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By A Atkins

Six recent case studies were selected based on the eight main causes of mine disasters (Table 1; Quinlan, 2014) and where credible information sources, such as Royal Commission Reports, Coronial Investigations and textbooks, were available. The six case studies are listed below. Details are available via this link or the conference PowerPoint accompanying this paper. 1. Beaconsfield, Tasmania – 2006 Fall of Ground/Seismic Event (Chandler, 2009; Melick, 2007; Wright, 2012). 2. Bingham Canyon, USA – 2013 Manefay Slide (Ross, 2017). 3. Bronzewing, WA – 2000 Hydraulic Fill Inrush (Hope, 2002). 4. Brumadinho and Samarco, Brazil – 2015 and 2019 Tailings Storage Facility (TSF) failures (Bowker, 2019; Darlington et al, 2019; Demajorovic, Lopes and Santiago, 2019; Morgenstern, 2016). 5. Northparkes, NSW – 1999 Cave Air-blast (Bailey, 2003; Hebblewhite, 2003). 6. Pike River, NZ – 2010 Methane Gas Explosion (Macfie, 2013; Panckhurst, Bell and Henry, 2012.

May 5, 2022

By K Rees

In the ideal world of an underground mining engineer, all narrow vein orebodies would be perfectly straight and continuous, thus would be a dream to mine. However, this is usually not the case. Narrow vein orebodies generally occur in association with shear zones and while shear zones do form linear trends, they most commonly preserve undulating expressions that need to be closely monitored, particularly when overprinted by post-formed structures. The surge in mines using fibrecrete as a primary form of ground support effectively reduces the time available for geological interpretation down to a 30 minute window between bogging and shotcreting. Thus, if the quality of the data collected is not up to scratch, then there is only a limited ability to reassess using 2D face photographs. To negate this, Xstrata Nickel AustralasiaÆs Cosmos mine has upgraded its data collection procedure. Geological information is now collected using photogrammetry survey, producing 3D images of the drive. Once created, the digital image of the drive is loaded into Vulcan, thus enabling geological interpretation to be carried out along entire drives, between levels and in association with all other data (eg drill holes, seismic data, etc). In addition to this, the 3D image can be used to accurately model the location of the ore, enabling stoping panels to be confidently positioned to maximise grade and minimise dilution. However, with the focus at Cosmos changing from narrow vein mining, to bulk mining methods in a more geotechnically complex terrain, the use of the 3D images has become paramount in understanding the structural geometry. Continual interpretation of the data has enabled drive profiles to be maintained through the increased use of ground support in poor ground and the redesign of development to enable optimal intersection of structures. Nevertheless, while the collection of quality data is important, it is only the effective use of the data, which enables significant gains in understanding.CITATION:Rees, K, 2012. The benefits of using photogrammetry in the geological interpretation of the Cosmos nickel mine, in Proceedings Narrow Vein Mining 2012 , pp 145-148 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Mar 26, 2012

By F R. M Pires, R M. Carvalho

Supergene processes in banded iron formation (BIF) result in important dissolution, material transport and simultaneous disorder of the residual bands. The rock physical properties such as density, porosity and rheology change during the weathering attack. The itabirite, Paleoproterozoic metamorphic BIF from Quadrilßtero Ferrffero (QF) û Brazil, shows several weathered facies. Strong linking between topographic surface, rock density and iron grade occurs within the weathered zones. This linking is due to partial dissolution of silica and carbonate from itabirite and gravitational rotation and break of the remaining blades, generating kink-like slump structures. The original itabirite density, 3.7 t/m3, decrease at the first leaching steps, until 2.7 t/m3, and increase at the end of the leaching process until 3.6 t/m3. Iron grade increases from 38 per cent to 68 per cent and depressions (sinkhole), subsequently filled by Cenozoic basinal sediments, are developed over the enrichment zones. The formation of important supergene iron ore deposits of QF is intimately related to such a process. Several iron deposits at QF, such as Pico do Itabirito, Fßbrica Nova, Casa de Pedra, Tamanduß, -gua Claras, Cappo Xavier, etc., reveal the aspects related to the proposed evolution, implying that the formational process of the soft iron ores had a regional character. Granular medium model helped in the understanding of the development of the structure and the formation of the deposits. A numerical model has been developed in order to simulate a leaching system in a two-dimensional matrix, composed of two types of materials: leachable and unleachable. Equal volume proportion and vertical banding were considered. Drilling data was used as multipoint attractors to remove leachable matrix nodes.

Jan 1, 2002

By P Audet, D Doley

The mining industry often embraces mine closure criteria that require the reinstatement of predisturbance or even presettlement (ie historic) ecosystems. However, the extent and severity of disturbance associated with most mining activities mean that critical physical and biological characteristics are irreversibly altered. Consequently, it is rare that a reconstructed landscape can support ecosystems even close to the historic condition, and this rarity is reflected in the small number of mine leases that have been extinguished by attainment of such completion criteria. Novel ecosystems are defined as those in which some or all physical and biotic components are irreversibly different from the historic condition. Recognition of the concept of novel ecosystems allows mine closure criteria to be set according to attainable physical and biological conditions that provide safe, stable and manageable environments with acceptable ecological functions. We propose that a landscape that first maximises physical stability and economy yet will provide a range of environments for vegetation communities and fauna habitats that may be very different from those existing prior to a disturbance should be considered suitable alternatives to, eg targeting idealised historic environments. As a result, mine closure criteria should be established by detailed description of the best attainable physical conditions, with negotiated identification and testing of the most appropriate biological systems for the various parts of the reconstructed landscape. As a general practice, revegetation would use native, but not necessarily local species if the new physical environment is not conducive to the survival and growth of local species. These new ecosystems would need to be managed in perpetuity, although the intensity of management might be low if landscape design and engineering are combined with appropriate species introductions. Here, we suggest an abbreviated procedure that may be adapted in light of local conditions and circumstances for guiding decisions influencing the physical and biological properties of reconstructed landscapes that will enable novel ecosystems to meet realistic closure criteria.CITATION:Doley, D and Audet, P, 2014. Changing restoration priorities in the 21st century – opportunities for novel ecosystem design in mine closure, in Proceedings Life-of-Mine 2014 , pp 649–662 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 16, 2014

By J F. C L Costa, J C. Koppe

It is recognised by the major international codes that resource classification involves the interaction of numerous qualitative and quantitative criteria such as data quality, geological and grade continuity, etc. However, the difficulty in quantifying the degree of uncertainty associated with mineral resources estimation has led to the creation of a large suite of methodologies, terms and definitions, with almost every mining company having its own set of standards. It is also intuitively known that several traditionally used methods to evaluate resources do not take into account the spatial continuity of the grades, being unable to provide a reliable measure of the error associated with their estimates. Since they do not provide an error assessment, these methods are inappropriate to assess local or global uncertainty associated with an estimate. Faced with these problems, this work aims at developing a methodology for either quantitative or qualitative analysis of mineral resources estimation, through incorporation of uncertainty and the correct definition of the associated risk or error. The proposed methodology includes the development of a software code incorporating all the main classification techniques used by the mineral industry. A comprehensive study about each technique was conducted allowing a comparison of the parameters affecting mineral inventory assessment. A case study was conducted with a typical iron ore deposit data set from the Conceitpo mine of the Itabira Complex in the Iron Quadrangle, Brazil. The results showed the specific limitations of each classification system and the influence in selecting their key parameters, always based on subjective choices.

Jan 1, 2009

By R Schlueter, H Mischo

The mining industry is facing a variety of geological, technological and social challenges. Future deposits show a general tendency towards increasing depth with complex ores and decreasing grades. One promising approach to deal with low-grade ores is bioleaching in the form of heap and dump operations. Bioleaching is already a state-of-the-art technique, especially for the extraction of copper from sulfide ores. The next step in the development of this technology will be its application as an in situ technology. First attempts to adapt this technology in underground mining in the form of stoping and block caving have already been made. Both methods have to be carried out adjacent to conventional mining operations and therefore require much effort regarding drift development as well as extraction and transport. The adaption of bioleaching as a borehole mining method is the next step to establish an innovative in situ technique to meet future challenges.The Freiberg University of Mining and Technology established the Biohydrometallurgical Centre for Strategic Elements (BHMZ) to foster interdisciplinary research along the whole biohydrometallurgical process chain. In general, 13 different university institutes and several associated groups with about 30 PhD students are mainly focusing on the extraction of indium and germanium from deposits, tailings and recycling material. One of the core projects within the BHMZ is the design and implementation of an underground in situ bioleaching testing facility.This paper demonstrates the potential of in situ bioleaching under technological aspects. Furthermore, different conditioning methods to increase the permeability of the orebody will be explained, and the BHMZ’s underground testing facility will be presented.CITATION:Schlueter, R and Mischo, H, 2015. Potential and applications of underground in situ bioleaching, in Proceedings Third International Future Mining Conference, pp 205–212 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 4, 2015

By M N. Mian

The Cayeli volcanogenic massive sulphide deposit is located in Black Sea region of Turkey. Cayeli Bakir Isletmeleri (CBI) was formed as a joint venture between Inmet (Canada) and Eti Holding (Turkey). CBI is processing complex copper/zinc sulphide ores. The Cayeli concentrator was commissioned in 1994, with a design capacity of 600 000 tonnes/year. The grinding circuit was a classical rod mill/ball mill combination. The rod mill was converted to a primary ball mill in May 1997. The reasons for conversion were to use mill power more efficiently and eliminate feed interruptions during rod charging. The grinding circuit now has a primary ball mill in open circuit, and a secondary ball mill in closed circuit with hydrocyclones. Classification was originally done in two stages with hydrocyclones. Both mill discharges were combined and pumped to a primary cyclopack having two, 500 mm diameter cyclones. Primary cyclone overflow was pumped to a secondary cyclopack for further classification. The secondary cyclopack had ten, 200 mm cyclones. Both unit underflows were fed to a secondary ball mill by gravity. The secondary cyclone overflow, typically 62-64 per cent passing 36 ¦m, at around 42 per cent solids (w/w) was fed to flotation circuit. In order to increase circuit capacity to 1 000 000 tonnes/year and to improve control over the grinding circuit, it was decided to convert the classification circuit from two stage to one stage. For this purpose, six Warman Cavex cyclones having 400 mm diameter were installed. Now, the combined primary and secondary ball mill discharge was classified in single stage with the Warman cyclones in closed circuit with the secondary ball mill. The cyclone overflow goes directly to the copper rougher circuit as flotation feed. The grinding circuit is producing a flotation feed of 70 per cent passing 36 ¦m. The change over to single stage classification at Cayeli was successful. A mill throughput of 1 000 000 tonne/year is being achieved with better control over classification, and improved grind size. Results and comparison between the two classification circuits are presented in the paper.

Jan 1, 2003

By P Ottenio, B CarrT

In the last 40 years, the froth flotation process widely spread in the paper industry becoming the dominant technology for ink removal from recovered paper slurries and cellulose fibres recovery. Most of current models used to describe the flotation deinking process are based on hydrodynamic and statistical theories of ink particles collision/attachment to air bubbles. The complexity of these theoretical models, together with the variability of the recovered papers composition, does not allow to define a set of æeasy to handleÆ equations to be used for modelling industrial flotation cells. This main limiting aspect makes that, in several deinking process modelling tools, basic parameters used to characterise the flotation unit, ie yield, ink removal efficiency, water loss, are constant parameters. Although in some process simulation tools the flotation yield/efficiency is adapted to process control parameters (air ratio, pulp flow, pulp consistency), physicochemical variables (namely the pulp frothing aptitude, the pulp surface tension and the ink adhesion energy to air bubbles) are not taken into account to adjust the flotation yield/efficiency. Data collected during recent laboratory and pilot plant experiments focusing on the role of surface active substances on the flotation efficiency were therefore interpreted and used to identify general trends that could be described with simple semi-empirical models. A set of model equations using surface tension and froth removal height as main variables was then defined in order to describe the behaviour of a pilot flotation cell. Trends obtained during the dynamic simulation of the deinking pilot plant were in good agreement with experimental data obtained under similar experimental conditions, thus indicating that developed equations can forecast with good approximation the behaviour of a flotation deinking unit.

Jan 1, 2005

By J Zhang, B Wei, T Zhao, K Wang

Understanding mining-induced surface movement and fissures is critical for environmental protection and geological prevention. In this study, image recognition algorithms, satellite remote sensing and unmanned aerial vehicle photogrammetry (UAVP) were combined to identify surface movement and fissures caused by mining, and a case study was conducted in a coalmine in western China, and the following conclusions were obtained.

Sep 1, 2024

By T Roberts, S Talu

Steel wire weld mesh is a common industry standard surface support used in underground mining, traditionally installed with mining drills during the bolting cycle. As underground mining depth and stress increase, mining methods and their sequences at these depths place challenges on conventional surface support options. These challenges have provided a need for high capacity surface support options that improve development efficiency, reduce the need for secondary ground support installation and is easily installed with current mining equipment. A 5m2 mesh testing machine was built, suspending a 9500kg concrete slab, designed with multiple hold down points to test varying bolting patterns. Mesh load and displacement is accurately measured using a data acquisition system which pushes against the restrained mesh module with an available 200kN load and 1200mm displacement capacity. A testing program comparing conventional surface support, straps and combinations of both were tested for baseline results. New module designs incorporating existing mesh types and new design concepts were manufactured to allow for single pass installation during a bolting cycle. Nine mesh types, mesh/strap combinations and new mesh module designs were compared using the same test method. Based on these results, two high capacity mesh module types are produced. This paper will detail the test program, load and displacement results and underground mesh module performance, describing the two high capacity mesh modules function within the development cycle and manual handling. CITATION:Roberts, T, Talu, S and Wang, Y, 2018. Design and testing of high capacity surface support, in Proceedings The Fourth Australasian Ground Control in Mining Conference (AusRock), pp 303–322 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 30, 2018

By G Cao, Y R. Cui, J X. Zhao, H P. Gui, G H. Wang, Z M. Wang, M M. Ren, B Li

Pyro-metallurgy is still the main process for lead production and a lot of lead direct smelting processes have been developed in recent years. All the processes will experience two steps in common. The first is the oxidisation of PbS to PbO and then reduction from PbO to Pb, furthermore, from ZnO to Zn. So, the composition of melts, especially the slag composition at reduction step change continuously. Up to now, there are few systematic results on the slag physical-chemical properties with its composition change. In this work, the typical lead direct smelting processes were analysed from theoretical and practical standpoints. The full-period slag composition and slag melting point change were compared. Especially, to the PbO and ZnO reduction steps, based on the full-period slag composition change, the slag properties were predicted. Based on dust composition and test results, the mechanism of Pb compound evaporation and its effect on practice and measurement of high PbO bearing slag physical-chemical property is discussed. It is suggested that to restrain the evaporation in practice and to obtain more accurate measurement results of physicochemical properties of smelting slag are the key problem not only to set high efficiency, energy saving process, but also to environmental pollution control.

Aug 21, 2024

By M Yahyaei, F Vos, J Siliezar

Site-based case studies (including data collected from industrial surveys) and their application in evaluating circuit performance, have a significant role in developing reliable process models. Such models are useful to both plant metallurgists and researchers. Appropriate process models enable the plant metallurgist to assess the impact of different operational parameters on the overall circuit performance. They also provide the researcher with a detailed understanding of process behaviour in response to changes in ore characteristics and process conditions (ie plant throughput, ore competence, ore type). Thus enabling the identification of effective operating factors, and allowing them to be ranked in order of their influence on the process response, which eventually develops into a process control tool in the hands of plant operators.The above approach has been developed and applied at the Julius Kruttschnitt Mineral Research Centre (JKMRC) separately for both comminution and flotation processes. In recent years, the JKMRC has attempted an integrated approach by developing process models that incorporate the impact of upstream processes on downstream processes. This is not possible using the traditional approach of separate comminution and flotation surveys, so conducting integrated plant surveys is crucial for success in developing integrated process models. This paper summarises industrial experience gained while conducting such an integrated plant survey at Glencore’s Ernest Henry Mining operation near Cloncurry in north Queensland. An appropriate approach should be taken to enable the alignment of different requirements from different processes during the plant survey. This, as well as the challenges faced in integrating comminution process models with flotation process models, are identified.CITATION:Yahyaei, M, Vos, F, Powell, M S, Siliezar, J and Perkins, T, 2014. Challenges in developing integrated process models based on industrial survey data, in Proceedings 12th AusIMM Mill Operators’ Conference 2014 , pp 437–446 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 1, 2014

By H J. Dalstra

High-grade iron ore may be derived from banded iron formation (BIF) through four fundamentally different processes:1. syngenetic precipitation of chert free BIF,2. residual enrichment by removal of gangue minerals from BIF to form bedded (residual) ironore,3. mechanical erosion of iron oxide and chert from bedded iron ore or BIF and re-deposition andupgrading as detrital iron ore, and4. chemical removal of iron from BIF and precipitation elsewhere as a secondary (channel) irondeposit.Finally, the BIF itself may constitute iron ore if a high-grade concentrate utilised for pellets or sinters can be derived from it through mechanical (industrial) separation of iron oxide by means of crushing/milling and mineral separation.Historically, exploration for high-grade BIF hosted iron ores was focused on the residual (bedded) deposits and driven by supergene concepts. Exploration for detrital and channel type iron ores was mostly secondary to exploration for bedded deposits, but recently, a more focused exploration effort has led to the discovery of enormous moderate to low iron grade deposits in the Pilbara region of Western Australia. Exploration for high-grade iron ores using syngenetic concepts has been limited,but together with exploration using hypogene concepts offers the best hope of fi nding concealed deposits. Exploration for BIF sources suitable for concentrate ores commenced in the ‘old’ iron ore provinces after the high-grade resources were depleted and has only recently gained importance in Australian BIF provinces, mainly as a result of high iron ore prices in the last decade.

Jul 11, 2011

By A B. Jahed, Ö Aydan, T Ito

In this study, the authors compiled some case history data and present some typical examples of rock slope stability issues in Afghanistan with a special emphasis on Kandahar region and categorise rock slope failures according to the principles of modern rock slope engineering. The slopes considered involve rock-cut, natural rock slopes mainly. The effect of structural geology and discontinuous nature of rock mass on both slope-cuts and natural rock slopes is taken into account and some preliminary assessments on the stable and unstable rock slopes are presented. Furthermore, the seismic effect on their stability is also considered. It is also pointed out that similar issues could be observed in open pit mines, which may be exploited in years to come.

Nov 29, 2022

By H Tran

Local communities are undertaking an increased role in mine project decision making processes, associated with growing pressure and expectations from regulators, financiers and the general public. This is particularly evident in international projects within developing economies. Environmental and social issues are often complex. Solutions demand difficult choices and trade-offs between sustainable development dimensions: economic growth, social equity and environmental integrity. Proactive stakeholder engagement can play a critical role in assisting decision-makers in determining the operational reality of sustainable development by jointly exploring project trade-offs between proponents and affected stakeholders. Good stakeholder engagement has other potential benefits, ranging from reduced financial risk due to regulator delays, legal disputes or negative publicity to increasing market share through good public image. Approaches to consultation and disclosure have changed from short-term regulatory based focuses, to longer-term, strategic tools for relationship building, proactive risk management and new business identification. Approaches to consultation form a significant opportunity to contribute to overall social sustainability. This paper discusses, based on authorsÆ experience, the broader concept of stakeholder engagement and its contribution to social sustainability of the mining industry. The focus is on key considerations for an effective stakeholder engagement. Three case studies outline how broad based, proactive stakeholder engagement can contribute to improved operation and overall sustainability. The case studies include: a greenfields project in Ghana; a long-term mine in Australia; and an open-pit mine in Vietnam.

Jan 1, 2009

By Lynch K. S, Street R. P

Hamersley Iron's pellet plant at Dampier involves ore drying, dry grind- ing in ball mills, disc balling and, indurating by use of the straight grate system. After five years of operation, the plant's output has been increased from the design capacity level of 2 M.T.P.Y. to 2.5 M.T.P.Y. Steps taken in equipment modifica- tion, improvements in process control, and changes in maintenance procedures are described.

Jan 1, 1973

By J Channell, G Phillips

"The Chesney deposit, located 4 km south-east of Cobar consists of three copper-gold rich shoots that lie within a larger, copper dominant lode. A fourth gold rich shoot is located adjacent to the main deposit. The deposit exhibits a strong structural control on mineralisation, as brittle deformation during subvertical extension provided the requisite structural traps to precipitate sulfides from solution. It is postulated that the Great Chesney Fault acted as a fluid conduit, conveying fluids to the site of orebody formation. The continual supply of fluids resulted in cyclic brittle deformation when the fluid pressure exceeded the lithostatic pressure and the tensile strength of the Great Cobar Slate.Evidence supports the hypothesis that ore deposit formation was controlled by: a supply of mineralised fluids transported along the Great Chesney Faulta suitable location for the mineralised fluids to accumulate, accommodated by vertical extension and dilation in certain locationsthe creation of suitable structural traps to capture the sulfides. These traps formed as a result of fault-valve behaviour. Understanding the controls on mineralisation enables prediction of the location of other deposits with similar emplacement history, or extensions of current deposits.CITATION:Channell, J and Phillips, G, 2014. Understanding mineralisation controls – a case study of the Chesney deposit, in Proceedings Ninth International Mining Geology Conference 2014 , pp 301–312 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Aug 18, 2014

By É Lèbre, G Corder

The circular economy concept, as defined by the Ellen MacArthur Foundation (2015) and quoted by the recent International Council on Mining and Metals (ICMM) Guide to Responsible Sourcing, calls for shifting industrial systems from a linear take-make-waste model to a circular model (ICMM, 2015). In this model products are designed to optimise product and material recovery and reuse, and by-products of one system are used as inputs into other product systems. While the mining industry to date has made a limited contribution to the circular economy, the current market conditions, which are prompting calls for greater innovation, make the timing right for the industry to boost its contribution by utilising and generating value from mining waste, or making it available as a feedstock from which other industries can harness value.The first part of this extended abstract discusses the way the circular economy concept can be adapted to metal mining activities, contributing to a more sustainable resource extraction at the mine site level. The second part of this extended abstract presents a circular economy based framework revolving around non-renewable resources conservation. The third and final part examines the application of the framework to the Mount Morgan mine in Central Queensland.CITATION:Lèbre, É and Corder, G, 2016. Utilising mineralised mining waste – contributions to the circular economy, in Proceedings Life-of-Mine 2016 Conference, pp 132–134 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 28, 2016

The object of this paper is to give an insight into various metallurgical operations involved in the making and shaping of steel for shipbuilding at the Newcastle plants of the Broken Hill Proprietary Co. Ltd., Commonwealth Steel Co. Ltd. and the Port Kembla plant of Australian Iron and Steel Ltd. Whilst not steelmakers, inasmuch as their processes start with semi-finished. steel supplied by the Steelmaker, the plants of Stewarts and Lloyds (Aust.) Pty. Ltd. and their associate company, British Tube Mills, Rylands Bros. (Aust.) Pty. Ltd. and the Newcastle and Kembla plants of John Lysaghts (Aust.) Pty. Ltd. make substantial contributions to the Australian shipbuilding industry, principally by way of boiler tubing and wires for welding rods and sheet steel, including special silicon lamination sheet for electrical motors.THE MAKING OF STEELThe making of iron and steel began as an accident, slowly developed as an art and has not yet become an exact science. The iron age dawned on the day when, by chance, man's primitive ancestor built up the wall of his fire with ironstone. In the ashes of the fire he found pieces of sponge iron from which he hammered out the first sample' of wrought iron. For many centuries iron ·was manufactured in bloomeries and occasionally, when the temperature was excessive, the iron combined with some carbon and steel was produced. But it was not till '1740 that steel was manufactured under controlled conditions. In that year Huntsman invented the crucible process which held undisputed sway for over a 100 years until in 1856 the invention of the Bessemer process revolutionised the whole industry.From then on, rapid progress was made. The Siemens...

Jan 1, 1951

Good morning ladies and gentlemen, and may I extend a particularly warm welcome to our shores to those of you who have travelled from overseas to attend this conference. I trust that you will find your visit to New Zealand both rewarding and enjoyable.   This is now my fourth appearance at a New Zealand minerals conference, the second of which has been jointly co-hosted by AusIMM and Crown Minerals. Since taking on the role of Associate Minister of Energy, I have had the opportunity to meet most of the industry players, and to visit a good number of the major mining operations. Through all of this I have become increasingly aware of not only how dynamic the minerals and coal industry is but also the array of factors that affect investment decisions in this business. Many of these factors, such as commodity prices and availability of investment funds, are determined primarily on the international stage. Others however, such as the allocation, regulatory and the fiscal regimes for minerals, are closer to home and are directly influenced by government policy decisions. I will talk more on what the government proposes in this area shortly.   But first, I would like to commend you all on your industryÆs continuing contribution to New Zealand Æs economy. 2004 has seen New Zealand Æs mineral and coal output top $1 billion for the second consecutive year. To put this achievement in perspective, it represents a staggering 47 per cent increase over the national output value recorded just five years ago. Notable contributions over the year came from gold which increased production to 10.2 tonnes (up nine per cent), ironsand production at 2.3 Mt (a 20 per cent increase), and industrial rocks and building stones (up six per cent) with rock for building, cement and roading showing significant rises on the back of strong regional growth and infrastructure development. Many regions, in particular Auckland, Bay of Plenty, Wellington and Southland, recorded significant increased regional activity with supply often struggling to meet demand. By contrast the coal sector had a relatively steady year with production remaining stable at just over five million tonnes for the second year running. Coal exports however are now consistently exceeding two million tonnes annually, generating export earnings of over $200 million, and could well be higher with rail capacity improvements. Many countries throughout the world are now importing our high quality bituminous coal for steel manufacturing and other industrial uses.

Jan 1, 2005