Search Documents

By M Russ, J Gediga

This paper shows an economic feasible approach to implement greenhouse gas (GHG) reduction measures into the mining and metallurgy industry (MMI). The goal to improve energy consumption is directly linked to the reduction of GHG emissions in the MMI. A baseline scenario of the considered reference system and of the respective reference year has to be designed and analysed. In a second step an analysis of the same operation using the best available technology (BAT) processes is carried out to generate a basis for a benchmark system. The identified gaps will be reported and the potential GHG emission reductions will be put into relation to the investment, running cost and generated carbon credits of the new process technologies to be implemented. This economic feasibility calculation is necessary to realise a cost efficient GHG reduction roadmap decision-making for implementing new technology into the companyÆs business operations. The GHG reduction roadmap is developed using the marginal abatement curve approach.

Jan 1, 2009

By R Baumgartner

The Canahuire deposit is a recently discovered Au-Cu-Ag epithermal deposit in Southern Peru. A geometallurgy program is a key study element of the project Feasibility study. Metallurgical, mineralogical, and comminution studies have been completed over a suite of samples, spatially distributed among the various geological/ore domains. The early stage of Canahuire presents challenges as there is a lack of metallurgical information to guide geometallurgical sampling, in contrast with an established deposit at a more advanced stage of development or mining. Nevertheless, the available information will assist in the development of geometallurgical domains for Canahuire in order to ensure that future metallurgical, mineralogical, and comminution test work is representative of the deposit variability. This supplementary knowledge will be able to predict important metallurgical parameters which will be incorporated into a geometallurgical model to spatial predict material types, metallurgical recovery and through put. The information obtained will be a valuable addition to the future mine plan, influencing process design, engineering design, plant operation, operating and capital costs, and ultimately will reduce project development risk.

Sep 5, 2011

By V M. Silva, P A. A Martins, V O. Matthew, A L. S Fonseca, E B. Cunha, A J. D Ferrari, E M. S Silva, A C. Silva, D R. T Vilela

The Anglo American phosphate mine is located in the Brazilian state of Goiás and possesses one of Brazil’s most important phosphate rock deposits, with the site being the country’s second largest producer of phosphate rock concentrate. Despite the site having been in operation since 1979, the mining team only started using explosives in 2004 when rocks with greater hardness started to appear in the mine’s geological profile. Rock excavation was previously performed mechanically. Until 2013, only rocks with high hardness were blasted, this following the standard drilling grid that was defined in 2004 without any changes in the blast parameters. The aim of this paper is to show how fragmentation optimisation has yielded positive results at all stages of the production chain, from the mine to the mill passing through an impact hammer crusher, a rod mill and ball mill, operating in close circuit with hydrocyclones.While incorporating the mine to mill holistic approach during the operational integration, the focus was on defining the blasting domains and respective optimal fragmentation and measuring the benefits of blasting in terms of reduction in energy and grinding media consumed in the comminution processes. In the first stage, the blasting team made changes to the blasting parameters and assessed the effects of these changes on fragmentation using computer software and on-site measurements. This generated a database that made it possible to divide the mine into blasting domains. For the second stage, teams from the plant, geology, mine planning and operation departments jointly made comparisons between the performance when processing stockpiles, which only included high hardness blasted ore (20–30 per cent of blasted ore). Changing the drilling grid’s size from 3.0 m × 3.8 m to 2.0 m × 2.6 m for high hardness rock with the presence of silicates resulted in a 40 per cent reduction in the P80 for the blasted material (from 459 to 278 mm), while changing the grid from 3.0 m × 3.8 m to 2.6 m × 3.2 m for high hardness rock without the presence of silicates generated a reduction of 25 per cent (from 270 to 204 mm). There were gains observed from the measurements at the mineral processing plant in terms of specific energy spent on comminution and on the consumption of grinding bodies in the rod mill. There was a measured reduction of circulating load during secondary grinding and a reduction in slime generation.CITATION:Silva, A C, Martins, P A A, Silva, E M S, Fonseca, A L S, Ferrari, A J D, Cunha, E B, Silva, V M, Matthew, V O and Vilela, D R T, 2015. Fragmentation optimisation – adopting mine to mill for reducing costs and increasing productivity, in Proceedings 11th International Symposium on Rock Fragmentation by Blasting, pp 363–368 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 24, 2015

By Robertson AC

Studies by Tennent, Isokangas Pty Ltd (TIP) have indicated that underground quarrying of backfill may be a cost competitive option for providing backfill for specialised situations in underground mining. Situations where suitable bulk fill material may not be available on the surface, and where the total cost of setting up a fill distribution system are prohibitive, could favour the mining of fill material underground adjacent to the stopes being mined. Considerations include environmental impact, scheduling, surface constraints and total costs. The examples quoted in this paper, and the case studies are based on the authors' personal observations and experience.

Jan 1, 1998

By P Breuer, X Dai, A Bergamin, D Hewitt

"Copper-ammonia-thiosulfate?leaching of gold has been researched for several decades as a potential alternative to cyanidation. However, this technology has not yet been applied commercially due to many challenges such as complex solution chemistry, reagent degradation and losses, system instability with losses of precious metals and difficulties in gold recovery from the leachate. Progress has been made at CSIRO in tackling some of these challenges including:better understanding and control of the leach conditions to minimise reagent losses whilst maximising gold recovery use of strong base ion exchange resins to recover the gold strategies to deal with polythionates that adsorb competitively with gold on ion exchange resins development and evaluation of process flow sheets.As a result there has been increased interest from the gold industry and renewed activities to develop thiosulfate based processes for gold recovery. One application area, which has been developed to the point of piloting, is the treatment of gravity gold concentrates using a copper-ammonia-thiosulfate leach with ion exchange recovery of the gold thiosulfate. This paper describes some of the advancements in the development of a potential process flow sheet for this application.CITATION:Dai, X, Breuer, P, Hewitt, D and Bergamin, A, 2013. Thiosulfate process for treating gold concentrates, in Proceedings World Gold 2013, pp 61-70 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Sep 26, 2013

By R O’Sullivan, D Taylor, J G. McLellan, B Miller

The Mount Isa copper deposit is located adjacent to the city of Mount Isa, Queensland, and lies within a series of Palaeoproterozoic to Mesoproterozoic Superbasins. The deposit is hosted almost entirely within the Urquhart Shale (US), a unit of the Mount Isa Group sediments and part of the Isa Superbasin. The copper mineralisation is separated into two distinct orebodies: the X41 mine (1100 and 1900 orebodies) and the Enterprise mine (3000 and 3500 orebodies). The orebodies are situated in the hanging wall of the major controlling structures, the Paroo Fault, which has juxtaposed older basement Eastern Creek Volcanics against the younger Mount Isa Group sediments cf 1655 ± 4 Ma. Conjecture remains over the exact timing of this thrust event. However, it is clear that inflections on the Paroo Fault have a close association with the orebodies and are an important structural feature in the mineralisation of the Mount Isa copper deposit.The life-of-mine is reducing steadily and new geomechanical modelling techniques were employed to target structurally controlled mineralised zones in three dimensions. Following a structural review of the mine using underground mapping, structural data and core shed observations, a conceptual 3D mine model was constructed utilising existing data modelled in MineSight®. This conceptual model included all the main lithological units and structures. The conceptual model aimed to test the effects of deformation on the main lithological and structural components of the system and attempted to highlight areas of anomalous stress and strain that may indicate a higher likelihood of fluid focusing and mineralisation potential. This project was focused on testing the latter stages of a D3 event (NE–SW compression) and D4 event (SE–NW compression), which are considered to be responsible for the current location of the mineralisation.The fully coupled 3D finite element analysis models resulted in highlighting anomalous patterns of stress and strain and subsequent fluid flow as a result of the two deformation events. The NE–SW D3 simulation provided the best correlation with the known distribution of mineralisation. This event also indicated several areas on the Paroo Fault and within the US that have potential to host further areas of mineralisation. The SE–NW D4 simulation provided less of a correlation with known mineralised zones. However, this event may have been responsible for post mineralisation re-mobilisation of copper on a relatively small scale. Areas of maximum shear strain, shear stress, volumetric strain and fluid flow correlated well with areas of minimum principal stress and provided the best overall match with known mineralised zones. Furthermore, several additional highlighted areas provide a high potential for further discovery of copper mineralisation. Recent exploration drilling north of the Enterprise mine 3000 orebody, utilising geomechanical modelling as part of the targeting criteria, intersected copper mineralisation, providing further validation of the modelling results.CITATION:McLellan, J G, O’Sullivan, R, Miller, B and Taylor, D, 2014. Geomechanical modelling of the Mount Isa copper deposit – predicting mineralisation, in Proceedings Ninth International Mining Geology Conference 2014 , pp 197–206 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 18, 2014

By K J. McDonald

All commercially available zircon sands contain radioactivity sourcing from the decay of trace amounts of contained uranium (U) and thorium (Th). The fine particle size zircons of the Horsham area in the Murray Basin region of Victoria, Australia, contain significantly more (about twice) Th+U than those commercial zircon sands. The marketability of these fine-grained zircon sands is likely to rely on the removal of these radioactive impurities. CSIRO Minerals have been working for some time to develop processes for the removal of the radioactive impurities from zircon. It is generally agreed that it is quite impossible to leach U and Th from zircon, however, the Heat and Leach (HL) process, described in detail in Aral and McDonald (1999), reduces the radionuclide levels significantly. The identified (HL) process aims to leach uranium and thorium selectively from a decomposed zircon. The novelty of the process is that a large part of the leached product can be reconstituted to a low radiation zircon by a subsequent heat treatment. The HL process uses a flux mixture of sodium carbonate and calcium borate to decompose the zircon at relatively low temperatures (900 to 1150¦C) and a weak acid (0.5M HNO3; 80¦C/0.5 h; pulp density ten per cent) to leach the radionuclides selectively. The process leaves the major components (ZrO2 and SiO2) behind with little loss. The HL process for example lowers the U+Th content of a Murray Basin zircon from 1000 ppm to 400 ppm U+Th. Among the radionuclides more U progeny is removed than the Th series radionuclides. This is very significant as the radioactivity of U series is 2.5 times more that from the Th series. Therefore the reduction in the radioactivity level of zircon is more than the reduction in Th+U indicated by XRF analysis. A schematic flow sheet of the HL process is shown in Figure 1. Although the HL process successfully lowers the radionuclide levels in zircon sands, the final product contains significant amounts of sodium (up to 14 per cent Na2O) and small amounts of CaO. By comparison, the sodium content of the commercial zircon sands is in general 2O. Zircon is used mainly as an opacifier in tile glazing where the addition of ten to 15 per cent zircon to a translucent base glaze gives the sanitary white colour to the tile surface. Opacification is the result of the refractoriness of zircon particles at the glaze firing temperatures that is generally around 1050¦C.

Jan 1, 2001

By M Singh, R C. Steinhaus, J J. Rust

Metallurgical process control systems in mineral plants often employ state-of-the-art monitoring analysers in an attempt to optimise plant operations and enhance mineral recoveries. These systems are unfortunately invariably fed by simplistic ‘sampling’ designs consisting of various in-stream methods or pressurised probes. These are unfortunate compromises and provide a false picture of what a mineral flotation or other process can achieve. The situation is further aggravated by some manufacturers using misleading marketing to suggest discrete cross-stream methods for metallurgical accounting and unreliable continuous in-stream off-takes for control sampling and that they are of synonymous integrity.Reliable, absolute or representative samples are often absent in many modern day concentrator plants, due to compromises around sample taking, particularly in terms of delineation and extraction errors and thus leading to sample bias. For more reliable information from online analysers we need a continuous, but much more reliable sample taken, than is current practice.Online analysers require a fully proportional and continuous supply of sample for effective process control, otherwise maximised or benchmark recoveries will be nothing but a pipe dream. Large discrete cross-stream samples from mechanically less reliable equipment cannot be used as feed to online analysers, as it will negatively impact real-time feedback and efficient process control.It is possible to build correct sampling systems that could do both process controls online and metallurgical accounting at the same time. Multotec Process Equipment (Pty) Limited, in close association with experienced sampling consultant Francis Pitard, have jointly patented a concept to achieve this and which is embodied in the design of the unique Rotating Cone® Sampler (International Patent Application No. PCT/IB2016/057464). This versatile unit for dry and wet applications has high division ratios via two-step sampling and division.A prototype was built and tested to validate the design and levels of precision achievable when employing the unit to split dry mineral fines or even certain foodstuffs.CITATION:Steinhaus, R C, Rust, J J and Singh, M, 2017. Does process control sampling always have to be a compromise?, in Proceedings Eighth World Conference on Sampling and Blending , pp 197–202 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2017

EIA is a test of a development proposalÆs legitimacy and asks two questions: not only æis the proposal competent?Æ but also ædoes the proposal have moral authority?Æ For reasons of miningÆs historic importance and of a scientific and technological industry culture, traditional EIA has focussed on the first on these, an increasingly misplaced priority in a changing world.This paper explains why competence alone is not enough and examines the second of the two questions: what is meant by a projectÆs moral authority, why does it matter, why has it taken so long to become an issue and what, in practical terms, can project proponents do about it.

Jan 1, 2004

By A Bax, G Wardell-Johnson, W P. Staunton, J McGrath, J J. Eksteen

Since 2001, the AMIRA P420 gold processing technology project series has been studying the recovery of gold using gravity devices, with particular emphasis on the centrifugal units, Knelson and Falcon concentrators. The work has entailed the surveying of operating gravity circuits in Australia, Africa and North and South America.This paper reviews some of the results and lessons of these studies, including common circuit operating and design factors, which limit gravity recovery; pointers towards effective modelling of gravity circuits; and the contribution of gravity to overall gold recovery.CITATION:Wardell-Johnson, G, Bax, A, Staunton, W P, McGrath, J and Eksteen, J J, 2013. A decade of gravity gold recovery, in Proceedings World Gold 2013 , pp 225-232 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 26, 2013

By A Giblett, B Putland

This paper provides a simple guiding framework for grinding circuit optimisation, focussing on common themes in past optimisation success stories, the conditions for success and techniques that can be employed to identify and define opportunities. Many significant grinding circuit improvements have been reported for operating plants, based on recurring themes such as the optimisation of mill feed size, mill liner design, process control, critical size, grinding media and classification. The paper condenses these experiences into a set of simple questions for the operator to ask, and provides guidance towards identifying and achieving the optimisation goals.CITATION:Giblett, A and Putland, B, 2018. The basics of grinding circuit optimisation, in Proceedings 14th AusIMM Mill Operators' Conference 2018, pp 129–140 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 29, 2018

British Coal's Selby Complex is the newest producing mine in the United Kingdom. The reasons behind its origins, planning and design are explained. Some detail is given of equipment used, with the emphasis being placed on the unique features of its layout. The entire project has been planned and constructed over many years and the design has consequently changed, principally in response to the geology of the coalfield and improving technology. In spite of many totally unexpected difficulties, the mine, which is not yet in full production, has the highest productivity in the United Kingdom.

Jan 1, 1991

MOUNT STEWART is situated half a mile south of Leadville railway station, which is distant 240 miles by rail from Sydney via Mudgee. It forms a low ridge from which rock waste and alluvium slope gradually to the black-soil flats of the Coolaburragundy River. The Mt. Stewart mine comprises:(a) The Mt. Stewart workings in M.L. 44, parish Talbragar, Co. Bligh.(b) The Grosvenor workings in M.Ls. 44 and 45, parish Talbragar, Co. Bligh.(c) The Extended workings in M.L. 44, parish Talbragar, Co. Bligh.The workings contain 1375 ft.. of vertical shafts, 1105 ft. of underlay shafts, 800 ft. of rises and winzes, 8520 ft. of drives and crosscuts, and 18,000 ft. of stapes.The mine was first opened in 1888 as a silver-lead mine, and a waterjacketed furnace was erected during 18B2. The furnace was installed with two internally-fired tubular boilers of 35 h.p. and 25 h.p. respectively, and two Baker's rotary pressure blowers. The results of the smelting campaign indicate that, during 14 months, a total of 15,000 tons of ore were treated, yielding silver and lead. In addition to this, a quantity of matte was sold containing about 8000 oz. of silver. As a result of the treatment...

Jan 1, 1925

By Sato S, Kawaguchi T

The granulation and bed-permeability of sinter raw materials depend on interactions between the properties of various iron ores and water. The properties of individual iron ores are controlled by their particle size distribu- tion and surface characteristics, which can be described by representative particle size and wettability, respectively. Added water may be absorbed, affect granulation or lower bed permeability. These effects were experimentally studied as a function of properties of the iron ores. A mathematical model was developed in order to calculate the granulated particle size and permeability using the known blend of sinter raw materials. The calculated results were in good agreement with the observed values.

Jan 1, 1980

There are a number of mineral processing operations which produce at some point a stream of hot particulates. At today's energy prices it becomes important to recover the energy held in the hot particulates. Sometimes it is convenient to use gas, e.g. in air pre- heating, and this will be appropriate in some circumstances. There are cases where it would be very useful if energy in the hot processed particles could be exchanged to the cold feed solids. This can be achieved within appropriate limitations by countercurrent heat exchangers comprised of parallel channels which contain, alternately, fluidized solids of 'hot' and 'cold' streams respectively. A pilot- plant has been built. Some calculations relating to industrial application will be Presented.

Jan 1, 1981

By C M. Zammit, N Cook, F Reith, C L. Ciobanu, J Brugger

The role of biological agents in the gold mining industry is currently limited to the use of microorganisms in bioleaching and bioremediation. However, there is a variety of possibilities in which biotechnology could aid the mining industry in the future. In this article we discuss the potential for the development of these novel biotechnologies and the role they can play in the exploration for new gold deposits, the processing of ores and the post-mining remediation of sites. The development of these biotechnologies has been enabled by rapid advances in our molecular-level understanding of the role microorganisms play in the solubilisation, dispersion and precipitation of gold. An understanding of the distribution of microbial species in soils overlying mineralisation can be utilised to develop bioindicator systems that assist with gold exploration. An in-depth knowledge of how microorganisms interact with gold complexes is being used to develop in-field biosensors, supporting exploration. Processing technologies may be improved based on advances in our understanding of the interactions between microorganisms, ore minerals, cyanide and gold. For instance, cyanide-producing microorganisms are being investigated for use in in situ leaching of gold. In turn, the use of cyanide-utilising microorganisms for the degradation of cyanide is being explored. Combined, the implementation of these biotechnologies in the gold mining sector may revolutionise the industry, leading to greener, more efficient exploration for and extraction of gold.CITATION:Zammit, C M, Cook, N, Ciobanu, C L, Brugger, J and Reith, F, 2013. Possible future applications of biotechnologies in the gold industry - a prospective approach, in Proceedings World Gold 2013 , pp 233-244 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 26, 2013

By S Oliver, D Willingham

"Although a resource model is central to the mineral resource value estimation process (Glacken and Snowden, 2001), creating it is a labour intensive task and in the end it is a limited representation of the actual orebody. Creating this resource model is a labour intensive task that requires inputs from geology, mining, metallurgical and commercial disciplines. It requires thousands of samples from hundreds of drill holes to be verified, grouped in geological domain, interpolated and then valued. Even after all this effort, a model is only an estimation; therefore further significant effort has gone into quantifying uncertainty in the model and subsequently risk around any value estimates derived from the model. Further risks to model quality are introduced through poorly conditioned data or incorrect assumptions.This paper proposes the application of machine learning to automate the resource model development. Machine learning is applied to the traditionally manual tasks of geological formation, domain identification and validation of the block model mineralogy. Through automation the resource estimation process can be accelerated, allowing more drill holes or a larger resource body to be processed in a given time frame, or allowing the process to be more agile to changes in input data and assumptions. A case study based on drill hole data from a Western Australian iron ore deposit (Government of Western Australia, Department of Mines and Petroleum, 2015) is used to demonstrate the application of machine learning in this process.CITATION:Oliver, S and Willingham, D, 2016. Maximise Orebody Value through the Automation of Resource Model Development Using Machine Learning, in Proceedings The Third AusIMM International Geometallurgy Conference (GeoMet) 2016, pp 295–302 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 15, 2016

By A J. Weston

Block or panel caving technology is far removed from that of the top slicing and block caving of the late nineteenth or early twentieth centuries. The rapid mechanisation and expansion of these methods in the late twentieth century was as much a result of the change of the technology of the unit operations of development, ground support, drilling and blasting and transport as it was of the advances in geotechnical understanding and practice. The small footprint gravity and scraper block caving mines with boundary weakening, rail transport and shaft hoisting of the early to mid-twentieth century have been replaced by massive high lift panel caves using preconditioning of the ore, large load-haul-dump units, adjacent crushers and conveyors to surface. The technology changes in the unit operations are described and the drivers for these changes examined.CITATION:Weston, A J, 2016. The evolution of block caving technology, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 265–274 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By D J. Clark, R F. Wright, M D. Goodz

The A1 Gold Mine is a Devonian-age narrow vein high-grade gold deposit located 115 km east of Melbourne. The mine operated almost continuously from 1861 to 1992 producing 442 334 ounces of gold (13.8 t) from 530 436 tonnes from primary gold ore tonnes processed at an average recovered grade of 25.9 g/t Au. The A1 dyke was attributed with a yield exceeding 620 000 ounces (19.3 t) of gold (including gold in alluvial and tailings deposits), and was renowned as one of VictoriaÆs premier mines paying considerable dividends. The orebody was principally in a diorite dyke bulge 150 m long, 45 m wide and 700 m deep and was mined via two vertical shafts. The mine site was closed in 1992 and the site was rehabilitated in 1999. In 2008 - 2009, a diamond drilling program identified various extensions to the host dyke lithology and to gold-bearing quartz vein filled fault zones over a 700 m strike length. The outcome of this study was the establishment of a mine geology corridor four times longer in strike length than the original 1970s model. This opens A1 dyke hosted deposit style to exploration outside the historical dyke bulge and provides exploration opportunity for all similar deposits. Construction of the first 3D geological model has developed new insights on the host rock diorite dyke system and identified various extensions to both host stratigraphy and to gold-bearing mineralised structures. Coarse visible gold in quartz vein mineralisation (>30 g/t Au) and medium-grade stockwork mineralisation (8 - 15 g/t Au) has been intersected within 100 m of the surface and up to 300 m along strike of the nearest historical underground workings. At depth it appears that the mineralisation is continuous with the main dyke body with consideration of minor rotation in the strike orientation and limited reverse thrust faulting showing maximum displacement of 10 - 20 m. Along the A1 mine corridor, between two and five parallel dykes are observed at different drill sections. The gold mineralisation is hosted mainly within the dyke rocks, but where the sedimentary rocks are intensely silicified or are xenolith rafts, the gold mineralisation continues across these sedimentary rock blocks. There has been inference to the role of silicified sedimentary rocks as a second ore host and a bounding material for inflections in fault and vein orientations. In the central 150 m long A1 mine dyke bulge, the extremities are demarcated by four to five parallel dyke fingers (referred to as apophyses) going both north and south. These apophyses are clearly observed both vertically and horizontally between levels No 4 and No 9. The dyke fingers entrap sedimentary rock xenoliths and collectively form the A1 dyke æcorridorÆ, which is quite uniform in overall width from the easternmost contact (footwall) to the westernmost contact (hanging wall). Dyke fingers were assumed to coalesce at depth into a single dyke, but recent drilling shows this feature to repeat in several positions with depth and along strike. Key observations are the relationship between gold grade and fracture density, alteration, sulfidation, host rock morphology û relation of contact shape and fault zones. These relationships allow for the classification of prospectivity indicators and geology as a guide to potential extensions of mineralised zones. Mining geology is contributing to the whole-of-mine life planning and development where decline path, stockpile and infrastructure positions are controlled by geology.

Jan 1, 2009

Large GDP increases in the Pacific Rim countries have been accompanied by similarly large increases in demand for oil products. In the case of residual fuels, this demand has been tempered by the substitution of other energy products such as coal or gas.In the region's developing and newly industrialised nations, it has not been possible to make the very large investements in infrastructure which allow other energy sources to be used for transportation. As a result, GDP growth has been mirrored in the demand growth for automotive fuels. Other non-sustitutable products such as lubricants have also benefitted by the region's GDP growth.The combination of a number of years of sustained growth, coupled with increasing quality requirements is now stretching the upgrading capacity of the region's refineries. If, as seems likely, the region continues to enjoy a high GDP growth rate, then this will be accompanied by increasing reliance on finished products coming out of the Middle East. The owners of the most simple form of refinery in which crude is simply distilled and the naphtha reformed into petrol will face major capital investments. If they decide not to bear this cost, they will face increasing problems in selling their surplus residual fuel oil at an economic price. Quality will become an increasingly important issue. Not only in the well publicised areas such as unleaded petrol, but also for products such as lubricants which play a major role in the efficiency of modem equipment. Quality of service such as hours of opening, ease of access, and service station facilities will also become increasingly important as the oil companies use these to attract customers and gain brand differentiation.

Jan 1, 1990