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By Harper F

This paper outlines the authors' views of the methodologies which can be employed to value mineral properties at different stages of development for the purposes of project financing, mergers and public floats. This paper discusses the key issues in Discounted Cash Flow (DCF) analysis including the importance of data verification and the shortcomings in DCF analysis. Stockmarket valuation measures and valuation methodology for exploration and pre development projects are examined through examples and pitfalls are identified. The use of valuations in corporate transactions and their strategic value is also discussed.

Jan 1, 1994

For some time the-mining industry has been criticised, completely unjustifiably, by certain people who style themselves conservationists but are actually preservationists. The criticism of the mining industry - and indeed all developmental industries has an emotional background and is not supported by facts. Some claims have been so disturbing that the Australian Mining Industry Council considered that the industry should do more in stating its position and attitude than has been done to date. It was therefore decided to request the Australasian Institute of Mining and Metallurgy (which is a technical organization) to join with it in presenting this seminar so that the subject could be examined on a scientific and factual basis, removed from the pressures of, emotion, and so that the media and the public could be presented with some basic factual data and, I trust, convinced of the soundness of the industry's attitude and policy. Many of the individuals in the mining and metallurgical industry are men who chose mining as a career because the location of mines gives an opportunity normally available only in the more remote areas. "These men do not want to see their countryside despoiled. '-The mining companies they manage and w rk for have accepted a responsibility to the environment which grows out of their close relationship with the earth.

Jan 1, 1971

By D Giurco

This paper presents the results from research undertaken in the CSIRO-funded Mineral Futures Collaboration Cluster on developing a future vision for the mining and minerals industry – Vision 2040 – in which the industry proactively contributes to long-term benefit for communities and the nation. Our research finds that Australia is currently experiencing mining-led prosperity due to high commodity prices, yet underlying this are challenges for maintaining market share due to lower productivity from extracting lower grade, more remote and complex ores. Whilst much focus has been on developing new technologies for finding and processing such ores, this paper assesses these activities, together with policy and market innovations in the context of needing to strengthen social, environmental and financial capital for long-term benefit. Vision 2010 sees mining activities linked to systems that are net providers of clean water, energy and ecosystem services, rather than minimising negative impacts alone; sovereign wealth funds are used to harness current prosperity for future innovation. Using a case study in lithium and comparisons to iron/steel, coal and copper – we illustrate the opportunities for new technology, policy and market innovations to link the mining and minerals sector in Australia to more sustainable patterns of production, consumption and prosperity.

Nov 22, 2011

By B J. Andrew, M R. Daley

Mount Isa Copper Mines is a world-class mining operation producing approximately six million tonnes of ore per annum. With over 50 years of mining history and over 76 million tonnes of underground resource remaining there are many challenges facing the mine technical team today and into the future. The mine consists of nine distinct areas: the Hangingwall Lens, Footwall Lens, 1100, 1900, N1100, N1900, 3000, 3500 and N3500 orebodies. Each of these areas have different characteristics, requiring varying methods of mine design and ground control for safe and efficient orebody extraction. Each of the areas operate with an independent sequence whilst interacting with the entire underground operation. Within the first five years after graduating mining engineers tend to orient their careers in either a technical or operations direction. Engineers working towards a specialised technical career will often be working as mine planning engineers, whilst others more focused in the operations stream occupy roles such as operations or project engineers. At this stage of a mining engineerÆs career they are not yet categorised into one stream or another, but career decisions made now can generally focus their ultimate career path in one direction or the other. Due to the size of the Mount Isa operations there are many opportunities for engineers pursuing both career path and plenty of room for growth forthose as yet unsure.

Jan 1, 2005

By I Manege, S M. Bennett

The PT Kaltim Prima Coal (KPC) operation is a large scale coalmine operating on the east coast of Kalimantan (Borneo), Indonesia. Originally developed under a coal contract of work (CCOW) with the Indonesian Government, new legislation has led to uncertainty as to the actual life of the mine, the size of the operating lease or mining area, the rehabilitation compliance requirements and other areas of concern. The actual life-of-mine (LOM) plan is therefore in a constant state of flux and must be updated and modified with every new piece of information.Under the CCOW system, the mine life ran from the first year of production (1992) for 30 years (2021), with the potential to extend for a further two ten-year periods. KPC has always intended to run until at least 2041. Under the new legislation, the potential term of the CCOW (to be replaced by a mining license) is open to interpretation, resulting in KPC having to prepare plans allowing for a LOM that may end in 2021, 2031, 2041 or a range of other possible periods of time.Uncertainty about legislation (and hence the mine life) possible production rates and available work areas; variable coal prices and costs; varying management contexts; the substantial reserves available; difficulty sourcing dump space; potential rehabilitation costs and the dependence of a community of over 100 000 people on a single operation sees the LOM and mine closure teams preparing dynamic yet thoroughly robust plans that are updated on multiple occasions per year.This paper will describe the procedure followed by KPC and the potentially show stopping issues that must be dealt with.CITATION:Bennett, S M and Manege, I, ?2014. Life-of-mine planning in a dynamic environment, in Proceedings Life-of-Mine 2014 , pp 379–388 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 16, 2014

Mechanical and electrical (M&E) systems in road tunnels are constrained by the traffic envelope and the construction profile. Whilst these spatial constraints are often ælocked inÆ early in the design process, the detailed M&E design continues for some considerable time after key civil engineering issues have been resolved. Ventilation design criteria for both normal and emergency operation often involves considerable negotiation with a wide range of stakeholders. Final system performance and spatial requirements are only finally resolved when suppliers are selected following the tender process. Lighting design is dependent upon a wide range of factors including tunnel lining materials and associated colours as well as agreed maintenance regimes. Cabling systems can only be developed when the general arrangement for power distribution is agreed and a system of substation, switchrooms and equipment rooms is in place. Many other systems such as fire protection and communications facilities fill the available space beyond the traffic envelope, where physical, structural and æsight lineÆ requirements must all be accommodated. The more co-ordinated civil engineering and M&E design is and the earlier the process starts the better the outcomes for all parties.

Jan 1, 1999

The author reviews design evaluation theory and existing optinustion tools and then describes how these have guided recent developments in Whittle Programming's strategic mine design package: Four-X. A new package - Reserve Estimator is also d

Jan 1, 1998

A very wide range of technologies are utilised in the mining and processing of ores and a great deal of effort is expended in the development of ænew technologiesÆ to improve mining performance and economics. Traditionally, technology and people have been treated as separate aspects of an operation, when in fact they are inextricably linked. The successful implementation of new technologies is entirely dependent upon the actions, enthusiasm and skills of people, both as individuals and working in groups. This paper discusses the role of technology in mining and how new technologies are implemented by the industry. The paper argues that existing technologies have not been fully or adequately utilised and that effort should be re-focussed on the implementation of technologies that have been taken for granted for many years. The need for greater emphasis to be placed on the management of the human-technology interface is discussed.

Jan 1, 1998

By B Johansson

The mining industry needs to recruit young talented people. An important task therefore, is to create future attractive mining workplaces that engage and motivate young people to work within the industry. Our intention with this article is to illustrate a possible way forward for the mining industry to form such workplaces. We discuss different aspects of an attractive workplace and summarise our findings in a specification of basic demands dealing with safety, physical and psycho-social work environments and social responsibilities.

Nov 22, 2011

By P Audet, D R. Mulligan, D Doley

This analysis attempts to reconcile existing ecological theories, rehabilitation planning goals and implementation constraints in the form of a rehabilitation paradigm that considers potential and pragmatic ecosystem transformation pathways. The framework prioritises multiple developmental scenarios for post-disturbed landscapes within a continuum of ecological outcomes. A feature of the framework is that ænovelÆ ecosystems and agro-ecosystems, having a range of commercial and societal values, are valid outcomes spanning the conceptual divide between the ecological functions of under-rehabilitated versus re-instated ænaturalÆ landscapes, especially in a changing environment. Landscape suitability analyses are considered to be fundamental to the incorporation of regional landscape and climate in the implementation of land rehabilitation and management strategies. Altogether, the paradigm could facilitate the identification of widely pertinent rehabilitation goals having direct implications at the regional scale of restoration ecology and acceptance of the need for ongoing commitment to the management of disturbed environments.CITATION:Audet, P, Doley, D and Mulligan, D R, 2012. Can ænovelÆ ecosystems offer suitable rehabilitation alternatives for post-mined landscapes?, in Proceedings Life-of-Mine 2012 , pp 135-142 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 10, 2012

By S M. Stewart

Industry, especially extractive industry, must now give serious attention to the impact its operations have on the natural environment and on the economic, social, and cultural context within which it operates.   While this obligation is statutorily managed, there has been a recent shift towards a culture of self responsibility. Industry is now talking about earning its ôsocial licence to operateö and the importance of maintaining the ôtriple bottom lineö, thus adding environmental and social performance to the usual financial criteria used to measure organisational performance. The social context within which companies operate has also become more sensitive with industry responding to a growing public expectation that it conduct itself in a way that strives for sustainability by operating and developing in a way that meets the needs of the present without compromising the ability of future generations to meet their own needs.   There are glowing accounts of industries engaging and collaborating with the communities within which they are based. In amongst these are also some disasters which result from cultural assumptions, industry created dependencies and the failure to attain community buy-in despite significant investment by the industry involved.   There are also remarkable stories of communities, and action groups within communities, being a significant catalyst for positive change of their natural, cultural and social environment. In amongst these stories there are also accounts of long and drawn out battles; adversarial situations where no one wins; a litany of mistrust, tricks and tactics, with the better resourced party ultimately achieving its primary objectives at the cost of the other (and at the cost of any potential fruitful, mutual relationships).   So what makes the difference in achieving the positive rather than negative outcomes? The answer lies in the way the outcomes are achieved. Building relationships based on good communication, respect for divergent views, mutual understanding, and the development of trust and empathy, makes it possible to identify shared goals and objectives that best meet the needs of all parties.   Research indicates the mining industry is making good progress in developing policy and commitment to community development and engagement but that, ætranslating commitments into improved practices at the site level remains one of the industryÆs toughest challengesÆ. (Australian Government - Community Engagement and Development Handbook October 2006 @ page 49.)   This paper considers the merits of a process of community collaboration and what it has to offer in terms of meeting that challenge.

Jan 1, 2007

By P Salmon, M Kennedy

Sun Metals Corporation Pty Ltd (SMC), a wholly owned subsidiary of Korea Zinc Co Ltd (KZC) is a company formed to develop, construct and operate a zinc refinery, 11 km south of Townsville in North Queensland. The project opportunity exists because of on-going consumption growth for refined zinc metal, technological, environmental and economic obsolescence of existing zinc processing plants, and a prolonged ædroughtÆ of new zinc processing capacity under construction. The Project will utilise proven technology developed by KZC at the Onsan refinery in Korea. The Townsville Refinery has been designed to be the most environmentally-friendly zinc refinery in the world, and in particular to resolve the issue of secure, long term treatment of the ironbearing content of the zinc raw materials.

Jan 1, 1998

Valuers of mineral properties should be aware that accountants are a major user of their opinions of value. Reliance by accountants can range from obtaining comfort that book values in balance sheets are not overstated to establishing values by which to assess the fairness of a takeover offer. Accountants using mineral property valuations clearly can't be expected to have the same level of expertise as the valuer and ""second guess"" the valuation. But they do have an obligation, under the ASC guidelines and their own professional standards, to'check the logic and reasonableness of the valuation before being able to rely on it. This means reviewing the valuation report for general sensibility, discussing the methodologies and assumptions with the valuer and being satisfied as to his competence and independence. This paper outlines how accountants use mineral property valuations, the level of scrutiny applied to such valuations and the problems commonly encountered in practice by accountants seeking to rely on them. The paper also explains how values of-mineral properties are established in company balance sheets and why these often differ, quite validly, from fair market values.

Jan 1, 1994