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Resource rent tax is a form of taxation or royalty, which only become effective at such a time as a pre-determined rate of return has been achieved by an operation. The offshore petroleum industry in Australia is already subject to RRT as is the Roxby Downs (Olympic Dam) Mine in South Australia. Both the mining and petroleum taxation regimes in Papua New Guinea include a resource rent tax component called Additional Profits Tax (APT). The implications of the current form of Additional Profits Tax for shareholder cash returns are that the tax burden on the operation may suddenly increase at some stage in the life of the mine, if and when the threshold level of profitability for the tax to be triggered is exceeded. From that point in time onwards the cash return to the shareholders on the capital invested is greatly diminished. For mining companies in Papua New Guinea, the effective tax rate increases from 35% to 57.75% as a result of the onset of Additional Profits Tax. This tax rate penalty is so severe that there appears to be merit in considering the concept of managing profitability through time rather than purely maximising annual pre-tax profits as is currently the case in most mining operations. This would have the benefit of deferring or perhaps preventing altogether the onset of the tax. One possible method for the effective management of profitability is through the control of average mining grade by cutoff grade manipulation. Traditional cutoff grade theory has usually considered taxation as a direct cost at a fixed or variable percentage of annual profits. As a result of this most analyses are conducted on a pre-tax basis. If tax is included in analyses it is usually present as a time independent function of gross profit. Additional Profits Tax is both time and rate of return dependent and therefore not adequately accommodated by currently accepted cutoff grade theory. A review has been made of the effects of resource rent taxes on both the investment decision-making process as well as possible development and mining strategies which may be employed by mining companies faced with Additional Profits Tax. The review includes examples based on the structure of Additional Profits Tax which is levied in Papua New Guinea.

Jan 1, 1997

By P K. Seccombe

The McKinnons gold deposit is hosted by weakly deformed, Palaeozoic metasedimentary rocks of the Cobar Basin in the western Lachlan Fold Belt of New South Wales. Mineralisation comprised a largely supergene resource of 1.7 Mt of ore, grading 1.7 g/t gold, established over structurally controlled, primary gold and base-metal mineralisation in underlying, carbonate-rich meta-siltstones and sandstones of Early Devonian age. Mineralisation was associated with at least two major fluid cycles. The first cycle was characterised by four stages of vein formation. Early quartz and carbonate veins (Stages 1 and 2) and quartz-pyrite breccias (Stage-3) occurred prior to, or early in, the main regional deformation (D1). Continued D1 deformation produced syntectonic, carbonate-base-metal veins (Stage-4), primarily in dilatant zones adjacent to fold axes. The second cycle of mineralisation was an epithermal-style event, driven by a shallow, syn-D2 or post-tectonic intrusion, defined by aeromagnetic imaging. The intrusion may have exploited a jog, controlled along the basin margin by basement faults. Mineralisation produced gold-pyrite veins, associated with pervasive quartz-sericite-adularia and chlorite-sericite alteration. Highest primary gold grades are confined to quartz-adularia boiling zones. The McKinnons deposit offers an important example of mineralisation formed by multiple processes. Early-stage, base-metal mineralisation at McKinnons reflects structurally focussed, basin dewatering and metamorphic processes, typical of other deposits in the Cobar Basin. By contrast, late-stage gold mineralisation at McKinnons is magmatically driven and of epithermal style. Recognition of overprinting distinctive geological events is critical, not only in modelling ore formation, but in developing a versatile exploration concept.

Jan 1, 1999

By M Fuchs

Roadheaders were introduced to mining and tunnelling in the early-1960s. Since this period their main field of application has been for roadway drivages in coal mines and for mineral production, for instance in coal, rocksalt, potash and gypsum mines. Their main field of application in tunnelling is in softer and partly friable rock formations, a suitable area for non-blasting excavation. However, in longer tunnel sections excavators with high ripping forces have replaced roadheaders in many situations. The main arguments against roadheaders have been and still are:a sharp increase in excavation cost with increasing rock strength and increasing abrasivity; and greater risks in conditions which have not been, or could not be, investigated to a sufficient extent. These arguments have, to a great extent, restricted practical roadheader application in production mining and in a lot of æstandardÆ tunnel projects. To address these limitations, factors which could make roadheaders attractive for such conditions and could overcome existing technological difficulties have been investigated. Extension of the economic field of application in hard rock was found to be the most important and the most effective step forward.

Jan 1, 2002

By H Ramandi, H Masoumi, I Canbulat, B Hebblewhite, J Oh, S Saydam, W Timms, S Mo

This paper reviews the floor heave mechanisms in underground coal mine roadways. Previous studies have reported three main failure mechanisms: bearing capacity failure, buckling and swelling. The buckling failure has been observed where immediate floor strata are relatively strong and thinly bedded. On the contrary, the weak floor strata have been associated with both the bearing capacity failure and swelling mechanisms. The bearing capacity floor failures are likely to induce other types of instability such as pillar punching, tensile failure of pillar, roof fall and subsidence as well as floor heave. Despite a considerable amount of research, predicting the magnitude, location and timing of floor deformation is challenging with current state of knowledge. CITATION:Mo, S, Ramandi, H, Oh, J, Masoumi, H, Timms, W, Canbulat, I, Hebblewhite, B and Saydam, S, 2018. A review of floor heave mechanisms in underground coal mine roadways, in Proceedings The Fourth Australasian Ground Control in Mining Conference (AusRock), pp 196–206 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 30, 2018

By K Le Bron

Fatalities that occurred because of rock falls in off-reef excavations (excluding shafts) over the last three years range between ten per cent and 20 per cent of the total number of fatalities that have occurred due to rock falls in the South African mining industry. These rock falls, mostly exacerbated by blasting practices, occur because of failure on discontinuities within the rock mass. Among other reasons of their occurrence is insufficient support installation or the incorrect assessment of rock mass conditions. This report presents qualitative analysis intended to outline rock stability conditions in tunnels subjected to dynamic loading. Seismic waves including those created by firing an explosive charge in tunnel rocks are considered. The rock behaviour is monitored using geophones and extensometers variably installed to record the near and far effects of roof bolt support units on a dynamically loaded rock. The paper discusses the results of field investigations.

Jan 1, 1999

By A Scrase, J Brereton

The Latrobe Valley is located approximately 150 kms east of Melbourne. Within a very small area there are 3 large brown coalmines and associated power stations, 3 large towns, and numerous smaller towns in the vicinity. The mines have been generating power for Melbourne and surrounds for the last 100 years, with two of the mines being owned and operated by the Victorian Government (State Electricity Commission of Victoria) prior to privatisation in the 1990s. All three mines were privatised with the expectation that the mine voids would be filled with water to become pit lakes, as the final landform/rehabilitation solution (Hazelwood Mine Fire Inquiry, Teague and Catford, 2016). It could be argued that until relatively recently, this was largely expected, by government and industry, to be the rehabilitation solution for managing the two key risks associated with the sites:  The geotechnical stability of the mine pits.  The prevention of fire – through covering coal batters with water. Transitioning away from mining economies requires collaborative, regional, innovative thinking with a multitude of stakeholders, from a wide range of government departments, industry, First Nations people and broader community. Closure planning and rehabilitation activities require a range of skills and experience, such as, closure planning, various scientific and engineering disciplines (pit water quality modelling, geochemical modelling, cover design, landform design, contaminated site etc), civil engineering, demolition etc. Some of these skills are similar, such as financial modelling, stakeholder engagement, contract and project management. But the majority are different to those required during the operational phase of a mine. These closure skills can also be lacking within government, with Departments more familiar with monitoring and compliance activities associated with operational facilities. Some key aspects that appear to be critical to planned successful closure are:  Collaborative regional and localised planning, with industry, government, community, First Nations and other industry, business leaders and entrepreneurs all involved in providing a smooth transition away from mining.  Well-defined and known regulatory pathways to achieve mine licence relinquishment assists in encouraging investment.  Appropriately skilled and experienced government and industry personnel.  Mining companies, who are committed to closure planning and provisioning from the earliest point in project planning.  Mine employees who are appropriately skilled and experienced in mine closure planning and implementation with access to all the relevant technical expertise required for the project. Areas like the Ruhr Valley in Germany provide good some examples of smooth processes that facilitate mine economies transition into new economies (World Resources Institute (WRI), 2021).

Aug 2, 2023

Bauxite Resources Limited is grade drilling in its Western Australian Darling Range tenements to firm up resource definition and to develop mine plans. The Darling Range bauxite is generally in shallow deposits with minimum overburden. In the northern tenements, the ore is characterised by a higher silica layer which may extend from 0.5 to 1.5 m below, which high grade bauxite is found to a depth of four to 7 m. When grade drilling samples are taken, every 0.5 m and the recovered sample is weighed, logged and bagged. To eliminate splitting errors, the whole sample over the short interval is pulverised. Twinning holes variations are observed when using various drill rigs. Diamond core has been shown to give close to 100 per cent recovery and grades have been verified by digging bulk samples. As such, diamond core is used as the reference. It is intended to include sonic drilling as an alternative to diamond cores. This presentation details and attempts to explain the reasons for the observed variations in the various drilling methods used by Bauxite Resources Limited. This is an ABSTRACT ONLY no paper was prepared for this presentation.

Mar 1, 2010

By J Bohm, B Csoke, I Tarjan

In process technology, especially in coal preparation, it is often necessary to have a continuous knowledge of the average density of granular material in order to achieve both quality control and process control. The paper presents a new method and means supported by laboratory measurements for the rapid, practically continuous, determination of the average density of continuously supplied granular material through frequent sampling.

Jan 1, 1993

By H Simpson, C Gimber

The financial evaluation of mining projects drives a whole range of decision-making regarding project viability, project design, operating models and closure philosophy. Net Present Value is a financial assessment approach that is pervasive across the industry and has been widely criticised for driving short-term thinking and leading to poor long-term outcomes and future unfunded closure liabilities. But are there alternative models and what are the impediments to their implementation? This paper aims to outline current and past mine closure practices in the mining industry and questions these outcomes given the changing shareholder investment requirement for alignment with sustainable Environmental, Social and Governance (ESG) goals. Examples are presented of closure programs planned and executed in the later stage of the life-of-mine and explores the benefits that could have been realised by integrating these into concurrent production operations. Examples of simultaneous mine development and closure execution and their benefits are presented, and their relevance to corporate investor branding. This paper also discusses the concept of investor project ownership through to sustainable closure and outlines alternative approaches to responsible, sustainable mine closure. We explore the current mining industry divestment practices to remove closure liability from the balance sheet. These underlying financial practices and Net Present Value approach to Mine Closure and alternative approaches are discussed.

Aug 2, 2023

The mill area of PT Freeport Indonesia is located in a valley surrounded by steep natural slope, characterised by extreme topography with mountains rising to above 4500 m within 100 km from the seashore. The valleys are deeply embedded into the mountainous terrain and bordered by steep natural slopes. Vertical or overhanging lime walls are interrupted by steep vegetated screen sections containing accumulated loose material from weathering processes and ancient rock falls and/or debris flows/avalanches. The climate can be best described as alpine subtropical with an accumulated rainfall of more than 5000 mm per year. Occasional snowfalls and superficial freezing above 4000 m elevation leads to heavy weathering of the superficial rock layers and along open joints and fractures. The mill area is a crucial and strategic infrastructure for the entire mining operation which is best characterised as a high density industrial area with facilities including water tanks, power generators, crusher, and concentrating facilities including office buildings and workshops as well as access tracks to the underground mining blocks. Considering the local topography, the restricted space conditions and the number of technical installations, the facilities are likely to be affected and highly vulnerable to rock fall from the surrounding slopes. In order to minimise the rock fall hazard three rock fence barriers area were constructed at the mill area. The 7.5 rock fence barriers were designed with the maximum capacity of 5000 kJ. These are the largest capacity of rock fall barriers ever constructed in Indonesia. The total length of the barriers for the three locations was 126 m. The biggest challenge of this project was the construction of the barrier at West Gulley, which was constructed at 300 m above ground level. For this site, construction access was undertaken using helicopter. This presentation discusses the design of the mitigation structures as well as the construction approach and stages of the barriers. Please note: This paper is abstract only.

Nov 25, 2010

By W Mez

The German mining industry uses different residues for backfilling and stowing. A hydraulic pipe conveying technology for these materials has shown advantages for the transportation into the mine. Pipeline conveying systems are able to bridge long distances, they save room within the underground workings and they save staff and costs. Absolutely necessary for successful use of the hydraulic conveying technology is the knowledge about the unusual non-Newtonian flow properties of solid/liquid mixtures like pastes and slurries. The flow resistance of these materials cannot be described easily by one viscosity. Owing to a yield point and a pseudo-plastic behaviour the viscosity changes with the shear rate and with the streaming velocity inside the pipe. Also these flow behaviours depend very sensitively on the liquid/solid-ratio, often so dramatically that gravimetric or volumetric dosing equipment is not in a position to control the production of backfill pastes. Quality changes of the solid raw materials (particle size distribution, density, mineralogical composition) lead to additional difficulties. The first experiences with hydraulic backfilling plants were troubled by plugged pipes, a bad backfill quality caused by unnecessarily high water content and high costs for chemical binders to solidify the backfill. The installation of viscosity controlled paste production leads to success with the hydraulic backfill technology. A development of the DMT, a bypass pipe-viscometer, has been the key technology. The system is able to analyse on-line, difficult, sticky and abrasive substances and determine their non-Newtonian flow properties. Because the system measures real physical values it is in a position to pre-calculate process relevant parameters like the pressure drop of the backfilling paste in the conveying pipeline. Newer types of the viscometer system also measure the slurry density and calculate its composition. These systems have proven a success controlling backfill paste production plants. They offer a secure prevention of pipeline plugging and a production of high quality backfill pastes with a water content as low as possible.

Jan 1, 1998

By J Sykes, W Treasure, A Saleem, A Trench, S Ulrich, R S. Davies

Below-ground technical complexity remains a traditional source of project challenge. Above-ground challenges then augment this complexity, including in the domain of commodity marketing. All challenges must be solved to produce quality, saleable, ex-mine product. The situation is further complicated in that technical complexities are not independent of each other, so complexity is best regarded as a system rather than a series of isolated factors. Additional above-ground challenges to mining projects are also increasingly sourced from societal and environmental factors, locally and globally. These challenges not only confer project complexity, but have their source in larger, global wicked problems. Finally, financing and resourcing of projects represents an ever-present challenge for all but the highest-quality mineral deposits. CITATION: Trench, A, Davies, R S, Saleem, A, Sykes, J, Treasure, W and Ulrich, S, 2018. On the sources of complexity in contemporary and future mining projects, in Proceedings Complex Orebodies Conference 2018, pp 65–66 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 21, 2018

By J Purandare, D Murdoch

The goal of the life-of-mine plan is to ensure that while the site is left safe, stable and non-polluting, the landscape is such that optimal use can be made of the site post-mining and closure. However, in the face of evolving shareholder expectations and the current international economic climate, numerous mines are ceasing operations and moving into a care and maintenance phase. These changes bring with them a high degree of community concern, not only about the potential legacy of closed operations, but also those mines that continue to operate.While mines across Australia are committed from the earliest planning stage to develop clearly defined post-mining land use and landform objectives, broader expectations related to these objectives may change and evolve during the life of the operation. This is especially the case where a mining operation has a project approval where the land use objectives are aligned to land capability and land use commensurate to that which occurred premining. CITATION:Murdoch, D and Purandare, J, 2016. Optimising land for beneficial use during and after mining, in Proceedings Life-of-Mine 2016 Conference, pp 166–167 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 28, 2016

By R Pax

Feed ore variability, the major disturbance into a mineral processing plant receives considerable attention operationally, and at research and strategic levels to ensure that the throughput of the ore are maintained at all times whilst encouraging a sustainable approach to recovering the valuable minerals from ore bodies. Effort and insights from mineralogical and processing characterisation (eg. ore hardness) of sub-ore body domains allows sequencing for processing to ensure consistency and throughput for the size sensitive grinding unit processes. Optimising the blast fragmentation has benefit as does pre-concentration using ore sorting. Blending of ore domains with different characteristics is common for operations. In recent years a number of technologies have become available for on-line and more rapid assessment of ore and have been discussed in a recent paper by Cameron et.al. (2016) as an opportunity for further utilisation of mine-to-mill (and mine to product) strategies. Current concepts have focused on extensive characterisation of ores so that current control practices can be realised and made more effective with relatively slow measurements and actuation. CITATION: Pax, R, 2018. Dynamic concepts for mine to mill operation and optimisation, in Proceedings Complex Orebodies Conference 2018, pp 124–125 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 21, 2018

By S Withell, K Sheehan

Whitehaven Coal (WHC) is undergoing a transformative journey, deeply committed to the principles of a High Reliability Organisation (HRO) and the establishment of a mature, interdependent culture founded on psychological safety. This ongoing commitment is not merely aspirational but is supported by performance improvements backed by both quantitative performance data and qualitative evidence of cultural progression. WHC has strategically integrated leading and lagging indicators to target fatal risk. WHC focus areas include an emphasis on strategy and risk appetite, targeted data, informed learning, proactive addressing of fatal risk and the integration of data management and technology.

Apr 16, 2024

By G Byrne, A Bowden

There is often a difference in opinion about the allocation of risk in the establishment of mine closure bonds or financial assurances. From the State’s perspective, protection is needed to ensure that the broader community is not left with the liability of properly closing a mine in the event of a default by the mine operator. Such a default might occur where an operator decides to abandon a site, perform incomplete rehabilitation, becomes insolvent or claims limited liability. On the other hand, mine operators who can demonstrate a strong financial position plus a record of social and environmental commitment and performance, argue that there should be some recognition of this in setting a bond that is less than the full cost of early closure. They argue that a mine rehabilitation bond based on the full cost of early closure is overly conservative and ignores the actual risk of the operator being in default. This paper examines an approach that incorporates the risk of default into the establishment of mine closure and rehabilitation bonds. CITATION:Bowden, A and Byrne, G, 2018. Mine closure bonds (financial assurances) – the ‘how much?’ conundrum, in Proceedings Life-of-Mine 2018, pp 32–34 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 25, 2018

By C Tomlin, C Gimber

Historically, key closure risks have been studied during operations and then further assessed as cessation of mining approaches. Only in the past couple of decades or so has progressive rehabilitation and closure become an integral part of regulatory frameworks, sustainable mine planning and more recently, new project and development planning. It is now broadly accepted that the best closure outcomes occur when rehabilitation and closure are properly considered upfront, during the early stages of a mine development project and well before mining occurs. Increasingly, regulatory processes are requiring more diligence on early closure planning, often as part of the environmental impact assessment (EIA) and approvals process, rather than later in dedicated closure study phases. There is an opportunity to use the information generated during this phase to make better decisions on project selection, design, mining methodology and all other facets of the mining operation.

Aug 2, 2023

By M Jara, R Nuñez

As the global interest in sustainable energy sources has increased, lithium has emerged as a vital resource, playing a crucial role in the transition towards a cleaner and more efficient economy, but with this comes important challenges, especially associated to health, safety, and environmental matters. So, it is imperative for the lithium industry to prioritise HSE measures to protect workers, environment and surrounding communities. Implementing robust safety protocols and technology helps ensure the sustainability of mining operations and contributes to the overall responsible development of the industry. In this work we present how the Chilean lithium mining industry becomes a safer and more compliant industry using digital transformation (Cochilco, 2018; Bradley et al, 2013; Cabello, 2022).

Apr 16, 2024

By J H. Wood, I Gray

This paper examines the occurrence of outbursts, coal bursts and rock bursts in underground mining. It then examines them from the viewpoint of the failure mechanism and velocity of particles. The presence of gas is extremely important as it can both act as the fluid pressure component of effective stress leading to failure, and as a substantial energy source in projecting material during a burst. For gas to drive a dynamic event it must be present as free gas held in voids within the rock or coal mass. This can pre-exist the burst event or be released from desorbing gas during it. The latter is typically part of a multi-stage outburst event which can reach very large proportions. Rock and coal bursts are driven by strain energy release and can vary in form. These tend to be single events associated with failure and strain energy release. It is also possible to conceptually have hybrid events where the failure of the mass and the energy release are due to both stress and expanding gas.

Nov 29, 2022

By H J. J Boshoff, A J. Karrasch

Mine planners frequently face the challenge of mitigating the impact of climatic events on mining operations, such as floods and droughts. Specific water management infrastructure can be implemented to meet operational requirements in response to these events. However, the effect of flood protection, for instance, may reduce the resilience of the site to drought. The probability and duration of unfavourable climate sequences significantly influences the net present value (NPV) of implementing specific water management infrastructure.Good life-of-mine planning will consider the incremental development of the project, and provide staged development plans. Water management infrastructure and the timing of implementation are facets of this process.CITATION:Boshoff, H J J and Karrasch, A J, 2016. A decision-making framework for water supply and flood protection options in net present value terms, in Proceedings Life-of-Mine 2016 Conference , pp 196–199 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 28, 2016