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Newmont Waihi Operations is participating in the initiation of a community liaison forum in association with the local district council. The objective is to provide a forum for the free and regular exchange of ideas, concerns and information, and through improved communication seek to achieve a more comprehensive set of solutions to community, operating and closure issues associated with Martha Mine. A similar liaison forum has been operated on two previous occasions during earlier phases of the present mine's operation. This paper deals with the practical aspects of setting up a liaison forum to act as an effective conduit between regulators, mine operators, local businesses and the community. The mechanisms and procedures for identifying community issues and concerns are dealt with. The actions and structures required to ensure effective ongoing community 'buy in' at all levels are discussed. Corporate philosophies are addressed. Specific examples from Martha Mine, Waihi New Zealand will be used to illustrate the paper. This will include a brief explanation of previous and current community issues, Newmont Waihi's operations both at Martha Mine and the proposed Favona underground mine, and the practical issues involved in setting up a liaison forum.

Jan 1, 2003

By D Craw

The Rise and Shine Shear Zone is a mineralised low angle deformation zone traceable for at least 7 km through biotite zone schist of the Dunstan Range, central Otago. Rocks from the shear zone obtained from recent drillholes are unweathered and facilitate paragenetic studies. There is a progression of mineral deposition from semiductile foliation-parallel shearing, to subsequent folding, and brittle fracturing. Sheared rocks are dominated by microshears containing fine grained hydrothermal muscovite and rutile that has recrystallised from metamorphic muscovite and titanite respectively. Euhedral pyrite occurs within segregations in the schist and is locally brecciated by the shears.   Arsenopyrite occurs within microshears and is intergrown with hyrothermal muscovite. Fractures within relatively undeformed schist are filled with ankerite, siderite, chalcopyrite, sphalerite and galena and these veinlets also crosscut the microshears. Locally the schist is folded and zones of brecciation, silicification and vein deposition overprint the rock. Vein quartz and albite predominate and arsenopyrite and gold infill breccia matrix and crosscutting veinlets. Sulphide deposition began in the later stages of metamorphism with pyrite deposited in quartz-albite segregations. Subsequent shearing caused brecciation of some grains and accompanied deposition of arsenopyrite ¦ gold and rare sulphides along foliation-parallel microshears. Minor amounts of chalcopyrite, sphalerite and galena were then remobilised in ankerite veins that crosscut the shears. In areas of high strain, arsenopyrite was then deposited as euhedral grains in veins and breccias. Synmineralisation deformation caused the brecciation of some grains and gold was deposited infilling fractures in the arsenopyrite. The paragenetic sequence shows gold mineralisation occurred in two distinct sets of structures (semiductile and brittle) that formed at different times in the formation of the shear zone.

Jan 1, 2006

By F F. Pitard

The optimization of metallurgical processes requires knowledge of the heterogeneity carried by constituents of interest. The common scenario, almost an industry standard, is to rely on the engineering firm who in turn relies on favorite manufacturers of sampling equipment to provide the appropriate sampling systems in the plant to perform accurate metallurgical accounting. This sequence is flawed from the beginning to the end because everything should be based on a careful understanding of the Theory of Sampling (TOS) by the company project team and their expert who invariably would suggest various approaches and different sampling systems.The necessary progressive and iterative approach should be that the company’s project team (mining or other industries) would do its home work to have a good understanding of the geometallurgy, mineralogy and texture of the ore in each geological unit so consultants and engineers would have the best information to start with. Then a reputable sampling expert would recommend which sampling systems are needed, so the company would require engineering firms to follow pre-established, non-negotiable requirements, and finally select the sampling equipment existing on the market today that is most likely to lead to accurate and precise enough metallurgical accounting.It is the author’s experience that when this necessary progressive and iterative approach is bypassed, sampling systems installed in the plant are likely to transgress the most elementary rules of sampling correctness. Invariably the argument is that the company cannot afford correct sampling systems for metallurgical accounting as suggested in the Theory of Sampling. There is nothing that is farther from the truth when later problems will develop and inevitable reconciliation difficulties with miners and geologists become daily routine with impossible answers; as a last resource the sampling expert may be called to perform a post-mortem analysis.The progressive and iterative approach suggested in this paper should be a due diligence requirement for any bank providing a loan for an important new mining project; anything less is most likely to generate unpleasant financial losses; historical, well-known examples are referred to.CITATION:Pitard, F F, 2015. A progressive, iterative approach leading to reliable metallurgical accounting sampling systems, in Proceedings MetPlant 2015, pp 78–91 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 7, 2015

By D Craw, C E. Martin, C Smith, C Rufaut

Wangaloa Coal Mine opened in 1945, and by the time of its closure in 1989, had produced 750 000 tonnes of coal and disturbed an area of 75 ha. The original mining licence required land rehabilitation to exotic forestry, however the current owner, Solid Energy, has worked with Crown Minerals and local councils to write a new rehabilitation objective. The site is now being stabilised and replanted with native species, and may be available for public use before the coal mining licence expires in 2007. Site discharge permits expire in 2017, and by that time, it is anticipated that discharge water chemistry will be similar to background levels. MWH are currently contracted for management of the mine rehabilitation project. The Kaitangata coal unit mined at Wangaloa is sulfurous lignite with associated pyrite. Kaitangata coal contains 3.2 wt per cent sulfur, which is higher than most New Zealand coals. Initial analyses at Wangaloa indicate low pH (2.56.2) values in soil, groundwater and surface waters as a result of acid rock drainage (ARD) processes, leading to increased metal mobility and challenging conditions for vegetation. Pilot studies indicate pinus radiata needles contain up to 67 mg/kg boron, and elevated As, Cu and Zn concentrations in surface waters. The main lake at the site has a pH of approximately 4.9, despite lime dosage in 2002. There is a real need for a complete geochemical model of the Wangaloa coal mine. Such a model could be applied to similar restoration projects, and would assist by pinpointing geochemical processes and toxic metal relationships most harmful to the receiving environments. Using this model, rehabilitation in the future will be targeted and more efficient. This project is part of a larger scheme to characterise and model the Wangaloa mine site restoration, including waters, soil, vegetation, geology and invertebrates.

Jan 1, 2003

Gold rooms represent a high security area and preventing theft is a challenging task. Where gravity concentrates or high value unit intermediate products are present, particular and specific security procedures must be put in place. This paper describes the development and implementation which reflects best practice in gold room security. Procedures involving key holder systems, key locks, swipe cards and double locks preventing any one person having access to the gold room, including specific procedures for gravity gold concentrators, will be addressed. The use of monitoring and how to deal with alarms and potential hold ups will be reviewed. The use of cameras and archival DVD recorders is common in gold rooms. The use of electronic surveillance, movement detectors, seismic monitors and the two person policy and gold room entry procedures are described, including how to deal with visitors. The importance of confidentiality regarding smelting and gold pick-up days, plus strategies employed to minimise storing large quantities of gold on site will be presented. The role of metallurgical accounting in providing quality auditable information and the minimum standards of record keeping required is discussed. The role of the Gold Squad will be outlined. Regular auditing and risk analysis and several case studies are cited where security was deficient or improved.

Aug 1, 2010

By A Liu, T Ren

Gas explosion in underground coal workings can pose a serious threat to the safety of mine workers and the entire mine operations. Gas explosion is a very complex thermal-chain reaction in a confined underground environment. Based on combustion and explosion theory, three dimensional (3D) computational models were developed to simulate mine gas explosion flame and overpressure wave propagation in a single entry gateroad in underground coalmines. Six different explosion scenarios were modelled and compared with large scale experimental results and AutoReaGas simulations. Model validations show that the use of shear-stress transport (SST) k-? model together with eddy-dissipation model (EDM) produces good agreement with both experimental and AutoReagas simulation results. Modelling results demonstrated that the changes of temperature versus time can be divided into four stages, ie the initial condition stage, and periods of warm-up, active burning, and burnt-out. Assuming a limited volume of methane is involved in the explosion, the maximum temperature decreases as the distance increases from the explosion point, with the highest temperature reaching about 2460 K. Modelling results show that the evolution of the explosion flame shape experiences four typical stages, ie spherical flame, finger-shape flame, flame with the skirt touching the side walls (ribs) and tulip flame, which are similar to the pattern of a duct explosion. The pressure in the gateroad remains the same as the initial value before the arrival of the explosion wave and then increases rapidly to the maximum value. Modelling results from this study will be used for the design of explosion arresting devices and mine seals in underground coalmines.CITATION:Liu, A and Ren, T, 2017. Computational simulation of gas explosion and its propagation in single entry gateroad, in Proceedings Australian Mine Vent Conference 2017, pp 181–188 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 28, 2017

By S C. Dominy

The gravity recoverable gold (GRG) parameter reflects liberated gold or gold-dominated composite particles that can be recovered by gravity separation. Recoveries depend upon mineralogy, in situ particle size and the comminution and extraction method used. Any ore bearing >15 per cent of gold greater than 50 ¦m in size is likely to have a GRG component. The principal characterisation methodology applied is the three-stage GRG (3GRG) test, based on a 40 kg to 100 kg sample. An alternative is the single-stage GRG test (SGRG), which is generally based on a 20 kg sample. Experience has shown that GRG values can vary throughout an orebody, particularly within different grade and/or mineralogical domains. Test programs must consider sample frequency and mass. This study demonstrates the variability of GRG results based on different sample masses. Consecutive underground faces on a coarse-gold dominated quartz vein were sampled taking five different masses from each. Each sample was processed using a SGRG approach. Subsequently, each development round was batched through a small gravity production plant. The results show that the small samples understate the plant GRG and show inter-sample variability. Large samples show less variability and a SGRG closer to the plant GRG. A high SGRG broadly correlates to higher gold grades, more coarse gold and larger gold particles. These results are intuitively correct, but indicate the likely challenges of sampling for gold recovery in heterogeneous systems.CITATION:Dominy, S C, 2013. Variability of gravity recoverable gold values in relation to test sample size, in Proceedings The Second AusIMM International Geometallurgy Conference (GeoMet) 2013 , pp 293-302 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 29, 2013

By D Craw, P Lindsay, B Peake

The geochemical properties of Kaiata Mudstone and Brunner Coal Measures are evaluated in order to determine their suitability for placement at the proposed Cypress and existing Stockton mines. Correct scheduling of this waste material is needed in order to prevent sulfide oxidation and the generation of acid rock drainage. The Kaiata Mudstone has both acid generating and acid neutralizing properties. Results from this study and previous research from Kingett Mitchell Ltd (2003), indicate that within the Kaiata Mudstone sulphur content decreases with distance away from the Brunner Coal Measure/Kaiata Mudstone contact, while calcium carbonate content increases; sulphur values range from 0.33 to 4.23 wt %; and the acid neutralizing capacity ranges from 0 to 10.4 wt %. The Brunner Coal Measures have a low capacity to neutralize acid and sulphur content is variable ranging from 0.25 to 3.5 wt %. Appropriate control measures are therefore needed for the Brunner Coal Measures and any Kaiata Mudstone within close proximity to its contact. Tests have been undertaken to develop a rapid field or laboratory procedure to define the potentially acid-forming from the non-acid-forming Kaiata material. Results indicate that paste pH, Net Acid Generation (NAG) and Carbonate Bomb tests are suitable. Results from the Carbonate Bomb Test show a strong relationship with the Acid Neutralizing Capacity (ANC) and the Net Acid Production Potential (NAPP), indicating that this method may efficiently determine non-acid forming material in the field within fifteen minutes. Ongoing research includes kinetic column and shake extraction tests. These tests will quantify what trace elements could be leached from the waste rock and provide information on the usefulness of alkaline producing products such as Bauxsol, Limestone and Cement Kiln Dust.

Jan 1, 2004

Recovery Efficiency Study on Ilesha Placer Gold Ore by Flotation Using Locally-Sourced Frothers and Collectors

Sep 13, 2010

The overwhelming weight of scientific opinion indicates that human activity is having a discernible and negative influence on the earthÆs climate system. The Australian Government, together with about 100 other nations, has accepted the findings of the Intergovernmental Panel on Climate Change third assessment report, released in 2001. This report was prepared by several hundred eminent scientists from all over the world, from various scientific disciplines and with differing opinions on global warming. The IPCC third assessment report contains a series of relevant, significant conclusions; for example, it finds that there is an increasing body of observations that gives a collective picture of a warming world and other changes in the climate system. Global average surface temperature increased over the past 100 years by about 0.6¦C. This may not seem much, but in the 900 years beforehand, the EarthÆs temperature remained relatively stable. The 20th century was the warmest of the past 1000 years in the northern hemisphere (there is much better information available from the northern hemisphere than the southern hemisphere). The 1990s were the warmest decade of the millennium in the northern hemisphere and 1998 was the warmest year. Although many factors influenced the EarthÆs climate, scientists are confident that greenhouse gas increases were the main factor contributing to global warming in the last 50 years of the 20th century. Increases in carbon dioxide, methane, troposhperic (lower atmosphere) ozone, halocarbons and nitrous oxide have all contributed to global warming. Combating climate change cannot be done without the cooperation of industry and the community at large. It is important that Government and industry work together to achieve greenhouse gas abatement while ensuring continued economic growth. The cause of the problem û the generation of greenhouse gas emissions û lies at the heart of the structure and size of modern economic activity. Greenhouse gas emissions are embedded in our way of life from our energy consumption patterns to the basic production of food. Moreover, the costs of the impacts of climate change to the earth will be potentially revolutionary, not merely evolutionary. It is in this light, acknowledging both the seriousness and nature of the problem before us that I want to reflect on the key drivers in the international climate change negotiations. A consideration of the past, present and future from what I see as the mid-way point in the process. In 1997, Parties agreed to adopt the Kyoto Protocol, which sets out mandatory targets for greenhouse gas emissions for developed countries.

Jan 1, 2002

By N Elith

Coal is a valuable energy source in New Zealand and has been mined from the West Coast for over 100 years. Stockton Mine is New Zealand's largest opencast coal producer supplying around 1.5 Mt of hard coking and thermal coal to international markets annually. The Stockton Plateau forms an extensive, gently inclined dip slope on erosion resistant Lower Eocene Brunner Coal Measures unconformably overlying basement rocks. The dip slope rises 600 - 1000 masl, locally dissected by fault scarps and present-day fluvial systems, some of which are deeply incised. Within the Mt Augustus Mining Block overburden comprises of a 30 - 40 m thick sequence of fluviatile, coarse to granular coal measure sandstones. High quality coking coal is preserved as a gently dipping, 10 - 12 m thick seam. High and sometimes very steep cliffs of jointed overburden shape the skyline escarpment, above steep forested slopes and gullies. As mining has progressed at Mt Augustus individual coal blocks are progressively becoming more technically challenging. This paper outlines the scientific approach taken by Solid Energy International and mining contractors to carefully unlock many thousands of tons of coal whilst protecting nearby flora and fauna from the impacts of dislodged rock and other blasting side-effects. The strategy involved: an expert-driven onsite risk assessment,formulation of a management plan to manage impacts,conducting an in situ vibration research program, andanalysis of results and operational designs to eliminate potential environmental problems.

Jan 1, 2003

By D J. Corp

The Halmahera Contract of Work is a sixth generation contract held 82.5 per cent by Newcrest Mining Limited and 17.5 per cent by PT Aneka Tambang and takes in the Gosowong Project area. In 1991 Newcrest Mining Limited established a small exploration office in Jakarta and proceeded to seek exploration opportunities. The Halmahera area was identified as a substantial prospective ground position in a relatively unexplored area. In late-1991 Newcrest Mining Limited and PT Aneka Tambang agreed to explore in Halmahera. Initial field work commenced in July 1992. A vigorous ground reconnaissance programme led to the discovery of the Gosowong deposit a little over 12 months later in September 1993. In April 1997 the Contract of Work was approved covering much of the island of Halmahera. Between September 1997 and November 1998 activities were directed principally towards obtaining the necessary permits required to commence construction activities. Some particularly ambitious targets were set for achieving this outcome. An aggressive construction programme commenced in late-1998. Construction took place during a period of unseasonally high rainfall, which in itself presented additional challenges to the construction team. A key milestone for the project was achieved on 1 July 1999 when wet commissioning of the process plant commenced. Construction of the Gosowong Mine was achieved on time and within budget. A period of some six years elapsed from the initial discovery of the Gosowong deposit to the time of the first gold pour. Much of the permitting, construction and commissioning activity took place between September 1997 and July 1999. This coincided with a period of significant social, economic and political upheaval in Indonesia. During the construction period a high level of importance was placed on the structured recruitment and training of local people, as well as fostering appropriate community and local business development programmes in the communities nearby the project. Emphasis was also placed on environmental management with detailed long-term planning and progressive rehabilitation commencing during the construction phase. The permitting and subsequent development of the Gosowong Project has demonstrated that even during the difficult times, with commitment, it is possible for mining and exploration companies to conduct business in Indonesia.

Jan 1, 1999

By N J. Welham

This paper reports on an innovative professional development program for school science teachers run collaboratively between the Centre for Sustainable Resource Processing and Murdoch University. Ultimately the initiative aims at increasing the pool of school students with strong science and mathematics backgrounds while highlighting the challenging careers available in the mineral resource sector including the gold industry. The program is unique in that it seeks to develop a network of science teachers who may participate in a series of workshops, short courses and tours over several years. The objective is to raise secondary school studentsÆ awareness of potential careers within the minerals sector by exposing teachers to a real life, hands-on look into the mining and minerals resource industry. Though the program includes the breadth of the resource processing sector, the potential value to gold processing is in developing a greater pool of potential employees. The initiative allows teachers to develop a better insight into the practical applications of the theoretical sciences they are required to teach. The evolution of the program from the first trials with Western Australian teachers to the introduction of the initiative to Queensland teachers are reported on. Additionally, the results of a pilot study involving 40 participating teachers are described. This study used a questionnaire and follow-up interviews to gain quantitative and qualitative feedback from teachers. There is evidence that the professional development program has resulted in teachers acquiring a new found appreciation for the application of the fundamental chemistry and physics they teach within the school curriculum. Also reported are associations between teacher participation in this professional development program and changing attitudes towards the industry in a positive way. Finally, there is some indication that these positive teacher attitudes may result in their students developing a better understanding of the diversity and availability of career paths within this industry.

Jan 1, 2007

A paper presenting an overview of legislative and best practice approaches to the management of OHS&E and business risk for Australian tunnelling operations. Best practice can be achieved in Australian tunnelling through ærisk awarenessÆ by decision-makers and line personnel. This will identify problems before they occur and lead to implementing controls appropriate to avoiding loss throughout the life cycle of the underground opening. The author draws on legislative approaches from all Australian states together with practical experience from risk management and risk engineering work from six recent tunnelling projects. This describes a process that:commences with concept risk assessment,involves quantification of major hazards,conducts assessments of operating risks, andleads to implementation of an integrated management system that keeps construction activities connected with the controls identified in the design and planning phases and minimises the losses sustained as a result. Key points addressed include:where the industry is going with respect to risk û methods and considerations,how tunnelling risks are perceived by the industry and legislation,how tunnel constructors and owners can minimise exposure by using proper risk engineering ætoolsÆ, andreflections on best practice methods for transferring knowledge from designers to contractors/operators.

Jan 1, 2008

By C E. J de Ronde, J L. Mauk

Sulfide chimney samples collected during the 1998 - 1999 R/V Atlantis û DSV Alvin 3 - 30 research cruise have been examined and classified into four types, based on common characteristics. Chimney morphology is the most important characteristic and resulted in the following groups: 1. flutes, 2. cones, 3. wide-flats, and 4. beehives. Other characteristics resulted in the classification of subgroups within the flute, cone and wide-flat groups. The combination of characteristics, including; the presence of an orifice, internal chimney fabrics, wall thickness, extent of weathering, and the presence of Alvinella worm casts, enable evolutionary trends between the different chimneys types to be established. These trends indicate that with time, flutes evolve from immature zoned chimneys with a central orifice and smooth thin-walls, into cone chimneys with thick walls and massive fabrics which have their orifices infilled by massive sulfides, and a rough exterior. Repeated mineralisation within, cones may result in the formation of wide-flat chimneys. Beehive chimneys can form at any time during chimney growth.

Jan 1, 2003

Martha Mine is an open pit gold-silver mine, located within the township of Waihi, 150km southeast of Auckland and is operated as a joint venture between Normandy Mining Ltd. 67 %) as Manager and Otter Gold Mines Ltd. (33%). The deposit was historically mined, by underground methods from 1888 to 1952, producing 5.5 moz of gold and 30 moz of silver, from 11 mt of ore. The current operation began in 1988, producing, to June 1999 - 867,245 oz of gold and 5.5 moz of silver from 9.5 mt of ore. The licensed reserves were due to be mined out by late 2000. Consents were granted in December 1998 to allow the expansion of the operation through to 2007 accessing an additional 7.5 mt of ore at 3.4 gpt Au and 26.0 gpt Ag for 800,000 oz of gold and 6.4 moz of silver. The key elements of the expansion are: 1. Pit enlargement 2. Upgraded crushing and material handling facilities 3. Construction of a second tailings storage facility 4. Upgraded water treatment capacity 5. Increased operating capacity This paper presents an update of expansion activities to date.

Jan 1, 1999

By B Powell

Coastal acid sulfate soils (ASS) are wetland soils and unconsolidated sediments that contain iron sulfides which, when exposed to atmospheric oxygen in the presence of water, form sulfuric acid. ASS form in protected low energy environments such as barrier estuaries and coastal lakes and commonly occur in low lying coastal lands as Holocene marine muds and sands. When disturbed, the iron sulfides in these soils can oxidise and produce large volumes of sulfuric acid (essentially similar chemistry to acid rock drainage with mines) resulting in the subsequent release of toxic levels of iron, aluminium, manganese and possibly heavy metals. This results in detrimental effects on aquatic biota, plants, animals and steel/concrete structures and on human health in the surrounding environment. There are an estimated 2.3 million ha of ASS located along 6500 km of the Queensland coastline. In contrast to many mineral sulfides encountered in the mining industry, the pyrite crystals in ASS can be as small as 2 mm and commonly occur as framboids with extremely large surface area per unit mass, substantially increasing their reactivity if exposed to air (oxidation). Highly reactive iron monosulfides can also occur, particularly in drains and shallow lakes. Many coastal areas, where some 80 per cent of the population of Queensland reside, are coming under pressure for agricultural and urban development. Construction of canal estates, marinas, housing/industrial estates, roads, golf courses, aquaculture ponds, sand/gravel extraction and drainage for sugar cane can disturb ASS and release sulfuric acid, which may then drain into adjacent waterways with heavy rain. As development continues to encroach on coastal lowlands, the identification, quantification and management of ASS must be addressed as part of a commitment to the principles of Ecologically Sustainable Development (ESD). ASS can be successfully managed by adopting best practices and following guidelines, but government, community and industry must collaborate to raise awareness, avoid æhot spotsÆ and develop more cost-effective solutions. Scientists led the education and public awareness program showing infrastructure and environmental damages arising from ASS in Queensland. Using results from mapping and research, they convinced policy makers, industry and polititians to accept the need for legislation founded on good science. The resulting æState Planning Policy 2/02: Planning and Managing Development Involving Acid Sulfate SoilsÆ identifies the StateÆs interest in acid sulfate soils. The Queensland Government considers that development involving acid sulfate soils in low-lying coastal areas should be planned and managed to avoid potential adverse effects on the natural and built environment (including infrastructure) and human health. SPP 2/02 states where the policy applies and when a development application will trigger the policy. It can also be used to assist local governments in preparing their planning schemes under the æIntegrated Planning Act 1997Æ. The SPP 2/02 comes with a æState Planning Policy 2/02 GuidelineÆ to provide advice and technical information on interpreting and implementing the SPP 2/02. This guideline has legal status in assisting in the interpretation of SPP 2/02. Those seeking more detailed technical information can now also access the æSoil Management GuidelinesÆ and ASS æSampling GuidelineÆ, available from the Department of Natural Resources and Mines website. These are some of a series of chapters being developed for the æQueensland Acid Sulfate Soil Technical ManualÆ.

Jan 1, 2003

By A Litwinowicz, M Laxman, A Fourie, A L. Li

This paper presents a design approach and analytical methods that were used for assessing the potential of static liquefaction and developing the mitigation measures for a tailings dams. The rigour of the design and analysis approach represented leading practise in the industry to address static liquefaction, which contributed to a robust design with high confidence and certainty. The salient features of our approach to static liquefaction included geotechnical investigation and tailings characterisation, static liquefaction screening assessment, static liquefaction triggering analysis, limit equilibrium analyses and numerical modelling of static liquefaction using the NorSand model, which was amongst the first tailings dam projects involving numerical modelling of static liquefaction using these methods.

Jul 1, 2021

By M J. Bourassa

In addition to the geologic risk of a particular project, the criteria that an international exploration company (æIECÆ) utilises when making an investment decision in a particular country should also include a critical analysis of the political, judicial and fiscal regime of the host country. A key investment criteria of an IEC is mineral tenure and the security and continuity of that mineral tenure under the host countryÆs existing legal system as well as the host countryÆs overall legal, political and fiscal framework, the latter of which can affect the projectÆs overall economic viability in a number of ways. The authors, Steve Vaughan and Michael Bourassa of Aird & Berlis, Toronto, Canada, have taken the position that developing an understanding of a countryÆs legal tradition is a crucial first step in analysing the mineral regulatory regime of a particular country. This paper continues their efforts to overview the most recent legal trends affecting the worldÆs mineral industry and attempts to analyse, categorise, compare and contrast differing legal systems, cultural backgrounds and economic philosophies relating to the development of mineral rights in Pacrim countries and the resulting commercial, legal, and political framework which ultimately drives the relevant mineral legislation. For the convenience of organisation of this analysis, the authors have divided the Pacrim countries into four smaller groups, firstly, on the basis of their legal tradition and, secondly, by their geographic location:Common Law Countries: USA, Canada, Australia and New Zealand; Spanish Civil Code Countries: Mexico, Central America (Panama, Nicaragua, El Salvador, Guatemala), South America (Chile, Peru, Ecuador, Colombia). Communist or Former Communist Countries: Mongolia, China, Russia. Countries of the Pacific Southwest: Phillippines, Indonesia, Malaysia, Indo-China (Vietnam, Laos, Cambodia, Thailand), Papua New Guinea. The discussion starts with an analysis of the various types of legal regimes, attempts to classify or categorise them, reiterates the necessity for the rule of law and those factors which encourage mineral exploration and development and discusses and recommends the expansion of a practical country competitiveness rating system developed by the Fraser Institute. In addition to the fundamental issue of mineral tenure û what it is and how secure it is û the paper discusses how different legal systems have shaped different approaches taken by individual nations to attract foreign mineral investment. The paper analyses the best practices and experiences accumulated in different Pacrim countries with varying legal traditions and identifies a practical country competitiveness rating system which the authors believe should be expanded to cover all minerally endowed countries. This rating system will permit countries to identify their mineral regime weaknesses and adjust their legal systems to better attract mineral investment and will also permit exploration and mining companies to compare their jurisdictional choices with those selected by their competitors.

Jan 1, 1999

INAP was formed in 1998 by a number of major mining companies, with a view to sharing acid rock drainage knowledge and experience, and to coordinate global research on the management of sulfidic mine wastes. INAP is now moving to further strengthen its global role by networking with regional organisations that are active in the area of ARD, including MEND 3/NEDEM 3 in Canada, the ADTI in the USA and ACMER in Australia. The INAP-Regional Organisation partnership will be formally launched at the 6th ICARD.

Jan 1, 2003