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By L. J. Park, A. D. Thomas

Gladstone Pacific Nickel Limited (GPNL) is proposing to develop the Marlborough nickel deposit in central Queensland and the Yarwun Refinery in Gladstone, Australia. The project proposes to connect the two sites with a DN 500, single pump station slurry pipeline, transporting up to 4 Mtpa of nickel laterite ore as slurry 180 km from Marlborough to Gladstone. Slurry viscosity is a key parameter influencing pipeline design. Not only is the slurry viscosity relatively high, requiring pumping at low concentrations, around 30% by weight, but the viscosity (yield stress and plastic viscosity) increases with shearing or agitation. It is argued that the viscosity changes can be analysed in terms of total energy input, including energy input during grinding. The slurry viscosity is therefore expected to increase along the pipeline and the pumping concentration must be low enough such that the increase in yield stress does not cause transition to laminar flow towards the end of the pipeline. The base viscosity of two ore types is determined using a rotational viscometer for minus 212 micron slurries. Viscosity variations with ore particle sizes of d99 212, 425 and 600microns are investigated. For each of these particle sizes the expected increase in viscosity during pipeline transport is simulated on a laboratory scale by agitation with a turbine mixer in a baffled container to give the same equivalent unit energy input as will occur in the pipeline. Tests were also conducted on the d99425 micron slurry in a 2.7 metre diameter DN 200Wheelstand, rotated for the 23 hour transit time and at a similar relative velocity as in the pipeline. Based on the Wheel stand test results the yield stress is expected to increase by a factor of 3.1during pipeline transit. The preliminary design allows for a reduced pumping concentration to accommodate this increase in yield stress towards the end of the pipeline.

Jan 1, 2007

To the members of The South African Institute of Mining and Metallurgy I have audited the annual financial statements of The South African Institute of Mining and Metallurgy set out on pages 641 to 644 for the year ended 30 June 2006. These annual financial statements are the responsibility of the Institute?s Council members. My responsibility is to express an opinion on these annual financial statements based on my audit. Scope I conducted my audit in accordance with International Standards on Auditing. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the annual financial statements are free of material misstatement. An audit includes: ?examining, on a test basis, evidence supporting the amounts and disclosures in the annual financial statements, ?assessing the accounting policies used and significant estimates made by management, and ?evaluating the overall financial statement presentation. I believe that my audit provides a reasonable basis for my opinion. Audit opinion In my opinion, the annual financial statements present fairly, in all material respects, the financial position of the Institute at 30 June 2006 and the results of its operations and cash flows for the year then ended in accordance with generally accepted accounting practice appropriate to the Institute. Supplementary information The supplementary schedule does not form part of the annual financial statements and is presented as additional information. I have not audited this schedule and accordingly do not express an opinion on it.

Jan 1, 2006

By A. M. Engelbrecht

Paper written on project work carried out in partial fulfilment of B Eng. (Chemical) Membrane processes are vital to a diverse range of technical and biological systems, which also feature in mineral processing applications such as the treatment of mine effluent and extraction of metals. In this study, the use of cellular automata to model a semi-permeable membrane that separates two compartments is considered. Cellular automata are simple models that enable the analyst to represent well-understood local effects, such as the chemical or steric interaction between molecules themselves and between molecules or particles and their environment, which can lead to very complex behaviour on a macroscopic scale. Various physical phenomena, including reverse osmosis, were simulated. Initial results for the effect of temperature, membrane structure and chemical properties of the solutes on the performance of the membrane appear promising. Keywords: cellular automata, dynamic modelling, filtration, membrane fouling, osmosis.

Jan 1, 2007

By A. K. K. Rompel, G. K. Chunnett

Introduction Structure appears to be of secondary importance to the Bushveld Complex when viewed from a distance. However, a closer look already reveals that large fault zones bound the Bushveld Complex. These fault zones are deep-seated crustal lineaments of continental magnitude such as the Thabazimbi-Murchison Lineament, the Johannesburg-Barberton Lineament, the Palala Fault zone and the Rustenburg fault. Furthermore, the Bushveld Complex is transected by large faults such as the Vlakfontein Fault, visible in the Pilanesberg, the Steelport Fault and the Laersdfrift Fault in the Eastern Bushveld, the Brits Graben, and a multitude of dyke generations (Figure 1). When pursuing structures on a project scale, the lack of outcrop, particularly in the western part of the Bushveld, is of no help for the exploration geologist. Consequently, the first dataset that needs to be considered is the Landsatimagery. Older Landsat TM 5 or newer Landsat ETM 7 will immediately reveal areas of outcrop for field visits, and, after further processing, indicate the geological units, in particular the platiniferous Critical and the Main Zone of the Rustenburg Layered Suite (Figure 2). Airborne magnetic surveys are the subsequent dataset necessary for any decent interpretation of the geology under the ?Black Turf? cover. Currently Anglo Platinum acquires aeromagnetic surveys with a flight height of 20 m and a line spacing of 50 m. These result in high-resolution imagery absolutely crucial for dyke delineation and dip modelling, stratigraphic layer detection, IRUP detection and possibly pothole discovery and fault delineation (Figures 3 and 4). However, the aeromagnetic surveys and the Landsat imagery reveal structures very much confined to the surface and may be hundreds of metres above the platiniferous reef horizons. This may lead to inaccuracies. When determining the underground structures for shaft sinking and mine planning, a 3D seismic survey is advisable. Too many shafts have been sunk in the Witwatersrand Basin for gold and in the Bushveld for platinum without sufficient information of the structure beneath. Recent 3D seismic surveys in the Bushveld have proven the technology and visualized the reef horizons and led to an interpretation of the underground structure (Figures 5 and 6). [ ]

Jan 1, 2004

By M. Gershon

During the exploration phase of mine development, drilling location is in the hands of the geologist, and drilling is spread over the entire domain of the property or deposit boundary. During the mine planning and production phases, however, the mining engineer also needs to use the information obtained from the drilling program. Thus it is important that he/she have some input into the selection of the drillhole locations. Usually, when exploitation will center on one portion of the property for the immediate future, the mine engineer will want to have more of the drilling performed in this area. In the early stages, the purpose of the drilling was to make a decision concerning whether or not to develop a mine. Once the decision is made to proceed with this development, the mine engineer needs to know, with as much confidence as possible, the estimate of the ore grade at each location where mining will occur. This paper addresses the problem of drillhole location for the needs of the mining engineer. The goal is to compare a variety of approaches to drillhole location with a new approach developed by the author. This approach is based on the theory of geostatistics, with the estimation variance used as the quantitative measure of the confidence attained. The goal of the algorithm is to select those locations that minimize the estimation variance subject to constraints on the number of drillholes and the total cost of the drilling program. The kriging equations are used as another set of constraints. The resulting nonlinear optimization model is expressed in terms of binary (0 - 1) decision variables leading to a solution by the branch-and-bound procedure. The algorithm has been applied at a number of operating properties, and practical results and suggestions for implementation are provided.

Jan 1, 1987

By S. C. Thorley, J. R. Menasce

Trackless mining in low profile (LP) and extra low profile (XLP) platinum stopes has forced equipment designers to re-evaluate their equipment profiles to match the undulating reef. Low profile equipment designed to work in conditions with smooth and flat floors will simply not function with undulating floors and roofs and will become wedged between the floor and roof, beached on undulations due to lack of ground clearance, or suffer excessive mechanical damage. Tyres, too, need special evaluation, as conventional tyres for trackless mining do not work in an extra low profile environment.

Jan 1, 2004

By P. J. Kinver

This paper deals with the development of backfilling methods and systems at the Broken Hill orebody of Black Mountain Mineral Development Company (Pty) Limited, at Aggeneys in the north-western Cape Province. Production started in 1979, being confined to large diameter blasthole stoping methods in the upper, steeply dipping areas of the orebody. This blasthole reserve is now depleted and the production tonnage, 100000 tons per month, is produced from eight cut and fill stopes in the flatter dipping areas of the orebody. The fill methods of the blasthole stoping area evolved prior to the pillar extraction are briefly discussed together with the resulting experiences gained that enabled virtually 100% extraction to be achieved. The original cut and fill mining used costly hydraulic cemented fill; this was replaced partly by unconsolidated river sand and later by dune sand which occurs in abundance. The paper describes the planning, research work and commissioning of a cycloning plant that now enables dune sand to be used successfully as an unconsolidated hydraulic fill. The development of drainage, placement and control methods are also reviewed.

Jan 1, 1988

By H. Rosenberg

Haldor Topsoe A/S has developed its WSA technology to meet the demand in the market for a simple and reliable process that converts sulphurous emissions from off-gasses into high-grade sulphuric acid. With more than 50 references in 25 countries, the WSA technology has proven its ability to generate acid at 98% concentration, efficiently and economically. The wet gas sulphuric acid (WSA) technology treats the furnace off-gas directly from upstream gas cleaning plants. No further drying is required, since the humidity present in the off-gas is used to hydrate the SO3generated in the converter and produce sulphuric acid. The heat generated during the oxidation, hydration and condensation processes is principally reused in the process to preheat the off-gas to the required temperature level, and also to generate high pressure superheated steam for process use. This advantage of steam production, coupled with lower water and power consumption requirements, is particularly important in the African production environment. Having fewer process components than conventional acid plants, the WSA technology is a simple and compact operation, which makes it easier to retrofit into an existing smelter plant. Further, the WSA technology simultaneously offers the possibility to treat multiple gas streams arising within the production facility due to superior flexibility in terms of SO2concentration and turndown ratio.

Jan 1, 2006

By T. Marsden

The demand for continuous improvement in the industrial world is an ongoing process. Some sectors, where the competitive forces are well established, have led the development of new and reliable technological innovations. Although the metallurgical industry can rightfully be proud of its process improvements, there is still work to be done in materials and in material handling. In some cases, the improvements will be as simple as adopting technologies that have been perfected in other processing or manufacturing industries. This paper discusses the next design generation for copper tankhouses which will yield: ?Improved copper quality ?Improved equipment availability ?Lower life cycle costs ?Safer operations. These benefits will be realized through new developments and design improvements in: ?Permanent cathodes ?Cathode washing ?Cathode stripping machines ?Anode preparation machines ?Improved lead anode design ?Recycling of lead anodes and refurbishment of cathodes. The demand for base metals, and in particular copper, has led to more research into improving efficiencies in electrowinning and refinery plants around the world. One of the areas previously taken as a matter of course was the production of lead anodes and stainless steel cathodes. In South America alone there are over 600 000 cathodes and anodes in circulation?a very significant figure.

Jan 1, 2009

By E. Dermietzel

The fundamental ideas of Computer Aided Lignite Mining (CALM) with respect to hardware and software used at Rheinbraun are explained and outlined in detail. The computers used in the main data processing department and in the different departments in the mines are described. Special emphasis is laid upon the network connecting the computers at different places for data-exchange. Concerning technical applications, the main facilities of CALM are deposit and pit modelling, complex geomechanic computations and mass calculations, data recording from the production process in the pits and refining plants, and detailed information and planning systems for water management and mining equipment. Concerning administrative applications, the main facilities of the software are the accounting system with cost controlling and planning, the materials management system with stock control, forward planning and computer supported order procesing, a system for the administration of property within and surrounding the mines, and systems for personnel administration and payroll. The various software systems developed for these application and the influence of data processing technique, such as data base management and the interconnection of data processing systems, are demonstrated.

Jan 1, 1987

By Sh. Arshadnejad

Stress analysis in a rock medium is essential to determine the stress concentration between two consecutive circular holes and prediction of fracture behaviour. When two consecutive circular holes in a hard rock medium such as granite are loaded internally by the pressure of non-explosive expansion material (NEEM), stress concentration occurs between the holes which then causes the rock to fracture. In this work, finite element (FE) analysis using Phase2 code was employed to study the stress concentration between two consecutive circular holes under internal pressure induced by NEEM. Effects of different hole diameters and spacings, rock properties and NEEM pressures have been analysed. The data gained from the numerical analysis and analytical solutions were then used to develop two models. These models were then modified by using the FE data and polynomial regression analysis. The developed analytical models showed to be in a very good agreement with the FE analysis. Hence, the developed models can be used with confidence to determine stress distribution and concentration factors around two consecutive circular holes in a hard and brittle rock which are loaded internally by the pressure induced from the NEEM. Keywords Finite element method, non-explosive, quarry mining, stress concentration..

Jan 1, 2011

By S. M. Spottiswoode

Rock mechanics benefits of stope support in deep-level mining originate principally from the ability of the support to resist relative movements between the hangingwall and the footwall. While the role of stabilizing pillars and backfill on reducing the energy release rate (ERR) at the face is well understood on the basis of elastic behaviour of the rock mass, the effect of support on controlling movement of fractured ground around deep-level stopes has not yet been thoroughly studied. As part of a programme of studying the behaviour of this fractured ground, geophones were placed 10 m from the face on the roof and floor of a longwall stope in which packs were used as supports. It was found that differential movement between the roof and floor generally exceeds average stope movement during a seismic event. Conventional support therefore transmits very little seismic energy; this is expected to remain true until complete convergence occurs. In backfilled stopes, backfill can become at least as stiff as the fractured wall rock. This will have the effect of reducing the length of the hanging- wall beam. Amongst other rock mechanics considerations, a shorter hanging- wall beam should: (i) increase the resonance frequency of the hangingwall and thereby decrease the levels of vibration for seismic events with M > 1,0; (ii) reduce absolute vibration levels by increasing the mass of rock immediately adjacent to the stope which is shaken by seismic waves; and (iii) reduce differential movement between the roof and floor and thereby reduce cyclic strain on the backfill and on gully support.

Jan 1, 1988

A set of six design principles for rock engineering was developed by Bieniawski: design objectives; minimum uncertainty; simplicity of design components; state-of-the-art practice; optimization; and constructability. These principles translate into a ten-step design process. Although this methodology was developed for rock engineering, it is applicable to any design process, feasibility study, etc. Diligent use of such a process will ensure that a defensible design or evaluation has been carried out. Recently a ?strategic conversation? process has been identified by Ilbury and Sunter that includes the following ten steps: scope; players; rules of the game; key uncertainties; scenarios; SWOT analysis; options; decisions; measurable outcomes; and meaning of winning. A comparison of these steps with those of the design process shows a remarkable correlation. This is perhaps not surprising since engineering design is a strategic up-front issue, and front end loading in a project is critical to achieve the expected project performance. Based on the close correlation between the strategic conversation and engineering design processes, a circular design process, rather than a linear process, is proposed. The ?circle of design? better reflects the importance of review and monitoring in the two phases of successful design and implementation?defining the design, and executing the design.

Jan 1, 2009

The Floatability Characterisation Test Rig (FCTR) is a self-contained, highly instrumented, mobile pilot plant. It was developed as part of the AMIRA P9 project, primarily to determine ore floatability characteristics and to develop and validate flotation plant modelling, scale-up and simulation methodologies. This paper describes the use of the FCTR in validating the AMIRA P9 flotation model and modelling methodology. In 2001 the FCTR was installed and operated in parallel with WMC's (now BHP Billiton's) Kambalda Nickel Operation. The FCTR was operated using four different circuit configurations of increasing complexity. Metallurgical surveys, cell characterisation measurements and batch flotation tests were performed around each circuit. This allowed the calibration of a number of flotation models using a combination of data from one, two, three or four circuit configurations. The calibrated flotation models were then validated using predictive validation. To do this, data around a further five FCTR circuit configurations were collected (three of which are presented in this paper). The performance of each of the five circuit configurations was predicted using JKSimFloat V6.1 and the parameters from the various calibrated flotation models. The predicted performance was compared to the experimentally determined performance of each circuit. The validation of the AMIRA P9 model was shown to be largely successful except in the case where the reagent addition (depressant) to the validation circuit was different to that in the calibration circuits. The results also provided information regarding the required complexity of the calibration circuit and how many calibration circuits are required to obtain an accurate prediction of circuit performance. These results have increased the confidence in the AMIRA P9 flotation modelling methodology and have provided important information on what data must be collected to allow the accurate prediction of plant performance using the floatability component modelling approach.

Jan 1, 2007

By O. Y. Ntrama

Lebowa Platinum Mines has been in operation since the late 1960s and is a relatively small producer compared to Anglo Platinum?s other operations. The mine has never had substantial capital investment to expand its production scale even though its resource base is estimated in excess of 100 years at current mining rates. It is forecast that the mine will become unprofitable after 2008 due to the workings of the ageing infrastructure, the Merensky Reef operations being further from the shafts, decrease in productivity and increase in operating costs. In order to reverse the forecast decline in operational inefficiencies and profitability the replacement of the Merensky Reef operations at Vertical and UM2 shafts with the development of a 120 Ktpm Brakfontein Merensky Reef Mines is in progress. This paper covers the operational readiness framework developed from the control budget estimate and outlines an integrated business process adopted to ensure that the requirements of the investment proposal are met. The operational readiness framework, which addresses the transition process, will ensure that at operational start-up, all appropriate operating systems, procedures, information and legal requirements are in place, whereas the business integration process will aim to develop and sustain an organization with the appropriate infrastructure and workforce equipped with the necessary skills to meet Brakfontein?s requirement, and where possible embark on an optimized accelerated production initiative to ensure that the objectives of the investment proposal are sustained. Keywords: operational readiness, business integration, optimized accelerated production initiative, organizational development.

Jan 1, 2006

By F. M. Russell

Scheduling the extraction and rates of production for an underground mining operation is a common task carried out during the life of a mine, from the initial feasibility study through to the final production phase. The scheduling process can be complex when several requirements have to be satisfied, for example, match mill capacity and maximize net present value while constrained by mining sequence and availability of resources. Many mines have computer programs relevant to their operation but because they are site-specific they need considerable reprogramming to be adapted to other operations. Other methods currently in use also suffer drawbacks: manual spreadsheets are laborious, computerized spreadsheets cannot handle sufficient constraints, and operations research techniques require a complex mathematical model to be set up. The use of network analysis techniques has been proposed previously but the unavailability, until recently, of easily used computer programs has not allowed this approach to be developed. There are now many programs which can be used; however, the particular program which has been adapted to mine scheduling is Metier's 'Artemis-PC' running on IBM-XT or compatible machine. The use of network analysis offers many advantages, including the use of a logical mining sequence; activities can be as detailed as required; related activities can be readily incorporated, and costs can be easily extracted. A heuristic approach is necessary to optimize the schedule, but the ease and speed of program execution enables this to be readily achieved, while leaving the mining engineer in full control. The paper discusses the problems encountered in mine scheduling and current solutions. It then details the use of network analysis techniques and the application of the Artemis-PC program to solve mine scheduling problems.

Jan 1, 1987

By G. E. Blight

Many mines engaged in deeplevel gold mining in South Africa are experimenting with the use of tailings fills, or are implementing tailings backfilling programmes on a limited scale. The approach varies from mine to mine, depending on circumstances and available fill materials. Several mines are backfilling with a cyclone underflow product; the cyclone overflow is then combined with the balance of the tailings stream and directed to surface disposal. As the extent of backfilling increases, the proportion of the surface tailings stream composed of overflow material will rise, and the properties of the tailings requiring surface disposal will approach those of the cyclone overflow. As the latter will be finer, less permeable and possibly weaker than the total tailings currently being disposed, the design and operation of surface tailings dams will have to be modified. Dams may have to be designed with flatter outer slopes of a reduced maximum height. Lower rates of rise may be required and, as a consequence, larger disposal areas may be demanded. To offset the negative aspects is the fact that the quantity of tailings requiring surface disposal will be reduced. The paper explores the dam-building properties of two cyclone overflow products. It shows that although these materials are inferior in dam-building characteristics to the corresponding total tailings, their geotechnical proper- ties still fall within, or close to, the range of properties typical of gold tailings. Although the design and operation of tailings dams may have to be modified, existing technology is adequate to handle these changes.

Jan 1, 1988

By Piotr M. Kapias

Keywords: extraction, lead refining, Pb-Tl solutions, PbCl2-TlCl solutions. The theoretical part of the paper presents an analysis of the conditions of Tl extraction from Pb using different extractants and determines the activity coefficients in liquid solutions of Pb-Tl and PbCl2-TlCl. The dependence of the solution activity coefficients upon the composition and temperature is presented in the form of Krupkowski and Krupkowski-Fitzner equations. An analysis and evaluation were made of the influence of the methods of PbCl2 introduction into a Pb-Tl solution upon the efficiency of the Tl extraction process under thermodynamic equilibrium conditions. The analysis made it possible to formulate relevant equations describing the dynamics of the process of Tl extraction from Pb under stirring conditions as well as under the extractant injection into the liquid Pb-Tl solution conditions. In the part concerning experimental work, results are given for tests on the Tl extraction process from Pb-Tl liquid solutions of initial Tl content of approximately 0.05% mass using PbCl2 or, alternatively, Cl2(g) conducted in laboratorial scale. The tests made it possible to establish the influence of time, temperature, mass and the method of introducing the extractants into the liquid upon the level of Tl extraction from a Pb-Tl solution. Labels used in the text. WT1m - TI content in metallic phase, % mass WT1s - TI content in chloride phase, % mass wpTlm - TI content in metallic phase in initial state, % mass W°Tlm - TI content in metallic phase in equilibrium conditions, % mass m°m - initial mass in metallic phase mm - mass in metallic phase mPbC12 - lead chloride mass fed to the system MPbC12-TIC1 - mass in chloride phase MPb - lead atomic mass, g/mole MT1 - thallium atomic mass, g/mole K - Nernst distribution coefficient Xi - mole friction of solution component X°PbC12 - mole friction of PbC12 in saturated solution X°T1C1 - mole friction of T1C1 in saturated solution T - temperature, K R - gas constant, J/(mole K) k - kinetic equation constant, 1/(%-min.) ?i - solution component activity coefficient e - extraction rate, %

Jan 1, 2008

By C. Holck, J. Yarmuch, J. Read

"Steepening of slopes provides the means to reduce waste extraction and increase ore recovery in open pit mines; however, it may also adversely affect safety by posing a higher risk of slope failure. The implementation of slope monitoring programmes is recommended to manage this risk inherent in steeper slopes. In this paper, the design and evaluation of monitoring campaigns to measure subsurface deformation and groundwater pore pressure in open pit mines is presented. The monitoring programmes were applied to a theoretical case of an open pit mine designed using DeepMine software (BOAMine SpA, 2015). Mine plans were developed based on the initial base case scenario with monitoring programmes considered for four types of monitoring instrumentation: two established technologies, in-place inclinometers (IPIs) and vibrating wire piezometers (VWPs); one emerging technology, the ShapeAccelArray (SAA); and a novel technology under development, the Enhanced Networked Smart Markers (ENSMs). Technical and economic appraisals of the monitoring programmes and sensitivity analysis of the developed mine plans showed that using ENSMs spaced every 4 m had the lowest cost per unit of data gathered. IntroductionSeveral open pit mines have already exceeded their design life and, as they become deeper and reach depths over 1000 m, they face higher rock stress levels and tensile deformations (Stacey and Xianbin, 2004; Stacey et al., 2003). The more complex the conditions in modern open pit mines, the more difficult it is to achieve long-lasting, stable pit slopes and to meet the mine’s economic needs: maximize financial returns, minimize risks to operational safety, achieve optimal ore recovery, and minimize waste extraction (Stacey, 2009). Steepening of slopes provides the means to reduce waste extraction and increase ore recovery (Stacey, 2009; Calderon and Tapia, 2006; Bye and Bell, 2001; Jefferies, Lorig, and Alvarez, 2008); however, it may adversely affect operational safety, as steeper slopes are less stable than shallow slopes (Steffen et al., 2008; Mphathiwa and Cawood, 2014)."

Nov 1, 2018

By B. Gamble

Solid Energy's project evaluation process utilises a standard staged gate approach, with five levels leading ultimately to project execution (level 6). For a project to progress through each level, specific financial criteria need to be satisfied. Solid Energy primarily use value based (discounted cash flow) metrics to support investment decisions. Within this approach Solid Energy utilise a number risk-based techniques to quantify project uncertainty. This includes the use of risk-based probabilistic analysis using Monte Carlo simulation and probability-based scenario analysis. Figure 1 shows the net present value (NPV) cumulative probability. Project risks are identified through comprehensive risk workshops. The output of these workshops (list of key risks, ranges of uncertainty and probability of occurrence), is quantified within the financial models. Incorporating this risk information on a probabilistic basis allows an investment decision to be made with a robust knowledge of the range of possible project outcomes along with the likelihood (probability) of those outcomes occurring, for example 80 per cent confidence that the project value will be greater than NZ$10 M, 50 per cent confident it will be greater than NZ$50 M and ten per cent confident it will be greater than NZ$70 M. Incorporating risk implicitly into the financial analysis allows the business to easily evaluate/measure projects with different risk profiles. The detailed risk analysis does away with the complexity of arbitrary risk-based hurdle (discount) rates, as projects can be evaluated based on their specific risk characteristics. Whether a project will progress to the next level of investment and ultimately into implementation depends firstly on the value assessment in comparison with the associated risk/uncertainty, and secondly matching this with the businesses appetite for risk. At Solid Energy standard criteria are used for specific project evaluations, but in addition projects are considered on a portfolio or strategic basis also. Solid Energy attempts to maintain a mix of low risk (low value) projects with some high risk (high value) opportunities. The mix of projects must remain in line with the shareholders' risk appetite. One of the keys to a successful investment decision is ensuring that the appropriate information is available to decision-makers so that they may proceed with a comprehensive understanding of the risks and impacts associated with the decision.

Jan 1, 2007