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THOSE who dabble in m.ining are no exception to the general rule that persons who know a little of a subject are apt to think that they know all about it. Some colour may be lent to the belief that anyone may succeed in mining when we hear stories ofsuccessful diggers and others who have accidentally dropped on to something good through no foresight on their part; but we seldom hear the contra account of the far larger number who fail. Those who go more thoroughly into the subject, and take up mining as a profession, know very well that it is not one that can be carried out successfully by rule of thumb, but when they point this out to the public they are credited with trying to make it a closed profession; and outsiders are for ever trying to find out the 'trade secrets,' at the same time spurning the main one, which is hard study, experience, and the ability to apply their knowledge.The average mining man is not rich. When he amasses a fortune it is generally through speculation rather than professional work, thought no doubt his technical knowledge may have assisted him. However, making a fortune and running a mine are twodifferent things.

Jan 1, 1911

North Eastern Russia encompasses the northern part of the Circum Pacific. The region comprises various tectonostratigraphic terranes, including cratonic blocks, fragments of volcanic arcs, accretionary wedge terranes, oceanic crust and passive continental margins. The terranes have been accreted to the eastern margin of the Siberian Craton in the Late Mesozoic. The prominent structures of the region are extended zones of the Mesozoic flysch and turbidites. Another important structure is the 3000 km long Okhotsk-Chukotka volcanic arc which marks the Cretaceous active continental margin of northern Eurasia. The youngest structure of the region is the 2000 km long Late Cainozoic Kamchatka-Kuril island arc system. North Eastern Russia is the main gold producing region of the Russian Federation. Since the beginning of recorded gold production in 1932 until 1995 the region has produced 2575 t (83M oz) of gold. Most of it, 2439.5 t, has been produced from placers. Owing to depletion of alluvial gold resources, exploration and mining emphasis is currently switching to the development of the lode deposits. At least five distinct types of the gold mineralisation are reported in North Eastern Russia - mesothermal gold mineralisation in the Mesozoic fold belts, Paleozoic epithermal gold mineralisation occurring within Omolon block, epithermal gold mineralisation related to the Mesozoic volcanics, Cainozoic epithermal gold mineralisation, gold-bearing Cu-porphyry deposits. The current paper introduces the metallogeny of lode-gold deposits of North Eastern Russia. It provides the review of the regional geology, the selected gold provinces and representative deposits with an emphasis on the mineralisation styles and distribution control.

Jan 1, 1999

By G Diprose

Diamond exploration in Queensland is influenced by the South African approach modified by the discovery of diamonds in Lamproite in Western Australia. The current approach is to explore for Kimberlite and Lamproite bodies using indicator minerals dispersed by fluvial and colluvial processes. In the north-west, diamonds are derived from kimberlitic and lamproitic sources, whereas those in the coastal and subcoastal areas of eastern Queensland are associated with xenoliths included in rocks formed during Cainozoic volcanism. In these areas, sapphire is commonly associated with diamonds. In New South Wales diamonds in economic quantities occur in alkali basaltic intrusions and a subduction model has been proposed for these occurrences (Barrows et al, 1996). Exploration for diamonds in Australia increased following the discovery and exploitation of the Argyle mine. State geological surveys have produced digital information on the local occurrences of diamonds. As part of the Smart Mining Initiative (2006 - 2010), the Geological Survey of Queensland compiled a database and report on microdiamonds and diamond indicator minerals from open file company exploration data from 1968 to 2008 from the Department of Mines and EnergyÆs QDEX system. Most exploration in Queensland was conducted with exploration for other commodities. There is no commercial exploitation of diamonds in Queensland and, to date, only rare occurrences of microdiamonds. There is a regional difference in diamond occurrences with the kimberlitic and lamproitic models favoured for the north-western regions of the State and the subduction (S-type model) favoured for the eastern coastal zone linked to Cainozoic alkalic basaltic volcanism. Further diamond exploration is warranted in Cainozoic basalt provinces along the eastern coastal and near coastal regions and in the north-west of the state in conjunction with airborne geophysics flown as part of current Departmental Smart initiatives. An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation.

Jan 1, 2008

By R F. Sandenbergh

Due to environmental considerations, mineral processing plants are increasingly recycling water to decrease the impacts of wastewater on environment and the depletion of fresh water resources. Industrial experience has shown that increasing recycling water in flotation typically negatively impacts the recovery and selectivity, especially in the selective flotation of minerals from complex sulfide ores. The major reason for the reduced selectivity is typically the inadvertent activation of sphalerite or pyrite by the heavy metal ions (HMI) in solution. These HMI are often produced during milling and flotation and absorbed by other minerals. In the normal flotation pH value range (8 - 10), these HMI are often in the form of precipitates or complex ions that may re-appear in solution or become active should conditions favour this. In this paper, microflotation, batch flotation and XPS surface measurement were used to investigate the use of HMI absorbents additions to the pulp to improve flotation selectivity of a complex sulfide ore. It has been demonstrated that HMI removal does improve flotation selectivity by facilitating more effective depression of the sphalerite. Microflotation and XPS surface measurements have shown that HMI absorbents compete with sphalerite to absorb HMI, and thus reduce the surface concentration of HMI on those sulfides. The practical use of HMI absorbents in complex sulfide ore flotation is also discussed.

Jan 1, 2005

By A Black, A de Jo, J Cavanagh, J Harding

Acidic and metal-rich waters have been discharging from Sullivan Mine, West Coast, New Zealand since the closure of the mine during the early- 1990s. This has resulted in a decrease in pH from a background of 4.5 to 2.8 and an increase in metallic elements in nearby Rapid Stream. In addition to the chemical effects on Rapid Stream, a study of freshwater macro-invertebrates revealed the absence of most biota downstream from the discharge. An attempt is being made to use the Sullivan Mine as a case study of problem and remediation analysis.

Jan 1, 2003

By E A. Agorhom, M Beyuo, C Owusu, I Quaicoe

Understanding the mineralogy and liberation of gold particles in an ore is key to the development and optimisation of gold processing operations, being cyanidation or gravity separation. This can be achieved through basic historic geological information, gold deportment studies, chemical speciation and metallurgical test works. The present study assessed the nature of the occurrence of gold particles (mineralogical composition, liberation, associations and surface chemistry) and its effect on the process route (cyanidation and gravity separation) of a typical paleo placer gold ore deposit within the Tarkwaian Rock system. The investigative approach used involved chemical assay, quantitative X-ray diffraction (QXRD) and quantitative evaluation of minerals using scanning electron microscopy (QEMSCAN). The ore samples (A, B, C, D, E, F) used were obtained from six active pits of a gold mine working on this orebody. The results of the mineralogical analysis revealed that the ore is highly oxidised and comprised quartz (>80 per cent) and Muscovite mica (>6 per cent) as the major mineral phases in all the samples. Trace amounts of hematite, kaolinite and todorokite were also identified in all the samples. The chemical analysis showed presence of gold (Au) in all the samples with samples B (3.62 g/t) and C (3.96 g/t) containing the highest concentrations. Trace amounts of copper (Cu), iron (Fe), sulfur (S), aluminium (Al), arsenic (As) were also detected in all the ores. The QEMSCAN mineralogical liberation and gold association results revealed that the gold grains were relatively coarser in all samples (P80 > 80 µm Au in size) except F (P80 < 32 µm Au in size). Gold grains were highly liberated especially in sample B with the majority of the locked gold grains forming complex associations. All the samples responded well to cyanidation and gravity separation except samples C and F, respectively.

Aug 24, 2022

By D M. Frantois-Bongarton

Variograms can be powerful tools for the analysis and control of process streams and their sampling. Their uses and proper utilisation have been described somewhat unclearly to date, and their limitations and precautions of use are too rarely mentioned. The general meaning and properties of the variogram tool and its use in geostatistics are therefore reviewed in details to derive a critical view of its proper use for process control: what to expect from it and what it cannot deliver and which uses are illusory or potentially misleading. A summary of GyÆs seminal work accompanies this essay to put the concepts into historical perspective.CITATION:Frantois-Bongarton, D M, 2012. Review of variogram properties and remarks on its use in process control, in Proceedings Sampling 2012 , pp 175-180 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 21, 2012

By I D. Hair

A numerical groundwater model was used to predict the nature of interactions between heavy mineral sands mining operations and the groundwater regime at North Stradbroke Island, Southeast Queensland. North Stradbroke Island is formed mainly of massive vegetated Cainozoic aged dune sands. Since the 1950s, a number of operations have mined rutile, zircon and ilmenite on North Stradbroke Island. In such mining operations, a dredge and an associated processing plant are floated in a pond either above or below the prime groundwater table The numerical model was based on the North Stradbroke Island Groundwater Management Model, developed in 2001 by the Department of Natural Resources and Mines (NR&M). This model was constructed using the modular, cell-centred, finite-difference groundwater flow model, MODFLOW, developed by the United States Geological Survey (USGS). The NR&M model was refined to improve model resolution and detail for simulating dredge mine paths. Of particular interest were: water table fluctuations induced by mining for the identification of slope stability risk; the optimisation of sand spear arrays supplying mine make-up water requirements; inflow and outflow rates to the dredge pond for overall mine water balance; and interactions with Eighteen Mile Swamp and water supply bores controlled by the Redland Shire Council (RSC). Depending on the water level in the dredge pond compared with the surrounding groundwater table, water either flows out of the dredge pond into the groundwater regime or from the groundwater system into the dredge pond. The MODFLOW river package (RIV) was utilised for the modelling study. Dredge pond movement was simulated using specialised software developed by Watermark Numerical Computing (WNC) to interpolate pond positions and map the dredge path to the model grid both spatially and temporally. As tailings placement affects the groundwater system through increased recharge, the MODFLOW recharge package (RCH) was utilised to simulate different recharge efficiencies. Long-term model predictions were made for the period from July 2002 to May 2021. Results of the modelling showed that exchanges of flow between mining operations and the groundwater regime could be effectively managed. The study provided valuable information which was used to develop an appropriate mine water management plan.

Jan 1, 2003

By M Akhtar, E Jak, M Shevchenko

This article presents an overview of the experimental phase equilibria studies of S-containing systems (Ni-Sn-S, Cu-Sb-S, and Cu-Sn-S) and As-containing systems (Fe-Sb-As and Fe-Sn-As). These systems improve the prediction capabilities of FactSage in a 20-component ‘Cu2O’-PbO-ZnOFeO- Fe2O3-CaO-SiO2-S-(Al2O3-MgO-CrO-Cr2O3-Na2O)-(As, Sn, Sb, Bi, Ag, Au, Ni, Co) system for complex pyrometallurgical operations during both refining and recycling. Experiments involved equilibration at predetermined temperatures (300–1200°C) with or without preheating, followed by rapid quenching in a brine. Quenched samples were then directly measured using an electron probe microanalyser. For the Ni-Sn-S system, liquid phases (NiS- and SnS-rich mattes and liquid metal) and solid phases (Ni1+xSn, SnS, Ni3Sn, FCC-Ni, Ni1-xS, NiS2, Ni3Sn4, SnS2, Sn2S3 and β-Ni3S2) were observed. A new Ni3Sn2S2 phase was found to melt incongruently. For the Cu-Sb-S system, liquid metal, matte, FCC-Cu, digenite, Sb, CuSbS2, Cu3SbS3 and Cu3SbS4 phases were observed. For the Cu-Sn-S system, liquid metal, matte, digenite, SnS and Cu3Sn phases were found at liquidus.

Jun 17, 2024

By M Boon, M Franklin

This paper outlines the journey of cultural maturation and management system development at the Mt Rawdon (MRO) gold mine from its acquisition by Evolution Mining Limited (Evolution) in late 2011 to 2016.Evolution embarked upon a series of projects that aimed to improve the operational consistency and implementation of change on-site, while leveraging off the existing strengths of the operation. This document describes the gaps that were identified, the processes used to close them, and the resulting cultural change and production outcomes, with a specific focus on how to optimise the culture at any mining operation.MRO had a history of four owners in less than three years when it became a key asset of Evolution. The site leadership team (SLT) decided to influence the culture at MRO by reviewing and upgrading the existing management processes.The first priority was to improve transparency and collaboration at the SLT level, followed by improving competency in project management. The next phase was to strengthen the internal communication using a deliberately designed network of meetings, communication screens and other initiatives. Once there was some traction, the focus moved toward increasing production volume and decreasing cost per unit by improving short-term planning and execution capability. Together with other initiatives, this resulted in improved collaboration between all functions, which in turn netted over 37 per cent mining production uplift.Following solid success, a process of prioritisation and alignment management was implemented. This supported the ‘Mine to Mill one operation’ ideal and allowed the SLT to decide month-by-month what actions were to be prioritised. These priorities incorporated production realities and longer term imperatives of the balanced business plan.Much of this work was completed during a period of declining gold prices and a relentlessly strong Australian dollar, making it difficult to justify spending money on improvement projects. This work proved critical for the operation’s long-term survival.CITATION:Boon, M and Franklin, M, 2016. Improving consistency of delivery at Mt Rawdon Operation, in Proceedings International Mine Management Conference, pp 305-320 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By A L. Zawadski, B G. Putland

"This paper discusses a method to build a calibrated comminution circuit model, using historic operating data and blend information that is useful for forecasting and optimising plant performance, as well as evaluating expansion opportunities. A preferred method for building a calibrated power-based comminution model is discussed and justified based on two case studies, offering low-cost and effective strategies to utilise existing information for the maximum possible benefit.The first example is the Lefa Gold Mine located in Guinea, West Africa operating a semi-autogenous grinding (SAG) and ball milling circuit with recycle crushing (SABC). Daily blend information and operating data was utilised to build and calibrate a power-based model of the comminution circuit. The least squares regression method was used to solve the SAG mill specific energy requirement and the operating work index (Wio) for each individual ore type. The calibrated model was used to evaluate expansion strategies to sustain throughput at higher proportions of fresh ore based on the proposed life-of-mine schedule.The second example is the Ok Tedi Copper-Gold Mine in Papua New Guinea operating a SAG and ball milling circuit (SAB). The circuit limitation would often shift between the SAG mill and the ball mill due to variable ore characteristics and feed blend. Typical SAG mill relief strategies, such as recycle crushing or secondary crushing, required significant capital expenditure and the potential throughput benefit would vary depending on ore type, making economic justification difficult. Daily blend information and operating data was used to build and calibrate a power-based model of the comminution circuit to identify ore types that might benefit from higher blast intensities to increase fines content, thus relieving the SAG mill limitation and increasing overall throughput without a major capital investment.Citation:Zawadski, A L and Putland, B G, 2016. Calibrating Comminution Models Using Operating Data to Forecast and Optimise Plant Performance, in Proceedings 13th AusIMM Mill Operators’ Conference 2016, pp 17&ndash;26 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Oct 10, 2016

By M Hopkins, A Mutale, A E. Vidal da Silva

The Cliffs Nickel Mine extracts a narrow near vertical nickel vein using a mining method of underhand bench stoping with paste backfill. In 2014, at a depth of 400 m below surface, the Northern block of the mine began to experience squeezing within ore development. At first the deformation was localised, within 30 m of the stoping front, but later became pervasive extending across the Northern block and resulting in a hiatus in mine production. The global mechanism is a progressive pillar failure, where the inter-level pillars in advance of the production front could no longer withstand the induced load and progressively yielded. The local mechanism of failure was observed as crushing of the massive sulphide ore and ‘punching’ of the pillars into the ultramafic hangingwall exhibited as floor and sidewall dilation and unravelling of the mafic footwall. The cause of the global mechanism was attributed to a combination of factors, including: high overall extraction ratio, small vertical pillar heights between ore development, high stress in relation to the low rock mass strength, shallow stope front angle, and insufficient ground support capacity. Following the progressive failure, the remnant rock mass conditions across the northern block were severely degraded, with numerous falls of ground that led to a reassessment of the mine plan. Recovery of the Northern block started in 2016 as a staged process. Development of the safe recovery work methodology involved a number of considerations, such as: production sequencing, development access design, ground support, and development of specific procedural controls. The Northern block was then broken into smaller mining precincts based on tactical factors such as location, ease of access, scale of rock mass damage and nickel content. A specific ground support standard and work methodology are employed, while cycle sheets are used to ensure quality and completeness of work. Large intersections showing signs of deformation have either been bypassed or treated using Rocprops to maintain stability during stope production. This approach has been successful in safely regaining access and restarting production in areas that had previously been removed from the mining reserve.

Mar 15, 2021

By J Karlovšek, M Hafner, M Žibert

The transport network in Europe is probably one of the most important systems for the European economy and society. Trans-national transport routes play a vital role in the traffic of goods and the supply of the population. In this respect, critical road infrastructures, like bridges, tunnels or control centres, can have a bottleneck function. Any disturbance of these structures could lead to negative consequences for the population and the economy as a whole.Project SecMan – Security Manual – is a simple four-step procedure for the identification of critical road infrastructures; assessment of these infrastructures regarding various man-made threats and the determination of effective protection measures was developed. These methodologies are summarised and combined into a comprehensive best-practice manual that allows for a trans-national structured and holistic security-risk-management approach for owners and operators of road infrastructures in Europe.Currently no common processes, methodologies or standards exist in Europe regarding the consideration of security relevant events for critical road transport infrastructures, eg tunnels, control centres and bridges. Attacks on the former can have severe short- and long-term effects with high media attention. A trans-national risk management approach would increase the possibilities for prevention as well as mitigation. A trans-national emergency response strategy would increase preparedness, as well as facilitating and accelerating the reaction in the case of an event.The main objective of the project is to develop a practical process for the identification of critical road infrastructures based on generally accepted security aspects. The assessment of these infrastructures would be carried out in a structured and traceable way regarding security relevant risks and the determination of effective protection measures for prevention and mitigation.The project is implemented by the German Federal Highway Research Institute (BASt) together with project partners from Austria (ILF) and Slovenia (DARS, ELEA iC).CITATION:Hafner, M, Karlovšek, J and Žibert, M, 2014. Road infrastructure security assessment and measures selection methodology using secman – tunnel example, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 69–82 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

By L Gladysiewicz

This paper deals with the current situation in the mining industry in Poland. An overview of typical transport systems working in the different branches of mining is provided. The transport systems currently used in lignite mining, particularly in the Belchat=w mine û the largest brown coal mine in Poland, and those operating in copper mines are described in detail. New designs of belt conveyors used in underground hard coal and copper mining are presented.

Jan 1, 2003

By G K. N Subasinghe

Metallurgists operating Knelson Concentrators (KC) often rely on manufacturerÆs recommendations for selecting operating parameters, such as fluidising water flow rate and cycle time. Recent studies have shown that these parameters are not only dependent on the machine parameters but also on the feed characteristics, such as size distribution of the gold and gangue particles and the composition of its constituent minerals. It is known that a particle entering a KC initially traverses a circular path within the bowl. For a particle to maintain a given orbit, the required centripetal force must be supplied by external means. It has been argued that this centripetal force, which is dependent on the mass of the particle, its radial position and the rotational speed of the bowl, is provided by the fluid drag force created by inwardly moving fluidising water and the BagnoldÆs force created by the particle/particle collisions. Depending on the fluidising water flow rate, one of two situations can occur where the porosity of the bed increases or decreases, which influences the amount of material retained within the bowl. The amount of material of a given size and density retained in the bowl is thus dependent on the extent of the centripetal force provided. Based on the above concept, a criterion that can be used to predict the amount of material recovered in the bowl has been derived and validated by experimental data. It may also be construed that this criterion demarcates the transition of the bed from a packed-bed state to a fluidised state. By identifying the transition values for the different constituent mineral particles in the feed, it is possible to estimate the optimal fluidising water flow rate that would maximise gold recovery while minimising gangue recovery. In addition, the kinetics of gangue displacement by incoming heavy mineral particles were also studied using synthetic mineral mixtures. The experimental data suggests that this process follows first order kinetics and that the build-up of heavy mineral reaches a maximum. A model has been proposed to predict the optimal batch cycle time for a KC in terms of the feed characteristics and machine operating parameters.

Jan 1, 2006

By R C. Morris

Two major types of economic secondary iron ores occur in the banded iron formation (BIF)-rich Hamersley Province of the Pilbara, Western Australia:dominant BIF-hosted bedded iron deposits (BID)detrital ore deposits (DID sensu lato), which are mainly hosted in the three province-wide Cenozoic sequences that include coeval non-ore sediments and comprise:a. the major Miocene, fluvial channel iron deposits (CID)b. the lesser Eocene and Pliocene detrital iron deposits (DID sensu stricto).Striking differences exist between the massive CID resources and the much smaller underlying and overlying DID. CID are essentially riverine alluvial ooidal rocks with abundant small fossil wood fragments and variable iron peloids, but with only extremely rare recognisable lithic remnants. The original matrix is typically ramifying layered goethite. Eocene DID are mainly alluvial with minor pisoids, whereas Pliocene–Quaternary DID are dominantly coarse colluvial gravels, both derived from and largely retaining the original textures of BID, hard cap or variably ferruginised surface BIF. The colluvial DID matrix is typically ferroan-aluminous soil, resulting in canga where replaced by goethite, which may be dehydrated to hematite by exposure. The Cenozoic deposits occur in two dominant geomorphological environments: the southern Marra Mamba to Brockman Iron Formation strike valleys containing all three Cenozoic sequences and the much later northern Brockman Iron Formation plateau valleys that include only the Miocene and Pliocene sequences. The Cenozoic detritals formed in different climatic regimes, with an extended dry period forming a prominent province-wide dehydrated carapace on the Eocene DID. The Miocene ‘optimum’ followed with its thick scrub-covered deep regolith that produced the fossil wood-rich CID and was succeeded by the arid cool period of the Oakover limestone/calcrete. A major renewal of exposure and erosion in the Pliocene resulted in the extensive iron gravels of the Pliocene–Quaternary.CITATION:Morris, R C, 2015. The Cenozoic detrital iron deposits of the Hamersley Province of Western Australia – a tribute to Mal Kneeshaw, in Proceedings Iron Ore 2015, pp 319–326 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

Since the introduction of the Neil George Five Point Safety System, to the underground sections of The Zinc Corporation, Limited and New Broken Hill Consolidated Limited mines in March, 1969, the Disabling Injury Frequency Rate has been halved and shows signs of contin- uing to fall. The total accident frequency rate has also fallen, although the decrease has not been as significant. Before the introduction of the Neil George Safety System, analyses of the direct causes of accidents showed that approx- imately 25 per cent were caused by "unsafe conditions", while 75 per cent were attribu- table to "unsafe acts". Within twelve months of introducing the system, these percentages had significantly changed to 7 per cent unsafe conditions and 93 per cent unsafe acts. Today, the figures are 3 per cent and 97 per cent respectively, and these figures clearly show that the main emphasis in the current programme must be directed towards making the operating men safety conscious. The effort must be focused on changing the minds of men.

Jan 1, 1975

In a previous study, various pyrite depressants were examined to improve the flotation performance of a copper-sulfide ore. Optimal results from this study were used to examine the effect of elevation on recovery and grade. Tests were conducted at elevations of 3350, 1735, 610 and -760 metres, consisted of five repetitive experiments for statistical analysis, and were performed both with and without airflow control. Tests were also performed in a glove box at Montana Tech to mimic the pressure conditions. Results indicate that both recovery and grade are dependent on pressure via bubble size and airflow suggesting that pressurised flotation cells should be considered for operations, particularly those at high elevation. Economics are extremely favourable for implementation because ensuing capital expenses are inconsequential with minimal time for return-on-investment.

Jan 1, 2005

By G V. R Goodman, G J. Chekan, J M. Listak

The extraction and transport of coal from underground coal mines can result in significant liberation of coal and/or silica dust into the mine atmosphere. Mine operators have long used ventilating air as a primary means of diluting generated dust, removing dust from the working faces and preventing dust from reaching the minersÆ working environment. As production levels have increased, mine operators continue to be challenged in maintaining dust concentrations below compliance levels. The need for maximising the effectiveness of available ventilating air in conjunction with other effective controls, such as water sprays and dust collectors, continues to be critical to the long-term health of mine workers. The National Institute for Occupational Safety and Health (NIOSH) has conducted full-scale laboratory and mine-site research to evaluate improved application of dust controls for both longwall and continuous mining methods. A summary of recent research results and recommended practices will be provided.

Jan 1, 2005

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

Jan 1, 2000