry and companies that have entered. Most have found the system easy to use. The MRF was also cited as a reason for Western Australia’s improved position in the Fraser Institute’s annual survey of mining jurisdictions. Work is now starting on processes to select priority abandoned mines for rehabilitation.This paper explains the background to the MRF and its development, and reviews its implementation during the first, voluntary, year. It also discusses how the fund will be managed into the future and what this will mean for both abandoned mine features across Western Australia and any future abandoned mine sites.CITATION:Leybourne, M L, 2014. Ensuring rehabilitation into the future – The Western Australian Mining Rehabilitation Fund, in Proceedings Life-of-Mine 2014 , pp 441–448 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 16, 2014

By G Harbort, K Quan

Traditional engineering practice for concentrator design uses a mixture of risk minimisation options and capital minimisation approaches. Often this is based on the preferences and experiences of the engineers involved.A geometallurgical approach involves identifying primary lithology, alteration, and mineral dispersion patterns within a deposit to allow representative samples for test programs. This provides a method to infer from laboratory test results meaningful production data for larger amounts of the ore body. Geometallurgical models can be integrated into the resource block model and subsequent mine plan and can assist in predicting when difficulties in the processing route might be expected, allow adjustment of the design to compensate for these or provide an early warning system so that production forecasts can be more adequately developed. Simulation modelling is the process of creating a computer model of a real system based on mathematical logic. In simulated time, the model explores the randomness and chronological sequencing of events observed on real systems. The objective is to mimic the real system with sufficient accuracy to make predictions of real behaviour under experimental conditions. Amec Foster Wheeler often use the ‘discrete-event’ simulation modelling technique. This method is well suited for inclusion of the statistical variation of effects in unit operation, mechanical availability, throughput and operating strategy (based on historical operating data for equipment downtime), operating schedules and equipment capacity. The net result of the simulation model is an analysis that can quantify risks in terms of system performance and capital and operating costs.CITATION:Harbort, G and Quan, K, 2017. Concentrator design – standard engineering practice versus geometallurgy and simulation, in Proceedings MetPlant 2017, pp 195–206 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 11, 2017

By Waterhouse BJ

Occurrence data of Tastubian,Sterlitamakian, and Aktastinian (all of Sakmarian Stage of Early Permian) brachiopod genera are analysed by Q-mode cluster analysis, principal component analysis, and discriminant analysis based on presence or absence of genera. Five faunal provinces and their corresponding generic associations persisted throughout the Sakmarian Stage. The additional Sasian Province incorporating the Lhasa and Shan-Thai terranes became recognisable in Sterlitarakian and strengthened in òAktastinian, implying a Tastubian-Sterlitamakian rifting event, followed by subsequent northward drift and divergence from Gondwana, and convergence with Laurasia. The nature of Permian 'Tethys' is discussed on the basis of faunal migration and abrupt changes of faunal provinciality in Lhasa and Shan-Thai terranes.

Jan 1, 1990

By B Ellis

Brunswick Mine is one of the largest underground zinc/lead mines in Canada, producing 3.4 million tones of ore annually. As mining activities advance to deeper levels, ground pressure also becomes greater. To cope with the highly stressed ground, the mine has taken some strategic measures to ensure the targeted production level. Such measures include the implementation of a pastefill system and transferring the mining method from primary/secondary stoping to pillarless pyramid stoping. With the pillarless mining method, stope sizes become smaller and the number of active stopes is also less than before. In addition, mining sequence and cycle time have to be strictly followed according to production schedule. The blasting project described in this paper tackles one of the steps in the mining cycle aimed at shortening the blasting cycle time in a stope. Furthermore, this project was conducted and managed with the Six Sigma initiative in Noranda which was implemented in the fall of 1999. Like a typical process review, the blasting operation was examined by breaking it down into many steps that can be quantified and measured. Each activity was then correlated with different factors associated with blast design as well as blast operations underground. It was found that the utilisation of voids plays a key role in the blasting cycle time. With improved void utilisation ratio, blasting cycle time has been reduced from an average of 12 shifts to ten shifts per stope. This improvement translates into approximately 180 000 tonnes of ore being blasted without any increase in manpower. This paper presents the technical aspects of the study, as well as some operational issues and improvements made during the project.

Jan 1, 2001

By M A. Ohsberg, A C. Robertson

Quarrying in Australia accounts for a total annual production of around 200 Mt/a of sand, aggregate and materials used in construction. This material has an annual value of the order of $2 billion and, combined with transport costs of a further $1 billion, the annual value of quarry products are in excess of $3 billion. Currently all of the production of construction materials in Australia is from open cut quarrying or dredging. This paper focuses on the extraction of material by underground mining methods, termed æunderground quarryingÆ. The paper considers a case study for future underground development expansion of the existing open cut Mt Coot-tha quarry, located 5 km from the centre of Brisbane, Queensland.

Jan 1, 1999

By Y Peng, C Burns, Y Mu, R A. Lauten

In both laboratory flotation experiments and from analysing the composition of the lead concentrate at the Boliden Tara lead-zinc mine in Ireland, it has been found that F-250 may replace cyanide as a pyrite depressant. Replacement or reduction of the cyanide consumption is highly desirable from a safety perspective given the toxicity of cyanide. Scrutiny of results from the plant trial indicate that F-250 is less efficient as a cyanide depressant when the flotation feed contains high levels of pyrite. Statistical analysis of the results does not capture this trend, illustrating a need to collect more data at higher pyrite ore levels. A recent model proposed for biopolymer-induced pyrite depression is reviewed and discussed next to the suggested mechanism for pyrite depression via cyanide. Review of the interactions causing pyrite depression point to different manners in achieving depression. In light of the less efficient F-250 pyrite depression at high pyrite levels, it is speculated if the two depressants may act synergistically at high levels of pyrite in the feed. CITATION:Lauten, R A, Burns, C, Mu, Y and Peng, Y, 2018. Pyrite depression at Boliden Tara using F-250 – a biopolymer, in Proceedings 14th AusIMM Mill Operators' Conference 2018, pp 385–392 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 29, 2018

By R M. Yanamandra, M Kumar, S K. Tripathy, N Mangadoddy, P Sudikondala

Spiral concentrators are one of the flowing film gravity concentration devices used to beneficiate coal and mineral ores. The aim of the current study is to understand the particulate flow and separation performance of an LD9 spiral concentrator using a multi-phase Computational Fluid Dynamics (CFD) model. The CFD model utilises the Algebraic slip mixture model to simulate particulate flows. The model employs the Renormalisation group (RNG) k-ɛ turbulence models to resolve the fluid turbulence. Initially, the volume of fluid method was adopted to track the water-air interface. Simulations were then carried out at low (0.3 and 3 wt.%) and moderate (15 wt.%) solids concentrations. Multiple particle-phase representing particles of poly sizes (75–1400 µm) and multi-densities (1450–2650 kg/m3 ) were simulated to study the particle segregation on the spiral trough surface. The numerical predictions are compared with the literature performance data at a diluted pulp flow rate of 6 m3 /hr. The results were found in close agreement. Further, the same CFD model is used to study the change in pulp velocity, streamflow rates, and separation performance at increasing solids concentration. For the same density particles, Fine particles mostly show higher volume concentration in the middle and outer trough regions, whereas coarse particles show higher volume concentration in the interior and central trough regions. It implies that the fine particles mostly segregate towards the outer region, and dense particles segregate towards the axial column.

Aug 24, 2022

By Noller B. N, McGill R. A

The Alligator Rivers Region has been the scene of one of Australia's most intensive environmental monitoring efforts since the current generation of uranium mining was mooted in the 1970s. Prior to mining, the local environment and the nature of potential impacts were not well known. The initial monitoring programs therefore included large baseline characterisation and research components. After some 15 years, water, soil and sediment monitoring programs have been reduced to a fraction of their early size, as the mining and natural systems became better known and characterised, and the actual nature of the environmental impacts were established. Modem techniques allow much more rapid and thorough identification of chemical species and elements of concern, allowing much more focused monitoring programs to be designed. In the 1980s data collection was emphasised at the expense of interpretation, and monitoring programs were maintained at much higher levels than were in fact required. It is now clear that investigations are important and should be distinguished from monitoring programs, and that the timely interpretation of investigations and implementation of recommendations can greatly reduce the effort and expense that can be involved in a monitoring program. Monitoring programs based on a sound understanding of potential environmental impact may then be efficient and cost-effective, yet provide sufficient information to assess the environmental impact of mining, guide further environmental protection measures when problems are detected, and demonstrate compliance with regulatory requirements.

Jan 1, 1994

By J E. Everett, K Jupp, T J. Howard

Simulation modelling is a practice commonly used in the mining industry to evaluate alternative process designs. Such modelling is typically undertaken as an optimisation study to increase the efficiencies, productivity and product quality of operating mines. In this situation, real short-term grade variability data of extracted ore are available from production records as input data into the simulation.There is also a need for simulation modelling to be performed before mines are approved for construction to clarify the grade variability characteristics that can be expected from the operating mine and assist in the optimisation of the process design. In this situation no historical short-term grade variability data are available. To achieve meaningful and reliable results from a simulation it is necessary to have input data for the ore to be extracted from the pits, representative of the short-term grade variability that would be expected for the operating mine.This paper describes an example of a path taken to generate realistic input data.A method described as composite cut-off criterion was used to distinguish ore from waste, which gave substantially greater recovered tonnage at target grade compared to the conventional quadrant cut-off grade criteria.The only data available for the project was resource model data in the form of kriged block models, which are known to underestimate true ore grade variability. To achieve realistic results from the simulation it was essential to increase this variability while maintaining the accurate average grades. Areas of certain deposits that were modelled using both kriging and conditional simulation estimation techniques were quantitatively compared to establish the comparative variance and the kriged data was modified to match the conditionally simulated variance.A realistic mining model was generated via a process of discretisation and regularisation of the resource blocks. Quantitative assessment demonstrated that this method adequately compensated for ore dilution and that adjustment for ore loss was not required due to an ore skin surrounding the edge blocks.The conditioned data was then used to generate a schedule of daily mine extraction, considering grade variability, tonnage, equipment constraints and extensive blended-in-blended-out precrusher stockpiles to feed into the process design simulations.For the precrusher stockpiles a number of alternative allocation criteria were examined for ore being extracted from the pits to identify the best method in achieving reduced variability through the daily scheduling system. The study concluded that a single analyte separation criterion produced acceptable variability with minimal complexity.The blending efficiency of manually stacked and reclaimed precrusher stockpiles was studied to determine a realistic blending efficiency within the pile. A recommended method of building and reclaiming was determined to give maximum blending efficiency.Finally, the data was used as input into process design simulation models; simulation from crusher feed to shiploading demonstrating that control of shipment grade variability was achievable and that the conditioning of the data delivered realistic results.CITATION:Jupp, K, Howard, T J and Everett, J E, 2013. Generating synthetic data for simulation modelling in iron ore, in Proceedings The Second AusIMM International Geometallurgy Conference (GeoMet) 2013 , pp 231-238 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 29, 2013

By G R. Ballantyne, B Putland, I Lovatt, M Di Trento

The Tropicana Gold Mine, owned by AngloGold Ashanti Australia Ltd (70% owned and managed) and Independence Group NL (30%) is located 330 kilometres east-northeast of Kalgoorlie, Australia, in the newly developed Albany-Fraser Orogen. Following extensive feasibility studies, a high pressure grinding roll (HPGR)-ball milling circuit was selected based on the reduced power requirements and thus reduced operating expenses. The HPGR-ball mill circuit was estimated to require 75% of the energy of a standard semi-autogenous grinding (SAG) mill circuit. Even with an anticipated greater capital cost, the HPGR-ball mill circuit was found to give significantly better financial returns in all cases investigated in the feasibility study. A comparison between the specific energy requirements of the HPGR, crush and SAG based circuits (SABC) from the feasibility work was conducted and the HPGR circuit was found to be considerably more energy efficient. A survey was conducted and the efficiency of the HPGR was similar to both the overall circuit design and the HPGR laboratory results, reflecting the accuracy that is possible for design and operation of HPGR circuits.Between 2015 to 2016, the Tropicana circuit has achieved a 20% increase in throughput from 780 to 930 t/h, and this increase has been maintained in 2017. This improvement can largely be attributed to upgrades to material handling processes, increased HPGR speed and smaller HPGR screen apertures. The result of these changes has been to increase the ball mill capacity by increasing the breakage conducted by the HPGR.CITATION:Ballantyne, G R, Di Trento, M, Lovatt, I and Putland, B, 2017. Recent improvements in the milling circuit at Tropicana mine, in Proceedings MetPlant 2017, pp 73–83 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 11, 2017

Wetherstones gold deposit is located just east of the township of Lawrence, in the Otago District of the South Island, New Zealand. The paper will describe aspects of the mining and exploration history of the Wetherstones gold field, current knowledge of the geology of the deposit, and speculate on possible outcomes of exploration in the modern era.   As at the famed Gabriels Gully situated nearby, most of the Wetherstones gold is/was contained in, or recycled into modern drainages from, the Blue Spur Conglomerate (æBSCÆ). The BSC is the basal member of a wedge of auriferous non-marine sediments of latest Cretaceous age which are tilted against the Tuapeka Fault Zone, a structure of regional dimensions. In particular mineralisation of elevated grade (which cannot yet be reliably estimated) appears to be concentrated in an elongate basement depression (ægutterÆ) of width around 100 m, variable thickness to a few metres, and axial length in excess of 500 m. The gutter plunges from the base of alluvial mining (where it has been partly exploited by underground methods) to depths of more than 100 m, beyond which it remains open and untested.   The prospects for a revival of mining at Wetherstones depend upon confirmation of what is here inferred to exist, and the discovery of additional gold. The economic prospects of the project however are enhanced by what is known or indicated of the geographic location, and anticipated geologic, mining and metallurgical characteristics of the mineralisation, and consequent anticipated environmental management issues.   The recognition of gold contained in pyrite in the BSC represents an upside to project economics which has never previously been evaluated. The Wetherstones Basin covers more than five square kilometres in areal extent. There is no modern exploration record of the majority of this area, leaving open the prospect of the discovery of additional gutters, and primary mineralisation in the underlying schist.   Australasia Gold Ltd has embarked on a program to reassess the potential resources of the Wetherstones gold mineralisation, and to evaluate the feasibility of mining.

Jan 1, 2004

By J Bean

Iluka Resources Ltd developed the Jacinth-Ambrosia Mine (Jacinth) in the Eucla Basin during 2009 and 2010. In this arid climate the operation relies on hyper-saline groundwater from a palaeochannel for process and potable water supplies. The water is hyper-saline, acidic and mildly reducing, with high ferrous iron concentrations. Ferrolysis commences on exposure of water to oxygen, resulting in increased acidity and the conversion of dissolved ferrous iron to insoluble ferrihydrite. The unstable groundwater forces a careful balance between interventions relating to maintaining pipeline efficiency, corrosion protection and processing aspects. Providing an oxidising environment at the head of the pipeline will result in the precipitation of akaganenite and goethite in the pipeline, which over time reduces pipeline efficiency. However, sending too much ferrous iron forward may reduce processing performance.The processing plant experiences changes in water chemistry in response to the variability of iron concentrations and pH within the pipeline, and the spatial and chemical variability of ore. As the main orebody at Jacinth contains little buffering capacity a source of carbonate in the overburden is carefully used to allow the cost-effective control of process water pH.This paper highlights the importance of understanding the chemistry of saline make-up water, ore, and overburden when designing water treatment facilities and heavy mineral processing facilities.

Oct 5, 2011

By S Wangchai, D B. Hastie, P W. Wypych, A P. Grima

Industries that handle and process ‘dusty’ ores are facing increasingly difficult challenges to ensure sustainable operation and development. Most existing dust-control measures treat only the symptoms of dust generation and do not deal with the root cause/s of the problem. Many of these methods are also relatively inefficient in terms of controlling dust emissions. This paper summarises the various existing options available for dust control and some of their features, advantages and disadvantages. It then describes some of the new technologies that are being researched, developed and employed to minimise dust emissions by addressing dustability or dustiness and the dust generation mechanisms found in industry. Recent research results and case studies are presented to demonstrate some interesting findings obtained from this work. With improved understanding and modelling of dust generation mechanisms and bulk material dustiness, it is possible to achieve a step-change improvement in the design, troubleshooting and application of more efficient dust-control technologies.CITATION:Wypych, P W, Hastie, D B, Wangchai, S and Grima, A P, 2015. Research and application of new dust control technologies for the iron ore industry, in Proceedings Iron Ore 2015, pp 529–536 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

By J J. L du Plessis, A Spaeth

The objective of this paper is to demonstrate the efficiency of machine-mounted active explosion suppression systems (AESS). Their proven effectiveness against methane explosions is highlighted, as well as their additional potential when used as an early warning system should frictional sparks occur during the coal-cutting operation at the coalface.Methane and coal dust explosions remain one of the primary and unpredictable risks in underground coal mining. Although technologies such as proactive ventilation, methane monitoring and wet-head cutting systems are widely used as preventative measures, there are no fail-safe controls able to reduce the risk to zero. None of these controls is designed to be able to counter the negligence associated with human error or to deal with rapidly changing face conditions which could lead to flammable gas ignitions. Machine-mounted AESS have been installed on various continuous miners as an additional control to further reduce the risk of ignitions and to act as a safety shield when all the other precautions taken have failed. This was the primary motive for the development of AESS. As an additional feature, the ExploSpot® AESS is being enhanced to identify frictional ignition sources at the coalface that reach a predefined monitoring level. This functionality may serve as a further effective preventative measure.As part of ensuring coalmine operational safety, the detection of frictional ignitions can play a huge role in creating heightened awareness of potentially dangerous situations. By being able to process the frictional spark burning pattern, the AESS could support the decision-making process regarding whether to continue the coal-cutting operation, whether there is a need for maintenance or whether the operation should be stopped completely due to the increased risk of a flammable gas ignition and an ensuing explosion.CITATION:Spaeth, A and du Plessis, J J L, 2015. Enhanced risk reduction using early warning technologies embedded in active explosion suppression systems, in Proceedings The Australian Mine Ventilation Conference, pp 315–322 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 31, 2015

The Key Centre for Mines consists of the School of Mines of the University of New South Wales and the Departments of Geology and Civil and Mining Engineering of Wollongong University. The Key Centre for Mines/International promotes, markets and develops overseas activities in applied geology, mining engineering, mineral processing and extractive metallurgy specifically in response to the perceived needs in the region for mineral resource and other related earth-science based development. the Key Centre for Mines/International will be involved in the overseas marketing of formal courses; special training activities such as short courses and in-house programs; technical and educational consultancy; research and development projects, and in the establishment of regional links through twinning, exchange and various network arrangements with other organisations in the region. Activities which are now being developed include a training program for Korean mining engineers and geologists, teaching and curriculum development in the Mineral Resources Engineering Faculty of the University Sains Malaysia and a staff development proposal for the Department of Geotechnology of Khon Kaen University, Thailand

Jan 1, 1990

By Pak DL

Over the last decade computers have become an essential element in assessing the economic feasibility of mining new mineral deposits and in assisting a variety of related support functions. A broad overview is given of the many technical application areas where computers are contributing to the mining industry with reference to work being done on the evaluation of drill hole information, mineral inventory modelling, ore reserve estimation, financial analysis, process simulation, process control, workshop job scheduling, PERT applications, and com- puter aided drafting. In all these areas the computer has greatly reduced the manual effort involved in looking at alternatives. It has had a significant effect in eliminating delays in revising calculations, or rescheduling activities to incorporate new data or cater for changing conditions, while at the same time providing more accurate and prompt information for the management decision making Process.

Jan 1, 1980

By J Mukhopadhyay, J Gutzmer

Most world-class high-grade (60 - 67 wt per cent Fe) hematite iron ore deposits are the product of enrichment of Precambrian iron-formations but processes responsible for enrichment are still unclear. Different models, ranging from syngenetic and diagenetic (King, 1989), deep-seated hydrothermal (Powell et al, 1999; Barley et al, 1999; Taylor et al, 2001; Gutzmer et al, 2002) and ancient supergene (Morris, 1980; 1985; Van Schalkwyk and Beukes, 1986) to modern supergene (MacLeod, 1966) have been suggested. The high-grade hematite deposits stand in contrast to martiteûgoethite ores which are generally accepted to be the result of supergene enrichment of iron-formation because they are found along Cretaceous to Tertiary lateritic weathering profiles (Morris, 1980; Harmsworth et al, 1990). Uncertainties about the origin of the high-grade hematite ores appear largely due to the monomineralic composition of the ores. They are almost exclusively composed of hematite (as microcrystalline hematite and martite), a mineral with wide stability field and very simple chemical composition that reveals little about its origin. Second, many of the deposits have been overprinted by later deformation and chemical weathering obscuring primary ore characteristics and zonation (Taylor et al, 2001). Third, surprisingly few detailed geological studies have been undertaken on the deposits with the aim of unraveling ore genesis. Most studies focus on the present-day structure of orebodies and their general physical-chemical composition for mining and beneficiation purposes. A more thorough understanding of the origin of high-grade hematite iron ore deposits may be gained by combining available mining-orientated data with systematic petrographic-geochemical analyses of different ore generations and hematite phases. This paper presents a first summary of results of an ongoing study, started some two years ago, of high-grade iron ore deposits in South Africa, India and Brazil, including a comparison with the rather well studied deposits of the Hamersley Province in Australia.

Jan 1, 2002

By R LEATHAM

Long hole drilling underground has come a long way since 'down the hole' surface drills were first taken underground. The underground miners have progressively developed the use of long hole stope drilling from the 'quarry blast' to a precise and selective removal of ore while leaving the remaining structure as undamaged as possible. To reach this position has involved the development of equipment and explosives to give the desired results. This paper reviews some aspects of long hole stope production drilling.

Jan 1, 1992

By F F. Pitard

Observation from attending many conferences around the world reveals that many people are constantly shifting from the word ‘error’ to the word ‘uncertainty’ without a clear vision of what the subtle difference is. The same applies to a large swath of the scientific literature, in which these two concepts are unfortunately often used synonymously, which is a scientific flaw of the first order. In practice, as demonstrated in the Theory of Sampling (TOS), there are both sampling errors and sampling uncertainties. Sampling errors can easily be preventively minimised, while sampling uncertainty for a preselected sampling protocol is inevitable. P M Gy’s work, supported by G Matheron’s critical reviews, demonstrates beyond any possible doubt that sampling uncertainty cannot be achieved if sampling errors are not preventively minimised by applying very stringent rules that are too often ignored by sampling practitioners. A clarification, in line with the TOS, is presented to mitigate the confusion created by circles favouring the use of uncertainty versus the use of the word error. Both words are very different in nature and scope and they are both necessary in their due place and time.CITATION:Pitard, F F, 2017. From errors to uncertainty – a clarification for proper use by the Theory of Sampling, in Proceedings Eighth World Conference on Sampling and Blending , pp 355–358 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2017

By S G. Gemell

"The financial model is an integral component of any project evaluation based on mineral resources, ore reserves and (at least internally) exploration targets. Given the unity of purpose for preparing financial models for project evaluation purposes, the diversity of both format and content of the finalised models is surprising. Many models are prepared by staff or consultants who are comfortable with a particular format that may be used for other purposes, such as budget preparation or financial reporting. It is natural in these situations that the practitioner will take these models and adapt them to the purpose. The end result may or may not succeed in providing a clear, accurate and sufficiently detailed view of the project’s economic viability.When preparing a model, the practitioner should be cognisant of the interpretation and review, or audit, process. The auditor may be a consultant or employee of a bank, potential equity provider or of the project sponsor itself. Depending upon the scale of the project and the level of participation of the entity that the auditor represents, the financial model will be interrogated more or less rigorously. In any event, the end user will require the model to permit easy change of inputs and will wish to confirm that such change is appropriately and thoroughly transmitted throughout.Accordingly, there are some ‘dos and don’ts’ that can be readily applied in the creation of the financial model that will greatly assist the end user, not just in the change of inputs, but also in reviewing the model’s integrity. The less time and effort required by an auditor in this regard is reflected directly in the cost of the review process.CITATION:Gemell, S G, 2016. Financial modelling with the auditor in mind, in Proceedings Project Evaluation 2016, pp 172–180 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016