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By L Torckler, R L. Brathwaite

At Neavesville gold-silver (electrum) mineralisation occurs in steeply-dipping zones of intense fracturing, brecciation and quartz veining within rhyolitic pyroclastics, carbohaceous shales and andesites. Hydrothermal alteration extends over an area of greater than 3 by 1.5 km. In rhyolitic tuffs, highly silicified zones containing quartz-adularia-illite assemblages are flanked by less silicified assemblages composed of albite, illite-montmorillonite and chlorite. The mineralogy and sequence of alteration are comparable with the alteration zones which envelop the steam-producing fissures of the active Wairakei and Broadlands geothermal fields. Primary fluid inclusions in quartz from five fissure veins in the Neavesville field show maximum homogenisation temperatures ranging from 220 - 260¦C and salinities of 0.0 - 1.1 wt per cent NaCl equivalent, which cover a similar range to actual measured temperatures and salinities in geothermal fluids at Wairakei and Broadlands. The age of the rhyolitic pyroclastics and related alteration and mineralisation is probably Pliocene and Neavesville therefore represents a fossil geothermal system. The intensely fractured zones containing the gold-silver mineralisation were probably produced by hydraulic fracturing generated by accumulation under pressure of hydrothermal fluid in blind fault zones. Study of fluid inclusions indicates that hydrothermal quartz associated with electrum was deposited under boiling conditions. High grade electrum mineralisation at Graces workings appears to be localised by reaction of hydrothermal fluid with sedimentary marcasite in black shale.

Jan 1, 1980

The Main Seam occurs in two 'pods', termed North and South, separated by an east-west oriented 'want' zone (most probably a palaeo-channel). The seam on either side of the 'want' area reaches thicknesses of over 30 metres but the North Main Seam adjacent to the 'want' zone has been split into multiple seams of 10 to 15 m thickness. Rock types in the inter-burden of this area are characterised by inter-bedded sandstones and carbonaceous mudstones varying in thickness from 0.5 to 5 m. In the South Main Seam, an area of un-split coal exists and is characterised by few inorganic partings. Overburden in this area varies geographically from relatively thick mudstones in the south and east part of the coal deposit to inter-bedded sandstones and carbonaceous mudstones adjacent to the 'want' area. The sandstone/mudstone overburden probably represents a splay or splay-channel complex emanating from the larger 'want' area palaeo-channel. Modelling lithological variability is of use because it is one of the factors used in predicting cavability and roof support system design. The coal in both the north and south deposits were found to exhibit highly predictable quality and breakage parameters in relation to the coal geometry. Although ash yield and sulphur are mostly low and not variable, volatile matter and thus fixed carbon, varied in relation to seam thickness. In general, volatile matter (dat) decreased and moisture increased with decreasing seam thickness whereas moisture increased with decreasing seam thickness. In addition to these parameters it was found that the energy needed to crush the coal was lowest at the top and bottom of the seam and, on a whole seam basis, decreased with seam thickness. All of these parameters were found to vary in relation to the vitrain band content of the coal which itself was controlled by seam geometry. These parameters can therefore be modelled and inputted into mining plans and quality control operations.

Jan 1, 1996

Since early-2001, Kalgoorlie Consolidated Gold Mines (KCGM) has successfully operated an ultra fine grinding (UFG) circuit to supplement its roaster capacity for the treatment of the refractory gold flotation concentrate. A second UFG mill was installed in 2002 taking the total UFG capacity to over 20 tph while grinding to 11 to 12 microns and achieving over 90 per cent gold recovery. A development program in 2002/3 involving plant trials, pilot plants and laboratory testwork resulted in process improvements and a better understanding of the milling and gold leach processes that assisted in narrowing the gap between UFG and roasting. This paper details the operation of the ultra fine grinding process at KCGM as a non oxidative treatment for the extraction of gold from a refractory ores.

Jan 1, 2003

By A Parry, C Fitzmaurice

After conducting laboratory ore sorting testwork on samples of a low grade nickel ore stockpile at Western Areas’ Flying Fox nickel mine, a mobile crushing, screening and ore sorting plant was located adjacent to the stockpile. An initial two month trial of the ore sorter program proved successful and was extended to process the entire Flying Fox low grade stockpile in a further four month campaign. A total of 167 660 t of low grade ore was processed, providing highly upgraded feed trucked 26 km to the Cosmic Boy concentrator. A more than three-fold grade increase was achieved on ore sorter accepts. The moderately upgraded fines that by-passed the mobile ore sorter were also subsequently blended into plant feed. This paper describes the mineralogy of the Flying Fox low grade ore, the mobile ore sorting campaign and provides some commentary on the economic and environmental benefits achieved in the ore sorting campaign. The ore sorting campaign demonstrated the benefits of being able to utilise mobile ore sorting equipment temporarily located adjacent to sub-economic low grade stockpiles in order to effectively treat these stockpiles and produce viable plant feed.CITATION:Parry, A and Fitzmaurice, C, 2018. The upgrading of low-grade nickel ore stockpiles at Western Areas Ltd Forrestania operations, using a mobile ore sorting plant, in Proceedings 14th AusIMM Mill Operators' Conference 2018, pp 541–550 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 29, 2018

By Bruington T, Perkins J, Hutton R

Natural resource developments are among the largest and most challenging projects taking place in the world. They involve capital intensive investment with long lead times and the management of geological, market, technical, operational and financial issues. A clear strategy is required to manage these projects and this strategy is underpinned by a development Philosophy.

Jan 1, 1997

By D David

The majority of SAG and ball mill design methodologies are applied using a single design value for mill selection, such as the 80th percentile ball mill work index or SMC value. Inherent in the selection of this design value is a desire for the mill to accommodate unfavourable, but not absolute worst case, feed conditions. It has been observed in numerous “post-mortems” of unsuccessful designs and also in many optimisation studies, that the selection of the design value has been poor. Statistical analysis of testwork data sets shows that inherent variability in the data can, by itself, lead to design errors. Metallurgical testing is an attempt to measure the characteristics of millions of tonnes of ore using only a few kilograms of sample. In this paper some realistic but synthetic test work data sets are used to explore old and new methods of defining the design envelope and subsequently selecting a reliable point. The aim of the paper is to provide practitioners with tools that reveal the adequacy (or otherwise) of metallurgical test programs intended to support various levels of project design. It also provide guidance as to how it is possible to statistically justify a comparatively high design point in the absence of adequate test data.CITATION:David, D, 2015. Measuring and taking notice of orebody variability – an essential ingredient for reliable plant design, in Proceedings MetPlant 2015, pp 10–26 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 7, 2015

By Hampshire MJ

The tailing retreatment project rated at 10 000 t/day commenced operations in October 1982. The operation consists of dredging, feed preparation, cyanide leaching and carbon-in-pulp (CIP) gold recovery followed by Zadra atmospheric stripping and electrowinning. For the first two years the operation was adversely affected by excessive cyanide consumption and low gold extraction. Investigations demonstrated that the very fine, or slime, fraction of the tailing was the dominant consumer of cyanide and dissolved oxygen. The plant flowsheet was subsequently modified by inclusion of 80 - 100 mm dia. cyclones for slimes separation and a 31 m dia. thickener for water recovery. Treatment of deslimed feed in the CIP plant has reduced sodium cyanide consumption from an average 1.85 kg/t to 1.15 kg/t. The reduced oxygen consumption by the CIP plant feed has resulted in higher dissolved oxygen levels, frequently reaching supersaturation after 4 to 5 h contact time. This has allowed much improved gold extraction from the existing CIP plant capacity. Gold extraction from the mixed pyritic siliceous tailing has improved from an average U prior to desliming to a current 57%. Investigations are continuing on the recovery of gold from the discarded slimes.

Jan 1, 1986

Optimal drill and blast design is a process often neglected by many underground hard rock mines. This is even more important to the new mine where ring designs need to be implemented and refined in a short period of time. In today's environment where more and more mining is being carried out by contract specialists it is the co-operation between a principal and contractor, who are working towards a common goal, that achieves the highest quality end result. The development of drill and blast designs that cause minimal damage to the mine infrastructure is particularly important to Northparke's E26 Block Cave Mine, as it consists of a single extraction level which must survive intact for the life of the mine. The advanced undercut mining method implemented at Northparkes is fired in a sequence which protects the mine development from potentially damaging abutment stress. This paper details how blast designs will be optimised and sequenced to satisfy the conflicting objectives of maximum rock breakage inside the drill pattern and minimum rock damage outside the pattern.

Jan 1, 1995

By S Matos Camacho, K G. van den Boogaart, R Tolosana Delgado, U Mueller

"The precise formulation of a geometallurgical optimisation problem is by necessity a simplification of reality. It includes implicit choices such as data availability or mining block geometry. Additional data can be orebody data, production data or market data. Often these choices are predetermined by the software, the workflow or the corporate culture, and as such are not even queried. There are several aspects that might play a role in the optimisation. They include not only the spatial model on which the selection of mining blocks and the potential mining sequence are based, but also the complexity of the processing model, the way in which uncertainty is treated, the scope of responsibility and the complexity of the model. In addition the timing of the optimisation and the availability (or lack thereof) of information will influence the outcome of any optimisation.We show that different modelling choices and different model formulations for the same mine can lead to very different processing choices, substantially different net present values (NPV), opposite investment decisions and so to overall different values for the entire operation. The selection of adequate simplifications and corresponding formulations for the optimisation problem is thus an important task in itself.For this purpose we introduce a method for quantifying the impact of certain simplifications prior to the optimisation. For example, the effect of mining block choices depends mainly on the spatial structure and the structure of the processing gain function. Both can be quantified beforehand. Based on the outcome, appropriate simplifications can be selected for the geometallurgical optimisation.CITATION:van den Boogaart, K G, Tolosana Delgado, R, Mueller, U and Matos Camacho, S, 2016. How Details of the Geometallurgical Optimisation Influence Overall Value, in Proceedings The Third AusIMM International Geometallurgy Conference (GeoMet) 2016, pp 303–312 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 15, 2016

By D MacKay

The Mt Wright Project is located near the town of Ravenswood in North Queensland and is operated by Carpentaria Gold – a wholly owned subsidiary of Resolute Mining Limited. Underground Development of the current Mt Wright orebody commenced in June 2006 and the first production ore was brought to surface in June 2007. The orebody is a rhyolite pipe containing fine-grained disseminated gold in a granite host rock. Ground conditions tend to be good to excellent throughout development, with some minor deformation experienced when stope-sized excavations are formed. The mine commenced as a sublevel open stoping (SLOS) operation with the intent to utilise development waste to back fill isolated upper level stopes while developing to the bottom of the known orebody. The mine plan intended to commence production with a bottom-up primary/secondary stoping retreat through the main orebody utilising cemented fill. Some challenges were faced during the initial production phase that included:•Ongoing underground diamond drilling and updating of the block model resulted in some issues reconciling the grade control results to the resource model. This was primarily due to the high variability of grade which in turn caused difficulties in accurately identifying areas of low and high-grade.•The cost of establishing and operating a cemented fill plant to achieve the planned extraction sequence of the orebody had increased significantly beyond initial estimations.•Geotechnical conditions such as stress orientations, ground behavior and response to the forming of excavations learned through the mining of the upper level stopes were different to the assumptions made during the initial design.A number of in-house and external reviews of the mining method were completed which has resulted in a revised mining plan. This paper will summarise the challenges faced and the implementation of the mine plan to date.

Mar 21, 2011

By J Shandro

This paper stems from recent multidisciplinary research between mining engineering and health researchers at the University of British Columbia and the University of Victoria, Canada. It considers the implications of a future state of sustainable mining development that places more emphasis on consideration of mine community health and sustainability within the definition of mine planning best practice. It reviews recently completed research studies on mining and other resource communities in British Columbia, Canada and a process undertaken by the research team to share research findings. It then examines the outcomes of this knowledge sharing process placing emphasis on the development of a more collaborative and enhanced mine planning process that integrates community- level indicators of health and sustainability to more effectively address mine impact-benefits. The paper concludes by discussing current initiatives that aim to benefit the mining industry, communities, and governments as they plan future mineral development projects.

Nov 22, 2011

The Nena high sulphidation-type copper-gold deposit is composed of andesitic pyroclastic units with minor interstratified lava flows. Epiclastic sandstone and conglomerate, and siliciclastic rocks consisting of mudstone, shale, lithic and bioclastic sandstone and conglomerate are locally present. Pre-mineral diorite intruded and domed the volcano-siliciclastic sequence. Economic copper-gold is hosted by vuggy quartz altered lapilli tuff and tuff breccia. The early hydrothermal alteration stage involved deposition of epithermal banded quartz and chalcedonic silica in localised environments. This alteration stage was locally superimposed by a hydrothermal breccia event. Following the breccia event, magmatically-derived volatiles were channelled through a NW striking dilational fault zone and generated the high sulphidation alteration. The high sulphidation alteration is zoned from a vuggy quartz core with local massive replacement silica through a broad pyritic quartz-alunite halo and finally to a thin illite-smectite zone. This is surrounded by regional chlorite-epidote-smectite alteration. A gangue mineral phase consisting of quartz, alunite and baryte overprinted the zoned high sulphidation alteration and preceded the main copper-gold-arsenic mineralisation. Early sulphide deposition is characterised by marcasite, arsenical pyrite and melnicovenite. Main-stage copper-gold mineralisation involved sequential deposition of hypogene bladed covellite+chalcocite, enargite-luzonite and luzonite+stibioluzonite respectively. The copper sulphides are zoned from bladed covellite-chalcocite in the north (cross-sections 5000 - 5600 N) through enargite-luzonite (cross-sections 4700 - 5000 N) and to luzonite????stibioluzonite in the south (cross-sections 4400 - 4700 N). A late phase of minor acicular covellite and enargite+luzonite overprinted the zoned copper sulphides and associated gold mineralisation. Gold mineralisation commenced at the transition from enargite to luzonite, and continued through the deposition of luzonite-stibioluzonite in both stages. Most gold was deposited during the main-stage mineralisation. Yellow native sulphur was deposited in the remaining vugs and defines the waning stage of the hydrothermal system. Post-mineral dioritic intrusives and feldspar porphyries intruded the volcano-siliciclastic sequence. Finally, supergene chemical processes with associated erosion and uplift generated a 40 - 50 m thick oxide-hosted gold cap. The oxide gold cap is underlain by a 35 - 45 m thick blanket of supergene chalcocite+covellite mineralisation which overlies and occurs throughout the main hypogene copper-gold zone. Supergene gold is related to the distribution of primary gold-bearing sulphides. Therefore, remobilisation and redeposition of gold are considered to be insignificant and very localised.

Jan 1, 1999

By Z Li, Z Yan, T Htet, S Zhang

During the pyrometallurgical processes, a substantial quantity of high-temperature ironmaking and steelmaking slags, generated at temperatures ranging from 1400 to 1600°C, is wasted, as the heat contained in these slags is released into the environment during the tapping process without effective utilisation. On the other hand, a significant amount of energy is required to reheat the cold materials for the manufacturing of glass and mineral-wool, often necessitating the addition of high-silica materials to facilitate the production process. In this study, an innovative approach is presented to harness the heat present in molten metallurgical slags to directly produce new raw materials for glass and mineral-wool manufacturing while simultaneously reducing energy consumption and mitigating CO2 emissions. The theoretical amount of waste glass that can be effectively added in the process has been estimated via thermodynamic calculation. Experimental assessments were conducted to examine the impact of high-silica waste materials on the dissolution, melting and fluidity. Potential recipes for glass and mineral-wool manufacturing were suggested and an assessment of the energy savings, and reduction in CO2 emissions with manufacturing of glass and mineral-wool using this innovative approach were included. It was determined that the processes could lead to a reduction of over 26 kg of CO2 emissions per 100 kg of new material used, primarily due to the utilisation of heat from slag and the accelerated smelting process.

Aug 21, 2024

By T Dawson, B Haskins

Fatigue is it the newest buzz word or is fatigue a real phenomenon that is creating safety and organisational risk for you? There is no debate that fatigue is natural, and it affects us all, just like gravity; however, there has been much debate on the severity of its impact in the workplace. For many years the impact was not measurable, hidden out of sight and, quite frankly, written off as the infamous ‘operator error’. Over the last several years, advancements in technology have provided safety and health professionals, sleep scientists, fatigue experts and organisations with the ability to monitor and detect fatigue events in real time, as well as predict and monitor increased risk for fatigue events. Caterpillar Safety Services has assembled an extensive and exceptional set of technologies that will provide the best methods and data to measure the impact of fatigue. This paper will discuss fatigue in the workplace and review the technologies and data sets available, which will allow the reader to determine whether this risk is real or rubbish.CITATION:Haskins, B and Dawson, T, 2017. Fatigue risk in your operations – real or rubbish? It actually depends , in Proceedings 13th AusIMM Underground Operators’ Conference 2017, pp 137–142 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 16, 2017

Banks' focus in using cash flow methods can differ markedly from that of equity investors. This paper attempts to explain and describe bankers' approach by: ò outlining the fundamental difference between banks' and investors' risk / return profiles. ò describing lenders' consequent use of cash flow methods in mineral valuation. areas. explaining lenders' specific treatment of key risk Fundamental to understanding banks' appraisal of mineral projects is the appreciation that lenders have a basically different risk profile and outlook from those familiar to equity investors. Lenders do not normally participate in any project upside. The economics of lending dictate that banks can only accommodate a low probability of loan default and consequently banks' principal focus in mineral ""valuation"" is ensuring an acceptably comfortable probability of debt repayment. A simple conceptual explanation of lenders' risk / return position is outlined.

Jan 1, 1994

By A S. Fogliata, L Bengochea, G Mas, J E. Lazarte

The Culampajß auriferous district is located in the northern sector of the eastern edge of the homonymous hill, Catamarca Province, Argentina. Tajo Largo mine is situated in the southern flank of Las Minas gulch at an approximate height of 3.600 m above sea level. In the studied area main outcrops are orthogneiss rocks of Chango Real Formation. The ore mineral is native gold with a lesser amount of pyrite, chalcopyrite, haematite, limonite, malachite, azurite and covellite. These ore mineral assemblages are disseminated in quartz veins filling tension fractures in the host orthogneiss.Several types of inclusions have been recognised, including three phase H2O-CO2liq-CO2vap inclusions, polyphase inclusions with H2O-CO2 and one or more solid phases, and two phase aqueous inclusions. In the three phase H2O-CO2liq-CO2vap inclusions the Tmclath is about 1¦C and the CO2 liquid-vapour homogenisation occurs at 26 - 28¦C, to liquid phase. The homogenisation temperature of H2O-CO2 occurs at 365 - 380¦C in the aqueous phase. This set of data defined a solution with a salinity of 14, 4 wt per cent NaCl equivalent and a density of 0.84 g/cm3. In the two phase aqueous inclusions the melting temperature (Tm) of -5.4¦C and the eutectic point (Te) in -38¦C indicates a salinity of about 7.5 wt per cent NaCl equivalent, with the probable presence of Ca2+. Density of fluid is about 0.83 g/cm3. Homogenisation temperature ranges between 260¦ and 280¦C. The pressure, temperature and salinity of fluids in the polyphase inclusions suggest an early fluid of high density and high salinity. The three-phase fluid inclusions may be the result of an unmixing-phase separation of post magmatic hydrothermal fluid due to pressure decrease along fractures. It is suggested that the deposit was formed during the late magmatic hydrothermal stage genetically linked to granitic rocks and can be comparable with the intrusion-related gold system of Baker (2003).

Jan 1, 2008

By S Wan, F Zhang, J You, K Tang, X Tang, C Bessada, A Canizarès, Q Zhang, L Lu

Microstructure of CaO-SiO2-based glassy samples with various Al2O3 contents were examined quantitatively by Raman spectroscopy and 27Al MAS NMR (magic-angle spinning nuclear magnetic resonance). Sequence of multiple cluster models of aluminosilicate system modified with Ca2+ and Na+ cations have been designed, and Raman spectra simulation were carried out after geometric optimisation by quantum chemistry (QC) ab initio calculation. The functional relationship between Raman scattering cross-section (RSCS) and stress index of silicon-oxygen tetrahedron (SIT) for aluminosilicates was established, which was applied to the calibration of experimental Raman spectra. Some five-fold coordinated aluminium (AlV, around 5 per cent) and less than 2 per cent sixfold coordinated aluminium (AlVI) were detected by 27Al MAS NMR, while most of aluminium remained in tetrahedral sites (AlIV). The hyperfine quantitative results of Raman spectroscopy and NMR showed a gradually production of AlIV with addition of Al2O3, along with the significant adjustment of Qi species distribution, in which Q1, Q2 reduced and fully polymerised Q4 increased while Q3 showed a non-monotonic variation and obtained the maximum at Al2O3 = 18 mol per cent. Furthermore, the effects of aluminium to bridging oxygen bond types (T-Ob, T = Si, Al) and the degree of polymerisation were also discussed in detail. The evolution of microstructure and its correlation with the viscosity of CaO-SiO2 based melts, incorporating various Al2O3 additives, have been investigated by employing in situ high temperature Raman spectroscopy at 1823 K and viscosity model. These structural features related to composition are essential theoretic foundation to understand their properties. The average Qi evolution culminates in an overall enhancement of the degree of polymerisation. Viscosity was determined utilising a rigorously selected viscosity model, elucidating a consistent upward trajectory as Al2O3 content is incrementally added. Furthermore, a quantitative analysis of the relationship between viscosity and structure was conducted based on the average number of non-bridging oxygen per network-forming tetrahedron (NBO/T). It provides valuable insights for examining and predicting viscosity behaviour of aluminosilicate systems.

Aug 21, 2024

DIVERSITY There are plenty of examples to show that diversity has been the fundamental downfall of many organisations, particularly when you consider the international position. What about core business, the return of companies to key competence directions and market focus. The stockmarket for instance defines groups and companies in key groups of core business. The expectation is that companies toe the line and do not diversify across their areas of defined expertise. In essence, the market has given notice that the requirements are to focus and stick to our core business. So what right does the conference have to suggest that diversity is the key to prosperity. Hasn't the organiser read the book, studied the history, listened to the market - obviously not. Have they got it wrong, My feeling and belief is no - the organisers have got it right. However, the matter is not as simple as first perceived. What is Diversity, or Diversification as I would prefer? Is it a product position? Is it a geographic position? Is it an expansion or change in services offered? Does a gold mining company diversify into copper or diamonds or aluminium or nickel? Does a gold miner in Australia diversify into China or Kazakhstan or West Africa? How do the two relate? They don't. A successful company will always possess a 'core competence' not so much a 'core business'. The best example of this is the service company extraordinaire - McDonalds. They don't sell hamburgers or french fries, they sell a service, a convenience, a lifestyle. The core business is hamburgers and if McDonalds were to diversify further into new styles of hamburgers, I suggest to you they would fail. But if McDonalds were to diversify into other products based on their 'core competence', provision of service, then I would suggest to you they would be very successful. The service procedure, service machine, service system, the formula, stava the rnnetant the nrnrlnrte -

Jan 1, 1996

By E Ben-Awuah

Mine planning is the backbone of all mining enterprises and determines the profitability or otherwise of any mining investment. Providing high quality ore and tailings containment at the right time are the main drivers in oil sands mining. Recent environmental and regulatory requirements also makes waste management an integral part of mine planning in the oil sands industry (Directive 074). Due to the limitation of lease area, the pit phase advancement in oil sands mining is carried out simultaneously with the construction of tailings dykes in the mined out areas of the pit. These in-pit dykes are constructed to hold tailings that are produced during the processing of the oil sands ore after an initial external tailings facility. Most of the materials used in constructing these in-pit and ex-pit dykes come from the oil sands mining operation, making it necessary to have a plan for supplying the dyke material. The research problem here is categorised as: determining the order of extraction of ore, dyke material and waste to be removed from a predefined ultimate pit limit over the mine life that maximises the net present value of the operation û a strategic schedule; anddetermining the destination of dyke material that minimises construction cost depending on the construction requirements of the various dykes as per their designs û an operational schedule. There has been developed, implemented and verified a theoretical optimisation framework based on mixed integer goal programming (MIGP) to address the oil sands long-term production scheduling and waste management problem. The research introduced the development of multiple material types and multiple destination optimisation techniques using MIGP in the context of mine planning. This study presents an integration of mixed integer programming and goal programming in solving large-scale mine planning optimisation problems using clustering and pushback techniques.

Sep 26, 2011

By R Knight

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

Mar 8, 2016