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By J Ledgerwood

Namakwa Sands is a mineral processing company based on the West Coast of South Africa and is solely owned by Exxaro Resources Limited. Mineral ore is mined and processed, concentrated and both chemical and mechanically upgraded before being sent for electrostatic and magnetic separation units. The final high value mineral products report as Zircon, Rutile and Ilmenite.The recovery of non-magnetic material is largely dependent upon a number of factors, including but not limited to dew point, ambient temperature, feed rate, mineral size distribution, specific gravity and mineral content in head feed. One important limiting factor to recovery in typical dry mill operations is the particle size distribution of the feed. Variance in the particle size has catastrophic consequences for recovery. This is the reason for this study. Until recently large variances in non-magnetic production were viewed to be a function of machine operation. This view was later rejected with the feed size distribution determined as the major driver of low recoveries, for Namakwa Sands orebody 50 per cent variance in particle size distribution can be noticed within one day. This is because of the successive mining blending techniques employed.The predicament is that the two modes were so closely placed together that recovery of a single mode is almost impossible without the consequence of greatly reducing recovery. The second mode was found at 125 µm while the first was at 90 µm. Interestingly, for the mentioned feed type a cumulative size distribution of a unimodal feed type is almost exactly the same as for a bimodal size distribution. Thus a plot of cumulative size distribution will show no difference due to the modes being so close together. This is the reason why this phenomenon was not noticed before.The study also found that, using an high tension roll (HTR) or rare earth roll, a fine stream with a single mode at 90 µm versus a coarse stream with a single mode at 150 µm would yield completely different results interms of yields. Larger conductive particles are thrown from the roll while small particles loose charge faster (entrainment). Results in terms of the bimodal size distribution show that even though 25 per cent of the feed type is greater than 150 µm the yields followed a similar pattern to that of the coarse particles rather than that of the majority (75 per cent) fine particles. This confirms what was published by M Ziemski and P N Holtham in 2005 on charge decay rates; they mentioned that particle bed effects played a major role in recovery.

Oct 5, 2011

By B Roache, J O’Brien, M Gray

Admixture use in cement products is commonplace in the construction and mining industries. Many Australian mines have an operational concrete batch plant and stock hydration control and water reducing admixtures. The benefits of admixture use, especially in shotcrete is understood and well documented. Cemented rock fill (CRF) is used to fill stope voids and create stable vertical and undercut surfaces at some Australian mines. These mines generally mix rock fill with a slurry of cement and water without the use of admixtures. Recently published work on optimisation of CRF mixes has mainly focused on the strength increases associated with changes to the mix grading proportions by the addition of fines, but not focusing on the potential benefits of admixture use. Admixture use in CRF may be the simplest CRF optimisation method, as the admixtures will often be added by the push of a button at the batch plant. A CRF testing program was undertaken to test the benefits of admixture use in terms of strength gain, using hydration control additives (HCA) and high range water reducer (HRWR) admixtures. Rock fill gradings were strictly controlled in the test process to allow clear definition of the difference admixtures provide in compression at 28 days. The testing results define admixture associated strength gains in a 6 per cent general purpose (GP) cement by dry weight CRF mix (131 kg of cement/m3). Costings have been developed to allow a mine operator to understand the cost benefits of admixture use in CRF due to reduced operating costs. Operational efficiency advances and a suggested admixture implementation plan for CRF optimisation is offered.

Nov 29, 2022

By C Li, K McDonald an, T Nicholson, C Brown

The relative reactivities of chars prepared from different coal samples at temperatures in the range 500 to 1150¦C were determined by measuring the rates of metallisation of a standard ilmenite concentrate. The results have been interpreted in relation to different measured physical and chemical properties of the chars. Char reactivities were found to correlate with the maximum specific surface area (SSA) of the chars, obtained from plots of SSA versus temperature. Weathering of coal samples gave higher reactivities which correlated with higher SSAs. Experiments using recycled chars showed that the high internal SSAs developed during earlier reduction reactions provide no benefit in terms of increased metallisations. The important role of char hydrogen contents in controlling low temperature metallisation rates was demonstrated. Chars prepared from different rank coals had the same hydrogen content when prepared at the same temperature. Ilmenite metallisation rates had a linear dependence on the hydrogen content of the chars. Large differences in the slopes of the metallisation versus H2 content curves for different chars were interpreted in terms of SSA variations and catalysis of the gas reactions by dispersed metallic iron particles in the chars. A simple test based on magnetic separation of the char was shown to give an indication of enhanced reactivity due to contained metallic iron.

Jan 1, 2001

By P J. Howard

Atlas Iron Limited’s McCamey’s North project lies at the eastern end of the Hamersley Basin, approximately 50 km east of Newman, Western Australia, and 3 km northeast of BHP Billiton’s Jimblebar Mine. The presence of significant surface iron mineralisation identified during field reconnaissance, has subsequently been further defined by detailed mapping and RC drilling.The project area is dominated by outcrops of moderate to steeply north and south dipping banded iron formation, cherts and shales of the Boolgeeda Iron Formation overlying rhyolites and rhyodacites of the Woongarra Volcanics. In lower lying areas recent colluvium and alluvium mask the Archaean geology. Drilling and downhole geophysics has allowed a composite stratigraphic section to be compiled through almost the entire Boolgeeda Iron Formation.Surface orientations and subsurface stratigraphic correlations using natural gamma logs indicate large scale open folding about east-west trending fold axes across the project area; while small scale tight to isoclinal folding with similar fold axis orientations are visible at the outcrop scale. These folds are cut by a number of moderate to steeply south-dipping normal faults defining a series of north-dipping fault blocks which repeat the stratigraphy across the project area.Bedded iron mineralisation consists mainly of haematite-martite and goethite ores with best results of 78 m @ 60.5 per cent Fe. Vitreous goethite is observed at the surface of the mineralised horizons. The mineralisation exhibits a strong stratigraphic control and extend down-dip up to 120 m below surface. The strike extent of the mineralisation is still to be determined. An inferred resource of 39 Mt at 58 per cent Fe has been defi ned to date (ASX: AGO 3 February 2011).The fi ndings at McCamey’s North indicate that there is potential for economic iron mineralisation to exist in other areas of Boolgeeda Iron Formation within the Hamersley Basin.

Jul 11, 2011

By Snowden D. V, Standing C. A, Ryba A, Bywater A

McKinnons open pit gold mine, located within the Cobar Basin in New South Wales, is characterised by complex mineralisation controlled by the intersection of steep faults in the hinge zone of an anticline. Resource estimation using indicator variography and indicator kriging was based on RC drilling on 25 in sections together with grade control RC drilling on 12 in by 12 in and 6 m by 6 in patterns. Rigorous sampling and checking procedures were used to verify the reliability of the drill hole data. Blast hole data was used to assist grade control in defining ore block boundaries.

Jan 1, 1997

By M A. Harrington-Baker, J M. Trudnowski

Sulfate-reducing bacteria (SRB) have the ability to immobilise dissolved metals by precipitating them as sulfides, provided that a favourable biochemical environment is created. Such an environment includes the presence of sulfate, anaerobic conditions and the availability of organic carbon. If such conditions are engineered within a reactive barrier or field-bioreactor, most metals can be effectively removed. To demonstrate this concept, three passive SRB field-bioreactors were constructed in 1998 at an abandoned mine site in the vicinity of Butte, Montana, USA to treat acid mine drainage with characteristic elevated concentration of metals and low pH. Performance of the field-bioreactors, using aqueous samples, was monitored over 32 months until the project was terminated, field-bioreactors were decommissioned and solid matrix sampling of the reactive matter was performed. The most important analytical results are presented in this paper together with conclusions regarding the appropriateness of the field-bioreactors construction features. Only Zn, Cu, and Cd were being removed as sulfides due to SRB activities. Changes in concentrations of other metals (Fe, Mn, Al, As), which do not necessarily precipitate as sulfide, seemed to be affected by SRB only in an indirect manner by responding to increased pH caused by SRB activity. An innovative cellular containment system used for placing organic matter worked very well in preventing settling of the organic matter and ensuring uniform flow of AMD throughout the entire cross-section of the organic carbon with no preferential flow paths This demonstration was funded by the US EPA and was jointly administered by the EPA and the US DOE under DOE contract number DE-AC22-96EW96405. The project was implemented by MSE Technology Applications, Inc, Butte, Montana, USA.

Jan 1, 2003

By R Morrison, R Dunn

In many mineral processing operations, the reported production figures for an accounting period may not make the best use of available data. While most of the mathematical approaches, such as check-in/check-out, mass balancing, used in effective metallurgical accounting strategies are well understood, the sources and magnitude of measurement errors generally are not. As part of the æAMIRA P754-Metal Accounting and ReconciliationÆ project, a study was undertaken at the Northparkes copper/gold concentrator near Parkes, New South Wales to examine the data used in their concentrator metallurgical accounting system. This paper summarises the results of a detailed examination of the mass measurement systems around the concentrator as well as the primary sampling system used for grade estimation. The goal of this work was to develop practical techniques to quantify the error (ie both accuracy and precision) of the measured metal accounting information. With this information, statistical confidence levels for this data can then be calculated. If the errors are small, the effect of error in each piece of measured data can then be propagated to other calculated production figures such as recovery and feed grade using a statistical technique called æthe propagation of errorÆ.

Jan 1, 2007

By J W. Dong, Y M. Li, J L. Tian, Z H. Jiang

Electroslag remelting is widely used to produce various special steels, mainly because of its ability to provide high cleanliness and excellent homogeneity of ingot. Undoubtedly an optimal slag plays a key role in removing inclusions and enhancing the mechanical properties of a specific special steel. In order to improve the metallurgical performance of the slag in electroslag refining of die steel, a variety of slags have already been developed using traditional trial-and-error methods. Nonetheless, these slags may not be inherently optimal for the specific requirements of actual die steel refining processes. In this work, we have designed a CaF2-CaO-Al2O3-SiO2-MgO quinary slag system using genetic algorithms method aiming to remove the existing large size inclusions (D and Ds type) in high quality die steel. The comprehensive effects of five components (CaF2, CaO, Al2O3, SiO2 and MgO) were studied based on existing fundamental theory. The slag composition was screened considering the parameters such as melting point, electrical conductivity, calcium ion concentration, and appropriate viscosity etc. Furthermore, the candidate optimal slag was applied in the industrial production of die steel by electroslag remelting method. The detection results indicate that majority large inclusions (D and Ds type) have been successfully removed, showing significant advantage to traditional slags. This result has demonstrated the genetic method to be efficient and reliable. In addition, depending on the personalised demand of other steel and alloys, this method allows for the adjustment of the screening frameworks and processes to develop the candidate optimal slags. This method has not been reported previously in the field of electroslag composition design, and compared with the traditional trial-and-error method, the new method will save a lot of time and experimental costs.

Jun 19, 2024

By R Sinclair, D Landwehr, I Hunter

"The Syama Gold Mine, located in southern Mali, was established in 1990 by Broken Hill Propriety Limited (BHP). The operation began treating oxide, and in 1994 it transitioned to processing hard and refractory ore based on ‘whole-of-ore’ roasting. In 1996, BHP was succeeded by Randgold Resources and the operation ran until 2001, when it was placed into care and maintenance.The Syama ore is classified as a double refractory ore with pyrite occluding the fine grained gold present in the ore and high levels of organic carbon presenting a challenge in terms of preg-robbing behaviour. The ore is extremely competent and this combination of metallurgical features was the main source of metallurgical problems encountered by the previous owners.Resolute Mining Limited (RML) acquired the Syama project in 2004. Following a feasibility study and the development of a revised processing flow sheet the plant was recommissioned in 2008 using a combination of old and new equipment. The revised flow sheet enabled primary sulfide ore to be treated by flotation and roasting of the concentrate to produce a calcine suitable for conventional carbon-in-leach (CIL) processing.Commissioning and ramp up of the plant was a troubled process, with monthly gold production being as low as 3000 oz in 2010. Poor availability of equipment and lower-than-forecast recoveries were the primary contributors.During the last five years, RML has utilised a systematic approach to improve production, focusing on mechanical reliability, metallurgical recovery and process bottlenecks. Modifications to the circuit have been as a result of both innovation and the application of technological improvements. Improvements have been made to the flotation, roasting and CIL circuits and RML has introduced a deslime circuit to treat flotation concentrate, in addition to the very successful commissioning of a new 1 Mt/a oxide circuit in December 2014. These changes have resulted in gold production increasing to more than 20 000 oz per month in 2015.This paper presents the processes, change implementation and outcomes of the modifications made to the sulfide circuit to address the availability and recovery problems.Apart from the expansion of an existing, world-class deposit and discovery of new resources, future improvements on the path to a class-leading gold mine include the continued reduction of the unit cash cost, increase in overall sulfide circuit gold recovery, increased throughput through continued innovation and consistency in the plant’s operation.Citation:Sinclair, R, Hunter, I and Landwehr, D, 2016. Syama Gold Mine - the Journey towards a Class-leading Gold Mine, in Proceedings 13th AusIMM Mill Operators’ Conference 2016, pp 213–224 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Oct 10, 2016

By K C. Runge, E Tabosa, A Jankovic

Flotation recovery in geometallurgical modelling is usually predicted based on relationships developed from batch flotation testing of different ore types. These batch flotation tests are usually performed at a constant set of operating conditions and at a fixed feed grind size P80. Usually the laboratory feed grind P80 is that which is expected to be produced in the full-scale flotation circuit for that particular ore type.Flotation recovery will be a strong function of the valuable mineral particle size distribution, with lower recovery of ultra-fines due to poor flotation kinetics, optimum recovery for the intermediate sized particles and lower recovery for the coarser particles due to poorer liberation of this fraction. This valuable mineral particle size distribution is not characterised by the solids P80 parameter alone. The proportion of material in each class will also be a function of the slope of the size distribution and the degree of preferential grinding of the valuable mineral in comparison to the total mass of the ore.This paper will demonstrate (through example) how these other size distribution parameters can change with a change in grinding technology, the size and operating conditions used in a grinding unit and the characteristics of the classification technology used in conjunction with the grinding unit. Case studies will be presented that demonstrate how this can result in these parameters being very different in laboratory testing to that produced in the full-scale comminution circuit. A rule of thumb that laboratory rod milling rather than ball milling produces a size distribution most similar to that of the full-scale grinding circuit will be challenged. These differences can result in a significant change in flotation recovery. It is therefore important to consider these parameters when developing a laboratory geometallurgical program, to enable more accurate prediction of the flotation recoveries that will be achieved in the full-scale process.CITATION:Runge, K C, Tabosa, E and Jankovic, A, 2013. Particle size distribution effects that should be considered when performing flotation geometallurgical testing, in Proceedings The Second AusIMM International Geometallurgy Conference (GeoMet) 2013 , pp 335-344 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 29, 2013

By B Beamish

The concept of a ‘critical velocity zone’ in the longwall goaf environment for the development of a spontaneous combustion event has been supported by numerical modelling. However, there is no experimental data available for Australian coals to show ventilation effects on the self-heating incubation behaviour of broken coal in the longwall goaf. A preliminary study using incubation testing has been completed on three high volatile bituminous coals (A, B and C) with R70 self-heating rate values of 3.86°C/h, 3.15°C/h and 2.09°C/h and moisture contents of 11.3 per cent, 3.9 per cent and 4.7 per cent, respectively. Mass to flow rates used in the adiabatic oven reaction vessel have been selected to be indicative of a sluggish, natural air leakage and medium ventilation environment. Under a sluggish ventilation flow rate all three coals incubate to thermal runaway in minimum time frames of 2.8–3.1 years, 34–42 days and 79–95 days, respectively. When the ventilation flow rate is increased to natural air leakage, coal A with the highest R70 value and highest moisture content selfheats to 28°C above mine ambient temperature before heat loss takes over due to moisture evaporation. However, both Coals B and C at this flow rate incubate to thermal runaway in a shorter time frame than under sluggish flow. At the medium ventilation flow rate, only Coal B incubates to thermal runaway, albeit after a significant extended period of time. These results show how important it is to determine the heat balance between the coal intrinsic reactivity (as indicated by the R70 value) and moisture content. The results also have implications for the possible location of the ‘critical velocity zone’ and subsequent hotspot development and migration.

Oct 12, 2022

By E Garbarino, P Molina, V Badino

Given the ever increasing quantity of construction and demolition waste (C&DW), one of the most challenging issues presently facing policymakers and public administrators in Italy concerns how to organise and manage collection and recycling and to understand whether and to what extent recycled aggregate can complement natural building aggregates in a sustainable supply mix (SSM). The paper presents the results of a research aimed at analysing energy and environmental implications of the C&DW recycling chain in the administrative territory of Provincia di Torino in northern Italy. In respect of a population of about 2.25 million inhabitants, the annual production of C&DW in the area under study is 1.8 Mt. A combined geographical information system (GIS) and Life Cycle Assessment (LCA) model was developed, paying attention to the geographical location, land use, transportation network and avoided landfill: crucial issues for sustainable planning and management. Around 90 recycling plants were classified according to the size, typology (stationary, semi-mobile and mobile) and physical- mechanical characteristics of the recycled aggregate. Under different assumptions relevant to the delivery distance, and considering the typology and grade of recycled aggregate, as well as local availability of natural aggregates, it was possible to evaluate the geographical coverage of aggregates demand and to use LCA in order to identify and quantify energy and environmental indicators.

Jan 1, 2009

The optimisation and validation of shearer cutting methods is a time consuming engineering task. Many different parameters, of which not all can be controlled, can vary. The easiest solution, to increase the installed power and the longwall length, is not always the best. A different cutting method can increase the capacity without the need of new machines. The Department for Mining and Metallurgy Machinery at RWTH Aachen University therefore developed ProSL, the simulation tool for shearer and longwall operations. ProSL enables the engineer to create his own cutting methods and compare it with other methods. Machine-data can easily be varied to see the impact on the method. The research shows that sophisticated longwall methods increase the productivity of the system. The paper presents the results of the calculation with ProSL and shows how higher efficiency and lower costs can be achieved.

Dec 6, 2010

By Hoskings R

Conceptual studies of the run of mine stockpiling and reclaiming requirements com- menced in 1975. Final selection of equipment was made in 1978 and the equipment was commissioned in June, 1979. Equipment selection was made after extensive investigation and visits to existing facilities throughout the world. The equipment selected is described and com- pared with the alternatives. Foundations were designed to minimise clean up effort and to ensure stability of equipment under design wind loading without storm bays. Program- mable logic control enables the stacking and reclaiming facility to provide a blended feed to the coal preparation plant.

Jan 1, 1980

Gold rooms represent a high security area and preventing theft is a challenging task. Where gravity concentrates or high value unit intermediate products are present, particular and specific security procedures must be put in place. This paper describes the development and implementation which reflects best practice in gold room security. Procedures involving key holder systems, key locks, swipe cards and double locks preventing any one person having access to the gold room, including specific procedures for gravity gold concentrators, will be addressed. The use of monitoring and how to deal with alarms and potential hold ups will be reviewed. The use of cameras and archival DVD recorders is common in gold rooms. The use of electronic surveillance, movement detectors, seismic monitors and the two person policy and gold room entry procedures are described, including how to deal with visitors. The importance of confidentiality regarding smelting and gold pick-up days, plus strategies employed to minimise storing large quantities of gold on site will be presented. The role of metallurgical accounting in providing quality auditable information and the minimum standards of record keeping required is discussed. The role of the Gold Squad will be outlined. Regular auditing and risk analysis and several case studies are cited where security was deficient or improved.

Aug 1, 2010

By R Pinksen

The Iron Ore Company (IOC) of Canada Mining and Operations Departments expressed an interest in reducing the amount of oversize material (>1 m × 1 m × 1 m) being produced and its subsequent downstream effects including in-pit sorting and reduction, damage to mobile equipment, and significant delays in the loading pockets and the primary crushers. To achieve this goal an oversize reduction project was undertaken by the mine and to date has significantly improved upon baseline measures.One key approach used to reduce the amount of oversize was the implementation of thicker emulsion. The introduction of a thicker emulsion into the blastholes provided more resistance to the forces created by dynamic water and reduced the infi ltration of the emulsion into the cracks and fissures of the rock mass. Blast results showed reduced amounts of oversize and more consistent fragmentation throughout the muck piles. Additionally, a significant reduction in nitrates leached into the mine water discharge has been realised.To determine the effectiveness of the oversize reduction project, IOC used shovel based camera technology to assess fragmentation presented to the shovel at the digging face. A digital vision system (DVS) was installed on one of the shovels to capture images that were stamped with global positioning system (GPS) locations. A large population of digital images was analysed to produce a robust fragmentation distribution baseline that was used as one of the mine key performance indicators (KPI). Changes to blasting practice were subsequently measured against the baseline KPI to assess effectiveness.

Jul 11, 2011

By B K. Da, S A. Balaji, G P. Roy, T K. Dutta

The raw material handling complex at the Durgapur steel plant provides iron ore, crushed coke and flux to two sinter plants. Either some facilities were not envisaged or not properly designed before the project stage which caused problems during operation of the plant. The absence of an in situ roll turning facility, used to increase maintenance activities for disassembly, transportation of rolls to central machine shop and assembly of rolls, led to decreased crusher availability and increased activities for the maintenance crew. The provision of a smaller vibro feeder/screen in place of a suitable sized screen caused jamming of the screen deck, adversely affecting screening efficiency and the crushing index of crushed coke. Some design modifications and developmental work was undertaken, such as the development and installation of an in situ roll turning facility in the existing limited space, achieving low feed (0.1 - 0.2 mm/rev), lower cutting speed of 30 - 40 m/minute for 350 BHN hard roll, which was also a difficult engineering challenge to bring within the tolerable limit of vibration. This was successfully achieved. Modifications to the screen deck, introduction of differential speed crushing and modification to the vibro screen and vibro feeder for uniform distribution of feed have been incorporated. These innovative design modifications to the in situ roll turning have led to a drastic decrease in maintenance activities and an improvement in the crushing index. Modifications to the screen have resulted in the elimination of jamming and improved screening. Modifications to the vibro screen before the primary crushers and to the vibro feeder before the secondary crushers have prevented excessive wear in the central portion of rolls, ultimately leading to increased roll life. Incorporation of differential speed crushing has resulted in an increased crushing index and decreased generation of micro fines. All the above modifications have led to distinct improvements in equipment availability, increased roll life and a decrease in maintenance activities and improvement in crushed coke granulametry, ultimately resulting in improved productivity and quality of iron ore agglomeration at the sinter plant. The innovative design modifications mentioned above are discussed in detail in this paper.

Jan 1, 2005

By A Dal-Corobbo

Traditional acid and metalliferous drainage (AMD) wastewater treatment focuses on the iron co-precipitation/adsorption process as this is a very effective method of reducing heavy metals, including copper, lead, zinc, arsenic, etc, to parts per billion (ppb) levels in AMD wastewater streams. One of the drawbacks to this method however is the large volume of sludge produced and subsequent disposal costs for the mine site concerned.A proprietary metals treatment system called high density sludge (denoted HDS) which significantly reduces the quantity of waste generated is described in this paper. This process generates a dewatered sludge that contains in the order of 50 to 55 per cent solids. This sludge is denser than conventionally dewatered sludge, which typically contains only 20 to 30 per cent solids. This advanced process has a wide range of applications and can be easily retrofitted into existing AMD treatment systems. It has been successfully installed at several mine sites to treat AMD wastewaters. This paper discusses the high density sludge process, its benefits and provides data and operating results from pilot test installations.CITATION:Dal-Corobbo, A, 2013. High-density sludge process for treating metal bearing acid and metalliferous drainage wastewaters, in Proceedings Water in Mining 2013 , pp 217-220 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 26, 2013

By A Salama, J Greberg, B Skawina

In today’s underground mass mining, the orepass is an important part of the infrastructure as it connects two or more mine levels and is used for conveying or storing large amounts of material. One of the main risks related to an orepass is when operational or structural failure occurs, leading to long-term loss of functionality. Developing or rehabilitating an orepass when major failure has occurred is a time-consuming and expensive operation, and the risk of a long-term orepass loss motivates the development of alternative transportation strategies to ensure the continuation of smooth operations in large underground systems. The study presented in this paper has been done at the Loussavaara Kiirunavaara AB Malmberget mine in Sweden, where iron ore deposits are being extracted using sublevel caving. The study analyses the transportation system in one of the mine’s orebodies using discrete event simulation, with a focus on maintaining ore transportation in the event of the loss of an orepass.CITATION:Skawina, B, Greberg, J, Jonsson, K and Salama, A, 2016. Orepass loss mitigation approach in Malmberget mine, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 617–622 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

A broker relies heavily on mineral valuations and independent experts' reports to provide the fundamental information, both technical and commercial, which provides the basis of estimating the sharemarket value of securities and underlying assets. It is important to appreciate the significant variance that can occur between the market value and other types of valuation at a particular point in time. In general, most experts' reports and valuations seek to provide estimates of technical/fundamental or ""fair"" value which correspond to the Corporations Law and accounting standards requirements. They do not usually attempt to estimate (stock) market values and it is usually and quite correctly the broker's task to estimate market values on the basis of a technical appraisal and consideration of all other commercial, market and financial influences. Therefore ideally, an independent experts' report or information memorandum will include material relating to commercial and management aspects of a company as well as detailed technical reviews and fundamental valuations. Wherever sensible cash flow projections can be made, cash flow-derived valuations, usually based on discounted cash flow (DCF) calculations, remain the preferred valuation methodology. Brokers in general would not argue with this preference. However, there is a paucity of examples of valuations where alternative methods are applied as a check on the reasonableness of a DCF-based estimate.

Jan 1, 1994