Strategic Aspects of Latrobe Valley Coal Resource Utilisation

In large companies with mining operations spread over multiple sites, it is essential that consistency between sites is maintained in preparing and classifying resource and reserve estimates. The endorsement by The AusLMM and AMIC of the "Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves" and the subsequent incorporation of reference to the code into the ASX listing rules for mining companies has provided a basis for the consistent classification of resources and reserves. However, compliance with other criteria more or less stringent than the Australasian Code can present some reporting difficulties. Examples include listing requirements for foreign stock exchanges, particular Acts of Parliament that may apply to individual leases, constraints imposed by individual companies on their own leases, and ultimately, reserves for short, medium and long term planning. Confusion can arise when any two or more sets of reserves for the same lease are compared.. To alleviate this confusion, a standardised procedure was developed for the calculation and classification of coal resources and reserves. The procedure which is geostatistically based incorporates a technique called "Irregular Block Kriging" where specific mining blocks are directly kriged. The procedure has enabled those engineers and geologists with only a basic understanding of geostatistics to apply the technique and not feel hampered by some of the complex mathematics which in the past has tended to inhibit and overcomplicate the use of geostatistics. The procedure has resulted in "cleaner" data bases and hence more reliable reserve estimates.