Search Documents

Gold has been known and mined in Australia for over 150 years. It occurs and is mined in all States and the Northern Territory. In the past 30 years approximately 8300 t of gold has been mined and gold exports have contributed over $106 billion to the Australian economy. In the first three quarters of the Australian financial year 2006 - 07 (ending 30 June 2007) gold exports were valued at $7.3 billion, which was 13 per cent of the value of all minerals exported and five per cent of AustraliaÆs total goods and services exports over the period. Clearly gold has been and remains a very important component of the Australian economy.

Jan 1, 2007

By D Bertoldi, C Haines

"The Waihi Gold Mine (WGM) operated by OceanaGold New Zealand Limited is a wholly owned subsidiary of the OceanaGold Corporation of Australia. Traditionally WGM has stockpiled and processed separate campaigns of open pit and underground ore. The ore is processed via a conventional semi-autonomous grinding (SAG) / ball circuit (SABC). The low aspect SAG mill operates in a closed circuit with two 20" cyclones, whilst the ball mill is also a closed circuit with a 10" cyclone cluster. A major wall movement in April 2015 ceased open pit operations indefinitely, 18 months ahead of the mining plan. This immediately reduced the forecast mill tonnage leaving two options: begin campaign milling or change the operating strategy and target lower throughput. Additional cost pressures necessitated improved milling cost efficiency. The immediate ore restriction limited processing alternatives to within the existing major infrastructure. Available comminution circuit survey data laid the foundation for developing a comminution model using the JKSimMet™ software package (version 6, created by KJTech). A number of flow sheet variants were then evaluated based on predicted throughput and efficiency. The comminution models suggested opportunities for improved efficiency lay in reducing throughput and increasing utilisation rather than on/off campaign milling under the existing operating philosophy. A series of process alterations followed, delivering new cost efficiencies that maintained the current $/t processing cost. This paper aims to review the change in circuit performance and examine the decisions and challenges faced following the transition from a high tonnage SABC circuit to lower tonnage SABC circuit.Citation:Haines, C and Bertoldi, D, 2016. The Transition from Semi-autogenous to Autogenous Milling at Waihi Gold, in Proceedings 13th AusIMM Mill Operators’ Conference 2016, pp 303–312 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Oct 10, 2016

By M D. Sussman

A large number of countries in the world now have some regulation for labelling the presence of genetically modified organisms (GMO) in food. For the last ten years, ISO/TC 34/SC 16 has been providing methods, guidelines and requirements concerning the evaluation of molecular biomarkers including GMOs. This activity makes sure that stakeholders on all sides of commercial transactions are satisfied and their marketing or regulatory needs are met. Developing and maintaining a transparent, science-based environment for users of horizontal methods for molecular biomarker analysis is a high priority. Sampling and analysis of molecular biomarkers has become critically important for food and agricultural organisations developing, producing, distributing and selling genetically engineered, non-genetically engineered, identity preserved and/or organic crops and their derived products and preventing their respective destructive diseases. To aid in international harmonisation, a new work item proposal to develop an ISO type A management system standard (MSS) for organisations including laboratories using molecular biomarker analysis and sampling has been submitted to ISO/TC 34/SC 16. The purpose of this MSS is ensuring that determination of the presence, absence or quantification of a particular biomarker with a relationship to a product quality determinant, a marketing claim, a regulation or a plant pathogen is carried out under a suitable quality assurance / quality control system. This MSS will provide an overarching system to apply and manage molecular biomarker analysis and sampling for any organisation large, medium or small in a private, government or academic setting.CITATION:Sussman, M D, 2017. ISO/TC 34/SC 16 horizontal methods for molecular biomarker analysis – molecular biomarker analysis and sampling management system, in Proceedings Eighth World Conference on Sampling and Blending , pp 295–302 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2017

By P D. Munro

"This is a reprise of the paper ‘Back to the Future – Why Change Doesn’t Necessarily Mean Progress’ presented to the Tenth Mill Operators’ Conference in 2009. It was observed that the ‘boom and bust’ cycles of the industry, together with trends in tertiary education and the effects of fly-in fly-out (FIFO) operations raised serious questions about the sustainability of human capital in the mineral processing sector.In 2016 we find ourselves in a ‘bust’ after enjoying a decade of the longest commodity price ‘boom’ in a century. In the ‘boom’ did we:make any technological breakthroughs?put measures in place to improve our human capital, especially in the area of ‘professional formation’?The paper makes observations on the current performance of mineral processing engineers and the organisational milieu in which they operate. It questions whether mineral processing engineers are actually ‘adding value’ at some sites given their organisational and operational practices.Some technical trends are examined and what it might mean for mineral processing engineers.Given the above and demographic trends for mineral industry professionals, changes to the seemingly current laissez-faire model of professional development are proposed.Citation:Munro, P D, 2016. Back to the Future - Still on the Dark Side, in Proceedings 13th AusIMM Mill Operators’ Conference 2016, pp 341–348 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Oct 10, 2016

Exploring long-term future possibilities for your business and methods for achieving them are critical functions of leadership. More than ever, strategic initiatives today have to be planned and delivered in an environment of disruptive change û driven by shifting business or regulatory imperatives, new technologies and global economic change, and diverse stakeholder interests. The notion of The Future as a single inevitable outcome is obsolete. There are many possible futures. This paper explains an innovative process û known as scenario planning û to help executives in the construction and testing of longer-term strategies to deal with uncertainty.

Jan 1, 2006

By J A. Wells, K G. Thomas, R F. Dewhirst

"One of the contributing factors to the extreme cost escalation in the first decade of the 21st century was the increase in the amount and cost of engineering work that went into studies and projects. Various reasons for this were identified, including unsatisfactory productivity due to a shortage of experienced/qualified engineers, the increased complexity and infrastructure requirements of many projects due to location, metallurgy that is more challenging and increasing environmental and social requirements. These conditions often led to unsatisfactory project results in terms of cost and schedule blowouts and created a loss of confidence – both internally and externally – in the industry’s ability to complete projects on time and on budget.Technical fundamentals aside, the experience and effectiveness of project teams has had, and continues to have, a major impact on project cost, schedule and ramp-up to nameplate capacity and operating parameters. There are unfortunately too many examples of where project teams have not been as effective as they could or should have been, all to the ultimate detriment of the project.Using the authors’ extensive experience on both owner’s and engineer’s teams, this paper discusses some of the main reasons for suboptimal team, and hence project, performance and offers thoughts on how best to build and maintain project teams. The analysis and conclusions drawn are built around the Tuckman model of group development known as ‘forming-storming-norming-performing’, which was first proposed some 50 years ago. Given the importance of good teamwork to project success, understanding how project teams grow and become efficient and productive is an essential part of good project management that should receive more attention.CITATION:Dewhirst, R F, Thomas, K G and Wells, J A, 2016. Building and maintaining effective project teams, in Proceedings Project Evaluation 2016, pp 38–48 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By S Lloyd, J Chow, S Fitzpatrick, D Greenup

The Tropicana deposit was discovered in 2005 after AngloGold Ashanti followed up an unexplained gold-in-soil anomaly. Discovered in a remote, barely-explored area of Western Australia not previously thought prospective for gold, Tropicana is the most significant gold find in Australia for more than a decade. The new, large scale open pit gold mining operation will produce an annual production of around 330 000 to 400 000 oz over a ten year mine life mining around 60 Mt/a.Process plant construction started in early 2012 and is due to finish in the December 2013 quarter. The mining contract was awarded to Macmahon Holdings (Macmahon) and mining commenced in July 2012 using conventional drill and blast, truck and excavator open cut methods.As a construction and start-up project in a greenfields location, the establishment of mining activities at Tropicana Gold Mine (TGM) involves the implementation of technical and operational systems, including the mining contract. Some of these systems and likely challenges were identified during earlier studies, while others were not foreseen until they were encountered. Alternatively, the time frames around implementation change depending on the changing knowledge of the project and industry environment. These systems include those common to the industry and those specific to the operation and location.This paper examines the implementation and development of a number of the systems specific to the establishment of mining operations, including the history, process and some outcomes. Although expected to be discrete systems to implement, they become interdependent. This linkage between systems further offers challenges and opportunities for the continuous progress of each system and for TGM as a whole.CITATION:Chow, J, Fitzpatrick, S, Greenup, D and Lloyd, S, 2013. Tropicana Gold Mine - mitigating the challenges of a mining start-up, in Proceedings World Gold 2013 , pp 51-60 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 26, 2013

DCF Valuations are very important to individuals and companies involved in the mining industry. Such valuations are critical to investment decisions in relation to new and existing projects. In particular they provide fundamental information to shareholders in the event of a capital raising or takeover and to financiers supporting mining companies and projects. Also, DCF Valuations are often used to support asset carrying values in the financial statements of mining companies. This paper presents a Chartered Accountant's (CA's) perspective on the main issues to be considered in preparing, analysing and relying upon DCF methods in mineral valuations and provides some practical examples relating to key issues. The paper makes the important point that DCF methods involve making assumptions about future events and circumstances that inherently contain uncertainty which results in a valuation prepared on a DCF basis providing a range of values that are not perfect or accurate. In order that DCF valuations provide meaningful information the underlying methodology used and assumptions made must be consistent, sound and well supported. Credibility of those involved in preparing mineral valuations is vital and this paper supports the adoption of sound practices by all concerned.

Jan 1, 1994

Mr GEPP said: "He proposed at the outset to draw attention to figures dealing with the population of the countries adjacent to Australia for the purpose of comparison with the population of the Commonwealth. He would deal more particularly with the areas of land surrounding the Pacific and Indian Oceans. Korea and Japan had a population of 18,000,000 ; China, 437,000,000 ; Persia, 9,000,000 ; Arabia, 5,000,000; South Africa, 129,000,000; Madagascar, 3,500,000 ; India, 251,000,000; Siam, Indo-China, and so forth, 16,225,000; Federated Malay States, 3,225,000; and, very significantly, Java, only four and three quarter days from Fremantle, over 50,000,000. From the map displayed an idea of the comparative areas of the countries mentioned and Australia could be gained. It was rather amazing that Australia, with its great potentialities, had only about 5,150,000 people. New Guinea had over 750,000 people; Hawaii, a mere speck, 250,000; New Zealand, 1,300,000; North America, 130,000,000; Central America, over 15,500,000; and South America, over 65,000,000. Colombo was only six days from Fremantle, and it was only nine days from Capetown to Albany, and eight days from Albany to Hobart. Proceeding, Mr. Gepp said "It was in 1911 and 1912 that I had the good fortune to spend nearly twelve months in Europe, and during the course of my work in England and Germany to have the oppprtunity of studying both the economical and political systems in some detail... I was in Berlin at the time of the visit of Lord Haldane, when an effort was made by the British Government to arrive at some under...

Jan 1, 1923

By S Flanagan, M M. Mete, A R. Tiryaki, M Guresci

First Quantum Minerals (FQM) operates the Cayeli underground copper mine in Turkey. In response to a lost time incident (LTI) that occurred at the mine in 2022, the mine management decided to introduce a new safety approach on-site. The initiative began with a comprehensive safety culture analysis conducted by Arti Consulting, involving focus group studies. Employees actively participated in candid discussions, sharing their insights on safety issues and offering solutions. These conversations were meticulously audio recorded, resulting in over 150 000 words collected from more than 100 employees. These transcribed narratives then underwent rigorous semantic analysis, with the assistance of a sociologist, to identify and dissect patterns of unsafe behaviour. This analysis found areas for improvement, particularly in near-miss and incident reporting, quality of safety toolbox talks and effectiveness of pre-work risk assessments. Subsequently, mine management deliberated on these insights and devised corrective actions. An emphasis was placed on involving all employees in the corrective actions through communication training, empowering them to own the decisions and changes made. These impactful measures were seamlessly integrated into FQM’s Think! Safety Program, which embodies FQM’s sensible health and safety strategy. FQM partnered with Strika Entertainment (Strika) to develop innovative visual-first safety communication tools that use illustration, animation and graphic design to simplify complex messaging into easy-to-understand edutainment. As part of this approach to safety communications, Cayeli and Strika revamped the safety toolbox talks to encourage employees to voice their concerns and receive feedback when their suggestions were implemented. The response from employees has been positive, with over 200 unsafe behaviours and conditions reported within the initial two months of launching the Think! Safety Program. Remarkably, the Cayeli Mine has not experienced any LTIs for the past 500 days as of 9 December 2023. This paper encapsulates the dedicated efforts to transform Cayeli into a safer mining operation.

Apr 16, 2024

The need for the hydraulic transportation of coal in the New South Wales coal industry, both from the coal face to the surface and from the coal mine to the consumer or the port for export, is explained. Details of research projects currently in'progress and involving the hydraulic transportation of New South Wales coals are given together with information on the hydraulic transportation of coal in the United States of America.The potential of hydraulic transportation as a viable alternative to the proposed expansion and upgrading of the New South Wales railway system to meet the projected New South Wales coal production to the year 2000 is described.

Jan 1, 1980

By D Craw, D Wilson, D Chappell

Gold is extracted by cyanidation of a sulphide-rich concentrate at Macraes mine, and after cyanidation, the concentrate is discharged to tailings impoundments. The concentrate tailings were discharged to a dedicated concentrate impoundment from 1989 to 1993, afterwhich they were blended with the flotation tailings. Since mid-1998, concentrate tailings have been redirected to the dedicated concentrate impoundment. The concentrate tailings contain up to 1 ppm gold, and will be reprocessed in the future. However, it is a regulatory requirement that a contingency plan be in place to rehabilitate the concentrate tailings should the mine operation cease for any reason. Initial predictions suggested that the sulphide-rich tailings would oxidise and acidify, creating a potential long term environmental problem. Investigations of the state of the tailings after 4 years show that these predictions were overly conservative. Only minor oxidation has occurred in the upper 2 metres of the tailings where the pH has locally dropped from 10 (discharge condition) to between 7 and 8. Below 2 metres, the tailings are essentially unchanged from their deposition state. The low rate of change in the tailings is due to their very low permeability which in turn is a consequence of the fine grain size (ca. 15 ¦m). Dewatering is extremely slow, and incursion of oxygenated water is negligible. Calculations suggest that water movement over 30 m will take at least 100 years and possibly 1000 years. The contingency plan is to capitalise on the very low permeability and keep the tailings from drying with a semipermeable cap. A layer of limestone will be added to the top of the tailings, beneath the cap, to enhance alkalinity of any percolating water. If acidification does occur, contrary to expectations, any acid produced will be neutralised by underlying calcite-bearing schist, schist in the concentrate impoundment wall, and the flotation tailings immediately downstream. In addition, dilution by alkaline ground and surface waters would further ameliorate any acidic discharge.

Jan 1, 1998

The area between Merrygoen and Digilah is located on a structural high that separates the Sydney Basin from the Great Artesian Basin, and hence the stratigraphic succession of younger rocks overlying the basement is relatively thin. The stratigraphy is briefly described and it is shown that fluvial sedimentation prevailed from Upper Permian through to Middle Jurassic times. Flint clays occur in the Permian, Triassic and Jurassic but only those in the Jurassic appear to have commercial value at present. The chemical, mineralogical, and physical properties of the flint clays are discussed.

Jan 1, 1973

By W T. C Kendall, H D. Ngo

Garden Well is a shear-hosted Archaean orogenic gold deposit located 100 km north of Laverton, Western Australia. The Garden Well processing plant is designed for a nominal 491 t/h milling rate and annual capacity of 4 Mt. The plant has three key innovations:1. a scrubbing circuit, expected to reduce grinding power consumption by up to 20 per cent2. a secondary cycloning/gravity circuit, providing a second opportunity for gravity gold recovery (additionally, the circuit effectively increases the leach residence time of the coarse gold bearing fraction of the leach feed by approximately 60 per cent, without any additional tankage)3. the use of mid-stream oxygenation to enhance gold recovery.The Garden Well deposit is free-milling with overall laboratory gravity/leach gold recoveries exceeding 95 per cent at a P80 grind size of 150 ¦m. Three mineralogical domains have been identified: oxide, transition and fresh, with the fresh domain having subdomains of fresh ultramafic and fresh shale. There is a high component of gravity recoverable gold in all three domains.This paper will discuss these innovations and the design challenges and the risk mitigation strategies that were adopted to ameliorate the prototyping risk. The performance of the plant since commissioning together with lessons for the future will also be presented.CITATION:Smith, R J, Kendall, W T C and Ngo, H D, 2013. Treatment plant innovation at Garden Well, in Proceedings World Gold 2013 , pp 315-324 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 26, 2013

By J Balzary, A Mohais

Dynamic market and operating conditions, coupled with an environment in which multiple objectives and trade-offs are common, pose major challenges for planners and schedulers working in any mining entity. Many mining companies recognise the need to shift from a siloed mining-focused push model to an integrated value chain, demand-driven approach, but there are still fundamental barriers in business process and the supporting technology preventing a consideration of end-to-end optimality.This paper presents some elements of experiences working with companies to adopt such advanced approaches. In addition to algorithmic elements, an approach to phased and gradual deployment of progressively more sophisticated optimisation models is described. From a practical software adoption perspective, it is believed that this last concern is also of primary importance. Next generation approaches to the optimisation of complex bulk commodity demand chains, namely iron ore and coal are presented, with case studies in the world’s largest integrated operations in Western Australia and Queensland from the raw material mined through to market. Utilising accurate simulation models supported by metaheuristic optimisation techniques, a range of ways to engineer a dynamic decision support framework that can adapt and change with the inevitable changes in commodity markets is explored. Objectives such as total revenue, margin, cost, NPV, throughput, asset utilisation, contractual penalties and bonuses, and energy consumption can be managed simultaneously across the mine, plant, logistics network, port operation, shipping and sales domains.CITATION:Balzary, J and Mohais, A, 2014. Consideration for multiobjective metaheuristic optimisation of large iron ore and coal supply chains, from resource to market, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014, pp 213–222 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014

By G Lumley

Gold miners have been underperforming the price of gold for a number of years. So why has the æmarketÆ undervalued our gold miners relative to what they have been mining? The low valuation ascribed to gold mining companies is largely attributable to their profit performance. In the period since 2006 the price of gold in A$ has risen about $900/oz, but the real cash margin (operating cash costs + cost of finding and/or acquiring deposits + the cost of bringing them into production) has only risen about A$100. Rising operating costs are a major part of this reduction in real margin. Energy and labour costs have risen more than the inflation rates across a number of countries as have taxes, royalties, etc. There are however, more significant contributors to the rising cost base. Firstly, in 2006 the average gold grade was 2.0 g/t; today it is 1.3 g/t. Secondly, strip ratios (for surface mines) have increased by 19 per cent during this time. Open cut mining equipment unit output across the world has dropped by 26 per cent during 2006 - 2012. Finally, costs have risen by 55 per cent during this time period. Consequently, there is now 3.8 times more mining cost required to produce an ounce of gold from surface mines compared with 2006. The decline in gold grade looks to be a permanent trend as does increasing strip ratio if output is to be maintained. Costs will continue to rise although cost control will be necessary. Reversing the decline in equipment performance and closing the gap between median and best practice provides the hope for a sustainable reversal of cost increases. The current gap between best practice and median performance has grown to 112 per cent for mining trucks, 168 per cent for excavators and 169 per cent for front end loaders. Closing this gap is the potential for a more profitable future. For most gold mining companies improving mining efficiency is not an option; it is an imperative.CITATION:Lumley, G, 2013. How many gold mines will inefficiency kill?, in Proceedings World Gold 2013 , pp 267-276 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 26, 2013

By T Trott, M Lewis, G Lumley

The analysis of equipment trends in The AusIMMÆs revision of Monograph 19 - Australasian Mining and Metallurgical Operating Practices (AMMOP) (in prep) in the paper by Graham Lumley raised some interesting, and in parts disturbing, trends in the Australian open cut mining industry. According to the Australian Bureau of Statistics (2011) the productivity of the whole mining industry is down by 34 per cent since 2001. In terms of open cut equipment, median output for draglines is down by 15 per cent since 2003, electric rope shovels are down by 41 per cent since 2003, hydraulic excavators are down by 39 per cent since 2008, front-end loaders are down by 39 per cent since 2007 and trucks are down by 41 per cent since 2006. Clearly e boom has not been good for the efficiency of the mines. During this same time, best practice (defined as the average of the top ten per cent by annual output per unit of input) has declined, but not by as much as the median (eg shovels down by eight per cent, excavators down by 19 per cent and FELs down by five per cent). This paper will build on the analysis of AMMOP to understand the differences occurring between median and best practice and identify the factors contributing to the decline in performance. As the industry enters a period of potentially lower prices for commodities and reduced margins, pressure will be brought to bear on mine sites to start moving more with the equipment they have. An understanding of where efficiency has been lost will be a key component in that. The information contained in AMMOP, and the subsequent analysis of that information in papers such as this one, will be crucial to reversing the decline in open cut equipment performance.CITATION:Lumley, G, Trott, T and Lewis, M, 2012. Reversing the trend in open pit mining equipment output, in Proceedings Eighth Open Pit OperatorsÆ Conference , pp 75-82 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 18, 2012

By R Redden

"The Didipio Gold-Copper project in the Philippines has been a well-defined reasonably high gold grade porphyry for almost two decades. OceanaGold are now bringing the project into production in late 2012 and have recently reoptimised the project with the goal of combining the inherent high grades with higher through-put than previously proposed that will see strong initial metal production. The project was discovered and well defined by 1995, but has seen some obstacles to development, namely sovereign risk, capital cost and project funding. The project strengths over this time that have kept the flames alive are: strong grades large orebody with low stripping ratios a simple beneficiation process and a clean high-grade concentrate strong support from the Philippines government.The initial study in 1998 used Gold and Copper price assumptions of $325/oz and $0.95 lb respectively. Today reserves are based on $950 and $2.85. So, being a porphyry with a large reducing grade halo, the deposit now lends itself to extraction on a much larger scale than before, without any significant capital expenditure as a larger open pit now dominates the project.Didipio is a game changer for OceanaGold, so it has been important to learn from history and to capitalise on a strong initial metal production profile. The project sits in a reasonably remote mountainous area of Luzon which sees annual typhoons and numerous short duration high intensity rainfall events and two rivers flowing through the project area, so it has not been without some innovative technical solutions.CITATION:Redden, R, 2012. Didipio - Learning the lessons, adapting and getting ready for production, in Proceedings Project Evaluation 2012, pp 67-76 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

May 24, 2012

By E Claridge

There are a number of major infrastructure tunnelling projects currently underway or proposed in New Zealand, including construction of new road and rail facilities and the refurbishment of existing road tunnels. These new projects have triggered a rethink of traditional practices in underground fire and life safety and local regulation.While there is a current surge in activity, tunnels have been a signifi cant part of New Zealand’s transport infrastructure for over a century. Despite this background, the new projects commonly face challenges that are symptoms of a national regulatory environment that has aspects that are inappropriate for underground environments. There are inconsistencies in local regional regulation and an absence of national guidance and standards relating to tunnel design. Historically, New Zealand has looked across the Tasman for guidance. Although recent overseas tunnel designs present learning opportunities, the adoption of international best practice and standards may not necessarily address local expectations or needs.This paper explores a number of specific matters affecting the design of road and rail tunnels in the New Zealand context, namely; the Building Regulations and associated local consenting processes and parties, and the responsibilities and needs of the New Zealand Fire Service.The discussion highlights the importance of a collaborative approach involving the designer, asset owner, regulators, emergency services, and other parties, and ensuring up-front clarity in design responsibility and ownership of residual risk.

Mar 8, 2011

By Gillies A. D S

The active history of foreign investment in the mining industry has resulted in Australia emerging as a major world producer of a range of mineral commodities. The current contribution to the national economy represented by mineral production and export revenues would not have occurred without both capital and expertise provided by foreign investors in the past. The initial foreign investment has led to the formation of Australian majority owned and controlled multi-national mining groups such as BHP Limited, CRA Limited and MIM Holdings Limited. These Australian companies, and others, are playing a significant part as foreign investors in the mining industries of Papua New Guinea (PNG) and Indonesia. The study examines issues of importance in foreign investment in each of the countries. It concludes that in Indonesia, the nationalisation of the Dutch mining industry in 1957 did much to deter foreign investment. The remarkable degree of policy stability brought about by the Contract of Works system since 1967 has gone a long way to restoring that confidence. The level of investment in the Indonesian mining sector is steadily increasing. Its attraction to Australian investors is a combination of policy stability, favourable fiscal terms, geological prospectivity for a range of commodities and proximity to Asian markets to the north. PNG has a stable policy regime which until recently has been free from political interference at the administrative level. As such, investors were developing confidence in the system and investment was progressively increasing as evidenced by growing exploration expenditures up to 1988. The 1989 Bougainville revolution caused a re-assessment of PNG's investment and country risk. The recent Mt Kare incident has further raised concerns over the government's ability to guarantee internal security. Foreign investors are faced with weighing concerns with the risks of operation in PNG against the undoubted geological prospectivity of the country. The fiscal regimes of Australia, Indonesia and PNG were compared by means of a simulated open pit gold mine in each country. The effect of taxation is examined by reference to the relative change in project internal rates of return (IRR). The comparison of the relative differences between pre-tax and post-tax IRRs provides a measure of the relative attractiveness of each fiscal regime.

Jan 1, 1994