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This paper compares and evaluates the impact of income tax and value-added tax on the decision to explore for minerals or to develop a mine in four countries: Australia, Papua New Guinea, Argentina and Indonesia. Three aspects are considered in depth:- domestic tax rules applicable to mining projects;- taxation of foreign mining investment and foreign providers of expertise;- taxation of project finance (other than equity) from foreign sources.Specific tax issues discussed include tax deductibility of various costs, treatment of tax losses, special tax incentives, comparative treatment of various corporate structures, non-resident withholding taxes, and tax costs of various forms of project finance. The paper also illustrates the comparative impact of income tax on rates of return by means of a simulation of a mining project in each of the four countries. The simulation demonstrates why the highest rate of return may be obtained in Argentina and the lowest in Australia.Relevant features of the income tax systems in each country (at 15 February 1990) are summarized and compared in several tables annexed to the naner.

Jan 1, 1990

By S Cossfo Torres

Minera PenmontÆs gold mine, La Herradura, is located at the northwestern Mexican state of Sonora and consists of an open pit mine and heap leaching facility for the recovery of gold. The production began in July 1998, and today La Herradura produces about 200 000 oz of gold per year. Standard sampling and assaying protocols were established during exploration based on heterogeneity tests. However, at deeper zones of the pit, coarse gold became evident and it was necessary to develop a new sampling protocol in order to minimise the fundamental error and improve the metallurgical accounting. This new sampling protocol requires cyanide leaching the whole pulverised sample from the blasthole, assaying pregnant solution and fire assaying 50 g of tailings. A sampling study was performed on 195 blasthole samples analysing gold under the standard and new protocols. The new protocol demonstrated that the original one underestimated gold grade by approximately 27 per cent, with impacts on ore misclassification and metallurgical accounting. According to the ore grade control system, mineral with gold grade above 0.35 g/t was sent to the leach pad and mineral with lower grade was classified as waste. Based on the sampling study, it was decided to classify a low-grade ore with gold assay between 0.20 and 0.35 g/t which was stored for future treatment under better gold prices or should mine production decrease. These two conditions were present during 2005 and 2006, when about 3.5 Mt of low-grade ore were leached.

Jan 1, 2008

The seminar had its origins in an Inquiry into the Box Flat Disaster and one of the conclusions from this Inquiry was that there should be a better dissemination of technical knowledge and the results of research work. As a result of this Mr. W. Roach, Chief Inspector of Coal Mines in Queensland and Mr. R. Menzies, Chief Inspector of Coal Mines in N.S.W. had a meeting to see how this could be done. They concluded that it would be difficult to have the sort of regular meetings that would be possible where distance was not significant, but a seminar would be a major step toward satisfying this particular conclusion of this Inquiry. As a consequence, Mr. Roach, who is on the Committee of the Southern Queensland Branch of the Institute, suggested when the Branch programme was being planned this year that a meeting of this type should be held, and the Mine Fires Seminar which was held today is the result. We have received a great deal of support in arranging the Seminar. First and foremost I wish to acknowledge support from the National Coal Board in United Kingdom. Not only have they released Dr. Willett for a period of six to seven weeks to visit Australia, conduct the Seminar and give a series of lectures in various areas through the country, they have also borne the brunt of the financial support that has been necessary to make this possible. In addition we have received considerable support from many organisations in Australia. I 'mentioned this

Jan 1, 1973

The introduction of legal certification of mine managers is a matter of history. It was introduced as part of legislation for mine safety. It has been said that such legislat- ion was written in blood. Like all legislation this legislation is divided into three sections; commands, obligations and sanctions. While legislation in all States on this subject is similar, the differences are great enough to have prompted the preparation of a Uniform Code by the Annual Conference of Chief Inspectors of Mines. This Uniform Code has not been adopted fully by any State to date. Legal certification of mine managers has made managers more aware of the requirements of the legislation covering their industry, legislation that reads as a summary on past accidents and methods of preventing them. While budding managers spend considerable' time in their early years in the preparation for certification, history has shown that the industry has benefited from their efforts. A better knowledge of the safety acts by the managers has produced safer operations, and a higher standard of management has raised the technical standards of mining operations to a stage where Australia can be proud.

Jan 1, 1980

In recent years a number of explosive blends including ANFO, emulsion and watergel products have been used in a variety of ground types and applications. These `standard' explosives' technologies are not new, but out of the uses and applications, have sprung a new generation of tailored explosives that match the ground type and the operating environment. This is in stark contrast to the norm, where various patterns and loading configurations have traditionally been designed to accommodate the explosive. This paper discusses these tailored explosives and the explosives' technology behind why they work. Active tailoring of explosive formulations can save mining dollars while essentially leaving the explosive price unchanged. Tailoring explosives may lead to increased rock breakage, heave, digging rates; lower digging maintenance costs and in some cases replacing earth moving machinery altogether. Tailored explosives may have other benefits such as reduced over pressure compared with standard alternatives. The tailoring of explosive performance generally involves three major methods (other than changing the bulk density and sensitivity): (i) replacing fast burning reactants with slower burning reactants or vice versa; or (ii) leaving the explosive intact and diluting the entire explosive with slow burning or `inert' material; or (iii) changing the concentration of the fuel/oxidiser mix. When tailoring explosives for particular applications, authorising, testing, costing, manufacturing, and delivery systems must also be taken into account.

Jan 1, 1995

By Bowmaker MD

Zinc and lead sulphide flotation con centrates containing from 0.02 to 0.20% Cd are roasted on an updraught sinter machine at the Cockle Creek Works of Sulphide Corp- oration Pty. Limited to provide sinter for simultaneous smelting of zinc and lead in an Imperial Smelting Furnace (I.S.F.). The major portion (about 85%) of cad- mium in concentrate feed to the Sinter Plant is eliminated with sinter fume and is rec- overed by weak acid leaching in the Cadmium Plant'followed by counter-current decantat- ion, ion exchange concentration, precipitat- ion of cadmium sponge and partial refining to caustic refined cadmium metal. Cadmium not eliminated during sintering is volatilised in the I.S.F. and subsequently recovered as zinc alloy by distillation in the zinc ref- ining columns of the Zinc Refluxer. The partially refined cadmium metal and cadmium- zinc alloy are blended as feed to the cadm- ium refining column where separation and recovery of cadmium is effected. Condensate from the column is further refined under caustic soda flux and cast into anode shapes. Production is 200 t.p.a. at 85% recovery of cadmium in concentrates. Emphasis is placed on changes from the practice described by Baker and Munro (1965) and upon operation

Jan 1, 1972

By E Topal

Risk and uncertainty are attached to mining projects, and making decisions, hedging, future investment and evaluation of mining projects depend on forecasting the future price. The future technologic developments in mining will be primarily influenced by the future commodity prices. A few approaches, with different confidences are proposed to predict price movement in the future. This research introduces a new comprehensive version of the mean reverting jump diffusion model for natural-resource commodity prices. The novel model proposes that the historical data of mineral commodities have three terms to demonstrate fluctuation of prices: mean reversion component, diffusion component and jump component. The model calculates each term individually to compute the future prices of mineral commodities. Subsequently, in the second section of the paper, the model is implemented for monthly historical data of gold price from January 1968 to May 2008. This research is investigating the relationship between the historical oil price and inflation with the gold price. This is followed by a future estimation of gold price fluctuations up to 2018. The results from the application of this new method are discussed in the context of how they accurately replicate the historical gold price and how they can predict the future gold price.

Jan 1, 2008

By Braham B

The Australian mining industry isstill labouring under the impression. created by the Fitzgerald Report that it does not pay suffic- ient tax. This would appear to be the raison d'etre of the resource rent tax debate. The authors quantitatively compare the cash flows to the mine and government resulting from a large strip coal mine in central Queensland under a number of Australian and international taxation policies. The Liberal government policies are found to be internationally competitive while the Labor 1975 policy is excessively punitive. The present value of the returns to the public from the Liberal 1977 policy vary between three and six times the net present value to the mine, which belies the necessity for the imposition of a super tax. The levelling of a special royalty, excess rail freight, by Queensland could severely re- strict the development of new mines in the Bowen Basin. The impact of excessive freight rates is analysed on a combined strip-deep mine typical of the new projects nearing development in the region. Otherwise economic mines can be made marginal or even sub economic by this tax. Even with moderate rail freights, the mining tax laws of New South Wales are more favourable to the industry than are Queensland's.

Jan 1, 1978

Past and present developments in the use of blast furnace slag in the manufacture of glass are outlined. The crude slag from Port Kembla is beneficiated by the Mineral Resources Division of Australian Consolidated Industries Ltd. at Mascot using a dry magnetic separation process which reduces the iron level in the slag to an acceptable value, The chemical and physical properties of both the crude and beneficiated slag are given and compared with those of other slags used in the manufacture of glass. Slag is added to intro- duce alumina into the glass and its addition to the glass batch also results in faster melting and refining. Slag was first used in Australia in 1968 and its use has increased steadily year by year. At present about 16 000 tonnes of slag are used per year, mainly in amber and white glass. Beneficiated slag is used'in three plants to supply all the alumina required in the amber glass and in four plants to supply part of the alumina required in the white glass, the amount added depending on the acceptable iron level in the glass. Slag is also used in limited quantities in the manufacture of both dark and light green glass.

Jan 1, 1979

The Bowen Basin of Queensland and the Hunter Valley of New South Wales are the two largest black coal producing areas in Australia. Mining activities require the availability of large on-lease storages for water and tailings. The legislative framework for the regulation of large dams is slightly different between the states. The paper provides a broad outline of the regulatory framework in each state, with particular reference to Queensland and New South Wales. In New South Wales, water storages and tailings dams are treated similarly by the regulator. Under the Queensland Water Act 2000, now proclaimed, referable dams are restricted to water supply dams the failure of which involves population at risk downstream. Tailings dams are excluded, being deemed hazardous waste dams regulated under the Environment Protection Act 1994. These storage facilities are required to include a ædesign storage allowanceÆ so that the possibility of spillway discharges is minimised. New South Wales is moving toward this requirement. A curious anomaly is emerging in Queensland: the legislative definition of hazardous waste û material resulting from the processing of minerals û does not extend to coal tailings since coal is not included in the definition of a mineral. The paper explores this and other ramifications for mining operations of the new legislation as well as general trends in criteria affecting the cost of providing water and tailings storages.

Jan 1, 2003

This paper describes an investigation of the sampling problems which contributed to erroneous Concentrator production forecasts at the mining operation of Bougainville Copper Ltd (BCL) in the North Solomons province of Papua/New Guinea.Reference figures provided by independently verified commercial shipment data demonstrated the existence of a bias in the calculated Concentrator production; the challenge was to identify systematic errors in each of the contributory measurements (feed tonnage and feed, tailings and concentrate grades).The uncertainty surrounding specific sampling and measurement errors precluded optimum metallurgical control and performance of the milling circuit, encouraged disputes about the difference between Mine versus Concentrator production estimates, and cast some doubt on efforts to follow political guidelines concerning a maximum feed tonnage or recovery oriented mill operating concept.An evaluation of routine results as well as specifically targeted test work identified the sampling errors associated with measured individual parameters.The emphasis in this report is on the procedure for quantitative error assessments.The measured performance of a mineral dressing plant is subject to a systematic error balance which can be derived from the more familiar weight and metal balances such as the two- or three-product formula.The resulting equations are generally valid, and they are applied to the measurements obtained at BCL's Concentrator to illustrate the method.

Jan 1, 1976

By P J. Harper

Maximising shareholder value is a widely stated strategic goal of many mining companies. Mining projects can be capital intensive and achieving good returns is essential to encourage future investment in the industry. Despite the widely accepted importance of shareholder value, the minerals industry is often accused of providing relatively poor returns when compared to other industries. There are many recent and well publicised examples of minerals companies that have failed to deliver value to their shareholders. There are numerous business improvement initiatives employed within the mining industry to assist mine operators improve performance. Some are more effective at creating value than others. Benchmarking is one technique that is commonly used to identify performance gaps and target and prioritise opportunities for improvement. However to be effective, Benchmarking must be used appropriately and result in actions that lead to measurable operational improvement. When conducting a Benchmarking project it is important to remember that the aim should be to improve value. For this to be achieved, the strategic goals must be incorporated into the process. This paper details a structured and comprehensive approach to conducting a successful Benchmarking project. Focusing on Benchmarking as a technique for measuring and improving operational performance in underground mines, the underlying drivers of best practice in underground mining are identified.

Jan 1, 2005

The Perth Mint receives gold and silver from various sources for evaluation and refining. The metals are received in many forms and vary widely in assay. Refining is carried out using the Miller Process and the and the resulting market quality bullion is sold in a range of weights and alloys to suit the international bullion market and public demand. INTRODUCTION The Perth Mint was established in the late nineties as a branch of the Royal Mint, London, to refine the gold from the newly established gold- fields in Western Australia. The branch was opened for business in June, 1899. After refining, the bulk of the gold was used in the manufacture of sovereigns and half-sovereigns. Nowadays, although most of the gold received comes from the W.A. goldfields, some gold is deposited by producers in other states and in Papua-New Guinea, as well as scrap and trade wastes from manufacturing jewellers and old jewellery from the general public. Silver is deposited in the form of old silverware, recoveries from-photographic processes etc. Gold or silver may be lodged at the Mint in person, through a bank or other agency or by registered post. Telegraphic advice is usually given when gold is sent by the latter, so that insurance may be effected.

Jan 1, 1982

The flotation circuit handling Peko ore at Peko Mines N.L. was examined in July 1970 with a view to determining simple changes in circuitry or reagents which could improve the grade and recovery of the final copper concentrates. The investigation included sampling over one shift followed by detailed testing of the samples by sizing-assays, sizing-mineralogy and sizing-liberation. Mass balances were carried out over total streams, the component minerals and the copper contents. Some laboratory work was carried out to assess the effect of salinity on flotation. In order to handle the sizing-mineralogy calculations a computer programme was set up. The raw data were corrected for locking factors, then mineral and elemental distributions cal- culated for each screen fraction and the total sample. Calculated assays from grain counting were compared with chemical assays. Recoveries through the size-ranges re- vealed very rapid flotation of copper minerals at sizes below 350 mesh. This pointed to a possible circuit improvement by desliming rougher tailings ahead of the scavenger stage. A strong correlation was found between water in concentrates and gangue recovery for the subsieve sizes. This pointed to clean water additions to the cleaner circuit as a way to 1 Project Consultant, The Australian Mineral Development Laboratories, Adelaide, South Australia.

Jan 1, 1972

By Nettle W. H V

THE past few years have seen a considerable expansion of the roasting of blende in Australia. The bulk of this blende is Zinciferous concentrate from Broken Hill and now forms a very considerable source of sulphur for the acid manufacture. It will bereadily conceded that Australian sentiment is in favour of utilising all known potential wealth, especially that won from below ground, as this once disposed of is gone forever. If Australia does not make sulphuric acid from her sulphide ores we may be sure that the purchaser of these ores will do so if in any way possible. It must not be assumed, then, that the difficulties met are mentioned with the idea of undue criticism, but rather to show that, although most of the intial troubles have been overcome, there are still a few to be encountered; and with the hope that comment brought forth will aid in the solution of the problems facing an industry at present little more than in its childhood as far as Australia is concerned.Blende roasting is done in mechanical furnaces of various makes, and mostly without the aid of other fuel than the sulphur in the ore. It will be our aim to touch on the various difficulties in the order in which they occur in the train from furnace to acid plant.

Jan 1, 1926

Engineering availability of the 120/200 tonne Wabco haulpak fleet at Mt. Whaleback was in the mid fifties and unstable. The project to achieve a reliable 66% during 1980 highlighted "plannable" maintenance, short cycle scheduling, condition monitoring, backlog control, and, above all, the importance of involving all affected people. It is not sufficient for consultants to design systems and make them work. The people who use the system must understand it, support it and "own" it. In this way, they will develop it and improve results after the outside help has been withdrawn INTRODUCTION In early 1979, PA proposed a programme to improve engineering availability of the Mt. Newman Mining fleet of 70 Wabco haulpak trucks of which 53 were 120 tonne and 17 were 200 tonne units. (Subsequently five 200 tonne trucks from Hamersley Iron were added to the fleet). The ore truck workshop was also responsible for 75 tonne trucks used as water trucks and general purpose vehicles. The need for action was clear. The fleet was achieving availability in the "mid fifties" with wide variations indicating that the fleet was becoming unreliable. Projected tonnages required a reliable 66% availability to be

Jan 1, 1982

THIS SYMPOSIUM ON AUSTRALIAN BEACH SANDS IS MOST TIMELY; WHEN WE ARE APPROACHING PEAK PRODUCTION FROM THESE RESOURCES AND WHEN PRICES ARE GOOD, BUT THE RESOURCES CAN BE SEEN TO BE COMING TO AN END IN THE LIFETIME OF OUR YOUNGER COLLEAGUES - 20 TO 25 YEARS AS WE HEARD FROM ROY TOWNER TODAY. THE SPREAD OF PAPERS HAS BEEN 15 PERCENT EACH ON GEOLOGY AND THE MINERAL RESOURCES, WITH 25 PERCENT ON LAND USE AND ENVIRONMENTAL PROBLEMS. I AM PLEASED TO SEE 20 PERCENT HAS BEEN ON TREATMENT PROCESSES AND 25 PERCENT HAS BEEN CONCERNED WITH DOWNSTREAM USES. I SUSPECT THESE RATIOS ARE DUE IN PART TO THE WAY PAPERS WERE CALLED FOR, BUT THEY ALSO SUMMARISE CLOSELY THE BALANCE OF INTERESTS IN THE INDUSTRY. NOTE AGAIN; 30% CONCERNED WITH SUSTAIN -ING RESOURCES, BUT 25% WATCHING LAND USE AND IMPOSING CONTROLS; 20 % IMPROVING THE PRESENT PROCESSING, AND A HEALTHY 25% WITH AN INTEREST" IN WHAT HAPPENS TO THE MINERAL CONCENTRATES. I SHALL RETURN TO THIS FOURTH POINT AT THE END OF MY REMARKS. THE POSSIBILITY OF ADDITIONAL HEAVY MINERAL SANDS IN NEW AREAS WAS HINTED AT BY M.S. SHEPHERD (EG TERTIARY SHORELINES OF THE MURRAY BASIN). OLD FOSSIL SHORELINES, WELL REMOVED FROM PRESENT SHORES ARE AN IMPORTANT MINERAL SOURCE IN CHINA AND IT WOULD HAVE BEEN INTERESTING TO HEAR FROM THE SEVERAL COMPANIES EXPLORING IN THE MURRAY BASIN. I ALSO NOTICED THAT WHILST OUR MONAZITE

Jan 1, 1986

New knowledge has no economic value unless it can be applied, or æcapturedÆ, as the R&D jargon has it. Australia probably spends more than $500 m per year on mineral industry R&D, distributed amongst the mining companies (IR&D Board, 1997), CSIRO, the universities and others. The investors in this research (industry, and the community via government) will expect some sort of return from their investment. The return will be poor unless the know-how developed in R&D programs can be exploited. This paper explores some of the issues involved in capturing the outcomes of mineral industry R&D in a form which can be exploited for economic benefit, and suggests ways in which it might be done better. It is based on the experience of the JKMRC in conducting applied research in mining and mineral processing and delivering it to the industry. It may seem presumptuous for a research contractor to be telling its clients how to do their job. However, the process of developing, acquiring and implementing R&D outcomes has to be a partnership between provider and receiver, in order for this process to work efficiently. This applies whether the two parties operate within a single corporation (a corporate laboratory and a business unit, for example) or are two entirely independent organisations (eg a mining company and a university). Both partners have a role to play, and the best examples of realising the benefits of R&D almost always involve the open-hearted and skilful handling of this synergy.

Jan 1, 1998

The subject of government involvement in industry is, to say the least, a touchy one. For many it conjures up thoughts of socialisation or nationalisation. For others it is a desirable objective and is seen as a means of social reform by giving government a greater say in the control and distribution of human, financial and natural resources for the betterment of the community. Whatever your point of view, it is difficult to deny that government involvement exists to lesser or greater degrees in all industries. The mining industry is no exception and the degree of government involvement is probably greater than it is in other industries. I think it is important to remember when talking about government involvement in industry to recognise that there are different types of involvement and that all governments have a right, if they so desire, to become involved in whatever way they choose. The decision of a government to increase its direct or indirect involvement must, of course, be taken in the national interest. Governments, if we are still old fashioned enough to believe in ministerial and electoral responsibility, must make up their own minds about whether their actions are in the national interest and they must be prepared to accept the consequences of that action, good or bad. For instance, they must decide

Jan 1, 1975

Sampling systems are never perfect. They all have some bias and give variable sampling errors. The ways of thinking about bias and precision should be different before and after construction (or reconstruction) of a sampling system. Before a sampling system is constructed, the fundamental error variance can be estimated using GyÆs formula or by doing test work on the material to be sampled. The component of sampling variance which varies with the number of sample increments can be computed for the expected patterns of grade variation. The smallness of the bias can be checked using discrete element modelling, by checking that the proposed design complies with clauses in standards, or by copying an existing sampling system that performs well for similar material. After a system has been constructed, sampling precision can and should be monitored directly. Anyone claiming to take responsibility for a sampling system should know its precision. Bias could be checked by comparison to a more accurate sampling system, such as stopped-belt sampling, under conditions where bias seems most likely. However, it is more practical to conduct regular checks that the system is still operating as designed, that the design is still appropriate despite any changes to material flows, and that sample masses are consistent with the correct operation of the sampling system. If precision is not regularly assessed then it should be assumed to be very poor. If a sampling system is not regularly inspected then it should be assumed to be biased.

Jan 1, 2008