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The emergence of China as a global economic power has not been without its birth pangs and the current coal market is testimony to this. Traditionally the coal market has been controlled by mature economies that functioned along balanced lines of supply and demand. The emergence of China and India as major forces in the international market has shifted this balance of power from mature economies to the developing economies of China and India. Of late Chinese Central Government policy has caused wide swings in the supply of Chinese coking coal and thermal coal to the international Asian markets. This has resulted in huge increases in demand for coal from producers in Australia, Canada, Indonesia, USA and Russia. Additionally since the late 1990s the liberalised Chinese economy has been growing by between nine to 12 per cent per annum. The corresponding rise in the standard of living of their 1.4 billion people has resulted in a strong demand for raw materials, initially met by domestic production and more recently met by the importation of raw materials including iron ore, oil, coking coal and thermal coal. Commensurate with this growth in China has been the emergence of India (pop one billion) as another major developing economy in the region. Whilst the Indian standard of living is lower than that of the Chinese, this subcontinent still has some 300 million people with middle class consumption demands. India is a major importer of oil, coking coal and thermal coal. It exports iron ore to China with growth parallel to China (seven to nine per cent per annum). These combined new demands from India and China have put unprecedented pressure on the global supply of coking and thermal coals. These pressures are reflected in the current world spot prices for coking and thermal coals which are at historically high levels. Whilst current demand from China and India is high it is anticipated that new projects will partially satisfy this increasing demand. Expectations are that overall thermal and coking coal prices will rise steadily. This paper seeks to identify the potential effects of Chinese and Indian economic growth on the international markets for coal.

Jan 1, 2004

In a ætypicalÆ gold deposit each tonne of ore will contain tens of millions of very fine gold particles, whereas; at Bendigo the majority of gold in each tonne of ore is present in just five to 15 very coarse gold particles, a distribution more akin to diamond deposits. At Bendigo the minimum sample size required for good assay repeatability is estimated at 4.5 t for each assay. Drill core samples are several orders of magnitude too small to generate representative assays.The drilling data are characterised by a nugget effect approaching 90 per cent, a very skewed distribution and, on average, under-report in situ grade by 50 per cent to 75 per cent. Since 2002 Bendigo Mining NL has completed 47 000 m of diamond drilling, 1200 m of on reef development, collected and processed 100 bulk samples (150 t each), 800 mini bulk samples (50 kg each) and processed in excess of 25 000 t of ore through a pilot plant. The results of this work have provided the information required to develop and verify a robust grade estimation procedure. No standard geostatistical manipulation of the drilling assay data can generate an accurate grade estimate as the samples and associated assays are not representative of the ore being sampled. The recognition of this fact was critical as a radical transformation of the raw drill assay data was required to develop a workable methodology for grade estimation in such a high nugget environment. The aim of the transformation was to reduce the nugget effect and high variance and so approach a lognormal assay distribution. Ideally the average drill grade would approximate actual in situ grade and the assay distribution would reflect actual grade distribution within the reefs. Following the data transformation simple block modeling within the defined resources allows grade estimates to be made that can be used in the estimation of Indicated Resources and hence Probable Reserves. The grade estimates have been checked by extensive bulk sampling and processing of 25 000 t of ore (three per cent of total resource) through a pilot plant with planned full scale mining to provide the ultimate verification.

Jan 1, 2004

By T Hughes

Upward pressure on all mining operations is coming from the triple bottom line. To some extent this is being offset by the rise in mineral prices, but this may or may not continue. The other serious issue facing all companies is the replacement of economic reserves as exploration levels over the past decade continued to decline in line with falling mineral prices. In order to underpin the sustainability of the mining industry it is necessary to continue to reduce cost, reduce the mine environmental footprint, whilst increasing community benefit. At the same time it is imperative that we increase the economic reserves. The highest risk is in adding new mineral discoveries as the strike rate for economic discovery decreases. Gekko Systems Pty Ltd recognises that the most simple and risk averse route to increasing economic reserves is to reduce cut-off grade in the mine, thereby bringing formerly uneconomic reserves into the economic category. We have been developing a new process flow sheet which embodies the triple bottom line and the issue of economic replacement of reserves. This paper describes this flow sheet and presents four examples where this concept is/can be applied to bring about triple bottom line benefits. Sustainability can only be assured if we are the ones in control of our environment, costs and reserves.

Jan 1, 2007

By K M. P Singh, K M. K Sinha, G S. Jha, T Gouricharan, K K. Sharma

The majority of the powerplants in India are fed with non-coking coals, with the coals dispatched from their respective mines via wagons loaded by a rapid loading system or pay loader. The usual top size of coal is 200 mm and sampling is carried out manually from wagons. The manual method of wagon top sampling of large size raw coal is not only difficult, but also violates some of the fundamental principles of sampling. As per sampling requirements, samples are to be drawn from the full depth of the wagons, which is impossible to be done manually. Since the ash distribution in the different size fractions is not homogeneous, the results from the samples, which do not reflect the true size distribution of the lot, are likely to be biased. More importantly, sample collection by shovel from the top is a function of human discretion and not governed by the equiprobability rule. In another case, the sample has been collected by a cross belt-type auto mechanical sampler for 200 mm size coal at one of the super thermal power stations. Test analysis shows that coal collected using a cross belt-type mechanical sampler also has significant deviations from stopped belt coal samples of 200 mm size due to size segregation. Studies carried out on wagon top sampling through specially designed experiments reveal some interesting features. The presence of bias in wagon top sampling is apparent when compared with the ‘stopped belt’ sample. In this paper, a comparative study between manual wagon top sampling/auto mechanical sampling with respect to stopped belt sampling has been conducted for coal of size 200 mm. In addition, precision studies have been performed for wagon top sampling/mechanical sampling for Indian thermal powerplants.CITATION:Sinha, K M K, Sharma, K K, Jha, G S, Singh, K M P and Gouricharan, T, 2014. A comparative study of manual wagon top sampling and auto mechanical sampling of 200 mm size coal with respect to stopped belt sampling of thermal coal at Indian super thermal powerplants, in Proceedings Sampling 2014 , pp 43–48 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 29, 2014

A laminar-flow furnace technique was used to study the combustion of 37-53 µm size fraction of Woodlawn copper concentrate containing 7.4 per cent zinc, 5.0 per cent lead and 22.5 per cent copper. Factors studied included the effect of time, temperature and the distribution of volatile elements between the panicles and the fume. Air was used for most of the work but a few tests were carried out using 1 per cent oxygen in nitrogen. Chemical analysis, X-ray diffraction, and scanning electron and optical microscopy of polished sections were used to characterize the reaction products.When the concentrate was combusted at low temperatures (800-900°C), the fume was rich in lead. At higher temperatures, this was diluled by increasing amounts of zinc and copper. 70 per cent of the zinc, 60 per cent of the lead and 40 per cent of the copper were found in the fume after oxidation at 1400°C. Lead, zinc and copper were present in the fume as anglesite (PbSO4), zincite (ZnO) and cuprite (Cu2O) respectively. The major phases present in the panicles were magnetite (Fe3O4) and/or cuprospinel (CuFe2O4), with some zincite and cuprite.Elemental copper was found in the particles oxidized in 1 per cent oxygen. Possible vapour species responsible for the vaporization are discussed.

Jan 1, 1985

Australia has a long history of underground mining. Even withadvances in open cut mining equipment, techniques andeconomics, many orebodies are still best mined by undergroundmeans. In addition, modern exploration tools are æuncoveringÆorebodies that are at increasing depths. South African mines arecurrently producing from below 3 km, and developing down to5 km depths û it is likely that Australian mines will also becomemuch deeper over the next 20 years. One of the most significanttechnical challenges in deep mines is the problem of heat.Community expectations and legislated standards continue todrive operations towards improving the working conditions inmines. The hazards and costs associated with chronic hotworking conditions (heat illness, poor safety, poor productivity,higher operating costs and poor morale) are also becomingincreasingly recognised (Brake, Donoghue and Bates, 1998). Theexposure of miners to many other occupational hazards has beenreduced over the past 50 years. However, despite air-conditionedcabins greatly reducing the heat stress on mobile plant operators,there are still many Australian mine workers subject to levels ofthermal stress that existed a century ago. There are severalreasons for this, including a frequently-poor understanding of thephysiology of working in heat by mine management, no agreedmining code of practice for working in heat, the lack of a robust,practical-sized instrument to measure heat stress, the costpressures on the industry and, to some extent, deep-seatedtraditional management and worker practices. Howeversignificant progress has been made in many of these areas (Brakeand Bates, in press), with the net result that there is likely to be a trend towards installation of refrigeration of some form in manyAustralian mines in the future. This will add directly to the costof operation, but will also have direct and indirect benefits,including cost benefits. It should also be noted that Australia isnot at the forefront of adopting practices to manage temperaturesin the workplace: South African metal mines usually haverefrigerated cooling, and Canadian mines spend large sums onheating, with heating costs (averaged over a full year) of up to$A1 per tonne mined (Bandopadhyay et al, 1997). The history of mine refrigeration dates back to 1919 when thefirst plant was installed at Morro Velho, Brazil. By 1965, the totalinstalled capacity (worldwide) reached about 100 MW(R)i. Since 1965 the growth in mine refrigeration capacity has beenexponential, with a doubling every six or seven years (Howes andNixon, 1997). South Africa is by far the largest user of minerefrigeration, with over 300 refrigeration machines installed. This paper discusses the key design issues associated with theapplication of refrigeration in underground metal or coal mines.Whilst the emphasis is on large, surface plants, small, surface orunderground refrigeration plants can also be very effective in thecorrect application and many of the principles of design andoperation are the same.

Jan 1, 2001

The paper presents the development of an integrated computer aided design and planning of open cast mining, with the use of object-oriented modelling and geoinformation technologies, on the example of interaction of the subsystems on planning optimisation and freight traffics.

Dec 6, 2010

By J Zhang, R Dimitrakopoulos

A two-stage stochastic mixed integer non-linear program is formulated for a mining complex to optimise strategic and tactical plans. The objective is to find the near optimal decisions for a mineral supply chain in the context with uncertainties in both ore supply and the commodity market (price and demand). The endogenous spot price in the commodity market and long-term sales contracts are considered in the formulation of the mining complex’s optimisation model and an ad hoc heuristic is developed to deal with the throughput – and head-grade-dependent recovery rate in processing plants. Numerical results indicate that the proposed heuristic is effective and efficient in numerical tests. Based on the proposed model and heuristic, a long-term contract design strategy is proposed for making decisions on the contract price and strategic investments. A shadow price based method is also proposed to evaluate the existing mining schedule.CITATION:Zhang, J and Dimitrakopoulos, R, 2014. Optimising a mineral supply chain under uncertainty with long-term sales contracts, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014 , pp 25–32 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014

By Y Zhang, X Yi, J Deng, J Zhao, J Song

To obtain the combustion process of a coal fire, a high-temperature programmed system is used to simulate the spontaneous combustion process of fresh and weathered coals. Both fresh coal and weathered coals from Liulingou, Inner Mongolia, China, were used to examine the gas releases from constant temperature to 650°C. Moreover, gas release rate was used to calculate the characteristic temperatures. The results showed the coal samples lasted to oxidise under high temperatures, and released plenty of heat to assist self-heating. The humic acid contained inside the weathered coal went through thermal decomposition as temperature rising and generated gases. This resulted in increasing concentrations of CO, CO2, CH4, C2H4, and C2H6. Changes of CH4, C2H4, and C2H6 gases were also similar. For weathered coal, concentrations of three gases were kept in balance under low temperatures, increased rapidly with the temperature rising. After the ignition temperature, the concentration of hydrocarbon was reduced. In addition, particle size affected coal spontaneous combustion. Coal samples with less than 0.9 mm in size produced much more CO than others. This study has examined coal spontaneous combustion caused by coal weathering during mining and its impacts on self-heating and pyrolysis in the process.CITATION:Deng, J, Song, J, Zhao, J, Zhang, Y, Yi, X and Zhang, Y, 2017. Gaseous products of weathered coal during the process of spontaneous combustion, in Proceedings Australian Mine Vent Conference 2017, pp 79–84 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 28, 2017

By I Coombes, M Trim, Y Sun, M McRae, A Spiegl, H Lagger, A Amon, P Barraclough, M Villeneuve

The Brisbane Airport Link Project (AirportlinkM7) includes the design and construction of more than 12.5 km of tunnels, with the Kedron interchange including four ramp tunnels that intersect with mainline tunnels and result in caverns with spans of up to 26 m. These caverns are in highly variable ground conditions with less than 35 m of cover underlying residential neighbourhoods and commercial properties. The Kedron caverns were constructed using the sequential excavation method (SEM). Owing to complex geometry and excavation sequence, the caverns were designed based on numerical modelling methods, including both two- and three-dimensional models. These numerical methods were used to develop a suite of support types with excavation sequences for the expected range of ground conditions. A combination of methods that included in-tunnel monitoring (convergence monitoring and extensometers), probe holes, endoscope probes, face mapping and ground settlement measurements were used to verify performance of the tunnel support systems and to select and refine the appropriate support system for each section of the caverns. The construction monitoring data indicated that numerical modelling can provide a good basis for predicting the performance of large-span underground openings in highly variable ground conditions. This paper presents a comparison of the performance of the caverns predicted by state-of-the-art numerical models and the actual measured performance.CITATION:McRae, M, Villeneuve, M, Trim, M, Sun, Y, Barraclough, P, Spiegl, A, Amon, A, Lagger, H and Coombes, I, 2014. Brisbane Airport Link Project – design and construction of the 26 m span Kedron Caverns: comparing monitoring data with the design, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 295–306 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

By Tuck M. A

The increasing depth, mechanisation and distance of working areas from surface connections places an ever greater contaminant burden on ventilation airflows. Some British Coal mines are already experiencing significant problems in providing adequate climatic conditions in the working areas and have had to introduce air conditioning. Previous work has shown that in mines of low to moderate virgin strata temperature the application of controlled district recirculation could serve to improve climatic conditions at the working area.

Jan 1, 1988

By Wu Y, Qu Q

The Central Coal Mining Research Institute has developed the MAE acoustic emission monitoring system, the BD4-1 portable acoustic emission monitor and the MRB rock burst monitoring system. In the MAE system there is an IBM-PLAT, a receiver and 16 channels and the investigating range is 100 m. The main functions are detecting acoustic events from the working faces, periodically making statistics, prints, displays and storing of the results, and performing the off-line process such as drawing the curves of acoustic activity. The BD4-1 instrument has four channels, it works for more than 24 hours continuously, and keeps the data for more than 30 days after power tum-off. The BD4-1 is suited to the monitoring for a long or a short time as a fixed point where the system is invalid, especially to the monitoring of the acoustic activity promoted by the blasting. There is an IBM-PC/AT, a receiver and 16 channels spread 10 km in the system MRB. The system could on-line collect microseismic events throughout the whole mine, calculate the source location and the energy, and off-line draw the seismic activity draft of time-based or distribution in space. In practice, the forecasting is successful by using the acoustic emission and microseismic monitoring system and the portable instrument.

Jan 1, 1991

A study was undertaken to investigate the relationship between the quantity and value of economic demonstrated resources discovered for 12 mineral commodities over a ten year period and the expenditure required to yield such mineable resources. The results showed that for every dollar spent on exploration, there is an apparent in-ground average value of around $54 dollars contained in the economic resources found. While this appears to be a satisfactory return, it should be remembered that more than 99.9% of exploration programs are judged to be failures because a viable ore body or mineral deposit was not proved up. What is behind this seeming paradox?   The fundamental truth behind mineral exploration is the fact that the more you explore, the more you find, and that one success will often lead to further discoveries. It appears that one rich and viable deposit creates such surplus that its inherent high value ('the pot of gold') makes up for all the failures. In short, mineral exploration is a high risk business with uncertain returns. However, with skill, enthusiasm, experience and venture capital, it can yield larger than normal returns for the brave and the fortunate.   Analysis of exploration expenditure and economic resources discovered for the period 1987 to 1996 revealed that the apparent in-ground value of economic ore discovered per dollar of exploration expenditure varied from a high of $429 for iron ore and $261 for bauxite to a low of $22 for gold and for lead, and $5 per dollar of diamond exploration expenditure. Preliminary conclusions drawn on the reasons for the variations observed include the inherent ease or difficulty of discovery for different mineral commodities which may in some cases, relate to the natural prospectivity of Australia as a whole. Layered deposits like iron ore and bauxite appear to yield higher in-ground value returns on the exploration dollar. To some explorationists, this may be considered as seemingly obvious, but it may have more to do with very large-exploration tenement grants pursued by various Australian State Governments in the early 1950s and 1960s than the apparent ease of delineating a stratabound deposit.   Despite the apparent relatively low in-ground value produced by the gold exploration dollar of $22, the 5660 tonnes of gold discovered in this ten year period was worth $9.1 billion and representing over a quarter of the new mineral wealth created in the ten years to 1996. This contribution, along with that from the other minerals discovered over the period, led to a significant boost to Australia's export income and standard of living.   It is concluded that, given the nexus between the amount of mineral exploration expenditure and the quantity of new resources likely to be discovered, this knowledge may help policy makers seek to influence the rate of resource discovery in countries like Australia for the benefit of the nation.

Jan 1, 2004

By K Myers

Since the mid-1990s, the Chino Mine Facility (Chino) located near Silver City, New Mexico has been developing a closure plan with financial assurance to protect water quality, as required by State regulations. In February 2002, Chino and the New Mexico Environment Department (NMED) reached agreement on a closure plan; a closure cost amount of approximately $US 394 million ($A 591 million) was finalised in April 2003. Both the New Mexico Water Quality Act Regulations (1977) and the New Mexico Mining Act Regulations (1993) guided development of the closure plan and financial assurance amount. The process incorporated many years of correspondence, studies, negotiations and administrative hearings. The major technical issues focused on regrading slopes of the leach ore stockpiles and waste rock piles; cover systems; water treatment systems; and abatement of ground water contamination. The proposed financial assurance amount covers all closure costs and provides for perpetual water treatment.

Jan 1, 2003

Samples of a refractory copper ore were examined to test their response to segregation roasting, flotation, and acetonitrile leaching. Recoveries in the segregation roasting stage were between 60 and 100 per cent, while flotation recoveries varied between 60 and 85 per cent in cleaner concentrates assaying 25-40 per cent copper.The fraction of the copper which could be leached from the concentrate by an acetonitrile/sulphuric acid/cupric ion leach solution varied from 16 to 97 per cent, the lower recoveries being correlated with the presence of sulphide in the concentrate.

Jan 1, 1973

By L Nagy, K P. Juhasz

The authors were engaged to optimise a traditional rebar cage reinforced concrete segmental lining by means of finite element analysis (FEA) using macro synthetic fibres for the Shanghai metro extension. The aim of this study was to reduce or entirely replace the original steel reinforcement of the segmental lining, in order to make the precast production process faster and more economic. The outer diameter of the tunnel was 6200 mm, the thickness of the segments was 350 mm.The numerical calculations were performed by Atena Finite Element software, which is based on the combination of Menétrey-William and Rankine failure surfaces on the compression and tension sides respectively. The effect of the macro synthetic fibres was modelled as tension stiffening on the tension surface.A one-to-one full scale model of an assembled tunnel ring using the original reinforcement cages was tested at Tongji University in Shanghai, July 2013. The ring was tested to differing load levels where load and displacement were measured until failure. The author’s first step was to calculate the real displacement characteristics of the original reinforced concrete (RC) ring, then calculate the numerically modelled version, so as to compare them. The material parameters of the concrete and rebar used had been determined through basic material tests conducted at the Tongji University. (Bi, Liu and Wang, in press).The numerical modelling undertaken has shown good correlation with the full-scale physical test results. Optimisation of the lining reinforcement was achieved through the addition of fibres, resulting in a substantial reduction of the steel rebar cages. Several results have been computed with the numerical model using different dosages of macro synthetic fibres, showing that the mass of steel reinforcement could be reduced by 50 and 75 per cent respectively.CITATION:Juhasz, K P, Nagy, L and Winterberg, R, 2014. Full-round numerical modelling of a macro synthetic fibre reinforced tunnel boring machine tunnel in the Shanghai Metro extension, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 477–484 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

Listing on Australian Stock Exchange Limited ('ASX') is a means by which a company can prosper and grow by gaining access to a large capital market. This currently stands at over $300 billion for domestic securities listed on ASX. A company seeking listing will benefit from a higher profile and a greater spread of shareholders. These result from, among other things, improved communications with the investment community. ASX recognises that a decision to list is an important step for a company. Owing to the diverse nature and size of the companies that consider listing and the various steps involved, it is recommended that guidance of professional advisers is sought as early as possible in the listing process. A company seeking listing on ASX must meet the prerequisites for admission to the Official List which, along with the continuing obligations that must be complied with following admission, are contained in the Listing Rules of ASX. Listing on ASX requires a company to ensure that, among other things, the market is fully informed at all times so that investors can make informed investment decisions.

Jan 1, 1996

The words ""Uncertainty"" and ""Risk"" pervade every discussion about mining exploration and investment. Perhaps these terms are subjectively understood by industry professionals, but objective portrayal of these concepts outside the industry is a woefully undeveloped science. This paper addresses current industry understanding and practice regarding quantitative risk assessment techniques, and provides examples of the application of three of these techniques. Probabilistic techniques for financial risk assessment are valuable adjuncts to conventional financial analysis, and address a range of issues not assessable by any other means. The value of whole-of-project probabilistic risk assessment is currently debatable for decision-making purposes, but is seen as important as a mechanism to focus attention to the critical issues that ultimately impact on project success. The dissection of project capital into risk and non-risk components provides valuable insights into risk characteristics not readily quantifiable in any other way. This technique also provides a framework for more objective ""what if?"" scenario evaluation and for the capital structure of resource projects. Finally, mechanisms for the valuation of undeveloped reserves are examined, and guidelines suggested. The importance of reliability in production cost estimates is highlighted and the impact of early development on reserve valuations is discussed. The importance of economics throughout all stages of the evaluation process is fundamental.

Jan 1, 1994

By D Johansson, A Nordqvist, D Mihaylov, N Petropoulos, M Wimmer

The flowability of the caved rock masses in the sublevel caving (SLC) mining method is of great importance. During the blasting process of a SLC-ring, the caved rock mass in front of the ring is compacted. As a result of this compaction, the mechanical properties of the fractured rock masses change, for example void ratio, angle of internal friction and structure of the compacted material. The changed mechanical properties of caved rock mass and recent blasted material can influence the mobility of the material, which could result in blockage of the flow path of the material. The identification of the involved mechanisms in this process can be done after a series of tests in different scales. However, there is no available equipment for dynamic measurements during blasting, ie velocity and displacement of the burden and in the caved masses. This study focuses on the development and laboratory evaluation of a measuring system that can be installed in a borehole. The first trial was carried out in a pillar, where two blastholes had been drilled (9.5 m) parallel with the drift and two measuring holes (16.5 m) were perpendicular to the drift. Two measuring systems were installed in the measuring holes. Some preliminary tests were carried out to find suitable initiation procedures for the emulsion explosive. Applicability and robustness of the developed measuring system were also evaluated. In addition to these tests, an expandable cement mixture was developed to firmly anchor the measuring systems in the boreholes. The measuring system consists of an anchor, armoured cable in a pulling tube and a protective case. The anchor is equipped with uniaxial and triaxial accelerometers. A potentiometric measuring system for displacement up to 2 m is installed at the end of the pulling tube and connected to an extendable spiral cable. All sensors are connected to a data acquisition system (DAS). Both measuring systems have their own DAS to acquire data in case of failure of one of the systems. The measuring system was tested in laboratory conditions with impact velocity up to 10 m/s. It was proven to be functional and gave reliable results.CITATION:Petropoulos, N, Mihaylov, D, Johansson, D, Wimmer, M and Nordqvist, A, 2015. Design of equipment for dynamic burden measurements, in Proceedings 11th International Symposium on Rock Fragmentation by Blasting, pp 493–500 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 24, 2015

In 1984/85 financial year Australia produced 529 thousand barrels per day (kbd) of crude oil. By far the major contribution (453 kbd) was light waxy oil from offshore Gippsland, Victoria. When these discoveries were made in the latter 1960s, imported oil was available in abundant supply and at low prices. Because of this, the Gippsland producers persuaded Government to control the marketing and pricing of their crude, and thus provide the required security of offtake. Political events in the middle East created supply shortages during the 1970s, and dragged up government selling prices for OPEC crude oil. Thus Arab Light crude that sold for less than US$2/barrel (bl) in 1970 reached $34/bl in 1981. Following the consequent decline in world oil demand, in 1982, Australian refiners sought to evade their obligation to lift Gippsland crude. Hence, in 1983, the Government was forced to introduce a floor quota of 385 kbd of Gippsland crude liftings and to allow producers to export any additional production refiners did not require. On expiry of the old arrangements, Government introduced a partial free market from January 1985, whereby the balance in excess of 350 kbd may be sold to Australian refiners at negotiated prices, or exported as before. In 1984/85 exports were some 90 kbd and will be higher in the current year. About half this total has been exported by BHP, providing valuable experience and lessons which are described in the paper.

Jan 1, 1986