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By C E. Loayza, R M. Pinto, J G. G=mez

The Yanacocha District is located 20 km north of the city of Cajamarca, in the Northern Andean Orogenic belt of northern Peru.Gold production may have occurred as early as Incan times (Paverd, 2000), but modern exploration that began in the 1960s targeted only copper and silver. Newmont Mining Corporation, BRGM and Compa±fa de Minas Buenaventura began exploring for gold in 1983, with Newmont as operator.Initial drilling took place in 1985. By 1992 a reserve of 1.28 million ounces was reported (Teal et al, 2002).Production began at the Carachugo deposit in 1993.Current reserves are 31.7 million ounces at $US 325 per ounce at a grade of 1.03 ppm (Newmont Annual Report, 2003).The operating company, Mineral Yanacocha SRL (Newmont 51 per cent, Buenaventura 44 per cent and International Finance Corporation five per cent) produced 2.85 million ounces in 2003, making Yanacocha one of the largest gold mining operations in the world. The district is made up of a series of epithermal, high sulfidation style gold deposits and one gold-rich gravel deposit (La Quinua), aligned in a NE trend.La Quinua is not discussed in detail in this paper. The bedrock deposits are hosted in a Miocene volcanic package, the Yanacocha Volcanic Complex that also trends NE.Re gional NW striking Andean faults intersect the NE striking Trans-Andean Chicama-Yanacocha structural corridor (Turner, 1997), localising the district mineralisation. These two structural orientations dominate the district, controlling breccia and intrusion locations, and gold mineralisation. Discontinuous EW oriented fracture zones are interpreted as extensional and locally are important in controlling gold mineralisation.

Jan 1, 2004

By J Isarua, R Mabiria

The Ok Tedi copper and gold project, located in the Western Province of Papua New Guinea, commenced operations in 1983. The open cut mine has undergone several significant transformations throughout its project life including changes of ownership, mine life extensions and varying production performance profiles. As of today, the Ok Tedi Mine is a 100 per cent PNG owned company (67 per cent State and 33 per cent Western Province and Communities) and has a life-ofmine plan extending out to about 2032.

May 5, 2022

Mssissippi Valley-type (MVT) and sedimentary-exhalative (SEDEX) zinc-lead deposits represent about half to three-quarters of the world's production and reserves of lead and zinc. The two deposit-types have traditionally been regarded as separate entities in terms of genesis largely because they possess very different morphologies, resulting from the epigenetic nature of MVT deposits and the syngenetic origin of SEDEX deposits. Similarities in regional setting, metal ratios, size and grade, lead and sulphur isotopes, and source(s) of fluids and metals in the two deposit-types, however, suggest that they could be products of similar genetic processes. The physical properties of MVT ore fluids suggest that certain types of SEDEX deposits could have been formed from fluids possessing similar salinities and temperatures. The hypothesis is further strengthened by the facts that: 1. in several cases MVT and SEDEX mineralisation occurs in the same region, and 2. recent advances in establishing the timing of MVT mineralisation has revealed that some MVT deposits are contemporaneous with nearby SEDEX deposits. If MVT and SEDEX zinc-lead deposits do indeed share a common ultimate derivation from fluids that emanated from sedimentary basins, then the presence of one deposit-type in a region could be used to infer the possible presence of undetected deposits of the other type. Furthermore, knowledge of the mineralisation age of one type will constrain the exploration target host rocks of the other type. A genetic relationship between MVT and SEDEX mineralisation may also explain why certain individual deposits, such as several in Ireland and eastern Canada, appear to be 'hybrids' and possess geological attributes of both end-member types.

Jan 1, 1993

The advancements achieved in rapid tunnelling in the 60's and 70's have been notable. It is unfortunate that shaft sinking has not enjoyed equivalent advances and there are many good reasons why this is so. Technical and commercial considerations have held back development and continue to do so despite the increasing urgency in the search for minerals and energy. By the careful selection of an appropri- ate project and the application of specialist engineering the Bdard took advantage of a unique opportunity to apply a mechanised shaft borer in field conditions.

Jan 1, 1981

Sublevel open stoping (S.L.O.S.) was introduced at Rosebery in 1972 in the wider ore blocks below 14 level, largely replacing cut and fill methods which had been in use up till that time. During 1973/74 the method produced 10% of primary stoping tonnes, and by 1981/82 it increased to 65%. Because of the increasing reliance placed on sublevel open stoping for primary stoping production, every effort was made in both planning and operating to: - maximise ore recovery and reduce dilution - increase productivity - reduce costs.

Jan 1, 1982

When, in 1985, Marty McFly is accidentally sent back to 1955 in a DeLorean ‘time machine’ in Back to the Future, he encounters young versions of his parents, and must make sure they fall in love or he will cease to exist. This Conference celebrates 40 years since the inaugural Mill Operators’ Conference in Mt Isa in 1978; over this period, great technological advances have been made in almost all aspects of mill operation, resulting in considerable improvements in grades and recoveries from ever-more complex ores. However, in 2018, the mining industry is facing challenges that might have been difficult to predict in 1978 (or were they?). The computer revolution, the information revolution, and the bio-technology revolution have all contributed to the increase in operating efficiencies, but, combined with the social revolution, they also call into question the existence of the mining industry as we know it. This presentation looks back at the ‘way things were’ in the 1970s, and at what was then considered to be the ‘basics,’ and attempts to sketch what the mining industry might be like in 2058. As Back to the Future Part II demonstrates so vividly, it is much easier to review the past than predict the future. It is difficult to know what form the mining industry will have in 40 years’ time. Nevertheless, as this presentation will argue, it is important to take action now, to ensure that it (like Marty McFly) does not cease to exist. Some courses of action are proposed, including going back to the basics of a very different past.*This is an abstract only. No full paper was prepared for this abstract.*CITATION:Franzidis, J P, 2018. Back to basics or back to the future?, in Proceedings 14th AusIMM Mill Operators' Conference 2018, pp 3–4 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 29, 2018

Models of the genesis of existing ore oodles and targetting of exploration for new mines are greatly enhanced by an-understanding of the plate tectonic environment existing at the time of mineral emplacement. In areas of recent or active tectonism, a study of the present-day crustal and upper mantle structure is an obvious starting point in unravelling the evolution of the accessible upper crust. Bougainville is the northern-most island in the Solomon Islands arc. A 7km deep trench almost 100km off its western coast marks the commencement of subduction of the Solomon Sea plate beneath the Pacific plate. As outlined by the seismicity, the subducted crustal slab under the southern half of Bougainville reaches the axis of the island at about 100km depth, from which point it dips near vertically another 300km into the upper mantle. Large surface blasts at the Bougainville Copper Mine at Panguna, Bougainville, Papua New Guinea were used to derive an unreversed upper crustal profile of the island. The crust appears to be relatively simple, being comprised of a 5km deep layer with a P-wave velocity of 4.5km/sec, overlying a l0km thick layer with a P-wave velocity of 7.2km/sec. Constraints on the 15km mantle depth were provided by the identification of both P to and S to P phase conversions of seismic waves from local shallow earthquakes at the Moho boundary. An upper mantle velocity of 7.95(¦ 0.15) km/sec was measured from travel times of selected shallow earthquakes along the strike of the island arc.

Jan 1, 1987

The Youga gold mine in Burkina Faso, West Africa, is scheduled to produce first gold in the third quarter of calendar 2007. The project is expected to produce 540 000 oz of gold over 6.5 years, from a conventional open pit carbon in leach mine. The direct capital cost of the project is US$47 M. Etruscan Resources Inc, a Canadian based gold exploration and development company, holds 90 per cent of the project company Burkina Mining Company SA (BMC). The state of Burkina Faso is free-carried for the remaining ten per cent of BMC. RMB Resources Limited, of Melbourne Australia, has arranged a US$35 M project finance facility for BMC (the Borrower) as the majority of funding for the Youga project development. The loan facility was provided by RMB Australia Holdings and Macquarie Bank Ltd (the Lenders) each as to 50 per cent in the lending syndicate. The Lenders also provided a gold hedging facility to guarantee a minimum price for the projectÆs gold production. Burkina Faso is a francophone country, part of the Economic and Monetary Union of West Africa (UEMOA). The project financing is the first such facility to be arranged for a mining project in Burkina Faso, with little or no precedent available in other UEMOA countries. Therefore, while the Youga gold project is forecast to be a robust project applying conventional mining and processing methods, a number of legal, technical, commercial and social issues required identification, evaluation and resolution before the loan could be established. This paper describes that evaluation process and the resolution of these issues. In-house experience and expertise in both the LendersÆ and BorrowerÆs teams has facilitated a greater understanding and æownershipÆ of the issues and hence provided comfort with risks which might not normally be taken in conventional project developments and project financings. As a result, blanket external reviews were not required by the Lenders. A long-standing relationship between Etruscan and RMB Resources also facilitated solutions to a number of issues. Nevertheless, a degree of flexibility by the Lenders, the Borrower and Etruscan was required to successfully close the financing.

Jan 1, 2007

Chromite ores have a long history of low pricing and for AustraliaÆs only chromite mine this has been a particularly tough challenge, especially as the mine is located nearly 400 km from the nearest port at Port Hedland. A stockpile of chromite fines (-16 mm) has been built up since 2003. The opportunity to develop a facility to treat this material to produce a chip (-16 + 1 mm) product and a sands (-1 mm + 45 micron) product was taken when the price increased to above US$140/t. A simple add-on plant containing a heavy media cyclone circuit for the chips and a spiral circuit for the sands was designed and developed. During construction of the fines plant the price of chromite reached a level where the payback for the entire project was less than eight weeks. Soon afterwards the price and the demand for chromite plummeted and the site was put on care and maintenance, except for the commissioning of the fines plant. This put considerable pressure on whether to continue to operate the plant or to place it in care and maintenance. Times of boom and bust provide management with almost totally opposite views. By not taking a conservative view on prices and costs, the effect of extremely low prices and minimal demand can be devastating to a good project. Designing and building plants with conservative costings in boom times gives a greater chance of keeping projects alive during the bust periods that tend to follow.

Jan 1, 2009

Although developed primarily for sintering tantalum, the unit to be described can be used to heat-treat metals in the form ofa bar, wire or strip, by passing a current through them. The upper temperature limit with this type of heating is the melting point of the metal being heated.The unit was designed for vacuum work, but. various gases can be used if required.Briefly, the vacuum sintering furnace consists of a bell which is counter-balanced and may be lowered onto the brass base plate which holds the electrodes. A rubber ring seal is used for vacuum work. The lower flexible grips are bolted to the brass base plate which is at earth 'potential, while the other electrode passes through the plate by way of an electrically insulated vacuum seal. This upper electrode, the height of which can be altered as desired, the lower grips, and the bell are water cooled. The vacuum line to the pumps and a line to the vacuum gauges also lead from the base plate. The more important sections of the unit are described below.THE BELLThe unit was designed so that the bell could be lifted clear of the base plate and the electrodes, thus facilitating adjustment of the latter and the mounting of the specimen to be heated. A double walled steel bell, 20 in. high, with t in. cavity was used. The bell was fabricated from 10 gauge mild steel sheet using a double overlapping run of arc welding for all seams. A water inlet and outlet...

Jan 1, 1946

Evidence abounds for sea-level change having occurred throughout geological and recent time. Driven by climatic changes, by cycles of glaciation and deglaciations, and by tectonics the position of sea-level relative to the crust has been going up and down since oceans first formed. Rates of these differential movements have been as high as 10 mm/year during the last major deglaciation as sea-level rose by about 150 m in about 15000 years. Tectonic processes can also produce change in sea-level relative to the crust of several mm/year as in, for example, the uplift of the Huon Peninsula in Papua New Guinea. To understand what is happening to sea-level today and what may be happening in the future it is necessary to understand the geological and climatic processes that have caused sea-level to change in the past and the best laboratory for the study of these processes is the geological and geomorphological record. Evidence for observations of sea-level change throughout Late Pleistocene and Holocene time is plentiful in the Australian region. Temporal variability is characterized by a low-stand, at more than 100 m below the present level, at about 20 000-18 000 years ago followed by a rapid rise and transgression of the continental margin up to about 6000 years ago. After this time sea-levels remained within a few metres of their present value but the patterns of change are not everywhere the same. The depth of the low stand at about 18 000 years ago does not appear to have been the same everywhere. Nor does the time at which sea-level first reached its present value appear to have been everywhere the same. The fluctuations about present sea-level during the past 6000 years appear to have been different in different localities. As yet there has not been a wholly satisfactory quantitative explanation for this spatial variability. How much, if any, is indicative of vertical tectonics? How much is the result of the Earth's response to the changing surface loads as mass is exchanged between ice sheets and the oceans? Can any of it be attributed to past changes in global climate? Or are the observations just wrong?

Jan 1, 1990

The economically significant seams in the Bowen Basin fall into four age groups, two in the Lower Permian and two in the Upper Permian. Coal deposition in the Galilee Basin did not commence until late in the Lower Per- mi-an and persisted into the Upper Permian. The Lower Permian and early Upper Permian coalfields of the Reids Dome Beds, the Collinsville Coal Measures and the Fair Hill-German Creek Formation are restricted to the west flank of the Bowen Basin. The uppermost Permian Rangal-Elphinstone-Baralaba Coal Measures have widespread distribution across the northern half and on both flanks of the Basin. Coal Measures in the subsidiary basins at BlairAtho/ and Ca/en were probably deposited at the same time as the Collinsville Coal Measures. The structure of the north west flank of the Bowen and the east flank of the Galilee Basin is essentially simple, but in the remainder of the basin doming and faulting complicate the structure. Also, bordering a large sec- tion of the east flank, is the Dawson Tectonic Zone, where the beds are tightly folded and faulting is intense. Cok- ing of seams is common in the northern sector of the Basin associated with igneous intrusion. With the exception of the Duaringa Basin on the east flank of the Bowen Basin, Tertiary sediments and basalt flows are more common at the western basin margin. Thick deposits of Tertiary sediments also occur in the south of the Galilee Basin. Con- sequently, coal subcrop, especially in the older, more westerly situated, coal measures is often at depths in excess of 100 m. East of this, the depth of weathering can be as shallow as 13 m and most of the coal subcrop is acces- sible to mining by open cut techniques. Coals deposited in the early Upper Permian are commonly more vitrain rich than those above and below. In the Bowen Basin, coal rank decreases from the north west to the south east, that is, from the semi-anthracites associated with the Dawson Tectonic Zone to the sub-bituminous coals of the southern Galilee Basin.

Jan 1, 1975

By Greg Brown

The underwriting of professional negligence has proved to be an evolving science. As with most insurance products coverage offered in the past was very broad but as legal precedent demonstrated to Insurers areas of unforeseen exposure policy documents per se have become more restrictive until today the insurance market through attrition have produced a basic policy structure with various purchasable extensions which together provide insuring professionals with coverage that has proved to be adequate for their needs. The basic policy provides indemnity and protection for fortuitous negligence. In a practical sense, however, professional indemnity policies are really a defence document in so far as policy holders are relying upon the expertise of Insurers to protect them in the event that a claim is made upon them. Whether damages are awarded is in many respects a secondary consideration, the most important factor is to ensure that policy holders are protected in terms of the legal defence mechanism. By way of illustration we are currently in the process of defending a large professional firm which purchased from us a policy with a limit of indemnity of $10M. The case has been running in a Supreme Court now for 14 months and the defence costs which we have incurred on their behalf are rising close to $8M as I put pen to paper. Defence costs of that magnitude would in effect terminally cripple all but the very largest professional operations in Australia. In more recent times coverage has been provided in Australia for breaches of the Trade Practices Act and similar legislation enacted in various States. No-one really appreciated the comprehensive impact which the Trade Practices Act would have on commerce in Australia. Most professionals thought that indeed they would be exempt from prosecution under this Act. The passage of time has clearly indicated that this is not the case and we have found that it is much more difficult to defend a claim involving breaches of the Trade Practices Act than it would be to defend a claim for breach of tortuous liability.

Jan 1, 1995

Alcoa of Australia Limited owns and operates a 150 MW power station adjacent to the coastal township of Anglesea in south western Victoria.The power station was constructed in the mid 1960s to supply electricity to the Company's smelter at Point Henry, near Geelong, and is fuelled by high quality brown coal mined at the site in Alcoa's lease area.The open cut mine, producing approximately one million tonnes of coal per year, utilises a backfilling method and has carried out progressive regeneration of those completed areas since the mid 1970s.

Jan 1, 1992

A flow sheet has been developed to treat a high tonnage highly preg-robbing gold ore. The ore is low grade and fine grained with a high proportion of very fi ne free gold. The key components of the flow sheet include gravity, flotation, intensive cyanidation with direct electrowinning, and carbon-in-leach of the flotation concentrate. The circuit produces a low overall mass pull to concentrate allowing economic intensive treatment of large tonnage low-grade material. Efficient recovery of fine gravity gold using a Falcon concentrator in both the milling and flotation circuits, and subsequent intensive cyanidation in a Gekko InLine Leach Reactor (ILR) is critical to the process with over 70 per cent gold recovery expected in this circuit. Grind size control was also found to be important in controlling the activity of the preg-robbers in the carbon in leach circuit and also in the solid liquid separation performance. Tests at the large-scale demonstration plant have been conducted to demonstrate the effectiveness of this flow sheet. A large low-grade deposit is currently under development with the aim of developing a 10 Mt/a treatment plant with the subsequent addition of equivalent sized process lines in multiples of 10 Mt/a. The economic development of this orebody is critically dependant on understanding and exploiting the properties of the ore. In particular it is critical to minimise the effect of preg-robbers by recovering free gold with Falcon concentrators and InLine Leach Reactors. Recovery of the remaining gold by flotation into a small mass yield allows this fraction of gold to be treated by CIL leaching utilising high carbon levels. It is critical is to ensure operation at the optimal grind size to maximise liberation of the free gold and minimise pregrobber activity. The ore has been identified as preg-robbing with low recoveries obtained if treated using conventional cyanidation and carbon absorption. The mineralogy consists of predominantly fi ne grained free gold with minor sulfides including pyrite and arsenopyrite. With conventional cyanide leaching in the absence of carbon, gold recovery is less than 50 per cent. Direct cyanide leaching of the ore in the presence of activated carbon results in an improved but still uneconomic gold recovery. The gravity recoverable gold (GRG - as defined by Andre La Plante) content of the ore has been measured to be 70 per cent to 85 per cent in various tests with liberation grind size of approximately 106 ¦m. This indicates gold is predominantly free and suitable for recovery by batch centrifugal concentrators into a low mass yield. This property of the ore presents the opportunity to maximise the recovery of gold by separating it from the majority of the preg-robbers prior to leaching. Due to the very fine gold particle sizes and the necessity to maximise recovery of this fine fraction Falcon concentrators were selected for the duty, with their proven high recoveries at very fine gold sizes. The gravity recovery in the milling circuit is designed to be in the range 55 to 65 per cent. This has been achieved in the existing pilot plant using a Falcon operating on ball mill discharge within the mill recirculating load. Intensive leaching in an InLine Leach Reactor is essential to recover the gold from the gravity concentrates. Tabling is not a preferred option since recovery is lower than intensive cyanidation and any gold losses to table tails will report to CIL where recovery is reduced by the presence of preg-robbers. Furthermore, tabling recovery from the gravity concentrates is particularly poor due to the fine particle size of the free gold. ILR recoveries of 98 per cent were demonstrated in the pilot plant using an ILR100BA and leach conditions were investigated in the lab using pilot plant generated Falcon concentrate. Recovery of gold from the pregnant solution was achieved with direct electrowinning at pilot and efficiency and sizing parameters were determined at lab scale. To further increase free gold recovery Falcon concentrators will be installed in the flotation circuit. Location of the Falcons in the circuit is not finalised but installation on the rougher concentrate stream is favoured since it will allow multiple pass recovery. This is expected to recovery a further ten to 20 per cent of the gold, as indicated by lab tests on pilot plant generated material. The gravity concentrate from the flotation circuit will also be leached using InLine Leach Reactors. Initial intensive cyanidation tests carried out on lab generated flotation concentrates indicated higher recoveries than CIL can be obtained even though the concentrates contain significant levels of preg-robbing material. This can be explained by the high cyanide, high pH leaching conditions used in the ILR which alters the absorption equilibrium of the preg-robbers. Further optimisation of the leach conditions will be undertaken once more concentrate becomes available. Recovery of the remaining gold content is achieved by flotation into a small mass yield, however the preg-robbers are also recovered into this concentrate. Due to the presence of the preg-robbers gold leaching must be carried out in the presence of high levels of activated carbon in a CIL system. The recovery has been shown to be strongly dependant on the carbon loading and the concentrate particle size. The carbon competes against the preg-robbers for dissolved gold while excessive grinding increases the surface area and activity of the preg-robbers. This has been demonstrated in test work however the economic optimum leaching conditions and carbon loading have yet to be determined. The grind size is critical to the economics of the project, not only due to its effect on gold recovery but also due to its effect on the major operating and capital costs at both the front and back end of the process. It is critical to grind enough to obtain both gravity free gold and flotation liberation at low mass yields however over-grinding results in large increases in mill size and power at the front end and filtration or thickening costs at the tails. Because these unit operations treat essentially all the plant feed even small changes can result in major impacts on project economics. The viability of this project is greatly enhanced by the high recovery of gold into a small mass yield. In particular the production and intensive leaching of the free gold gravity concentrates will allow over 70 per cent of the gold to be recovered efficiently with minimal impact from preg-robbers. By using flotation the mass of the remaining fine preg-robber contaminated material, to be leached in CIL, is greatly reduced allowing this difficult material to be economically treated. This is an ABSTRACT ONLY. No paper was prepared for this presentation. 

Aug 1, 2010

By L Blackwell

Strategic mine scheduling is an industry best practice for increasing the long-term value of mining operations and supply chains. The application of optimisation technology such as mixed integer linear programming (MILP) is able to achieve a mathematically optimal result for a given scheduling model. Such a model will typically define the available source material, processing options and desired constraints for accessing and processing the material. Most strategic scheduling models, however, do not include a sufficiently detailed model of capital expenditure options related to capacity expansion.Typical strategic schedule models do not include important capital expenditure features such as capacity decay or expiration (limited lifespan of trucks), precedence relationships over time (rail construction before a new plant or non-linear expansions due to economies of scale) or mutually exclusive option sets (choices of plant size). By not including these features, a strategic mine scheduling model for a capital-sensitive operation is unable to be optimised to deliver maximum value or profitability.This paper presents several results of MILP optimisation using advanced capital expenditure modelling for mining operations and supply chains. Results of the study demonstrate that optimising capital expenditure at the same time as optimising the mining schedule allows for minimisation of capital purchasing, optimal timing for those purchases and optimal scheduling around them. Overall, this results in an increase in net present value.CITATION:Blackwell, L, 2014. Capital expenditure modelling for strategic mine scheduling, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014 , pp 315–322 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014

By S Juras

The terms measured resources and proven reserves denote the highest level of estimation confidence in all of the major classification schemes. But what do they really bring to today’s project or mine with respect to production planning and expectations? Initial reserve declaration does not need measured resources, just indicated resources. Economic viability of a project is assessed on total reserves with nary a bonus for the amount of proven reserves. Production plans are based on grade and tonnage goals that may only coincidently correspond to proven reserves. So are the measured and proven categories still relevant? Historically, and almost exclusively in underground mines, companies only allowed mining in areas of proven reserves. Some companies still follow that philosophy. But many others will mine a mixture of probable and proven reserves without hesitation. Also what of the undeveloped project in a new district – what is to be made of their declared measured resources and proven reserves? Measured resources are commonly set either by some type of proximity to data scheme or a matter of ‘feel’ based on the qualified person’s experience. The parameters for reserve conversion focus on the project as a whole and then a portion becomes classified as proven reserves almost solely based on whether the resource category is measured. So should the mining industry continue to use these categories of resource and reserve classification? This paper will present arguments about making these categories once again more relevant. A more disciplined usage of these categories may re-introduce their relevancy in public disclosures of resources and reserves. As well a more consistent usage in operations may lead to increased confidence in managing production targets and costs.

Aug 22, 2011

The availability of three-dimensional computer hardware and software makes the solid modelling of geological entities a realistic and logical alternative to previous sectional and plan 'models'.The success of underground mining operations depends largely on the ability to accurately predict the three-dimensional location and grade of mineralisation in order to maximise the extraction of resources and minimise mining dilution. The integration of lithological, geotechnical and grade models into three-dimensional solid models provides an excellent basis for underground mine planning and operation

Jan 1, 1993

It is a commonplace of our industry that prices of most minerals have been historically weak during the 1980s. The International Monetary Fund's index of prices of metals fell 25 per cent between 1980 and 1982, rose slightly in 1983, and has since fallen further. In December last year it was 37 per cent below its 1980 average. The few temporary exceptions to the mineral industry's malaise highlight the excess capacity, which largely explains the weakness of prices. The industry has painfully come to recognise that more satisfactory prices will not be restored until supply capability and demand move back into better balance. Mine capacity was installed in the expectation of much faster growth of demand than has occurred. For a variety of reasons mine and plant closures have been insufficient to restore equilibrium to the market-place. The industry may, therefore, have to resign itself to continued weak prices for some years more, at least by the yardstick of the 1970s. Growth rates of demand have slackened off in line with economic activity, and in response to continuing substitution and technological improvements. To the extent that the recent weakness of oil prices stimulates the industrial countries' activity, demand for non-fuel minerals may grow faster than most forecasters now predict. It is, however, much too early to say how long the weaker oil prices will persist, and even more difficult to estimate their probable effects. In typical post-war business cycles the usual response to recession was to batten down the hatches, and ride out the storm. Sooner or later, and probably sooner, demand resumed its previous trend path, and prices recovered. The market, in effect, bailed mines out of trouble; the more efficient could make attractive pre-tax profits whilst even the poor to mediocre could earn a satisfactory living. Prices rose at least as fast as general inflation, and in the early 1970s much faster. In retrospect those price rises of the early 1970s were historically abnormal but they did not appear so in the prevailing inflationary climate of the time. When the market failed in the early 1980s many of the hardest hit companies looked for scapegoats.

Jan 1, 1986

British Coal has always been a big mining company and its management has been beset with many of the problems one would associate with such an undertaking. These include its accountability to Government, its market vulnerability to competing fuels and to imported coal and its relationship with its workforce but also with its own history and size. As a fragmented private industry up to and including the Second World War, it was starved of capital and its management developed an historic relationship with its workforce which was often counter productive to success. Once nationalised, it contributed greatly to post-war industrial regeneration, investment was forthcoming to reconstruct existing mines, sink new ones and to mechanise production operations. British manufacturing companies contributed to this mechanisation drive, the very success of which drove up production and productivity and against a declining market, contributed to the reduction in size of the industry. Production machinery design evolved in the 1960s with close collaboration between manufacturers and users such that an inevitable proliferation of machinery types and specifications developed to meet local needs. Longwall mining internationally outside Western Europe only became significant in the 1970s. It became apparent that international operators demanded higher levels of plant performance from British manufacturers than British Coal did. This was the birth of the "heavy duty" plant concept. As international performances outstripped our own then British Coal moved in to invest in itself, in this heavy duty. This re-investment commenced in the mid 1970s but only gained real momentum in the 1980s when it became a virtual re-equipping exercise for the whole industry.

Jan 1, 1988