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Hindustan Zinc Limited (HZL) is one of the leading base metal producers in India. It operates a two-smelter Complex at Visakhapatnam, Andhra Pradesh. At this zinc-lead smelter zinc is manufactured by the conventional hydrometallurgical route and lead is produced by Blast furnace technology generating residues or wastes which contain substantial quantities of metal values. Disposal of such wastes is a problem in any non-ferrous industry. Both the stringent environmental regulations and the changing industrial scenario emphasise the need for industrial research to find economically viable and environmentally friendly technologies to recover the metal values from these waste materials. The in-house R&D Centre at Vizag Zinc Smelter (VZS) thinking globally re-engineered its activities and major thrust was given for converting waste to valuable metals and metal compounds. Basic analytical chemistry with the hydrometallurgical concepts has been adopted in developing these innovative technologies. In this paper attempts are made to provide a clear history of the different waste raw material, the process developed for each raw material and their superiority of over other parallel work. Most of the processes described here are pilot plant tested and under patenting. The process flowsheet, results obtained and advantages of each process are presented. This paper provides a consolidated approach through which the varied smelter waste materials can be processed with cost effective and eco-friendly innovative technologies. In-house R&D efforts at VZS with its contribution and achievement in converting æwastes into wealthÆ technologies are presented in this paper on the following the major thrust areas:recovery of zinc from liquid effluent; recovery of zinc from effluent treatment plant (ETP) gypsum sludge; production of highly pure electrolytic zinc metal powder from zinc bearing gypsum residue/sludge generated at the effluent treatment plant; hydrometallurgical recovery of copper as copper sulphate solution which can be used for CuSO4.5H2O, copper cathode/copper metal powder from copper-cadmium cement; recovery of manganese, lead and silver from anode mud generated at Zinc Cell House and 4-metal extraction/recovery of manganese, cobalt, copper and nickel from Indian ocean bed manganese nodules; recovery of zinc, lead, silver and sulphur values from silver concentrate residue generated at the froth flotation process; recovery of silver and lead as lead-silver sponge/lead-silver sulphide concentrate from lead bearing residues; recovery of lead, silver and copper from copper matte; recovery of antimony as antimony metal or lead-antimony master alloy from antimony bearing dross; and recovery of nickel and dimethylglyoxime from Ni-DMG complex.

Jan 1, 2000

By J Chßvez, J Rosa del Castillo, J Rui

Environmental Impact Assessment (EIA) and Feasibility Studies (FS) were carried out to evaluate the potential use of treated acid mine drainage (AMD) occurring at the Kingsmill Tunnel in the Central Andes of Peru. The 11 km long tunnel drains the underground works of the Morococha Mining District and discharges about 1.25 m3/sec of AMD directly into the Yauli River in the Amazon Basin. The communities living downstream cannot use the Yauli River water due to its low pH and elevated concentrations of metals (eg Cu, Zn, Fe, Mn, As, Cd) and sulfate. Studies carried out for this project included technical feasibility, EIA, economic viability and social impact assessment phases. During the æTechnical FeasibilityÆ phase, the treated AMD was produced by simulating a high density sludge (HDS) lime neutralisation/ precipitation process and was evaluated for various potential uses. Mining companies located in Morococha, in particular Centromin Peru SA, and the Water Works Company of the City of Lima (Sedapal) collaborated with Golder Associates during the studies. The Canadian International Development Agency (CIDA) provided the financial assistance. The results of the physical, chemical, biological and toxicological analyses demonstrated that the AMD could be sufficiently treated to be potentially used to supplement the drinking water supply of Lima, and for agricultural (eg irrigation and livestock) and recreational purposes. Process design and scale-up parameters were also determined for implementation of the full-scale treatment facility at the site. The use of the treated AMD as a drinking water supplement would be economically feasible.

Jan 1, 2003

By Gleadow AJW, Foster DA, Kohn BP, Raza A

A large and increasing data base of apatite fission track results from sedimentary and granitic rocks exposed within the southeastern highlands and along the continental margin of Australia provides constraints for the tectonic development of the southeastern passive margin. The fission track results suggest that many regions of the southeastern 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 southeastern 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.

Jan 1, 1995

By Jackson D. G

Iron ore mineralisation in the Paraburdoo environs is known to extend almost continuously over a strike length of 55 kilometres. Six formations of the Mount Bruce Supergroup con- tain high grade mineralisation in varying degrees of importance. Ore is currently being mined from the Joffre and Dales Gorge Members of the Brockman Iron Formation, with smaller, less significant amounts, occasionally taken from the lowermost units of the Weeli Wolli Formation and the upper parts of the Mount McRae Shale. Regional mapping has demonstrated the existance locally of a major unconformity at the base of the Wyloo Group sediments out- cropping south of the minesite. The basal con- glomerates at the unconformity are sometimes mineralised at Paraburdoo. A supergene enrich- ment process controlled by structure, strati- graphy and topography is the only one which can satisfactorily explain the disposition and chemistry of the Paraburdoo iron orebodies.

Jan 1, 1979

By Parker RJ, Swindells CF

The authors have used the geotechnical study for design of the South Wall of Mt. Newman Mining's Mt. Whaleback Mine to illustrate how geotechnical studies can be economically justified. This is achieved by relating the savings resulting from increased ore recovery and prevention of failure to the cost of the study. An outline of the geotechnical study is provided in the paper, including a brief description of the innovative methods used to investigate geological structure of the mine and descriptions of the methods of slope reinforcement adopted.

Jan 1, 1986

By N Weatherstone

A consistent and reliable international approach to public reporting of a mining companyÆs main assets, its Mineral Resources and Mineral Reserves, has become of increasing importance in recent years with the rapid globalisation of the mining industry. Through the efforts of the Committee for Mineral Reserves International Reporting Standards (CRIRSCO), a committee representing national resource/reserve reporting committees in Australia, South Africa, UK/Ireland/Western Europe, Canada, USA and Chile, the reporting standards in most æwesternÆ countries use almost identical resource and reserve definitions and are generally around 90 - 95 per cent compatible. New codes based on the CRIRSCO model are being developed or considered in other countries, including Peru and the Philippines. This unified approach has provided the mining industry, regulators and investors with a common framework to report and interpret mineral resource and reserve estimates, thereby facilitating funding to the mining industry through improved investor understanding and confidence. The common reporting standards are reflected in the CRIRSCO International Template, available on CRIRSCOÆs web site, a document that is kept æliveÆ by reflecting the best of the most recently published CRIRSCO-type national standards. In a significant exception to this unified industry approach, the USA Securities and Exchange Commission (SEC) requires adherence to its own standard, only partly compatible with CRIRSCO-type standards, with adverse and costly implications for companies listed in the USA. A major industry submission was presented to SEC in April 2005 which, if accepted, would bring about considerable compatibility of CRIRSCO and SEC standards. The UN Economic Commission for Europe (UN-ECE) has, since 1992, been developing its Framework Classification (UNFC) as a single global system for harmonising all existing national and international resource/reserve reporting systems, covering both government and industry requirements and both the hydrocarbon and solid minerals sectors. While few mining companies report their resources and reserves using the UNFC, the system is accepted or is being examined as a basis for reporting by some governments, including those of Russia, China and India. The UN-ECE agreed in 1999 to incorporate CRIRSCO definitions into the UNFC for those categories of resources and reserves used for market-related reporting, but a more recent edition of the UNFC removed or changed the definitions, requiring re-engagement by CRIRSCO to ensure compatibility. Since 2005, CRIRSCO and the Society of Petroleum Engineers (SPE) have been involved in discussions with the International Accounting Standards Board (IASB), which plans to develop a new Accounting Standard for the Extractive Industries as part of its International Financial Reporting Standards. At the request of the IASB, CRIRSCO and SPE have been examining any potential for convergence of resource/reserve definitions between the mining and hydrocarbon industries. Each of these systems is described in this paper and high level comparisons made.

Jan 1, 2006

By Kellerwessel H, Oberheuser

Since its invention by Professor Klaus Schonert of the University of Clausthal, Germany, high pressure rolls comminution has attained near total acceptance as the preferred method of size reduction in the cement industry. Over 300 units have been manufactured worldwide. At locations where the system has been installed, considerable energy savings have been realised. These energy savings are generally in the range of 20 to 30 per cent compared to conventional ball mill circuits. However up to 50 per cent power saving has been achieved at some installations. This technology, with the exception of the diamond industry, has up to now had only limited success in ore processing. This has mainly been attributable to the abrasiveness of ores encountered in this industry leading to high wear rates. These high wear rates have given rise to an unacceptably short life time of the wear surface of the rolls, requiring regular replacement. A new wear surface has been developed which has shown to give a ten-fold increase in service life over conventional surfaces. This, together with developments made in machine design now give the units the ability to attain the high availabilities demanded by the mining industry, and therefore to allow this industry to achieve the considerable operating cost savings offered by the high pressure rolls.

Jan 1, 1992

By J C. Diaz, C R. Scherpenisse

Blasting represents one of the most relevant unit operations in the process of mineral extraction. The final objective of this operation is that of obtaining an adequate final fragment size distribution such that the combined costs of drilling, blasting, excavation and transport, and crushing/grinding, are minimised, while at the same time producing the minimum possible level of damage to the surrounding rock mass. The strong influence that drilling and blasting has over the subsequent processes involved in the operational cycle makes it imminently desirable to have access to experience and technology which make possible the evaluation and optimisation of this unit operation. The correct use of vibration monitoring techniques offers a number of benefits in terms of their ability to examine any blasting process in detail. In effect, the measurement of particle velocity levels that result from the detonation of each explosive charge offers a means by which it is possible to measure relative efficiency of each charge, interactions (productive and counterproductive) between adjacent charges, and a definitive indication of general performance of any given blast design and its implementation. In this way the monitoring of blast vibrations in rock due to the blast event, can be used as a diagnostic tool, given that the correct interpretation of the vibration traces allows the determination of the level of interaction between the design and operational variables of the blast event. This makes it possible to evaluate, for example, the presence of out of sequence detonations, statistical scatter in the detonation times of pyrotechnic delay detonators, deficient detonation of charges, instantaneous detonation of charges and sympathetic detonation of charges, as well as the general of vibration levels in terms of peak particle velocity, acceleration, and displacement. Another important use of such data is in the construction of a database relating vibration levels to charge weight, hole diameter, and distance, for any given rock type, enables the calibration of predictive vibration models which in turn make it possible to predict the damaging effects of blasting. Knowledge of both the vibration levels induced, combined with quantitative measures of the geomechanical competence of a rock mass make it possible to estimate the probability of producing blast induced damage. The high levels of vibration generated by some blast events may damage the rock mass, producing new fractures or extending and dilating existing fractures. The vibration in this context may be considered as a dynamic stress provoking strain in the rock mass. This paper describes the application of the vibration monitoring technique, particularly in the underground mining environment, and its importance in diagnosis, modelling, control, and optimisation of the development blasting process. The potential of the technique is assessed in the context of achieving substantial techno-economic improvements development blasting results, increasing output whilst minimising the operational costs of the mining process.

Jan 1, 1999

By E R. Ramanaidou, C Tessarolo, M Verrall

Garnierite mineralogy in saprolitic ore of the Goro lateritic nickel deposit, New Caledonia , was investigated using X-ray diffraction (XRD), optical and scanning electron microscopy (SEM) and electron microprobe (EMP) analyses. These conspicuously, green-coloured phases occur either as submillimetre to centimetresized veins or as æbookletsÆ arranged in, macroscopic (subcentimetre sized), accordionlike structures supported in an undifferentiated matrix of mixed ÿ7+ and ÿ10+ phases. Within the veins, nickel for Mg solid solution increased from ten wt per cent NiO at the edge to 34 wt per cent NiO at the core, with vein edges comprising Ni-kerolite with <1.5 Ni per formula unit (pfu) grading to pimelite containing >1.5 Ni pfu at vein cores. The æbookletsÆ comprised nTpouite of formula, (Mg0.67Ni1.59Fe3+0.05)(Si2.17Al0.22)O5(OH)4 and averaged 30 per cent NiO. SEM element mapping highlighted the distribution and mineralogical association of Ni and Mg and emphasised the inverse relationship between Ni and Mg at the macroscopic (thin-section) scale. An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation.

Jan 1, 2008

By Pollmans GJ, Hoberg H, Schneider FU

The Institute of Mineral Processing at Aachen University of Technology has been engaged in fine and ultrafine comminution for several years. Former investigations had been dealing with the mechanical activation with the aim of increasing the solubility of highly resistant oxides such as tantalite and niobite while research on the product of ultrafine powders is of major importance at the moment. Materials of that kind are of increasing interest in the production of extremely resistant ceramics, in the development of new raw materials, in powder metallurgy and in the production of fillers (extender pigments) and pigments. The creation of ultrafine powders is difficult and very expensive. They can be produced by means of condensation or dispersion methods. One important method of dispersion is mechanical comminution. Due to long and intensive research and development all over the world important advances have been achieved but still a great number of questions and problems occur especially in producing materials of submicron and nanometer grain sizes which could be answered or solved only insufficiently up to now. These mentioned difficulties refer especially to: ò the required energy input into the feed material, ò the forming of strong agglomerates and wall stickings, ò the required product qualities, and ò the entire and reliable characterisation of the products. Basic investigation aim to clarify the micro and macro processes of ultrafine grinding and work towards solutions to the difficulties mentioned above. The aim of the Institute's research is the development of a new grinding device for producing ultrafine powders. First results of a laboratory scale mill of that type will be presented in this paper.

Jan 1, 1993

The mIning operations of Bougainville Copper Pty. Limited are located at Panguna on the Island of Bougainville which is part of the Territory of Papua and New Guinea.C.R.A. Exploration Pty. Limited first established mineralization in the Panguna area in 1964. Exploration work since then has established ore reserves estimated to be 900,000,000 long tons of ore assaying 0·48 per cent copper and 0·36 dwt/ton gold. An economic feasibility study completed in July, 1969 enabled a decision to be made to proceed with a major mining operation. The ore will be mined by open cut methods and will be treated in a conventional concentrator with a nominal capacity of 90,000 short tons/day. The concentrate will be pnmped as a slurry through a 16 mile long pipeline to a port established on the east coast where it will be filtered and dried ready for export. Other supporting facilities for the mine include two towns, a 135 MW steam power station, and access roads.

Jan 1, 1971

By A B. Richards

Time window analysis that limits the explosive mass fired within a specified time window (commonly eight milliseconds) has been used for many years in blast design by explosives engineers. Despite several warnings in the past that this technique has limited practical or scientific basis and, in many cases, does not effectively control vibration, almost every textbook and blasting manual refers to time window charge mass limits as a primary vibration control technique. It has become entrenched in some blast vibration management plans, despite being inappropriate for the particular situation. With the flexible initiation timing available with electronic detonation almost a practical reality, and the 8 ms constraints in-built into the signal tube initiation system thereby lifted, it is timely to review the significance of the 8 ms time window in controlling blast vibration. This paper re-visits the original research that led to the development of the 8 ms criteria and the non-supportive conclusion of the original researcher. Because airblast was not measured, the 8 ms time window was never intended to be applicable for airblast control. Examples of blast designs are given in this paper that comply with the 8 ms time window limit that result in substantially increased air and ground vibration, together with examples of blast design that does not satisfy time window considerations, which results in reduced air and ground vibration. Techniques that identify wavefront reinforcement, due to the combined effect of drilling pattern and delay sequence, can assist explosives engineers to avoid high blast vibration situations that result from the inappropriate application of time window techniques and other adverse delay combinations.

Jan 1, 2003

The Electricity Commission of New South Wales is the largest single user of coal in the State, burning some 8.5 million tonnes during 1972-73. This coal is converted in power stations into electrical energy which is then distributed throughout the State and supplies the electricity requirements of 99% of users in New South Wales. Barring any major change in energy consumption growth, or change in the current mode of power generation, the consumption of coal by the Commission is estimated to have a doubling period of from 10 to 14 years. Coal is used to generate up to 87% of the electrical energy sold, the balance being obtained from hydro gen- eration, mainly in the Snowy Mountains, and, to a much smaller extent, from diesel generation at Broken Hill. A very large proportion of this coal is consumed in pulverised fuel boilers in the Commission's power stations, located mainly on the various coalfields of New South Wales. Coal supplies are drawn from a large number of mines, some owned or controlled by the Commission, others being owned by public companies. The coals used, originate from at least ten different seams located in the northern, western and southern coalfields of New South Wales, and therefore have a wide variety of properties and characteristics. To ensure an adequate fuel supply well into the future, the Commission is continuously engaged in coal prospecting in various areas. Bore data is used in assessing coal reserves and is also the basis of economic studies for their possible future exploitation. The numerous coal cores obtained during drilling operations are carefully tested and analysed in order to assess their suitability for power generation purposes, and to provide data for the design and operation of boiler plant using these coals. In existing power stations coal deliveries are systematically sampled and tested for quality control, for pay- ment of purchases based upon certain quality parameters and to check for any possible plant operating or main- tenance problems that might arise from the use of the particular coals. Almost all the properties of coal that may be necessary in the Commission's work are obtained using standard testing procedures carried out by the Commission's chemists, in laboratories located at the various power stations or at its Central Laboratories in Pyrmont. Where specialised analysis or testing is required, this is ordinarily undertaken on a commercial basis by outside bodies, expert in the particular field. The significance of the various properties of the coal for use in p.f. boilers is outlined and related to their proper application to boiler plant design and to plant operation.

Jan 1, 1975

This paper discusses why Argyle Diamonds adopted thickened tailings disposal in 1985 and how the system was developed over the next seven years. A wide ranging review of the thickened tailings disposal system and the tailings deposit it was producing was carried out during 1992 and 1993. The results of that review led to the abandonment of thickened tailings disposal at Argyle because of serious concerns about the stability of the resultant tailings deposit. The exposure to the risk of liquefaction and an assessment of the consequences if this happened to the thickened tailings deposit are shown. The criteria for selecting the new tailings disposal strategy are then described. The final section of the paper discusses the management strategies that have been put in place. These are designed to: ò reduce the risk posed by the thickened tailings deposit to an acceptable level; ò safely store tailings to the end of mine life; ò produce a land form that can be decommissioned to the satisfaction of Government regulatory bodies.

Jan 1, 1996

Diamond drilling is a relatively new commodity in terms of drilling. The first known diamond drilling activities were carried out in the Swiss Alps around 1863 when the Swiss engineer M Leschot designed and made a tube with a diamond set face which was used in probing ahead drilling for the Mont Cenis tunnel (Figure 1). Craelius AB which today is a part of the Atlas Copco Group was formed in 1886. The name Craelius is a family name and the founder of the company was Per Anton Craelius (Figure 2). He went to the United States to study this new technology using diamonds to extract core samples and when he returned to Sweden designed his first diamond drilling machine. It was a man-powered drill needing a crew of six men, two to crank the unit, one to feed, two to power the flush pump and a foreman (Figure 3). As time passed through research and development, the original design was improved and manpower was substituted for steam engines and later combustion engines or electric motors (Figure 4). During the 1930s the drills radically changed designs and took the form of the short stroke drills which to a certain extent are still in use today. The original design of these drills have been refined during the years, hydraulic chucks, gear boxes and other improvements have been added.

Jan 1, 1995

By J Rutter, M NoppT

Ridgeway Gold Mine is part of Cadia Valley Operations which is wholly owned and managed by Newcrest Mining Limited. Ridgeway is an underground sublevel cave (SLC) operation mining approximately 5.6 Mt of gold-copper ore per annum. Ore tracking and accounting systems monitor gold and copper grades, copper mineralogy, host lithology and ore sizing. These factors have material impacts on concentrator throughput and metal recovery. Drawpoint recovered grades are routinely reconciled back to design data to monitor and assess draw performance. Grade control at Ridgeway has been based upon sampling the ore from SLC drawpoint bunds using 15 kg grab samples combined to form 30 kg samples prior to assay. This large sample size was selected in an attempt to representatively sample the coarsely-sized broken ore, the samples collected having a nominal diameter of about 130 mm. The assay results for gold and copper from these samples are extremely variable and the usefulness of the results has been questioned by the mine, particularly given the onerous and OH&S hazardous activity of handling large sample masses. Granulometry testwork at Ridgeway confirmed the extent of the relationship of decreasing sample grade variability with particle size. Based on this relationship, drawpoint sampling tests were carried out using 9 kg samples sieved to -45 mm at the drawpoint site. The gold and copper results from the finer 9 kg samples were significantly less variable than those from the normal, coarser 30 kg samples. The variance reduction was similar to that predicted from broken ore sample theory for the selected sample mass and nominal particle size. This relationship therefore allowed Ridgeway to assess the sample mass and particle size required to achieve a particular precision. In addition to improving the precision, the reliability of assay results from smaller samples from the fine particle fraction for drawpoint control depends on the accuracy of the results. The assumption is that the grade of the finer ore is similar to that expected from the lot, or that if a bias exists, then the extent of this bias is acceptable and consistent enough to be accounted for in the grade control system. The distribution of grade with particle size and the reconciliation of drawpoint sample and mine results is currently under investigation.

Jan 1, 2005

Optimisation and sensitivity analysis of final pit limits is now an accepted procedure for open pit planning studies. Tools to assist the design engineer in an underground metalliferous mine to make optimal choices for the selection of major development, stope geometry and cut-off grade analysis have not been available. The engineer has had to rely on experience and a limited analysis of design alternatives. A new tool called the `floating stope' has been developed to define the optimal (boundary) limit for material that can be economically extracted by underground stoping methods. The method is analogous to the `floating cone' method of open pit optimisation. The geology and mineralisation are modelled as a regular or subcell block model. Included in the model are structural and geotechnical features, and any previously mined out areas. Inputs to the procedure include the minimum stope dimensions, cut-off grade, stope head grade, and the way in which dilution is to be calculated. The optimisation procedure can be directed to maximise ore tonnes, grade, contained metal or the economic (dollar) value of material mined. The procedure can be applied at each stage of mine evaluation and design to assist with preliminary resource appraisal, selection of stoping methods, and detailed mine design. As with open pit optimisation procedures, manual intervention by an experienced engineer is required to produce practical and detailed designs. This practical design should follow the optimised design as closely as possible. The paper outlines the algorithms used in the definition of the stope envelope, and describes the analysis and results of several case studies where the optimisation procedure has been applied.

Jan 1, 1995

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

Jan 1, 2007

Location & Permit Status Three major Mesozoic Tertiary basins exist along the continental shelf area of southeastern Australia, known as the Bass Strait area. They are the Gippsland (east of the longitude of Melbourne) Otway (west of Melbourne) and the Bass (underlying central Bass Strait between Victoria and Tasmania). The total area, both onshore and offshore, is approximately 100,000 square miles. In March 1960, the Broken Hill Pty. Co. Ltd. acquired exploration title to the continental shelf areas of the Gippsland, Bass and Otway basins from the States of Victoria and Tasmania. The title to that part of the Otway Basin in South Australian waters was granted in July, 1961. Other exploration permits, being 8 miles wide in Gippsland, held by Woodside :E.) Oil Co. N.L., and 15 miles wide along the southwest coast of Victoria, held by Mobil-BP-Interstate Oil (Frome-Broken Hill Co. Pty. Ltd.), were in existence prior to granting the B.H.P. title. Subsequently, Shell, B.H.P., Esso and Magellan have been granted title to the remaining areas of the continental shelf in the basins under discussion. In three separate agreeme negotiated between 1964 and-1966, Esso obtained farm-in rights to B.H.P.'s Gippsland, Bass and Ott' Permits.

Jan 1, 1970

In 1989 Henry Fairlie wrote a cover story for The New York Republic, 'Fear of Living'. He noted, `The first Apollo space craft caught fire during a test on the launch pad. Three astronauts were killed, the nation was shocked and horrified, all the more because the screams and scrambles of the astronauts could be clearly heard'. After a brief delay in manned flights, the Apollo program resumed with strong public support; within 18 months, Apollo 11 landed on the moon. Fairlie contrasts the Apollo tragedy to the 1986 Challenger disaster. `The prevailing mood in America so panicked NASA that it took almost three years to send up another shuttle', he observed. `In 19 years between these tragedies, the idea that our individual lives and the nation's life can and should be risk-free has grown to be an obsession threatening to create an unbuoyant and uninventive society.' Taking risks is a normal part of our daily routine. The act of living involves minute-by-minute decision-making focused on survival through the practical management of risks. The act of breathing exposes each individual to the risk of infection while the act of crossing the road could almost be considered suicidal. We deal with these constant threats by observing simple rules of hygiene, safety or what may be labelled as common sense. The rules of community, designed to minimise risk in society, can at times lose focus and result in the imposition of schemes that have a far greater cost than the issues from which they protect. Effective management of risk, whether in the community or a business is about awareness and balance and the elimination of unacceptable risk. Risk cannot be eliminated from our lives or our working environment. However it can be managed if it is properly understood, monitored and controlled. The purpose of my presentation today is not to provide a comprehensive technical risk inventory but to capture the essence of risk and the application of management strategies designed to deal with it in a positive fashion. The basis of our differential financial reward system is risk. The key to successful management is to deal with the downside risks in such a fashion that the benefits of enterprise are not eliminated. The key question any investor must consider is `can the major risks assQciated with a venture be managed or eliminated while retaining a greater proportion of upside potential'. The answer to this question is the ultimate value an investor would assign to any project. In reviewing the relevance of risk to our industry the range of papers to be presented today provide examples of how management deals with specific components of risk. In each case the value of the business has been enhanced by the practical application of balanced risk management. The ultimate success of the industry depends very much on this concept as it also provides a public showcase upon which we are judged. Therefore, from all perspectives the effective management of risk is a cornerstone from which to build a stable and progressive mining industry.

Jan 1, 1994