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By J Savage, A Crawford, M Doyle, N McNaughton, T G. Blenkinsop

Area selection criteria for gold exploration have historically highlighted the low prospectivity of high-metamorphic grade terranes relative to regions with lower metamorphic grades. The Tropicana gold project, Western Australia, is a rare example of a major greenfields gold discovery in Archean mid-amphibolite to granulite-facies gneissic rocks that have experienced widespread recrystallisation and partial melting.The project, located on the tectonically reworked eastern margin of the Yilgarn Craton, is part of the Tropicana Joint Venture, which is 70 per cent owned by AngloGold Ashanti Australia (manager) and 30 per cent by Independence Group NL. Construction of the mine commenced in the June quarter of 2011 and first gold pour from open pit mining is anticipated in the December quarter of 2013. The approved project will have a ten-year mine life and in the first three years of operation, gold production will be between 470 000 - 490 000 oz/a at a cash cost of A$590 - A$630/oz.Reserves as at 31 December 2011 total 56.4 Mt grading 2.16 g/t for 3.91 Moz of gold. The mineral resource, as of 30 December 2012, has grown to 7.89 Moz of contained gold, including Inferred Resources of 11.9 Mt at 2.83 g/t for 1.08 Moz.Economic gold mineralisation post-dates peak metamorphism and is interpreted as younger in age (ca. 2500 Ma) than other gold deposits in the Yilgarn Craton on the basis of structural and geochronological constraints. Mineralisation is genetically related to an imbricate thrust stack that records a prolonged history of reactivation during the Proterozoic era. Gold mineralisation formed from higher temperature (>350¦C) silica-undersaturated fluids that preferentially migrated though a favourable intensely potassium metasomatised zone. Permeability created during brittle fragmentation was accompanied by replacement of mafic metamorphic minerals, and synchronous partitioning of strain into pervasively biotite-sericite-pyrite-altered stylolites and shear planes that bound more competent lithons.CITATION:Doyle, M, Savage, J, Blenkinsop, T G, Crawford, A and McNaughton, N, 2013. Tropicana - unravelling the complexity of a +6 million ounce gold deposit hosted in granulite facies metamorphic rocks, in Proceedings World Gold 2013 , pp 87-94 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 26, 2013

There exist many formulae for designing coal pillars. However, when applied to a given set of mining parameters, they lead to different pillar sizes and factors of safety. From the subsidence point of view, the pillars designed as protection pillars not only have to be stable, but also have to limit subsidence over them to a level acceptable to the structure being protected. The subsidence over a pillar of given width to height ratio depends upon the mining depth. A pillar may be stable, but the subsidence over it may be quite large and unacceptable for the structure. In many cases even though pillars may yield, they support the undermined strata and reduce surface subsidence. In addition, the yielding pillars eliminate peaks and troughs in the surface subsidence profile and reduce ground strains. In a given situation, whether a pillar yields or not depends primarily upon its width in relation to mining depth.

Jan 1, 1992

By J Seppelt, G S. Lane, E Wang

Newcrest’s Cadia concentrator operated from 1998 to 2012 with a traditional SABC grinding circuit treating Cadia open pit ore. The Cadia comminution circuit was well characterised through surveys and data that are available in the public domain, and became a benchmark standard for the industry and practitioners modelling large SAG mill based circuits. In 2012, the HPGR-based crushing circuit was introduced in front of the SAG mill to increase throughput when treating the Cadia East ore that was derived from an underground block cave. This ore was expected to be more competent and have a coarser run-of-mine size distribution.Numerous previous papers have described the design and commissioning of the Cadia HPGR-based circuit.This paper describes the improvement in comminution energy consumption resulting from the introduction of the HPGR, including identifying the impact of process complexity and an increase in ancillary energy consumption for conveyors, screening, and crushing.CITATION:Lane, G S, Seppelt, J and Wang, E, 2018. Quantifying the energy efficiency transformation at Cadia due to HPGR crushing, in Proceedings 14th AusIMM Mill Operators' Conference 2018, pp 141–152 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 29, 2018

By S McKnight, L Koroznikova, S Hall

Mineral sands represent an important new resource being developed in the Murray Basin, including parts of western Victoria. This paper will outline a simple methodology for mineral sands characterisation, developed as part of the AMIRA-managed project P777 æThe Development of Heavy Suspension Techniques for High Density Separations (Replacement of ClericiÆs Solution)Æ. This project is currently sponsored by three multinational mining companies (De Beers Consolidated Mines, Iluka Resources Limited and Rio Tinto Limited) and is developing an innovative laboratory mineral characterisation procedure that will allow the replacement of the currently employed highly-toxic chemicals.Mineral sand resources almost always contain more than one valuable (and relatively heavy) mineral. Titanium minerals are found with a large range of titanium contents, giving rise to density variation and often subjective mineralogical descriptions. Companies tend to rely on laboratory heavy liquid separation in the evaluation of samples arising from exploration, mining or metallurgical processes. Unfortunately, there are only a limited number of high density (æheavyÆ) liquids and these tend to be more toxic as their density increases. Low-toxicity inorganic solutions, based on tungsten compounds, have been developed that can be utilised at relative densities (RD) up to 3.0. However, beyond this value currently only organic liquids can be used. Diiodomethane (methylene iodide) having a relative density of 3.31 is commonly used; however, this presents significant health and safety hazards. Mixtures of thallium formate and thallium malonate were found in the early 1900s by Clerici to provide liquids having specific gravities between 4.0 and 5.0, hence æClericiÆs solutionÆ. For the characterisation of the heavy components of mineral sand deposits (eg anatase sg 3.9, rutile sg 4.2, ilmenite sg 4.4 û 4.7 and zircon sg 4.6 û 4.8) there is currently no heavy liquid alternative to ClericiÆs solution. ClericiÆs solution is highly toxic and testing is now conducted by very few laboratories worldwide with costs reflecting the chemical costs (though extensive efforts are made to recover and reuse the liquid, plus the requirement of its removal from the mineral samples), the infrastructure costs and health and safety regimes (eg blood testing of exposed staff, inventory management). A simple laboratory technique of density fractionation is being developed, employing suspensions of fine tungsten carbide particles in lithium heteropolytungstate (LST) solutions, that can replace ClericiÆs solution in the evaluation of fine mineral sands samples (eg -250+150 microns). The developing methodology that can achieve low-cost, low-toxic separations at relative densities above 5.0 will be outlined and the comparison of results with ClericiÆs solution presented.

Jan 1, 2006

Quay Magnesium Limited (QMG) listed on the Australian Stock Exchange in late September 2004 having raised approximately A$30 million with the object of designing, constructing, commissioning and operating a 15 000 tpa magnesium alloy production facility in Nanjing, China. Site construction commenced in February 2005, with installation of all major components completed by the end of October 2005. Hot commissioning was simultaneously commenced with the final stages of installation, leading to the first stage of continuous ingot casting by mid November 2005. Since that time, ramp-up to the name plate capacity has been undertaken. This presentation highlights some of the more significant technical and logistical hurdles that have had to be overcome in order to meet the high quality product specifications required by a range of QMG customers.

Jan 1, 2006

By M Ind, B Usher

Environmental regulators are increasingly adopting risk-based approaches to protect aquatic ecosystems. The Australian and New Zealand Environment and Conservation Council (ANZECC) and the Agriculture and Resource Management Council of Australia and New Zealand (ARMCANZ) (2000) introduced a risk-based approach to water quality guidelines that use decision frameworks to adapt water quality guidelines to local environmental conditions. Environmental quality objectives are no longer a simple ‘pass or fail’ number such as restricting total suspended solids (TSS) concentration to a specified limit for a particular rainfall event. This approach ignores spatial and temporal variability and the complexity of aquatic ecosystems. The risk-based approach establishes levels where adverse effects may occur. If these objectives are not met, further risk-based investigation is undertaken to assess the potential impact to the ecosystem. Klohn Crippen Berger (KCB) developed a dynamic simulation to predict the variability of sediment discharges, which is applicable for risk-based impact assessment of aquatic ecosystems. The application of the methodology over the life of a mine site is illustrated using a proposed South Pacific mine.The site location is in extremely rugged terrain with a high annual rainfall of approximately 4.7 m. There were two major sediment ponds proposed to reduce sediment discharges. A sediment and hydrology model was developed in Goldsim to provide daily estimates of run-off flows and sediment concentrations. A modified algorithm based on the Australian water balance model was created and incorporated into the Goldsim model and calibrated using recorded field data.The sediment module was developed based on a Revised Universal Soil Loss Equation (RUSLE) assessment, an annual prediction of soil loss over a catchment. A land-use type erosion vector was developed for different land-use types and for each of the subcatchments, a subcatchment erodibility vector was calculated. This vector and the daily rainfall erosivity factor were used to estimate the daily soil loss. The estimated soil loss and the modelled run-off yielded predictions of daily sediment concentrations. Finally, a sediment settling module was used to predict the daily efficiency of the sediment ponds and hence discharged sediment concentrations.The results of this modelling form the first part of a quantitative risk-based assessment into suspended solids impacts. The second part is the assessment of the effects of these predicted TSS concentrations on aquatic ecology. As part of the feedback-loop required in a risk management framework, if the environmental quality objectives are not met then further management decisions and actions may be required to reduce the risks presented by suspended solids. This may include modifications to: the mine-development plan; construction techniques and scheduling; processing techniques; rehabilitation strategies; or hard-engineering solutions such as sediment basins or flocculation.The Goldsim water-balance model provides a quick and efficient method of testing potential remedial actions on predicted sediment loads and concentrations. In combination with a cost-benefit assessment, options for reducing sediment releases from the mine site can be effectively and quantitatively compared thereby providing mine operators with a basis for decision-making. Regulators can also be satisfied that potential impacts to aquatic ecology have been comprehensively assessed and the necessary management decisions have been initiated to limit risk to the environment.CITATION:Ind, M and Usher, B, ?2014. A dynamic sediment simulation to predict the variability of suspended solids concentrations over life-of-mine for application to a risk-based environmental assessment, in Proceedings Life-of-Mine 2014 , pp 191–204 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 16, 2014

By U König

The use of high speed detectors made X-ray diffraction (XRD) an important tool for quality and process control in the mining industries. Besides knowledge about the mineralogy of a sample it provides useful information in terms of quantification of the crystalline phases and the amorphous content. Cluster analysis of XRD data can facilitate multi-dimensional mapping of ore deposits and drill cores, identifying regions of favourable mineral compositions. The studies of this paper demonstrate how XRD and data clustering can be used for grade control, process optimisation and quality control of iron ores and iron ore sinters. These new developments have an enormous potential as an inexpensive, reliable tool, useful in the characterisation of iron and sinter materials implemented in an industrial environment.

Jul 11, 2011

When I was first asked to give a paper on work-life balance in the mining industry I was both excited and aware of the incongruity of my position. I have never worked in mining operations nor have I had any experience that approximates the on-site lifestyle. IÆm not really an adventurer or a traveller, I prefer writing and research to hands-on activities and IÆve never worked further than twenty minutes away from home. The perspective I offer is thus largely an objective one. I say largely since I grew up in a family where my parents work arrangements involved long-distance commuting; my dad continues to work FIFO at a coalmine in Blackwater until this day. Perhaps my tortoise-like existence is a rebellion against his flighty movements. The analysis I will be presenting today draws together a variety of sources, from member anecdotes and research on FIFO and work-life balance to the popular philosophy writings of a bald Englishman with a French name. I am speaking of the famous writer, Alain de Botton, whose television show æThe Consolations of PhilosophyÆ you may have seen on the ABC. Work-life balance is a term that gets a lot of mileage in corporate brochures and at breakfast seminars. But like many terms that get bandied around in the human resources circuit, from æteam synergyÆ to æperformance optimisationÆ, I am frequently perplexed as to what it actually means. Corporate websites are at pains to emphasise the high priority that they place on the needs of the whole person. Yet in terms of substantive content, a commitment to work-life balance often seems to translate into little more than the option to take a few morning yoga classes in exchange for working a seventy-hour week. As extended work hours have taken their toll, leading to high attrition of professionals across all industries, employers are increasingly expending resources to discover just what lies behind this buzz word. The challenge for companies is to find meaningful strategies to help employees better integrate different aspects of their lives in a new era of work, as employees are sending the message that they are not willing to play work, social life and leisure off against each other in a zero sum game.

Jan 1, 2005

The Yabulu refinery of Queensland Nickel Pty Lld near Townsville now imports more than three million wet tonnes per year of nickel laterite ore from New Caledonia and Indonesia, making it the largest importer of any commodity in Australia. The project has illustrated that importing untreated bulk ore and re-exporting high value products makes good economic sense for the company and the nation.The economics of this exercise were considerably enhanced in 1994 by changing the project's principal product from nickel-oxide sinter to refined high-purity nickel metal. It is one of the few operations in the world where nickel ore is transformed to nickel metal at a single site.Several novel technological processes were developed at Yabulu and incorporated into the refinery to allow this product transition to occur. By utilising internally developed technology the new processes were installed at a capital cost of less than $10 million. It is unique for a large nickel producer to change completely the quality of its entire product range many years after the plant was constructed and considerable attention to marketing the new products has been required.The changes have meant that the project is no longer limited to selling lower-value oxide sinter to a relatively small number of large stainless steel mills. In the past year sales of the new high purity nickel metal products have expanded to include a broad range of international customers in the special alloy, foundry and chemical industries.

Jan 1, 1995

By G J JAMESON

The flotation cell has undergone a number of changes since the process was first introduced in Broken Hill in the early years of this century. The development of the mechanical flotation cell is reviewed, followed by a discussion of more recent developments such as the flotation column, the air-sparged hydrocyclone, the Wemco-Leeds cell, the Bahr and Deister columns and the Jameson cell.

Jan 1, 1992

One of the responsibilities of the Melbourne and Metropolitan Board of Works is to provide a sewerage system for the metropolis of Melbourne which now contains over 2.5 million people. In providing this sewerage system it was necessary for the Board to embark on a large tunnelling programme some 20 years ago. As a result of this extensive tunnel construction programme, tunnel boring machines and shaft sinking methods have been developed to cope with the soft ground and soft to medium rock found in the southern and eastern areas of Melbourne where the majority of the recent tunnelling has been carried out. While in the last few years radical changes in construction methods have not been made, development has continued and improvements have been made, which have enabled the Board to extend the limits of the ground conditions in which it can efficiently construct shafts and also tunnels with boring Machines.

Jan 1, 1976

By M Costa, L Polizzi

Process optimisation and continuous improvement are usually acknowledged when making a process more effective, efficient and transparent. During the last few decades, thousands of companies around the world have used total quality concepts in order to establish a continuous improvement process in their companies. Typically these companies apply some kind of Kaizen-type tools and expect results in the short term; however, the great majority of companies are poorly implementing these continuous improvement programs.Usually the most common reasons for failure of the program are lack of commitment from leaders, lack of discipline and engagement from the team to follow process and lack of clear targets for the program. When the results do not come at the expected timeline, it is common to simply drop the current process and apply a different approach from another company or consulting firm.This paper will explore some successful cases of companies that have invested time and effort to establish a reliable and sustainable process of continuous improvement. The focus will be case studies of mines and smelters around the world that use the plan–do–check–act (PDCA) cycle to increase productivity with the best services and lowest costs. The main tools and processes used by these companies will be discussed, as well as results achieved.CITATION:Costa, M and Polizzi, L, 2014. Introducing and sustaining a continuous improvement program in mines and smelters, in Proceedings 12th AusIMM Mill Operators’ Conference 2014 , pp 55–62 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 1, 2014

At the outset I want to thank you for inviting a representative of the Chamber of Mines of South Africa to address you on the subject of mining and its future at this, the 13th Congress of the Council of Mining and Metallurgical Institutions. It is indeed a pleasure and an honour to be here. As many of you will recall, four years ago I, as the then President of the South African Institute of Mining and Metallurgy, had the privilege of hosting and welcoming you to the 12th Congress, the third such congress hosted by South Africa. The late Sir Ernest Oppenheimer, President of the 1930 Congress - the first to be held in South Africa - in his opening address foresaw the mining industry as "the most potent factor in spreading the benefits of civilisation over the sub-continent." We have come a long way since those halcyon days but, as I noted four years ago, it still remains true that mines have been, and will continue to be, the missionaries of development in many, if not most, of the Third World countries. I have been asked to address you on the subject of "mining" and to let my imagination roam widely so that delegates can leave the congress with a broader vision than they brought on arrival. It is a tall order and in my attempt to fulfil it I ask you to cast your minds back 120 years to a sultry, rustic day when the first diamond was discovered in South Africa at the now famous town of Kimberley. At that time the South African economy, predominantly pastoral, was still at subsistence level. Almost overnight the ensuing diamond rush turned the then British- owned northern Cape Colony's semi-desert scene into a hive of mining activity, every prospector bent on making his instant fortune. It was very little different, I am sure, to the gold rushes that hit California in 18+8, Australia in 1851, New Zealand in the 1860s. and the Yukon in the 1890s.

Jan 1, 1986

By N Guresin, R Dunne, S Blanco

This paper presents the results of research work conducted to assess if aqueous solutions of sulfur dioxide (SO2) can be used to treat roaster calcine leach residues such that recovery of gold in this material can be achieved with subsequent application of the thiocyanate (SCN-) leaching system. The project is mainly aimed at assessing an alternative use for sulfur dioxide gas generated during flotation concentrate roasting. The calcine leach residue sample used in the study contained 2.56 g/t gold. The reason for this high level of residual gold is thought to be due to gold surface passivation by thin iron oxide films, presence of gold in solid solution with refractory iron oxides and encapsulation of gold in the structure of these iron oxides.The study was conducted in three stages. The first stage was the characterisation of a sample from a roaster calcine leach residue. The second stage in the project was a set of leaching tests to assess the feasibility of using aqueous solutions of sulfur dioxide to reductively dissolve refractory iron oxide mineral phases contained in the calcine. The final objective was to assess the efficiency of thiocyanate, a gold complexing ligand stable under acidic and oxidative conditions, to extract gold liberated during sulfur dioxide leaching.The study showed that the reductive sulfur dioxide treatment of the calcine leach residues followed by oxidative thiocyanate leaching to extract gold was not a particularly efficient process as only around 20 per cent gold could be extracted. Leaching the calcine residues by any of these systems separately also extracted the same amount of gold (12 - 14 per cent) implying that irrespective of the solution potential, the acidity helps dissolution of gold encapsulating minerals, mostly hematite, but at a very slow rate. The findings on the topic in the literature and during this study show the requirement for further technical investigations and economical analyses on two cases. The first case is to roast gold concentrates to produce magnetite rather than hematite followed by sulfur dioxide and thiocyanate leaching of magnetite containing calcines. The second case is to apply a magnetic concentration process to conventional roast-cyanidation calcine residues to produce a gold-rich magnetite concentrate that can be further treated with sulfur dioxide followed by thiocyanate leaching.For both cases, the best evaluation of the sulfur dioxide leach system in extracting residual gold from calcine leach residues will require a detailed economic analysis to find out the balance between the value of the gold recovered and the loss of revenue from acid production. There are a number of roasters that do not produce acid. In these cases, a portion of the unwanted sulfur dioxide gas can be used to recover gold in magnetite containing calcines as an economic incentive.CITATION:Guresin, N, Blanco, S and Dunne, R, 2013. Leaching roaster calcine leach residues with aqueous solutions of sulfur dioxide and thiocyanate, in Proceedings World Gold 2013 , pp 129-136 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 26, 2013

By Gillies A. D S

Rail, port and shipping charges represent 30 to 50 per cent of landed costs for Australian coal mines selling to Asia. This proportion is higher for sales to Europe, yet it is in Europe where Australian producers are aiming for increased market share. The landed cost of coal to the international customer is the key parameter which determines market competitiveness. The objective of this study is to examine Australian export coal competitiveness in terms of transport distance. The approach used examines world coking coal and steaming coal production and the transport distances between major exporting regions and importing countries. Reference is made to the importance of land transport costs and a comparative approach for emphasising the relative magnitude of this factor is developed. Models developed are examined in terms of Australia's exports and a conclusion is reached that a reduction in rail freight costs would be an effective measure for improving the competitiveness of Australia's coal industry.

Jan 1, 1994

By I Sucholutsky, D M. First, D Mogilny, F Yusufali

Machine learning is creating value in all facets of the mining industry, from exploration to production. The authors provide an accessible, high-level introduction to artificial intelligence (AI), machine learning (ML), and deep learning (DL); the latter being widely recognised as one of the most powerful forms of ML. In particular, the authors will introduce deep learning models known as convolutional neural networks (CNNs), how they are applied, and the economic considerations necessary for determining when DL may be the right solution to de-risking complex block modelling problems. The authors present preliminary results from the mineral resource modelling study of the Jundee orogenic gold deposit, Yandal belt/gold province, Western Australia. The primary goal was to identify the direction and location of the narrow gold veins more accurately and demonstrate how non-linearly correlated elements are used as direct inputs to the resource model to assist with the target element’s grade prediction. This demonstrates that: (1) existing techniques for finding correlations between assayed elements do not adequately reflect the complex geology of the asset, (2) nonlinear correlations that are difficult to model as simple mathematical functions are representative of geological patterns in a deposit, and (3) non-linearly correlated assayed data, fed as inputs, increase the performance of the resource model as reconciled through blind tests. To conclude, the authors hypothesise that the patterns represented by the DL block models may be revealing the results of overprinting geological processes that generated mineral deposits. For example, the primary hydrothermal processes that deposited metals created depositional patterns that become particularly complex as a result of being overprinted, in part or in whole, by secondary physicochemical processes. This may explain why non-linear geochemical relationships have the capacity to generate more accurate block models of mineral deposits.

May 24, 2023

By Y Cao, J C. Tien

Occupational health and safety is essential in modern mining workplaces and in China it is often not given enough emphasis due to a lack of knowledge and/or appreciation. Although many health and safety regulations have been passed over the years, serious and relevant laws and regulations on mine health and safety are of recent history (since 2002), the level of stringent enforcement is still inconsistent and accurate field data are scant and not readily available. As of year-end 2006 there were 676 562 recorded cases of occupational diseases in China, of which 616 442 or 91 per cent were miners’ pneumoconiosis. Of these, 146 195 (23 per cent) have died, and an average of 10 000 new cases were added every year between 1991 and 2006. Another report shows that 93.18 per cent of miners have never had a contract with their companies, which means their cases were not even part of China’s official statistics. This study attempts to examine the prevalence of occupational diseases in the Chinese mining industry during 2000–2013, compiled from government annual reports and academic studies. The research will review the correlational analysis among occupational diseases, ventilation practices, protection devices and legislation.CITATION:Cao, Y and Tien, J C, 2015. Occupational diseases in China, with the emphasis on its occurrence in Chinese mine workers, in Proceedings The Australian Mine Ventilation Conference, pp 155–160 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 31, 2015

By L M. Zhang, X Y. Li

Surface displacements are routinely monitored at multiple points during slope excavation. The monitoring data reveals the safety status of the slope under current loading conditions. They can be used to enhance the prediction of the future performance of the slope by reducing the uncertainties of the prediction model and its model parameters. In a multistage excavation, the observed displacements in the current stage can be used to update the prediction of the displacements in subsequent stages. Besides, due to the spatial correlation of the slope parameters, the prediction of the displacement at one location can also be updated using the monitored displacements at adjacent locations. This study aims to develop a multistep updating method to enhance the prediction of the future performance of the slope using time-series monitoring data at multiple points. This method integrates the theoretical computational model with observational evidence. It considers the inherent uncertainty of the slope, model uncertainty and measurement uncertainty. With more monitoring information being incorporated, the prediction becomes closer to the actual performance of the slope. A case study of a multistage excavation of an extremely high rock slope in south-west China is presented for illustration.CITATION:Li, X Y and Zhang, L M, 2014. Better prediction of performance of a slope using time-series monitoring data at multiple points in a multistep excavation, in Proceedings AusRock 2014: Third Australasian Ground Control in Mining Conference , pp 183–188 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 5, 2014

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

By Bell I. F

In 1985, ZC Mines (now Pasminco South) had been unprofitable for some years due to a combination of high operating costs, low metal prices, low head grade and an aging and inadequate mining infrastructure. However, the resource of metal in the ground was still of world class, even after some 80 years of mining. A major study, which was to be of two years duration, was therefore commenced to establish a practical and profitable long term mining strategy and to cost the infrastructure options needed for its support and thus form the justification for a capital expenditure program to take the mine profitably into the 21st century and its second century of operation. This paper discusses the rationale behind the methodology adopted and the nature of the results achieved in one aspect of the study - the determination of the mineable resource and the relationship between the head grade/quantity of the economically mineable resource and the variables of cut-off grade, cost structure, annual production rate and metal prices/exchange rates. The basis of the study was the designing of some 5000 scopes to mine out the entire resource for a range of cut- off grades and the assembly of the detailed physical data thus obtained in a stope-by-stope data base for financial and other analysis. Those scopes which were shown to be economically mineable were then scheduled for two optimum annual production/cut-off grade/metal price combinations to provide life-of-mine cost and value of production cash flows.

Jan 1, 1992