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By P Mitchell, J Proffett, I Munajat

Batu Hijau is an island arc porphyry copper-gold deposit located in the southwest corner of Sumbawa Island in the Sunda-Banda archipelago of Indonesia. Southwest Sumbawa Island is underlain by Early Tertiary, low-K calc-alkaline to weakly alkaline volcanic and intrusive rocks. Within the mine area the oldest exposed rocks are medium- to thick-bedded, medium to coarse andesite volcanic lithic breccia, thin bedded, fine-grained volcaniclastic sandstones and mudstones and hypabyssal porphyritic andesite. In the eastern portion of the mine area there is a thick sequence of quartz diorite that postdates the andesites. A small stock of Equigranualar Quartz Diorite predates the Batu Hijau deposit and occupies the contact between the andesitic volcaniclastic sequence of rocks and the Porphyritic Quartz Diorite. Batu Hijau is a world-class copper-gold deposit that has a drill indicated mineable reserve of 914 million metric tonnes grading 0.525 per cent copper (10.58 billion pounds copper) and 0.403 g/t gold (11.8 million ounces gold). Mineralised material not in reserve accounts for an additional 580 million metric tonnes at 0.328 per cent Cu (4.19 billion pounds copper) and 0.171 g Au/T (3.19 million ounces gold), and including an oxide copper resource of 57 million tonnes at 0.37 per cent Cu and 0.12 g Au/T. Copper and gold mineralisation is directly related to quartz veining and wall rock alteration that developed with multiple tonalite porphyry intrusions. The tonalites were emplaced along the contact between the andesitic volcaniclastic rocks and quartz diorite intrusives. Copper and gold are zoned around the porphyry intrusions, which are designated by their contact-age relationships and other features as Old Tonalite, Intermediate Tonalite(s), and Young Tonalite(s). The Old Tonalite was the first copper-bearing intrusion, and although it is the smallest intrusion it has the highest quartz vein density, the strongest alteration and the highest grade. At least two tonalite porphyry intrusions followed the emplacement of the Old Tonalite. Each of these intrusions was associated with less quartz veining, weaker hydrothermal alteration and lower grade copper and gold than the previous intrusion. The intrusive cycle culminated with the emplacement of the Young Tonalite, which contains relatively few quartz veins, is weakly altered and mineralised. Hypogene hydrothermal alteration and sulphide mineralisation developed in five temporally and spatially overlapping stages. These stages consist of Early, Transitional, Late, Very Late, and I Zeolite alteration. Early alteration and sulphide mineralisation accompanied each tonalite porphyry intrusion, but with diminished intensity in each subsequent intrusion. Transitional and later stages of alteration and mineralisation postdate the tonalite porphyries and overprint Early stage alteration and mineralisation. Early alteration and mineralisation consisted of biotisation, secondary magnetite and plagioclase development, fine porphyry-style stockwork veining and ore mineralisation. Magnetite-biotite????quartz stringers and dark micaceous (biotite-sericite) veinlets were developed. The veinlets were accompanied by biotisation of magmatic mafic minerals and groundmass. Thin, irregular and discontinuous æAÆ type quartz veinlets and fine-grained chalcocite, digenite and bornite mineralisation accompanies the Early alteration. It is hypothesized that most of the copper mineralisation was originally deposited as bornite, digenite and chalcocite. Secondary plagioclase was added along the selvages of the early quartz veinlets. Early alteration is pervasive within and proximal to the tonalite porphyries. In the distal portions of the deposit, andalusite and anthophyllite formed at intermediate to shallow depths, and in the deeper portions of the deposit, respectively. The andalusite and anthophyllite probably developed at the same time as the early magnetite-biotite-quartz alteration in the core of the deposit. Transitional-age alteration consists of oligioclase/albite-sericite-chlorite- quartz-¦vermiculite and is associated with æBÆ quartz veins. Through-going planar æBÆ veins are thicker than æAÆ and æA-familyÆ veinlets and have chalcopyrite????bornite along vuggy centrelines and narrow oligioclase????albite alteration envelopes. Rare æCÆ chalcopyite¦quartz veinlets were also formed during Transitional alteration. During Transitional alteration early copper sulphide minerals (chalcocite, digenite and bornite) are converted to bornite and chalcopyrite. The majority of the copper (50 - 70 per cent) in the deposit is contained in ores in which chalcopyrite is the predominant sulphide. Late alteration consists of feldspar destruction and replacement by sericite and other minerals. The late alteration is accompanied by the development of æDÆ sulphide veinlets and veins. These veins consist of pyrite and quartz????chalcopyrite. Within the halos of the late pyritic veinlets biotite is replaced by sericite, quartz-sericite, quartz-andalusite, or quartz-pyrophyllite+kaolinite replace plagioclase, and magnetite is converted to specularite and/or pyrite. In the periphery of the deposit, the feldspar destructive alteration, together with outer zones of Transitional-age alteration, constitutes what is commonly referred to as a æpropylitic zoneÆ. Very Late hydrothermal alteration is also characterised by feldspar destruction, but differs from Late alteration in that feldspar is replaced by smectite in association with sericite and chlorite. Sulphide mineralisation in this stage consists of sphalerite, galena, tennantite, pyrite and chalcopyrite. The last stage or I Zeolite alteration consists of low-temperature, open space filling consisting of stilbite or laumontite¦calcite. Supergene oxidisation of the orebody extends to a maximum depth of 210m. Isolated deep oxidation occurs along open fracture zones to depths of ~400 metres along æDÆ vein filled fracture zones. Weak supergene copper enrichment occurs in a thin horizon (15 to 60 m thick) that blankets the top of the deposit. The main supergene copper mineral is secondary æsootyÆ chalcocite replacement of sulphide grains and as veins.

Jan 1, 1999

A device is described which is suitable for the automatic sampling of dust in dust laden flue gases. This device, called a Venturi Sampler, consists of two pipes each fitted with a suitably designed venturi.Both pipes are placed in the flue where one acts as an open-ended reference tube and the other as the actual sampling tube.The gas sampling rate is automatically controlled so as to maintain a zero differential pressure between pressure tappings in the two venturi throats. The venturies are so designed that under these conditions the gas velocity in the sampling pipe is always equal to the free gas velocity in the flue-that is isokinetfc sampling conditions are maintained.INTRODUCTIONThere is a constant need in industry for regular and accurate assessments of dust losses, both to assist in improving operating efficiencies in order to minimize losses, and to obtain accurate metallurgical balances. In many cases where sampling is carried out in dust laden gases, the existing sampling methods are both laborious and inaccurate, and often make no provision for changes in flue gas velocity while sampling is in progress.In the majority of cases where a measurement of dust losses in a stack or flue is required, a preliminary velocity survey is made with a pitot tube to establish the gas velocity at each of the points at which samples are to be taken. The sample of gas (and dust) is withdrawn through a tube connected via a flowmeter to an exhausting apparatus. Some means of removing the dust from the gas sample is placed in circuit ahead of the exhausting apparatus. This is often an alundum or paper thimble housed in a gas-tight container.The purpose of the flowmeter is to measure the actual flow of gas during sampling so that the sampling velocity at the inlet to the sampling tube may be calculated, and the flow corrected so that the sampling velocity will agree with...

Jan 1, 1959

By G J. Massoth, K Faure, A G, R G. Ditchburn, I J. Graham

From modest beginnings in 1996, research into the mineral potential of New ZealandÆs Exclusive Economic Zone has progressed into a major multidisciplinary component of GNSÆs recently funded 6-year æMineral Wealth of NZ and its EEZÆ Programme. In excess of $7.5 M of research funding has been expended, plus $10 M leveraged via collaborations with NIWA (NZ), NOAA (USA), JAMSTEC (Japan), U. Kiel (Germany) and ANU (Australia), whose scientists have contributed hugely to research cruises, as well as subsequent analysis and publication. The 1999 NZAPLUME I cruise was the first research expedition to systematically locate, and chemically characterise, submarine hydrothermal venting associated with arc volcanoes of the southern part the Kermadec intra oceanic arc system. This was followed by the 2002 NZAPLUME II and 2004 NZAPLUME III cruises to the mid- and northern-sections of the Kermadec arc, respectively. Combined, these cruises have surveyed 1300 km of the volcanic chain (from Whakatane to Monowai), including 34 major volcanic centres. Together with concurrent surveys in the Tonga arc, this is now the longest continuous stretch of intra oceanic arc to be surveyed for hydrothermal emissions. Most of the volcanic centres are characterised by simple cones although 30 per cent contain caldera complexes, and compositions range from basalt through to rhyolite. Massive sulphide mineralisation has been recovered from several volcanic centres in the southern Kermadecs (Clark, Rumble II West and Brothers), suggesting the existence of significant Au and base metal bearing deposits along the arc front.

Jan 1, 2005

By Y Xie, D Willingham

Predictive maintenance (also known as ‘condition/health monitoring’) refers to the intelligent monitoring of equipment to avoid future failures. In contrast to conventional preventive maintenance, the maintenance schedule is not determined by a prescribed timeline; instead, it is determined by analytic algorithms, such as machine learning, using data collected from equipment sensors and/or via simulation.Predictive maintenance offers the following benefits for operators and equipment manufacturers:- reduces equipment downtime by identifying issues before failure, thereby enabling convenient scheduling of equipment service and extending equipment lifetime- determines the root cause of the failure, enabling appropriate service to be performed without utilising resources to determine a diagnosis- avoids the unnecessary costs of maintenance and unexpected failures- improves safety and product quality.Algorithms and data are critical to predictive maintenance success. Sensor data is first preprocessed using advanced statistical and signal processing techniques; it is then combined with predictive modelling techniques, such as machine learning, to estimate equipment health.Once tested, predictive maintenance algorithms may be used in an operational setting within an IT environment, such as a server or cloud. Alternatively, algorithms may be implemented in an embedded system directly on the equipment, allowing for faster response times and significantly reducing the amount of data sent over the network.CITATION:Willingham, D and Xie, Y, 2017. Predictive maintenance modelling for bearing-based equipment, in Proceedings Iron Ore 2017, pp 627–630 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 24, 2017

By S F. Simmons

The Ohaaki Rhyolite and the Rautiwiri Breccia are two volcanic units occurring in the shallow and deep parts of the Broadlands-Ohaaki geothermal system. Alteration of these units by chloride waters results in distinct mineral assemblages that also have distinct whole rock compositions. The Ohaaki rhyolite is altered to an assemblage dominated by quartz, adularia, illite and pyrite as a consequence of silica, potassium and sulfur metasomatism. Locally, these rocks contain up to 0.5 ppm Au. The Rautiwiri Breccia by contrast is altered to an assemblage dominated by albite, adularia, quartz, illite, chlorite and pyrite in association with modest sodium metasomatism. Whole rock oxygen isotope compositions of altered rocks range between 3.3 and 7.5 ë, and are generally lower compared to their fresh rock equivalents having values of 9.5 to 10.6 ë; the result is broad pattern of lower values with increasing alteration intensity.

Jan 1, 2002

A model has been developed as part of the AMIRA P420 Gold Processing Technology Project to simulate the recovery of gold by centrifugal gravity devices. The model (which is available online) uses the simulation methodology developed by Laplante et al (1995) to predict gravity recoverable gold (GRG) recovery under varying operating conditions and circuit configurations. In addition to predicting GRG recovery, the model also predicts the GRG content and size distribution of the cyclone overflow and underflow. The predicted overflow GRG content and size distribution can be used as inputs for a leaching model in which size dependent leaching rates are applied for each size class of GRG and non-gravity recoverable gold (non-GRG) in the cyclone overflow, allowing size-by-size leach recoveries to be determined for GRG and non-GRG. The application of the gravity model and leaching model are demonstrated using a case study. The simulated gravity recovery and leaching performance showed excellent agreement with the measured values. The developed models can be used to assess the sensitivity of gravity gold and leach recoveries to varying feed GRG content, GRG size distribution, gravity circuit feed rate, classifier performance and leach residence time. The described methods can be used to optimise new and existing gravity and leaching circuits.

Aug 1, 2010

By D Cumming-Potvin, S W. Jacobsz and E Kearsley, J Wesseloo

This paper describes a physical modelling program that recreated block cave propagation in a geotechnical centrifuge. A brief description of the design of the test along with the sample material and monitoring equipment is given. The samples tested showed caving behaviour and fragmentation distributions that one would expect from caving mines, with one cave deviating due to pre-existing major discontinuities in the sample. A series of fractures formed ahead of and parallel to the cave, implying that an extensional failure mechanism may play a larger role in cave development than previously thought. The results of acoustic emission monitoring of the tests show a seismogenic zone advancing ahead of the cave; however, the quantity and quality of the data is too limited to draw any further conclusions.CITATION:Cumming-Potvin, D, Wesseloo, J, Jacobsz, S W and Kearsley, E, 2016. Results from physical models of block caving, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 329–340 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

Over the past few years, there has been an emerging relationship between business and civil society, especially NGOs. This relationship has the potential to bring about significant change, identifying common ground between commercial and societal interests. The mining industry has been a leader in acknowledging the need for community consultation and engagement. This paper argues that partnerships can make a very significant contribution to the industry as it comes to terms with the dilemma of an open economic system pushing against a closed ecological system.The paper will pose a number of questions: where is the locus for debate about sustainability in the mining sector?; how well embedded within companies are the new competencies that Leon Davis first identified in 1995 for the mining sector?; how has education for mining engineers or exploration geologists changed to prepare people for what are very different expectations within the working environment?; how well is the industry doing in managing its own environmental impact and what is its responsibility to an agenda for sustainability which extends beyond its own operations?;and how can NGO partnerships contribute to more sustainable outcomes? The paper does not aim to answer these questions, but to explore them in the hope that the issues and possibilities raised will contribute to advancing progress towards sustainability within the industry.

Jan 1, 2002

Inpit tailings disposal has been undertaken at a number of mining sites within Australia. This paper presents a brief history of the experience of inpit tailings disposal at the Marymia Gold Operation in Western Australia, including geotechnical aspects of the design. Regular monitoring of the inpit tailings disposal into the K1SE Pit at Marymia has allowed the operators of the mine to assess the performance of the tailings storage against its predicted performance during the design phase. Results of this monitoring indicated that the predicted performance was exceeded and the results have been incorporated into the design of another large inpit tailings disposal, the K1 Pit. Monitoring of tailings disposal to both the K1SE Pit and K1 Pit has allowed the mine operator to make substantial savings from inpit tailings storage when compared with above ground tailings storage facilities. The inpit method of tailings disposal at Marymia has proven to be acceptable from an environmental perspective by reducing the water resource requirements of the project, backfilling pits, which would otherwise collapse with time and eliminating the need for disturbing additional areas of mining leases, which usually accompanies construction of above ground tailings storage facilities.

Jan 1, 1999

By M Simpson

Greywackes of the greater Auckland Region (Brynderwyn Hills to Hamilton), when considered on a regional scale, have characteristic ranges of physical, mineralogical and other properties. Some properties (eg density, porosity, crushing resistance, clay index) generally cluster and correlate with the basement greywacke facies, regions and terranes recognised by geologists, and their diagenetic/metamorphic level. Other local factors, particularly variations in mineralogical composition, nature of matrix cement, grain size, and degree of weathering may produce aberrant properties. Some of these local variations, when extreme, have the potential to affect the aggregateÆs performance in roading or the concrete industries.   Smectite and the zeolite laumontite are the major deleterious minerals occurring in fresh greywacke rocks of the Auckland region, although weathered rocks may contain halloysite, an expanding member of the kaolin clay mineral group. These minerals, when found in abnormally high levels in greywackes cause expansion effects in the aggregate. Currently there are inconsistencies in the detailed correlation of shrinkage, clay index, clay mineral content and intrinsic expansion data that need further research to resolve them.  

Jan 1, 2007

By M Olsen, L van den Berg

Bowen Basin coalmines suffer from hot and humid ambient conditions during the summer period. The ambient conditions combined with high VRTs, increasing depth of working and significant equipment heat loads results in heat issues underground. Coalmines operate under heat stress management plans as required by legislation with associated trigger action response plans (TARPs). Some mines also employ refrigeration as part of their heat management strategy.A recent case study was conducted on a mine producing about 4.5 Mt/a from their longwall and experiences summer surface ambient temperatures of about 23.5ºCwb. The expected virgin rock temperature is 46ºC at 300 m depth. The mine currently introduces a modest amount of surface cooling at the portal using ‘off-the-shelf’ air conditioning units. This system does not effectively manage face temperature primarily due to positional inefficiency.Underground conditions remain hot in summer and work is typically undertaken in accordance with the Heat TARP. This has a direct impact on the productivity of crews, worker comfort and also negatively impacts the workforce morale. The mine commissioned a study to determine a refrigeration strategy aimed at maintaining underground conditions below TARP levels 90 per cent of the time.The ventilation network model was calibrated against actual temperature data to simulate the heat loads including longwall, conveyor system, strata and auxiliary diesel fleet. This model was then used to determine the cooling requirements for bulk surface cooling, bulk underground cooling, surface district cooling and underground district cooling strategies.These estimates were used to undertake a total owning cost trade-off for the different strategies. The study concluded that a chilled air shaft has the lowest technical risk but the highest total owning cost due to shaft development needs. Introducing chilled water to an underground cooler via boreholes offered the lowest total owning cost and was therefore recommended.CITATION:van den Berg, L and Olsen, M, 2017. Heat load assessment and mine cooling strategies for a longwall coalmine, in Proceedings Australian Mine Vent Conference 2017, pp 231–236 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 28, 2017

æSustainabilityÆ is one of those words that has gained more usage in popular discourse than in the dictionary. In fact it is not in many dictionaries at all. Typically, given this, it also seems to mean different things depending on whose lips it emerges from. It is now like a code word in that if people say it, you donÆt have to think about its meaning; it is just æthereÆ and is taken for granted. This is a problem for the mining industry as we are now using the term too and to be effective in what we do, we need to have a reality check and see how those outside who have views on us (æstakeholdersÆ maybe) use it. The core issue seems to be æsustainability of whatÆ: the industry?, a company?, the global environment?, particular ecosystems?, the community? At these levels, the term seems almost meaningless. If we do not even agree on what it is, at least broadly, our communication and possible partnerships for going forward will be difficult to say the least. One reference to æsustainÆ in my thesaurus is: æTo keep from failing during stress or difficultyÆ. This may be a clue to something approaching a common notion. I suggest that to use æsustainabilityÆ we make the following assumptions:that we are talking about human activity aimed at making a living that has an impact on the natural and social environment; that humans must make a living (though what this needs to include is problematic); that the impact of particular activities has been problematic to date and needs to be monitored, altered, stopped, etc; that there is stress on both social and natural environments; and that change can be effected in order that particular activities such as mining minimise their negative effects and maximise their positive. This is why we are taking part in sessions such as this one today. Two more initial observations: First, it strikes me that even with the above assumptions laid out, æsustainabilityÆ and æsustainable developmentÆ are too abstract and general as concepts. We have to break these high and mighty ideals down into workable, bite-size chunks, into practical ways of dealing with the world outside our sites and companies. Second, sustainability, on both sides of the fence, too often focuses on nature and environment as though they are independent of people and community. I would argue, perhaps provocatively, that sustainability is primarily a people issue and has to be tackled as such. I want to look at the overall climate for business today and how it has responded before I return to what we can and need to do as the mining industry to make æsustainabilityÆwork.

Jan 1, 2002

Recovery of Pentlandite and Chalcopyrite from Tailings by Bi-Cyclone Powerful Flotation Column

Sep 13, 2010

By K Niyomjinda, B Etschmann

Chatree Gold Mine is currently the only modern day gold mine operating in Thailand, and is situated approximately equidistant from Chiang Mai in the north and Bangkok in the south. Environmental guidelines set by the Thai authorities require Chatree Gold Mine to achieve a Total Cyanide level of 20 ppm or less in the process plant discharge slurry stream prior to release into the tailings storage facility. This paper describes both the initial difficulties faced in achieving compliance on this limit utilising the conventional INCO SO2/Air cyanide destruction system and the subsequent process improvements initiated to both the leaching process and the standard INCO process to achieve the current compliance levels of approximately 99/100 shifts. Improvements were focussed on the dual aspects of reducing the formation of WAD cyanide and ferrocyanide species in the leaching circuit coupled with process changes to improve removal of the ferrocyanide species from solution during the cyanide reduction stage.

Jan 1, 2004

Unrelieved residual strains can influence the states of stress in rock masses. If cheap, stable structures are to be constructed in Tock in which large pressures are exterted by unrelieved residual strains, the pressures must be either utilized or neutralized. A photoelastic technique has been used to show that the release of residual strains in rocks is influenced by the mechanical properties of anisotropic rock fabrics. The relationships between directions of residual strain release and the attitudes of minor geological structures have been determined. For engineering design purposes it is possible to estimate the principal stress directions in rock containing unrelieved residual strains if the attitudes of such minor geological structures as foliation planes, lineations, and joints are known.INTRODUCTIONQuarry workers have long been aware that near-surface rocks may be highly stressed. In many cases the stresses are too large to be the result of gravitational loads. Dale (1923, pp. 34-35) gives many instances of deformation produced by the violent release of residual strains in quarry rocks. Coates (1963) has described powerful rock bursts and cases of rock deformation underground implying the existence of much larger stresses than are likely to result from present-day gravitational loads. The only explanation is that pressures of up to several thousands of pounds per square inch may be caused by unrelieved residual strains in rock.Instruments have been developed for measuring states of stress in rock masses. Most stress determinations in rock have been made on the assumption that rock behaves as a simple elastic material. It is now known that rock is a...

Jan 1, 1964

Tougher physical mining and processing conditions as well as economic circumstances are causing many mining companies to re-evaluate the effectiveness of their mine planning. The recent wave of inexpensive computing power provides the engineer an opportunity to go beyond the simple one-off manual mine design and production schedule. The basis of a good mine plan is a good reserves model. Concepts of mine model development are explored. The only advanced computer methods that have found consistent success in optimising mine planning functions are economic pit limits determination and material scheduling. Three pit 'optimisation' methods are examined; the moving cone, the Lerchs-Grossman 3-D graph algorithm, and the new network flow algorithm. A comparison between the methods in terms of total profits generated and computer time involved are made. The results show that both algorithms produced a higher profitability than the simple moving cone, but at much higher execution times. However, the profit increase never exceeded much more than 1 % of the base moving cone case. Finally, a method for the development of long range material production schedules with forward waste planning is presented.

Jan 1, 1989

Recycling of Sludge from the Production of Manganese

Sep 13, 2010

By J Kelly, C Kelsey

The Autogenous Kelsey Axial Displacement (KAD) mill is essentially a short retention time centrifugal mill, designed to effectively harness extraordinarily high concentrations of input energy for efficient particle size reduction. The mill which has an operating duty band extending from primary to ultra-fine also has the unique capacity to generate fine and ultra-fine products from single stage size reductions of either coarse or fine mineral feeds, in both wet or dry operating modes. This paper covers developments following a recent optimisation programme which confirmed that mill shell speed and the velocity differential between the shell and the rotating internal disc assembly tips could be optimised in relation to specific energy for a given feed rate and feed size providing the product size remains constant. Subsequent test-work further demonstrated the versatility of the mill with duties ranging from the removal of surface contamination associated with heavy mineral concentrate particles to the production of premium ultra-fine talc, from a single stage of size reduction. Open circuit grinding of a rougher gravity concentrate to liberate gold ahead of leaching also highlighted the scope for the application of low cost KAD milling for a range of hydrometallurgical feed preparation duties, which involve fine and ultra-fine grinding.CITATION:Kelly, J and Kelsey, C, 2013. Advanced media-free fine and ultra-fine grinding - The Kelsey axial displacement mill, in Proceedings MetPlant 2013 , pp 152-161 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 15, 2013

By Hennessy F. L

IntroductionEvolution of the Present SmelterRoastingFiringHearth SlopeDust HandlingFurnace DetailsSmeltingFurnaceFeed DeliveryPulverised Coal FiringWaste Heat BoilersDust HandlingAir PreheaterReverberatory Slag DisposalConvertingVesselsAir SupplyMatte TappingConverter Slag HandlingPurchased Ore PlantINTRODUCTIONSmelting in blast furnaces commenced at Mount Morgan in 1906, when copper, which interfered with gold recovery by chlorination, became an asset. After various changes in blast furnace practice, reverberatory smelting com...

Jan 1, 1952

By R G. Barker

This paper reviews the annual status of the New Zealand mining industry (metallic minerals and coal) including key aspects such as mineral production, mineral exploration expenditure, commodity price trends, key industry players, market activity and other significant commercial factors.   Strong commodity prices during 2006 have been underpinned by a number of key factors including US dollar weakness and emerging market demand, particularly from countries such as China and India. In real terms commodity prices have recovered significantly since 2002 and are currently at 20-year highs.   New Zealand exploration spending on metallic minerals (predominantly gold) is at a 15 year high driven by rising global commodity prices. New Zealand gold production in 2006 was about 340,000 oz and is expected to grow in 2007 as new mines at Frasers and Globe-Progress (Oceania Gold) and Favona (Newmont) come on stream. Gold production broadly lags 10 years behind exploration spending and exploration activity over the last five years remains well below that seen in the early 1980Æs. Expenditure on coal exploration shows a similar trend with strong growth from a low base over the last five years, reaching over $11 M in 2006. Total coal production in 2006 was 5.9 Mt, an increase of 10% on 2005 with imports from Indonesia adding a further $1.1 Mt.   Newmont and Oceana Gold are by far the largest public gold mining companies operating in New Zealand, although only Oceana Gold maintains a presence on the local stock exchange. Other metals explorers with New Zealand projects include a range of public-listed Juniors (market capitalisation less than NZ$50m) domiciled largely in New Zealand, Australia and/or Canada. Capital-raising on public markets directed towards New Zealand exploration is estimated at around NZ$12 M for 2006, the bulk of this coming via Glass EarthÆs NZ$10 M IPO on the NZAX in October.   The New Zealand Coal sector is dominated by the state-owned enterprise Solid Energy with around 80% market share by production. Other domestic coal competition remains limited, and includes the L&M Group, Pike River Coal, Eastern Corporation, and New Vale (acquired by Solid Energy in 2007). Pricing parity comes mainly from imported coal and global thermal coal prices have remained strong during 2006 at around US$45-55/t, driven by continued expansion in Chinese demand. Coking coal prices have eased 16% since 2005 to around US$98/t in 2007.   Although recent increases in exploration spending suggest a renaissance in the New Zealand minerals sector, long-run trends indicate that we have simply rebounded from a low base over the last five years and much work is still to be done to stimulate further growth in the mining industry to maintain minerals production at current levels. Key industry challenges include marketing exploration opportunities to local and overseas investors, building a critical mass of NZX-listed explorers and providing an internationally competitive environment to attract further capital and expertise.

Jan 1, 2007