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By M Hourn, G Anderson, V Lawson, P Voigt, D Mallah

As mine head grades decline and orebodies become more complex, traditional mineral processing techniques and flow sheets to achieve saleable concentrate become more difficult to design and construct. Mines with lower quality concentrates or concentrates with penalty elements are particularly under threat. The economics of such operations are far more susceptible to metal price fluctuations, concentrate treatment terms and the availability of other, cleaner concentrates. Additional value may be realised for these orebodies through improved recovery by producing a low grade middling concentrate for further processing, in conjunction with a saleable concentrate.The most economic effective way to reduce impurity levels is to do so as early as possible in the mining value chain. Technologies such as fine grinding and fine particle flotation are well established as effective methods for impurity rejection in mineral processing. What is often overlooked is how a hydrometallurgical process could also be integrated in the overall flow sheet to achieve higher overall recovery at the mill. In the base metals environment, this is probably because hydrometallurgical processes are associated with production of metal, or require the use of expensive and toxic precipitating agents once the minerals of interest are in solution. These processes can be very expensive, particularly with rising power costs and poor economies of scale in capital costs associated with low production rates from middling streams. Glencore Technology (GT) has recent experience in the treatment of middling and low grade concentrate streams and also tailings streams to complement a concentrator flow sheet in a refractory gold and base metals setting. The value proposition is the isolation of a low grade middling concentrate from the primary circuit or the tailings stream for upgrading to an intermediate product with an equal or higher grade than the primary concentrate to allow blending for sale. This allows the plant to operate on a more favourable part of the grade-recovery curve while avoiding the expense of metal production. For existing operations this is particularly attractive since it can be added to the flow sheet with no process interruptions. Two case studies are examined showing flow sheets and costings to arrive at the value proposition of the GT low grade treatment flow sheet.CITATION:Voigt, P, Hourn, M, Lawson, V, Anderson, G and Mallah, D, 2017. Economic recovery and upgrade of metals from middling and tailing streams, in Proceedings MetPlant 2017, pp 289–297 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 11, 2017

By M Lee, J F. Carswell, G Reitsema

"The increased costs of underground mining have continually challenged engineers to identify opportunities for alternatives to common approaches to underground development. Considerations to the design of horizontal and vertical development at the Dugald River mine targeted inclined raise boring to reduce horizontal development, not only to reduce cost, but to allow development activities to focus on other areas of the mine.The mine plan consists of 50 raise bored ventilation shafts, of which 17 have been mined to date with diameters ranging from 3.1 m to 5 m and lengths from 30 m to 200 m. The expected performance and stability of these shafts has been determined using methodologies proposed by McCracken and Stacey (1989) and further refined by Peck, Coombes and Lee (2011). Actual raise performances have been collated and compared to a database of raise bore performances across Australia as presented by Coombes, Lee and Peck (2011), and form a database of raise bore performance specific to Dugald River.Opportunities to further optimise the mine plan and reduce costs have seen the introduction of large diameter-inclined raise bored ventilation shafts to minimise the required lateral development to connect the ventilation circuits. Large diameter inclined shafts ranging between 3.1 m and 4.5 m in diameter have been successfully mined with dips down to 70°, reducing the cost of lateral development by more than $1 million over the next two years.Both technical and operational challenges were overcome in the mining of large diameter-inclined raise bores, including modification of: existing methodologies of assessing shaft wall stability for inclined raises. These included variations of the McCracken and Stacey method and the utilisation of the modified stability number (N’) previously developed for stope performance (Potvin, 1988). both the collar and toe development profiles, including the general set-up of the raise bore drill rig to reduce the operational risks associated with angled raises.Due to their success, inclined raises have been designed for subsequent stages of the life-of-mine ventilation system at Dugald River. This has resulted in significant capital cost savings for the mine.CITATION:Carswell, J F, Reitsema, G and Lee, M, 2017. Vertical and inclined raise bore performance at Dugald River mine, in Proceedings 13th AusIMM Underground Operators’ Conference 2017, pp 313–320 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Oct 16, 2017

By M W. N Buxton, M S. Shishvan, J Benndorf

The flow of information, and consequently the decision-making along the chain of mining from exploration to beneficiation, typically occurs in a discontinuous fashion over long timespans. In addition, due to the uncertain nature of the knowledge about deposits and the inherent spatial distribution of material characteristics, actual production performance in terms of produced ore grades and quantity and extraction process efficiency often deviate from expectations. Reconciliation exercises to adjust mineral reserve models and planning assumptions are performed with timely lags of weeks, months or even years.With the development of modern information and communication technology over the last decade, a flood of data about different aspects of the production process is available in a real-time manner. For example, sensor technology enables online characterisation of geochemical, mineralogical and physical material characteristics on conveyor belts or at working faces. The ability to utilise this additional information and feed it back into reserve block models and planning assumptions opens up new opportunities to continuously control the decisions made in production planning to increase resource recovery and process efficiency. This leads to a change in paradigm from a discontinuous method to near real-time reserve reconciliation and model updating, which calls for suitable modelling and optimisation methodologies to quantify prior knowledge in the reserve model, process and integrate information from different sensor sources, back propagate the gain in information into reserve models and efficiently optimise operational decisions in real-time.This paper introduces the concept of an integrated closed-loop framework for real-time reserve management, incorporating sensor-based material characterisation, geostatistical modelling under uncertainty, modern data assimilation methods for sequential model updating and mining system simulation and optimisation. The effectiveness of the framework and the value added will be demonstrated in an illustrative case study.CITATION:Benndorf, J, Buxton, M W N and Shishvan, M S, 2014. Sensor-based real-time resource model reconciliation for improved mine production control – a conceptual framework, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014, pp 223–234 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014

By P J. Jacobs

FORACO is the third-largest global drilling services company, and recently celebrated its 50th anniversary. The company’s historical roots are in French-speaking West Africa, delivering hydrogeological drilling services to resource companies, villages and regional centres. Today, FORACO operates over 300 drill rigs in more than 20 countries.The Asia Pacific region of FORACO runs a fleet of 37 late model drilling rigs servicing the diamond drilling, reverse circulation, coal, coal seam gas and hydro drilling sectors.FORACO Australia has extensive experience delivering large diameter coring (LDC) samples to the resource community. In the past three years, the company has been involved in six 8? coring projects in a variety of geographies and geologies, including iron ore, coal and uranium. FORACO has developed proprietary equipment and techniques to deliver cost-effective LDC samples with outstanding core recovery.The FORACO LDC sampling system is hands free, with mechanised rod and corebarrel handing to minimise the risk of manual handling injuries. Sample volumes are six times PQ (the common industry standard for large core samples), with core recoveries consistently above 96 per cent in extremely difficult formations.Eight inch coring is a conventional coring system suited to hole depths up to 150 m. For deeper applications, FORACO has recently invested over $4 M in a 6? wireline coring system capable of achieving depths of 300 m.CITATION:Jacobs, P J, 2014. Large diameter core sampling, in Proceedings Sampling 2014 , pp 71–76 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 29, 2014

Reverse sensitivity is a critical issue for all extractive activities. Extractive industries can only establish in the location of the particular resource sought to be extracted. Avoiding a location near sensitive activities (such as residential activities) may, therefore, be more difficult for extractive industries, than for other industry (such as dairy factories).   This paper focuses on the following matters: +        principles to be derived from case law, +       district and regional council approaches managing reverse sensitivity effects, and +        avoiding, remedying or mitigating reverse sensitivity effects in the future.

Jan 1, 2006

By R M. Lonsdale, M D. Goodz

"With an ever-increasing dynamic business environment, successful stakeholder engagement is becoming more fundamental to achieving desired outcomes in today’s mineral resource industries. It is imperative to be proactive in correctly identifying all stakeholders and initiating early contact. This builds trust relationships, which are essential to ensure future decision-making processes are streamlined.Often neglected is a company’s obligation to select the correct team to represent its values and mission. The company requires representation that demonstrates an understanding and commitment to its operations and people, the safety and health of the community and environment, and most importantly, represents the decision makers. Stakeholders need to believe that the engagement process is genuine and that the company representatives are aligned towards targeted outcomes that will benefit all stakeholders in some way.Among others, stakeholders include shareholders, staff, families, community, service and supply providers, regulators, land managers and the political/financial framework. Depending upon the mineral product, stakeholders may include ports, international offtake clients and those along the route. New stakeholders continually evolve during mine life, and the engagement process requires an investor–community–public relations (IR/CR/PR) team to anticipate change and actively scan perception and chatter.Successful communication is more than delivering a message; it is about engaging stakeholders and confirming the feedback loop to ensure the correct message is communicated and the relationship is strengthened.The nature of the mining company’s branding and the public’s perception of company intentions will dictate whether there is willingness to allow the company to follow its desired path. This in turn controls the company’s most scarce resource – time. Timing is fundamental to achieving targeted outcomes with minimal cost and delays, marketing in a peak cycle and acquiring critical capital for development and growth.Branding and stakeholder engagement effectively controls and extends to the company its social licence to operate.CITATION:Goodz, M D and Lonsdale, R M, 2016. Stakeholder engagement – who are you, what do you stand for and why? In Proceedings International Mine Management Conference, pp 239-248 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 22, 2016

By Hoffmann CF

Thermal conditions at depths of several k.i'-.r.,etres in hydrothermal systems are a major (actor controlling gold transport into the epithermal environment. Understanding of the coupling of thermal, metal and ligand (HZZ S) sources in the root zones of hydrothermal systems therefore becomes important for the application of tectonic and igneous petrochem- ical studies to regional scale precious metal exploration. The evaluation of favourable conditions in this source zone and application to explor- ation rests on a detailed knowledge of the gases, H2S, CO2 hydrocarbons and other trace components preserved in fluid inclusions. Recent developments in analytical techniques now permit examination of these components and the recognition of complex hydrocarbons in rluid inclusions from epithermal and other lydrothermal systems appears promising for ieoosit-source correlation.

Jan 1, 1987

By Dyson NF

Nickel sulphide precipitated from waste liquors at the Yabulu plant of Queensland Nickel Pty Ltd was pressure leached under various conditions. Leaching at 130¦C and 700 kPa of air dissolved 95 per cent of the nickel as the sulphate in less than 2 h. Leaching at 130¦C and 350 kPa of oxygen dis- solved 95 per cent of the nickel in less than 1 h. Dissolution was faster with oxygen than with the equivalent pressure of air. Crystallization of hydrated nickel sul- phate from the resulting clarified leachate is readily achieved. Because the sulphide pre- cipitate also contains minor amounts of iron, copper and cobalt, the crystallization product contains these metals in excess of the amounts required for electrolytic-grade nickel sul- phate. This grade of product could only be produced if the contaminants were removed prior to crystallization. Alternatively, the "crude" nickel sulphate could find a market as a feed for the electrolytic production of Ni-Fe coatings.

Jan 1, 1984

Sheaves are a critical safety component in a winding system and are expected to survive such extreme loading events as rope break. Sheave designs have often been developed and evolved empirically, consequently many existing sheaves are not necessarily subjected to the detailed analyses that are possible using todayÆs design tools. The design philosophy for sheaves is that the rope should be the weakest link in the system so that associated equipment can function safely for any load up to rope break. A number of failure mechanisms must be considered, but buckling is often prominent. During the course of investigating the feasibility of upgrading the hoisting capacity of a winding system, the capacity of all critical components was reviewed. The sheaves in the system were found to have insufficient spoke buckling capacity for the specified rope. A proposal to increase the spoke buckling capacity by connecting spokes together using a simple tie arrangement was evaluated and found ineffective. An alternative tie arrangement concept was developed and evaluated and shown to be adequate. This paper describes the finite element model, analysis approach and results for the original sheave and the two modifications. The contribution of the sheave rim to the total buckling capacity is evaluated. Some practical issues for spoke tie modifications are discussed.

Jan 1, 2005

By C M. Standen

The SAG mill at Rasp Mine has undergone a number of liner design modifications since commissioning in 2012, making liner wear and failure difficult to predict from historical data. During 2017, several instances of liner failure or near failure were experienced resulting in unplanned downtime for emergency relines or to patch liners in the lead up to a planned shutdown. The strategy for relining mills is often to minimise the frequency of relines (and subsequent shutdown costs) by extending liner life, achieved through design modifications. However, it was observed that as the Rasp SAG mill liners wear, mill performance declined with power draw increasing and throughput declining. Opportunity and inefficiency costs start to erode the revenue per additional tonne milled for a given set of liners, and in turn the benefit of delaying relines. As such, optimising the frequency of relines becomes a trade-off between reline costs and opportunity/inefficiency costs in delaying relines. The aim of this paper is to demonstrate a frame work for analysing costs using a marginal economic analysis with the assumption that the Law of Diminishing Returns can be applied to the life of mill liners. The SAG mill operating variables can be modelled to determine their impact on costs and an optimal reline point can be defined where the total costs are minimised. This prevents unexpected failures due to accelerated wear by providing justification to reline earlier and thereby allowing efforts to be focused on sustaining milling performance.CITATION:Standen, C M, 2018. An economic approach to optimising mill reline frequency – a case study of SAG mill relines at Rasp mine, in Proceedings 14th AusIMM Mill Operators' Conference 2018, pp 197–206 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 29, 2018

There is no doubt that the mining sector is considered to be the backbone of many countries. Furthermore, it has played an important role in the prosperity of nations, whether developed or developing. Saudi Arabia is one of these countries that has a large variety of metallic and non-metallic mineral resources that range in size and value occurrences of limited potential to deposits large enough to sustain profitable exploitation. Therefore, the Saudi government needs to reinforce the capacity of the sectoral institutions to better regulate and promote the sustainable development of the sector. The ability to overcome the administrative and legal complications that constrain private sector participation in the minerals sector, through new mining code which will streamline the procedures for obtaining licenses and will add more predictability and transparency to the application process, are proposed for increasing the sustainable development. This paper will outline how the Saudi government is tackling the major challenges that face the minerals industry. This paper provides the background to the Saudi Arabian mineral sector and its industrial base. Finally, the paper identifies the problems and constraints that face the minerals sector in Saudi Arabia and provides an assessment of the effects of government policies and planning efforts in the minerals sector, particularly during the period of the development plans which started in 1970.

Jan 1, 2009

By D Symonds, S S. Kanchibotla, L Kennelly, G McNamara, J Gaunt, B Adiyansyah

Ban Houayxai is a gold-silver mine operated by Phu Bia Mining Limited in Laos since 2012. The first two years of operation processed predominately soft oxidised ore but subsequent years were expected to process more fresh hard ore. Fragmentation of the fresh primary ores was also expected to be much coarser than for the soft oxide ores. This coarser and harder ore is expected to significantly reduce mill throughput and mining productivity. The Ban Houayxai management realised the potential downside risk when processing fresh harder ores and implemented a blast optimisation project to deliver finer fresh ore to the mill without unduly increasing blast induced dilution and damage.JKTech and the Ban Houayxai drill and blast team began a joint blast optimisation project in April 2013 to achieve finer fragmentation from fresh ores. This was achieved by modifying the bench geometry, blast patterns and applying exceptionally high levels of quality control during implementation. Blast induced ore loss and dilution was controlled by adjusting the ore blocks for blast movement. Finer fragmentation from these modified designs improved mill throughput for the hard fresh ore by 46 per cent above design on average. These new practices have been embedded in site operating procedures and have provided a quick reference ‘cookbook’ document for the engineers.CITATION:Gaunt, J, Symonds, D, McNamara, G, Adiyansyah, B, Kennelly, L, Sellers, E J and Kanchibotla, S S, 2015. Optimisation of drill and blast for mill throughput improvement at Ban Houayxai Mine, in Proceedings 11th International Symposium on Rock Fragmentation by Blasting, pp 307–314 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 24, 2015

By M Badawi, Y Foucaud, C Veloso, J Laine, A C. Araujo

Iron is one of the most exchanged commodities worldwide. Its use for steelmaking explains the growing demand in the metal which remains mainly produced by the mining and the beneficiation of iron ores. Flotation is the most used mineral separation technique worldwide, processing several billion tonnes (Bt) of ore annually, including, in some cases, hematite and magnetite ores. Based on the physicalchemical properties of mineral surfaces, flotation aims to selectively adsorb molecules that render mineral surfaces either hydrophobic or hydrophilic, known as collectors and depressants, respectively. Hydrophobic particles are then recovered in the froth by the injection of gas bubbles travelling up in the cell and attaching the hydrophobic particles. However, despite the popularity and the good performances of flotation, mining industry faces new challenges of decreasing grades and increased mineralogical complexness in ores. Many flotation variables, especially when related to reagent adsorption, remain poorly understood and it becomes necessary to gain knowledge to enhance the existing processes. Molecular modelling techniques like the density functional theory or molecular dynamics simulations (ie Classical molecular dynamics or Ab initio Molecular Dynamics) currently represent powerful tools for different applications in material sciences, like catalysis or depollution purposes. They have recently been successfully applied in the flotation area, with an increasing number of publications dealing with this topic every year. These tools provide crucial information on bulk and surface properties as well as on the adsorption mechanisms of reagents on mineral surfaces, key step in the flotation process, and synergetic effect of collector mixtures. A better understanding of the adsorption mechanisms of flotation reagents, provided by molecular simulations, will help to finely choose flotation reagents, and even lead to the development of new reagents formulations. Overall, these tools enable the discovery of practical and industrial solutions to improve the flotation process, which will undoubtedly help the mining industry to face its future challenges.

Nov 8, 2021

By J H. Park, R R. Kim, H S. Park, H J. Kim

This study focuses on the recovery of valuable metals, specifically silver (Ag) and palladium (Pd), from copper-containing sludge (with copper content less than 20 per cent) generated during PCB processing and from spent petrochemical catalysts used in vapour decomposition during oil refining processes. The present results indicate that an increase in the mixing ratio of alumina-based spent catalyst leads to a decrease in the recovery rate of Ag and Pd. The recovery rates for Ag and Pd range from 84 per cent to 96 per cent and 80 per cent to 98 per cent, respectively. This trend is attributed to the increased emulsification of copper droplets containing Ag and Pd in the slag. The emulsification is caused by the decrease in the settling velocity of the copper droplets due to the increased viscosity of the slag as well as by the decrease in the slag-metal interfacial tension due to an increase in sulfur content at higher mixing ratio of spent catalyst.

Jun 19, 2024

By I C. Carrasco, V G. Mirada, J F. D Domingo, F S. Leite

This paper investigates ore loss and dilution produced by rock movement in bench blasting. A total of four blasts, in which electronic detonators have been used, were monitored in Cobre Las Cruces Open Pit Mine (FQM Ltd) in Gerena (Sevilla, Spain). Rock motion has been obtained in 137 points of the free face and 6 points inside the block. Multiple liner regression has been applied to predict rock motion and estimate ore dilution as a function of hole coordinates, rock contacts, powder factor/hole, amount of explosive per blasthole, burden, spacing, hole length, stemming length, explosive energy, hole row, subdrilling, blast sequence, stiffness ratio, blasthole distance to free face, rock density and Young’s modulus. The model is statistically significant with a determination coefficient over 0.8. Rock motion measurements in 31 more points have been used to validate the model and to show a reduction in ore dilution.CITATION:Domingo, J F D, Leite, F S, Mirada, V G and Carrasco, I C, 2015. Dilution, ore grade and blast movement calculation model, in Proceedings 11th International Symposium on Rock Fragmentation by Blasting, pp 71–78 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 24, 2015

By G Cao, Y R. Cui, J X. Zhao, H P. Gui, G H. Wang, Z M. Wang, M M. Ren, B Li

Pyro-metallurgy is still the main process for lead production and a lot of lead direct smelting processes have been developed in recent years. All the processes will experience two steps in common. The first is the oxidisation of PbS to PbO and then reduction from PbO to Pb, furthermore, from ZnO to Zn. So, the composition of melts, especially the slag composition at reduction step change continuously. Up to now, there are few systematic results on the slag physical-chemical properties with its composition change. In this work, the typical lead direct smelting processes were analysed from theoretical and practical standpoints. The full-period slag composition and slag melting point change were compared. Especially, to the PbO and ZnO reduction steps, based on the full-period slag composition change, the slag properties were predicted. Based on dust composition and test results, the mechanism of Pb compound evaporation and its effect on practice and measurement of high PbO bearing slag physical-chemical property is discussed. It is suggested that to restrain the evaporation in practice and to obtain more accurate measurement results of physicochemical properties of smelting slag are the key problem not only to set high efficiency, energy saving process, but also to environmental pollution control.

Aug 21, 2024

By J Bean

Iluka Resources Ltd developed the Jacinth-Ambrosia Mine (Jacinth) in the Eucla Basin during 2009 and 2010. In this arid climate the operation relies on hyper-saline groundwater from a palaeochannel for process and potable water supplies. The water is hyper-saline, acidic and mildly reducing, with high ferrous iron concentrations. Ferrolysis commences on exposure of water to oxygen, resulting in increased acidity and the conversion of dissolved ferrous iron to insoluble ferrihydrite. The unstable groundwater forces a careful balance between interventions relating to maintaining pipeline efficiency, corrosion protection and processing aspects. Providing an oxidising environment at the head of the pipeline will result in the precipitation of akaganenite and goethite in the pipeline, which over time reduces pipeline efficiency. However, sending too much ferrous iron forward may reduce processing performance.The processing plant experiences changes in water chemistry in response to the variability of iron concentrations and pH within the pipeline, and the spatial and chemical variability of ore. As the main orebody at Jacinth contains little buffering capacity a source of carbonate in the overburden is carefully used to allow the cost-effective control of process water pH.This paper highlights the importance of understanding the chemistry of saline make-up water, ore, and overburden when designing water treatment facilities and heavy mineral processing facilities.

Oct 5, 2011

By C Beal

Proper understanding and management of production drilling in sublevel cave (SLC) mines is essential for meeting production targets and for avoiding inefficiencies that could lead to costly bottlenecks. In many SLC mine management models drilling is considered a derivative activity of firing and bogging. Its scheduling is considered to be implied in a firing schedule and given an arbitrary target completion, ‘several weeks’ or ‘a month’, ahead of production firing. Like development, drilling activities are most efficient when conducted separately from other production activities. Unlike development, however, it is not apparent during planning and feasibility how far in advance of firing drilling activities ought to be conducted. This paper presents a method of defining a minimum threshold of drilled stocks above which drilling, firing and bogging operations occur most efficiently. As an example, the drilling activities, procedures, and maintenance at Glencore Xstrata’s Ernest Henry Mine are presented, and the larger scale consequences of improvements to these areas are presented to illustrate their importance in the operation of an SLC mine.CITATION:Beal, C, 2014. Understanding the role of production drilling and drilled stocks in efficient operation of a sublevel cave mine, in Proceedings 12th AusIMM Underground Operators’ Conference 2014 , pp 235–242 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Mar 24, 2014

Mining is a global industry. The conference is a good example of this, as itÆs jointly organised by professional associations from Canada, Australia and South Africa, and has attracted speakers and delegates from around the world. I commend the organisers for their initiative. I am pleased to be asked to participate in this panel û although I would hasten to add I see myself as perhaps an informed observer rather than an expert. It wonÆt be news to most in this room that AustraliaÆs mining sector is booming. As one of the most productive and diversified mineral regions in the world, this activity is also something that has not escaped the attention of CanadaÆs largest mining companies! This means that I follow what is happening in the industry and more specifically what might be occurring here. Two-way investment between Canada and Australia stood at $9.8 billion in 2005 with Canada as the seventh largest overall investor in Australia with $8.22 billion in investments. The majority of this investment is by Canadian minerals and metals companies. In recognition of the importance of Canadian investment in this sector in Australia, I maintain close contact with our companies. By way of example, in the past two months I spent a week in Western Australia visiting Perth and meeting with companies for example, like Teck Cominco and LionOre as well as seeing various Barrick Gold operations in Kalgoorlie. I attended the opening of AlcanÆs new Asia Pacific Headquarters in Brisbane in August and just two weeks ago was in Cowal, NSW for the opening of BarrickÆs new mine there. Having met with BHP Billiton in Vancouver, IÆm equally aware of active Australian mining interests in Canada. This is not designed to indicate how active I am but rather to demonstrate the dynamism in the mining industry and the diversity of Canadian mining interests in this country and Australian interests in Canada.

Jan 1, 2006

By A Keogh, P Allen, P Stoker

"An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation. Private equity (PE) firms are comparatively free of mandatory requirements for the level and scope of due diligence applied prior to making investment decisions in minerals projects when compared to listed entities, sovereign funds or financial institutions adopting the Equator Principles (Equator Principles Association, 2013). While this freedom allows for flexibility, agility and innovation in making investment decisions, it can also expose PE firms to material risks that may impact their ability to successfully list the projects or attract later financing.Financial institutions and investors with mandatory due diligence and disclosure standards may refrain from investment in or acquisition of a project if it fails to meet various performance requirements. There are many high-profile projects that have suffered significant write-downs on book value after acquisition because specific non-mining issues were not adequately assessed. Thus, a PE firm may be left with an asset that is difficult to divest and incapable of securing development finance.PE firms can manage this risk by being aware of the growth trend in the adoption of ‘international standards’ in addition to host nation standards and legislative requirements. This paper outlines key issues for PE firms to address to maximise the chances of obtaining funding or successfully taking an exploration or mining project through to listing or divestment. Two steps are required: identification of gaps in performance and priority matters of interest to financial institutions and development of action plans to ensure that the priority requirements are met or capable of being met.A PE firm can set its project for success by understanding the social and environmental performance requirements of international standard financiers and by setting the project on the right path to meeting these requirements, and thus making it an attractive investment.CITATION:Allen, P, Stoker, P and Keogh, A, 2015. Setting for success – private equity exploration and mining project buy-in to listing and divestment , in Proceedings PACRIM 2015 Congress, pp 93–100 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 18, 2015