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The value of Australia's education services exports increased to over $15 billion dollars in 2009, placing education as the third overall export earner behind coal and iron ore; however there are concerns over the impact of emerging policies on the future of both the industry and the provision of mining education. Policies have impacts on the growing number of international rankings (or league tables) of mining jurisdictions and universities. A high position in such rankings might be used as a measure of perceived quality with benefit to those at the top and to the detriment to those lower down.    Top performing companies in the relatively new domain of sustainability have been shown to achieve better financial performance than their industry competitors, assisting them in attracting top quality committed staff, hence positioning themselves well for the future. The world's mining companies, jurisdictions and universities are now ranked with results in the public domain. It is argued as to the validity of the data or perceptions used in such rankings, but there is no doubt they are influential in determining the flow of dollars around the globe. By investing your pension fund assets in the shares of the top performing companies, by placing your exploration dollars in a country at the top of such a list of attractive jurisdictions, attending or recruiting from a University at the top of the rankings - risk must surely be reduced?   While savings and risk reduction can undoubtedly result from the introduction of new technologies developed through appropriate R&D (the other core activity of a university), the maintenance of a very high level of exploration and production performance through dedicated highly skilled staff every hour of every day quietly improves financial performance, while avoiding safety, environmental and/or community incidents (ie protects the 'triple bottom line'). As always risk reduction comes down to enabling quality people to do a quality job - through the actions of such people we can sustain the global mining industry and secure our social license to operate. However, there is global concern over where the numbers of such people, including those with the recently required skills in sustainability, are going to come from.   This presentation will discuss some of the complexity and interactions involved in the development of such rankings, the dangers inherent in their simple acceptance and use, plus indicate some of the directions mining educators might take to sustain and increase the supply of quality graduates to the global mining industry. This is an ABSTRACT ONLY. No paper was prepared for this presentation.

Jun 1, 2010

The approvals process for a major cut-back is not a simple exercise when a mine is located alongside the community. Kalgoorlie Consolidated Gold Mines (KCGM) has been through an extensive process of government, JV owner and community consultation to ensure that necessary permitting processes and detailed studies have been completed to allow this six year extension to the open pit mine life to be achieved. With the Kalgoorlie Boulder community being on the doorstep of the mine, it is critical to ensure that the operation runs smoothly and complies to the license conditions to achieve the full value of the Golden Pike cut-back, and leave behind a sustainable legacy for the local community. This is an ABSTRACT ONLY no paper was prepared for this presentation.

Jun 1, 2010

OneSteel and BlueScope Steel have been working with the CSIRO to develop sustainable carbon fuels and reductants which are suitable for use in the iron and steel industry. One of the initial focuses of this work has been a process called steel recarburisation which is the addition of carbon to liquid steel to produce particular steel grades. This paper reports on the preliminary work and the recent full scale recarburisation plant trials conducted at the OneSteel Sydney Steel Mill.   Preliminary experimental work involved kilogram scale recarburisation of liquid steel with a range of commercial and prepared charcoal products. This work showed that charcoal dissolves into liquid steel very quickly and that carbon recovery to steel was inversely related to the charcoal volatile content. Initial larger scale work focused on the collection of wood, and preparation of low volatile charcoal which is required for steel recarburisation. Approximately three tonnes of charcoal was prepared at the Corrimal coke ovens of the Illawarra Coke Company. This charcoal was dried, crushed, sized and packaged in a form suitable for addition to 80 tonne liquid steel ladles.   The recarburisation trial was conducted over 30 ladle heats during June 2009. The charcoal was manually added to the liquid steel in 5 kg bags using normal plant practice. Conventional commercial recarburiser was also added to the liquid steel in alternate ladle heats. The performance of the charcoal was compared with the conventional recarburiser based on the carbon recovery to steel, hydrogen pick-up by steel and the rate of carbon dissolution into steel.   An analysis of the trial results showed that the charcoal performed at least as well as commercial recarburiser in carbon recovery and rate of dissolution but may have resulted in a slightly higher hydrogen content of steel. This is probably due to the higher moisture content of charcoal. The main challenges in the future include: increasing the charcoal density to improve transport and handling economics, securing a sustainable supply of biomass for the steel industry and developing a charcoal production industry so materials of suitable quality for both production and trials on other applications can be conducted.

Jun 1, 2010

By Gary Brieley

Until well into the 20th century, most construction work was performed under the auspices of a master builder or in a manner that would be described today as design-build. In addition, many civil engineers served as ?interns? under the tutelage of a master builder in order to learn how to design and construct a certain type of structure. This was certainly the case for tunneling projects with various individuals having been identified as tunneling experts as a result of successfully completed projects The master builder approach began to change in the early 1900s to a model that would be referred to today as design-bid-build. A design-bid-build approach to project procurement gives the owner more control over the final product and al-lows the contractor to know exactly what is expected of them before the work is constructed. As a result of this transition in project procurement, civil engineering schools placed a greater emphasis on the training of ?design? professionals. This article will document how the training of tunnel design professionals progressed within the United States. Although it is difficult to generalize about the hundreds of tunnels that were constructed in the first four decades of the 20th century, there is one project that stands out as having resulted in a university program related directly to tunneling and that is the Chicago Subway. During a visit to the United States in 1938, Dr. Karl Terzaghi met a student named Ralph Peck who was then studying at Harvard University in a pro-gram established by Arthur Casagrande. Shortly thereafter, Terzaghi traveled to Chicago for a lecture and was asked to consult on the Chicago subway project that was then under construction. The Chicago subway was being constructed in clay, and the owners were worried about possible settlements to nearby buildings. Terzaghi asked Peck to serve as his field engineer for that project. Thus was established one of the most productive relationships in the history of civil engineering in the United States. Peck, who would become Dr. Peck, moved to Chicago in 1939 to participate in an extensive research project that con-tinued until subway construction was halted in 1941 because of World War II. During that time, the cost of subway construction in Chicago was reduced substantially as a result of Peck?s observations and Terzaghi?s recommendations. In fact, it was reported that subway construction in Chicago cost less than one-half of similar projects in London even though the clay in London is considerably stiffer compared to Chicago. Upon the completion of his work on the Chicago Subway, Peck accepted a professorship with the University of Illinois in Champaign/Urbana.

Jun 1, 2010

Landscape interpretation, geology and mining history is being successfully used to explore options for sustainable community tourism product development. Recent work by the author in Europe and Australia has indicated the value of adding and producing interpretive information about mine and quarry locations - both active and inactive. This work has allowed for the branding and development of new sustainable community tourism products based on the landscape, folklore, mine and geological heritage.   Communities in rural areas are seeking new opportunities to sustain their local economies. Using a relatively new phenomenon called geotourism as a starting point; they have developed themed products connected to walking/cycling guides, interpretive panels and visitor centres. These themes can be linked to geology, archaeology, botany, local history and to industrial heritage sites such as old mines, to generate local employment. This new geotourism approach has successfully brought a new and greater audience to discover the value of geology and mining history.   Communities have established a unique place for themselves within the tourism marketplace using the geotourism brand. Other communities with an established tourism product are also now using geological and mine heritage via geotourism to rebrand and meet changing global trends. The pooling of resources under the banner of geotourism has led to cost effective marketing, targeting and promotion of products.   Geotourism has emerged strongly in Europe, North America and China in the last decade. The Australian minerals industry now has an opportunity to implement this new branding concept to assist and benefit the communities in which they run their activities. Communities can also take advantage of the potential to develop a sustainable geotourism business around a past or present mineral industry in their vicinity.

Jun 1, 2010

If the industry keeps doing what it has always done, it will continue to get what it has always got - rising operating costs. Why is this so? Generally grades being chased are becoming lower, stripping ratios becoming higher, ability to attract personnel to the industry becoming harder and/or more expensive, higher safety standards are being demanded and environmental governance is being enforced.   How then should the surface mining industry plan for the future whilst delivering on improved safety and the environment? In-pit crushing and conveying (IPCC) points the way, as a partial or complete substitute for trucks.   IPCC systems promise significant advantages over traditional truck and shovel operations, including improved safety, reduced operating costs, reduced dust and noise emissions, far greater efficiency in energy use (electric versus diesel motors predominantly and the ability to regenerate electricity back into the local grid for downhill situations), reduced carbon emissions (dependent on power generation source) and reduced water consumption. Despite these advantages, there is a general industry reluctance to migrate from truck and shovel operations. This reluctance stems from a familiarity with truck and shovel operations and a perceived concern that IPCC lacks flexibility which will negatively impact on the mining operation.   In studies conducted since 2007 (with the new modular builds) comparing IPCC with truck-optimised pit designs, IPCC has delivered up to USD$0.82 per tonne moved less than an equivalent truck operation. In addition, IPCC is easily automated from a central control room (local or remote) - something that trucks have yet to commercially achieve.   IPCC is a proven process that, with a fresh mindset, can make a significant improvement to mining operations - its safety, the impact on the environment and its costs. It maybe of interest to note that there is over 200 IPCC installations worldwide today.   This paper and presentation will assist in furthering the understanding of IPCC and its applicability.

Jun 1, 2010

How do you initiate closure planning for a mine site that is on the doorstep of a major community without generating the extremes of panic or complacency? That is the question that is faced by Australia's largest gold mine, the Kalgoorlie Consolidated Gold Mines (KCGM) Super Pit in Kalgoorlie-Boulder. KCGM's Community Relations Manager, Danielle van Kampen, will reveal the lengthy closure planning process that is in train to alert yet not alarm the community about the future of the Super Pit and to generate discussion on issues of importance. What will happen to the 'big hole' that generates both mining and tourism dollars for the City of Kalgoorlie-Boulder as its anticipated closure date of 2021 comes closer? How do you communicate a constantly evolving closure date? Although the process may generate more questions than answers, the project will be discussed at length and with the added benefit of independent community recent research in the form of the public 2009 Closure Consultation and the KCGM 2010 Social Impact Assessment. This is an ABSTRACT ONLY no paper was prepared for this presentation.

Jun 1, 2010

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

Jun 1, 2010

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

Jun 1, 2010

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

Jun 1, 2010

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

Jun 1, 2010

By Colin Lawrence

The Port of New York and New Jersey is one of the most heavily used transportation arteries in the world, handling nearly 40 per-cent of the North Atlantic shipping trade and directly providing nearly 230,000 jobs to the local economy. In 2004, $100 billion worth of consumer goods moved through the port. To accommodate future cargo volumes in the port, which are expected to double over the next decade and possibly quadruple in 40 years, deeper shipping channels are needed to provide access for a new generation of cargo mega-ships with drafts exceeding 13.7-m (45-ft) when loaded. Current channels within the harbor range in depths up to 13.7-m (45-ft), thus preventing carriers from using these larger ships, or requiring significant reductions in cargo to achieve lesser drafts to operate safely within the harbor. As part of the Harbor Deepening Project, the Anchor-age Channel would be deepened to 15.2 m (50 ft) below mean low water (MLW), for a length of 5,790 m (19,000 ft). The New York City Department of Environmental Protection (NYCDEP) owns, operates and maintains two existing water siphons in the harbor. Due to their shallow depth, both existing siphons must be relocated before dredging of the Anchorage Channel can be completed. Tom Costanzo, manager of capital programs for the Port Authority of New York and New Jersey (PANYNJ), says that ?While the re-location of the existing siphons under the Anchorage Channel is vital to the success of the deepening program, it is also a story of cooperation among key agencies at different levels of government resulting in improvements that will benefit the people of this region greatly.?

Jun 1, 2010

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

Jun 1, 2010

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

Jun 1, 2010

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

Jun 1, 2010

With the next mining boom looming, the industry will once again struggle to meet skills needed as the current generation boomers are set to retire. In order to meet these needs it is going to need to focus on what underutilised human resources - in particular women - want!   Women comprise around 14 per cent of the mining workforce, compared with a 45 per cent participation rate in the work force overall. Within the industry, women still make up only one per cent of trades people, eight per cent of operators/production employees, 12 per cent of engineers and 11 per cent of executive management.   It may be worth pointing out that mining has an age profile skewed towards the older end of the spectrum. When it comes to employee retention, what women want may be a good starting point to examine, more broadly, what all employees might want (but are too afraid to ask!).   Women in mining want the following: To be scrutinised for their work and performance, not their personal lives, appearance or relationships. True pay equity. This is addressed at lower levels between companies but at professional levels the salary differentials begin to appear and little is done to identify why this continues to be the case. Recognition and acceptance that women can have different work-styles, and that diversity of work-styles is an asset to be nurtured not a threat to be neutralised! Recognition that a more diverse workforce demographic that better reflects society at large will assist the company in its dealings with many diverse stakeholders from society at large. For employers to recognise that a career break to accommodate caring responsibilities does not mean that an employee's commitment to progressing their career is any less than that of someone who has not taken a career break. Similarly, for employers to recognise that working part-time for to accommodate caring responsibilities does not mean that an employee's commitment to progressing their career is any less than someone who works a more traditional roster. Access to affordable and quality child care compatible with mining rosters in mining towns. Zero tolerance for bullying and harassment, and workplace cultures that promote respect and safety. This is an ABSTRACT ONLY no paper was prepared for this presentation.

Jun 1, 2010

By Michael E. Karmis

New and developing communication systems en-able underground miners to, not only connect to the surface from an increased communication coverage area, but also to be discovered in the event of an emergency. Communication and tracking systems are required by the U.S. Mine Safety and Health Ad-ministration (MSHA) regulations, aiming to enhance health and safety and routine production in underground operations. Modeling a mine?s potential communication coverage area will increase overall coverage and efficiency of the communication network itself. Modeling the propagation of wireless communications enables ideal broadcast locations to be found when designing a communications network. Strategic placement of broad-cast devices results in a reliable communication network that can better withstand disruption in daily operation and during a time of emergencies. Research on wireless communication in mines has been ongoing since 1922, when the U.S. Bureau of Mines performed experiments in its experimental mine in Bruceton, PA (Schiffbauer & Brune, 2006a). Ac cording to Dobroski and Stolarczyk (1982), ?as early as 1922, Bureau of Mines experiments showed that radio propagation in mines was possible but not practical.? In 2006, the underground communication technologies available to the mining industry had inherent problems that limited communication capabilities. Because harsh underground mine environments significantly reduce line of sight and propagation range and introduce power and safety concerns, the overall effectiveness of underground communication technologies were limited. After several coal mining accidents in early 2006, the U.S. Congress responded with the Mine Improvement and New Emergency Response (MINER) Act, enacted

Jun 1, 2010

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

Jun 1, 2010

By F. Freme

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

Jun 1, 2010

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

Jun 1, 2010