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To the trustees of The SAIMM Scholarship Fund We have audited the annual financial statements of The SAIMM Scholarship Fund set out on pages 587 to 592 for the year ended 30 June 2005. These financial statements are the responsibility of the trustees. Our responsibility is to express an opinion on these financial statements based on our audit. Scope We have conducted our audit in accordance with International Standards on Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes: examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. Audit opinion In our opinion, the financial statements fairly present, in all material respects, the financial position of the trust at 30 June 2005 and the results of its operations and cash flows for the year then ended in accordance with South African Statements of Generally Accepted Accounting Practice.

Jan 1, 2005

By G. Gu, B. Fang, R. W. Revie, M. Elboujdaini

Electrochemical behavior of an X-80 pipeline steel, including frequency-sweep electrochemical-impedance spectroscopy (EIS), time-sweep EIS at a constant frequency and open-circuit potential (OCP) monitor, was investigated using four-point bending specimens subjected to a stress-corrosion cracking (SCC) test in a near-neutral pH environment. The capacitive loop became smaller with test duration, revealing an increase in the corrosion rate. The resistance obtained in the constant-frequency EIS test showed two regions, of which the region with a remarkable decrease in resistance transformed into a region of slow decrease, whereas the capacitance increased with test time indicating that iron dissolution was fast at first, and then a corrosion product or film formed and covered the surface, leading to the pitting formation.

Jan 1, 2005

By A. Mainza

It is common practice in the mineral processing industry to use hydrocyclones for particle classification. However, classification in the UG2 platinum circuits using the hydrocyclone poses major challenges due to the differences in density between silica and chromite, the two major components of this ore. Silica, the PGM carrying component, has an average density of 2.7 and the barren chromite component has an average density of 4.5. When conventional and flat bottom cyclones are used there is a misplacement of particles due to differences in density leading to inefficiencies in the classification by size. As a result of the density effect, coarse silica reports to the overflow, resulting in loss of recovery, and fine chromite reports to the underflow, resulting in loss of milling capacity and unnecessary production of fine chromite. A classifier based on a different concept was required in the classification of UG2 platinum ore. The three-product cyclone, which is a hydrocyclone with two concentric vortex finders to produce three distinct products, has been tested in the UG2 ore application and indications are that misplacement of particles due to differences in the component densities can be minimized through the use of this unit. Industrial and pilot plant trials were conducted and indications are that the three-product cyclone can be installed to selectively produce a middlings stream that can be screened using Pansep screens to provide a screen oversize, which is predominantly coarse silica that can be preferentially reground to recover the PGM values contained in the coarse silica.

Jan 1, 2005

By R. Mckinstry, M. Rantapaa, T. Bolles

"Measurable improvements in throughput have been documented at Barrick Goldstrike due to increased ore fragmentation through efficient drilling and blasting techniques. A decrease in throughput at the autoclave, due to increasingly hard ore, was identified in early 2002. A team of individuals from the open pit and process areas worked closely on the Drill-to-Mill (D2M) Continuous Improvement initiative to ensure that it would address the needs of both groups, with the target of actually improving throughput in future years, despite the projected harder ores. A series of tests were conducted to determine if adjustments to drilling and blasting could positively influence throughput.Better fragmentation and a subsequent increase in mill throughput were achieved through the use of electronic caps for more precision and flexibility, as well as for allowing extremely fast shots; explosives with a higher velocity of detonation (VOD) to provide for improved shock energy; and improved distribution of the explosives by decreasing pattern spacing. Early tests indicated a significant increase in throughput when processing identified harder ore. It is anticipated that the total process throughput (hard and soft ore) will increase by 6 tph in 2003 due to the improved fragmentation of the hard ore.Barrick Goldstrike’s D2M initiative includes roaster hard ore (BWI>17), as well as autoclave hard ore (BWI>15). Approximately 6 million tons of D2M material were shot in 2003, a relatively small amount compared to the 150 million tons to be mined. The benefit of additional ounces produced should far outweigh the additional drilling and blasting costs."

Jan 1, 2005

Effect of Iron on ash fusion temperature and waterwall deposits FeS, H2S on tube material corrosion and erosion [ ]

Jan 1, 2005

By SAIMM SAIMM

To the members of The South African Institute of Mining and Metallurgy We have audited the annual financial statements of The South African Institute of Mining and Metallurgy set out on pages 575 to 586 for the year ended 30 June 2005. These financial statements are the responsibility of the Institute?s Council. Our responsibility is to express an opinion on these financial statements based on our audit. Scope We have conducted our audit in accordance with International Standards on Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes: examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. Audit opinion In our opinion, the financial statements fairly present, in all material respects, the financial position of the Institute at 30 June 2005 and the results of its operations and cash flows for the year then ended in accordance with South African Statements of Generally Accepted Accounting Practice.

Jan 1, 2005

By Frederick W. Breaks, Andrew G. Tindle, Julie B. Selway

"Abstract - Rare-element pegmatites may host several economic commodities, such as tantalum (Taoxide minerals), tin (cassiterite), lithium (ceramic-grade spodumene and petalite), and cesium (pollucite). Key geological features that are common to pegmatites in the Superior province of Ontario and Manitoba, Canada, and in other large tantalum deposits worldwide, can be used in exploration.An exploration project for rare-element pegmatites should begin with an examination of a regional geology map. Rare-element pegmatites occur along large regional-scale faults in greenschist and amphibolite facies metamorphic terranes. They are typically hosted by mafic metavolcanic or metasedimentary rocks, and are located near peraluminous granite plutons (A/CNK > 1.0). Once a peraluminous granite pluton has been identified, then the next step is to determine if the pluton is barren or fertile. Fertile granites have elevated rare element contents, Mg/Li ratio < 10, and Nb/Ta ratio < 8. They commonly contain blocky K-feldspar and green muscovite. Key fractionation indicators can be plotted on a map of the fertile granite pluton to determine the fractionation direction: presence of tourmaline, beryl, and ferrocolumbite; Mn content in garnet; Rb content in bulk K-feldspar; and Mg/Li and Nb/Ta ratios in bulk granite samples. Pegmatite dikes with the most economic potential for Li-Cs-Ta deposits occur the greatest distance (up to 10 km) from the parent granite.Metasomatized host rocks are an indication of a nearby rare-element pegmatite. Metasomatic aureoles can be identified by their geochemistry: elevated Li, Rb, Cs, B, and F contents; and by their mineralogy: presence of tourmaline, (Rb, Cs)-enriched biotite, holmquistite, muscovite, and rarely garnet.Once a pegmatite dike has been located, the next step is to assess its potential to contain Ta mineralization. Pegmatites with the highest degree of fractionation (and thus the most economic potential for Li-Cs-Ta) contain blocky K-feldspar with >3,000 ppm Rb, K/Rb < 30, and >100 ppm Cs; and coarsegrained green muscovite with >2,000 ppm Li, >10,000 ppm Rb, >500 ppm Cs, and >65 ppm Ta. Pegmatites with Ta mineralization usually contain Li-rich minerals (e.g., spodumene, petalite, lepidolite, elbaite, amblygonite, and lithiophilite) and may contain Cs-rich minerals (e.g., pollucite, Cs-rich beryl). The ore minerals of Ta are commonly manganotantalite, manganocolumbite, wodginite, and microlite; Ta-rich cassiterite is also commonly present. Tantalum mineralization tends to occur in albitic aplite, mica-rich (lepidolite, cleavelandite ± lepidolite), and spodumene/petalite pegmatite zones."

Jan 1, 2005

By Robert A. Creaser, David R. Lentz

Abstract - The Moss molybdenite deposit, which was mined during both world wars, is hosted in late Grenvillian granitic pegmatite dikes. These dikes are locally aplitic, and intrude the late tectonic Onslow syenite (probably correlative with the ~1090-1070 Ma Kensington suite), which is in turn intrusive into the 1170-1155 Ma Chevreuil intrusive suite of southwestern Quebec. A Re-Os model age of 1053 ± 4 Ma (8.3 ppm Re) was obtained for molybdenite from a pegmatitic veinlet within an aplitic phase of the dike. A much younger Re-Os date of 860.9 ± 9.2 Ma (6.9 ppm Re) obtained previously from a pyrrhotiteand pyrite-rich metasomatic vein might reflect Os diffusion during slow cooling of the Grenville province, because this age is consistent with K-Ar dates reported from the region. Alternatively, the similarity between these younger dates may be fortuitous, and may instead relate to sampling issues for molybdenite. The Mo-rich granitic dikes at the Moss deposit are similar to other Mo-rich A-type pegmatite-aplite granitic dike systems that formed immediately after the peak of the Ottawan orogeny (1070-1090 Ma), and possibly are more closely related to the Kensington suite than previously thought.

Jan 1, 2005

By Yongfeng Jia

Lime neutralization and co-precipitation of As(V) with iron(III) is the most widely used and most economical method for the removal of arsenic from mineral processing solutions and effluents. However, the arsenate fixation mechanism in the coprecipitated solids is not fully understood. It was suggested by various researchers to be a ferrihydrite precipitation process during which arsenate is removed by adsorption on ferrihydrite. In this study, XRD, EXAFS and microprobe were employed for the speciation of arsenic and the effect of various factors on arsenic solubility was also investigated. The results indicate that coprecipitation is a more complicated process than simple adsorption resulting in lower arsenic solubilities. Poorly crystalline ferric arsenate was observed for the first time to be present in the coprecipitated solids. In case of lime as base, there exists some type of Ca-Fe-arsenate association. A general term ?coprecipitate? is suggested to describe the precipitated arsenic-bearing solids instead of those widely used specific terms ?arsenical ferrihydrite? or ?arsenic-bearing ferrihydrite?.

Jan 1, 2005

By W. F. Drinkard

Many in the environmental movement have focused on this element. But, nothing they or anyone does will change the amount of arsenic in the world. This report is on actual commercial plants that we developed and operated to recover or stabilize arsenic values from metallurgical dusts from gold and copper pyro operations and arsenical gold bearing ores. When they were available gold and copper values were recovered. Our experience in arsenic extends over thirty years. My first corporation, Mineral Research & Development Corporation was the first in North America to manufacture the then new CCA (copper-chrome-arsenic) wood preservatives. This class of wood preservatives proved to be so effective that it made wood into an entirely new material of construction. It is not uncommon for wood properly treated with arsenical CCA preservatives to last for thirty; forty, and sixty years. Over a hundred years have been projected in some field tests. Hundreds of thousands of trees have been saved. Millions more trees would have been saved had environmentalists not decided that their arsenic phobia was more important than trees. There are several variations of CCA. The most popular is CCA-C. Its formula is: CrO3 . . . . . . . . . . . . . . . . . . . 47.5% CuO . . . . . . . . . . . . . . . . . . . 18.5% As2O5 . . . . . . . . . . . . . . . . . 34.0% Until recent restrictions were placed on the consumption of arsenical wood preservatives, annual consumption in North America was about 150,000,000 lbs./yr. About 64,500,000 of arsenic as the pentoxide was safely consumed this way. World CCA consumption has been about double the above figures or 300,000,000 lbs. as 100% CCA and 129,000,000 lbs/yr as As2O5. Close to 100% of all the arsenic used in wood preservatives is derived from gold or copper processing. The valence of arsenic required for CCA wood preservatives and many other markets is the same valence that is required for stabilization. The economic challenge is how to get there. We have built and operated eleven plants to oxidize arsenic trioxide to its pentavalent form. Most of these have been classic in that they used a common oxidants such as hydrogen peroxide or nitric acid to achieve this.

Jan 1, 2005

By J. P. Nicoud

"The Frog&apos;s Leg project is located in the Kundana mining centre 22 kms West of Kalgoorlie, in Western Australia. The Mines and Resources Australia (MRA) Dioro Exploration Joint Venture has had considerable exploration success centred on the high grade Frog&apos;s Leg discovery. A gold resource of 930,000 ounces has been defined. At Frog&apos;s Leg there have been three discrete resource domains recognised - Supergene, Contact, and Quartz Lodes. This paper describes the metallurgical test work undertaken.The selection of the drill core was a joint effort by the MRA Senior Geologist and Mineral Engineering Technical Services (METS) to ensure the samples were representative of the ore body. Optimisation of gold recovery was essential as both the Contact and Quartz Lodes have exceptionally high percentages of free gold as well as significantly higher grades than the typical open pit ores found in Western Australia. The metallurgical scope of work included documenting all of the metallurgical test results, establishing the comminution characteristics, determining the percentage of gravity recoverable gold, evaluating the cyanide leach characteristics and determining the tailings characteristics. These studies were used as the basis of flow sheet design to treat both ores and to discuss the advantages and disadvantages of alternative flowsheets. Investigations also included toll milling options at various plants as well as second hand and transportable plants. Considerable technical effort has been put into ore characterisation by way of test work aimed at managing the process risk at each stage of project development, including mitigation. MRA also carried out detailed mineralogical analysis of the ores."

Jan 1, 2005

By T. Y. Chong, J. A. Folinsbee

Since milling began in 1909, the PJV Dome mill has been expanded several times, to the current throughput of 11,500 tonnes per day. PJV recovers free gold using crushing and grinding followed by gravity concentration. The remaining gold in the gravity tails is recovered by cyanide leaching followed by Carbon-In -Pulp processing. Prior to 1993, cyanide tailings were impounded in the tailings pond where cyanide was allowed to degrade naturally. Effluent was discharged seasonally during the summer and early autumn to maintain the water balance. In 1993, an Effluent Treatment Plant (ETP) was designed and constructed for the purpose of removing dissolved metals and suspended solids. In 1997, an INCO SO2/Air cyanide destruction process was added to the ETP. Even though the ETP was successful in meeting the cyanide, metals and total suspended solids (TSS) discharge limits, often the treated effluent failed to pass toxicity tests. Following successful laboratory and plant scale testing, the addition of the chelant EDTA (ethylene diamine-tetra-acetic-acid) was commenced in the 1999 operating season. To date, discharged effluent has passed all toxicity tests. This paper describes the evolution of the ETP from its early conception to the various phases of upgrade needed to meet the MISA discharge limits.

Jan 1, 2005

By R. Narendrula, S. P. Singh

The productivity of a loading machine is affected by several factors. One of the most significant is the characteristic of the muck being loaded. A study was conducted to examine the effects of the looseness, angle of repose, size distribution and moisture content of the blasted material on the efficiency of the loading machine. The study was conducted in the following stages: (a) controlled experiments in the lab, (b) tests with loader simulator and (c) field work in an operating mine. It was found that looseness (%void) in the muck increases with the increase in the value of the mean particle size and index of uniformity of the fragmented rock. Looseness and angle of repose affect the fill factor and the digging cycle time of a loader and in turn the productivity of the equipment. Moisture content affects the angle of repose as well as the stickiness of the material to the loader’s bucket. It was observed that the angle of repose increased with the increase in the mean particle size and the moisture content of the muck. It was also found that the bucket full factor and rate of scooping decrease with the increase in the values of mean particle size and index of uniformity. This was also conformed during fieldwork that bucket fill factor decreases with the increase in the mean particle size as well as the index of uniformity.

Jan 1, 2005

By Richard T. Stain

"In 2001, a pile trial site was established at Limelette in Belgium consisting of 25 displacement screw piles and 5 driven pre-cast piles. Interested parties were invited to participate in a pile prediction event, whereby they would submit predicted static load test behaviour in the form of load settlement plots. These predictions could be based on soil investigation results supplied by the organizers, or dynamic load test measurements.Following the submission deadline, the organisers released the results of static load tests for comparison.Of all the six participants, including Statnamic, the SIMBAT method was independently accredited with achieving the best predictions.This paper examines at the differences between SIMBAT and other systems, and presents the correlations from the Limelette trial.INTRODUCTIONThe Belgian Building Research Institute (BBRI) initiated an ambitious research programme involving the construction and testing of some 60 trial piles spread between two sites, a clay site at Sint Kateline Waver and a sandy site at the BBRI headquarters at Limelette. The project was financed largely by the Belgian Ministry of Economic affairs. (ref 1.) This paper refers only to the second site.At Limelette, six different types of displacement pile were installed: one driven pre-cast and five cast in place screw piles - Atlas, DeWaal, Fundex, Olivier and Omega. A detailed site investigation was carried out including in-situ and laboratory tests.An international pile capacity prediction event was publicised, participants being invited to predict static pile behaviour. Predictions could be based on:"

Jan 1, 2005

By J. R. Donald, K. Scholey

"Nickel has been mined and processed from the Sudbury basin for over 100 years. During this period, the process has evolved into what is one of the largest and most complex mining and metallurgical facilities in the world. This paper will describe the geology and mining of the Sudbury basin as well as the Copper Cliff metallurgical flowsheet circa 2005, including:•,Clarabelle Mill,•,The flash smelting furnaces,•,The bulk converters,•,Matte casting, separation, and processing•,The carbonyl refineries•,Carbonyl residue processing•,Copper processing•,Sulphur productsThe challenges of today and the opportunities for the future are discussed."

Jan 1, 2005

By K. Fagerlund, L. Rosenback, T. Mäkinen, Y. Anjala

This paper deals with the nickel smelter and refinery concepts Outokumpu has applied at Harjavalta and several other plants. Also other process routes and modifications developed and tested by Outokumpu during the recent years are highlighted. Outokumpu started nickel production in Harjavalta in 1959. Until 1995 the Flash Smelting - Peirce-Smith (PS) converting route was applied. High grade nickel matte from the converting step was further refined by means of leaching and electrowinning to produce cathode nickel. In 1995 the nickel production capacity was increased from 17 000 t/a to 52 000 t/a based on the Direct Outokumpu Nickel Smelting Process (DON). In the DON process PS converting is eliminated and high grade nickel matte with low Fe-content is directly produced in the flash smelting furnace (FSF). Metal values from the smelting slag are recovered in the electric furnace (EF) as iron containing Ni-matte. The DON process can be operated with either two matte concept, where high grade FSF matte and EF matte are produced, or a single matte concept, where EF matte is recycled to the smelting furnace and thus only one type of high grade matte is obtained. The additional refinery capacity at Harjavalta is based on hydrogen reduction producing.

Jan 1, 2005

During the past 10 years, research work to improve the survey of stope limits after mining supplied useful information, particularly for large open and sub-level stopes, regarding waste dilution caused by differences between final production limits and planned stope limits. However, the efficiency of this information to improve the overall efficiency of the mining process is limited, given that the impacts of inaccurate ore limits leading to dilution (sensu stricto) and ore losses haw not been considered adequately. Geological/sampling information should be optimized in terms of quantity and/or quality for the deposit characteristics and the constraints of the mining method used. As industry practice regarding the definition and recording of dilution is flexible and as ore losses frequently am poorly doc-umented, the use of these terms is reviewed. Simulations were carried out on two typical narrow gold deposits, based on an earlier study at Inco&apos;s Thompson mine regarding the impacts of wide to narrow delineation grids using recorded variations of vein geometry. Vertical to sub-vertical deposits of 3 m and 6 m widths mined by long-hole open stopes were considered. Deposits delineated by 7.5 m (25 ft) grids were taken as a base case and the impacts of less accurate limits in conjunction with long hole mining based only on a 15 m (50 ft) delin¬eation grid. The impacts of overestimation (dilution) and underestimation (metal losses) were considered separately, using the average error of +/-0.62 m recorded in the Inco study. The impact of less accurate information was much stronger on the narrower deposit: both dilution and ore losses diminished the net present value of the 3 m wide deposit by 39.27% and 45.41%, respectively, and that of the 6 m wide deposit by 12.84% and 11.55%. As the impacts of ore loss and those of dilution on the net present value am almost identical in these simulations, we could, in practice, assume a 50/50 split between dilution and ore losses in such a case. These results do no take into account the effects of local optimization measures taken at the mine production level (blasthole sampling near stope limits, etc.) The potential impacts of geological and sampling uncertainties in terms of lower NPV justify and require more systematic efforts to ensure that deposit appraisal work and feasibility studies are adequate to optimize company revenue and competitive returns to investors from mine production activities.

Jan 1, 2005

By Robert Yobou, Jacques Naho, Benjamin A. Allou, Jacques Carignan, Huan-Zhang Lu, Jayanta Guha, Koffi Pothin

"Résumé - Les seules productions de columbo-tantalite en Côte d&apos;Ivoire sont effectuées dans les éluvions, colluvions et alluvions d&apos;Issia, au Centre-Ouest de la Côte d&apos;Ivoire. Même si un lien direct avec les roches granitiques est suspecté, aucune attention particulière n&apos;a été accordée à l&apos;étude de la minéralisation primaire en relation avec l&apos;évolution de ces granites et des pegmatites associées. Ces granites, qui sont en intrusion dans les roches sédimentaires du Protérozoïque inférieur, comprennent: le granite orienté à deux micas (type Lobo), le granite orienté à muscovite dominante (type Bitapia) et le granite porphyroïde non orienté à muscovite dominante (type Issia). Les résultats de cette étude indiquent que les pegmatites à Nb-Ta-Be-Li sont liées au granite de type Issia. Les observations de terrain et les analyses sur roche totale montrent que: (1) les trois principaux granites de la région sont de type-S et peralumineux dans leur composition, (2) ils ont été formés pendant la période tardi- à post-Éburnéenne, (3) le granite de type Issia fut le dernier à se former.Les pegmatites liées au granite de type Issia ont été classées en quatre types : A- pegmatites stériles; B- pegmatites à Be; C- pegmatites zonées à Nb-Ta-Be; et D- pegmatites zonées à Be-Nb-Ta-Li. Les pegmatites zonées comprennent les zones suivantes: I- zone à aplite; II- zone graphique; III- zone à albite, microcline, béryl et columbo-tantalite; IV- zone à microcline massive; V- zone à quartztourmaline. Ces pegmatites présentent une zone d&apos;altération métasomatique externe.La minéralisation de Ta, Nb, et Be est liée à la zone III des pegmatites de types C et D, la minéralisation de Li est associée aux greisens qui peuvent être observés n&apos;importe où dans les pegmatites de type D. Les données de terrain et de laboratoire indiquent que le granite de type Issia est la roche parentale des pegmatites à éléments rares de la région. Les pegmatites minéralisées sont distribuées seulement autour du granite de type Issia et les patrons des terres rares des granites et ceux des pegmatites à éléments rares sont très similaires. Les analyses de la composition totale montrent un lien génétique entre le granite de type Issia et les pegmatites à éléments rares. Il est suggéré que les pegmatites ont été formées durant le transport et la cristallisation fractionnée du magma. Les éléments rares sont restés dans le liquide résiduel jusqu&apos;à ce que les conditions favorables à leur précipitation soient atteintes.L&apos;établissement de ce lien génétique ouvre des voies pour des nouvelles stratégies d&apos;exploration."

Jan 1, 2005

By Amanda Verno, Danilo Coppe, Andrea Reggiani, Adolfo Bacci

The methodological example that comes from the demolition of the Genoa grain silos, should not been considered as an auto-celebration of a difficult project successfully executed, but should serve as an example of a new generation of demolitions where different technologies, often in competition, come together to obtain the optimal solution of a problem. Dynamite, diamond wire and hydraulic excavators overcame the most impressive building in town, working in very little spaces and on a geotechnically difficult site; moreover, a study on the dynamics and the effects of the impact of the structure, an analysis of the presence of potentially explosive dusts and an extensive vibrometric monitoring supported the design and the development of the operations.

Jan 1, 2005

The lignites of Otago and Southland offer a potentially viable future feedstock for electricity production and possible conversion to petrochemicals or liquid fuels. The deposits, when combined, represent New ZealandÆs largest energy inventory; equivalent to about 74 000 petajoules û or approximately 35 times current natural gas reserves. Too often dismissed as irrelevant to New ZealandÆs energy future because of adverse perceptions of the value of low rank coals, the strategic value of this resource is in fact huge. &nbsp; Investigations of the lignites extend back over more than 50 years (LFTB various, CRL Energy Ltd). Whilst it is not the intention of this paper to review this work, these investigations have confirmed the suitability of the resource as a feedstock for thermochemical conversion. Current estimates of South Island lignite mining costs are NZ$1.0 - 3.0/GJ (Natusch 2005), making these resources amongst the most competitively-priced energy sources available world-wide. &nbsp; This value, however, will only be captured if we as a country begin to envisage a world-scale, long-life, integrated and multi-faceted development sized to supply world markets for chemicals or fuels. Recent CAE studies (Hooper and Riddolls, 2005) have emphasised the vital importance of ensuring that any exploitation of this resource maximises their value to New Zealand. The question that thus must be applied is how might large-scale utilisation of the resource fit with New ZealandÆs primary energy supply, and its potential for the export of high-value commodities. &nbsp; From the broader perspective of New ZealandÆs total energy supply equation we need to examine other supply options beyond just the generation of electricity. We face in this country a situation wherein almost all our liquid fuels feedstock has to be imported with projections for an increasing dependence on imported oil. In addition NZ has a natural gas reserves-to-production ratio of less than ten years, and dwindling supply from local production. Without further natural gas discoveries, New Zealand has only a window of approximately five years before we will need to commit to imported LNG or some other thermal fuels option. &nbsp; In other words, New Zealand is facing an uncertain future unless we can restore energy inventories to cover an adequate strategic reserve capacity as well as enable long-term investment in alternative sources. Within this context the South Island lignite resources are thus deserving of more attention. The extent of the resource is well known, its suitability for conversion reasonably assessed, and its magnitude such that there is little doubt that lignite conversion could adequately meet NZÆs future energy needs for many years out. &nbsp; This paper reviews coal gasification technology, its application to lignite and the possibilities for future development of the lignite resources. It is argued that the strategic imperative for this country is to secure the lignite resources as a primary energy source for this country well into the latter half of this century.

Jan 1, 2005