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By A J. Tucker, L Bottomley

The principle objective of development mining is to create thoroughfares that can be accessed by personnel and machinery for the entire life of an underground mine. The drill and blast process, being the primary method used when creating these thoroughfares, needs to be able to adequately fracture the rock to be removed whilst at the same time minimising any damage that may be sustained to the rock surface that remains. This process of damage prevention is known by a variety of different names including smooth blasting, sculpture blasting, contour blasting and controlled blasting. Whilst the terms are different, the objective is the same and that is to reduce and better distribute the explosive charges to minimise stressing and fracturing of the rock beyond the neat excavation line. The process in this report will be referred to as perimeter control blasting. This paper will discuss the benefits of using perimeter control blasting in a development mining operation and the theories that govern how these blasting techniques work. The methods that are used to implement perimeter control blasting will also be addressed, paying particular attention to how these blasting techniques have evolved, spawning new and improved perimeter control products. Finally some attention will be given to the process of optimising perimeter control blasting in any underground mining operation.

Jan 1, 2005

By H Beucher

The uranium grade in roll front deposits is the result of successive processes that can be summarised in two steps. First a sedimentary phase, which gives the deposit support, then an oxidation-reduction phenomenon, which leads to the uranium deposit itself. In order to simulate such a deposit, it is important to mimic these different phases. The final aim of such a study is to localise the uranium itself and to reproduce the internal heterogeneity of the orebody in order to simulate the recovery process. The idea in this paper is not to reproduce a genetic approach but to consider the final image of the deposit. Three approaches are proposed. The first one consists of simulating the facies of the sedimentary deposit. The second approach reproduces the distribution of facies resulting from oxidation phenomenon (reduced or oxidised facies). The third approach consists of simulating the mineralisation at the interface of reduced and oxidised areas using the definition of a new data set determined by the grade values. At the end of each approach, the uranium grade could be simulated facies by facies according to the corresponding distribution characteristics. The plurigaussian method dedicated to random set simulations is well-suited for the facies simulations of deposits resulting from several sedimentary processes whether correlated or not. In this paper, the benefit of this method is demonstrated in an actual case study.

Jan 1, 2006

By L Wsrell

During recent years the iron ore industry has experienced a continuous consolidation trend following increased merger and acquisition activities. Analysing and evaluating these mergers is important in order to establish potential effects. The purpose of this paper is to analyse the price effects caused by the merger between Rio Tinto and North Ltd in 2000. The merger was cleared by the European Commission, as well as the Australian Competition and Consumer Commission, shortly after its announcement. The analysis will be conducted using a simulation model based on a proportionality calibrated almost ideal demand system, which uses the premerger situation in order to estimate the post-merger outcome. The relevant market is defined using shipments data. This is followed by the simulation model applied to the defined relevant market. The results show that the concentration on the market, given by the HHI, increases approximately 15 per cent, and that the market share of the new companyÆs reaches almost 20 per cent. Compared to the CommissionÆs assessment the results indicate a more concentrated market and thus a higher concern for possible competitive effects. Furthermore, the results suggest that the predicted average market price increase from the merger is 1.6 per cent. However, the merged firm is able to increase their average price by 5.1 per cent.

Jan 1, 2005

By W J. Shaw

Geometallurgical modelling is now a hot topic in deposit evaluation and in optimising mine performance; however, its history is long and varied. Historically metallurgical sampling has frequently suffered from a lack of data due to the cost of producing representative bulk samples. In the early 1990s geometallurgical modelling similarly suffered from a lack of data due to complex, time consuming and expensive sampling techniques. More recently, simple and relatively cheap tests for geometallurgical variables such as hardness, grindability, throughput, SAG power index, bond work index, crushing index, mineral recovery and concentrate grade have become widespread. The cheaper sampling has resulted in relatively large geometallurgical databases. However, most of the geometallurgical variables sampled are implicitly (and incorrectly) assumed to be additive when modelled by traditional geostatistical techniques, often leading to ill-informed and costly decisions. Geometallurgical variables are mostly non-additive so the current geostatistical challenge is to develop new approaches to dealing with this type of data. This paper briefly describes a historical case study of geometallurgical modelling of the George Fisher Pb-Zn mine completed in the mid 1990s, then outlines some of the current misconceptions of geometallurgical data and modelling techniques regularly applied to it, and finally discusses some recent developments in geometallurgical modelling, with examples from a number of current clients indicating the direction forward.

Jan 1, 2009

By P J. Hansen, D G. Franklin, M E. Trim, J V. Myers

The Northern Sewerage Project (NSP) is an upgrade to one of MelbourneÆs ageing, under-capacity trunk sewers. It will reduce the volume and frequency of wet-weather overflows to the Merri and Moonee Ponds Creeks and facilitate new housing developments in the northern suburbs of the city. A total of 12.4 km of tunnel and eight vertical access shafts will be excavated as part of the two project stages: Stage 1 (NSP1) will be owned and operated by Melbourne Water (MW) and Stage 2 (NSP2) will be owned and operated by Yarra Valley Water (YVW). The owners require the project to have a service life of 100 years, a requirement significantly beyond many of the current Australian Standards, which aim to achieve service lives greater than 60 years but are typically assumed to achieve 40 to 60 years. Because of the potentially corrosive natures of the external environment along the tunnels and the internal sewer environment, durability was a key concern for NSP1 and NSP2. Stringent specifications were applicable to the tunnel lining systems. This paper describes the corrosive environments impacting NSP1 and NSP2, explains the key design differences between the two stages and details the lining systems considered and selected to achieve the clientsÆ desired 100-year service life. The project design is complete and construction began in 2007.

Jan 1, 2008

By S Miller, A Neale

As part of a long-term acid rock drainage (ARD) mitigation study, PT Freeport Indonesia has completed the construction of a highly instrumented, full-scale, experimental, overburden stockpile to further evaluate the behaviour of the waste rock system at Grasberg mine. A total of 24 lysimeters, 30 sets of thermistor strings and 48 oxygen-sampling ports were installed at select locations during stockpile construction. ARD flow rates and chemistry have been recorded since the start of overburden rock placement in April 2000. Measurements of in situ temperatures and oxygen concentrations quantify reaction rates and the oxygen pathways that control oxidation kinetics deep within the waste rock profile. Direct field observations show the significance of advective oxygen flow with respect to the onset of oxidation kinetics. Oxygen measurements show that the rubble zone that forms at the base of a waste rock bench provides a critical pathway for oxygen entry to the waste rock profile. Furthermore, rapid oxidation as evidenced by measured temperature increases deep within the panels of waste rock is observed to occur. The observations presented in this paper provide critical insight for understanding the mechanisms and behaviour of full-scale waste rock stockpiles with respect to ARD generation. The results of this program will assist in the future selection, testing and evaluation of appropriate mitigation measures with respect to surface and face treatments to reduce long-term ARD generation. This project is a work in progress, and at least another two-years will be required to fully understand site-specific ARD generation and ARD mitigation mechanisms. This paper will discuss various design and construction considerations, provide an overview of results achieved to date, and some preliminary interpretation of what is happening within the overburden stockpiles.

Jan 1, 2003

By Denby B, Miles N. J

The underlying theory behind the construction of an on-line size analysis system is described together with an introduction to the Artificial Intelligent techniques that it is founded on. Previous systems based on more traditional technology such as edge detection and dilation algorithms have been restricted by the significant processing power they require, this has resulted in the production of systems with either reduced functionality or severe hardware requirements. A neural network approach offered a new perspective to the problem of size analysis; the ability of a network to learn and recognise subtle patterns in training data before on-line processing is initiated opened up the possibility for the production of a fully functioning practical system. The format of the training data had to be carefully analysed prior to its implementation in a neural network as the capability of a neural network solution depends as much upon a suitable data preparation as it does on the system architecture. To facilitate experimentation with various profile quantification techniques such as fourier and fractal analysis an Image Profile Analysis System was constructed (IPAS) in software on a personal computer. The IPAS system was produced with the aim of pre-processing image data to create data sets for experimenting with external neural network packages. The system allows the analysis of both real images obtained by image capture and simulated images created by an in-built in simulator. A measurement comparison scheme is also included together with a case study concerned with the frequency analysis of simulated images. The power of neural networks combined with the data compression provided by profiling removes the need for direct measurement of individual particles. This has obvious implications on the level of hardware necessary, and ultimately the expense of a stand alone system. The extrusive nature of data collection via an image analysis system will also permit simple installation of a shipped system; eliminating any requirement for interference with existing machinery.

Jan 1, 1995

By J Barnes

During September 2000, Nabalco management identified the need for a corporate system to deliver its key performance indicators (KPIs). In June 2001, a need was also identified to replace the existing metallurgical accounting system. After a review of the technologies available, the decision was made to develop the systems in-house, in preference to purchasing commercial software packages. This would allow much greater control over the structure, and provide for an iterative, concurrent development process between software and key business developers. This has proven invaluable in the development process. The purpose of the KPI system is to provide a unified reporting tool for all performance indicators. These indicators include production, safety, health and environment, personnel, costs, continuous improvement initiatives and opportunity losses. All of these disparate measurements are brought together into the KPI system and used to determine the performance for each department or area. The general principles of the balanced scorecard business approach (Kaplan and Norton, 1996) are applied to achieve a performance measurement for each area within Nabalco. The new metallurgical accounting system (MA) is a SQLServer database with web page and Excel interfaces. The database is structured around daily inputs of all measurements and calculations. The data is stored and adjustments and reconciliations can be made to this data as required. The focus is on accounting rigour, with all adjustments recorded in the database to allow for full auditing. The structure of the data focuses on the five input/output streams (bauxite in, caustic soda in, fuel oil in, residue out, and alumina out). In-circuit inventory provides a secondary measurement on which to check and calibrate the MA system. The KPI and MA systems were developed using Web technologies and are available to any internet-enabled device with Internet Explorer installed. This removes the need for software rollouts and user training. This will promote the wide use of the systems throughout Nabalco and Alcan.

Jan 1, 2002

The paper describes a simulating method.for ground water contamination originating from industrial and mining activrty. The finite difference model simulates heat, mass and solute transport. The applied stochastical method for dispersion provides more accurate solution of mass transport modelling. This method gives a more realistic approach of chemical processes in an aquifer depending on temperature.

Jan 1, 1988

There is a well-known saying, variously attributed to the great King Solomon and other sages of antiquity, to the effect that 'there is nothing new under the sun'. The inventive genius of man, as far as it is personified in the metallurgist, has often had the truth of this statement poignantly brought to mind when investigating the priority of ideas in its own particular branch of science. Not infrequently some operation, at first inilocently taken for a novel procedure, has later been found to have had an irrefutable precedent in the more or less remote past.When confronted by a question of this kind the metallurgist can generally much simplify his search if he at once turns his scrutinising gaze towards that ancient home of metallurgy, Germany. Vast departments of the smelting art have originated there, and even when Germany has not been in position to claim priority of invention, it has at least been characterised by a distinction equally as worthy - ie that of the faithful and authoritative exposition of the theoretical grounds on which the invention rests.In the present instance, in endeavouring to trace the history of pyritic smelting, the writer has naturally turned in the abovementioned direction, and not without some result, although the recorded data are, as might have been expected, meagre. A complete history of the art of beneflciating ores by means of fire, in all its many ramifications, still remains to be written. Possibly it may never be written, for the extent of the subject is tremendous. It is even practically impossible to clearly trace the development of one of its most modest sub-branches in satisfactory detail, or to present that branch without going to a considerable extent into related matters of a merely general character. For the purpose of dealing with the subject it will be convenient to divide it into two concurrent heads, and to distinguish, for historical reasons as well as for metallurgical ones, between that branch of the general method of matte smelting, which, until about 1891, has been called 'pyritic smelting', and the more recent offshoot of the latter, which, by distinction, may be called 'pyrite smelting'. The nature of pyritic smelting was clearly defmed by Dr John Percy in 1880, and his interpretation3 may be accepted as well known. To recall the characteristics of the method we may perhaps paraphrase Dr Percy's meaning by describing the process as a special method for the smelting of lean or dry silver or gold ores, which do not contain sufficient lead or copper for these metals to act conveniently as collectors of the precious metals. The operation is conducted in a blast furnace, with an amount of carbonaceous fuel sufficing to produce an exclusively reducing atmosphere, and with the addition of pyrites, in order to form a regulus in which the precious metals shall be concentrated, the pyrites themselves being either argentiferous, auriferous, or cupriferous, or any combination of these three, or wholly barren of metal values. In the common acceptation of the term, it is understood that the use of the reverberatory furnace is excluded.

Jan 1, 1994

By D Morris

This presentation discusses a water filtration technology termed Fabric Media that is somewhat novel to the Australian market place and reports several recent mining industry installations. Like many novel household cleaning products, the Fabric Media technology applies the science of active washable micro fibres as the means of capturing contaminant solid particles. The simple Fabric Media water filtration product offers several attractive attributes when compared to the more traditional media bed filtration processes such as sand filters, and barrier filters such as micro membranes. A micro fibre based filtration media enables both superior adsorption for the contaminant and wash ability. Stronger adsorption capture enables a much higher flux and greater solids loading density for the filtration task, meaning that lower cost and smaller footprint equipment is available. For Fabric Media water filters, a textile weave is selected that minimises the flow backpressure for a given particle size separation. Thus for an equivalent filtration performance this provides a much lower operating energy requirement, generally between 50 and 80 per cent less than for a sand filter. A Fabric Media is not abrasive to itself or to the filter tank. The filtration performance remains constant and predictable. The equipment life is much longer and the asset value of the new filtration equipment should maintain throughout the project life. Fibres are extremely mechanically robust and chemically inert. Fabric Media survives repetitive exposure to a rapid mechanical washing event providing high wash efficiency with minimum equipment off-line time for the backwash. Dislodging captured contaminants by a high-speed mechanical agitation enables a minimum off-line time during backwash events. The vigorous backwash destroys adhering flocculant and eliminates the formation of mud balls, which can permanently foul sand filters. The mechanical agitation wash of the Fabric Media water filter ensures complete removal of grease and biofilm, which can adhere and block a membrane surface. In comparison to sand filters and micro filtration membranes, the Fabric Media product is applicable to a significantly wider range of solids concentrations without permanent damage. The technology is very forgiving to excursion in plant control and is therefore considered a very operator-friendly concept.

Jan 1, 2006

In 1976, The Zinc Corporation Limited Broken Hill set up a plant to re-process a hill of tailing (Mt. Keast) from the original treatment operations. With the likely disappearance of this source of feed in 1985, an investigation was initiated to determine what other feed sources might be available. This involved searching through old records and photographs as well as a subsequent drilling campaign. The paper briefly covers the history of treatment operations and describes, as a result of the information obtained, the likely future sources of feed.

Jan 1, 1983

Recent work has shown that, in at least some instances of regional metamorphism, metamorphic diffusion has been restricted to such relatively minute distances (of the order of 1.0 mm and much less), that there is no clear, direct evidence of prograde metamorphic mineral reactions, and that metamorphic equilibrium does not appear to have been attained through even very small domains.A number of stratiform orebodies and their immediate metapelitic environments exhibit very large, seemingly "disequilibrium", assemblages of regional metamorphic index materials. One such, in north-eastern Australia, includes laumontite, prehnite, chamosite, stilpnomelane and related hydrous iron silicates, primary chlorite, sericite-muscovite, epidote, actinolite, biotite, almandine, andradite, metamorphic hornblende and clinopyroxene, scapolite, staurolite and sillimanite, all within a 20 metres length of a single diamond drill core. In this and several related occurrences it appears that metamorphism has involved very small scale in situ transformation of pre-existing materials rather than large-scale diffusion and reaction, and hence that the observed metamorphic minerals have probably been derived directly from precursor materials of sedimentary/diagenetic origin.It is concluded that the fluctuating seafloor interplay between warm, acid, concentrated hydrothermal waters with cold, alkaline, dilute seawater during stratiform ore formation, together with diagenetic processes, leads to the formation of a wide range of clay, chlorite, mixed-layer clay and clay/chlorite, and zeolite precursor materials and hence, later, to the complex assemblages of metamorphic minerals closely associated with some stratiform ores. Commonly included in highly localized assemblages of this kind are various minerals which, in conventional regional metamorphic studies, are generally regarded as indicating widely different grades of metamorphism.

Jan 1, 1982

By A S. M A Haseeb

Zircon is the second in abundance among the heavy minerals occurring in the beach sand along the coastal belt of Bangladesh. In this study a detailed characterisation of Bangladesh zircon extracted at the pilot plant of the Bangladesh Atomic Energy Commission at CoxÆs Bazar has been attempted using chemical analysis, X-ray diffraction and optical microscopy. From the chemical analysis it is found that Bangladesh zircon has a purity of 95.88 per cent. The main impurity in Bangladesh zircon is titanium oxide (3.01 per cent). This is followed by iron oxide (0.42 per cent). A number of other oxides are also found. Microscopic study revealed that Bangladesh zircon has an elongated, prismatic shape with pyramidal termination in about half of the grains while the rest are more or less rounded. Some fractured and irregular grains are also found. Bulk sample of Bangladesh zircon in the as-received condition shows a yellowish brown color. However, individual zircon grains are seen to be almost colourless and transparent under polarised light. XRD study confirmed good crystallinity in the sample. Under the microscope it is found that zircon grains constitute 94 per cent while total impurities amount to six per cent in Bangladesh zircon. This result agrees fairly well with the chemical analysis results. Microscopic study identifies oxides of titanium (both rutile and ilmenite) to be the main impurity, in conformity with the findings of chemical analysis. Further, monazite was also identified as an impurity under the microscope. An iron bearing coating is also found on a few zircon grains. Most of the impurities found in Bangladesh zircon exist as discrete minerals.

Jan 1, 2000

By Bevilacqua P, Preti U

The basic separation phenomena taking place in film concentration processes are studied through a kinetic-probabilistic approach. This approach is based on the fact that the particle velocity in the film separation phenomena is a random variable and may be defined by frequency distributions and probability laws. The approach requires: 1. development of probabilistic models for describing the behaviour of particles having different specific gravity and size along selected trajectories in the separating devices; 2. setting up an experimental procedure for determining the relevant frequency distribution curves at the exit of the separators for the particles mentioned above; 3. estimation of model parameters and model validation. In the paper, the model equations are given for the mass distribution of particles on the surface of separators, the mass distribution at the exits of shaking tables and the residence time distribution in channel type devices. The relation between residence time distribution and particle velocity distribution is derived. The test procedure has been defined and results are reported for the exit or residence time distribution in channels. A comparison between experimental and calculated frequency distributions is reported.

Jan 1, 1993

By F Sahlström, E M. Jolis, V R Troll, E Jonsson, K Högdahl, C Harris

"An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation. The Bastnäs-type magnetite-skarn-hosted rare earth element (REE) mineralisations are located in the Palaeoproterozoic Bergslagen ore province, central Sweden, and occur along a ca 100 km long belt of 1.90–1.87 Ga metavolcanosedimentary rocks. Ten different Bastnäs-type deposits have been sampled in order to assess the origin of ore-forming fluids in these systems. Magnetite and quartz have d18O values ranging from -2.3 to +1.1‰ and +7.2 to +8.3‰ respectively. Mineralised carbonates have d18O values between +5.8 and +7.2‰ and d13C values between -5.4 and -3.3‰. Temperature calculations based on the O-isotope composition of mineral pairs, combined with available fluid inclusion data, suggest primary mineralisation at ca 650–400°C. For these temperatures, calculated equilibrium fluids have d18O values that range from those typical of magmatic fluids (+6 to +8‰) to lower values (down to +3‰). Variation in carbonate O and C isotope data are consistent with interaction between local Palaeoproterozoic carbonate rocks (d18O = +12.5 to +19.6‰ and d13C = -1.8 to +1.7‰) and fluids of a magmatic origin. It is suggested that the Bastnäs-type REE-magnetite mineralisations formed as a result of reactions between local carbonate units and high-temperature, magmatic-dominated hydrothermal fluids during 1.90–1.87 Ga (Svecofennian) syn-volcanic activity.CITATION:Sahlström, F, Jonsson, E, Högdahl, K, Harris, C, Troll, V R and Jolis, E M, 2015. O and C isotope study of Bastnäs-type rare earth element mineralisation, Bergslagen, Sweden, in Proceedings PACRIM 2015 Congress, pp 439–444 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 18, 2015

By Fullagar P. K

In resource definition and mine development, major capital expenditures are committed on the basis of sparse information and even in production surprises such as bad ground are not uncommon. Drill holes constitute the principal source of information about the orebody and its environment and optimisation of drilling implies maximising the yield of useful information per dollar expended. Geophysical borehole logging provides new flexibility for optimising the drilling budget. Economic benefits can flow from geophysical logging at all stages of the mining cycle. The most commonly cited benefit is substitution of diamond delineation drilling with cheaper percussion or reverse circulation drilling in cases where geophysical logs can substitute for core. This approach can deliver an attractive direct saving in drilling costs (and time) if drill meterage is unchanged, or a potentially greater indirect benefit from better ore control if more holes are drilled within the original drilling budget. More ore contact intercepts per dollar can translate into lower dilution and enhanced ore recovery, thereby increasing revenue as well as reducing mining costs. Substitution of diamond drilling with percussion drilling is not always feasible. However, geophysical logging of diamond holes is often highly advantageous in its own right, both for geotechnical characterisation as well as ore delineation. Operational advantages of logging include data objectivity, speed of interpretation and reduced core handling and analysis costs. Geophysical logging assists mining engineers by providing a continuous measure of in situ rock strength, even over intervals with poor core recovery. The additional expense of geophysical logging in blast holes can be justified in terms of more accurate ore boundary delineation and rock strength evaluation. Precise ore boundary delineation permits refinement of charge placement, to minimise dilution and maximise recovery. Detailed knowledge of rock strength can enable optimisation of blast design. Rock strength can be evaluated in real-time via analysis of drill performance data recorded with measurement-while-drilling (MWD) technology. To successfully apply geophysical logging in mines, its technical, operational and economic viability must all be established. This entails verification of the existence of appropriate physical property contrasts, investigation of the best way to integrate the geophysical results with the mining method and an objective assessment of the value of the resulting mine performance benefit. Geophysical logging is already well established in many mining operations. The greatest impediments to its wider utilisation at mines are: lack of appreciation of geophysics by most mine geologists, engineers and managers; limited interpretational aids; and the necessity to re-enter completed drill holes. In this paper we endeavour to address these issues by informing mine geologists about potential applications of geophysics, by illustrating automated interpretation of geophysical logs and by highlighting the importance of emerging MWD and logging- while-drilling (LWD) technology.

Jan 1, 1997

By Tilley J. L, Chicu D

The development of the Yallourn East Field brown coal open cut has involved the adoption of novel investigational programs into coal qual- ity. For example, weighted average coal property statistics for key proper- ties are determined by using a unique blend of traditional and 3-dimensional geostatistical estimation. Predicted property values are made freely available from the mainframe computer in the form of kriged esti- mates of 60 000 tonne coal blocks. Geostatistical predictions are being incorporated within the Mincom/Intergraph CADD system which is used for mine design. Key properties relating to coal type, moisture, and ash have been evalu- ated to provide the required data for the design and operation of both the open cut and the power stations as well as the briquette plant.

Jan 1, 1989

By D Clarke, R Simpson

The Main lode in the Anwia Gold deposit is difficult to interpret due partly to the fact that three separate grid and drill hole orientations exist over the area and partly due to a lack of understanding of the controls on the high-grade mineralisation. Scattered high gold grades and multiple veining orientations add to the confusion. Sectional interpretations of the lode are often misleading due to the multiple orientations of drilling. Initial attempts to define a high-grade constrained geological model were not successful due to the inability to establish any geological continuity that would hold together in three dimensions. As a consequence the initial geostatistical domaining for the Main lode at Anwia comprised a simple broad mineralised envelope split by the weathering profiles. Subsequently an analysis correlating subjective qualitative logging information with grade plus utilisation of LeapfrogTM software, together with extensive geological re-interpretation resulted in the definition of a coherent high-grade shoot within the Main lode. The resource was re-estimated including this new domain as a high-grade hard boundary. Estimations on both models were carried out using uniform conditioning, which is a recoverable resource estimation methodology that estimates tonnages and metal above a series of cut-offs for SMU (selective mining unit) sized blocks. This paper compares the tonnages and metal contents that are calculated from the two estimation runs, both at a zero cut-off and a series of higher cut-offs. The results confirm that the estimation methodology has been implemented correctly as the tonnage and metal content at zero cut-off is the same for both models. The resource tabulations and grade tonnage curves predicted by the two models highlight the differences that can occur at higher cut-offs when realistic high-grade domaining is implemented. The results also reinforce the point that recoverable resource models are intended to address selectivity issues and are not substitutes for good geological modelling. Recoverable resource techniques, such as uniform conditioning, will not correctly estimate high-grade zones that have not been explicitly modelled.

Jan 1, 2006

Ok Tedi Mining Limited commenced construction in mid-1981 of facilities and infrastructure to mine and process gold ore at Mt Fubilan in Papua ew Guinea. Production ofgold began more or less on schedule in mid-1984 although design capacity is yet to be achieved. Due to geotechnical problems, two important items of infrastructure, hydropower and permanent tailings disposal, are not yet in place. Current low metal prices make it likely that copper facilities will be postponed.The deposit compriscs a leached gold capping overlying copper sulphide porphyry mineralisation containing significant gold and molybdenum. Mining is by open pit methods. The soft leached capping gold ore is ripped and dozed, loaded by hydraulic shovel and trucked to a dump pocket. After passing a large semi-autogenous mill of nominal capacity of I, I00 tonnes per hour, the ore is treated by the carbon-inpulp process, with a gravity circuit to recover coarse gold. The final product is 12 kg dore bullion bars.At present, all tailings are detoxified with hydrogen peroxide; after cycloning, the coarse fraction is stored, and the slime fraction discharged into the river system; expected environmental impact is acceptable. Investigations for a suitable dam site for a permanent tailings system are still underway.Peak 'I. hour power demand for Stage I is 17 MW, presently supplied by a diesel alternator power station and a 2 MW mini hydropower plant.Initial access to the base camp at Tabubil was only by air. Eventually a road was pushed through 134 km from the river port at Kiunga (where port facilities have been constructed) and a further 23 km to Mt Fubilan.Roads are constructed of compacted gravel and crushed limestone generally underlain by geofabric. Eight major steel bridges were built.The town of Tabubil has been established, including housing, airport, shops, offices, schools and all facilities.Environmental studies have been extensive and a detailed monitoring program is maintained. Ok Tedi Mining Limited is making considerable efforts to train Papua New Guineans and to foster local business.

Jan 1, 1985