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The Johnny Mercer lyrics 'You've got to accentuate the positive, Eliminate the negative, Latch on to the affirmative à' would best sum up the traditional approach to community relations in the mining industry. This '90s 'Public Relations spin' approach, usually backed up by scientific data, technical reports and graphs outlining risk probability and the impact potential on people and communities, is being challenged. Challenged by communities who have greater access to information, demand greater levels of transparency and corporate responsibility of large corporate operations and possess greater awareness of the communities they live in.   The growth of the environmental movement, of anti-globalisation, anti corporatism, apprehension of a large corporate's ability to deal with community issues, and a lack of faith in the abilities of regulators to regulate corporate activities, means our industry faces challenges on multiple fronts. It must now be able to address these from a personal/community perspective if it is to remain relevant within communities.   One of the keys to this is linking the internal activities and responsibilities to the externals concerns and demands for higher levels of operation and care.   This presentation draws on Corporate Public Affairs trends, functions and approaches and the application to External Affairs activities within Newmont Waihi Gold's operations in Waihi and regional exploration activities throughout the Hauraki Goldfields.   The approach presented works on the philosophy that communities don't necessarily have to like what we do, but should be able to identify and recognise the way in which we involve them in decision making, communicate our intentions and respond to issues.

Jun 1, 2010

Operating well designed and maintained surface mine haul roads is the key to minimising truck haulage costs - in itself a significant component of the total cost per tonne mined. Existing and proposed mining operations are subject to scrutiny, both from the economic and environmental perspectives. In the long run, this scrutiny returns improved efficiencies and leaner, 'greener' operations. The focus of this evolving evaluation process should and will certainly fall on haulage operations - simply by virtue of their contribution to overall cost of operations and sustainability impacts. Whilst the end result - improved efficiency and contributions to resource sustainability - is not in itself problematic, it is the route, or process followed to achieve these improvements that needs to be carefully managed. We can be guided on this journey by our understanding of how a road is designed, and, critically, the technological solutions that can contribute to a company's sustainability initiatives. This paper examines the current state of mine road design and operation, together with the economic and environmental issues associated with under-performance. The paper serves as a basis for evaluating the economic and environmental contributions that technology in road design and management can deliver to sustainable operations. Utilising innovation is the key to long-term sustainability and as a means of positioning the industry for the imminent structural changes to the economy and environment, changes which are now within the operating life of many mines, haul roads and haul trucks.

Jun 1, 2010

In Australia a social impact assessment (SIA) is generally required prior to the approval of a mineral resource extraction or processing projects as a part of the Environmental Impact Assessment (EIA) process. In recent years there has been increased attention on the adequacy of the SIA process applied in major project assessment. Most applications have focused on the impact identification process with little attempt given to the community negotiating power over how impacts will be addressed. The impact assessment tends to occur at a single point in time, with no subsequent re-evaluation or ongoing social impact management and monitoring process. The assessments rarely specify how responsibilities for impacts on communities may be apportioned between project proponents and government, and have been inadequate in dealing with cumulative project impacts. In Queensland, concern about these shortfalls have led to the release of the Sustainable Resource Communities Policy 2008 and requirements for social impact management plans (SIMP) to be developed for each resource development in the State. In this paper a 'pressure-state-response' approach to impact assessment is used to develop an 'impact-response-monitoring-evaluation' (IRME) framework that can be applied to ongoing evaluation and monitoring of social impacts. The framework is applied to coal resource developments in the northern Bowen Basin in Queensland to identify core requirements in a SIMP. The IRME framework is flexible enough to be implemented at various spatial and time scales, for the wellbeing of the local and regional mining and non-mining communities in Australia. The framework can be further examined in other mine developments and could be integrated with the existing mining or environmental protection acts.

Jun 1, 2010

In a modern economy there is a compelling case why governments should not own property rights to mineral deposits. Assuming they do, however, governments will use these constitutional rights to raise revenue. They have two basic instruments to achieve this; a royalty charge on price or a rent tax on income/profits. On the one hand, a royalty charge creates a 'deadweight loss' to society by increasing cut-off grades and decreasing the life-of-mine. They are also regressive. However, they are easy to administer. On the other hand, a rent tax avoids the problem of 'deadweight loss'; it does not impact on the life-of-mine because the tax structure is neutral. But, they are difficult to administer correctly, particularly in the determination of rents and the definition of mining per se. If rents are incorrectly determined capital markets are distorted. And, if mining activities are incorrectly defined, downstream activities could be adversely affected.

Jun 1, 2010

In the context of sustainable development, the Minerals Council of Australia (2010) states that 'investments in minerals projects should be financially profitable, technically appropriate, environmentally sound and socially responsible'. In other words, the business of mining can only be sustained if these criteria are met.   Science and technology plays a major role in all four of these criteria. This paper will present the technology and innovation emerging from the Minerals Down Under National Research Flagship which brings together CSIRO and more than ten of Australia's leading universities to work with industry to drive efficiency, productivity and environmental performance. This work is required if the Australian minerals sector is to thrive and continue to deliver national benefit in the face of increased global competition, declining ore grades, depleting ore deposits, increasingly constrained national resources (land, energy, water and people) and changing societal expectations.   Science and technology to reduce emissions and water use, discover greenfields resources, enable deeper mining operations and transform mineral processing are described. Technology is presented as an enabler of sustainability: a means to this end but not as an end in its own right.

Jun 1, 2010

The modern resource extraction enterprise is a complex capital intensive business operating in a world of constantly evolving social, environmental and economic scrutiny. Investors, government, media and special interest groups expect to see business environmental and social performance respond and deliver increasing corporate responsibility and sustainability.   Thorough interrogation of business performance using a multi-disciplinary due diligence approach presents a more sophisticated review and benefits beyond the traditional compliance/conformance 'audit' style assessment.   Using a due diligence approach allows assessment through a comprehensive lens which examines potential short- and long-term risks including sometimes less tangible environmental and social liabilities, and informs management, investors and regulators of broader business performance. This approach provides information in a form that business can measure performance in a repeatable and enterprise wide sense.   This paper provides an outline of the due diligence process applied in this way, drawing from lessons learnt and industry based experiences in the due diligence process and the benefits and tools that can  be applied in an environmental and social due diligence business performance assessment

Jun 1, 2010

The solvent extraction section of an old Uranium Plant in the Vaal River region (North West Province in South Africa) produced a substance called CRUD (Chalk River Unidentified Deposit) that formed within the aqueous/organic interface of the settler of the solvent extraction circuit. The CRUD was deposited together with gold tailings to the tailings dam many years ago. Previous research done on the CRUD confirmed that exposed CRUD leaches Mn and Ni at concentrations that are well above their acceptable risk limits as well as Zn that leaches at concentrations that are slightly lower than its acceptable risk limit. Soil washing and bioremediation technologies were employed to treat the contaminated soil.   Various laboratory test work and the pilot scale studies were conducted in parallel with each other and the results of the laboratory studies were used to determine critical parameters. Four lixiviants, ie sulfuric acid, acetic acid, oxalic acid and ethylene diamine acetic acid were tested at three concentration levels ie 0.001 M, 0.0001 M and 0.00001 M, respectively. Column tests showed that the leaching of the heavy metals increases as the soil porosity increases. Silica sand was added to increase porosity of the contaminated soil. Highest Mn removal was achieved mainly by sulfuric and oxalic acid at 0.001M at all soil levels. EDTA was significantly efficient in the removal of Ni and Zn. The recovery of heavy metals, particularly Mn, decreased as the depth of sampling increased.   Heterogeneous bacteria and filamentous organism plate counts were conducted to evaluate the growth of the bacteria and filamentous organisms in the soil. Results showed that more organism growth took place in the bioremediated soil with a fertilizer added to it. The leaching of metals from the soil that was bioremediated in the pilot study was generally higher than the extraction of the metals from the soil that was leached with no bioremediation carried out. The results from this study suggest that the leaching of heavy metals from the contaminated soil is to a large extent dependant on the pH of the leaching solution. By increasing the soil's porosity and bioremediating the soil, higher extractions of metals were achieved.

Jun 1, 2010

The Regional Development Council has initiated a project that aims to find better ways for further investment by extractive industry companies in sustainable regional and community futures. It will be undertaken through collaborative actions that bring together the resources of private and public sector stakeholders in regional Western Australia.   The broad objectives of the project are to: describe and analyse the current situation with respect to the impediments to regional communities being more self sustaining, assess the effectiveness of the current and possible future levels of investment by extractive industry companies in the sustainable development of communities in regional Western Australia, identify and demonstrate collaborative ways in which extractive industry companies in Australia and other countries can play an enhanced role in sustainable regional and community sustainability through strategic engagement and investment; and confirm the effectiveness of the collaborative measures in delivering sustainable outcomes for regional communities by way of attracting and retaining populations and enterprises in Australia and similar environments.

Jun 1, 2010

The use of mining by-products for beneficial use may face approval, and acceptance barriers. This paper described the use of a sustainability framework to assess the safety, effectiveness and economic value of modified bauxite residue (Alkaloam«) for use on agricultural land in the Peel-Harvey region of Western Australia. The results indicate the merit associated with using this by-product from a safety and, private, community and environmental value perspective. They may be used to indicate the worth of pursuing any future community acceptance and agency approval process.   The use of Alkaloam« for beneficial use on agricultural land in Western Australia was first investigated over 25 years ago. Efforts to gain regulatory approval and community acceptance of Alkaloam« have had a complicated and enduring history. Understanding and assessing the value of a by-product using social and economic considerations, in conjunction with an environmental assessment, provided a more complete evaluation to that previously used.

Jun 1, 2010

This paper identifies the challenges and opportunities for mining companies and communities in investing in human rights compatible, credible, effective and representative company-community relationships.   The paper draws on the work of Professor John Ruggie, Special Representative to the United Nations Secretary General on Business and Human Rights, and his Protect, Respect and Remedy framework for business and human rights, The CDA Collaborative Learning Project, and the experience of Oxfam Australia. This paper begins with the premise that Australian companies commence operations offshore with high expectations and a willingness to work harmoniously with local communities. However, as companies increasingly engage in global operations - particularly in weak governance and conflict zones - the challenge to establish and sustain rights compatible, meaningful, corporate community relationships and grievances mechanisms becomes both more complex and necessary. Establishing trust and honouring commitments made to communities, including legacy issues, is a critical component in good corporate community relations.   The second part of the paper will identify some of the impacts and challenges of mining that need to be addressed in corporate community negotiations and consultation. Respect for indigenous people's rights and their right to give or withhold consent for a project to proceed is increasingly evident, as is the growing global expectations with regard to revenue transparency. As such, key challenges include: grievance mechanisms; free prior and informed consent; transparency and accountability; the gender impact of mining; resettlement, compensation and benefit sharing; and security issues.   Finally, the paper will provide practical guidance to companies on how to establish effective corporate community relationships. It will include examples, such as human rights impact assessments, gender impact assessments, and establishing local level grievance procedures. The paper will include an Oxfam Australia case study of a dialogue mechanism at Tintaya copper mine in Peru.

Jun 1, 2010

By F. Freme

Coal production in the United States in 2009 de-creased to 972.8 Mt (1,072.8 million st), according to preliminary data from the U.S. Energy Information Administration (EIA). This is a decline of 8.5 percent, or 90 Mt (99.1 million st) below the 2008 record level of 1.06 Gt (1,171.8 million st) (Table 1). In 2009, U.S. coal consumption decreased in all sectors while total coal stocks increased for the year. Coal consumption in the electric power sector in 2009 was lower by 10 percent, while coking coal consumption decreased by 30.6 percent and the other industrial sector declined by 16.6 percent. The commercial and institutional sector (which prior to 2008 had been called ?residential and commercial?) is the smallest of all the coal-consuming sectors and it declined by 8.4 percent in 2009. (Note: all percentage change calculations are done at the short tons level.) U.S. coal exports fell from the 2008 levels, while coal imports decreased for a second year in a row. The decline in coal consumption during the year was the consequence of the domestic economic conditions combined with the weather in 2009, which resulted in lower demand for electricity. Preliminary data show that total generation in the electric power sector (electric utilities and independent power producers, including useful thermal output) in the U.S. decreased in 2009. Coal-based generation also decreased, resulting in a 94-Mt (104-million st) drop in coal consumed in the electric power sector. Coal use in the non-electricity sector decreased by 20.1 percent to a level of 57.9 Mt (63.9 million st). The international coal markets for most of 2009 were reflective of a worldwide economic slowdown. U.S. coal exports and imports both declined for the year. U.S. coal exports totaled 53.6 Mt (59.1 million st). This is a decrease of 20.3 Mt (22.4 million st) from the 2008 level.

Jun 1, 2010

The new law on Environmental Protection and Management (Republic of Indonesia Law 32 of 2009) was passed by the Indonesian parliament in September 2009. This law aims to protect Indonesia's rapidly degrading environment by providing tougher provisions for both polluters and law enforcers. In doing so, the law introduces a number of new constraints and potential business risks that will affect all companies in Indonesia, particularly mining companies. Some of the newly introduced concepts follow.   Mining companies will now require an environmental license, issued by the Minister of Environment or local counterparts. This license is a prerequisite for all other business and operational permits. The Minister can revoke the environmental license at any time in case of an environmental incident or dispute. Mining companies may be exposed to additional environmental taxes and bonds besides already existing reclamation and mine closure bonds.   There is an increased risk of environmental lawsuits, due to more stringent controls on one side and greater protection for NGOs on the other side who make claims, false or true, against the company. Company executives and managers can be sued and they will be held accountable if environmental degradation has indeed occurred due to the company's activities.   Companies may face increased liabilities due to a change in the definition of contamination. The new definition is more stringent (and on occasion may prove too stringent to be practical); it also provides little room for flexibility in its application.   As implementing regulations are prepared over the coming two to three years, mining companies will need to adjust to the new law. A proactive approach is needed to minimise risk. Recommended actions include: upgrading existing environmental impact assessments to a higher standard; conducting baseline studies and thoroughly documenting environmental conditions on a regular basis; closely tracking regulatory changes, especially the forthcoming implementing regulations on the new environmental law; and regularly engaging key government and community stakeholders on environmental issues.

Jun 1, 2010

Societal expectations about how the industry operates and treats its people will be a key driver in the development of the Australian mining industry over the next 20 - 30 years (Moffat, Mason and Littleboy, 2009). Understanding these expectations will be critical in maintaining what much of the minerals industry calls its 'social licence to operate', or its public acceptance or approval. Yet what constitutes this social licence is poorly articulated, with little published research exploring the concept at a local operational level or at the national level in Australia or internationally. This research aimed to explore the societal expectations of the mining industry in Australia and test a participatory methodology to articulate them. Three workshops were conducted with a sample of 24 members of the 'Australian voting public' to explore community objectives for the onshore exploration and mining industry, and the underlying expectations for how the industry should operate in the future. Qualitative analysis of this data revealed three overarching objectives for the onshore mining industry held by participants. They thought that the industry should: advance Australia's national interests (including social well-being); minimise environmental impact, and; act in a socially responsible manner. Within each of these three key themes, or objectives, a number of tensions were evident in the views of participants regarding the trade-offs they are willing to make to secure economic benefit from mining, as well as the basic conditions for socially acceptable mining. These data provide an insight into the conditions for a national social licence in Australia for the mining industry, and the means for its realisation.

Jun 1, 2010

Stilfontein Gold Mine, located approximately 160 km west of Johannesburg, produced both gold and uranium from 1952 through to the early 1990s. On decommissioning the mine infrastructure, treatment plants, rock dumps and three tailings facilities were left to be rehabilitated at considerable cost to the mining company. The community that had grown up with the mine and had settled in the mine village were faced with deteriorating socio- economic conditions.   Mine Waste Solutions (MWS), a company with a socio-economic Vision expressly created by DRD (Pty) Ltd and Fraser Alexander (Ltd) for the purpose, took over the mine surface infrastructure with the objective of closing it down in an economically sustainable manner by recovering materials, converting mine infrastructure to useful purposes and re-mining of the tailings to recover residual gold to finance the project. A business case was prepared and presented successfully to investors and bankers and the project was commenced in 2003.   The paper covers the scope of the project and gives an account of the practical lessons that were learnt as the project developed over a period of five years. Key technical issues that are covered by the paper are the re-mining techniques that were deployed to clean up the old tailings dam footprints and the selection of the deposition site to minimise the incremental impact associated with the tailings and concurrent rehabilitation of the facility. In addition the paper will outline the positive benefits that were generated for the community and the improvement that was achieved in the physical environment.   The paper illustrates clearly how a mine can be closed in a manner that produces benefits for the community, the environment and the investor.

Jun 1, 2010

Shane is enjoying his new work. Six months ago, he was stocking shelves at his local supermarket and decided to make the big move to a job in mining with more challenge and, of course, more dollars. He's been through his inductions, received his training tickets and is now working in a crew of eight underground at a fly-in, fly-out (FIFO) operation. There are many more systems and processes here than in his retail job, and Shane's comfortable that his safety is being looked after. He is enjoying the continually changing work and conditions, it makes the job interesting. It's taking some time to get used to the roster and he is worn out by changeover, but he gets more time with friends and family during R & R.   Generally, the mining industry has a maturing safety culture and well developed systems. This sometimes lulls people into a false sense of security. Safety systems cannot anticipate every possible situation, nor can they replace people's perception, thinking and decision-making. To manage safety, it's critical to find the right balance between dependence on systems and a healthy fear and respect of risks we face.   As safety standards are raised, systems tend to get more thorough and complex. When a new person joins a mining crew, we induct and train them to provide the information they need. As labour availability again becomes short, and many new people join our industry, we shouldn't assume they know the fundamentals. We need to explain not only what they are expected to do, but why doing what we ask and expect will keep them safe. We must equip people to deal with both the routine and the unexpected.   This presentation explores the challenges of balancing a structured, systematic approach to safety with the need to also equip people to deal effectively with risks everyday in dynamic and extraordinary situations.   Session purpose Introduce participants to a way of looking at risk from a different perspective, as a force for change and progress, if managed well. Demonstrate that risk is something we need to engage with emotionally as well as physically, if we want our risk management efforts to be successful. This purpose will be achieved through an entertaining and engaging presentation, using photos and case studies. The session will initiate interest to explore new ways of thinking about risk and generate discussion about the balance between people and systems. What is the right balance and why getting it right enhances the safety culture, while getting it wrong can impact on safety, business performance and sustainability.

Jun 1, 2010

By Michel G. Grenier

Compliance with Diesel Particulate Matter (DPM) exposure regulation is currently performed using timeweighted average (TWA) sampling on underground mine workers. These samples are collected in the span of an entire shift and the resulting concentrations are compared to a legislated exposure limit. While this is very useful to determine the exposure level of an individual to DPM, it fails to clearly identify causes of exposure and highlight opportunities that could help reduce the exposure of workers in the course of the work shift. Real-time DPM monitoring measures the worker?s exposure as a function of time and helps identify circumstances where corrective actions can be taken or design changes can be made by the individual or the employer to reduce the overall exposure of the worker and peers. This work focused on obtaining DPM concentrations using a real-time polycyclic aromatic hydrocarbon (PAH) monitor. The aim was to demonstrate that this instrument, while not a direct DPM analyzer, was able to provide a concentration profile that could easily be linearly correlated to standard TWA elemental carbon measurements. In addition, several instances of improvements that could be implemented to reduce the exposure of underground employees were demonstrated.

May 1, 2010

By Laura Mottola

Process Design and Change Management for Successful Deployment of Technology in Mining Over the last 30 years Canada has been successful in developing but not deploying hardrockmining automation. Our opinion is that the current lack of R&D investment and implementation capacity places Canada at risk as a future global mining leader A white elephant A burdensome possession; creating more trouble than it is worth. White (albino) elephants were regarded as holy in ancient times in Thailand and other Asian countries. Keeping a white elephant was a very expensive undertaking, since the owner had to provide the elephant with special food and provide access for people who wanted to worship it. If a Thai King became dissatisfied with a subordinate, he would give him a white elephant. The gift would, in most cases, ruin the recipient.

May 1, 2010

By Barbara Kirby

Mining Industry HR Challenges Mining industry needs to hire approx. 100,000 workers by 2020 Attraction and retention of talent in all occupations Mobility of skilled workers between mine sites 70 percent of employers expect labour shortages over the next 5 years. Largest shortages: -physical sciences and engineering occupations -trades and ?undesignated? occupations ?Undesignated? Occupations ?Undesignated? Occupations -eg. mill operators, production / development miners and heavy equipment operators More than 20,000 workers will be needed by 2020 in the undesignated occupations and another 11,500 tradespersons Turnover rate for trades and undesignated occupations at mines is high: 8.3% compared to 5.6 % for all other occupations There is no system to recognize the skills of high-demand undesignated occupations

May 1, 2010

By Martin Murenbeeld

Outlook: Nine Bullish Arguments 1. Global fiscal and monetary reflation: PIIGS, US, etc. 2. Global imbalances: the dollar must decline 3. Global FX reserves are ?excessive?: diversification 4. Central bank attitudes to gold: now positive 5. Gold is not in a bubble: room to rise 6. Mine supply is flat: ?peak? gold? 7. Investment demand: long-run uptrend 8. Commodity price cycle: many years to run 9. Geopolitical environment: positive

May 1, 2010

Rio Tinto has embarked on a journey to use automation to improve the performance of its surface mines. The driver for automation is to improve the accuracy and consistency of mining processes and less to do with cost savings through labour reduction. A key task in most surface mines is blasthole drilling. The degree to how well this is done cascades through the downstream mining process. It impacts scheduling, excavation, slope stability, material handling, beneficiation and final product blending. Improved blasthole drilling was identified as an objective that has a significant business case in most of Rio Tinto's surface mines. This paper describes Rio Tinto's drill enhancement project that has developed a robust system for automating most of the functions on a Terex SKSS16 drill rig. Automated drilling is currently being used in production at the West Angelas iron ore mine in the Pilbara region of Western Australia. A description of the essential elements of the drill automation system is given together with an overview of how automated drilling is performed remotely from the mine office. A review of some of the benefits of the enhanced drill system is given together with the future plans to extend the functionality of the automated drill and the expected benefits.

May 1, 2010