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The O.K. deposit occurs within a belt of cherts and spilitised basic volcanics near the western margin of the Hodgkinson Province. The tabular to lenticular shape and gross conformability of the ore bodies; the common occurrence of colloform, framboidal and banded textures in the ores; the lack of significant alteration adjacent to the massive ore horizons and the apparent restriction of stockwork mineralization to the foot-wall side of the massive ore zone at the O.K. mine, all favour a syngenetic origin for the massive sulfide bodies. Furthermore, the micro- structural evidence suggests that the ores have undergone the same deformational history as the country rocks. The invariable association of the ores with spilites; the S isotope values and Co-Ni contents of the pyrites, together with the primitive metal assemblage (Fe, Cu, minor Zn) strongly favour a basic magmatic source for the sulfides. It is suggested-that the sulfides were probably precipitated sub aqueous- ly during a hiatus in volcanic activity. The O.K. deposit is of the cupreous pyrite variety, but unlike other well known occurrences of this type, it does not con- stitute part of an ophiolite complex. While the host volcanics exhibit strong ocean floor tholeiitic affinities, no associated ultra

Jan 1, 1978

By Li YQ, Yoon RH

The photoresponse of natural mineral pyrite and galena electrodes has been studied in aqueous solutions on freshly fractured surfaces (some fractured in situ) using moderate overvoltages. When fractured in situ, the electrode potential of both minerals instantly drops several tenths of a volt. Pyrite exhibits a spontaneous anodic photocurrent at fracture, which indicates upward band bending (depletion layer) on the n-type electrodes. The negative surface charge responsible for the depletion layer is believed to arise from a surface state that is intrinsic to pyrite surfaces, possibly modified by hydroxide ion adsorption. The flat band potential, Vty, of pyrite is at approximately -1.0 V (SCE) at pH 9.2 but to reach V(b, pyrite has to be cathodically decomposed. In contrast, galena assumes the flat band potential at fracture. Subsequent polarisation of galena at potentials positive of Vth produces an anodic photocurrent (upward band bending) and polarisation negative of Vro a cathodic photocurrent. Most of the galena electrodes studied were degenerate n-type and at potentials negative of Vtb, no cathodic photocurrents are observed, indicating the bands cannot be bent downward, consistent with the Fermi level at the surface merging with the conduction band edge near Vn,. Several were close to intrinsic, with the photocurrent changing sign near Vn,.

Jan 1, 1993

This paper presents results of the experiments carried out in Beth Energy No. 33 Mine for the purpose of alleviating problems associated with cutter roof. Cutter roof problems have delayed the advance of the entry development considerably and maintenance cost of these entries was very high due to the requirement of very extensive and heavy artificial supports. The study includes assessment of the problem, investigation of the geology and lithology of the mines, study of in-situ stresses and corrective measures to combat the problem. Two approaches were selected as the corrective measures: 1) implementing yield pillar concept in order to reduce the effects of in-situ horizontal stresses, 2) designing an effective roof reinforcement system and application procedure. Results of this study revealed that roof strata is weak and in-situ stresses are very high at the problem area which results in development of cutter roof. Implementation of yield pillar concept was found to be ineffective because cutter roof often developed at the entry face concurrent to the development. However, proper design and implementation of roof reinforcement system stabilized the roof and eliminated roof caving during both entry development and retreat of longwall face, despite existence of the cutter roof, at a much lower cost.

Jan 1, 1992

I know the theme of the Congress is "The 21st Century - Mining for Mankind" but I hope you will understand why my address touches upon some near-term issues as well. With the world oil market the way it is at present, "the long term" seems to be next week and no one is even sure what will happen tomorrow! So I am going to take a little licence with the theme of the Congress and talk about some fundamental issues that have much to do with the current uncertainties. The ways in which these issues are resolved and the role governments elect to play in the next few years will determine both the shape of the petroleum industry in the 1990s and beyond and the success with which we can confront a growing and inevitable future dependence on OPEC oil resources. But just in case you are not familiar with what has been happening in the petroleum industry recently and why the future seems more uncertain than ever, let me show you the gyrations in oil prices over the past 13 years, and remember that it is only another 13 years or so years to the 21st Century.

Jan 1, 1986

By Katsuyama K, Nag DK

Three aspects of rock mechanics, namely, in-situ stress estimation by acoustic emission (AE) method, strength of rock mass and role of chemicals to reduce the strength are covered. It is possible to detect the previously applied maximum stress by stressing a rock specimen to the point where there is a substantial increase in AE activity. This is known as Kaiser effect. From the AE signatures in the second and subsequent loadings, AE take-off point was identified more easily than in the first loading. In determining the compressive strength of rock mass, two factors have to be considered, namely, the size effect on the compressive strength of intact rock and the effect of discontinuities on the compressive strength of rock mass. Although a modified Bieniawski criterion gives best agreement with the triaxial test data, modifications have been suggested to Hoek-Brown criterion due to its popularity. It is possible to reduce the tensile strength of sandstone by saturating it with weak chemical solutions made with dodecyltrimethyl ammonium bromide, polyethylene oxide and aluminium chloride by up to 30%. In the case of compressive strength, there is no appreciable effect. The possible explanation is that the chemical solutions produce an effect on the strength of sandstone only when the failure mechanism is dominated by tensile mode.

Jan 1, 1998

By Myers I. A, Peters S. G, Bultitude R. J, Dowling K

Gold-quartz and antimony-gold-quartz veins in the Hodgkinson Province are hosted by subgreenschist to greenschist facies metasediments and show no spatial association with granitic rocks. They commonly parallel axial plane foliations or occur in brittle to brittle-ductile shear zones. Detailed mapping in the Hodgkinson goldfield indicates that vein systems are isolated in distinct structural and lithologic domains by post-mineralization faulting. Gold-quartz and antimony-gold-quartz veins have distinctive mesoscopic textures characteristic of the mesothermal vein environment. Some of the antimony-gold-quartz veins are located on domain boundaries which truncate the gold mineralization. In. some areas, tin and tungsten-tin mineralization which are spatially related to Late Palaeozoic granitoids appear to postdate the gold-quartz and antimony-gold-quartz mineralization.Oxygen and hydrogen isotopic studies of vein and alteration assemblages associated with these diverse ores provide constraints on fluid sources and have implications for the origin of mesothermal gold mineralization. The available isotopic data are consistent with a dominantly magmatic source for tin and tungsten-tin mineralization although there is evidence of a late-stage meteoric component in some tin-mineralizing systems. Although a distal magmatic contribution cannot be entirely discounted, the gold-quartz and antimony-gold-quartz veins were probably deposited from deeply

Jan 1, 1990

By S Wangchai, D B. Hastie, P W. Wypych, A P. Grima

Industries that handle and process ‘dusty’ ores are facing increasingly difficult challenges to ensure sustainable operation and development. Most existing dust-control measures treat only the symptoms of dust generation and do not deal with the root cause/s of the problem. Many of these methods are also relatively inefficient in terms of controlling dust emissions. This paper summarises the various existing options available for dust control and some of their features, advantages and disadvantages. It then describes some of the new technologies that are being researched, developed and employed to minimise dust emissions by addressing dustability or dustiness and the dust generation mechanisms found in industry. Recent research results and case studies are presented to demonstrate some interesting findings obtained from this work. With improved understanding and modelling of dust generation mechanisms and bulk material dustiness, it is possible to achieve a step-change improvement in the design, troubleshooting and application of more efficient dust-control technologies.CITATION:Wypych, P W, Hastie, D B, Wangchai, S and Grima, A P, 2015. Research and application of new dust control technologies for the iron ore industry, in Proceedings Iron Ore 2015, pp 529–536 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

Many block caving operations experience difficulties during undercutting, resulting in draw horizon damage, production loss and extensive drift repairs for the life of the block cave. This paper deals specifically with block cave undercut aims strategies, methodologies and management to avoid the problems indicated above.

Jan 1, 2000

By A K. Ghosh, J Chung, E Topal, M Asad

"Many open pit (OP) mines with considerable vertical extent are approaching the end of their life-of-mine; some of them are seeking the opportunity to make the transition from OP to underground (UG) mining. The decision on the best location for transition from OP to UG mining should be addressed at the strategic mine planning stage. Conservatively, the transition to UG mining is considered near or after the exhaustion of the reserve within the ultimate pit.However, if UG is evident and exclusively viable from the inception, defining the best location for the transition through a conservative approach may not be an optimal option to explore. This clearly establishes the need for a mathematical model that aims to maximise the project value and considers OP and UG mining with crown pillar (CP) requirement simultaneously. Underground mine layout varies from one UG mining method to the other, and consequently the variation in the location of transition is eminent. Thus, focus on the selection of UG mining method must be a part of this analysisThis paper presents an implementation of an integer programming (IP) based mathematical model that evaluates the changes in mining layout and the project value under possible variation in the transition point from OP to UG mining for stoping and block caving methods. An IP problem is a mathematical optimisation or feasibility method in which some or all of the variables are restricted to be integers. The outcome of the implementation reflects that mining strategies with OP transition to stoping and block caving methods generated higher values than OP-only mining strategy. The case study not only demonstrates the difference in mining layout for both stoping method and block caving method, but also reflects that a joint consideration of OP mining, UG mining and CP placement helps to achieve maximum project value and resource utilisation.Citation:Darbritz, J, 2016. Remediation of Wall Failure at Kalgoorlie Consolidated Gold Mines' Golden Pike Cut-back 2016, in Proceedings Ninth AusIMM Open Pit Operators' Conference 2016, pp 96–103 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Nov 15, 2016

By R G. Reddy, A Yahya

The sulfur distribution ratio (Ls) is an expression of the amount of sulfur in slag to the amount of sulfur in molten metal. The sulfide capacities calculated from Reddy-Blander (RB) model were used to calculate the sulfur distribution ratio (Ls). A new Reddy model for sulfur distribution ratio (Ls) was developed for modelling Ls for ironmaking, steelmaking, and secondary steelmaking conditions. Besides calcium oxide, the major component in the ladle furnace (LF) slags is alumina. The Ls was calculated for typical LF slags as a function of temperature and composition. The model calculated Ls values are in good agreement with the experimental and industrial slags data. The extremely low oxygen potential in these furnaces after fully-killed steel is favourable for desulfurisation. For any given slag’s composition and temperature, its sulfide capacity can be calculated a priori. The equilibrium sulfur distribution ratio between this slag and liquid metal in a particular vessel can also be calculated a priori. The Ls for ladle furnace (LF) slags is about twice those for blast furnaces (BF) slags and ten times those of basic oxygen furnace (BOF) slags. The desulfurisation of pig iron in BF and desulfurisation of steel in LF during secondary steelmaking are recommended. Steel desulfurisation in steelmaking furnaces is not effective. Since the model used to calculate the sulfur distribution ratio (Ls) is a priori, it is a useful tool for the iron and steel makers in improving the product quality and optimisation of the industrial furnace operations.

Aug 21, 2024

A brief history of the significant haulage truck feature changes and the factors that influenced those changes during the 60's and 70's provide a basis for forecasting the changes that can be expected in the 1980's. A review of the impact factors and changing requirements that currently exist that will create changes. Define the critical requirements of a successful haulage truck design and discuss the availability of bigger engines and better electric drive componetry to provide deeper pit capability and improve reliability. The Unit Rig Trolley Assist System to provide improved productivity and diesel fuel savings and an economic analysis to evaluate the Trolley System is covered. The Unit Rig Automatic Truck System for a driverless truck is covered in concept and discussed from the point of view of the experience in a test in a New Mexico mine. INTRODUCTION A good basis for trying to forecast what is going to happen in the future is to go back a little bit in history, to see what the influencing elements were in different periods of time as a foundation for the forecast. INFLUENTIAL FACTORS IN THE 1960'S If you look at the truck development that occurred in the 1960's, there were some identifiable factors that give us insight. (See Fig. 1) Several things happened at the beginning of the 1960's. Mechanical drive haulage trucks were introduced that were

Jan 1, 1982

Mining of the Martha Hill epithermal gold deposit via open pit methods will excavate a pit to 15 m below sea level. Regular geotechnical evaluations of pit slopes have taken place. Details of the various components of these evaluations, including geological structure, material strength, and groundwater, are covered. Pitwall geological structures are represented clearly on pit floor grade control maps with the dominant sets being steeply dipping strike fractures. Cross cutting shears are common. Material strength is reflected by the oxidation status of the hydrothermally altered host rocks, with weaker material occurring in partially oxidised ground. Regional groundwater is generally high, particularly on the north-eastern side of the pit, where it has been little affected by de-watering. Geological structures appear to control the flow of groundwater in the proximity of pitwalls and require draining by the introduction of horizontal drains. An overview of pit slope design is given. Slopes are designed for overall slope stability, allowing for the occurrence of minor interbench failures.

Jan 1, 1991

By A I M Ritchie

The pyrite oxidation rate is a process central to both the performance of bio-oxidation heaps, used in the pre-treatment of some refractory gold ores, and to the levels of pollution in acid rock drainage (ARD) from pyritic waste rock dumps. A goal in bio-oxidation heaps is to achieve high oxidation rates in the heap as a whole. In comparison, one way to mitigate the environment impact of ARD, is to reduce the overall oxidation rate in the waste rock dump since pyrite oxidation is the primary pollutant generation process. In both bio-oxidation heaps and waste rock dumps the overall oxidation rate of the pyritic material (the intrinsic oxidation rate) at these sites. Much research has been conducted over the last 40 years or so on the oxidation rate of pyritic material with particular emphasis on the catalytic role played by bacteria. More recently mathematical models and field measurements have clarified the extent to which oxygen transport rates are rate limiting, what the dominant oxygen transport mechanisms are and the physical properties of the heaps which have most impact on these transport rates and on the overall oxidation rate. How the performance of bio-oxidation heaps can be optimised and how the pollution load in drainage from waste rock dumps depends on gas transport mechanisms is briefly reviewed. The sensitive of the overall oxidation rate in bio-oxidation heaps and waste rock dumps to details of the intrinsic oxidation rate is quantified.

Jan 1, 1994

ILZRO sights are locked securely on the targets of the expanded applications and ever-improving quality in the major market for zinc-coated steel. A wide range of ILZRO-sponsored research projects examine issues of formability, paintability, and corrosion resistance for traditional hot-dip galvanising, electrogalvanising, and ILZRO's own proprietary zinc coating, Galfan. Recent research has focussed on the on the interaction between Galfan and different substrate steels to determine optimum combinations for different applications. ILZRO enjoys an evolving role in providing the connection between research laboratories and marketing divisions through supporting research and services for the Galfan Technical Resource Centreò(GTRC) and the recently formed North American Galfan Development Authority (NAGDA). GTRC has just produced a new problem-solving manual that provides a comprehensive source of hands-on solutions for the many Galfan licensees throughout the world, and should contribute substantially to the reputation of Galfan as a consistently top-quality steel-coating product. Meanwhile, NAGDA is advancing the market with new advertising for Galfan based on superior corrosion-resistant qualities proven through ILZRO-sponsored research. Practical manufacturing issues remain at the forefront of ILZRO priorities, with research emphasis on cutting and welding zinc-coated steel to provide direct assistance towards improved product quality and a more secure market. Moving to the arena of die casting, when the specifier looks to zinc to fill a design need, ILZRO-sponsored research projects provide comprehensive documentation on metallurgical characteristics for every zinc alloy under almost any imaginable application. On-going ILZRO-sponsored research is integrating this wealth of data with sophisticated computer programs that model die-casting designs with ever-increasing accuracy, as other ILZRO projects lay the market groundwork for zinc in applications ranging from vibration damping to electromagnetic shielding.

Jan 1, 1993

By T Raynlyn, J J. Campbell, R J. Holmes, J R. Manuel, S P. Suthers, A Poliakov

Prediction of the downstream processing performance of iron ore needs detailed information on mineral composition, textural peculiarities, particle density, porosity, mineral liberation and association and mineral grain size. Optical image analysis and automated iron ore texture classification systems are a way of obtaining such information. Furthermore, this information can be used for predicting the output of specific processes and their combinations. Several examples of the application of such an approach to process performance studies for iron ore are discussed. These include the application of classification by ore texture to modelling and optimisation of hydrocyclone performance, the effect of including textural information in modelling of sinter properties, and combining textural information with an experimental study of stirring and ultrasonic treatment of haematitic-goethitic iron ore fines to understand the deportment of fines and the breakdown/deagglomeration of particles. In all cases, the availability of textural information is important and helps provide a better prediction of process performance and/or understanding of the unit process.

Jan 1, 2008

By R L. Brathwaite

The rocks of New Zealand can be grouped into three main elements: the Early to Mid Paleozoic Western Province, Late Paleozoic to Early Cretaceous Eastern Province, and several overlying Late Cretaceous to Cenozoic sedimentary basins. The Western and Eastern provinces were formed on or near the margin of Gondwanaland, whereas the Late Cretaceous to Cenozoic sedimentary basins developed after the separation of New Zealand from Gondwanaland in the Late Cretaceous.   The Early to Mid Paleozoic Western Province rocks are exposed in Nelson, Westland and Fiordland and include metamorphosed sandstone, mudstone, limestone, and volcanic rocks, intruded by granite batholiths and maficultramafic igneous complexes. The main associated mineral deposits are gold-quartz lodes hosted by Paleozoic greywacke and argillite. Other type of deposits present include: volcanogenic massive sulphide lead-zinc; vein and greisen tungsten and tin; and magmatic nickel-copper sulphide, platinum group element, and magnetiteilmenite deposits. Granite stocks and batholiths, intruded during the Cretaceous, have associated porphyry molybdenum deposits.   The Late Paleozoic to Early Cretaceous Eastern Province includes the greywacke rocks forming the axial ranges of the North and South islands, and a belt of schists in Marlborough, the Southern Alps and Otago. The schists host many shear-zone related, gold-quartz lodes and, in the Southern Alps, lenses of serpentinite with talcmagnesite and nephrite jade. Volcanogenic massive sulphide copper deposits and volcanogenic manganesechert deposits, occur in both the schist and greywacke, and a belt of Permian age ultramafic rocks (Dun Mountain Ophiolite) has associated copper, chromite and chrysotile asbestos deposits.   The Late Cretaceous to Cenozoic rocks are found in a number of sedimentary basins onshore and offshore of the North and South Islands. Many of these basins developed during the rifting of New Zealand from Gondwanaland in the Late Cretaceous. They contain New Zealand's economic petroleum, coal and limestone deposits. Uplift and erosion of the mountain ranges shed gold into rich placer deposits in the South Island.   From the Miocene, volcanic rocks feature prominently on the eastern South Island (e.g. Banks Peninsula southeast of Christchurch and the Otago Peninsula northeast of Dunedin) and northern North Island (Northland and Hauraki), and volcanism continues today in the Taupo Volcanic Zone. The North Island volcanic rocks have associated epithermal mineralisation, mainly gold and silver, but also copper, lead, zinc, mercury, and antimony, as well as deposits of sulphur, perlite, pumice and zeolite. Porphyry copper style mineralisation is associated with subvolcanic intrusive rocks. Erosion of the volcanic rocks has shed titanomagnetite onto the west coast of the North Island forming significant coastal placer deposits. Similarly, erosion of the Alpine schists in the South Island has resulted in placer ilmenite deposits on the coast of Westland.

Jan 1, 1997

By K Saito, M Hasegawa

Removing sulfur and phosphorus from molten iron can be expressed by the following reactions, respectively. [S]Fe + (O2-)slag = (S2-)slag + [O]Fe [P]Fe + (3/2) (O2-)slag + (5/2) (FeO)slag = (PO43-)slag + (5/2) Fe(liquid) These equations indicate that desulfurisation and dephosphorisation have opposite oxygen potential conditions. If a small amount of desulfurisation slag not removed is carried over to dephosphorisation process, the reaction of sulfur mentioned above proceeds toward left hand resulting in increasing sulfur content in molten iron. For better understanding of such re-sulfurisation reaction in hot metal pre-treatments, the present study aimed at evaluating the effect of iron oxide on the sulfur distribution ratio between slag and hot metal. To measure sulfide capacities and FeO activities simultaneously at temperatures below the melting point of pure iron, CaO-SiO2-FeO and CaO-Al2O3-FeO ternary molten slags were brought into equilibria with copper-iron-sulfur liquid alloys, and the equilibrium oxygen partial pressures were determined with an electrochemical technique involving the stabilised zirconia solid electrolyte. The experimental results showed that the sulfide capacity increased with an increase in FeO content, and this trend was consistent with the fact that FeO was basic. Although the addition of FeO raised the FeO activity and oxygen potential, the calculated value for sulfur distribution ratio between slag and hot metal increased with increasing FeO content.

Jun 19, 2024

By J E. Everett

Ore selection is generally a highly subjective task, with emphasis on producing product with a consistent target grade matching a perceived market requirement. A composite selection criterion ‘Comp’ (a linear function of the grade vector) can be used to maximise ore tonnage at a specified target grade (in Fe and contaminants) extractable from a block model. The blocks correspond to the selective mining units, with grades interpolated from diamond drill hole data. An iterative procedure has been developed to identify the coefficients and cut-off value for the composite function ‘Comp’, maximising potential ore tonnage at target grade.Commonly, target grade is predetermined by marketing; however, there is no guarantee that maximising ore tonnage at a specified target grade maximises the potential value of the mine. If the value of ore could be expressed as a linear function of the grade components, then these coefficients would be appropriate for the selection criterion ‘Comp’. The cut-off value for ‘Comp’ would correspond to the marginal cost of production; all blocks with a ‘Comp’ score above the cut-off would be classified as ore; and the cumulative grade of these ore blocks would be the average product grade over the life of the mine.Unfortunately, no such value function for iron ore is generally available. Methods for estimating the value function are discussed, using the spot price and sensitivities based either upon operational tolerances for Fe and the contaminants or upon published price differentials. This approach has been applied to an anonymous Pilbara deposit with about one million blocks averaging 1.1 kt. It is shown how the optimal target grade, cut-off grade and maximum tonnage can all be explored as a function of marginal cost and iron ore price. Alternatively, given marginal cost and an iron ore price, the effects of changing the tolerances (and therefore the relative costs of the contaminants) can also be explored.It is suggested this procedure can enable informed decision-making for an iron ore mine. Rather than setting final policy for the entire life-of-mine, the method enables target grades and tonnage estimates to be revised by re-computation as the mine life proceeds to recognise changes in market conditions and knowledge about the resource.It should be emphasised that this paper is concerned with ore selection rather than ore sequencing. Appropriate ore selection is a necessary but not sufficient condition for maximising value. Having identified the set of blocks that potentially maximise value, the sequence in which they are mined will present a trade-off between producing at constant grade and extracting high value ore early. The sequencing issue is not considered here. It is shown that optimum ore selection for an open pit mine is independent of any consideration of discount rates, although ore sequencing will depend upon the time value of money if the product grade is to vary across time.CITATION:Everett, J E, 2015. Ore selection to maximise value, in Proceedings Iron Ore 2015, pp 443–448 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

My roots span four generations. My great grandfather, Christian Frederick Fisher, along with twenty-one others was drowned in the New Australasian mine disaster at Creswick in Victoria in 1882. My grandfather, also named Christian Frederick Fisher, escaped and then followed a career of shaft sinking for large companies and operating small mines (very unprofitably according to my father) when funds allowed. My father, an excellent practical mining and mechanical engineer, was also a small miner and my early entry into the industry was, like many before me, very basic. My introductions to the business end of a No. 4 shovel, drilling with hand steel and later with jack hammers without the benefit of airlegs, feeding heavy cordwood to hungry boilers and felling trees for mine timber soon dispelled any illusions I had that mining was a bed of roses.Before it became well known I knew "Life was not meant to be easy".In a family-owned small gold mine in a remote part of Cape York Peninsula in far north Queensland I was fortunate in obtaining an excellent grounding in reef and deep alluvial mining. Operating in vertical and underlie shafts the variable ground conditions often required close timbering. Steam pumps were used underground and steam winders for hoisting.The complete absence of municipal or government infrastructure in this remote mining field threw responsibility on each mine operator to be self-sufficient, and responsible for mine development and installation of crushing and milling equipment, accommodation and water supply. Conditions, although harsh, were acceptable in the 1930s, and fostered great self-reliance.The first crushing from our Black Cat Mine in 1935 returned nearly 200 oz from 10 tons of ore. Gold was then worth $13 an ounce compared to about $400 an ounce today; but in those depression years of the 1930s our operation was profitable.This basic education not only returned dividends when confronted with difficult mining problems, but created a deep respect for the miners who develop the small mines and who continue to contribute to the industry today, often under difficult conditions.Australia and mining are synonymous. The industry has been immortalised by the famous historian, Professor Geoffrey Blainey, in his book "The Rush that Never Ended".Initial gold discoveries were concealed and exploration was frowned upon by authority as being disruptive to early rural development. But with the discovery of gold in the Bathurst area of New South Wales by Hargreaves in 1851, the rush to the gold fields began followed by an influx of migrants. The traumatic effect on industry and society that followed, created the pattern of the love-hate relationship that at times became temporarily submerged, but is so evident today.In the harsh economic climate of the 19th century with low wages and no welfare, the opportunity to wrest riches from the earth was literally "rushed" by the adventurous, the poor, the rich, people from all walks of life. Pressures developed on preFederation Governments to provide law, order and infrastructure to the rushes that have never ended.

Jan 1, 1984

The basic model for the evaluation of any coal-bearing property is the cash flow projection, the major components of which are operating costs, capital charges, taxation and revenue. A range of cash flow projections can be produced by varying the assumptions which underlie the operating costs, by assuming various forms of capital funding, by making assumptions as to future taxation and by speculating upon the present and future market value of the product. As for any model, the informational inputs and assumptions are vital because, no matter how sophisticated the processing, the informational inputs and assumptions cannot be improved by it. That is to say, the validity of the output (the total evaluation itself) cannot be of greater certainty or significance than that of the inputs. The total evaluation can of course be expressed in a number of ways such as the Discounted Cash Flow (D.C.F.) Rate of Return, the Net Present Value or, the Payback Period. The foregoing statement may seem trite. However, it is necessary to be clear about it so as to avoid unnecessary complication and a preoccupation with techniques as opposed to the informational inputs and assumptions. So far as techniques are concerned, much has been written and said about them during the last decade. Most of us have heard, if not always understood, something about probabilistic models, Monte Carlo simulation, sensitivity and risk analysis to say nothing of inflationary costing and the relative merits of developing cash flows in terms of current or constant money. Those techniques have their value, particularly if they can serve to illuminate conclusions which could not be reached on a simple and even perhaps on an intuitive basis. I am, however, reminded of one major coal mining project in which 20 or more major variables were identified, many cash flow projections were run on the computer and a detailed sensitivity analysis was carried out. The major conclusion reached was that the D.C.F. Rate of Return was predominantly sensitive to variations in selling price and operating cost. Of course, the funding and fiscal elements of a cash flow projection have to be dealt with as rigorously as possible. However, in the development of any coal property, capital requirements and taxation are, in part at any rate, dependent upon the assumed operational parameters. If the latter are misjudged, the whole evaluation process is deeply affected. The same is true of revenue, in the sense that, the positive cash flow is a function of output as well as selling price and again, misjudgements about achievable and maintainable levels of production also deeply affect the final evaluation. I shall try to underline the fundamental influence of the technological factors upon lead times, capital costs, operating costs, taxation, funding and the achievable and maintainable levels of production. In turn, these affect the whole question of coal property evaluation and indeed, the likely success or failure of any coal mining venture. I make no apology therefore that this paper does not set out to discuss the more esoteric aspects of the evaluation process but rather, directs attention towards some of the informational inputs and assumptions which merit clarification and discussion.

Jan 1, 1975