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At some time in the mining life of an open cut coal deposit, consideration is usually given to determine the point at which underground mining becomes an economic proposition or even necessary. This can occur anywhere from the pre-feasibility project stage to decades after commencement of mining. Options which can be considered include the extension of the life of the open cut by use of larger equipment, the utilisation of highwall mining techniques and the introduction of low capital start-up or full underground development. The primary focus is always the minimisation of the total unit cost (including capital )of clean product. The transition point at which an undergound mining operation becomes more economic than an open cut operation is not a simple evaluation and depends on many factors, particularly on the nature of the deposit itself. The main general determining factors of the transition point are related to the three factors of mining resource, the mining method that can be used and mining cost issues. Mining resource issues include geography, geotechnics, strip ratio, geology and the size of the deposit. Mining method issues include highwall mining, extending the life of an open cut, the environment, available roof support technology, product yields and the availability of appropriate workforces. The mining cost factors discussed include capital and operating costs and the impact of productivity and management. All these factors impact to a varying extent on the transition point.

Jan 1, 1997

By G C. Lukey, J S. J van Deventer

The disposal and subsequent encapsulation of mine tailings in a cost-effective and environmentally secure and responsible manner is one of the principal issues facing any modern mining project. A careful assessment of all options available for the capping and subsequent remediation of tailings is important because it can result in large capital, operating and closure cost-savings. For these reasons, the technology of geopolymerisation is receiving increasing attention for the stabilisation and solidification of waste materials produced from mining operations. The first part of the current study investigates the application of geopolymer technology to the capping of hypersaline mine tailings. It has been found that suitable geopolymeric materials which have satisfactory compressive strength, durability as well as low permeability, can be formed using between 60 - 75 per cent of mine tailings as the main ingredient. It has been established that geopolymeric materials have the ability to suppress dust generation and prevent salt precipitation on the surface of the mine tailings. The slurry-like consistency of geopolymers would promote efficient application procedures through established tailings disposal techniques. This is a possible close-out technique for hypersaline tailings storage facilities such as those commonly found in Western Australia, which meets both regulatory requirements and community expectations. The immobilisation of contaminant metals within geopolymers has been investigated in the second part of the present study. In particular, the leaching characteristics of Cu and Pb from geopolymeric matrices derived from different fly ash sources have been examined. Potential breakdown of each geopolymer containing metal contaminants due to the leaching of Si and Al from the geopolymeric matrix has also been investigated.

Jan 1, 2000

Suppression of the explosion of the world population and the surprising increase of waste and emissions are major targets confronting mankind in this century. Recycling and waste minimisation are key words for sustainable development in a highly industrial society. The argument is really whether or not recycling done well is the solution to the environment problem for the following generation. If energy is not necessary in the recycling, all materials have to be recycled. The greatest interest among the environmental issues is the regulation of CO2 gas emission. It must be recognised that it is not possible to completely renew expended energy. Some of the recycling systems currently used are thought to increase the load on the environment rather than to be beneficial. Although metal industries have consumed tremendous amount of energy and discharged a large quantity of CO2 and solid waste, the metals have supported a high quality of life. The metal production industries such as the iron and steel industry and the non-ferrous metals industry can work well recycling of not only metals but also other materials without consuming more energy. Waste plastics, for example, are use as a reductant in a blast furnace. The role of metallurgical industry in the recycling-based society is introduced in the present paper to recognise how the metal industries can contribute recycling and waste minimisation.

Jan 1, 2002

By Hancock RG, Dewar GJA

The mining and exploration industry is governed both directly and indirectly by a complex and constantly changing regulatory and legal system, yet few technical professionals realise the extent to.which they are affected and that they are personally liable for any breaches. These breaches may result in criminal or civil prosecution that could involve significant financial penalties (to the extent that all personal assets are at risk) and even imprisonment. Generally, a professional at risk should be able to mount a due diligence defence in order to avoid or mitigate these consequences. Mineral property and company owners, directors, managers and employees are at risk, as are consultants, contractors and suppliers of equipment or consumables. Whilst all are liable for their personal decisions to act (or failure to act) in managing operations or carrying out directions, as well as for the actions of others under their control, the focus here will be on the exposure of the consultant. Consultants are usually driven by an internal desire to perform to a high standard because of personal pride in their work and concern for their professional reputation. However, there are an increasing number of external requirements for them to be able to demonstrate, if necessary, that their actions were based upon reasonable grounds and that their work conformed to current best practice standards. If they cannot do so, they may face potential personal Liability.

Jan 1, 1995

Much has been written about leadership over the years. It is probably one of the most written about but least understood and defined concepts in business. Leadership and management are often confused and blurred, and inspirational words such as mentor, coach, motivator and the like, are often interspersed when describing a leader. There are a few things we do know about leadership:The only thing common to all leaders is that they are different.Leadership is not the sole domain of business; it applies to every aspect of human endeavour. We are all required to lead at times, and we all have it in our ability to lead. There is no set of predetermined competencies, which a leader must possess to be effective. Hence there is no course in the world that can teach you to become a leader. There is no such thing as the perfect leader. Leadership is a verb, not a title; you actually have to do it to be judged a leader. All leaders no matter how you define the term, must leave a legacy. Thus in the busy world we all live in, what are the lessons in leadership that we can all learn from, that will assist us all in our pursuit of leadership. The purpose of today is to put forward a framework for leadership that I have been researching and working on for many years. It is not the definitive framework, merely a framework. Out of today you will take your own collective thoughts, learnings, observations, experiences, education and training, and collective wisdom, and apply it to yourself.

Jan 1, 2004

Comprehensive occupational health and safety legislation in Australia is comparatively recent. It follows the examples set in U.S.A. and U.K. a decade or more ago. In Western Australia the Occupational Health, Safety and Welfare Act was proclaimed in April 1985. It still has a long way to go before it achieves all its objectives. The mining industry has developed a substantial body of health and safety regulations under the Mines Regulation Act. Considerable practical expertise in such matters already exists, much of it developed from hard won experience. As a result it would prefer not to become engulfed in the new legislation. It would prefer to build upon the cooperatively developed policies and workable practices in the field of occupational health and safety with which it is familiar. Associated Minerals Consolidated Ltd. is a leading mineral sands producer in Western Australia and has continuously developed its occupational health and safety policy and practices. Under the banner of "Resource Control", AMC seeks to provide a safe and healthy working environment at all times. This is being achieved through a strategy of a policy, a defined organisational structure and a detailed programme, which together comprise the "Resource Control System". Some of the activities and achievements of AMC in the field of occupational health and safety are compared with the objectives of contemporary legislation, and details of some of the specialised areas of the Resource Control Programme are discussed. The paper will also highlight and discuss impractical areas of potential legislation.

Jan 1, 1986

By N Ozawa, R Kaneko, M Arimit

The Mitsubishi Higashitani limestone mine is a ten million tonne per annum operation located near the city of Kitakyushu on JapanÆs western island of Kyushu. Higashitani is one of the largest limestone mines in Japan and accounts for about five per cent of national production. Blasting practices at the Higashitani mine involve the use of bagged ANFO, dynamite primers and non-electric detonators. Regulations in Japan prohibit the use of site mixed bulk explosives. Blast size is usually around 17 000 tonnes with 20 holes in a single row, two or three blasts are fired per day at a powder factor of between 0.25 and 0.32 kg/m3. As part of a program looking at oversize reduction Mitsubishi, Asahi and Orica agreed to conduct a joint project at the Higashitani mine to investigate the relationship between the powder factor and fragmentation. The first stage of the project was to benchmark the current blasting performance. Five blasts were monitored in each of the 210 (hard rock) and 220 (soft rock) areas of the mine. OricaÆs Powersieve« software was used to measure fragmentation and total rock breaker hours were also recorded for each blast. OricaÆs computer blasting simulation model Sabrex« was used to prepare revised blast designs with a higher powder factor and predict their performance. The performance of these blasts was monitored using the same methods.

Jan 1, 2004

By D E. Langberg, D R. Swinbourne

The past century has seen the development and commercialisation of many new pyrometallurgical processes based on gas injection. The driving force behind this trend in smelting and refining technology was the increased productivity and resulting increase in capital utilisation achievable. However, measurement of system variables is not easy and their effect on the rate of the reactions involved is not well characterised. One of the critical parameters is the gas-liquid interfacial area produced by gas injection. Related variables such as bubble size and velocity, and gas hold-up fractions in aqueous systems have been measured using combinations of physical (visual, audio and electrical) and chemical techniques. Models have been developed relating interfacial area to physical properties and operating variables and attempts made to extrapolate these to high temperature, liquid metal systems. The only attempts at validation of these models have used either low temperature liquid metals, such as mercury or WoodÆs Metal, or operating plant data. This paper reviews existing knowledge of the effects of system variables on total interfacial area in gas injection systems. Interfacial area is calculated from a range of published experimental aqueous and liquid metal systems and used to assess existing models. An operating region diagram was developed to assess dynamic similarity between experimental and industrial systems. It highlights areas where further research into both measurement techniques and experimental system variables is required in order to extend knowledge and guide further technical and design advances into the 21st century.

Jan 1, 2000

By H Aral, L Malishev

The carbothermic chlorination of titaniferous materials such as rutile, synthetic rutile (SR), upgraded slag and ilmenite in a fluidised bed is an established commercial process. In this work, ilmenite sourced from the Murray Basin area of South Eastern Australia was chlorinated and an assessment of the chlorination characteristics of the ilmenite, in terms of pre-treatment, type of reductant and reaction time was made. Selective chlorination of Murray Basin ilmenite to remove Fe and Mn was achieved in this work. A synthetic rutile sample containing around 93 per cent TiO2, one per cent Fe2O3 and 0.5 per cent MgO was produced at a chlorination temperature of 1000¦C with around 25 per cent loss of Ti as TiCl4. Raising the reductant to ilmenite ratio in the chlorination reactions increased the amount of Ti chlorinated. However, complete chlorination of Murray Basin ilmenite to produce FeCl3 and TiCl4, was not achieved under the conditions used in this work. Pre-oxidation of Murray Basin ilmenite before chlorination had little affect on its reactivity, compared with æas receivedÆ ilmenite. In contrast weathered West Coast ilmenite chlorinated appreciably better than West Coast primary ilmenite, in terms of bed residues remaining and amounts of elements removed. The presence of large amounts of Mg and chrome spinel grains in the Murray Basin ilmenite used in this study are likely to make it difficult to chlorinate directly in a commercial chlorinator. However, this is not to say these ilmenites will be unsuitable for chlorination applications. Further work is needed in the separation of Mg and chrome spinel grains from Murray Basin ilmenites and the products resulting from these tests could then be assessed in terms of chlorination performance, so that further processing options can be explored.

Jan 1, 2000

In general the iron ore industry has been slow to adopt the Whittle Pit optimising software in the evaluation of iron ore deposits. The reasons for this are two-fold:the iron ore industry has developed techniques, usually bespoke software residing in the corporate offices of the respective iron ore companies, to establish their final pit limits; and the fact that the Whittle software doesnÆt easily lend itself to estimating a sales product of constant quality without maximising grade (metal content). The Whittle software is based on the work done by Lerch and Grossman (in the early 1970s), which proposed that graph theory be used to establish an optimal surface that maximises the revenue from a deposit. The maximised surface created in the pit optimiser is translated into a proposed optimal final pit shape that can be used by the mine design engineers as a target outline to lay out the final practical pit. By treating a geological and ore resources model that was created for an iron ore deposit as a subset of the recoverable resources estimation (RRE) type of geological models, the evaluation of an iron ore deposit and establishing the final pit is greatly simplified in the Whittle 4-X optimiser. Instead of trying to optimise the iron content of the deposit, the emphasis swings to maximising the extraction of a finished and saleable iron ore product. This is achieved by treating the finished saleable iron ore as an element in the multi-element Whittle optimiser. The quality of the finished sales product is represented, and the material that cannot be used in the blended product is also shown. Proposals for enhancing the functionality in the Whittle 4-X optimiser to make the evaluation of iron (and coal) deposits easier includes the creation of a new reporting function that will allow the user to specify which field(s) can be used as the divisor(s) for the reporting of the element grades in the model.

Jan 1, 2007

Anyone who has driven backwards using only their rear view mirrors knows how difficult it is to avoid spinning the steering wheel the wrong way. So why run your mine that way? Traditionally Reconciliation has focused on the past performance of the mine. In this paper we make a case for Prognostication û the act of forecasting or predicting something in the future from present indications or signs. Reconciliation is a common activity carried out at most mines around the world. Countless geologists and engineers spend hours poised in front of spreadsheets diligently comparing how their resource/reserve model, grade control, and survey pick ups compare to what was actually produced. The result is usually a group of factors, which are applied to future estimates in an attempt to better predict how the operation may perform. Unfortunately, if the road ahead isnÆt the same as what you have just been down, youÆll be æoff-roadingÆ in no time! An alternative is to constantly collect and analyse key measurements that are used to calibrate critical estimates in an iterative process. When variations occur, they are analysed and corrective action is taken to ensure the estimates and measurements realign. In this way the estimates become forecasts and can then form the basis for decision making to ensure that what does happen in the future will match the plan or schedule. By automating this process, some mines have been able to be proactive on a daily basis in order to improve the overall performance of the operation. This paper outlines the key estimates and measurements used for reconciliation, details the characteristics of an automated web based information management system to facilitate the process and provides some insights about how mining operations might move beyond reconciliation.

Jan 1, 2003

By P Hanna

In an effort to improve returns to shareholders, the Australian Mining Industry has consolidated considerably over the past decade or so. Technical services at mines have been re-structured, whilst those at corporate offices have been all but eliminated. A recent study of the role of the geologist in BM Alliance Coal Operations Pty Ltd (BMA), showed the adverse impact on the companyÆs performance due to a lack of geologists. With an education campaign, to demonstrate the contribution of geologists to the æbottom lineÆ and in increasing the options available to the company, the value of the geology role became better understood. The implications of the loss of invaluable corporate knowledge, when long serving geologists left the company, also became clear. Steps have since been taken to increase the numbers of company geologists, particularly on mine sites. In common with other sectors of the mining industry, the Australian coal industry is experiencing a critical shortage of experienced coal geologists, as companies have found in recent recruitment efforts. This is further evidence that the recommendations from the recent study by World Competitive Practices, commissioned by The Australasian Institute of Mining and Metallurgy, æRising to the ChallengeÆ have not been adopted. People, and the mineral resource base, are the assets from which mining companies gain a sustainable competitive advantage. Geologists, as the nexus between the resource base and people, are in a unique position to enhance the profitability of their companies. To maximise their contribution to the industry, and ensure that they receive due recognition, geologists must adopt a more commercial approach in their work and take a front foot stance in promoting their value to management. Geology is a core competency for all mining companies. The tendency for companies to outsource this function, to the detriment of the company geologist role, is not sustainable in the longer term. TodayÆs geologists need to work closely with management, technical and human resource professionals, universities and schools to ensure their significant value is well understood, and that the industry can attract, train and retain new recruits through the implementation of graduate programs and company career paths.

Jan 1, 2003

Over the last 20 years the mining industry has played a key role in the further development of many Central Queensland and New South Wales communities. The number of people who are employed by the coal mining industry, the number of transient residents, shift work and the town facilities have all contributed to how the community views the coal mining industry. As the coal mining boom continues and the mining communities continue to grow more emphasis is needed to address the community concerns, specifically the socio-economic and environmental impacts that the coal mining companies may have on these communities. Central Queensland coal mining operations are situated in the Bowen Basin. Many of the towns in the region have been developed specifically for the coal mining industry with 13 - 50 per cent (Australian Bureau of Statistics, 2006) of people living in the communities being directly employed by the mines. The introduction of shift work, differing rosters and the mining boom have resulted in considerable changes to these communities with more transient contractors and permanent employees taking up residence outside of these communities. This change, however, has not been as noticeable in the Hunter Valley region. The Hunter Valley, situated in the Sydney Basin has two main mining towns, Singleton and Muswellbrook. Of the 37 173 (Australian Bureau of Statistics, 2006) people that reside in the communities 13.8 to 16.5 per cent (Australian Bureau of Statistics, 2006) are employed directly by the mines. The Hunter Valley is a large tourist destination due to its many vineyards; this results in a diverse community where mining is not the sole means of employment. Similar to Central Queensland the mining boom has brought more people to the Hunter Valley region, although greater percentages have taken up residence in the communities. The views vary between the two regions on the coal mining industry, specifically on the socio-economic and environmental impacts that the industry may have on the surrounding communities.

Jan 1, 2008

According to the Australian Bureau of Statistics, fatalities from road transport accidents represented an average of over 97 per cent of all transport related accidents between 1997 and 2002. With increasing traffic density, tunnels are becoming a more viable means of providing alternative travel routes to ease areas of congestion in the road transport network. However, unlike open road conditions, a fire incident in the confined space of a tunnel environment may impact upon many users that are remote from the incident location. In this context, designing for an appropriate level of safety in tunnels is therefore an important consideration for achieving consistency in the life safety measures for users of the road transport network. Unfortunately, like fire safety engineering design for buildings, there are presently no clear measures in the design processes to assess the adequacy of the design in terms of attaining the level of safety implicated in the design objectives. This is partly due to the indeterminate nature in which the design objective or the level of performance measure is stated û the intent of the objective is relatively clear but the measure of it is not. Another reason is the lack of a standardised procedure for determining the critical design variables affecting life safety. This is important to ascertain consistency in the use or adoption of the important parameters for design. This paper looks at the processes involved in the fire engineering design of road tunnels that are currently practised. A review of the design processes for fire safety in road tunnels is provided, which includes the range of fire scenarios in a tunnel environment, the traffic flow and composition, the relevant fire protection systems, the ventilation and smoke control system, the egress provisions and the benefits of incorporating fire brigade intervention. A simplified risk assessment approach is developed for a typical road tunnel to assess and evaluate the impact of a range of design parameters on life safety. Using a sensitivity technique, the important variables are then identified and means of reducing design variations associated with them are recommended. The technique may be further refined for use in the development of codes or guidelines in order to develop a suitable means of deriving more consistent design values, and hence achieve better consistency in the overall level of safety in the design.

Jan 1, 2008

Mining companies around the world devote considerable effort to production reconciliation and metallurgical accounting. However, although sampling, weighing and analysis methods used to obtain the raw data for metal balancing continue to improve, they are still areas that are sadly neglected. Using the latest metallurgical accounting package to improve metal balancing is fundamentally flawed if the data used are unreliable in the first place. The basic rule for correct sampling is that all parts of the material being sampled must have an equal probability of being collected and becoming part of the final sample for analysis. If this rule is not respected, sampling bias can easily be introduced. Unlike precision, which can be improved by replication, bias cannot be reduced once it is present. Sampling and sample processing procedures must therefore be carefully designed both to minimise bias and to obtain acceptable precision. The most suitable sampling location is the discharge point of a process stream, where increments can be obtained by taking a complete cross-section of the stream with a sample cutter. Sampling devices that take only part of the stream may introduce serious bias and must be avoided. The moisture content and wet mass of the material being sampled are of similar importance to chemical analyses for determining metal content. The accurate determination of moisture content is particularly difficult, because the moisture content of samples can change after the sample is taken, eg due to moisture evaporation. Hence, moisture samples need to be taken quickly and placed in sealed bags or containers that are impervious to moisture. The moisture content should then be determined without delay. To determine wet mass, a range of weighing methods are used in industry, including weighbins, weighbridges, conveyor weightometers and platform scales. The precision and accuracy of these methods vary considerably, so it is important to select a method with the appropriate precision and ensure that the weighscale is well maintained and regularly calibrated.

Jan 1, 2002

By P Mason, J F. Huntington, K M. Scott

Short-wave infrared (SWIR) spectral reflectance of the hydrothermally altered volcanic rocks in the footwall of the Hellyer Zn-Pb massive sulfide deposit was measured with a portable PIMATM infrared spectrometer. The Al-OH absorption band was used to derive information on the cation composition of white mica. The wavelength range of the Al-OH band from 2194 nm to 2222 nm reflects variation in the number of octahedral Al (Alvi) in white mica from 3.9 to 3.2 (based on four octahedral cations per formula). This Alvi range indicates a substantial compositional variation, covering most of the compositional region between muscovite (Alvi = 4.0) and phengite (Alvi = 3.0). Moreover, the spectral reflectance data show that the compositional variations of white mica are spatially related to the hydrothermal alteration zoning, such that the white mica of more phengitic composition tends to form in the main upflow fluid channels in the centre of the footwall alteration system. The results suggest that the octahedral Al content of white mica, which is spectrally definable by the wavelength of the Al-OH band using a field instrument such as the PIMATM, can be used to map fossil hydrothermal systems and potentially as vectors to mineralisation.

Jan 1, 2004

By S C. Dominy

Current and proposed methods of resource classification relate to the geological, economic and technical confidence in the estimated resource. Geological confidence is, however, only vaguely defined. It is largely related to the level of drilling and sampling, to the geologistÆs perceived level of confidence in his/her work and on the continuity of the mineralisation. Rarely has any real attempt been made to assess how well a deposit has been explored, sampled and evaluated and how accurate or realistic the geological model is for the deposit. This contribution reviews the impact of two of the potential sources of error, ie sample recovery and quality. The first of these parameters is measured during logging and assaying, but is often forgotten during grade and tonnage estimation, and resource classification. Preliminary studies have shown that modelling of this parameter is a valid exercise, which should accompany the evaluation of grade and other economic parameters. The sample recovery factor for an ore block can then be used to reassess the confidence in the block. It could, for example, downgrade the status of a Measured Resource to an Indicated Resource even though standard methods might indicate that the higher classification is applicable. A method is proposed by which this recovery factor could be incorporated into current resource classifications producing a more sophisticated and comprehensive measure of sample quality. A review of the sources of error naturally leads to the assignment of scores to each stage of the evaluation process, depending on the methods used and assumptions made. Sample recovery is one important factor, which is likely to appear at several stages. These scores can then be weighted and combined in a manner resembling that used in the CSIR Rock Mass Classification. This score will then allow the resource estimate to be rated on a scale from 0 to 100 per cent to produce a Quality Control Index (QCI). However, this index must then be modified using an Evaluation Difficulty Index (EDI), which reflects the difficulty of a particular style of mineralisation to accurate resource estimation. This results in the production of a Resource Reliability Rating (RRR), which can then be linked to international classifications, such as the 1999 JORC; 2000 CIM; and 2001 EURO codes. This will permit a more precise definition of geological confidence levels or, combined with estimation error, produce a classification system in its own right. This same rating can also be used as the basis for technical audits of mineral projects.

Jan 1, 2002

By Davey KJ

Complex sulphide ores are characterised by complex texture of the valuable minerals. Any assessment of the performance of differential flotation circuits treating such ore should include analysis of the effects of poor liberation of the valuable minerals. Selected samples were taken from balanced size by size surveys of the flotation section of a concentrator treating an ore body containing fine grained galena and sphalerite in a matrix of iron sulphides which is mostly pyrite. liberation measurements were made using the QEM*SEM system on four or seven size fractions. The measurements indicated that less than 40 per cent of the galena and less than 60 per cent of the sphalerite in the flotation feed was liberated. The final concentrates were largely composed of composites of valuable minerals and iron sulphide however there was a small but significant fraction of liberated iron sulphide. Using the sized mineral flows obtained from the original balances and the liberation measurements, a satisfactory liberation balance was obtained. This enabled the effect of liberation on the flotation performance to be examined; not only for the entire circuit but also in the rougher, scavenger and cleaning sections. In the zinc circuit the effect of a regrind mill could be assessed. Recovery of galena in the lead circuit was limited by the recovery of composite lead particles. Recovery of liberated galena exceeded 95 per cent in all size fractions while the recovery of composite galena exceeded 85 per cent below 38 ¦m but fell sharply above 38 ¦m. Examination of the behaviour of the liberated and composite galena in the various sections of the lead flotation circuit revealed high recoveries of both liberated and composite galena particles in the roughing and scavenging sections but very low recoveries in the final two cleaning stages. Similar trends to those observed in the lead circuit applied in the zinc circuit although the performance of the liberated sphalerite also fell off at sizes greater than 38 pm in this case. Thus the zinc recovery was limited by the flotation of both the liberated and the composite sphalerite. The effect of regrinding was to increase the recovery of sphalerite mainly by reducing the amounts of sphalerite in less liberated sizes rather than by increasing the liberation of the sphalerite within a given size Fraction.

Jan 1, 1993

Paddington processing plant is located approximately 30 km north of Kalgoorlie on the Menzies Highway and is owned by Placer Dome Asia Pacific. First mining was from the Paddington Pit, but in subsequent years the plant has had a history of treating ores from a large number of sources, and has used several different methods to reconcile mining and mill production. Reconciliations are necessary to keep a check on the quality control of mining and grade control processÆs. There is a need to be able to identify and resolve issues that will affect the profitability of the organisation quickly. They are also used to check the quality of the resource/reserve statements, and allow the accurate and timely payment of royalties to stakeholders. During the formation of the Kalgoorlie West operations when Delta Gold Limited and Goldfields Limited merged in 2001, the complexity of reconciliations increased dramatically. The expansion of the scope of reconciliations to include two mills, four underground mines and seven open pits, and ore from one deposit to both mills meant that a revised strategy was essential. A variety of issues have arisen over the years with discrepancies occurring when reconciling both tonnes and grade. There are many ways to approach reconciliations, and in recent times these philosophies have been widely debated on site. A consistent and logical approach that takes into account many different sources of ore, as well as different methods of delivery to the Run of Mine stockpiles is therefore necessary. This would standardise the different approaches taken by the various operations that combined to form Kalgoorlie west. The new method reconciles mill production back to the individual ore sources, and produces reconciled-mined tonnes and grade based on the mill throughput and the change in stockpiles. There will generally be a small discrepancy between the claimed mined tonnes produced (and grades) and the mill production. This needs to be highlighted to the operations concerned if it considered unacceptably large. Paddington mill over the last few years has had up to ten sources of ore each year, and up to 15 different stockpiles being processed during each month from those various pits. This combined with the need for a blended oxide/fresh feed, whilst striving to deliver a consistent (grade and hardness) product to the mill, has meant that reconciliations have been very difficult.

Jan 1, 2003

This paper examines the broader implications of recent and ongoing changes in mineral resource managementå and reporting practices and the impact that these might have on mining companies. It is likely that an International Reporting Code will be developed in the near future, based on a number of National codes produced in recent years. However, this is only part of the reporting story, as an International Code brings with it a range of further issues to resolve. For the Code to be effective, there needs to be international recognition and perhaps licensing of Competent Persons and an expanded base of sponsoring professional bodies. Also, in an increasingly global business, shareholders, regulators and other interested parties need to know and understand the general processes involved in resource and reserve estimation and reporting in order to recognise companies that maintain the highest standards. There is a current trend towards greater scrutiny of company performance in a range of areas under the banner of corporate governance, and many changes are happening that will place greater disclosure burdens on all companies in the future. Good corporate governance means management of company assets for the benefit of the stakeholders. For a mining company, there is no greater asset than its mineral resources and reserves and directors are just as responsible for effective management of their mineral resources as they are for financial good practice. The paper looks at the relevance of corporate governance principles to mineral resource management and the changes that this could bring to the way that companies deal with regulators, shareholders, financiers and others. Finally, increased scrutiny and further regulation inevitably means greater effort by the industry and higher costs. Despite this the author believes that there are substantial offsetting benefits to be gained by companies prepared to take the initiative in improving resource management practices and communicating these improvements to shareholders. In order to achieve the benefits however, the industry needs to fully engage in the changes that are taking place û setting its own standards and working with the regulators rather than sitting back and being legislated against. Mineral resource reporting provides a good model of how this process can work and there will be other opportunities in the coming years as the industry seeks to develop best practice in mineral resource management. The author is an employee of Rio Tinto but wishes to point out that the views expressed in this paper are his own and not necessarily those of Rio Tinto.

Jan 1, 2002