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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

There are a number of different mechanisms by which wetlands can immobilise the metals in mine drainage. Here, the biogeochemistry behind four of these mechanisms (adsorption, biological uptake, precipitation as oxyhydroxides, and precipitation as sulfides) is discussed from the perspective of sustainability. Moreover, treatment wetlands are considered as part of a larger system, also taking into account the source of the drainage and various aspects of the receiving waters. The biogeochemistry of different metal immobilisation mechanisms in wetlands determines what kind of drainage can be treated with success, and it also places an upper limit on the amount of metal that can be removed from the water phase per unit of time. This has important implications for the design of treatment wetlands, perhaps particularly in colder climates. A thorough understanding of the prevailing biogeochemical processes is essential when attempting to establish treatment wetlands after the closing of a mine. If a wetland is to be used as a sustainable æwalk-awayÆ solution, the anticipated change in treatment efficiency over time (as pollutants accumulate in the system) must be considered in relation to the expected changes in drainage quality. It is also important that the total metal immobilisation capacity of the wetland is not exceeded and that the integrity of the system is maintained, in order to minimise liberation of previously immobilised metals.

Jan 1, 2003

By Wu Y, Qu Q

The Central Coal Mining Research Institute has developed the MAE acoustic emission monitoring system, the BD4-1 portable acoustic emission monitor and the MRB rock burst monitoring system. In the MAE system there is an IBM-PLAT, a receiver and 16 channels and the investigating range is 100 m. The main functions are detecting acoustic events from the working faces, periodically making statistics, prints, displays and storing of the results, and performing the off-line process such as drawing the curves of acoustic activity. The BD4-1 instrument has four channels, it works for more than 24 hours continuously, and keeps the data for more than 30 days after power tum-off. The BD4-1 is suited to the monitoring for a long or a short time as a fixed point where the system is invalid, especially to the monitoring of the acoustic activity promoted by the blasting. There is an IBM-PC/AT, a receiver and 16 channels spread 10 km in the system MRB. The system could on-line collect microseismic events throughout the whole mine, calculate the source location and the energy, and off-line draw the seismic activity draft of time-based or distribution in space. In practice, the forecasting is successful by using the acoustic emission and microseismic monitoring system and the portable instrument.

Jan 1, 1991

By B Tessier

Checking the quality of a blast may be considered as subjective. Checking this quality will require measuring objective parameters. One of them is the resulting fragmentation of the blasted product. Numerous fragmentation æmeasuringÆ systems have been developed and marketed, based on image-processing. This presentation of FragScan will illustrate advantages and difficulties when using such a system. FragScan is essentially defending a policy of large and representative sampling. The purpose is to show how fragmentation is discriminating both productivity and profit of quarry operations on a blast-by blast basis. The next step will then be to ædriveÆ the blasting process to reach a æbetterÆ fragmentation. Other applications require the fragmentation as an essential result: this is the case for large boulders used in structure-reinforcement. Several case-studies have shown that FragScan can be used for quality-control, checking size-distribution of the product according to the requirements of the end-user. Only clear thinking about the precise use of such a æmeasurementÆ will further the success of this task.

Jan 1, 2001

One of the most difficult places to ventil ate in any mine is the working face area of an advancing mine heading. With an ever changing configuration, continual modification and extension to the ventilation system is necess- ary to maintain an adequate supply of fresh air and to control mixing and recirculation. Methane emissions and high dust levels as coal is broken and removed from the face area can produce unhealthy and dangerous conditions if ventilat- ion is not adequately monitored. An understanding of the air flow patterns which develop through use of different face ven- tilation systems can be reached by undertaking underground measurements or through observations using physical models. Tests undertaken by the author to determine the adequacy of different system-configurations are discussed together with approaches adopted by others working in the United States. Various new methods have been proposed for improving face ventilation beyond that sustained using conventional brattice curtain or tubing systems. The adequacy of some advances adopted by mining companies to improve ventilation while maintaining output efficiency is discussed.

Jan 1, 1983

By Lauricella P. F, Hendri D

In the Mesel sediment-hosted disseminated gold deposit, the spatial distribution of hydrothermal alteration is controlled by steeply dipping faults and shallowly dipping lithologies. Hydrothermal alteration of carbonate rock is characterised by decalcification, dolomitisation and silicification. Intense argillic alteration occurs in a laccolithic andesite intrusion adjacent to decalcified and silicified carbonate units. Sulphide minerals (pyrite, realgar, orpiment, stibnite and cinnabar) accompany hydrothermal alteration and precious metal mineralisation. The trace elements Ag, As, Sb and Hg are zoned spatially throughout the deposit. Mesel contains a mineable gold reserve of 7.8 million tonnes at 7.3 g/t Au. Gold mineralisation is preferentially localised in carbonate rocks adjacent to and beneath the andesite intrusion. The ore body consists of a central, near-vertical, high grade "feeder" system flanked by tabular, inward dipping, moderate grade "ouflow" zones. Mineralisation is controlled predominantly by two steeply dipping faults with high grade (>10 g/t) gold zones centred about structural intersections and fault splays. Gold is submicron size and locked in very fine grained (

Jan 1, 1995

King Island is situated at the western approach of Bass Strait and approximately mid way between Victoria and Tasmania. The scheelite orebodies lie within the south east of the island. Ore bearing horizons from 10 m to 40 m thick occur in south and east dipping stratiform deposits. The orebodies occur in skarn formed by contact metasomatic replacement of carbonate rocks by granite intrusives. The scheelite is deposited as fine disseminated grains in and along the margins of andradite garnets in the skarn. King Island Scheelite operates two under- ground mines from which 350 000 tonnes per year are obtained. The Dolphin mine produces almost two-thirds of the total. See Figure 1. The Dolphin orebody lies beneath the sea and an area of reclamation. The orebody is inter- sected by zones of major dislocation. A chequerboard post pillar cut and fill stoping system has been chosen to provide the necessary support to the hanging wall. Because the stability of the pillars is critical to the economic welfare of the mine, considerable attention is given to the reduction of overbreak.

Jan 1, 1977

By Muir D

A review of the various methods of degrad- ing cyanide either from gold processing liquors or electroplating baths is presented with some discussion on their relative merits or problems. Whilst alkaline chlorination is common practice in many U.S. and Canadian plants it poses particular problems for certain plants. Alter- native methods include electrolysis, hydrolysis and air oxidation with activated carbon as catalyst which are also integral steps in the carbon-in-pulp process. A basic study of the degradation of cyanide ion has been carried out therefore to determine the effect of temperature, oxygen and carbon. It is shown that carbon is an excellent catalyst for degradation by air and likely to lead to higher losses of cyanide in a C.I.L. circuit. Degradation by hydrolysis is important at high temperatures and high pH such as employed in the Pressure Zadra or Anglo elution processes. Carbon catalysed degradation of cyanide by oxygen in effluent streams may be an environmentally acceptable alternative to conventional chlorine degradation.

Jan 1, 1987

Blasting is known to be both an important and an easily quantified cost factor in rock breaking operations. However, the indirect costs and benefits of the blasting operation are not easily determined due to the irreversibility of the mechanisms involved and the multiplicity of influencing factors. A general conceptual model showing the relationship between blasting and mining costs is well known, but serious attempts to address the critical real relationships have all floundered on the fact that not enough is yet known about either detonation physics or blasting effects. This can only be remedied to the extent that blasting instrumentation enables researchers to pin down not only the relationship between the detonation process and its impact on a particular environment, but also the downhill costs of handling the rock, repairing any damage and building in "Safety Factors" to provide for imponderables. It is vital to standaraize on specifications for instrumentation and measurement techniques and there is a need to review what has been achieved in blasting expertise so as to focus on the most fruitful paths for future work.

Jan 1, 1990

There is an established need for an inflow of foreign capital if New Zealand is to meet projected growth rates. The Government recognises this and encourages capital inflows especially where there are allied economic benefits such as the access to specialised know-how or export markets. The Government has promulgated certain Regulations which are administered by the Reserve Bank. Under the Capital Issues (Overseas) Regulations 1965, consent is required before any company incorporated overseas can commence business in New Zealand or before an overseas person can borrow or raise any money in New Zealand. A New Zealand company is deemed to be an overseas person if more than 25% of the voting power is held by non-residents. In terms of current policy, overseas companies are permitted to borrow in New Zealand only a limited amount of working capital and some longer term capital calculated on the ratio that their New Zealand owned equity capital bears to their overseas owned equity capital. Wholly owned overseas companies are expected to bring all of their Fixed term capital from overseas.

Jan 1, 1971

Exploration requires a lot of skill, technical knowhow, and money; the money is usually less painfully available when provided by a profitable cash flow of an existing organisation that has income against which exploration cost is deductible. Planning the financing for development of a proven resource should begin at the earliest stages even while the mining plan is being formed up. The character of the participants has a bearing on the nature of the financing "package" and the structure that is to be selected for the venture. The security for borrowers in a remote mining resource is no better than the capacity of the participants to bring that resource to profitability in line with the findings of a thorough feasibility study. Taxation considerations related to the structure selected and the timing of the cash flow are of vital importance. Sales contracts have generally been a basic requirement of institutions financing mineral mining projects. Clauses relating to price, price escalation, and currency var- iations, are key factors in those contracts. Initial contracts have generally been required to cover initial overall costs.

Jan 1, 1974

By Kyle J. H, Misra V. N

The most recent development in gold processing is the increasing use of heap leaching for the extraction of gold from low grade ore, and old tailings dumps. The reason for this trend is mainly to do with economics. The advantage of heap leaching is the considerable saving in both capital and operating costs. However, not all ores are amenable to heap leaching. It is only applicable to well oxidized ores that have suitable permeability char- acteristics, and the gold recovery is poorer than by conventional process. In this study, an attempt has ben made to ascertain the heap leaching characteristics of Western Australian gold ores on the bench scale using multiple, appropriately sized leach columns. The influence of particle size, flow rate, column depth and leaching time on the rate of gold extraction was determined. The percolation rate of cyanide leaching solution was deter- mined with and without gypsum additions. Efforts were also made to minimise particle segregation, fines migration and solution channelling during leaching, so as to improve solution percolation, gold extraction rate and recovery.

Jan 1, 1991

By McMahon D

The approach to valuations at the Normandy Poseidon Group is a measured and methodical process that utilises skills sourced from a number of different disciplines. Whilst being subject to a strict set of guidelines, it is also sufficiently flexible to be able to cope with the considerable variety across the resources industry. The group uses Discounted Cash-Flow (DCF) techniques extensively in order to develop a base valuation. Other external factors (eg the market) are, however, also taken into account when forming a view on value. Other methods of valuation are used in tandem or as alternatives depending on the task. DCF techniques are an important tool but would never be used in isolation. Considerable care must be given to developing the DCF analysis as its components (eg discount rate) are prone to misuse. Whilst the valuation process is quite detailed and scientific, it is really only as good as the inputs or assumptions (technical, financial, etc) that are used. The methodology used remains consistent whether the group is undertaking the corporate planning process or making an acquisition.

Jan 1, 1994

Accident control has been a pre occupation of progressive industrial and mining companies for many years but few have attempted more than direct injury control. In recent years, particularly in North America, analyses of accident costs have shown that material damage resulting from accidents is usually of greater economic significance than injuries and this has led to the concept of loss control. Loss control is an attempt to take the emphasis off injury prevention and to concentrate on the basic factors which affect both the health of the individual and of the company. The deterrent to greater acceptance of this philosophy has been the apparent diffi- culties of implementing a loss control programme but Associated Minerals Consolidated Limited has adopted a simple approach. It has had a minimum disturbing effect on normal operations because existing systems have been modified to provide the new information required. It is suggested that the programme outlined is applicable to other mining ventures and is a practical method of providing benefits for both the company and its employees.

Jan 1, 1975

A major problem with many items of underground equipment is that they have either been converted or adapted from surface equipment, or that they have been designed and assembled in comfortable offices and factories with adequate lighting, specialised tools, and ample space. As soon as they are in use underground in cramped spaces maintenance frequently becomes difficult, parts are awkward to change, and a whole range of accidents can happen.Similarly, ingenious operators discover a whole range of uses for which the equipment was not designed, such as using a loader bucket for a work platform, or scaling backs with it.Design modifications of equipment and removal of hazardous components that can trap limbs is expensive when the dangers are discovered in operation, sometimes posthumously, and it is not surprising that workers compensation insurance premiums are high. The cheapest place to ensure that equipment is safe is in the design office, where the operator should be considered first, rather than being added to a purpose built machine as an afterthought.

Jan 1, 1992

By Muir DM

In recent years, significant improvements have been made in the design and operation of carbon-in-pulp plants. Some of the major developments in plant operation and technology are reviewed together with an outline of the research being undertaken in Western Australia. The main problems facing operators include the understanding and control of carbon fouling and regeneration, and the recovery of gold from the carbon. It is shown that carbon fouling by a variety of agents, particularly cyanide, calcium carbonate and silica, cause a significant loss of kinetic activity which in turn leads to poor plant performance. The importance of acid washing and adequate thermal reactivation is discussed. Although the Anglo elution procedure is commonly used in South Africa its use in Australia in preference to the conventional Zadra elution procedure is likely to be re- stricted because of its demand for high quality water. Solvent elution by the recently developed Micron procedure using refluxing methanol, ethanol or acetonitrile vapours is an attractive alternative. This elutes gold in 4-6 hours and provides concentrated gold solutions suitable for simplified gold recovery steps.

Jan 1, 1984

By I Kolomaznik

Each technological process can be reduced on the transport networks, and namely on the parametric networks and the non-parametric ones. The parametric networks are created by the piping, electrical cables or channels. The non-parametric network is created by the ways, suspended grooves, trackages and also by the belt conveyors or other conveyors for continuous material transport. If we reduce the technological process on transport networks, then, by the creation of these networks models and their mutual interconnection we obtain the model of the whole technological process. The model can be understood as the universal one, without exaggeration, because it is valid for any technological process. However, for us the mining production process is important what represents the mining and transport of raw materials under the support of the ensuring system. In this contribution one of the first attempt is described, and namely how to connect the parametric network which has been already worked out very properly with the non-parametric network what is presented in this contribution by the transport line of belt conveyors.

Jan 1, 2003

By B B. Beamish, M S. Kizil

The processes that take place during the development of a heating are difficult to visualise. Bulk coal self-heating tests at The University of Queensland (UQ) using a two-metre column are providing graphic evidence of the stages that occur during a heating. Data obtained from these tests, both temperature and corresponding off-gas evolution can be transformed into what is effectively a video-replay of the heating event. This is achieved by loading both sets of data into a newly developed animation package called Hotspot. The resulting animation is ideal for spontaneous combustion training purposes as the viewer can readily identify the different hot spot stages and corresponding off-gas signatures. Colour coding of the coal temperature, as the hot spot forms, highlights its location in the coal pile and shows its ability to migrate upwind. An added benefit of the package is that once a mine has been tested in the UQ two-metre column, there is a permanent record of that particular coals performance for mine personnel to view.

Jan 1, 2005

One common public perception of mining is that financially it is an extraordinarily risky business. Another and contrary view, in certain circles, is that price risk and other financial risks can be relatively easily removed or shifted by a number of schemes or devices. In reality, beyond the orebody discovery stage, mining need not be any more risky than most heavy industrial businesses. Nevertheless, as stated by Rappaport, (1986): Risk is a parameter of central importance in establishing the economic value of any asset. The level of risk is determined both by the nature of the firm's operations and by the relative proportions of debt and equity used to finance its investments. These two types of risk are commonly referred to as 'business risk' and 'financial risk' respectively. The term financial risk is used somewhat more loosely herein to recognise the reality that any risk inadequately addressed in the design, construction and operation of a mining project can have significant financial consequences; usually negative. For instance, a specific area of business risk in mining is often called technical risk which definitely has severe financial consequences if not managed correctly. The various risk shifting, hedging and risk management tools available all have their place and range from merely useful to almost indispensable. However, in the long-term, financial risks are maintained at acceptable levels by the application of sound, more fundamental business management principles. There are many with a vested interest in perpetuating a perception that the conceptual foundations of sound management practice are extremely complex. In reality, most management concepts are prosaic, but their application requires incredible discipline and hard work. There is no magic formula or 'silver bullet'. It appears that a company whose activities are restricted to mining can analyse the range of risks specific to mine development and operations more clearly than companies in which mining is just one of many businesses. The almost universal failure of large oil companies in the mining business is probably the best example of lack of any clear comprehension of fundamental business characteristics and risks. Conversely, in regard to risk management, choosing to be in other business as well as mining does nothing to reduce the risks of the mining business. The individual shareholder can probably make such 'diversification of portfolio' decisions better than most management teams. It could be argued that diversification across a number of disparate businesses may actually increase overall corporate risk due to lack of management concentration and focus. These differences between the perceptions of financial risks and the realities in mining need to be further elaborated in relation to some uncompromising business concepts.

Jan 1, 1994

By Brown GA

Results are presented which demonstrate the feasibility of employing electrolytic membrane technology to process leach liquors derived from alkaline pressure leaching of scheelite concentrates and to recover and recyle sodium carbonate. Thus the problem of disposal of sodium sulphate is avoided. In a further application of the technique sodium tungstate is converted to tungstic acid which can be further processed by three possible routes to crystalline or amorphous tungstic acid or tungsten powder. In each route sodium hydroxide is produced which on carbonation can be recycled as soda ash to the pressure leach stage. Further testwork is required to determine long term operational conditions in the membrane cell and to confirm the effect and deportment of impurities on products. The process has been patented.

Jan 1, 1986