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All companies and individuals who embark on a business venture incur costs. For the most part these costs can be conveniently categorised, firstly into capital and operating costs and then into the various elements of these major cost centres. Although the nature of expenditure naturally differs as between industries certain broad cost types are characteristic of all heavy industries. The capital costs of gaining access to an orebody, equipping a new mine, building a treatment plant and perhaps refining and smelting facilities are likened to capital expenditure by a manufacturer on new plant and equipment required for an expansion or new product innovation. Similarly the day to day costs of labour and materials employed in the running of a mining operation can be likened to similar costs in other heavy industry. There is another group of costs that are not so easily categorised. Most industries incur unavoidable costs that do not form part of the direct or capital costs of physical production. These costs include taxes and other payments to government and research expenditure. The mining industry has a particularly heavy burden of non-production costs and it is the objective here to highlight and analyse a few of them. These costs are exploration expenditure, infrastructure expenditure, royalties and income tax. This is not to suggest that these are the only major non-production costs that the mining industry needs to bear. The industry may incur significant costs for environment protection, land tenure maintenance and on liaising with Government on a wide variety of matters. It is for reasons of subject manageability that the list is confined to the four costs mentioned. For the mining industry, exploration and infrastructure expenditure, royalties and income tax have several distinguishing features. Firstly, they are generally proportionately large costs. Exploration and infrastructure expenditure for example, could well exceed mine development costs. Depending on how royalties are levied, they may be very high in relation to profits earned and many in fact exceed profits. Secondly, except for income tax, they are costs that are generally not payable by other industries. Exploration expenditure is in some respects comparable with industrial research and development. However, because mines are wasting assets exploration is necessary for survival, and it is likely to form a larger part of costs per dollar of profits or sales than R&D. It can therefore be said that exploration is of far more significance to the miner than R&D is to the typical industrial company. Furthermore, unlike exploration expenditure, R&D results are transportable and patents permitting, transferable. The infrastructure burden that miners must carry is unique to the industry. Whereas urbanised industry is not usually liable for the capital cost of power, water, transport, townships and community facilities, the miner must finance these projects himself. Neither the payment of royalties, nor of course, income tax are unique to the mining industry. Royalties are more properly described as a unique charge on some primary industries but however described, they are a charge that manufacturing and service industries do not have to pay. Whilst we all pay income tax, the mining industry's uniqueness derives from the special problem that the industry has in arriving at annual net income in view of the capital intensity of the industry, partly due to expenditure on infrastructure, the indefinite life of capital equipment and its unpredictable residual value, funds expended on exploration and long lead times associated with a mine development. The third distinguishing feature of these costs is that, with the possible exception of exploration expenditure, they are heavily influenced by the policies and actions of Government. As such the industry has a responsibility to promote the industry by emphasising its potential to improve national product including exports and by requesting that the Government provide for the industry in its long term planning and seek its co-operation to prevent the industry incurring inequitable penalties relative to other industries.Finally, exploration and infrastructure expenditure are significant because they are front-end charges on a project. When due allowance is given the time value of money and the deferment of income from a mining development to which they relate, exploration and infrastructure expenditure assume greater importance than the raw money expenditure suggests. For all these reasons, exploration and infrastructure expenditure, mining royalties and mining income tax are worthy of detailed study. This is the purpose of this paper. The objective is to examine the determinants that give rise to them and provide some thoughts on their impact on on-going and potential mining developments and, where relevant, to make some suggestions as to how they may be minimised.

Jan 1, 1977

Current attitudes by exploration companies towards working on another party's exploration permit or equivalent vary widely. That this is so is due to the virtual absence, on the one hand, of anything in the mining legislation in any jurisdiction that establishes what are the exclusive rights to explore, as opposed to apply for a mining tenement, that the grant of such an authority conveys on the holder, and on the other hand, of any code of ethics or set of guidelines to proper practise. By contrast, in most states and territories, if not all, it is an offence to enter onto a mining tenement, other than to cross it, without the consent of the holder, although until recently most field personnel would have been unaware of this and most explorers would have transgressed at one time or another. A similar vacuum exists where aerial surveys are concerned. There are in fact no guidelines. It has always been assumed that a party wishing to carry out such a survey was free to do so, without even an obligation to notify the holders of any tenements or permits in the area to be surveyed, let alone make available to them any data from the survey. Concepts of 'geophysical trespass' now being tested in the US also raise the possibility that data won from adjoining ground using geophysical techniques may be privileged. Attitudes now appear to be changing. In the absence of legislation or any code of practise, what does the industry regard as ethical behaviour? Do we need to define the rights and obligations of various parties more clearly, and if so, what should they be and to what extent will it be necessary to confirm them by legislation as opposed to adopting a code of practise? Will the existence of such a code in fact improve corporate practise?

Jan 1, 1995

By J L. Edwards

High resolution, acoustic scanning technology has emerged in recent years as a powerful wireline tool for identifying the occurrence and orientation of structures and borehole breakout û the latter being a strong indicator of horizontal stress directions. While other wireline techniques such as dip metre and calliper logging can provide some of these data in a fairly rudimentary way, the quality and ease of interpretation of acoustic scanner logs provides a level of detail that significantly enhances the risk profile of the analysis which more than compensates for their additional upfront cost (MacGregor, 2002). As is often the case with such technology it is one thing to generate a data set that describes the attributes of the various features apparent in a log, and another to be able to analyse those data in such a way that their individual and collective impact on mine planning issues can be readily assessed (MacGregor, 2003). This paper describes a process for the interactive manipulation and visualisation of joint and breakout data to enable them to be effectively included in the mine design process.

Jan 1, 2009

Two separate mine rehabilitation programmes carried out by Australian Consolidated Industries Limited (A.C.I.) in South Australia at Normanville and Port Lawler are discussed. Emphasis is given to the methods used, the results achieved and to possible future improvements.

Jan 1, 1976

The .subject of this paper is to briefly outline various methods of stockpiling and reclaiming, and the use of different types of bucketwheel re- claimers and stackers in these operations. The paper examines briefly the different types of bucketwheel equipment, their operations and relates them to different stockpile layouts, giving examples of their application in Australia.

Jan 1, 1973

Ore reserve estimates form a basis for strategic mine planning at Argyle Diamonds open pit and alluvial operations. Most ore reserve statements are mainly concerned with resource tonnage and grade. Because diamond deposits are low grade, high value resources, diamond quality ($/carat) is also an important parameter. Relatively large variations in quality and/or grade can occur. These variations must be taken into account before the resource potential can be fully assessed. Computers (HP9000 and PC's) are utilised to compile resource inventories. Resource inventories are then ranked on an economic basis. This paper discusses the methods used to compile resource inventories and explains how these are then used to present ore reserve estimates in terms of resource potential.

Jan 1, 1990

By M Pizey, P Lindsay

Coal mining has been occurring on the Stockton Plateau for over 100 years. As a result of both natural conditions and mining activities, surface water on the plateau is known to have low pH and elevated metals concentrations, a condition known as acid rock drainage (ARD). Solid Energy New Zealand Ltd (SENZ), as owners of the current mining operations at Stockton desire to understand the nature and causes of ARD at Stockton to determine whether commercially viable options can be developed to improve the water quality to levels acceptable to the local community and regulators. A series of integrated water quality investigations have been performed towards developing a characterisation of the water quality on the Stockton Plateau and receiving waters. The investigations performed include: design and implementation of a water quality monitoring program to collect a satisfactory base of water quality data from which to develop an understanding of the water quality and its variability, and to collect data regarding the range of flow rates that occur in the principal streams; development of a hydrological model for the Plateau with the ability to predict flow rates at key locations on the plateau and on the Ngakawau River; field investigations of the bio-diversity of the plateau and surrounding areas, to develop a snapshot of the health of aquatic communities and whether streams draining mine workings are æadversely impactedÆ; eco-toxicology; waste dump seepage water quality monitoring at selected basal springs, drilling, investigations and permeability and geochemical testing; data processing of a range of historical data and the newly acquired data for the development of empirical relationships that describe the water chemistry system and its relationship in turn to flow rates in the streams; simulation of the long term water quality record for the measured parameters (pH, acidity and metals concentrations), based on the hydrological model and the empirical relationships developed from the new database; and preliminary development and examination of mitigation options for the ARD issues at the mine. The study has progressed towards design of pilot studies of options for mitigation of the generation of the ARD as well as treatment of the discharges. It is the integrated approach adopted by SENZ from an early time in the investigations, that has enabled fast-tracking of the pilot engineering trials. This paper presents the results of the field investigations and eco-toxicology studies and demonstrates the value of predictive modelling of water quality in the study area, even at a very early stage in the remedial engineering design process.

Jan 1, 2003

The electrochemical dissolution of gold and other noble metals in hydrochloric acid using alternating current has been investigated. The experimental results show that this technique is efficient for dissolving pure noble metals and offers prospects for their extraction from wastes and poor ores.

Jan 1, 1992

By Dunne R. C

Column flotation is receiving increased interest from both an industrial and research perspective in Australia. The traditional overseas application as a molybdenum cleaning cell is being expanded and a number of new applications as cleaners, scavengers and roughers are emerging in Australia. The success of column flotation has hinged on the new understanding developing from the work of Finch- and coworkers at McGill University, Canada, particularly in relation to scale-up parameters and model development. The aspiring column flotation user in Australia now a has wealth of experience to draw on when deciding on the correct procedure to follow during the process evaluation and plant installation stages of development. However, some aspects relating to column design, such as aeration mechanisms, require careful evaluation.

Jan 1, 1987

Porgera is located in the Central Highlands of Papua New Guinea. Porgera Joint Venture treats a high grade epithennal gold deposit. Most of the gold occurs as submicroscopic particles in a sulphide matrix although there is some quite coarse free gold. Anticipated gold production is 900 000 oz per year for the first six years of operation.Stage I of the treatment plant consisted of a concentrator and leach/CIP Circuit. It was commissioned in August 1990. Design throughput was 1500 tpd with an anticipated gold recovery of 60 per cent. Throughput achieved was actually 1850 tpd with an average gold recovery of 69 per cent. CIP tails were accumulated in a pond awaiting retreatment by pressure oxidation.

Jan 1, 1992

By Kubo H, Kubita K, Morinara M

A quantitative method for predicting the mechanical properties of zinc alloys is proposed on the basis of the molecular orbital calculation of electronic structures. A new parameter which is the s-orbital energy level, Mk , of alloying elements in zinc was introduced into this method. This Mk parameter correlates with the electronegativity and the atomic radius of elements. The compositional average of this parameter varied linearly with the tensile strength and the hardness of commercial alloys and some alloys developed by Mitsui. This electronic method was very convenient in designing high performance zinc alloys efficiently.

Jan 1, 1993

To carry out its responsibilities the SECV needs to manage the visual environment effectively. Every land oriented decision effects what we see and the value in pursuing visual excellence is supported by informed opinion, widespread community interest and evidence of cost- effectiveness.By knowing how we perceive the landscape and then changing or conserving it we can assist in fostering a positive mental image of a countyside which is welcomed by the local and regional community.It is useful to examine key design elements and the value we place on visual impressions in relation to three significant SECV rehabilitation projects, at Loy Yang, Newport and Morwell Open Cut.

Jan 1, 1992

By Gorken A, Mular M, Stewart A

PT Freeport Indonesia operates one of the largest copper and gold concentrator complexes in the world. Flotation is used to produce a single copper-gold concentrate. In 1995, PT Freeport Indonesia and Cytec Industries Inc established a joint p

Jan 1, 1997

By D L. Richardson, B Tiedt, C D. Morgan

Following residentsÆ concerns that the ongoing operations of Collinsville Coal (CCP) mine may be resulting in the release of contaminants, including products of acid mine drainage (AMD), into downstream environments, the Queensland Environmental Protection Agency (QEPA) issued CCP with a Notice to Conduct or Commission an Environmental Evaluation at Three Mile Creek. A key objective of the Environmental Evaluation was to assess the extent and magnitude of impacts to aquatic communities and their habitats. A multidisciplinary investigation examined a suite of physical, chemical and biological indicators to meet this objective. The study also aimed to identify contaminants of concern and the location of potential pollutant sources. Potential indicators of AMD, including elevated dissolved solids concentrations and low pH, were evident within the mine lease. However, significant differences in concentration of these indicators upstream and downstream of the confluence with Three Mile Creek were not observed. Although only proxy indicators of AMD contamination, these results suggest that the extent of impacts downstream is minimal. For the purpose of this study, physio-chemical indicators were selected on the basis of those best likely to provide an understanding of the likelihood of contamination, within the constraints of readily available long-term monitoring data. Ecosystem health indicators were adopted to supplement the existing data set and provide a more æroundedÆ perspective of water quality attributes within the system, generally unattainable by standard physio-chemical assessments. In contrast to AMD products, sediments were considered more likely to have a widespread impact on aquatic ecosystems. Waterways throughout the study region, including those unaffected by mining, have been affected by broad-scale sedimentation and were typically highly turbid. Due to the many diffuse sources of sediment potentially liberated within the catchment, the contribution of the mine compared to other land uses on total sediment loads entering streams is difficult to determine. This is clearly a major management issue for mines throughout the Bowen Basin. Streams of the central Queensland region display enormous variability in water flows and physio-chemical characteristics over a range of spatial and temporal scales. This variability presents major difficulties in distinguishing anthropogenic impacts from natural variability (noise). Despite this variability, impact monitoring by mines in the central Queensland district has tended to focus almost entirely upon physio-chemical indicators. The results of the present study indicate that a multiple indicator approach to environmental assessment is more useful for separating mine related impacts from natural ænoiseÆ and impacts from other land uses. In the absence of such information, by adopting the precautionary principle of Ecologically Sustainable Development (ESD), there is potential for an environmental impact to be incorrectly attributed to mining when other activities in the catchment may be contributing to changes in stream æhealthÆ.

Jan 1, 2003

In general, modern mining companies all over the world have to face the same economic circumstances as any other part of the industry: considering the tough competition, production and haulage costs must be reduced permanently whereas productivity has to increase substantially in order to remain price-competitive. However, the imposed pressure also offers the chance for consideration of alternative mining concepts, the application of which can result in substantial cost savings and improvements in the quality of the mined material. As one of these alternative mining concepts, surface mining technology offers substantial improvements in productivity. It also influences aspects of haulage, such as safety and speed, in a positive way. The capability of selective mining ties in nicely with the production of small-sized crushed material, the granulometry of which allows the elimination of the primary crusher. Mine operators profit from reduced costs for the maintenance of their haulage vehicles due to reduced wear, a decreased likelihood of accidents and higher average transport speeds. Surface Miners can also be used to cut haul roads into virgin rocks and leave a clean and level surface behind, improving the quality of these created roads. Thus, it is even possible to use ordinary road trucks for transport in mines. The current paper outlines in detail the effects of the surface mining technology on mining and haulage aspects and reports on applications where substantial cost savings could be achieved due to the application of what is also referred to as æsimple mining processÆ.

Jan 1, 2003

By A G. Greenwood

Research into cemented rock fill at Mount Isa Mines Limited since 1992 is described. The key mechanisms controlling segregation during stope filling with cemented rock fill are described and include the gravity flow mechanism which is described in detail. Examples are provided to demonstrate these mechanisms. Comparisons are made between Mount Isa MinesÆ cemented rock fill and slurry-based cemented rock fills. Recent backfill stability modelling using a three-dimensional finite element program is described.

Jan 1, 1998

By Gillies A. D S

Replies to a comprehensive questionnaire on mine water resource management systems (WRMS), which were distributed to a selection of Australian mining operations in 1991, are analysed. Although the replies cannot be considered fully representative of the industry, they do provide a good qualitative indication of water resource management in the industry at that time.Within Australia's largely arid land mass, a majority of mines nonnally need to conserve water, a few need to dispose of water and a number face a seasonally varying position. An assessment of the importance of WRMS compared with management of ore extraction and processing is given. A risk assessment of failure is given; there is more acceptance of WRMS failure in the mine compared with the mill. An assessment is made of considerations in WRMS design. Managements are generally pro-active in the design of WRMS and in the setting of perfonnance standards. The operational characteristics of mine systems are examined in detail.Companies generally do not appear to allocate sufficient resources for the collection of basic WRMS monitoring data and knowledge of the water budget to efficiently manage the system. This indicates scope for considerable cost savings in most mines.

Jan 1, 1995

The increasing global demand for rough materials forces almost every mine to look at the mechanisation in their processes. This will not onlyimprove performance but with safety issues becoming more and more prevalent, the need for the introduction of mechanisation technologies to mining applications is essential. Ongoing developments are occurring in almost every field, ranging from basic developments to specialised mining. Mechanical tunnelling and shaft sinking have set the standards regarding safety, profitability and environmental protection. Different machine types and working principles have been developed to suit the geological and hydrological requirements of tunnelling projects worldwide. Continuous activity in research and development leads to constant optimisation of tunnelling performance.

Jan 1, 2008

The evolution of the Oaky Creek mining complex provides a good example of the mining cycle in practice. Oaky Creek has been innovative in its choice of mining methods, with virtually the full range of coal mining methods having been used as workings have progressed down dip. The history of the mine is traced through its development (and ownership changes), progressive selection of mining methods as depths of cover to seams being mined have increased, and rehabilitation. This allows the different mining methods to be described and illustrates the concept of æwall-to-wall miningÆ.

Jan 1, 1998

By Gang C, Changyi S, Liangde G

Geophysical and geochemical methods and techniques for gold exploration and their applications in China are summarised in the paper. Some case histories are also presented. The effect of prospecting for gold deposits using these methods is well illustrated through these examples.

Jan 1, 1997