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By J Canterford

There is an apparent push to develop and commercialise "new and innovative" process flow sheets. A not-too-difficult reality check clearly demonstrates that the success rate of this push is not particularly significant and in fact could be regarded as a waste or misappropriation of R&D funding and the associated brain power. As Julian Sumner Miller would comment "why is this so?" To put it bluntly, many of the so-called innovative developments are equivalent to gold plating the dunny door - visually interesting but of very limited practical value. This presentation encapsulates some personal lessons learnt over the past 45 years.CITATION:Canterford, J, 2013. Developing a ænew and innovativeÆ process flow sheet - Traps for all players of all ages, in Proceedings MetPlant 2013 , pp 1-5 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 15, 2013

By M Saghaeian, V Sheikhzadeh, R Hejazi

Mining dilution is one of the most important factors affecting the economy of mining projects. Instead of quantifying dilution in mining studies, it is common to assume a general dilution such as 5 per cent for massive deposits. Dilution increases the operating costs in the plant by increasing the tonnage of material to be milled. It prolongs the mine life by reducing plant’s effective capacity. It also reduces the feed grade. In most cases, lower feed grade means lower plant recovery. Dilution also increases the cut-off grade, which in turn reduces the overall ore utilisation of a mine. In this study has been investigated applying pre-concentration by dry magnetic separation for decreasing of dilution impact on reserve estimation and open pit design in low-grade iron ore mine. Based on the preliminary open pit design and assumption 3 per cent as dilution factor, the mineable ore in life-of-mine (measured + indicated) has been estimated with Fe = 25 per cent, SiO2 = 49.7 per cent. Based on the experimental test work on the ore, by dry low intensity magnetic separation of dry HPGR product grinding circuit, it is possible to remove diluted waste material and liberated gangue before concentrate plant, so that around 34 per cent rejected and Fe grade increase from 25 per cent to 33 per cent and by weight recovery 66 per cent. The results of the test work showed that this methodology could decrease largely the impact of dilution in the feed to the plant. It also slightly effect on the reducing of dilution factor impact for open pit design and optimisation and leads to increase the mineable tonnage in the low-grade magnetite iron ore mine.

Aug 24, 2022

By R Price, B H. Miller

"The rise of autonomous haul truck fleets may have been initially driven by the rapid escalation of the cost of equipment operators, but the actual improvements reported by the major iron ore miners far exceeds the simple reduction in workforce. Utilising cost models developed for feasibility studies and mining contract modelling, the limits of cost improvements due to simple labour reductions are compared to those achieved by the early autonomous fleet adopters and through traditional process improvement techniques such as fleet class upgrades or hot-seating of equipment. As autonomous fleet implementation matures, it is likely that the gains seen by current adopters will seem minor compared to the limits generally governed by the limit of equipment utilisation. This ultimate limit is explored through time utilisation models, which were also developed for use in feasibility studies and mining contract modelling.Citation:Miller, B H and Price, R, 2016. Autonomous Haul System Savings - It's Not about Less Truckies but Better Truckies!, in Proceedings Ninth AusIMM Open Pit Operators' Conference 2016, pp 2–10 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Nov 15, 2016

By King E. J

Department of Pathology, British Post-graduate Medical School, London:The experiments here recorded were devised and carried -out during the last two years in an attempt to corroborate the important work of Denny, Robson and Irwin (1939) in which they found that experimental silicosis could be prevented by means of metallic aluminum. By causing rabbits to inhale powdered quartz for several months they induced experimental silicosis. These animals then served as controls for comparison with another group which were dusted with a mixture of quartz and aluminum. In the second group silicosis failed to develop.Our experimental procedure was somewhat different. We resorted to intratracheal insufflation instead of simple inhalation, and we used rats instead of rabbits: otherwise the essential features of the original experiments were carefully duplicated.EXPERIMENTAL PROCEDURES.A single dose of dust was delivered into the lungs of each animal. The dust was suspended in a fluid medium and injected by means of a syringe directly into the trachea in known quantity (technique of Kettle and Hilton, 1932). The suspensions were autoclaved before use and were injected with aseptic precautions. Having had a long experience of this technique we employed it with confidence and usually secured a fairly uniform dispersal of dust throughout both lungs. To carry out injections successfully one requires, above all, an even suspension of dust which will flow smoothly and quickly from the syringe. This is not difficult in the case of quartz, for, though it tends to settle out rather quickly, this can be avoided by constantly agitating the suspension. The syringe containing the inoculum may be shaken gently right up to the moment of injection and then emptied quickly to prevent sedimentation. Powdered aluminum is more difficult to handle, for the particles tend to flocculate and are not readily made to disperse evenly in saline, even by violent shaking. For this reason an emulsifying agent may be used to advantage, provided it does not complicate the experiment, a point to be mentioned again presently.THE EXPERIMENTSExperiments with quartz alone: Extensive silicotic lesions were produced in 23 out of 26 rats by the administration of pure quartz dust in doses of from 50 to 200 mg. per rat. The dust was so finely pulverised that the particles averaged about 1-p. in size: none was larger than 5 p. and 99 per cent. were under 2.5 p.Eight of these animals survived for seven months and were then killed...

Jan 1, 1945

By E J. Cowan

Efficiency demands that mine geologists devote the most time to tasks where they can have the biggest effect on production. One of the most time-consuming tasks is geological interpretation of the orebody and turning this into a block model for the planning engineers.The current best practice for mines that require a geologically constrained resource model involves capturing the interpretation of geologists as three-dimensional (3D) wireframes. However, there is significant overhead in the production of valid wireframes from sectional and plan interpretations. This overhead consists of the mundane tasks of digitising polylines, then building 3D wireframes and validating them. While software can simplify this task, the current process is not the best use of a geologist’s time. Under time pressure exerted by planning engineers and the time required for modelling from polylines, geologists are forced to roll-up the presence of other elements or impurities into the interpretation and encode them in the polylines, even though it is often desirable to consider these other factors separately.While it might seem unlikely that mine geologists can produce constrained geological models without the intermediary of wireframes, the technology to accomplish this is getting closer.In this paper, the results of a trial at the Savage River magnetite mine, which is owned and operated by Grange Resources Ltd, are reported. The trial was for a ‘direct-to-block’ implicit geological modelling method. The focus was on creating a geological attributed block model from drill hole geological log data; resource estimates were not determined. The categories modelled were air, waste, low-grade ore, medium-grade ore, and high-grade ore. The block model outputs either resulted in a proportional block model (categories expressed as percentages within equivolumetric blocks) or a sub-blocked model (parent block and one sub-block), which is the preferred block model output at the Savage River mine. When compared to the traditional best practice modelling method, which takes 43 work days, the wireframe-free modelling method took only 26 hours from initial modelling, using both exploration and grade control data. An update using appended drill hole data is achievable within one day. These results represent time savings of more than one order of magnitude compared to the traditional workflow, and, as such, these figures merit serious consideration for the use of the direct-to-block modelling approach at other operations.With these time savings, geological and estimation models can be kept updated constantly; geologists will not need to set aside two months for quarterly or half-yearly modelling of the drill hole data for resource review. Such dramatic time savings will allow for the better use of highly skilled geologists, who are in short supply in the current market, and will also impact directly on downstream mining engineering workflows.

Aug 22, 2011

THE machine from which the following results were obtained makes one of a row of seven at work in the Junction North, Concentration Mill at Broken Hill, New South Wales. It consists essentially of a belt for dressing purposes, which travels round two 12-in drums situated at either end of a wooden frame. This frame is supported on wooden legs, and the whole is affixed to two iron castings, one on either side of the frame. A to-and-fro motion is obtained from an eccentric shaft, which, together with the stationary end of the supporting legs, is carried by the iron castings. A belt drive to the forward drum provides a constant rate of travel to the dressing belt.The top half of the dressing belt is supported on 3-in rollers spaced about 12-in centres along the frame of the vanner. A fairly thick dressing belt is used, and no trouble whatever is experienced from the formation of gutters between the rollers.These belts are 28 ft 4 in long, 4 ft wide, 3-16 in thick, and are made of two-ply 32-oz duck, with a coating of rubber on either side. The surface available for dressing is about 10 ft 6 in x 3 ft 8 in- ie, about 38'5 square feet. The machine is driven atthe rate of 245 i-in strokes per minute, while the dressing belt travels at 15 feet per minute...

Jan 1, 1909

Samples weighing 0·5 g are decomposed with hydrofluoric and other acids. Most elements are extracted ftom the acid, aqueous solution by Alamine 336 (tricaprylyl tertiary amine) and thorium is determined in an aliquot taken from the aqueous phase by means of its reaction with arsenazo III. Concentrations down to 4 p.p,m. may be determined at a rate of 100 samples per man-day of 8 hr.

Jan 1, 1971

By R McDonough

DTL2 contract C916 was awarded in March 2009 for S$340 M. This contract includes two mass rapid transit (MRT) 1100?m long bored tunnels using two slurry tunnel boring machines (TBMs), with an internal diameter of 5.8?m, two cross passages and 135?m of cut-and-cover tunnels The contract also includes the design and construction of a new underground station including station entrances, subway links, architectural finishes and external landscaping. The station, located at Upper Bukit Timah Road near Jalan Jurong Kechil will also double as a civil defence shelter.The works included significant traffic management in a dense urban area in order to create the working areas whilst keeping the requisite number of traffic lanes. This involved numerous utility diversions and included the removal of a 33-year-old pedestrian overhead bridge (POB) over busy Bukit Timah Road. The station and tunnelling works were completed on time, including a ‘dock and dismantle’ TBM retrieval and subsequent breakthrough of the separating wall.This paper will detail the methods and solutions used to construct the tunnels and stations, with a focus on the requirements for construction of the station to be a civil defence shelter if required. This involved solutions to tying reinforcement and placing concrete to high standards in a restricted space, as well as the incorporation of heavy blast doors and other associated protective measures. The efforts of the management team resulted in the project being awarded first prize in the 2011 Land Transport Authority’s Annual Safety Award Convention and being named winner of the Safety and Health Award Recognition for Projects (SHARP) award at the 2011 Workplace Safety and Health (WSH) Awards. As well, McConnell Dowell won a Green and Gracious Builder Award (Excellent Category) from the Building and Construction Authority (BCA).CITATION:McDonough, R, 2014. Design and construction contract C916 Beauty World Station and Tunnels, Singapore, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 411–418 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

By G A. Ekama

This paper describes a novel system for the biological sulfate reduction (BSR) of acid mine drainage (AMD) using primary sewage sludge (PSS) as carbon source in an upflow anaerobic sludge bed (UASB) reactor configuration. A UASB reactor was operated at a temperature of 35¦C and it received PSS (1875 mg/L COD) augmented with sulfate (1500 mg/L SO42-). The experimental results indicate that a high treatment efficiency was achieved at more than 90 per cent sulfate reduction at a liquid hydraulic retention time (HRT) of 13.5 h. In this study, the effects of various operational parameters were also investigated. The effect of a biomass recycle stream from the top to the bottom of the sludge bed was found to initiate rapid BSR from the bottom of the bed. Profile tests showed that effective and immediate sulfate reduction was achieved as soon as the influent entered the reactor. From these results, it can be concluded that the UASB configuration using PSS as energy source would be a viable method for the BSR of AMD.

Jan 1, 2009

By Fennell B

A process for the recovery of cobalt from a speiss produced at Sulphide Corporation is presented. The speiss is leached in oxygenated sulphuric acid to dissolve the metallic iron at a pH of around 4. The resultant iron (11) is subsequently oxidized in the leaching vessel and precipitates as goethite. Acid is regenerated in the precipitation allowing dissolution of further speiss. Subsequent to the conversion of most of the iron in the speiss to goethite, conditions become sufficiently oxidizing to dissolve cobalt. Cobalt is not co-precipitated under the leaching conditions, yielding a pregnant solution containing the cobalt and some iron (11). The principal advantage of such a process is the significantly lower acid consumption over that obtained by complete dissolution followed by selective precipitation. An impure product of cobalt hydroxide can be obtained from the pregnant solution by neutralization.

Jan 1, 1983

By I F. Bell, K P. Hammerschmid

Well planned and executed environmental management plans can reduce life-of-mine operating costs and the need to deal with major environmental issues at the time of mine closure. With proper planning during the exploration, feasibility and execution phases of a project, final closure costs can be reduced. The reduction of closure costs should be considered during exploration and initial feasibility studies and when process facilities, waste rock dumps and tailings impoundments are designed. During the mining of the resource, closure cost reduction will depend on effective and efficient environmental management plans for ongoing land clearance, segregation of mine waste materials, management of mine site water and workshop wastewaters, and the establishment of progressive rehabilitation strategies. These issues are the responsibility of planning, production, technical support and maintenance personnel at an operating site. The successful implementation of environmental plans will ensure that all impacts are reduced and that closure issues with major cost implications are addressed prior to closure of the mine.

Jan 1, 1995

By M Z. Abzalov

Drilling mineral sand deposits has specific challenges, which are different from drilling hard rock deposits: Drilled sequences are represented by non-consolidated free-flowing sands to semi-consolidated clayey sands and indurated layers. Valuable heavy minerals (ilmenite, rutile, zircon, leucoxene) have an average density of 4.6 g/cm3, which is significantly heavier than the hosting sand matrix; mainly represented by quartz (density = 2.6 g/cm3). The large difference in the mineral densities can result in sample segregation in the drilling rods and capturing devices causing biased composition of the recovered samples. The drilled strata can contain beds of consolidated sediments, hard pan lenses and concretions. Therefore, chosen drilling equipment should be flexible and permit a switch from drilling the free-flowing sands to hard rock drilling. Thickness of the sand hosted mineralisation varies from several metres to more than 170 m. Mineralisation is distributed above and below the water table. Evaluation of the mineral sands deposits is based on hundreds of drill holes and many thousands of samples, therefore drilling methods should be fast and cost effective. The drilling methods commonly used for mineral sand deposit evaluation, include aircore, triple tube diamond and sonic; including its variants, such as vibrocore drilling technique. The ability of the studied drilling techniques to properly address the above listed challenges in mineral sand deposits, whilst maximising the quality of the obtained samples has been compared in three deposits: Corridor Sands (Mozambique), Richards Bay (Republic of South Africa) and Fort-Dauphin (Madagascar).This study has shown that aircore samples tend to be negatively grade biased, underestimating the heavy minerals content, in particular when drilled intervals are located below the water table. Triple tube diamond core method can produce non-biased samples. However, results can be marred by incorrectly chosen drilling mud. Sonic drilling is a relatively new technique based on a high frequency vibratory technology. It is the only production drilling technique that allows a continuous relatively undisturbed sample of unlithified sands to be obtained. The main limitations of this technology preventing its wider use for developing mineral sand resources are the relatively high drilling costs, in particular when the depth of drilling exceeds 100 m, and speed of drilling advance.

Oct 5, 2011

By R Razanatsimba, A Galli

A mining company has entered into contractual commitments to supply certain quantities of its product to clients in each time period. Failure to fulfil its obligations would damage its reputation as a reliable supplier. The planned production would normally be sufficient unless major problems such as highwall failures, roof falls, natural disaster, or strikes that interrupt production or delays in obtaining environmental permits, occur. To overcome these difficulties, the company may be able to obtain more of the commodity: from its strategic stockpile (if there is sufficient there); by buying it on the spot market; or for some commodities such as gold and uranium, by leasing it. Two sources of uncertainty, the spot price of the commodity and the occurrence of serious incidents that interrupt production, are considered. For simplicity it is assumed that the commodity price follows a geometric Brownian motion, that productions incidents have a binomial distribution, that they are independent from one time period to another and that they do not affect prices. A branching tree structure is used to model the joint evolution of prices and production incidents. The aim of this research project was to evaluate the companyÆs options for fulfilling its contractual commitments. When evaluating these options, multi-stage stochastic programming with recourse was used to solve this problem because in addition to providing the dollar value of the project, it gives decision-makers the æroadmapÆ to reach the optimal value. That is, how much material should be bought/sold on the spot market, how much to add to/subtract from the stockpile, how much to lease and in the worst case what the shortfall would be, for each time period as a function of the current spot price and breakdown status. A case-study over a five-year period is used to illustrate the proposed procedure. In this study the production would be sufficient to cover the companyÆs contractual commitments unless production incidents occur. Focus is on evaluating the impact of the quantity initially in the stockpile on the value of the project when the commodity market is tight, that is, when only small quantities can be bought on the spot market or by leasing.

Sep 26, 2011

In the latter half of 1973 a contract was given to Roberts-Holland Joint Venture for the stripping of the southern exhaust airway.The contract was carried out efficiently and relatively cheaply. It was completed 2 months ahead of schedule.The sinking stage and in particular the drilling jumbo proved to be a success and helped produce an above schedule stripping rate.No major problems were encountered with ground conditions or ventilation. A survey of the shaft showed the diameter to be within the set limits of 5·49 m ± 0·15 m.

Jan 1, 1974

By W Skinner, C G. Kelsey, J R. Kelly

The iron ore industry has reached the end of an unprecedented period of expansion triggered by China’s demand for iron ore. Lower ore prices have led producers to focus on optimising mining operations while extracting the maximum tonnage from the infrastructure presently in place or from projects already underway. A rising global surplus is expected to further force ore prices down and lead to output curtailments, which in turn will help to restore market balance. However, investment in the development of new resources and the development of new infrastructure will inevitably become necessary. Making the right decisions in relation to future processing infrastructure in a climate of uncertain demand and price volatility will not be as straightforward as in the past, where expanding the scale of a proposed operation has been the answer to ensuring economic viability. Overall cost and environmental pressures particularly in relation to wet processing will dominate the decision-making process. IMP Technologies (IMPTEC) has anticipated the need for a dry low cost processing alternative, which can open the way for the development of lower grade magnetite deposits and ensure the sustainability of processing in Australia. The lower grade magnetite deposits are generally fine grained and require grinding to p80 of 30 to 40 microns. Historically, the cost of grinding to these sizes has been and remains a key factor determining the economic viability of a magnetite processing operation. The IMPTEC Super-fine Crusher and Cyclomag Separator are the key components of a proposed radically simplified dry processing alternative, which addresses both cost and environmental issues. This paper reports on the results of pilot super-fine crushing and cyclomag separation test work, focused on supporting the feasibility of the proposed dry processing route for the production of high-grade pellet plant feed from fine grained low-grade magnetic ores.CITATION:Kelsey, C G, Kelly, J R and Skinner, W, 2017. Dry processing of magnetic iron ores – addressing cost and environmental issues, in Proceedings Iron Ore 2017, pp 215–220 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 24, 2017

Aitik, a Boliden owned and operated open pit mine located in northern Sweden, will expand production from 18 Mt per year today to 36 Mt per year copper ore during 2010. The challenge for the mine operation is to double production with a planned increase of the shovel and truck fleet of only 50 per cent. This will be achieved through improved shovel and truck utilisation and productivity. In early 2005 Aitik started projects to enhance the utilisation of truck engine hours and to reduce fuel consumption. Both projects were successful, within a year efficient2 utilisation of engine hours increased from 60 per cent to 75 per cent and fuel consumption was reduced by six to eight per cent. The truck utilisation project focused on minimising idle truck hours by for example four operators on three trucks thus reducing idle engine hours to minimise lost time for breaks and shift changes. Other measures included focusing on improved dispatch usage, parking trucks when overtrucked, etc. Eco-driving was a project together with Swedish Road Administration with the objective to combine economical and environmental savings. To keep the focus on eco-driving a reward was set up for the shift team with the lowest fuel rate over rolling 15 weeks periods. Both activities included a comprehensive training program for mine foremen, dispatchers and truck operators focusing on efficient use of trucks from economic driving to optimised truck dispatching and minimising idle engine hours. Online monitoring of trucks activities and fuel consumption combined with continuous reporting gave shift foremen and management a tool to discuss and follow trends and individual shift team performance. The combination of close monitoring of mainly organisational practices and operator training resulted in significant productivity increase and lower operating costs without any capital investments.

Jan 1, 2007

The term geochemistry - chcmbtry' of the earth - is almost limitless in its implied subject, but of recent years a major trend of research in this field has been towards economic application in the search for mineral deposits, and in particular for those of some ofthe less common elements for which a demand now exists.Geochemistry is in a state of slow transition from a purely descriptive subject to a fundamental science concerned with the relationships that exist between the distribution of the elements in the earth's crust and the physical characteristics of the atoms of those elements. The progress achieved promises a set of basic principles which will relate the atomic characteristics of an element to the physico-chemical conditions that make for its dispersion or concentration. This means that, given a geological map of an areasufficiently detailed for the physico-chemical conditions existing in past geological eras to be deduced, there is the possibility that the relative distribution throughout that area of any element present, and its likely mode of occurrence, could be predicted from a consideration of its atomic characteristics.Since the atomic characteristics of the elements are becoming increasingly well defined by physical research, the attainment of this ideal of prediction depends upon:(a) the strengthening of geochemical theory; and(b) the development of petrological and mineralogical methods of assessing the conditions of temperature and pressure prevailing in geological formations at various stages in their history.The other prime requirement is a d.etailed geological map - a requirement that is all too often lacking.The fact that there has been very little "geochemical approach" to problems of economic geology in Australia should not be taken to mean that there is little point in trying to develop such an approach here in as active and as rigidly scientific a manner as possible. The degree of success that has attended the attempts so far made, to which reference is made below, suggests the reverse, particularly in view of the relatively slight cost involved if the investigations were properly organised on a centralised basis. There are three aspects of geochemistry that are directly applicable to the search for economic minerals.(a) The classic technique of the prospector can be made more sensitive and reliable by the use of modern equipment coupled with the application of geochemical theory to geological and structural data. The case of the rare alkali elements (see below) is givenhere as an illustration of the way in which the distribution of elements can be predicted from the first principles of geochemistry, thereby replacing the prospector's dependence on his "sixth sense" that enabled him to suggest that a certain area of formation was"favourable" for the occurrence of a certain type of mineral deposit.At its best, this sixth sense amounted to an almost subconscious correlation of all relevant associations and typical occurrences of the particular mineral experienced by the prospector during his...

Jan 1, 1950

By Greaves M. C

X-ray fluorescence spectroscopy used for the analysis of mill samples results in improved control of flotation concentrators.Techniques and equipment for sampling pulp streams, filtration and drying, grinding, briquetting and X-ray fluorescence analysis of samples have been developed.The current methods in use permit the analysis for lead and zinc in six pulp samples within 30 min total elapsed from the start of sampling. The X-ray method gives a precision at least equal to the former routine wet-way assay methods.The equipment is used also for pilot plant control, as a means of solving complicated analytical problems and in the rapid qualitative analysis of exploration samples.INTRODUCTIONIn milling and concentrating operations, classical methods for the assay of lead and zinc have been mainly of use for accounting purposes and for the post-mortem examination of plant operations, but have been of little value for rapid mill control. Where attempts have been made to apply these methods to control assaying, it has been necessary to modify the procedures and introduce short cuts which have tended to reduce their reliability.Even with these shortened procedures, the time taken to obtain a limited amount of information rendered them of little value for the control of milling operations where sudden, large fluctuations can occur. In recent years, a number of new and rapid analytical techniques, based on physical rather than chemical principles, have been introduced.These include direct reading emission spectroscopy, x-ray fluorescence spectroscopy and atomic absorptionspectroscopy.

Jan 1, 1964

Rio Tinto has embarked on a journey to use automation to improve the performance of its surface mines. The driver for automation is to improve the accuracy and consistency of mining processes and less to do with cost savings through labour reduction. A key task in most surface mines is blasthole drilling. The degree to how well this is done cascades through the downstream mining process. It impacts scheduling, excavation, slope stability, material handling, beneficiation and final product blending. Improved blasthole drilling was identified as an objective that has a significant business case in most of Rio Tinto's surface mines. This paper describes Rio Tinto's drill enhancement project that has developed a robust system for automating most of the functions on a Terex SKSS16 drill rig. Automated drilling is currently being used in production at the West Angelas iron ore mine in the Pilbara region of Western Australia. A description of the essential elements of the drill automation system is given together with an overview of how automated drilling is performed remotely from the mine office. A review of some of the benefits of the enhanced drill system is given together with the future plans to extend the functionality of the automated drill and the expected benefits.

May 1, 2010

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