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By D Connelly

Silver and gold bearing ore from the Troy Resources NL Casposo Gold-Silver Project, located within the San Juan Province of Argentina contains a complex mix of gold, silver, electrum and silver sulphides in the ore. Casposo is a typical low sulphidation epithermal style gold–silver deposit where mineralisation is hosted within rhyolite – andesite flows and breccias. Veins are typically banded quartz–chalcedony colloform - crustiform banded with quartz - carbonate infill. Mineralisation is associated with an assemblage consisting of quartz, chalcedony, adularia, calcite, illite, sericite and trace sulphides. Gold and silver occur as electrum, native silver, sulfosalts and silver sulphides. This paper presents a case study that describes the process selection, development and engineering of a tailored process plant for the recovery of gold and silver from this ore.The original feasibility study, modelling, metallurgical testwork and engineering studies are outlined. The final flowsheet was based on minimising capital cost, operability, recovery and minimising technical risk.The process flowsheet uses the traditional Merrill Crowe route because of the high silver to gold ratio in the feed and achieves maximum gold and silver recovery while providing a common facility for future ore body treatment.

Aug 8, 2011

By G Jones

The Singapore Land Transport Authority (LTA) has been procuring the expansion of their underground mass rapid transit rail network at a prodigious rate since the first line opened in 1987. Four lines (149 km) are currently operating and several more lines are at various stages of planning/construction; one of these is the Downtown line stage 2 (DTL 2).DTL 2 contract C917 was awarded in September 2009 for S$320 M. On 18 June 2013 the original contractor became insolvent, leaving the works incomplete. Following a fast-tracked tender process, McConnell Dowell was awarded the S$254 M contract on 29 August 2013 to complete the works. This contract includes two underground stations constructed by cut-and-cover methods and twin bored tunnels between the stations. Each tunnel is 1400 m long, excavated by earth pressure balanced (EPB) tunnel boring machines (TBM) at an average depth of 20 m and segment lined to 5.8 m inner diameter. The tunnel alignment is located under a busy five-lane road lined with prime residential real estate and congested with utilities.To compound the difficulty the tunnels are located within the notorious Bukit Timah Granite formation. This has a very wide range of strength, from below 1 MPa to over 300 MPa. This strength range is a consequence of six weathering grades, from soil to fresh rock, with the fresh granite causing severe abrasion problems. The various grades can occur within a very short distance of each other. Consequently, the problem of supporting a mixed face exists, particularly in the intermediate weathering grades where intact rock is encountered in the invert and corestones within a loose soil matrix in the crown, which can increase the instability by allowing the ground to flow into the TBM.The focus of this paper will be the excavation of the bored tunnels by EPB TBM used by McConnell Dowell to complete these challenging works.CITATION:Jones, G and Shepherd, J, 2014. Earth pressure balanced tunnelling in a dense urban environment, C917A, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 41–50 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

By W F. E Ouedraogo

This study data has been collected on a three-month period from November 2020 to January 2021 and based on three different pits: Vindaloo Main, Vindaloo Central and Bouere. Both pits having specific geotechnical and geological properties. Vindaloo Main, VIM, and Central, VIC, have the same mineral composition as volcanic tuff with felsic intrusion or monzodiorite, both rock mass is fractured with small joint. Geotechnically the uniaxial compressive strength UCS between 200 to 300 Mpa, Young’s Modulus 110 Gpa and Poisson’s ratio between 0.1 to 0.2. Bouere pit is basically made of volcanic tuff stock works as intrusive, UCS between 200 to 300 Mpa, Young’s Modulus 103 Gpa and Poisson’s ratio between 0.2 to 0.3. The first step of this study was to collect various data from mining operations around the drilling and blasting inputs. This was based around the different scenario of drilling parameters and the outcomes on the blasting, and how they impact load and haul operations and productivities of excavators from the heave to the last flitch. In most cases surface photos of the blast do not represent the overall fragmentation in the blast volume. Photos of the different flitches will not show only the effect of blast, as the loading operation generating more fragmentation by applying weight on the muck pile. Then the record of the different material uses for feeding. The last part of the analysis is the physical data from process plant such as particle size, throughput rate, both for the crusher and the mill, per pit and material and the specific Bond Work index (BWI). Fine particle quantity production is also a key point as is one direct indicator of milling performance. In overall, making link to BWI can influence at each stage of the mining to the processing operation. Drill and blast constitute a high cost in hard rock mining and trying to reduce these costs without an overview of all the integrated processes and context could end up by cost relocating to other activities in the process. However, the cost associated to size reduction builds exponentially as the particle size becomes smaller.

Jun 22, 2022

Estimating Particle Size Fraction Proportions - A Multiscale Approach Using Multiple Kernel Learning

Sep 13, 2010

As this is the first occasion I have had, and probably will be the only opportunity I shall have, of addressing such a large gathering of members and of student members of the Institute, I desire to- express my very deep appreciation of the honour 'you have paid me in electing me to the office of President for the current year. I realise also that such selection is a tribute to the Company which controls operations here, the centre selected for the annual meeting, but nevertheless there is afforded to the recipient a great deal of pride and of pleasure to hold the highest office in what is, in my opinion, undoubtedly the most important engineering society in Australasia.The past year has witnessed an unprecedented and unparalleled event in the history of the British Empire, and I think that we must all feel a wonderful sense of proud patriotism; the whole world was forced to admire the public calm and the dignity which accompanied the change in our Sovereign Ruler, and great tribute is due to the statesmanship of the Prime Minister, Mr. Baldwin. At this time, we should, I think, place on record our prayer, in common with all his people, that His Majesty, King George the Sixth, may enjoy a long and prosperous reign.The meeting at Port Pirie recalls one who did so much for the advancement of mining and metallurgy, especially in Australia. I refer to the late Mr. Delprat, who, as General Manager of The Broken Hill Proprietary Company Limited, had under his control for many years the smeltery in this centre. As you are aware, he had been elected an honorary member of this Institute, as well as of our sister Institutes in England and in America...

Jan 1, 1937

By N Redwood, N Fowkes, A Bassom, S Durkin

"It is well known that from time-to-time a vehicle will interact with a bund or windrow and often the barrier is insufficient to safely arrest that vehicle. The result of such an incident is often catastrophic. Regulations around the requirement for edge protection near pit edges vary between jurisdictions. Generally in Australia regulations tend to be around placing the responsibility on the mine operator to provide ‘adequate’ or ‘appropriate’ edge protection. Guidelines often place a minimum height of bund at between half and two-thirds the diameter of the largest tyre on-site.Safescape has identified the opportunity to improve safety in open pit edge protection and is currently developing the Edge Protector (EP) product. The EP is designed to create a vertical front face to a conventional broken rock safety bund. The fundamental premise of the product is that by creating a vertical front face to the bund, trucks cannot easily drive up over the bund and instead have to push through the rock to get to the other side.In addition to providing a safer system for arresting vehicles, the vertical front face also means that extra space is made available in the haul road. This can either be used to facilitate larger trucks or when designing a new mine, with an increase in overall pit slope.This paper outlines the research and development of a new edge protection product. Discussion will include project objectives, economic incentive for mines to apply the system, mathematical analysis of the truck/bund interaction and physical testing of the product.Citation:Durkin, S, Fowkes, N, Redwood, N and Bassom, A, 2016. Innovative Approach to Open Pit Edge Protection, in Proceedings Ninth AusIMM Open Pit Operators' Conference 2016, pp 138–149 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Nov 15, 2016

By A Galli

Traditionally pit optimisation and scheduling is carried out assuming that the resources, the commodity prices and production costs are all known. Once the pit contour and the mining schedule have been determined, geostatistical simulations can be used to assess the impact of the uncertainty in the resources on the pit design and the schedule, and likewise stochastic simulations can be used to test its robustness to fluctuations in costs and prices. But it would be more interesting to have a dynamic procedure for optimising the pit as the resources become better known and as economic factors such as commodity prices and costs evolve over time. This paper presents a novel approach for doing this. Rather than working with millions of small selective mining units, it was decided to work with large blocks, called macro-blocks. Mining sequences are defined as the quantities to be extracted from each macro-block in each time period. Feasible mining sequences are mining sequences that respect the accessibility constraints, and also the geometric constraints on the amounts that can be extracted from any one block over time, or from all the active blocks at a given time. Having defined feasible mining sequences, their mathematical properties were studied. It was found that natural breakpoints occur in the sequences when one set of blocks have been completely mined out, thereby opening up access to others. It was discovered that families of sequences exist, and that they are convex and closed under certain types of row permutation operations. Convexity is an advantage when optimising. The closure property opens up the possibility of mixing and matching subsequences of rows in the sequences. Another interesting property is that the sequences form branching families, rather like the binomial and trinomial trees used to model prices in finance and in real options.It is easy to generate large numbers of feasible mining sequences randomly. A two-step procedure is used to find the best one (or the best few) using three economic criteria: expected NPV,the probability of a negative NPV, and the percentage of years when the cash flow is negative. The procedure was tested on a synthetic gold mine based on the characteristics of the Essakane mine in Burkina Faso. The results were encouraging.

Sep 26, 2011

By A Bossilkov

Although environmental and sustainable development reporting has now become widespread in the Australian mining and minerals processing sector, there remains a great deal of diversity in reporting contents and practice. Moreover concerns remain about the effectiveness of reporting for delivering the companyÆs business case for sustainable development as well as for communicating sustainable development performance to a range of external stakeholders. This paper therefore reviews the status of sustainable development reporting in the Australian minerals processing industry. Pertinent international and national developments are briefly captured, leading to a discussion of the framework for integrating sustainable development reporting with sustainable development management (as proposed by the World Business Council for Sustainable Development). This leads to a discussion of the results of a comparative review of sustainable development reports of a cross-section of eight Australian resource companies. Best practice elements are highlighted in regard to reporting on company context, governance, performance and assurance.

Jan 1, 2004

By E Westthorp

Final mine sealing of BMA’s Crinum North mine, near Emerald, Queensland was undertaken in December 2015. Due to the benign atmospheric environment at Crinum North, the Queensland Mines Rescue Service (QMRS) Górniczy Agregat Gasniczy (GAG) unit was utilised to reduce oxygen levels throughout the underground atmosphere as part of the final sealing process.The GAG was utilised by way of a vertical borehole from the surface to seam to successfully reduce oxygen levels throughout the underground mine workings. Application of the GAG unit enabled the underground mine to be classified as stable and inert within days of the GAG operation, and subsequently cease gas monitoring at Crinum North. The data and information obtained from this activity provides valuable information to the underground coal mining industry on successful application of the GAG in realistic situations.This paper discusses the strategy used for sealing, the assisted inertisation and the results obtained from the application of the GAG unit. It discusses both the overall results and gives a detailed review of the gas monitoring data obtained via the tube bundle and real-time system, both during and following the use of the GAG unit.Gas monitoring results obtained and the strategy used are critical to share with the industry to obtain a better understanding of how the GAG unit works, and how it can be applied for emergency preparedness, emergency response or planned inertisation.CITATION:Westthorp, E, 2017. A review of the strategy and gas monitoring results obtained during the use of Queensland Mines Rescue Service GAG unit at Crinum North mine, in Proceedings Australian Mine Vent Conference 2017, pp 309–318 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 28, 2017

By MáAndrusiewicz, M M. Hilden, M S. Powell, P D. Kay, B Foggiatto

Circuits with unconventional and potentially more complex designs are predicted to become more common in the future as plant designers and operators look to process ores more efficiently. Ideas have been presented on how circuit design may be changed to utilise todayÆs technology to address tomorrowÆs challenges (Powell and Bye, 2009; Powell, Benzer and Mainza, 2011a). High pressure grinding roll (HPGR) installations in various configurations; application of preconcentration plants eg sorting, magnetic or gravity separation; and preweakening devices eg microwave processing; are all examples of technologies having the potential to deliver a significant reduction in comminution energy for ores amenable to these processes. Not only will future novel circuits contain equipment for which models are not as well developed (if at all), many will likely require the ability to respond to variations in feed, and interact with geometallurgical models requiring process adjustments when the ore characteristics change.In order to confidently simulate more complex circuits and accommodate variations in feed type, a significant advancement in modelling and simulation capability is required. This includes dealing with multiple components in the feed, accommodating different competencies of ore, utilising physical separation opportunities and tracking the grade reporting along the different potential processing routes. Developing the means to simulate complex circuits has been a key priority of a collaborative group of comminution researchers working to solve these challenges.Simulations are presented utilising a new configurable simulation interface called the model developers kit (MDK). The MDK is designed to accommodate multi-components and incorporate new models under development. These will be used to demonstrate the potential of flexible circuit design, based on measured ore properties and equipment performance.CITATION:Foggiatto, B, Hilden, M M, Powell, M S, Kay, P D and Andrusiewicz, M, 2012. Simulation of flexible circuits, in Proceedings 11th AusIMM Mill OperatorsÆ Conference, pp 291-298 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 29, 2012

By J H. Zietsman

The transition to more sustainable metal production is receiving much attention at present, and the iron and steel industry is at the centre of the conversation. New, more environmentally friendly production technologies, such as direct reduced iron (DRI) smelting furnaces, need to be developed in a short period of time. This necessitates increased use of computational modelling that incorporates more accurate material descriptions. The combination of large-scale multiphysics models of high-temperature processes with CALPHAD material descriptions leads to infeasible computation times. This can be resolved with the previously reported RapidThermo framework, which has been demonstrated to make equilibrium calculations orders of magnitude faster, within controllable limits of accuracy. In this paper, we explain how further material properties, which are important to modelling hightemperature reactors, can be added to the RapidThermo framework. This can improve the accuracy and usefulness of process and multiphysics models in the development of new technologies, which can significantly accelerate development cycles.

Aug 21, 2024

This paper will address this question from the point of view of a drill and blast engineer or researcher working in open cut and underground mining operations. The paper will establish a common set of reference standards for high-speed imaging and data capture, which engineers and researchers can apply when deciding which type of imaging technology is appropriate. It will present an overview of current image analysis technologies and practices in use across a range of appropriate scientific fields and draw lines of commonality of approach between these fields and the field of mining and blasting applications analysis and research. In addition, the paper will examine the different technologies from an image quality and data stream reference point, ease of operation, cost, and reliability parameters. Finally, this paper will present an argument for the hybridisation of established and new technologies which could provide a more beneficial approach to the use of imaging as a tool of quality control, research and analysis in the mining based industries. This will include a novel approach to digital high-speed imaging and data analysis in the field, which should deliver high-quality images and data analysis in a time frame that is more appropriate to the need for immediate action, analysis and problem solving.

Jan 1, 2007

By G du Toit, P L. Gillot, M Swanepoel

Randgold Resources’ Loulo-Gounkoto Complex is one of the largest gold mining operations in Mali, West Africa. The mine, which is situated on the western border with Senegal, treats more than 4 Mt/a of ore through a conventional three-stage crushing and ball milling circuit followed by a carbon-in-leach plant. Ore supply is achieved by a combination of open pit and underground mining, with the majority of the ore supply sourced from the Gara and Yalea underground mines situated approximately 2 km and 6 km respectively from the gold plant.In 2011, Randgold Resources commissioned Golder Associates to perform an evaluation study for providing structural backfill to both the Gara and Yalea underground mines using the current gold plant tailings. The test work performed as part of the evaluation study concluded the need for a tailings cycloning and dewatering facility capable of producing slurry at a solids concentration of 65 per cent with a particle size distribution that had minimum 25 per cent passing 20 µm and less than 5 per cent of -5 µm material. Tailings desliming was required to ensure a consistent feed quality to the paste preparation plants and to ensure that the system would be capable of handling variation in the feed composition from the gold plant.WorleyParsons, previously TWP Projects, was contracted by Randgold Resources to complete the engineering design for the slurry preparation plant, whilst Golder Associates was retained to complete the engineering design of the two paste preparation plants.This paper discusses the test work, design considerations and engineering design of the slurry preparation plant, termed the ‘intermediate plant’, as well as all ancillary facilities required for the delivery of the deslimed slurry to the paste preparation plants located at the two underground mines.CITATION:Swanepoel, M, du Toit, G and Gillot, P L, 2014. Case study – engineering design for a slurry preparation plant for a paste application in West Africa, in Proceedings 12th AusIMM Mill Operators’ Conference 2014 , pp 477–486 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 1, 2014

By F Diaz, G Hovestadt, B Friedrich, D Latacz, M Sommerfeld

The metallurgical sector significantly contributes to the global carbon footprint and encounters the challenge of developing more sustainable production methods. This study introduces novel approaches aimed at reducing CO2 emissions within the industrial sector, some of which have been developed up to the demonstration scale. In two case studies, urban waste from the agricultural sector (corn, olives, coconut etc) and waste electrical or electronic equipment (WEEE) recycling residues (shredder light fractions (SLF)) were subjected to thermal treatment. The resulting materials were then used as substitutes for conventional fossil-based reducing agents in both the copper and ferroalloy industries. Furthermore, hydrogen was employed at different scales to assess its efficacy as a reducing agent for recovering metal oxides from fayalitic copper slags. Our findings reveal promising prospects and defined specific challenges for the integration of these alternative reducing agents in the industry. The synergistic use of pyrolysed SLF, bio-coke, and hydrogen presents a viable pathway to significantly diminish CO2 emissions while simultaneously improving the sustainability of the metallurgical sector.

Jun 19, 2024

By A D. Campbell

Conversion of Mineral Resources to Ore Reserves requires a multidisciplinary approach and application of a number of Modifying Factors. The Modifying Factors for mining, particularly dilution and recovery in a caving mine are complex and can be difficult to determine. Cave flow modelling software is widely used for mine planning, scheduling and forecasting metal production. However, the conversion of Mineral Resources to Ore Reserves remains a difficult and subjective process and a consistent approach to convert Mineral Resources to Ore Reserves as part of the cave flow modelling process is not published in the literature. This is due to the difficulty in estimating the Ore Reserve that remains as cave stocks at a particular point in the mine schedule, the recovered tonnage and grade of the diluting material at various stages in the mine life, as well as the Mineral Resource classification of both the recovered and diluting material that forms the Ore Reserve. The key principle of this paper is the tracking of the Mineral Resource classification in the flow model used to estimate the Ore Reserves. This is critical to defining the Ore Reserve as Proved or Probable and enabling transparency in the reporting process. An approach for dealing with mineralised external dilution in the Ore Reserve estimation process is also provided.This paper outlines the approach to convert Mineral Resources into Ore Reserves developed at the Ernest Henry mine sublevel cave (EHM SLC). The same method could be used in any cave mine and applied at any stage of the mine life. The process replaces broad-brush assumptions for the mining Modifying Factors, such as dilution and recovery, as these are determined numerically as part of the model computation. This paper explains the Ore Reserve estimation method with a worked example to enable the reader to adopt the process at any caving mine. Mineral Resource classification within the block model is embedded in the cave flow model and the flow model results used to attribute tonnes, grade and the mixed proportions of the Mineral Resource classification for material extracted from each drawpoint. This information is then used to convert planned mine production into the appropriate Ore Reserve classification. Since the flow model simulation follows the mine schedule, it can be used to predict depletion and cave stocks at any stage of the mine life, and can calculate a residual block model at the end of the mine life. The accuracy of the flow model is checked by validating the forecast ore grade and metal tonne with reconciliation data from the concentrator which is also used to calibrate the flow model.CITATION:Campbell, A D, 2017. A simple and accurate method for Ore Reserve estimation and Mineral Resource depletion in caving mines, in Proceedings 13th AusIMM Underground Operators’ Conference 2017, pp 253–260 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 16, 2017

By P A. Jenkins, I W. O Jones

WMC has mined the Perseverance disseminated orebody exclusively by SLC (sublevel cave) methods. Deteriorating ground conditions in the vicinity of an orebody inflection forced a re-evaluation of future mining at Perseverance and a strategy to drop down below the inflection zone and recommence the cave was implemented. This strategy has led to increased production at higher grades, resulting in lower costs and better mill recoveries. This paper describes the evolution of mine planning, development, support and production strategies through the successful process of implementing the ædrop-downÆ and re-establishing the SLC.

Jan 1, 2000

By C Tonkin, S D. Howell, P V. Johnson, J Moriarty, P W. Duck

This paper presents the scientific framework underpinning the resource valuation and optimisation model (RVOM). The RVOM is a partial differential equation based real options software package, which helps mine owners optimally plan their operations, understand their project risks, and make defensible valuations. This is achieved in the presence of both financial and physical uncertainty, as well as processing capacity constraints. The RVOM can be applied to any multi-ore mine, open pit or otherwise, where the block-order of extraction has already been planned using existing software tools such as the Gemcom WhittleÖ strategic mine planning package. The RVOM can also take account of multiple commodities within a single mine, and multiple forms of price behaviour. The three key outputs from the RVOM are: valuation, optimal decision and probability of decision. A decision takes account of upfront costs, and can include an unlimited number of transitions between: normal operation, expanded operation, care and maintenance and abandonment (and variants thereof). The RVOM then employs stochastic process theory to determine the probability of reaching these decisions. This gives the mine operators clear indications as to where their risks lie, aiding their mine planning. A clear example of the RVOMs usage to a case-study gold mine is presented, demonstrating its broad applicability, the added value it can create and how users can easily make use of the RVOMÆs state-of-the-art algorithmic engine.

Sep 26, 2011

By A Raza, D P. Kohn, D A. Foster, A J. W Gleadow

A large and increasing data base of apatite fission track results from sedimentary and granitic rocks exposed within the south-eastern highlands and along the continental margin ofAustralia provides constraints for the tectonic development of the south-eastern passive margin. The fission track results suggest that many regions of the south-eastern margin of Australia experienced distinct episodes of relatively rapid cooling during the middle Cretaceous to early Tertiary that can be attributed to the effects of rifting. One cooling episode is middle Cretaceous in age and related to denudation of the south eastern highlands from Tasmania to northern New South Wales between ~90 - 100 Ma. Rocks exposed along the present coast line record a later episode of rapid cooling, which is diachronous and decreases in age northward from ~80 to 90 Ma in northern Tasmania to southern New South Wales, ~60 - 80 Ma in central and northern New South Wales, and to ~50 - 60 Ma in southern Queensland. The results are consistent with models suggesting that underplating occurred inward of the rift along the eastern margin of Australia as a result of the onset of continental extension in the Tasman Sea at ~96 Ma. This resulted in a significant change in base level and km-scale denudation of much of the southeastern highlands. Subsequently, as breakup commenced during the Late Cretaceous at ~80 Ma and continued into the Paleocene at ~60 Ma, the second stage of cooling was imprinted on the rocks along the margin. This cooling is probably due to the relaxation of elevated geothermal gradients associated with rifting as well as some denudation. Because rifting was oblique to the present-day coast, different regions record different ages of cooling associated with the rift. The southern regions of New South Wales and Victoria yield ages associated with earlier rifting while regions of northern New South Wales and southern Queensland give ages associated with later rifting.

Jan 1, 1995

By K G. Harding, E L. Haggard, C M. Sheridan

Mining is a water intensive sector, contributing to declining water resource quality around the world. Improvements to current mine water management practices can help reduce the amount of water utilised by the mining sector and the impact on water resources. Creating a water account can help companies understand water use in their operations and identify areas where water reduction is possible. Water accounting methods include the Water Footprint Network method and the WaterMiner tool.The Water Footprint Network method is used to determine the amount of direct and indirect water used by an organisation either in a process or to manufacture a product. The total water footprint is divided into the blue, green and grey water footprints. Blue water is the amount of water abstracted from surface and ground water resources. Green water is the amount of rain water utilised. Grey water is the amount of freshwater required to assimilate the waste stream to the natural resource and still conform to ambient water quality standards.The WaterMiner tool is a program available via the internet, which can be used to model water use of mineral processing sites. The program reports the amount of raw, worked and treated water used by the process and recommends flows that can be added to reduce the amount of fresh water required by the process.To gain information on mine water management practices in South Africa, a water account for a platinum mine was developed using the Water Footprint Network method and WaterMiner tool. Based on the results, suggestions to reduce the amount of fresh water utilised are made.CITATION:Haggard, E L, Sheridan, C M and Harding, K G, 2013. Water footprint for a South African platinum mine, in Proceedings Water in Mining 2013 , pp 15-20 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 26, 2013

By S G. Gemell

"The financial model is an integral component of any project evaluation based on mineral resources, ore reserves and (at least internally) exploration targets. Given the unity of purpose for preparing financial models for project evaluation purposes, the diversity of both format and content of the finalised models is surprising. Many models are prepared by staff or consultants who are comfortable with a particular format that may be used for other purposes, such as budget preparation or financial reporting. It is natural in these situations that the practitioner will take these models and adapt them to the purpose. The end result may or may not succeed in providing a clear, accurate and sufficiently detailed view of the project’s economic viability.When preparing a model, the practitioner should be cognisant of the interpretation and review, or audit, process. The auditor may be a consultant or employee of a bank, potential equity provider or of the project sponsor itself. Depending upon the scale of the project and the level of participation of the entity that the auditor represents, the financial model will be interrogated more or less rigorously. In any event, the end user will require the model to permit easy change of inputs and will wish to confirm that such change is appropriately and thoroughly transmitted throughout.Accordingly, there are some ‘dos and don’ts’ that can be readily applied in the creation of the financial model that will greatly assist the end user, not just in the change of inputs, but also in reviewing the model’s integrity. The less time and effort required by an auditor in this regard is reflected directly in the cost of the review process.CITATION:Gemell, S G, 2016. Financial modelling with the auditor in mind, in Proceedings Project Evaluation 2016, pp 172–180 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016