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By H J. J Boshoff

Mine closure planning integrated into life-of-mine (LOM) planning during the operational phase consists of many subcategories. One of these subcategories that needs to be fully integrated into the LOM planning is that of water management planning. Issues arise when mine water management infrastructure, which is required post-mine closure, is only considered closer to the end of LOM. Once the mine is closed monitoring is focused on water quality as an indicator of closure performance, hence inadequate upfront post-mining water management planning or integration into operations will result in environmental harm. The lack of considering post-mining water management is not uncommon in LOM planning. Poor mine site water management and planning are a wide reaching problem for the mining industry. Numerous active mines have been issued with environmental notices and penalties for contaminated water discharge; including issues with abandoned mines now being cared for by governments all over the world.Mitigating sources of water contamination caused by existing and closed mine sites that are leaching pollutants might be impractical, due to inaccessibility to the contaminants or final landform topography. The opportunity to consider and introduce post-closure required mine water management infrastructure is lost once the waste facilities are constructed. Mitigating contamination is made more problematic with mines located in remote areas, serviced by dedicated roads, water supply, electrical supply, etc. It is expected that these services will be decommissioned or drastically reduced, once closure is reached making remedial work much harder. Inadequate planning, to ensure access and easily maintainable water management infrastructure, could lead to erosion and contamination going unnoticed. There are numerous examples of poor mine water management practices in Africa, Asia, Australia, South and North America. In the United States more than 23 000 km of streams are affected by pollution sourced from some 50 000 abandoned or mature mine sites (DeGraff, 2007).CITATION:Boshoff, H J J, ?2014. Inadequate water management planning resulting in long-term closure liabilities, in Proceedings Life-of-Mine 2014 , pp 233–246 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 16, 2014

By T Trott, G Lumley

"The mining industry suffers from a shortage of professional and other workers. Research and analysis has demonstrated a close correlation between high performance in productivity, maintenance and safety. There is also a significant correlation between engagement and performance. It is the hypothesis of the authors that mines can use a strategy of establishing themselves as a high-performance mine to attract and retain high caliber professional people: step 1 is to become best practice in equipment performance (productivity, maintenance and safety) step 2 is to brand the mine as æbest practiceÆ by sharing what has been confidential performance and outcome information with the general industry.Previous research has shown that many professional people are attracted by the prospect of a high achieving site because of the learnings and the support for continually doing better. In addition, a link has been established in previous research between productivity and safety. Operators and drivers are attracted to sites which have fewer dangerous people operating or driving. Good management delivers exceptional performance and a work site which high caliber managers and operational personnel people want to work at. The strategy requires commitment and proper execution but it can work. The strategy needs a specific approach and this paper will discuss this. A case study is provided from a mine which over a nine month period increased dragline performance by 15 per cent and reduced stress on the boom by 30 per cent. This mine paid the employees (professional and operational) $25 000/a less than the major mines but the operators and professional people would not leave; in fact, people were happy to be paid less to work there.CITATION:Lumley, G and Trott, T, 2012. Using best practice operations as a strategy for attracting and retaining professional people, in Proceedings International Mine Management 2012, pp 35-52 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Nov 20, 2012

By R Wolff

One critical factor in open pit mining projects is the estimation of the recoverable reserves. The reason for this is that at the valuation stage there is a lack of information about future metal prices and production costs. Consequently, the estimation of the recoverable reserves needs to be done based on a fixed break-even cut-off grade (BECG), in which fixed expected metal prices and production costs are assumed throughout the operating life of the mine (OLM). In this paper, an alternative technique for estimating the recoverable reserves of an open pit mining project is presented and explained in detail. The main characteristic of this technique is that it estimates the recoverable reserves of the project using mining costs as reference: this is done due to the fact that mining costs are easier to model than metal prices. Another important characteristic of this technique is that it uses the uncertainty of the geology of the orebody, given by simulations of the deposit, to make final strategic decisions, such as the selection of the operating life of the mine and the optimal production rate, which minimise the risk of not achieving future production targets while maximising the upside potential of future rewards. As it will be shown, the final outcome of the proposed technique is the generation of a robust open pit design, that include cutbacks and ultimate pit limits, called the marginal open pit mine design (MOPMD). One characteristic of the MOPMD is that, at each production period, it will be characterised by their respective geological uncertainty, given as probability distributions of ore, waste and metal quantities, and by marginal economical project indicators, such as cut-off grades and metal prices, among others. The details follow in the paper.

Jan 1, 2006

By Chisholm J. M

Why go to the CIS? The vast mineral potential of the Commonwealth of Independent States (CIS) has long been recognised, but it has taken the lowering of the iron curtain to open up the region to serious mineral development consideration by the Western World. The advent of a free market economy and the emergence of the Independent States with pressing needs for foreign investment has led to a greatly improved investment climate. Coupled with the desire for some of the more entrepreneurial resources companies to head the wave of investment to the region, this sequence of events has promised a great deal, but delivered only modest progress to-date. Potential gold project development has provided the major focus, for three reasons: the region is highly prospective for gold, gold projects tend to have a relatively lower start-up capital cost compared to base metal and fossil fuel projects and finally bullion or refined gold is more readily transportable and easier to sell.

Jan 1, 1996

For many crushed aggregate producers will the finest fraction minus 4 mm represent a problem. The fine material will fetch a much lower price than the coarser products, and may even be difficult to sell in some markets. The blasting operation will strongly influence the generation of fines after both blasting and crushing. Drill hole deviation together with the drill hole diameter, powder factor and velocity of detonation are the most important blasting parameters with regard to the generation of fines. Drill hole deviation is often ignored, and many operators will just reduce the drilling pattern in order to avoid hard bottom and an excessive number of boulders. The paper presents a technical and economic analysis of how drill hole deviation will lead to an increased generation of fines in crushed aggregate production. The analysis shows that the loss of sales revenues will be much higher than the extra costs for drilling and blasting caused by compensating for drill hole deviation by putting in more holes.

Jan 1, 1999

By J P. Sykes, T C. McCuaig, M Jessell, A Trench

The election of Donald Trump and the Brexit referendum herald a shift towards a tighter definition of economic value, at the expense of the broader value concept of sustainable development; as well as a rise of protectionism, reversing a long-term trend of globalisation. However, the situation is complex, especially over the longer term in which mine project development and exploration operates. The minerals sector should proceed with caution. A greater focus on the local impacts of mining may be strategically beneficial, not only to mitigate against a potential protectionist future, but also because sustainable development has become more ‘localist’ via the concept of ‘social licence to operate’, whilst globalisation also seems to provoke increased ‘localist’ sentiments (known as ‘glocalism’). Localist strategies, therefore, seem a good hedge against multiple political futures. By contrast, moving away from sustainable development appears strategically riskier. Not only are ‘unsustainable’ activities, such as pollution and civil rights infringements harder to reverse, but a movement towards a more sustainable global economy may already be predetermined, even if the journey there may seem oblique. It appears that the increased economic development that is coveted globally is intrinsically linked to a rise in environmental and social consciousness.CITATION:Sykes, J P, Trench, A, McCuaig, T C and Jessell, M, 2017. Charles Dickens on the (potentially) changing role of globalisation and sustainability in the long-term future of mining and exploration, in Proceedings Tenth International Mining Geology Conference 2017, pp 239–256 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 20, 2017

By Dean J. A, Taube A, White A. H, Messenger P. R, Jones I. W O, Huston D. L

The 50 million tonne Mount Morgan gold-copper deposit (4.99 g/t Au, 0.72 per cent Cu) was an irregular pipe-like body of quartz and pyrite, with subordinate chalcopyrite, magnetite and gold. Mineralisation was hosted by the Middle Devonian Mine Corridor Volcanics which occur as a roof pendant within the Late Devonian Mount Morgan Tonalite. On three sides, the deposit was enclosed by a series of normal, concave, listric faults and surrounded by outward-dipping Mine Corridor Volcanics. The tonalite which bounded the western side of the deposit transgresses the domal structure with no apparent interference. A pipe of intense, texturally-destructive, quartz-sericite-chlorite ¦ pyrite underlay and partly surrounded the deposit.The volcanic setting of the deposit, its shape, metal content and associated footwall alteration are consistent with a subsea-floor replacement origin for the gold-copper mineralisation. Mineralogical studies have confirmed the deposit has been recrystallised and annealed by a thermal metamorphic event, most likely the intrusion of the Mount Morgan Tonalite. Pyrrhotite Pipe mineralisation replaces annealed massive pyrite, suggesting that it formed during retrogressive metasomatism associated with tonalite emplacement. Telluride minerals have a close association with chalcopyrite, and no evidence for a late telluride paragenetic stage was observed. Telluride mineralisation is inferred to be genetically related to the massive sulphide mineralisation, and a separate magmatogenic origin for this mineralisation is discounted.

Jan 1, 1993

By J P. Sykes, A Trench

"The common-held view of the future of copper mining is one of declining quality of mineral resources and increasingly limited long-term development options. This decline, in turn, is viewed as inevitably leading to increasing economic, socio-political and environmental costs. As a result, new technologies and innovations will be required to mitigate cost escalation. The future is therefore typically summarised as a battle of a ‘below-ground’ declining quality asset base pushing costs upward versus ‘above-ground’ technology and innovation driving costs downward. The role that high quality new mineral discoveries could play in mitigating industry cost pressures is typically understated, if considered at all. New high quality discoveries can be mined at lower cost than existing assets and potentially if discovered in the right locations within a more amenable contemporary environmental and socio-political setting. Such deposits, once discovered, would improve the overall quality of the industry asset base, as well as benefitting their owners substantially through higher margins. However, to target new high quality deposits explorers need some understanding of the nature of high quality copper mines in the long-term future. Conventional scientific and economic techniques for analysing the future of copper supply, generally by studying the project pipeline, ignore as yet undiscovered resources and also struggle to fully incorporate the multiple internal and external factors that could impact upon copper mining practices in the future.Scenario analysis is specifically designed to consider multiple factors interacting in the future, and is thus more creative than simply looking at the visible project pipeline. The use of scenarios is therefore potentially capable of providing insight into aspects of the future of copper mining about which little is currently known or that remains considerably uncertain. In this study, the Oxford University Scenarios methodology was employed to analyse different plausible futures for copper mining and the consequent implications for exploration targeting strategies. The scenario analysis highlights two key dimensions or axes that serve to map out potential industry futures: firstly the technical and economic optimisation of the existing industry; and secondly the generation of new prospects or ‘search space’ for the copper industry. These two axes in turn frame four different scenarios for the future of the copper mining industry. These copper mining scenarios are then compared to the 20 largest existing copper mines and projects, and their owners, to determine if any represent an appropriately robust exploration targeting proxy: none do. The paper therefore concludes that efforts by industry are required to generate mine concepts that would be viable across all scenarios, and thus act also as exploration targeting proxies. In the interim, companies will have to seek to build portfolios that create an overall robust asset base, out of individually less robust assets. Failure to do this implies that consequential, irreversible strategic decisions lie ahead for the copper mining industry, which may be a threat to both incumbents and the very industry itself. This situation makes strategic exploration targeting in the copper industry very difficult.CITATION:Sykes, J P and Trench, A, 2016. Using scenarios to investigate the long-term future of copper mining and guide exploration targeting strategies, in Proceedings International Mine Management Conference, pp 265-290 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 22, 2016

By Johns D. R

The producers of mineral sands on the East Coast of Australia might be regarded as having a simple task of selling Rutile and Zircon. Such is not the case. Differing quality and grain size requirements plus the dramatic increase in the percentage of mineral sold in a processed form have meant a large increase in the number of different end products handled. The resulting sales control problems are compounded by the need to be able to deliver against a large number of separate contracts which may relate to spot or long term sales in small quantities or in bulk shipments. Methods of helping management control this situation have been devised and incorporated into a suite of computer programs. Experience with the approach has been very satisfactory. The effect of changes to shipping schedules, commitment to new or changed orders, or proposed changes to production can be evaluated as and when necessary with little bother. Confidence in decisions taken is high since the process of data collection has been designed to involve

Jan 1, 1977

By A Kitchen

For the past decade, demand for Australian resources has reached unprecedented levels, thanks mainly to the emerging superpowers of China and India. Meeting demand has meant miners and governments alike have ploughed billions into capital expenditure projects for logistics infrastructure such as roads, rail and ports, to support the ever expanding number of mines and mineral volumes. In more recent times, however, the effect of the global economic crisis has led to a decline in demand for Australian minerals. The downturn has seen companies lay off workers in droves, and delay or cancel expansion projects, in an attempt to preserve cash flow. Whilst the current economic cycle has hit the mining sector hard, it is an opportunity for companies to take stock of their existing operations and plan for the future. As mining companies grapple for scarce capital resources, it is inevitable that industry consolidation will ensue. This presents challenges and opportunities for both buyers and sellers alike, looking to expand operations, or sell off assets to raise cash.

Jan 1, 2009

A microcomputer based expert system is presented for fast and cheap mineral identification. Because of the increasing pipularityof and interest for minerals and precious stones (selling, hobby polishing, collecting, teaching etc.) we pointedly deal with gemstone identification. In most cases only some fundamental data are needed to identify a mineral sample (or precious stone) if we know how to use these data. The important, characterizing data of the well-known minerals are stored in the data-base of our program-system. The visible and measured optical and physical properties of the sample are compared adequately with the stored data to get the result, the name of the examined mineral. The system works in a simple, friendly way - asking questions, understanding answers - so that no special computer knowledge is necessary to use it, only the answers should be typed in. The main advantage of the system is that only relatively simple and fast measure-ments are required. Based on these measurements a fast, reliable identification is processed on a cheap com-puter running a sophisticated program-system. The MINTEST system handles even those cases when the tested mineral cannot be determined based on the given input data.

Jan 1, 1985

Marketing of mineral products has not yet succumbed to the degree of pre- dictability and exactitude that is fam- iliar to the engineer or metallurgist in pursuing their profession. Whilst the Great Market of the world economy dic- tates circumstances for the sale of min- eral products, there are more than just buyers and sellers in the determination of the revenue received by the producer. For the engineer or metallurgist he will be required to gain an understanding of these participants and of the peculiar languages of the market place. This will be only one of his tasks in learn- ing to communicate with society, as his responsibilities increase as he climbs the ladder of success. There is un- doubtedly a need for better statistical information so that producers and sell- ers can make an appropriate and earlier response to market conditions. There is in addition, a need for more aggressive concern by raw material producers for the development and promotion of better end use of their products. Undoubtedly the marketing of mineral products will be more influenced by the direct involv- ment of government agencies than has been the case in the past. Whilst that 1. Director - Marketing & Finance, North Broken Hill Limited.

Jan 1, 1975

Most mineral products exported from Australia to Japan, with the notable exception of coal, are purchased with weight and quality determined on discharge. Sampling of imported minerals for purpose of payment is done at facilities owned and operated by the purchaser. The selling shipper is represented at the weighing, sampling and testing by an independent inspection group who supervises the whole procedure. Sampling and testing are done within the provisions of the contract between the two parties, and normally in accordance with the relevant Japanese Industrial Standards (JIS). These JIS specify such things as the number and mass of increments to be taken; the practice of taking these increments; the method of determination of moisture, size distribution and quality. The JIS concerned with sampling however, are meant to be basic guides rather than rigid rules. Hence sampling and testing practice varies from plant to plant. In general Japanese sampling facilities and methods are elaborate and efficient. Opportunity is given for the discussion of varying technical viewpoints between consumer and shipper. However the resolution of differences and the implementation of changes normally takes a long time. Such discussions seem best reduced by prior contract agreement on reasonable specifications and detailed testing methods. The independent inspectors

Jan 1, 1976

Before any accident prevention and total safety programme can succeed, a safety concientiousness or attitude needs to be implanted in the employees' minds. Psycholog- ical and physiological conditions play a vital role in accident causation and prevention. Both need attention in a good safety programme, but working place conditions and environment are more easily corrected. However, the challenge is to change attitudes in the minds of men - psychological factors in accidents. To do this does not require a Safety Officer, but does require a Safety Adviser. At Blackwater mine a Safety Adviser is available to all sections of the organisation to guide and assist, to provide data and material to use at meetings, to help in accident investi- gations and to help organise training. To eventually achieve total commitment requires every member of the management team to be a salesman towards all around selling an attitude to safe working, a way of life. At Blackwater mine the workforce is young overall with most employees being under 40 years old. Psychologically this is a quite different problem to a balanced ages working group. A great deal of effort is needed to communicate with the younger, articulate, better educated employee who is also generally a skilled operator in the capital intensive

Jan 1, 1975

The æProfit Driver ModelÆ is a tool which builds costs from first principles and integrates revenue, costs and physical mining parameters and, hence, can quantify the impact and leverage on profit. In this paper an æexample mineÆ has been created to represent a typical Australian Open Cut Coal Mine. This has then been input into the Profit Driver Model to allow different variables to be tested. A series of variables were tested to determine which ones had the highest impact on profit and results are useful to management as a guide to the areas in which they can focus effort to achieve better profitability. Whilst the highest profit drivers are those external to the control of management and include selling price and exchange rate, the next most sensitive are those variables related to the geology of the mine and the mining method. These included coal quality, yield and strip ratio. Site management has some control of these. For example, the ability to vary the sequence of mining or improve the yield by a more efficient coal washing process. The efficiency of the workforce and management has similar impact to the mining variables. Finally, there are the supply variables, such as fuel, labour and explosives which are the least sensitive although, cumulatively, still significant. Each mine is different and the results of the example mine will not apply to all mines. However, the approach taken is universal and the tool illustrates a simple method to quantify the profit impact when changing variables. The benefit of the approach is the short time taken to get a set of results. This allows the more detailed and time consuming work to be more focused. The results illustrate that management has a significant influence on profitability.

Jan 1, 2000

By J MacDiarmid

Atlas Copco is a leading provider of industrial productivity solutions (Atlas Copco, 2007) and one of the worldÆs largest suppliers of rock drilling equipment. The business division of Atlas Copco Construction and Mining Technique is based in +rebro, Sweden with the majority of their equipment produced in a number of facilities within the area. As part of the 2006 AusIMM/Atlas Copco Scholarship I was fortunate enough to visit these facilities to experience first hand this truly unique global company. Through numerous presentations on the various divisions and products manufactured by the company, I saw the broad range of products and services offered by the company and came to realise it is much more than just selling drills. Other highlights included a brief love affair, a tour of EuropeÆs largest underground mine (or factory depending who you ask), a drink at the ice bar at the ice hotel in JukkasjSrvi, and a number of dinners of reindeer. Overall this it was a truly amazing experience with all involved with the program going out of their way to ensure I got the most out of the trip. More importantly, through no effort at all, everyone naturally conveyed their passion for the industry and the company which is a great credit to the æAtlas Copco WayÆ thereby creating a company æcommitted to your superior productivity through interaction and innovationÆ.

Jan 1, 2007

The Mungana group of mines, in the Chillagoe district, yielded 334,000 tons of ore giving 31,831 tons of lead, 7,907 tons of copper and 3,228,600 ounces of silver. The Girofla mine produced approximately 220,000 tons of ore, and with the Lady J ane mine supplied most of the ore from this centre. The deposit was discovered in 1888, but active development did not commence from the main shaft until 1898. A subsidiary of the New Chillagoe Railway and Mining Co. Ltd., the Mungana (Chillagoe) Mining Co. Ltd., worked the mine from 1902 until 1914, selling copper, copper-lead, lead ores and fluxes to the smelters at Chillagoe. The smelters stopped operations in 1914 when the richer ores of the Girofla had been worked out and production from the Lady Jane had ceased due to heavyground and fire. The Girofla shaft was 823ft. deep with a cross-cut at 810ft. At the 710ft. level contour drives had delineated the orebody, which had been stoped about 10ft. above the level. Except for flux ores which had been stoped only for favourable smelter tariffs, the orebody was practically exhausted above the 610ft. leveL Under company ownership the mine yielded 139,265 tons of an average grade of 4.QlYr copper, 16.2% lead and 12.5 oz. per ton silver.In 1921 the Queensland Government re-opened the mine and worked it until 1927. The North Lode (Fig. 2) was discovered almost immediately at the 100ft. level and was worked down to the 410ft. leveL The ore from this branch and the completion of the stope at the 710ft. level yielded about 80,000 tons of ore averaging 0.4 copper, 9.8 lead and 7.8 oz. per ton silver during this period.

Jan 1, 1953

By Y Peng, D J. Bradshaw, G Long

As copper reserves deepen, they are becoming increasingly less pure. Penalty elements such as arsenic, antimony and bismuth are occurring in increasing concentrations. Environmental issues with smelters are leading to increases in penalty rates for these elements such that some concentrates may become difficult to sell. Arsenic concentration in Rosebery copper concentrates during 2010 varied between 3000 and 8500 ppm. Arsenic levels above 5000 ppm can preclude import to some customer countries. Optical mineralogy has indicated that arsenic in Rosebery copper concentrates is most commonly associated with tennantite (Cu12As4S13) in solid solution with tetrahedrite (Cu12As4S13). In addition, silver reports to concentrate as freibergite (Cu12As4S13 ). A reduction in arsenic content will therefore lead to a concurrent reduction in the silver content.A literature review by Long, Peng and Bradshaw (2012) indicated that arsenic bearing minerals could be removed using potential controlled flotation. Some success in reducing the amount of arsenic had also been reported using either roasting or chemical depression using reagents such as lime and cyanide. Due to the location of the Rosebery concentrator adjacent to world heritage listed temperate rainforest, the use of a roaster or cyanide was immediately discounted. Lime is already used as a reagent in the Rosebery flow sheet, so could be considered as a potential arsenic depressant.In order to determine a method of separating out the high arsenic bearing minerals, two series of flotation tests were conducted. The first series investigated the effect of pulp potential on the recovery of copper, silver and arsenic minerals; a second series investigated the effect of pH, froth depth and regrind.CITATION:Long, G, Peng, Y and Bradshaw, D J, 2012. Production of a low arsenic copper concentrate at MMG Rosebery, in Proceedings 11th AusIMM Mill OperatorsÆ Conference, pp 347-354 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 29, 2012

By G Milligan

This paper describes how water is being planned, managed and used in Queensland as both a precious natural resource, vital for healthy ecosystems, and as a valuable tradeable commodity, necessary to secure economic prosperity. Queensland has been progressively implementing a planned package of water industry improvements agreed by the Council of Australia Governments in 1994. The Water Act 2000 provides the legislative basis for implementing the COAG water reform framework in Queensland and sets out statutory water planning processes. A Water Resource Plan (WRP) is a strategic document that specifies water sharing and environmental flow outcomes across a whole catchment over a period of up to ten years. A Resource Operations Plan (ROP) sets out the details of implementing a WRP, including environmental flow rules, establishment of tradeable water allocations that are separate from land, rules for water trading, rules for operating water infrastructure, arrangements for the release of any unallocated water identified in the WRP, and requirements for monitoring and reporting. Water Resource Planning and Resource Operations Planning are progressing in priority catchments and aquifers across the State. Ways to obtain a water entitlement now depend on whether a WRP and/or a ROP exist in a particular catchment. Water trading provides for the buying and selling of water entitlements on a permanent basis where permitted under a ROP. Details of tradeable water allocations are securely registered on the Water Allocations Register, which is similar to a land titles register. Leasing and temporary transfers of water entitlements are also possible. Water brokers are emerging to facilitate water trading which aims to improve water use efficiency and move water to higher value uses. Queensland is leading the way in the implementation of the COAG water reform framework and the pursuit of sustainable water resource management. The StateÆs progress in this regard is increasing certainty for water users, while ensuring that considerations of equity amongst existing and future users and amongst various uses, as well as considerations of ecological sustainability and the wider community, are all taken into account. The mining sector stands to benefit substantially from these new approaches to planning, managing and using this precious resource.

Jan 1, 2003

Large GDP increases in the Pacific Rim countries have been accompanied by similarly large increases in demand for oil products. In the case of residual fuels, this demand has been tempered by the substitution of other energy products such as coal or gas.In the region's developing and newly industrialised nations, it has not been possible to make the very large investements in infrastructure which allow other energy sources to be used for transportation. As a result, GDP growth has been mirrored in the demand growth for automotive fuels. Other non-sustitutable products such as lubricants have also benefitted by the region's GDP growth.The combination of a number of years of sustained growth, coupled with increasing quality requirements is now stretching the upgrading capacity of the region's refineries. If, as seems likely, the region continues to enjoy a high GDP growth rate, then this will be accompanied by increasing reliance on finished products coming out of the Middle East. The owners of the most simple form of refinery in which crude is simply distilled and the naphtha reformed into petrol will face major capital investments. If they decide not to bear this cost, they will face increasing problems in selling their surplus residual fuel oil at an economic price. Quality will become an increasingly important issue. Not only in the well publicised areas such as unleaded petrol, but also for products such as lubricants which play a major role in the efficiency of modem equipment. Quality of service such as hours of opening, ease of access, and service station facilities will also become increasingly important as the oil companies use these to attract customers and gain brand differentiation.

Jan 1, 1990