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By Bromley JC

Eimco Great Britain, a division of Baker Mining Equipment Company, was contracted to develop a hardrock tunnelling machine in conjunction with British Coal. The objective: a machine to cut rock up to 170 MPa compressive strength yet retaining the flexibility of roadheader type machines. This flexibility to encompass mobility, wide range of excavation shapes and sizes, simplicity of design and use, compact size, and efficient cutting operation. Current roadheaders operating in hard material are characterized by: 1. Severe machine vibration 2. Bouncing of the boom away from the rock 3. Very high pick wear 4. Inability to sump head in bad floor conditions The reasons for this poor performance can be attributed in part to: 1. High speed of cutting head rotation 2. Inability to hold boom against rock while cutting variable hardness strata. To overcome the problems described, a new articulation method was developed utilizing four hydraulic rams to "lock" the boom in position on one axis and four hydraulic motors to rotate the boom for cutting via a turret arrangement. The slide mounted turret is hydraulically advanced for sumping into the face, independent of the machine base. To transfer cutting forces back to the rock, the machine base is held rigidly in the excavation by floor to roof or side to side rams. A cutting head mounted on the boom rotates at very low speed, but with very high torque.

Jan 1, 1987

Methods for ore reserve estimation are classified. The amount of information needed to asses ore reserves is analysed. Reference is made to gold sampling. Consideration is given to nugget effects and ore reserve estimation procedures where they are significant. Computer methods are discussed

Jan 1, 1997

By Pinter R

Several major routes connecting Northern and Southern Europe or Asia run through Austria. These highways have to surmount the alpine range which traverses Austria from west to east. In order to ensure safe driving conditions even in winter, tunnels, at times quite long ones, are necessary. Austria now has tunnels totalling 160 km in length. These tunnels are either already in use or just about completed. The Plabutsch tunnel near Graz will be one of the longest tunnels in the world: approximately 10 kilometers in length. It will be put into operation in the summer of 1987. Before construction could begin, soil and rock conditions had to be investigated by means of a test tunnel. Afterwards, excavation was begun to the full 100 m' cross section. The new Austrian tunnelling method with conventional blasting was used for the major part of the tunnel. It was necessary to have such a large tunnel cross section because a fully transverse ventilation system is installed for environmental reasons. In order to avoid air pollution from the tunnel, exhaust fumes are not allowed to escape from the tunnel portals but from two shafts, each with a diameter of 8.5 m. In this way, exhaust fumes must rise 90 meters or 240 meters before they reach the open air and will thus not affect the city. The ventilation system influences the size of the excavation, and especially the size of the ventilation caverns and the air shafts. All these factors directly influence construction and maintenance costs, and an economical optimisation leads to the appropriate dimensions for the excavation.

Jan 1, 1987

By Royle A. G

The paper describes a geostatistical structural analysis of an 80 square mile lease of the Athabasca tar sands. Each step of the analysis is presented with the ultimate objective of condensing the principal structural characteristics of the chosen regionalised variables into the opera- tional form of the variogram model. The variogram model is then used to form kriged local and global estimates, with the corresponding estimation errors.

Jan 1, 1977

By Jancar T, de Guzman M M, Matthews B, Tu J. Y

The use of computational simulation to predict the performance of existing equipment or for the design of improved mineral processing equipment will be referred to as Computational Mineral Processing (CMP) in this paper. The emphasis will be on solving the governing equations for liquid solid flows in complex geometric domains to obtain, typically, the three-dimensional distributions of velocity and pressure for the liquid phase and the velocity and concentration for the solid phase. The underlying technology, computational fluid dynamics (CFD), is very well-developed in other industries (aircraft, car and chemical) and forms a vital part of product design and analysis. The subsequent design of improved mineral processing equipment may also involve finite element structural analysis (FESA). Computational fluid dynamics (CFD) and finite element structural analysis (FESA) are part of the generic discipline of Computational Engineering and Science (CES). Ciment and Scherlis (1993) define CES as `The systematic application of computing systems and computational solution techniques to mathematical models formulated to describe and simulate phenomena of scientific and engineering interest'. Increasing computer power (Kaufmann and Smarr, 1993), is a dominant factor determining the rapid growth of industrial utilisation of CES. This increase is happening at both the supercomputer and the workstation level. Indeed, today's typical workstation, a Hewlett-Packard 735, is as powerful as a CDC 7600, the leading supercomputer in 1970. Future computer architectures are expected to become increasingly parallel (Gartner Group, 1990) allowing a sustained performance of a teraflop (a million megaflops) to be achieved well before the Sydney Olympics in the year 2000. It is recognised that the modem development of most disciplines in the physical sciences rests on the three complementary strategies of experimentation, analysis and computational simulation. As the 21st century is approached the volume of computational simulation, both fundamental and applied, is growing dramatically and the role of experimentation is diminishing. In the area of equipment design, CES provides the following advantages over experimental testing and measurement: 1. lead time in design and development is significantly reduced; 2. CES can simulate conditions not reproducible in experimental tests; 3. CES provides detailed and comprehensive information; and 4. CES is more cost-effective and time-efficient. The ultimate benefit for industry is greater productivity and hence greater profitability. The broader issues in relation to CFD are discussed by Fletcher (1993b). In the five- to ten-year time frame, growth in computer power will make it practical to combine CFD and FESA with optimisation procedures to produce a design process that is almost fully computerised. It is expected that fully automatic

Jan 1, 1995

By T O Aspinall

The Australian mineral industry involves a diverse range of expertise and skills. Within that, the mining industry, representing mine planning, mine management and equipment operation, has capital intensive, high productivity equipment and a small but skilled workforce. Continuing education for all personnel in the workforce after formal school courses will be an important contribution towards improving competitiveness. The non-tertiary sector represents a significant proportion of the workforce and requires as much attention as the tertiary educated group. Competency Based Training is now being developed for the mining industry in Australia under the National Training Board and the mining industry is well represented in establishing standards and curriculum. TAFE is a major source of accredited courses but some mining companies are also developing internal courses not necessarily for external accreditation. Articulation of such accredited courses to tertiary mining engineering courses has been considered. The education and training of equipment operators through continuing education requires attention to operating skills, an understanding of the productivity factors under the direct influence of the operator and providing product quality to the customer. The education and training of mining engineers has been widely covered and continuing close involvement of the mining industry is required to ensure well balanced courses in technical and interpersonal skills as well as motivation to continue learning for life. Postgraduate research is a part of continuing education but the mining industry has to continually address the adequate recognition of post-graduate qualifications for the increased technical or management expertise and the development of better analytical and problem solving skills which can be directed towards improving competitiveness. More attention has to be paid to providing adequate financial incentives to attract suitable students, particularly after attaining some experience, and to address their professional career path with a company so they are not significantly disadvantaged by undertaking post-graduate studies. The Chartered Professional Engineer status as provided by The Institution of Engineers, Australia to qualified candidates is being considered by The Australasian Institute of Mining and Metallurgy as a further recognition of a member's specific expertise and competence in mining and metallurgical engineering. Continuing education plays a major part in the maintenance of the expertise and competence required for a professional engineer to develop and also to retain chartered status. Continuing education will be a significant part of the education and training of all the mining workforce towards improving the competitiveness of the mining industry. The major challenges will be the motivation of all towards lifelong learning and the integration of the various programs towards providing the opportunity for a steady and satisfying career progression.

Jan 1, 1994

By Ruston R

When coal mining first commenced in Australia, the principle objective was low cost production with development directed toward recovery of 'easy' coal. Future expans- ion of these early mines into major under- ground operations was neither envisaged nor planned. As the demand for coal grew, these mines were expanded to increase output. however, the absence of initial ventilation planning brought about ad hoc systems wh;ch required continual repair and upgrading. These systems proved satisfactory in the short term because the majority of undergrouni coal mining operations were carried out at relatively shallow depths where gas emission rates were low. By comparison, coal is now being won at depths exceeding 500 metres with a corresponding increase in gas flow from the working seams and adjacent strata. The following paper addresses, firstly, the planning and institution of a ventilation system in a mine where previous inefficiencies were many, and secondly, the value of pre- planning a mine ventilation system in the early stages of mine development, and the need to continually review and upgrade the plan to account for unforeseen ^hanges.

Jan 1, 1983

Valuers of mineral properties should be aware that accountants are a major user of their opinions of value. Reliance by accountants can range from obtaining comfort that book values in balance sheets are not overstated to establishing values by which to assess the fairness of a takeover offer. Accountants using mineral property valuations clearly can't be expected to have the same level of expertise as the valuer and ""second guess"" the valuation. But they do have an obligation, under the ASC guidelines and their own professional standards, to'check the logic and reasonableness of the valuation before being able to rely on it. This means reviewing the valuation report for general sensibility, discussing the methodologies and assumptions with the valuer and being satisfied as to his competence and independence. This paper outlines how accountants use mineral property valuations, the level of scrutiny applied to such valuations and the problems commonly encountered in practice by accountants seeking to rely on them. The paper also explains how values of-mineral properties are established in company balance sheets and why these often differ, quite validly, from fair market values.

Jan 1, 1994

By E Kasai, D Maruoka, Y Konno, T Murakami

The iron ore sintering process produces approximately three per cent of carbon dioxide emission in Japan because a large amount of coke breeze is used as the main agglomeration agent. Therefore, its suppression has been required. A promising method is to replace the coke breeze with biomass char and iron-bearing materials. In this study, the effect of the utilisation of metallic iron with coke or palm kernel shell char (PKS char) as an agglomeration agent on its oxidation behaviour was examined by a series of experiments using a sintering simulator. The use of PKS char leads to a larger decrease in the pressure drop difference of the sintering bed compared to the case using coke. Furthermore, the oxidation rate of metallic iron was larger in the case using PKS char together than that using coke. It was considered that the oxidation of metallic iron was promoted because the bed-temperature increased at a faster rate and achieved a higher temperature.

Nov 8, 2021

By Schmidt CG

Parameters affecting gold elution using the AARL process are reviewed and critically analyzed in an attempt to optimise metallurgical efficiency and minimise costs in both current and future carbon adsorption operations. Such factors as acid washing, column geometry, elution temperatures and pretreatment reagents are discussed together with eluant water quality and eluate flowrates. Hot acid washing of carbon prior to gold elution has many benefits. Besides improving elution efficiency when eluting with regional water, a hot acid treatment preheats the carbon without causing any gold leakage. Laboratory data indicated that hot acid washing reduces the mass loss of carbon during thermal regeneration. The eluate going to either zinc precipitation or electrowinning is also relatively free of troublesome impurities (organic contaminants and ferrocyanides in particular). Because of the chromatographic character of the AARL elution where an ionic strength gradient is used to inhibit the readsorption of gold, column geometry plays a significant role. While practical considerations and capital costs may restrain the length of the elution column, high length/diameter ratios are advocated in order to promote the plug flow of column eluate. From both a metallurgical and costing viewpoint, the two significant factors affect- ing the AARL gold elution are temperature and cyanide addition. High temperature and high reagent additions within prescribed limits will improve metallurgical efficiencies, but a balance between energy and reagent costs is required in order to minimise overall elution costs. As pretreatment reagents constitute a considerable portion of the total elution costs, both the addition and consumption of sodium cyanide must be carefully considered. Lower cyanide additions may be effective in certain instances, but the more practical use of 0,6 bed volume of a 2-3 per cent NaCN reagent containing 2 per cent NaOH is advocated. This is equivalent to an addition of 20-30 kg NaCN and 20 kg NaOH per ton carbon Treated.

Jan 1, 1986

The information age has arrived. In every aspect of life, at the end of the second millennium, computers and information technology have made significant inroads. In mining there has been huge growth in the use of digitally controlled systems. From resource evaluation to mine planning to daily operations, information is being acquired, analysed, modeled and presented, using state-of-the-art information technology. Explosives, too, have moved into the information age. Computer controlled trucks and manufacturing plants have been developed and are now a regular feature on many mine benches. The next challenge for the explosives industry as a whole is to integrate blast initiation with information technology. The benefits are there, both to the supplier and to the end-user. Much has been written in the past about the potential for blast improvement but there are other significant advantages to a digital initiation system. These include security from unauthorised use, stock control and minimisation, reliability through testability and ease of use to name a few. So why is it taking so long? Surely the complexity of an electronic initiation system is far less than that of mobile phones that have been around for a long time. The answer, it seems, lies in the level of new technologies that need to be developed. There are enormous technological hurdles to be overcome in order to put into the market a cost-effective, reliable, user-friendly electronic initiation system. The most significant of these are:Safely and reliably initiating an explosive from an electronic device powered by a small capacitor. Prior to the development of electronic detonators primary initiation of explosives was by shock tube spit or by passing large currents and voltages down a pair of wires. Electronic detonators do not have that luxury. For example the energy stored in a æBeethovenÆ exploder is more than 500 times greater than that available to an electronic detonator. Communicating to a multitude of devices over very long cables installed by miners in harsh conditions. The deployment of an electronic detonator system has been likened to building a large telephone exchange in the rain and getting it to work perfectly first time! New communications protocols needed to be developed and tested. Wiring and connection systems have to be designed to survive the mining environment. In spite of these technological hurdles most of the major explosives manufacturers have persisted with electronic initiation systems and we are now, in 1999, starting to see the results of these multi-million dollar efforts. At SMI we are often asked many questions about this technology. The remainder of this paper seeks to answer those most often asked. As with any business linked to information technology todayÆs breaking news is tomorrowÆs archive and we expect the rate of development and understanding to accelerate as these technologies become accepted by the global mining industry.

Jan 1, 1999

By Rabie A. S, Fouad K. M, Ammar A. A

The existence of Gabal El Kahfa ring complex, located in the Eastern Desert of Egypt, has been ascertained from aeromagnetic and aeroradiometric survey data as well as by aerial photography. Two maps for -the net aerial radiometric measurements reduced to ground level and aerial magnetic data corrected for the regional normal gradient of the earth's magnetic field have been constructed. The aeroradioactivity data have been interpreted geologically and analyzed statistically to outline various radiometric units and compute their charac- teristic statistics. The ring complex showed a circular radiometric feature and yielded a radiometric mean background and a standard deviation of 6.48 and 0.89 pR/h respectively. Besides, the observations showed a normal distribution. The aeromagnetic data have been reduced to the north magnetic pole, then filtered to produce the regional-and residual-component maps. Statistical trend analysis was conducted for the tectonic linea- ments resulting from the three magnetic maps, to define the structural framework of the area under study. This statistical study proved the exis- tence of trends in the east-west, northwest-south- east, northeast-southwest and north-south directions. The ring complex is characterized by a circular magnetic feature, whose average relief is 2150 nT. It is included within a high east-west trending magnetic zone. The latter represents a deep-seated uplift or anticline which is bordered from all sides by some faults of different trends.

Jan 1, 1988

Upon subduction, water is liberated from the sediments and the porous struc- ture of the oceanic crust and from de- hydration of minerals for redistribution and chemical reaction. A survey of pro- cesses which are likely to occur along the subducting plate reveals that water may well be basic in subduction induced gas generation, magma formation and ore deposition. In analogy to the industrial water gas process, reaction of water with car- bonaceous matter, in subducted sediments is likely to yield substantial volumes of hydrogen and carbon dioxide. While water and carbon dioxide appear to play a determining role in the development of differentiated magmas, hydrogen will react with metal sulfides and sulfur to form hydrogen sulfide which is essential in sulfide ore depo- sition. A survey of possible metal extrac- tion chemistry along subduction suggests a stepwise solubilization of metals from sediments and oceanic crust, and a poten tial accumulation of dissolved metals in zones of characteristic composition. The metal spectrum in ore deposits at near surface appears to reflect the com- position of the solution in the respec- tive subduction zone. A tendency for preferential solubi- lization of copper at subductidn level, from among the transition metals, an in- creasing generation of hydrogen sulfide in the sane direction and partition effects as well as sulfide precipitation characteristics lead to enrichment in copper and to its selective deposition in the direction towards the trench as observed in S. Latin America. A postscript deals with the formation of native copper.

Jan 1, 1986

By G Chitombo, M Ruest

In surface mining, studies of the kinematics of blasted rocks using high speed film/video image analysis have allowed the estimation of the starting time, direction and magnitude of visible movement of fixed sections of the free face. Horizontal displacement versus time plots from discrete targets at the face generally report changes in slope over very small time intervals. These changes indicate step increases in velocity due to the action of explosive gases. In practice, the onset of rock mass movement, different to localised spalling, has been associated with a response time which exceeds the combined times of detonation, propagation and reflection of stress waves. This time is referred to as minimum response or burden movement time. As an engineering index, burden movement time has been used to provide guidelines for the selection of inter-hole and inter-row delay sequences in production blasting. With respect to improving breakage and fragmentation, it has been demonstrated that the delay interval between adjacent explosive charges should be less than the expected burden movement time. Similarly to reduce confinement between rows, delay intervals should exceed the expected burden movement time. The Hybrid Stress Blasting Model (HSBM) is a modelling framework that dynamically links an ideal and non-ideal explosives detonation code to a geomechanical rock model. This blast simulation tool is aimed at analysing the role played by different explosive formulations in fragmenting and/or damaging various rock types under different degrees of confinement. In the current framework, the rock behaviour under extremely high pressures and loading rates is calibrated from shock tests and the role of the explosive in fracture growth is accounted for and assumes a compressible fluid flowing through the explicit fracture network. The model is being developed as part of an international collaborative research project funded by a consortium of companies comprised of explosive and equipment suppliers and major mining houses. As part of the development and validation of the HSBM project, data from literature addressing the kinematics of the rock mass (ie burden displacement, face velocities and response times) has been collated and used to evaluate the current version of the code. A series of numerical experiments have been conducted with the view to: evaluate the response of the rock mass to changes in burden distance given by the impact of both stress waves and radial gas flow pressure;compare the modelling outcomes in terms of displacement, response time and face velocities to documented field observations; andcompare stress induced and stress/gas induced modes in terms of burden displacement outcomes. Results from these experiments have shown that in its current form the model is able to capture the trends observed and measured in practice. This is with respect to the simulation of burden displacement, response time and average face velocities for different geometries and charging conditions. The experiments have served as consistency checks which form part of an ongoing and comprehensive evaluation and validation of the HSBM code also aimed at addressing some of its current limitations.

Jan 1, 2007

This paper will examine the prospects for Queensland's non-fuel mineral industries as we approach the 21st century. The opportunity for growth is unprecedented. Exploitation of recent discoveries, proposals and developments in downstream processing are predicted to contribute to a doubling of the State's mineral exports to around $10 billion by the year 2000. In 1995 - 96 the value of Queensland's mineral production was $6 billion, comprising $1892 million metallic minerals, $127 million non-metallic minerals and $4 025 million total fuel minerals. For many years Queensland has been among the world's major producers of copper, silver, lead, zinc, bauxite and mineral sands. Recently Queensland has become an important producer of magnesia. Queensland's ability to compete results from its location close to rapidly developing Asian markets, the diversity of its major minerals and an increasing ability to add value to the resources base using competitively priced energy. Northwest Queensland is one of the richest base metal provinces on earth following the recent discovery of five world-class orebodies. Of these deposits, Osborne (copper-gold) has commenced production and Cannington (silver-lead-zinc) and Ernest Henry (copper-gold) are scheduled to be developed by 1997. Century Zinc Limited and the Queensland Government are negotiating with native title claimants on the development of Century (zinc-lead-silver). Expansion is in progress at the Mount Isa copper mine (renamed the Enterprise) and copper smelter and a high analysis fertiliser project may be developed based on Phosphate Hill. Korea Zinc Company Limited has reached agreement to construct and operate a 350 000 Mtpa zinc smelter/refinery near Townsville. There are future expansion prospects for the vertically integrated major industrial mineral operations based on Weipa bauxite and Kunwarara magnesite. Upgrading of the Boyne Island aluminium smelter will require a doubling of alumina consumption. Downstream processing options for Kunwarara magnesite are being investigated and are expected to lead to increases in production and the manufacture of a range of value-added products. At the Yabulu refinery near Townsville, nickel and cobalt production using imported ore is to be increased and a commercial cobalt plant is to be built. Additional opportunities for further processing and manufacturing are associated with proposed new mines at Ely (bauxite), Skardon River (kaolin) and Goondicum (ilmenite). Recently discovered resources of zeolite and perlite also offer exciting development possibilities. Other manufacturing opportunities such as glass and ceramics based on local and plentiful clay and silica sand could replace imports. Silica sand at Cape Flattery is currently exported and production is expected to double.

Jan 1, 1997

By M Danišík

Two drill core samples of haematite/goethite from the Robe River (Western Australia) channel iron ore deposits (CID) were dated using (U-Th)/He methods in order to constrain the timing of iron oxide formation and thereby provide a temporal context for CID genesis. (U-Th)/He ages (He ages) from these samples range from the late Oligocene to Late Miocene and despite a high degree of scatter, they corroborate relationships expected from the internal ooidal stratigraphy: For individual ooids, the ages from haematitic core are older than or indistinguishable from the ages of the surrounding goethitic cortex. The goethitic cortices are, in turn, older than the ferruginised wood fragments recovered from the cementing goethitic matrix.The data suggest the following succession of ore formation phases:• Haematitic cores in ooids of both samples formed in the Early to Middle Miocene.• Goethitic cortices of both samples formed in the late Middle to early Late Miocene. This appears to be the age of goethite cortex formation regardless of depth in the core, which does not support the top-down infill model, genetic model proposed by Heim et al (2006).• Wood fragments form a prominent component of the matrix and were ferruginised during the Late Miocene. Thus the data suggest that the unique environmental conditions for the CID formation existed during the Miocene.A methodological implication of this study is that the temperature utilised for He-extraction from iron oxides has a critical impact on the mobility of parent nuclides. The typical ~1100°C laser heating used for crystalline minerals like apatite or zircon induces loss of U and Th and results in erroneously old ages.

Jul 11, 2011

The paper considers the nature of outbursts of coal and firedamp as they occur. t follows the development of methods of working used to try and induce outbursts safely under controlled conditions and details the life support systems used to provide maximum rotection to persons who may be affected by s_lontaneous outbursts. Tilt: NATURE OF OUTBURSTS IN THE UNITED KINGDOM .1y some areas in the coalfields of the ingdom are affected by outbursts of :hal and firedamp. The main area affected is he western end of the Anthracite coalfield r: West Wales. In this area 206 outbursts .eve been recorded resulting in the loss of 8 lives. Anthracite is a high rank coal produced v the geological effects of age, depth and ynamic metamorphism. Outbursts have been xperienced over a wide area of the anthracite field but have been most frequent, and most evere, in the areas where carbon content is its highest and where the coal measures cave been subjected to the highest degree of eulting and overthrusting. Most outbursts ire associated with geological abnormalities ,:id the coal ejected during outbursts is sually of a soft and powdery nature.

Jan 1, 1980

By T R. Stacey

South Africa has a long history of rockbursts, some 100 years. During this time much research and many developments have taken place in the country to limit the occurrence of rockbursts, and to mitigate their effects. In this paper I shall present a personal view of what I consider to be important achievements, and contributions made. Some of these are: planning of stope layouts, and the use of strike barrier pillars; recognition of energy as a key factor, the use of the energy release rate ERR as a layout planning criterion, and development of MINSIM for calculation of ERR and stope planning; sequential grid stope layouts; use of backfill for stope support; and, development yielding support elements, and dynamic testing of stope and tunnel supports. The record shows the establishment of a rock engineering research powerhouse over a 40 to 50 year period and, unfortunately, the complete breakdown of this capability in the subsequent 10 years. CITATION:Stacey, T R, 2018. A personal review of South African rockburst research, experience and lessons learnt, in Proceedings The Fourth Australasian Ground Control in Mining Conference (AusRock), pp 5–16 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 30, 2018

By R Morrison, P Walters, B Adair, V Jokovic

‘Grade Engineering<sub>®</sub> is an integrated approach to coarse rejection that matches a suite of separation technologies to ore specific characteristics and compares the net value of rejecting low value components in current feed streams to existing mine plans as part of a system-view’ (Walters, 2017). Two of these technologies are directly recoverable through screening stages: Natural Deportment and Induced Deportment. The potential for taking advantage of “Natural Deportment” by size following blasting and crushing has been demonstrated for a range of ore types. Simple and low cost screening can in some cases generate a fine product with improved grade and a lower grade oversize which can be directed to leach or to waste. Where an ore body consists of many different ore types, the traditional approach of blending to metal grade will often add to complexity of treatment, which will reduce the effect of “natural deportment” by size.CITATION: Jokovic, V, Walters, P, Adair, B and Morrison, R, 2018. Applying enhanced grade engineering to complex ore bodies, in Proceedings Complex Orebodies Conference 2018, pp 21–23 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 21, 2018

For the last decade Australia has been the leading exporter of both steam and coking coal. In the ten-year period 1989 - 1998 steam coal exports increased by 93 per cent and metallurgical coal exports increased by 50 per cent. However, profitability of the steam coal sector has been disappointing. The coking coal sector, especially the hard coking coal segment, has fared better but its profitability was more because of its ability to maintain relatively high prices rather than its inherent productivity. Until quite recently the Australian coking coal sector was widely expected to be able to maintain this comfortable state without undue effort for the three major æpartnersÆ; the companies, the State Government and the unions. But coking coal could now be heading down the path followed by steam coal that ends with long-term over-supply and, despite steady improvements in productivity, poor profitability. Steam coal entered the ænewÆ era of long-term over-supply some years ago. Over-supply was due to the rapid increase in production in Indonesia, often from new mines and Australia. AustraliaÆs production rise was underlain by the apparent belief that the best way to lower costs was to increase production. In the first couple of years costs didnÆt fall much but the additional tonnage was sold at lower and lower prices into the spot market. By mid-1998 the difference between the contract price set with Japanese utilities and spot sales was often in excess of $US12 per tonne. Japanese contract prices and tonnages have since fallen significantly. Steam coal has moved from being a product to being a commodity. Any profits are due more to the low Australian dollar rather than inherent mine productivity. Seaborne coking coal trade has been dominated by Australia, Canada and the USA, with the USA becoming less competitive. Unfortunately, when the Queensland capacity expansion was well down the pipeline, the Asian financial crisis occurred and the Japanese economy entered what appears to be a long-term recession. Contract prices fell 18 per cent, tonnages decreased and some mines have been reclassified as supplying lower priced coking coal. The paper analyses past and expected future trends in labour and mine productivity, rail freight and FOB export port cash and total costs of the Australian steam coal and coking coal sectors and discusses the market outlook for Australia. The future economic viability of the industry is analysed and discussed in the light of the rapidly changing global environment.

Jan 1, 2000