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It is usually the case that the short-term plannerÆs role is occupied by the younger site mining engineer. ThatÆs because mine scheduling is generally seen as a mundane and thankless task. But, short-term planners play an extremely important role in maximising the value of the mining resource, generally the companyÆs biggest asset. A look at any mining operation today will expose the competing drivers behind the operational and strategic plans. Operations are too often faced with pushing short-term constraints. It is the responsibility of the short-term engineer to answer the question of æWhere to next?Æ. In answering this question the young mining engineer is in an environment overflowing with urgency and constraints. Hasty decisions made at this time may have significant adverse consequences to the long-term value of the resource. Long-term strategy must address a broad and expanding number of issues that are generally overlooked by the short-term planner. It takes a holistic, rather than the prescriptive approach of short-term planning to determine the best strategic direction for the operation. To better understand the consequences of decisions made at the operational level short-term planners need better vision of the whole business. The key to improving the mining business is a planning process that integrates the short-term planners role with the overall mining strategy. Future developments in the mine planning process will focus on bridging this ædisconnectÆ between the operational objectives and the long-term goals. Improvements will come from the tools which planning engineerÆs use, and the planning methodology surrounding them. There will be significant hardware improvements to improve the speed with which a short-term planner can evaluate plausible options. Software that maximises the use of the improved hardware will be developed. Complimenting these technological improvements, conceptual methodologies of mine planning will improve to allow strategic planning to be brought within the focus of the short-term planning engineer. In todayÆs mining industry the young mining engineer is embarking on a career where business processes are paramount. This paper discusses the ædisconnectÆ that occurs today between the operational planning and long-term strategy and how this is driving developments in mine planning today.

Jan 1, 2003

By A Purchase, C Stacey

The procedure for operation of deluge systems installed in road tunnels is still a subject of debate. The work undertaken in this paper assists in the understanding of the effects of deluge in road tunnels, and thus aims to help inform the development of operational policy. Analysis was undertaken using computational fluid dynamics (CFD) simulations to help explore the deluge interaction with the tunnel ventilation (including smoke exhaust) and combustion products. It was found, for the scenarios considered, that: Deluge activation can decrease the required critical velocity for smoke backlayering, and this in turn can improve the effectiveness of a smoke exhaust system.The dominant parameter for deluge effectiveness is the vehicle configuration, with shielded scenarios (such as a fire in the passenger compartment) showing almost no water reaching the fire. The water delivery rate (5 mm/min versus 10 mm/min) has only a minor effect on the smoke duct damper inlet temperatures and downstream smoke temperatures for small fires (5 MW). For large fires (50 MW) the higher water delivery rate gives slightly improved performance (lower damper inlet temperatures and lower downstream smoke temperatures). A one-dimensional transient tunnel model incorporating different operational and deluge response policies (ie deluge activation times) was developed. It was used to examine the influence of different operational parameters on life safety risk and tunnel damage risk. It was found, for the scenarios considered, that: The life safety risk for different scenarios has a sensitivity to deluge activation policy with the case of delaying the deluge activation for a long time giving the worst outcomes. However, the most critical parameters for life safety risk are operator response time (for all response activities, not just deluge) and the type of fire (configuration, size and growth rate).There is a reduction in risk of tunnel damage when the deluge is activated earlier, although the fire configuration (ie whether or not the seat of the fire can be reached) has the greatest influence on the outcome. It is concluded that the deluge activation policy should be case-dependent. It will depend on the tunnel, the safety systems provided, and most particularly the vehicles involved. The current policy in Australian tunnels is for manual activation of the deluge by the tunnel operator as soon as practical after the fire is confirmed (see also PIARC, 2007). This is a good policy. However, future work may be helpful to improve the skills of operators to make the best judgement as to when deluge should be activated, balancing all risks. This work could include research to further the understanding of deluge and fire in road tunnels, training programs and consideration of historical fire events.

Jan 1, 2008

By C Hertle

GHD-Black & Veatch (GHD-BV) have completed design and specification of the ash thickening plant at Tarong Power Station, including operation of a pilot plant. Construction of the plant is in progress and commissioning is planned for early-2004. The objective of the new plant is to convert the low concentration (lean phase) ash slurry currently generated by the power station into concentrated slurry which will then be pumped to the existing ash dam. Water recovered from the lean slurry will be returned to the power station for reuse. The drivers behind this project are to extend the life of the ash dam and to reduce water pumping costs. A maximum flow of 1000 litres per second is expected in the thickening plant. The process involves a screening phase, which removes large material that could cause blockages or equipment damage. A 50 metre diameter thickener then concentrates the screened lean ash slurry to 55 - 60 per cent w/w solids. In addition, the thickener plant will allow the harvesting of floating cenospheres (hollow, spherical ash particles) from the lean slurry. Cenospheres are currently collected from the surface of the ash dam and drained on a pad adjacent to the dam. The new system will use a surface skimmer to remove the cenospheres from the thickener and transfer them to settling ponds for further classification. The settling ponds simulate the detention on the existing ash dam, and allow entrained fine ash and slow settling cenospheres time to settle. As settling occurs in ponds, the slow settling cenospheres can be completely recovered whereas when they settle in the dam, the opportunity for recovery is lost. Cenospheres are a valuable by-product produced during the combustion process, and recycling of this material reduces the waste generated by the power station. Water recovered from the thickener drains to a three megalitre reservoir. Water is drawn from the reservoir for thickener plant service water and various other uses in the power station. The bulk of the water is used to sluice ash from the power station to the thickening plant. In the current configuration, surface water from the ash dam is reused but must be pumped several kilometres back up to the power station. The dam also holds an inventory of several thousand megalitres of water and has significant evaporative losses. Therefore the current raw water make up demand is substantial. In addition, some areas of the power station traditionally using raw water will be modified as part of this project to allow the use of recovered water, further reducing the raw water demand. The design incorporates many features of sustainable water management. By more effectively recovering water from the lean ash slurry, the amount of raw water make up required by the system will be significantly reduced. This method of water recovery provides a more sustainable and energy efficient ash-transport mechanism.

Jan 1, 2003

Thank you and good morning. I am delighted to be here and to see so many of my colleagues and competitors. The general topic of this week's conference - World's Best Practice in Mining and Processing - suggests a focus on mining and processing. I am somewhat of a `jack of all trades and a master of none'. But I'm not even a jack when it comes to mining and processing technology and practices, and so I will leave those topics to speakers better 'qualified than I. Instead, what I would like to do is give you my thoughts on the best management practices of mining. You see, the times are changing for the mining business. There is great uncertainty in our industry. Anyone who received their education in an English-speaking school probably remembers the famous poem `Invictus' by William Ernest Henley. The two most famous lines from that poem are, if you remember, `I am the master of my fate; I am the captain of my soul'. The fact of the matter is that the metals industry, including the copper industry, is not the master of its fate. To a great extent we're at the mercy of forces over which we have little control, such as the world economy or political situations in individual countries. The copper industry is like a surfer at Manly - we can't influence where the wave is going; all we can do is stay in front of the curl and on our board. Historically, discovering, developing and processing ore reserves were the primary facets of our capital intensive business. To stay competitive today, we must invest equally in intellectual capital - our employees - in order to succeed in the face of economic, regulatory and political challenges and global competition (Schonberger, 1986). Everyone seems to have a different theory about being competitive. A lot of people use sports analogies when talking about competition. Others, like American businessman and former US presidential wanna-be Ross Perot, take a more interesting approach. In Mr Perot's hypothetical corporation, competition is a lot like having a snake in a factory. If someone sees a snake, the first thing they do is create a committee on snakes. Then, the committee on snakes meets and discusses the problem for a couple of years. The most likely course of action is nothing. Everyone figures that the snake hasn't bitten anyone yet, so they just let him crawl around the factory floor. Perhaps a vice president of serpentine affairs is appointed to continue watching the snake - making sure it doesn't grow. Ross Perot sees it a little differently. In his corporate world, business needs to build an environment where the first guy who sees the snake kills it. Of course in our industry, we better make sure the snake isn't on an Endangered Species List before we go after it! I am not going to talk about competition and competitive forces in terms of sports or snakes, but I would like to share some thoughts with you about how the mining industry can better utilise competitive thinking to get ahead and stay there. You may be wondering how an executive from a 160-year-old company could know much about competitive spirit, but the founding ancestors of Phelps Dodge were wizards at identifying

Jan 1, 1995

This presentation addresses the sources and weighting of project risk in coarse gold deposits with relevance to experiences at the Ballarat mine and Castlemaine goldfield. With sample representation and reliability often a source of great error in the resource estimation of coarse gold deposits, it follows that this matter should be of greatest risk to a mining project - but is it? What are the costs and efforts required to best quantify the sampling error due to nuggetty effect? After all, the main problem in Victorian gold mining ventures in the current decade is not the amount of gold available, but defi ning which portion of it can be converted to Ore Reserves or more so profitable gold bars. The author postulates that greater risk to the project lies in the geological interpretation and matching resource spatial parameters to mining methods, than the degree of uncertainty related to grade due to nuggetty gold. Recent experience in the Victorian goldfi elds is that the investor market has already severely discounted Mineral Resources reported in accordance with The JORC Code - so if they don't believe in the capacity to upgrade the resource why should we? To this end, Castlemaine Goldfi elds Ltd at its Ballarat gold project does not intend to estimate its gold mineralisation for public release, instead choosing to focus on the geological interpretation and mine planning elements. So with coarse gold deposits, is your Mineral Resource reported with The JORC Code a glass half full or half empty? Our mining forefathers in Victoria had no predictive tools which could define resources to any degree and yet were successful. By over emphasis on the definition of mineral resources and particularly the sampling error, are we ignoring the basics of cost control, solid geological interpretations and maximum mining flexibility. This is an ABSTRACT ONLY. No paper was prepared for this presentation.

Aug 1, 2010

Australia is a highly significant hub in the global minerals business. This paper will present the results of global and national studies looking at the potential 20 to 30 year future evolution of the mining and metals industry.   Globally, the World Economic Forum launched a Mining and Metals Scenarios project in January 2009 to explore the question: 'How will the environment for the global mining and metals industry look in 2030?'. As part of a structured strategic foresight process, eight workshops were held across the world over the course of a year which brought together over 200 leaders from the private sector, government, academia and non-governmental organisations. The workshops were supplemented by personal interviews and guided by an international advisory board.   Critical uncertainties for the future of the industry were identified and compare extremely well with the outcomes of a national survey of AusIMM members identifying the key issues and drivers shaping the future of their operations. Global context was one of the most significant issues identified by The AusIMM membership, which is expanded in the World Economic Forum study in terms of: geopolitics; global governance; action on climate change; and economic outlook. More specifically, this global study developed three divergent yet plausible scenarios describing potential environments for the global metals and mining industry in 2030. These scenarios are compared with ground-breaking global foresight work coordinated by the Stockholm Environment Institute in the 1990s. The scenarios will help decision makers rehearse alternative futures, anticipate potential hazards and identify business opportunities - new solutions, new markets and new connections. The presentation will present these scenarios as a way of challenging thinking, testing established wisdom, and stimulating imagination about the business case for the mine of the future. As Marcel Proust put it, 'The real voyage of discovery consists not in seeking new landscapes but in having new eyes'. This is an ABSTRACT ONLY no paper was prepared for this presentation.

Jun 1, 2010

By G L. Simmons, K M. LeVier, R Kappes

The low potential hydrophobic state of pyrite in amyl xanthate (PAX) flotation with nitrogen is of particular interest with regard to the N2TEC flotation technology currently being used for the recovery of auriferous pyrite at NewmontÆs Lone Tree Plant in Nevada. Initially, the N2TEC system had been found to operate satisfactorily, but cyanide in the flotation mill water appeared to be responsible for a loss in pyrite recovery. This supposition was confirmed with laboratory experiments, and a program was initiated to study flotation chemistry variables by electrochemically controlled contact angle measurements. Experimental results show that activation of pyrite in such cyanide solutions can be achieved more effectively with lead than with copper. Subsequently, based on these fundamental studies, significant improvement at the Lone Tree Plant was achieved by lead activation, in which case the recovery increased to expected levels. The effect of activator is particularly significant not only with respect to pyrite depression by residual cyanide, but also with respect to collector (PAX) consumption and the initial state of the pyrite surface. Experimental results show the importance of the pyrite surface state and the rather interesting features of the activation process.

Jan 1, 2005

By M Robotham

In April 2013, Rio Tinto Kennecott Copper’s (RTKC) Bingham Canyon mine experienced what is arguably the world’s largest ever in-pit slope failure. The failure initiated along a major, continuous, low-strength bedding fault, named the Manefay bed, and comprised approximately 145Mtonnes of rock and waste dump material. Initial East wall slope deformations were detected some months prior to catastrophic slope collapse by RTKC’s slope monitoring systems. However, the failure mechanism was different to that which had historically been experienced in the prior more-than-100 years of open pit mining. Failure occurred as two separate events, the initial one likely consisting of a frictional failure of rock materials along the Manefay bed itself, before a second phase of failure occurred, which included a large mass of old rail dump material. The combination of these events led to a much larger failure run-out than had been anticipated by the RTKC team which led to loss of, and damage to, mining equipment and infrastructure as well as significant interruption to mining activities. Due to the diligent monitoring of the slopes no safety impacts were experienced at the mine, and as such the details and learnings from this failure can readily be shared with the broader mining and geotechnical industries to avoid similar recurrences elsewhere. This is an extended abstract only. CITATION:Robotham, M, 2018. Bingham Canyon Mine – from adversity to excellence, in Proceedings The Fourth Australasian Ground Control in Mining Conference (AusRock), pp 3–4 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 30, 2018

By R Burgess-Limerick, J Haight

A review of mining automation experiences was undertaken on behalf of the National Institute for Occupational Safety and Health (NIOSH). The research included a review of literature and guidance materials; analysis of automation related incidents and visits to surface and underground mines in Australia, Brazil, Chile, South Africa, Sweden and the USA.

Apr 16, 2024

By R Ulusay

Rock mechanics involves characterizing the mechanical properties and behaviour of rock material and the natural discontinuities of the rock mass, while rock engineering is concerned with specific engineering circumstances, for example, how much load will the rock support and whether reinforcement is necessary. Rock engineering models developed depend considerably on the input data such as boundary conditions, the properties of rock material and rock mass. Correct evaluation of these properties frequently requires laboratory and in-situ tests, supplemented with a high degree of experience and judgment. Accordingly, since 1974, the ISRM Commission on Testing Methods has spent considerable effort in developing a succession of the ISRM Suggested Methods (SMs) for different aspects of rock mechanics and rock engineering with the contribution of a number of working groups and cooperation of some other ISRM Commissions. This paper emphasizes the need and importance of standardization of rock testing methods within the context of the ISRM SMs, gives a guideline for developing ISRM SMs and finally discusses on some implementation and contractual issues associated with rock testing and experienced in practice, and briefly introduces main future trends in rock characterization, testing and monitoring. This is an extended abstract only. CITATION:Ulusay, R, 2018. Standardisation on rock characterisation, testing and monitoring with emphasis on ISRM suggested methods, practical issues and difficulties, and future trends, in Proceedings The Fourth Australasian Ground Control in Mining Conference (AusRock), pp 17–18 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 30, 2018

By H Ş. Duzgun

It is expected that the future of mines will heavily adopt autonomy. However, problems with leveraging workforce transition, meeting Sustainable Development Goals, SDG’s (poverty, reduced inequalities), managing uncertainties (geologic, operational, economic), cybersecurity (connectivity, cyber-physical infrastructure) and innovation (transformative processes, real-time decision-making etc) are required to be solved for the intended autonomy. These problems also impact the safety of the future mine environment. The AI technologies provide a broad range of opportunities for enhancing mine safety. However, development of an accurate AI model for mine safety requires a large number of data, which may not be readily available to overcome the associated uncertainties in the mine environment.

May 5, 2022

By S Johnston, L Howe, S Stevens

Regulators have an important role to play in fostering and enabling reliable, effective, environmental management. Given this, it is perhaps surprising that there has been relatively little debate on exactly how regulators can enhance their own approaches, in order to promote improved outcomes overall. The authors argue that applying research on High Reliability Organisations, as well as the University of Pennsylvania’s Penn Program Framework for Regulatory Excellence, to regulators has the potential to facilitate positive environmental results across the mine life cycle.

Aug 2, 2023

By K Baker, J Purtill

One of the key challenges for the mining industry globally is the rehabilitation of mine waste, and Queensland is no exception. Out of pit waste structures including waste rock dumps and tailings storage facilities, create novel landforms which require ongoing maintenance and pose risks to the environment and sometimes to communities. Where multiple mines co-exist, such as parts of Queensland’s Bowen Basin, individual mines can often be constrained by adjoining operations. This presents opportunities for broader rehabilitation strategies to be considered, more than the current single mine focus, that may provide better environmental outcomes for a region. Given recent global disasters involving tailings storage facilities, and our team’s endeavours to drive Queensland to achieve leading practice in mined land rehabilitation, we are exploring the potential to maximise in-pit tailings disposal opportunities for coalmines through shared waste management strategies. A shared waste management strategy is where two (or more) mines, owned by different companies and operated under different environmental permits, transport tailings from one mine to the other in close proximity, for disposal in a disused pit. This would reduce the number of waste structures to be built, operated, rehabilitated, and managed in perpetuity. Our objectives are to identify and remove barriers to tailings transfers between sites to:  minimise environmental risk  minimise long-term liability of managing mining waste and associated structures  support improved outcomes for the local community. To determine the scale of coal waste disposal practices in Queensland, internal data and publicly available imagery was analysed by the Department of Environment and Science in 2022. Approximately 6500 ha of land in Queensland is utilised for coalmine tailings storage facilities or codisposal areas, with ≈ 3700 ha of this being out of pit.

Aug 2, 2023

In terms of tunnelling the mining industry is generally thought of as the crude cousin of the civil construction industry. Mining has tended to concentrate on speed and flexibility rather than the high standards required in civil tunnelling. Historically this difference has been based on the belief that such high standards were not required by the mining industry, they would slow down the development of the project and as a result increase the costs and extend the time period between start up and a positive cashflow.For civil works the construction of a tunnel is the project, for mining the construction of declines, crosscuts and drives are merely the means of accessing the orebody so that the real work can begin û MINING. Extraction of ore is the core business of most mining companies û it is what pays the bills.Though most mining companies have the equipment, the people, the knowledge and the ability to excavate tunnels, in the past mining companies did not appear to put the same energy into their tunnelling operations as they put into improving their ore extraction operations. In the past decade this appears to have changed, many mining companies now realise how important the correct excavation of a decline is to the success of the overall mining operation. They began to recognise that there were cost benefits to be gained in using the correct development techniques without overly sacrificing the benefits of speed and flexibility.This recognition also coincided with the growth of underground contractors whose predominant work was primary development (declines and ore access crosscuts and drives). The contractors again had the same knowledge, the same people, and similar equipment but their focus was different from that of the mining company û the contractors were focused on the development of the mine, the excavation of declines, crosscuts and drives. These deliverables were the contractorsÆ core business û itÆs what paid the bills.

Jan 1, 1999

Exploration and mining title administration in the Northern Territory has changed dramatically over the last 20 years. These changes have occurred due to legislative amendments, technological developments, and the changing face of the mining industry. The first legislation to control mining in the Northern Territory was the Northern Territory Gold Mining Act (1873) of South Australia. In 1911, control of the Northern Territory was passed from South Australia to the Commonwealth. As a result of the mining boom which followed the discovery of gold in Tennant Creek in 1932, the Commonwealth passed the Mining Ordinance of 1939. This legislation was amended 39 times and stayed in force until July 1982, when the self-governing Northern Territory passed the Mining Act 1980. This Act is still in force and is continuously under review. The first computerised mining titles system, REGIS, was created in 1984/85 and was, to all intents and purposes, just a computerised index. Various modifications ensued, and in 1989 the Titles Database was unveiled. The database has developed to be one of the most sophisticated yet user-friendly mining titles databases in Australia. In excess of 50 companies have access to the database from their own offices. Work continues on its development and fine-tuning. The paper outlines the development of the database since inception.

Jan 1, 1994

In the pursuit of commercial solutions for environmental issues, individual problems are often identified, considered and resolved in isolation from other environmental matters and always at the end of the cycle û after the problem has been created. Inter-relationships are neglected if they are not seen to obviously impact on a specific problem and the issue at hand is plucked from the environmental landscape and dealt with in total isolation to all else. In a Zero Waste approach to environmental matters, all outputs are pursued as potential inputs. Industrial processes are viewed as a variation on natureÆs theme and opportunity pursued above all else. When viewed from this perspective, industry appears to have forgotten its origins. It has forgotten that it is principally about people. The juggernaut of global trade has forgotten that it is a small part of a big landscape and that its principal participants, people, cannot exist without healthy soil. Commercial activity in all parts of the world relies heavily on the ability of agriculture to produce the necessary inputs for industrial production. The care and nurturing of our soils is fundamental, not only to the survival of humanity, but also to the economic systems that support that humanity and to the industry which profits by it. Actual levels of domestic recycling in many countries around the world seldom reflect the 90 plus per cent desire to recycle recorded in surveys conducted by local authorities in almost every country. If the desire to recycle is far removed from the end result, why is it that the systems provided are so ineffective? It is obvious that what we do need is a recycling system that both engages and rewards the participant and stimulates the innate desire to support the environment. A recent trial in New South Wales, Australia, demonstrated that by giving individual households credits for recycling organic wastes, not only will contamination levels fall dramatically, but increased yields, improved soil structure, improved land values, reduced fertiliser costs and increased water use efficiency give the farmer good economic reasons for purchasing and applying quality composted product. By underpinning and securing the agricultural community, we secure the future of industry. The æCity to SoilÆ project linked the economic on-farm benefits of compost use with reduced contamination through the provision of rewards paid for by the purchase of product by the farmer.

Jan 1, 2006

Following a decline in direct and indirect employment in the minerals industry between 2000 and 2003, the situation reversed in 2004 and employment rose by 12 per cent. Furthermore, there are forecasts of continuing employment growth in the minerals industry in the immediate future. For those of us charged with promoting the virtues of a career in the minerals industry this is encouraging news, as it provides us with the evidence to promote the increasing employment opportunities of a healthy and vibrant industry. However, for many others û particularly the employers in this industry û the news is not so rosy. The jobs are there, and in increasing numbers, but the workers arenÆt! Employers right across the industry are finding it increasingly difficult to fill vacancies with suitably qualified and skilled employees and the competition is becoming fiercer. In the minerals and energy sector, questions are being asked and solutions sought on the industryÆs ability to attract and retain a skilled workforce. From many quarters û industry, government and the education sector, calls for urgent action are becoming louder. The reasons for this are well known û the nature of the work, the remote location, perceptions of the industry, an aging workforce, the gender imbalance, the shrinking demographic of school leavers. It is the latter I wish to focus on û the Generation Y demographic û those who have recently left school, those who are in higher education or have recently entered the workforce, or those who are still at secondary school. These young people are the next cohort of potential employees for the industry. But our need for them appears to be greater that their perceived need for us! How do we engage them so they are informed about the industry? How do we inform and advise them so they are prepared to consider further education and training in disciplines and skill areas relating to our industry? How do we guide and motivate them to give it their best shot and work in it û at least for part of their working life? These are fundamental questions that many within the industry have been grappling with for quite some time. Let me share with you some of the strategies that the Minerals Council is implementing to address this issue.

Jan 1, 2005

By J G Bastias

It is sometimes necessary to resort to extremes in order to call attention to something that is pertinent to safety in mining. When some of the experts in occupational safety talk about this topic, they usually refer to a 'regulation' established by the Romans which stated that, due to the health hazards, usually death, no Romans but only slaves should work in mining. Since the time of the Roman Empire, a lot of ground has been covered in the field of mine safety. Nowadays, it can be said that occupational safety is being seriously addressed, with the result that the number of mining accidents has reduced dramatically, fatalities in this industry are less frequent, and the rate of accidents compared with other activities, such as construction or fanning, is low. This achievement has been possible initially through government legislation and by procedures established by the mining companies themselves. However, the dilemma for government is whether to regulate and if so, how much. It is pleasing to observe that most companies are establishing working procedures which conform with new government legislation, placing strong emphasis on the duty of care for mine employees. There will always be some regulatory aspects of legislation, and perhaps the best example of this is in the use of mine hoists where there are no international or Australian standards, and the regulations applied are of an empirical nature that err on the side of safety.

Jan 1, 1994

By R Knight

"In project evaluation there are two matters of keen interest to non-executive directors: the process by which an investment recommendation is reached, as well as the investment itself, as presented. It is sometimes mistakenly believed that Boards of directors are interested only in the result. That is not so. The process by which project evaluations are derived and socialised with the Board is as important as the result, sometimes more so.Setting aside the gloomy predictions of the doomsayers and looking through short-term volatility in supply and demand, the overall availability of mineral resources more often than not exceeds demand. There are in reality more development projects in prospect at any one time than are needed to meet the market. Only the fittest will prosper, although some others may survive.Optimism springs eternal in the mining industry and every project promoter, executive or entrepreneur has a convincing project development case. Some will create value for shareholders, but the historical evidence suggests that many will fail to meet the expectations set in their evaluation.Boards of directors make the final decision to invest, or not, in a new mine. Knowledge is power, and on that basis the balance of power favours management. Management has the facts (or in some cases, what passes for fact) and the passion to invest. The non-executives have the power of approval – yes or no – but before making a decision directors must demonstrate due diligence, the essential precursor to project approval.Management has a vital part to play in facilitating that due diligence process and in encouraging the independent thought processes of the Board. A closed approach by management fosters a negative, risk-averse attitude on the part of the Board. One that encourages an understanding of the rigour of the project evaluation process and the robustness of the result will allow directors to understand better the implications of their decision.CITATION:Knight, R, 2016. Project evaluation – a non-executive director’s perspective, in Proceedings Project Evaluation 2016, pp 11–19 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

Jan 1, 2004