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By J V. Mehrabani, A R. Sayadi

Adequate estimation of equipment costs is a key factor in a feasibility study and in evaluation of design alternatives for mining and mineral processing projects. Inaccurate early cost estimation could lead to the elimination of investment benefits. However, this estimation is complex and time consuming because of data accessibility problems and consequently access to a rapid, up-to-date and accurate tool is desirable for carrying out cost estimations.This paper describes the development of models for estimating capital and operating costs for a jaw crusher, which is used as the primary crusher for a wide variety of mineral beneficiation plants, applying single and multivariate regression analyses, together with the design of experiment approach, based on principal component analysis. Explanatory variables include gape size, length of feed opening and power as numeric (quantitative) variables and toggle type (single or double) and the existence of extra heavy duty construction as categorical (qualitative) variables. The performance of each model has been investigated and comparing the estimated R-squared (R2) of each model, the best was selected and its validity examined. The cost models include the capital and operating costs along with the operating cost components. The results indicate that the suggested best cost model is sufficiently accurate for use in feasibility studies.

Sep 26, 2011

By P Guj, J A. Bell

The valuation of early-stage exploration projects requires a valuer to take into account a large number of uncertain value drivers, the interplay among which may be non-linear. This paper examines some of the key value drivers including geology, target metrics, project area and maturity, the market and the psychology behind the decision-making process. The commonly accepted valuation methods and their underlying logic are outlined, including a view on why they evolved, what value drivers they attempt to address and their potential shortcomings. These methods include the multiple of exploration expenditure, geoscience rating, expected values and market based methods. The potential future valuation methods of replacement values and neural networks are also introduced along with how to minimise heuristic bias and error within the market-based approach.CITATION:Bell, J A and Guj, P, 2012. Exploration value drivers and methodologies, in Proceedings Project Evaluation 2012 , pp 17-28 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

By M F. Gazley

The amphibolite-facies metabasaltic rocks of the Mine Mafic Package at Plutonic Gold Mine, Marymia Inlier, Western Australia, contain an estimated total endowment of 12.2 Moz of Au, which includes 4.71 Moz of past production and 2.77 Moz of reserves and resources; the remainder comprises lower-grade inventory. Over 65?000 multi-element analyses of whole-rock core and face channel samples from the underground workings of the deposit have been collected by portable X-ray fluorescence (pXRF) using a handheld Innov-X Omega pXRF unit. The analyses were performed on pulverised samples through paper bags, and were corrected using a pulverised, matrix-matched, reference standard. This method of data correction compares favourably with conventional XRF analyses performed on the same samples.A preliminary study based on pXRF analyses from a small number of drill holes found that a geochemical stratigraphy was evident in the pXRF data, and that this stratigraphy strongly controlled the location of Au mineralisation. The present study incorporates a much larger pXRF data set that samples a greater volume of diamond drill core and face channel samples and presents the data in a three-dimensional (3D) framework.This data set allows an investigation of the mineralogy of Au mineralisation with varying geochemical associations across the deposit. Historically, there has been a strong relationship identified between As and Au, which has caused issues with metallurgical performance, rendering some areas of the deposit only marginally economic. Utilising seamless data integration of the pXRF data set allows for recognition of the different styles of Au mineralisation using elemental concentrations and ratios from the multi-element analyses (Au:As, Au:As:Cu, As:Cu vs. K:V), and to visualise the distribution of these different mineralogical associations in 3D. The results of the 3D modelling and geochemical characterisation of the different styles of Au mineralisation are currently the focus of an extensive metallurgical testing program, the preliminary results of which are presented here.

Aug 22, 2011

By M G. Hawtin

The Rocklands copper project is a multilode, iron oxide copper gold (IOCG) + cobalt mineralised system located in the Eastern Fold Belt of the Mt Isa Inlier. Rocklands orebodies cover a range of oxidation zones from oxide, to supergene and primary. Each zone contains different economic minerals of interest. The supergene zones contain significant amounts of native copper and the primary zones are dominated by chalcopyrite. The juxtaposition of these oxidation zones and minerals make it an interesting mineralisation system.Current mine production sampling collects a nominal 3 kg drill chip sample from a 1 m composite, RC drilled interval. A site specific sampling procedure was needed to quantify introduced sampling error when taking grade control samples. Due to oxidation and mineralogical variation in ore zones we needed to develop a practically achievable sampling methodology that ensures minimum sample mass and sample error requirements are achieved to ensure ‘representative’ samples for all ore types.These issues are planned to be resolved using an experimentally derived method using principles from the Theory of Sampling. This method uses an experimental calibration of parameters K and a for Gy’s fundamental sampling error formula using a modified 32-piece sampling tree experiment to compile sampling nomograms for the primary and supergene ores. This paper demonstrates the process undertaken to improve the quality and standard of existing mine production sampling procedures at the Rocklands operation.Results indicate a sample mass of 5 kg for RC drill chips is appropriate for both the primary and supergene ores to achieve a fundamental error below 0.01 or 10 per cent relative error, which is slightly higher than the existing sampling protocol of 3 kg. An additional experiment is recommended to compile sampling nomograms using the exact laboratory comminution and mass reduction stage information to assess the use of a 3 kg sample. The results also indicate no changes are required to existing sampling protocols when sampling RC drill chips in primary and supergene ore at Rocklands.Sampling nomogram results also provide a useful ‘rule of thumb’ reference guide to other mining and exploration companies to help understand minimum sample mass requirements and sampling error during exploration drilling, resource evaluation and mining production stages when targeting similar IOCG mineralised systems. A sample mass of 5 kg is recommended when RC drilling similarly IOCG mineralised prospects and deposits in the Cloncurry area. Future test work is recommended when additional open cuts become active as well as including resource drilling drill core to provide better three-dimensional sample representivity.CITATION:Hawtin, M G, 2017. Minimum sample mass from reverse circulation grade control drilling at Rocklands copper project, in Proceedings Tenth International Mining Geology Conference 2017, pp 337–346 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 20, 2017

By R Sterk, B Reid

The Konongo Gold Project is located on the western margin of the 125 Moz Ashanti Gold Belt in Ghana, West Africa. It is situated 60 km along strike of the world-class mineral system at Obuasi and is interpreted to lie on the same controlling regional shear system.The project is operated by Signature Metals, a subsidiary of the Liongold Corporation, and is managed and funded by the Liongold Corporation.Historic underground operations at Konongo produced 1.6 Moz Au at a head grade of 11.8 g/t Au, from eight operations spread along 16 km of the shear system. Mining focused almost exclusively on free-milling gold in quartz, ignoring the gold-bearing sulfide mineralisation associated with the quartz veins. Underground mining ceased in 1986.In 2013, Signature Metals re-focused the program at Konongo to assess the viability of mining the sulfide ore sustainably. This led to the first campaign review of the historic underground data and resource potential since mine closure. The Obenemase mine was the first of the eight operations to be assessed as part of this campaign.Large amounts of legacy data have survived for Obenemase and several historic resource estimations have been completed based on these data. The data typically consisted of hand-drawn sections and plans, and ledgers of commonly incomplete drilling and sampling data. Some drill core have been lost over time, but a large amount of quarter-core and half-core as well as pulps and rejects are still available. Previous resource estimates had a low confidence value because all the available assay and geological data were integrated effectively with the estimates, resulting in a lack of understanding of both grade and geological continuity.This project built a new geological model for Obenemase that greatly enhances the understanding of the controls on mineralisation using a thorough approach of re-surveying, re-cataloguing and re-logging. This model led to an increased degree of confidence and a subsequent upgrade of resource classification, and created several previously unrecognised strong exploration targets. The resulting resource estimates increased the value of the project by 100 per cent.This paper emphasises and highlights the importance of a well-understood geological model on the confidence of a resource estimate and how this may directly impact on the project’s ‘bottom line’.CITATION:Sterk, R and Reid, B, 2014. The Konongo Gold Project, Ghana – an example of how geology makes all the difference to a resource estimate, in Proceedings Ninth International Mining Geology Conference 2014 , pp 467–476 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 18, 2014

By P D. Munro

On the occasion of the 14th Mill Operators’ Conference and marking 40 years since the first one was held in Mount Isa in 1978, it is fitting to review the history of the Conference and its development over that time.The first 10 Conferences were irregularly held at three to four year intervals, with 9 of these in regional centres of Australasia. It is only since 2012 that the Mill Operators’ Conference has become a regular biennial event, alternating with the MetPlant Conference.The number of people attending the Conference has more than doubled to 470 delegates at the 13th one in 2016. It has outgrown its regional beginnings.Papers presented to the previous Conferences have been analysed according to commodity, country of origin, technology and theme plus the affiliation of the authors to discern any trends that may assist in planning the future events.Suggestions are made as to how the AusIMM might wish to arrange its mineral processing/metallurgical conferences.Recent changes to the structure of the Conference providing a more meaningful experience for the delegates and increasing their interaction and involvement should be vigorously pursued.CITATION:Munro, P D, 2018. Mill Operators’ conferences – a 40-year retrospective and a vision for the future, in Proceedings 14th AusIMM Mill Operators' Conference 2018, pp 5–14 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 29, 2018

By Hagan T. N

Quite apart from economic considerations, the following performance parameters must be considered when selecting an explosive for a particular blasting operation. 1. total energy yield/kg, and more particularly, strain energy/kg and bubble energy/kg of charge 2. charge weight/m of blasthole 3. sensitivity of the charge 4. water resistance of the charge The effective division of an explosive's total energy into strain energy (SE) and bubble energy (BE) is explained as is the influence of each energy component on blast results. Because some rocks require a high strain energy for effective breakage, while others are most satisfactorily fragmented by bubble energy, values of SE and BE are more meaningful than those of total energy. Unfortunately, our extensive knowledge of the effects of certain variables on total energy has not yet been completely supplanted by the influence of these variables on SE and BE values. Relative SE/kg and BE/kg values are presented for a range of explosives. The 'charge density of ammonium nitrate/ fuel oil (ANFO)-type explosives is essentially constant throughout the length of the charge; because of their compressibility, slurry

Jan 1, 1974

By G Zhao, S Hapugoda, E R. Ramanaidou, P Hapugoda, Y Jin, G O’Brien

In 2021 the ports of Port Hedland and Dampier in the Pilbara Region of Western Australia handled 900 Mt of iron ore. This ore was produced in the Hamersley’s mines and transported by trains to the ports for subsequent export. Dust, which is generally considered to be particles less than 100 μm in diameter, is generated at all steps in the supply chain. Whilst all dust may have potential impacts on human health and mangroves and buildings a proportion of the dust is classed as respirable (PM10) dust, which consists of particles <10 μm in diameter. In 2021, in response to the community concern with iron ore dust, CSIRO commissioned an internal study to characterise and benchmark the dustiness of the different ores and to develop targeted strategies to minimise dust impacts, without affecting other iron properties, such as stickiness during transportation. A specific concern is that that the dust in the PM10 fraction may contain significant amounts of particulates, such as free silicates which may have health implications for the workers and residents. This study provided detailed mineral and chemical characterisation of the dust generated from the railed fine ore products for five generic Australian ore types: Australian Channel iron Deposit (ACID), Australian Brockman (AB), Australian Marra Mamba (AMM), Australian Pilbara (AP) and Australian magnetite (AM). The dust from these fine ore products were compared to that generated from a sample of Brazilian Hematite (BH) type ore fines. The ores were evaluated for their physical, chemical and mineralogy properties, dust generating potential and understandings of the relationship between the dustiness of iron ores and their physiochemical properties. The size distributions of the railed fine ore products were determined and a suite of analyses were conducted on subsamples of total (-106 μm) and fine (-38 μm) dust. For all the ores, the total dust fraction contains less Fe and more contaminants (SiO2 and Al2O3) than did the bulk ore. The fine dust fraction contained even less Fe and more contaminants (SiO2 and Al2O3) than the total dust fraction. This suggests that the iron ore dust contains more clay and potentially free silica than does the bulk ore. These findings were supported by optical and Scanning electron microscopy analyses of the samples. Dustiness measurements were made for each of the different ores (-106 μm) to investigate the relationship of dustiness of various iron ores with their physiochemical properties and assess their responses to dust suppression by the application of water sprays.

Sep 18, 2023

By M D. Uttarwar, R R. Yerpude

India is the world’s third-largest producer of coal and is endowed with the fifth-largest coal reserves in the world. Surface mining straddles the entire domain of the Indian coal mining industry, yielding over 88 per cent of production. With continually rising domestic demands, it has to shoulder the responsibility of sustaining the requisite increase in coal production and chasing commensurate stripping targets. Such an ambitious task calls for the deployment of smart technologies. In such a demanding situation, cast blasting of overburden has emerged as a promising alternative for enhancing production and productivity of dragline pits.The cast blasting technique reduces stripping costs significantly as it utilises the chemical energy of explosives in place of mechanical energy to move large volumes of overburden quickly. Proper application of cast blasting not only reduces overall mining costs but also increases coal production. This paper investigates and evaluates the potential of the cast blasting technique, with special reference to dragline pits employing the rehandle method of extended bench. The economic feasibility of the technique is also ensured under different scenarios so that considerable benefits would accrue to the individual surface coalmines. To underline the efficacy of the technique, different cast blasting models have been formulated under a range of operational and economic scenarios that resemble present day practices in India. In order to test for economic variability in the application of the technique, a risk analysis of all the formulated cast blasting models is performed using net present value.CITATION:Uttarwar, M D and Yerpude, R R, 2015. Potential of the overburden cast blasting technique in Indian surface coalmines – a modular approach and its financial implications, in Proceedings 11th International Symposium on Rock Fragmentation by Blasting, pp 655–664 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 24, 2015

By A Huebner, A Noack

Companies all over the world are very sensitive concerning their IT and network security. In most network connected technical installations and machines however, network security is not taken into account to a significant extent: insecure protocols are run, unencrypted information is exchanged freely and even broadcasted wirelessly and networked machines are accessible via insecure file transfer protocol (FTP).What happens in case of malfunctions of such technical installations? Who is responsible? Who can be held liable in case of accidents? The first computer worm for automation systems (æSTUXNETÆ) (Symantec, 2010) was discovered during 2010.The paper is intended to create sensitivity among decision makers for potential security and resulting safety leaks and points out the current status quo in technical network security. It outlines best practices for secure networking and procedures for remote access and remote software updates on stationary equipment and mobile mining machinery. It describes how to ensure authentic and genuine configurations and software targets and how to ensure secure communication for autonomous and remote controlled equipment. For such equipment in particular, the following statement should apply: æThere is no safety without network securityÆ.

Sep 26, 2011

By L Galisson, E Audigé, D Sowers

Establishing a robust geotechnical instrumentation and construction monitoring plan is one of the keys to the successful delivery of the world’s largest soft-ground bored tunnel in Seattle, Washington. The paper describes and provides a return of experience on current and best practice for monitoring tunnelling projects in urban areas. The owner’s contractual approach is discussed to highlight the flexibility of the design-built contract in achieving equal or better solutions by allowing for the use of innovative technics. Special attention is given to the management and involvement of third parties (building owners, utility owners), including the public, to overcome all challenges faced during the installation of the monitoring system in downtown Seattle for over 1000 instruments. Finally, the authors present the strategies implemented for managing the monitoring data and communicating with the owner, contractor and stakeholders.CITATION:Sowers, D, Galisson, L and Audigé, E, 2014. Current and best practice for monitoring tunnelling projects in urban areas – Alaskan Way bored tunnel, Seattle, Washington, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 441–450 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

By Rowlands N. J, Zimmermann D. O

The Engel Model search simulator is described with particular emphasis on preparation of input parameters. The computer has a "black box" role in the same way a telephone or radio is a "black box" in communications. A search technique (sensor) is selected and applied in two stages of&apos;search, namely, reconnaissance and detailed. The model relies on knowing and quantifying the parameters of the target sought and the search technique; this is usually done by analogy studies from available literature and experience. The parameters are then balanced by feasibility studies on the search area. Case histories show that the study makes the user aware of what he is likely to find rather than what he wants or needs to find to be viable. Two case histories are presented: one for Mississippi Valley type lead- zinc deposits and another for stratiform copper. The first study showed particular benefits in the input stage and highlighted the fact that one could expect a lot of encouragement by way of interesting results but with little chance of finding the high-grade,

Jan 1, 1974

By N Haque

Base metal ores contain low levels of toxic/hazardous elements such as arsenic, antimony, bismuth, cadmium, lead and mercury. Given the large tonnage of base metal ores mined and processed each year globally, the accumulated mass of minor elements introduced into the biosphere is large and could be expected to have a significant environmental impact. Life cycle analysis (LCA) is a methodology that has been developed to assess the environmental impacts of material supply chains over their entire life cycle. Assessing the toxicity impacts of metallic wastes and incorporating these impacts into LCA methodology is not a simple task given the complexity of the issue. However, research and methodology development is in progress internationally to address this. Despite limitations concerning the lack of a coherent framework for characterising the toxicity impacts of metals, including issues such as bioavailability, a study was carried out to give first estimates of the relative toxicity impacts of various waste streams from metal production processes. The wastes considered were: red mud; sulfide tailings (copper, nickel, lead/zinc); lead/zinc slags; synthetic rutile residue; iron oxide residue; and copper slags and anode slimes. These toxicity estimates can be considered the æworst caseÆ scenario for these wastes, where all the metals present are bioavailable. Combining estimates of the amounts of the various waste streams produced in Australia each year with the toxicity results showed that despite their relatively low human toxicity impact per unit mass compared to some other waste streams, red mud and the various sulphide tailings had the highest annual human toxicity load on the environment, along with copper smelting slag and dust. Data from the pH dependent leaching test reported in the literature were assumed to represent first approximations of metal bioavailability and used to compare the two approaches to estimating the toxicity impacts of red mud.

Jan 1, 2009

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&apos;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&apos; of wrought iron. For many centuries iron &#183;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 &apos;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

By T Barto, D Thomson, T Norgate, C Doblin

Collaboration between CSIRO Minerals and SunSalt Pty Ltd, a salt producing company located in rural Victoria, has resulted in a commercial process to recover magnesium sulfate (commonly called Epsom salt) from the saline waters of the Murray Basin. The feed for this process is bittern; the liquor remaining after halite (common salt) has been harvested from the saline water by evaporation.SunSalt produces salt and bitterns from three locations, namely Hattah (Victoria), Mourquong (NSW) and Wakool (NSW). The small size and considerable distances between these operations makes it uneconomic to build a stationary processing plant to extract value-added products, in particular Epsom salt, from the bitterns of the three operations. This fact led SunSalt to build a containerised mobile plant that could be moved to each site to process the bitterns at the end of the salt harvesting period.Epsom salt is extracted from the bittern by further evaporation, refrigeration and recrystallisation. In this process the bittern is diluted with five per cent volume of fresh water to minimise precipitation of residual halite in the bittern. Cooling the diluted bittern to between -5 and -10¦C precipitates up to 70 per cent of the magnesium sulfate, which is recovered as 85 to 96 per cent purity Epsom salt by filtration. This product is marketed as an industrial grade Epsom salt. Higher purity (up to 99.9 per cent) Epsom salt (USP or BP grade refined product) is made from the industrial grade product (raw Epsom salt) by recrystallisation.The containerised mobile plant was commissioned in December 2002. The raw Epsom salt generated in the mobile plant is refined to a higher purity Epsom salt in a separate plant located in Mildura. The Mildura plant was commissioned in December 2003.The CSIRO-SunSalt collaboration has demonstrated that the saline waters can be processed into a useful resource, and in addition could create jobs and a new skill base in regional Australia. The production of Epsom salt locally in Australia, which is worth currently about $A600 per tonne, removes the need to import over 3000 tpa from overseas with a net positive impact of $A2 million on the balance of trade.

Jan 1, 2004

By S M. Gover

Estimating the probability of failure for embankments is not intuitive. It requires not only an appreciation of the strength of the embankment, but an understanding of the variability and uncertainty in the strength parameters as well. These additional aspects are, in themselves, relatively new to most practicing engineers, and therefore require some discussion.This paper discusses the concepts of probability and uncertainty, and presents a reliability-based numerical experiment, together with a literary study and collation of some of the author’s historical slope stability analyses, to investigate whether a direct relationship between safety factors and probabilities of failure exists for certain levels of uncertainty in strength parameters. In doing so, a useful tool is presented whereby knowing the safety factor of a simple slope or embankment with a consistent level of uncertainty, one can infer an approximate probability of failure.CITATION:Gover, S M, 2018. Linking safety factor to probability of failure, in Proceedings Mine Waste and Tailings Stewardship Conference 2018, pp 384–396 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 23, 2018

A field trial of the prompt neutron-gamma SIROLOG technique was undertaken by the CSIRO - Division of Geomechanics at Callide Coalfields during July 1989. The trial investigated whether the sonde could reliably be used for the determination of Ash and Iron Oxide (Fe2O3) in coal seams, which had a highly variable iron content. Ten boreholes were logged, being water filled of a nominal diameter of 120 mm. The logging probe employed a 1.6 ¦g 252Cf neutron source and a 51 x 51 mm BGO detector. The source to detector distance was 15 cm. The results from one exploration borehole at the Dunn Creek Mine are discussed in the paper. The rms deviations for ash and iron determination between the neutron-capture predictions of the geophysical logs and the laboratory - chemical assays were 1.9 per cent Ash and 0.88 per cent Fe respectively. Using existing empirical equations which relate iron oxide concentration in coal ash to Initial Deformation Temperature (reducing conditions) at Callide, it may be possible to indirectly determine ash fusion properties as least as accurately, on a more detailed ply-by-ply basis, and more cost competitively than current laboratory techniques allow.

Jan 1, 1991

By Weller KR

A study of high pressure rolls grinding of a number of Australian ores and minerals has been carried out using a pilot-scale machine with rolls 300 mm diameter and 70 mm wide. The results from this study have been used in conjunction with plant survey data to construct computer simulation models of various comminution circuits and these have been used to investigate options for incorporating high pressure grinding rolls into these comminution circuits. Possible rolls options for three of these circuits are presented, and likely energy savings over the existing circuits are discussed together with potential improvements in plant throughput and/or product sizing. A scale-up procedure for predicting full-scale machine performance from small-scale testing is described, and the effects of rolls operating conditions are also discussed.

Jan 1, 1991

By Lynch K. S, Street R. P

Hamersley Iron&apos;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&apos;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

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

Jan 1, 1990