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By D Connelly

Magnetite orebodies generally means mining lower grade iron ores, crushing and grinding with significant energy costs in processing and the capital costs being significantly higher than for direct shipping ores (DSO). Overseas, the mining and processing of magnetite ores has a long history of production due to the lack of DSO deposits. This raises the question as to why the new magnetite projects have been so problematic and also whether there is a future for the long list of potential magnetite projects in Australia.The quality of the magnetite concentrate product is superior to most DSO products and the magnetite contains energy benefits when converted to hematite in sintering or pelletising. The industry’s hopes for new projects have been dashed and questions are being raised as to the financial viability of such projects.A comparison of Grange Resources Savage River, Arrium’s Project Magnet, the Sino Iron Project and Gindalbie’s Karara Iron Project is used to understand the differences between the projects and why some are more successful than others.CITATION:Connelly, D, 2015. What is the future for magnetite projects in Australia and why have some of the new projects been so problematic?, in Proceedings Iron Ore 2015, pp 107–114 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

By V Novoselov, R Sabirov

Flotation processing technology of water-soluble minerals has made it possible to realise, since the 1960s, the wide scale industrial processing of potash and potassium-magnesium ores (about 200 million tonnes per year) as well as to create the multi-tonnage worldwide production of sylvite (KCl) for industrial and agricultural application. In this paper the particularities of the effect of reagents (blinders, collectors and frothers) during cation flotation in saturated saline solutions are outlined. New reagent modes for activating the effects of alkylamines during the flotation of KCl and the perfecting of technological flow sheets for processing potassium ore have been developed. The results of research on the reverse flotation of carnallite ore, with the help of alkylmorpholine û a new developing technology for benefication carnallite as raw material for the production of metal magnesium and fertilisers are listed. Examples are given of the industrial applications of processed reagent modes at potash flotation factories in Russia.

Jan 1, 2005

This paper covers only the energy uses of natural resources and does not deal with non- energy uses, which in 1975 were of the order of 10 per cent of the total consumption of energy resources. The United Nations `J' Series of Statistics ex- presses each of the various forms of energy in terms of its coal equivalent in metric tonnes and this basis is followed in this paper. One tonne of black coal (referred to as tce) has been taken as the equivalent of the following. 29 X 109 joules or 27.5 X 106 Btu 0.68 tonnes or 4.8 barrels of crude oil 750 cubic metres or 26.5 X 103 cubic feet of natural gas 1 ò5 to 3.3 tonnes of peat or lignite (world average 2.54; Victorian brown coal 3 0) 8055 kWh (at 3.6 X 106 joules or 3412 Btu per kWh at 100% efficiency) 2660 kWh at 33% efficiency of generation 50 grams of uranium present in natural uranium reactors (see note later under nuclear energy) 0.8 grams natural uranium in breeder reactors Nuclear and hydro electricity are expressed as the coal equivalent required to produce, at 33 per cent efficiency, the same amount of electricity. In other words, electricity produced by these sources is converted to its coal equivalent at the rate of 2660 kWh = 1 tonne coal.

Jan 1, 1978

The metals titanium and zirconium and their alloys occupy individually unique positions in the catalogue of metallic materials available for engineering applications. Because of the uniqueness of their usage in the aerospace industry, in the case of titanium, and in the nuclear industry, in the case of zirconium, the except- ional resistance of both the metals to the majority of corrosive media is often overlooked. The cost factor in the application of these more exotic metals has, in the past, been a major considerat- ion in the rejection of titanium and zirconium as constructional materials in areas of usage where their superior corrosion resistance strongly favoured them over more conventional metals and alloys. The cost differential, vis-a-vis austenitic stainless steels, for example, is not a trifling matter, being of the order of 6 : 1, when compared on a weight basis. However, if one considers the cost, for, say, sheet product on an area basis, the ratio is redgced to approximately 3.4:1. If one also takes into account the enhanced performance of the more expensive material and the sub- sequent increase in service life and decrease in plant down-time, the economics of the usage of materials such as titanium becomes much more attractive and, indeed, highly competitive,

Jan 1, 1969

By A D. Wulfse, C M. D Barton

Underground fractured aquifers in the Ernest Henry deposit are to a large extent controlled by deposit scale brittle structures. The underground mine has been subdivided into nine water zones based on hydrogeological characteristics, including conductivity and connectivity, within the mining areas bound by these structures. The nine water zones and the hydrological characteristics of the associated structures are utilised for risk assessing mine development and for targeting diamond drilling dewatering activities. Wireline and conventional underground diamond drilling techniques have been used throughout the network of underground aquifers with the aim of dewatering areas within the mining footprint. These dewatering drilling campaigns have historically been highly successful at lowering aquifer water levels throughout the underground workings. As part of recent mine expansion activities, diamond drilling has intersected high pressure (>507 psi), high temperature (>50°C) and high flow water (>3 L/sec) in as yet unconstrained underground aquifers. Groundwater is typically conducted through rubble and clay rich faults, further hampering progression of drilling. Drilling through fractured aquifers at depth presents both mine planning as well as safety challenges. Recent drill holes have been delayed or abandoned when aquifers hosting this high pressure, high flow water have been intersected, risking mine planning deadlines. Recent technological innovation developed to control groundwater outflows from the diamond drill hole whilst drilling has been trialled at the Ernest Henry Mine. This case study focuses on the utilisation of alternative drill methodologies to allow the current drilling campaign to continue without delay, whilst also improving safety conditions encountered on the drill site.

Mar 22, 2022

By McKay AD

The bulk of Australia's uranium resour- ces was delineated in the last 18 years when a total of $563 million (1984 dollar values) was spent on uranium exploration. Australia's share of the low-cost Reasonably Assured Re- sources in the World Outside the Centrally Planned Economies Area (WOCA) increased from 1.5% in 1967 to 29% by the end of 1984 and its share of the low-cost Estimated Additional Resources (Category I) then stood at 25%. As of December 1984, Australia's uranium resour- ces were estimated by the BMR to be: Cost range US$80/kg U (US$30/lb U301) Reasonably Assured Resources 463 000 t U Estimated Additional Resources(I) 251 000 t U Cost range US$80-130/kg U (US$30-50/lb U308) Reasonably Assured Resources 63 000 t U Estimated Additional Resources(I) 126 000 t U The increases in Australia's resources was sustained by a group of large and rela- tively high-grade deposits which were disco- vered during the period 1969 to 1975. Austra- lia's share of the low-cost resources was also enhanced by a contraction of WOCA's low-cost resource base due to escalation of production costs for smaller low-grade deposits. Most of Australia's uranium resources are contained in the Proterozoic unconformity- type deposits of the Alligator Rivers uranium field and the stratabound deposit at Olympic Dam on the Stuart Shelf. Most of the remain- der of Australia's uranium resources is con- tained in calcrete-type deposits. Less than 10% of Australia's uranium resources are in sandstone-type deposits. Total Australian production to the end of 1984 amounted to 26 241 t U, representing 3.4% of WOCA's cumulative production. Aus- tralia's share of WOCA's annual production has steadily increased from 1.3% in 1977 to 11.2% in 1984 (4390 t U). The increases in Austra- lian production took place in the face of reductions of production in WOCA countries, principally the US, from a record level of 43 988 t U in 1980 to about 39 000 t U in 1984. New low-cost production centres, mainly in Australia and Canada, have partly compen- sated the decline in US production. The Department of Resources and Energy (1985) reported that Australian exports of yellowcake are expected to reach 10 000 t U308 (8480 t U) by 1993/94, representing an in- crease of about 13% oer annum.

Jan 1, 1986

By R Brake

The Enterprise Mine (EM) is located at Mount Isa and is wholly owned by Mount Isa Mines Limited (MIM). This high-grade copper mine extends from about 1000 m below surface to almost 2000 m below surface. A recent $400 million upgrade has taken the operation from a production rate of 1.3 Mtpa to a capacity of 3.5 Mtpa. The effects of high surface ambient temperatures in summer, combined with the depth of the mine and high virgin rock temperatures results in heat stress in the working place that, without intervention, would exceed the levels that human physiology can withstand. It would also result in significant decreases in productivity and high accident rates even where work is possible. Moreover, with a very hot and deep mine, the needs of æegressÆ and entrapment of workers during a mine emergency must be carefully considered. Enterprise Mine has taken a æsystems approachÆ to the issue of working productively, healthily and safely in heat. This involves setting limits of thermal stress for workers, understanding productivity decrements when working in heat, establishing productive and healthy environmental targets, developing engineering solutions to meet these targets, creating a well-educated workforce with respect to working in heat and then developing health protocols to ensure workersÆ health is protected. Refrigeration must be added to the mine to provide acceptable and productive conditions underground. By the time the mine is commissioned in 2000, Enterprise mine will have an installed refrigeration capacity of in excess of 40 MW(R). The ventilation engineering principles proven over many years at the other Isa underground mines are tailored to æfloodingÆ the mine with air to remove the heat, which is the main contaminant. This principle will not work at the Enterprise Mine, for reasons discussed below. With the underlying ventilation principle no longer satisfactory, a complete review of the entire ventilation principles and engineering solutions was required for the Enterprise Mine.

Jan 1, 2000

By D Kilkenny

Underground contractors in the mining industry must be prepared to take a position at the forefront of innovation of equipment and work methods in order to maintain a competitive advantage over in-house operations and remain relevant. Innovative concepts such as split-feed development jumbos, high capacity trucks and loader guidance systems were implemented by contractors to stay ahead of ‘the pack’. All of these are now common across the industry.The demands of regular participation in competitive tendering coupled with aggressive fleet depreciation, means contractors tend to have more communication and opportunities to work with equipment suppliers than mine owners. Therefore, they are more likely to influence equipment design and product directions. They also have a unique opportunity to assist in trialling new concepts and technologies across a wide variety of operating conditions rather than being restricted to one mine.In addition, as a ‘guest’ on a mine site, mining contractors do not have the luxury of creating the environment for their preferred systems, rather they must have the capacity to adapt their technology to suit the offered environment at a particular mine. This leads to a pursuit of adaptive technologies that can be implemented selectively and seamlessly without excessive disturbance rather than ‘all-of-mine’ systems. These incremental innovations then become available for use across the mining industry where they can add value as ‘bolt-on systems’ to existing operations.Mining contractors, therefore, act as the bellwether for industry practices and equipment. However, in order to maintain their position they must engage industry stakeholders to deliver practical, innovative and cost-effective technologies that add value and result in an improved bottom line for all. This paper uses case study material to illustrate how the Byrnecut Group has approached innovation and how the theory of Disruptive Technology applies to underground mining innovation.CITATION:Kilkenny, D, 2017. Innovation in mining – a contractor’s role, in Proceedings 13th AusIMM Underground Operators’ Conference 2017, pp 59–68 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 16, 2017

Between 1966 and 1976, Australia moved from being a non-producer to a position of meeting more than ten per cent of world nickel demand. New mine developments beginning the early-1990s have the promise of more than doubling the country's world market share - from around eight per cent to perhaps close to 20 per cent. This new surge in activity - the so-called `second nickel boom' - has led to several developments which seem likely to have similar economic impacts to those of the late- 1960s and early-1970s. There are, however, some notable differences this time around. The impact of long distance commuting over the past 30 years has changed the regional development scenario. The gold industry is much stronger in Australia than it was in the late-1960s and this helps to place the importance of new nickel discoveries in a more realistic perspective. As potential players have jockeyed to complete feasibility studies and move into construction and production phases of new long-life mines, established suppliers clearly seem to be taking actions to discourage the newcomers. In what appears to be a classic oligipolistic market situation, the heightening of perceived entry barriers to the industry appears to be a particularly visible strategy undertaken. In the current scenario as well, greater vertical integration among producers appears a significant influence on market power.

Jan 1, 1996

In February 1995, Falconbridge Limited approved the construction of a nickel mining and milling facility on its Raglan property situated in the Nunavik region of northern Quebec, Canada. The construction period successfully terminated with the commissioning and start-up of the plant and concentrator in early-December 1997. The estimated life of the project is 20 years with an annual mining rate of 800 000 tonnes of ore, producing 21 000 tonnes of nickel per year. This paper discusses the subject of æRemote Mining in the Canadian ArcticÆ as it applies to the Raglan mine process and people. During the feasibility stage of the project, many assumptions were made which influenced the design and operating parameters of the facilities and the equipment. Transportation, communication, remote logistics techniques and standard industry practices required to support a æfly-in/fly-outÆ operation were reviewed and either adopted or rejected for use at Raglan. These assumptions were æmade to fitÆ the uniqueness of our planned operation. It was also acknowledged that many of them would ultimately impact on the people required to staff the operation following construction. Therefore, their suitability and applicability were examined from an economic, operational and human perspective. In a continuing effort to improve the quality of life for Raglan employees, as well as the economics of our mine operations, these assumptions are under constant review and scrutiny. There is no doubt that experiences gained, and willingly shared by other North American arctic mining operations, proved invaluable and are a big reason for RaglanÆs overall success thus far. The mining industry is being challenged technically to develop lower grade orebodies at the lowest possible cost. In addition to environmental constraints, serious social, political and moral questions are being asked and added to this list of challenges. Miners throughout the world must improve their operating standards and public image if we want to attract the best possible employees. Remote mining operations provide a unique opportunity to experiment with various human resource concepts as well as demonstrate the industryÆs commitment to environmental and community concerns.

Jan 1, 1998

The value of Australia's education services exports increased to over $15 billion dollars in 2009, placing education as the third overall export earner behind coal and iron ore; however there are concerns over the impact of emerging policies on the future of both the industry and the provision of mining education. Policies have impacts on the growing number of international rankings (or league tables) of mining jurisdictions and universities. A high position in such rankings might be used as a measure of perceived quality with benefit to those at the top and to the detriment to those lower down.    Top performing companies in the relatively new domain of sustainability have been shown to achieve better financial performance than their industry competitors, assisting them in attracting top quality committed staff, hence positioning themselves well for the future. The world's mining companies, jurisdictions and universities are now ranked with results in the public domain. It is argued as to the validity of the data or perceptions used in such rankings, but there is no doubt they are influential in determining the flow of dollars around the globe. By investing your pension fund assets in the shares of the top performing companies, by placing your exploration dollars in a country at the top of such a list of attractive jurisdictions, attending or recruiting from a University at the top of the rankings - risk must surely be reduced?   While savings and risk reduction can undoubtedly result from the introduction of new technologies developed through appropriate R&D (the other core activity of a university), the maintenance of a very high level of exploration and production performance through dedicated highly skilled staff every hour of every day quietly improves financial performance, while avoiding safety, environmental and/or community incidents (ie protects the 'triple bottom line'). As always risk reduction comes down to enabling quality people to do a quality job - through the actions of such people we can sustain the global mining industry and secure our social license to operate. However, there is global concern over where the numbers of such people, including those with the recently required skills in sustainability, are going to come from.   This presentation will discuss some of the complexity and interactions involved in the development of such rankings, the dangers inherent in their simple acceptance and use, plus indicate some of the directions mining educators might take to sustain and increase the supply of quality graduates to the global mining industry. This is an ABSTRACT ONLY. No paper was prepared for this presentation.

Jun 1, 2010

By Read T. A

PART 1The quantity of dust present and the methods used for suppression of dust in metalliferous mines has, in recent years, received considerable attention from mining engmeers in various parts of the world. Shortly after the publication of the General Report of the Miners' Phthisis Prevention Committee, South Africa, in 1916, the officers of the Broken Hill South Limited started investigations into the conditions of the dustiness of the air in the underground workings. As the methods used are not generally known in Australia, the writers are of the opinion that the present is an opportune time to place them before members of the Institute. A large amount of the subject matter of this paper has been drawn from the 1916 and 1919 reports of the Miners' Phthisis Prevention Committee, South Africa, the paper of Mr. Innes published in "The Chemical, Metallurgical and Mining Society of South Mrica"; also various articles appearing in the Journal of Industrial Hygiene, and the American Journal of Public Health. A great deal of research work into the cause, prevention and estimation of mine dust has been made by the Miners' Phthisis Prevention Committee of South Africa, and officials of the United States Bureau of Mines. The writers considered it advisable to begin the investigation at the South Mine with apparatus and methods developed by the South African Committee.Through the Australian agent of the Cape Explosives Company, inquiries were made preliminary to procuring the necessary apparatus for the determination of dust, from South Africa. The writers then learned that the older gravimetric method used by the Phthisis Prevention Committee was likely to be superseded by the konimeter...

Jan 1, 1922

By A M. Sardo, D E. Sinnett

This study uses the Q Method to examine how those living in former metal mining landscapes value this heritage and their preferences for the long-term management of mine waste. Such sites are often perceived as derelict or degraded, and of very little value. It is therefore assumed that their reuse, for example for development or recovery of metals, is likely to be beneficial. There are around 5,000 former metal mines in England and Wales, many of which are protected for their ecological, geological or cultural value. The Q Method is particularly suitable for issues where there is no consensus of opinion. We asked 38 residents of six mining areas in England and Wales to ‘sort’ a series of statements based on their resonance with the resident’s perspective; this is the Q sort. The statements covered a range of opinions of the mining legacy, its value and options for its management with a particular focus on the potential for metal recovery from the wastes. Analysis of the Q sorts revealed five perspectives on the mining heritage. All placed a high value on the cultural and ecological value of this heritage, however, they differed in their priorities for long-term management. For example, emphasis was placed on either nature conservation, cultural heritage, water quality or the opportunity for job creation through reworking the mines. Cutting across these themes there were also differing perspectives on the role of experts and local people in shaping the future management of the wastes. This research suggests that the views of local people are nuanced; they value their mining heritage but opinion is split on the most effective way to manage these sites especially where there is an impact on water quality.CITATION:Sinnett, D E and Sardo, A M, 2018. Former metal mining areas in England and Wales – local residents’ preferences for the management of wastes, in Proceedings Mine Waste and Tailings Stewardship Conference 2018, pp 126–134 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 23, 2018

By D Mather, H R. Asche

"In the civil tunnelling field, the use of tunnel boring machines (TBM) has now overtaken the use of conventional excavation methods (drill and blast / roadheader). This is due to a number of reasons, including the increasing availability and reliability of TBMs, the ability to deal with a wider range of face conditions, and the reduced excavation cost that TBMs can bring.Mining companies have spearheaded the advances in shaft boring by mechanised means, both in blind and raise boring. However, mining companies have been slower to adopt mechanised tunnelling.When contrasted with a conventional mining contract, there are good reasons why TBMs in mining applications are relatively rare. A conventional decline contract may have very little geotechnical information. The decline alignment can be subject to change as the tunnelling progresses. The infrastructure requirements are less for a conventional decline, and the sunk cost prior to excavation commencing is lower. Contract documents can be very simple.The history of TBM use in mining is reviewed and lessons are described. From the case histories and lessons learnt, the paper identifies ways that mining companies can maximise the potential benefit of TBM technology.We believe that despite the additional requirements for TBM declines, the cost and time advantage to mining companies is very attractive. The challenge is to recognise and to meet the requirements for success in a TBM drive to achieve the advantages of: faster advance rates reduced rock damage/overbreak reduced support requirements uniform muck characteristics greater personnel safety.From the case histories and lessons learnt, the paper identifies ways that mining companies can maximise the potential benefit of TBM technology.CITATION:Asche, H R and Mather, D, 2014. Use of ?tunnel boring machines in the mine environment, in Proceedings 15th Australasian Tunnelling Conference 2014, pp 655–662 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Sep 17, 2014

By A R. Bye

The mining industry is facing some key challenges that provide a compelling case for geometallurgy initiatives. Over the last 30 years, the average grade of Australian orebodies being mined has halved while the waste removed to access the minerals has more than doubled. In the last eight years, the industry’s energy consumption has increased 70 per cent while multi-factored productivity has fallen 24 per cent. The paper documents a broad range of industry case studies which demonstrate strategies for gaining value from geometallurgy.The mining industry constantly faces the key questions of how significant ore variability is on mine valuation and how would knowledge of the variability change the mining schedule, mine to mill design and operation. Using case studies the paper describes the methods used for incorporating mineral extraction attributes into orebody models and their technical integration into daily operation as well as mine planning optimisation. While pit optimisation from a fully attributed geometallurgical model highlights areas of opportunity and risk it is shown that during the scheduling phase of mine planning that significant value can be added. The benefits from these projects included reducing geotechnical and environmental risk, improving mine to mill performance, option analysis and quantified cash flow risk. There is growing acceptance within the minerals industry that ‘realistically assumed modifying factors’ defined by a competent person/s are not sufficient to mitigate the risk of funding mining ventures. Geometallurgy is moving away from factored ore reserves to data-rich block models providing reliable information for mining, metallurgical and environmental considerations.

Sep 5, 2011

By Hall G

The Mount Isa silver-lead-,zinc deposit possesses a number of features which sets it apart from usual occurrences of ores containing those metals. The deposit has been described in vario:us papers, but development upon deeper levels during the past two years has, yielded much information not hitherto published. Purpose of the present paper is to furnish a unified and coherent perspective by tracing briefly the full rock deformational and mineralization processes responsible for the ore deposition. The paper represents the outcome of ten years' organized geological effort at Mount Isa. Information contained in it supersedes that previously published.A bibliography of published articles relating to Mount Isa ore deposition is appended. In preparing the present paper previously published data have been drawn upon freely wherever applicable. The authors are especially indebted to the papers by Grondijs and Schouten, and by O'Malley and McGhie, which present results of systematic microscope studies of thin and polished sections from comprehensive suites of Mount Isa ore.

Jan 1, 1942

By M E. Watson

Minimising dilution and ore loss is an important part of ensuring profitability of a gold mining operation. White Foil open pit gold deposit is a low-grade deposit and therefore managing ore quality is a high priority. Ground movement through blasting can displace ore and waste boundaries up to 10 m from their in situ location and therefore requires stringent ore movement monitoring and adjustment. There are currently only two options for monitoring blast movement – utilising visual targets (commonly lengths of polypipe) but this has widely been replaced by electronic blast movement monitors (or BMM). Regardless of the technology used, the basic principle is to compare the pre- and post-blast locations of the targets to determine the movement of the rock mass during blasting, which is then used to determine the final location of ore and waste boundaries.The Blast Movement Technologies (BMT) BMM system has been used at White Foil since June 2014. The system has been effective and reliable during that time; however, the annual cost of using the BMM system is greater than other monitoring alternatives. As such, the open pit geology team conducted a study comparing the BMM system against the conventional polypipe technique. The objective was to quantify the profit and loss that would occur based on the ore block transformations from both methods. Eight blasts were selected where polypipes were installed in additional holes adjacent to the BMM monitoring holes. The resulting movement vectors from the respective methods were used to create post-blast ore blocks by transforming the in situ ore blocks. While polypipe is a cheaper alternative, the BMM system tracks ore and waste boundaries more effectively resulting in better quality control, enhanced ability to minimise dilution and ore loss thus maximising profit. For these eight blasts, it is calculated that the BMM system resulted in A$664 978 extra profit through a reduction of ore loss. The total cost of a yearly BMM package was recovered in the first two blasts of this study. The primary reason for the difference is that polypipe had a poor recovery rate of 32 per cent compared with 92 per cent for BMM at White Foil. Therefore, the data used to transform the ore blocks was less representative, resulting in inaccurate post-blast ore block boundaries when using polypipe.CITATION:Watson, M E, 2017. Blast movement monitors or polypipe? A study into cost-effective blast movement monitoring at White Foil gold mine, Western Australia, in Proceedings Tenth International Mining Geology Conference 2017, pp 433–440 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 20, 2017

In high stress mining environments, production drill rigs are often employed for rapid drilling of boreholes for systematic cable bolting. One outcome of this drilling method is the need for larger boreholes than would normally be drilled using customised bolting machines, such as the Tamrock Cabolter. Past laboratory studies indicate that, under ideal grouting conditions, borehole diameter has little effect on the pull-out strength of cable bolts with high bulb densities. However, the sensitivity of pull-out strength to large boreholes and less ideal variations of grout strength have not been investigated. To explore these sensitivities, industry standard single embedment tests were conducted on large boreholes simulated using steel pipes. Four borehole diameters were tested, namely: 42 mm, 52 mm, 81 mm and 106 mm. In each case the grout water to cement ratio was varied from 0.35 to 0.45 and two cable bolt bulb spacings were considered, namely: one and three bulbs per metre. The results indicate that, across the range of parameters tested, variations in peak axial load at failure corresponding to changes in hole diameter were statistically insignificant.

Nov 25, 2010

State ownership of minerals results in domestic legislation regulating mining operations. The mining industry today is dominated by a number of transnational companies, each subject to internal and external pressures for a more responsible approach to resource management. Thirty to 40 major companies are responsible for the bulk of the worldÆs mineral production with the balance coming from state-owned, second tier and junior companies and from artisanal miners.Mining companies operating within competitive commercial environments formerly focussed on mineral production. Companies worked to standards and expectations then current which largely failed to recognise the impact of mining activities on community interests. The mining industry acquired a reputation for arrogance, and for placing profitability ahead of issues considered equally or more important by local communities. Current perceptions continue to reflect disquiet about industry attitudes towards traditional land-owners and access to their lands, to environmental contamination, handling and storage of waste materials, utilisation of water and electricity, and to rehabilitation of worked out areas. Major international mining companies concerned at continuing criticism sponsored a series of initiatives with the objective of providing guidance on working harmoniously within the community. Industry commissioned studies, performed through the agency of disinterested parties, resulted in May 2002, in a Declaration being issued at an International Conference in Toronto. The Declaration was based on, but did not reflect all of the recommendations of the MMSD Report, æBreaking New GroundÆ.This paper considers whether benefits would result from the negotiation of a legally binding and enforceable international protocol encompassing the objectives of the MMSD report or the Toronto Declaration. It attempts to identify the problems associated with implementing and enforcing international mining law, should it be introduced. Aspects of mining operations having cover under customary international law are reviewed, as are rights, obligations and remedies for breaches of national mining law. Conclusions are drawn based on established procedures relating to implementing international agreements. The continuing ability of mining companies to operate within communities will result from each satisfying the communityÆs expectations rather than by complying with largely unenforceable legislation.

Jan 1, 2004

By Gillies A. D S

The active history of foreign investment in the mining industry has resulted in Australia emerging as a major world producer of a range of mineral commodities. The current contribution to the national economy represented by mineral production and export revenues would not have occurred without both capital and expertise provided by foreign investors in the past. The initial foreign investment has led to the formation of Australian majority owned and controlled multi-national mining groups such as BHP Limited, CRA Limited and MIM Holdings Limited. These Australian companies, and others, are playing a significant part as foreign investors in the mining industries of Papua New Guinea (PNG) and Indonesia. The study examines issues of importance in foreign investment in each of the countries. It concludes that in Indonesia, the nationalisation of the Dutch mining industry in 1957 did much to deter foreign investment. The remarkable degree of policy stability brought about by the Contract of Works system since 1967 has gone a long way to restoring that confidence. The level of investment in the Indonesian mining sector is steadily increasing. Its attraction to Australian investors is a combination of policy stability, favourable fiscal terms, geological prospectivity for a range of commodities and proximity to Asian markets to the north. PNG has a stable policy regime which until recently has been free from political interference at the administrative level. As such, investors were developing confidence in the system and investment was progressively increasing as evidenced by growing exploration expenditures up to 1988. The 1989 Bougainville revolution caused a re-assessment of PNG's investment and country risk. The recent Mt Kare incident has further raised concerns over the government's ability to guarantee internal security. Foreign investors are faced with weighing concerns with the risks of operation in PNG against the undoubted geological prospectivity of the country. The fiscal regimes of Australia, Indonesia and PNG were compared by means of a simulated open pit gold mine in each country. The effect of taxation is examined by reference to the relative change in project internal rates of return (IRR). The comparison of the relative differences between pre-tax and post-tax IRRs provides a measure of the relative attractiveness of each fiscal regime.

Jan 1, 1994