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By F Cesnik, P Griffin, S Green

In July 2004 a flotation concentrate regrind circuit was commissioned in the æHigh GradeÆ Ridgeway concentrator at NewcrestÆs Cadia Valley Operations. This was the culmination of two years of project testing, process design and planning which commenced shortly after commissioning the concentrator in March 2002. During the two-year project evolution alternative grinding technologies were evaluated from conventional ball milling through to sand milling. A Detritor mill was eventually selected for the duty and the criteria on which this selection was based will be presented. As the project evolved so too did the equipment sizing with the concentrator quickly exceeding design capacity of 4 Mtpa and currently averaging 5.6 Mtpa, the process design had to accommodate this and future potential throughput increases. This paper will focus on the supporting testwork, circuit surveys and concentrate properties which were used as the design basis for the project. The economic evaluation which led to the project receiving board approval in November 2003 will also be presented. Detailed design and construction management issues will be discussed as will preliminary results and findings up to November 2004.

Jan 1, 2005

The objective of a mine planning exercise is to plan a safe mine that maximises net present value (NPV) for the project. Two primary elements are key to design of a mine plan optimised to maximise profit: selection of an optimised production rate and selection of an optimised equipment fleet. Both depend upon accurate estimations of capital and operating costs for the equipment and for the life cycle of the mining operation. Once a trial production rate is determined, a primary equipment fleet, ie excavators, haulers, and blasthole drills, can be determined based on material characteristics and haulage distances and gradients. An auxiliary fleet, dozers, road maintainers, service trucks, etc can be determined using less rigid productivity criteria. With an equipment fleet determined, operating and support personnel can be assigned based on shift requirements and equipment operating needs; and material and supply requirements can be estimated. Knowing the areal dimensions of the major equipment items, road widths and repair shop dimensions can be determined. Personnel numbers and supply requirements determine the square metre sizes of offices, change rooms, and storage facilities. Reliable sources of capital and operating unit prices and costs for all these items are referenced in the paper. Once preliminary capital and operating cost estimates are calculated by applying unit costs to equipment, personnel, material and supply needs, potential profit can be tested using DCF techniques. An optimised mine plan can then be determined by testing the potential profitability of multiple mine production rates. Because of the economies of scale, full capital and operating cost estimates must be completed for each production rate in order to produce meaningful comparisons.

Dec 6, 2010

By M Bloss, B Roberts

BHP Billiton Olympic Dam required a well-tested software product suitable for strategic optimisation and scheduling of options for a potential underground mining project. The company has a standard software package called Blasor® that is used for open pit optimisation of complex deposits such as iron ore, copper-gold-uranium and silver-lead-zinc. It applies a mixed integer programming formulation (MIP) to produce conceptual pushback designs and an optimised pushback sequence. Schedules can then be run on the resulting mine designs. Existing pushback designs can also be imported into the model and an optimum schedule generated. One of the key advantages of Blasor is that multiple strategic mine schedules can be quickly generated according to the various scenarios, options and constraints that are being investigated.It was realised that Blasor, if carefully configured, could be adapted for use in underground planning. The concept of using Blasor as an optimiser for underground strategic scenarios is to represent the underground stope and development data in the form and structure of an open pit mine. In simple terms, underground stoping areas are modelled in the form of pushbacks (phases) with vertical walls. The phase dependency tools in Blasor are used to link mine blocks and their access development drives. These underground phases are imported into the optimiser. Artificial block models are constructed using stope design tonnage and grade data at various fixed cut-offs. A variable cut-off grade model has also been developed using a method of parcels to represent each cut-off grade increment.So far, this approach has been successfully used to investigate the optimum stope design cut-off for various strategic options, the economic potential of a series of mining and processing configurations and to provide guidance on the optimum sequence for developing and mining the various stoping blocks in the resource. Examination of the results has highlighted the most suitable development paths for more detailed study.CITATION:Roberts, B and Bloss, M, 2014. Adaptation of an open pit optimiser for underground strategic planning, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014 , pp 249–256 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014

Purification of Nickel and Cobalt from Heap Leaching Effluents Using Ion Exchange Resins A comparative study among several chelating resins for purification of a heap leaching effluent from a nickel laterite ore has been finished. Chelating resins with iminodiacetate (IDA) and bis-picolylamine (Bis-PA) functional groups, from different suppliers, have been evaluated for their selectivity and loading capacities for nickel and cobalt over impurities. The two evaluated IDA resins, Amberlite IRC 748 and Monoplus TP 207, showed very similar results for both loading capacity and selectivity. Better performance was obtained at 7 BV/h at a pH of 4. Evaluation of Bis-PA resin showed that XUS 43578 has better performance than TP 220, with a 30 per cent higher loading capacity and superior selectivity for nickel over impurities.

Sep 13, 2010

The Use of Automated Mineralogy to Interpret the Batch Flotation Performance of Merensky Reef Ore

Sep 13, 2010

Currently an Australian Standard for tunnel fire safety is being developed for road and rail tunnels. Other local guidance relating to tunnel fire safety that has recently become available includes publications by both the Roads and Traffic Authority and RailCorp of New South Wales. Internationally, the World Road Congress has completed its 2004 - 2007 cycle, which has resulted in a number of publications. International developments in rail guidance include a new European Standard regarding fire safety in railway tunnels that will come into effect in July 2008. In addition, the National Fire Protection Association committee NFPA 130 are in the process of revising their standard for fixed guideway transit and passenger rail systems, which is due for publication in late 2009. This paper outlines the status of these and other recently published relevant local and international fire safety guidelines and their implications for tunnel projects in Australia.

Jan 1, 2008

By Y Li

An ilmenite ore from the Murray Basin was initially characterised using combined X-ray Fluorescence Spectroscopy (XRF), X-Ray Diffraction (XRD), Scanning Electron Microscope (SEM) and Electron Probe Microanalysis (EPMA) techniques. XRF analysis showed the ilmenite sample contained 58.7 wt per cent TiO2 and 26.2 wt per cent Fe2O3. Major impurities included: Cr2O3 (4.5 wt per cent), Al2O3 (2.7 wt per cent), SiO2 (1.9 wt per cent), Mn3O4 (1.5 wt per cent) and MgO (1.1 wt per cent). Manganese and magnesium were present as solid solution components within the ilmenite lattice while the elevated Al2O3 and SiO2 levels were due to separate aluminosilicate gangue minerals. Chromium was associated with discrete chrome spinel gangue phases of variable composition, (Fe,Mg)(Cr,Al)2O4. Quantitative XRD analysis of the sample identified rutile (12 per cent), ilmenite (11 per cent), and pseudorutile (67 per cent) as the main titanium-containing phases and chrome-rich spinels (seven per cent) as the major impurity phase. Minor quartz, aluminosilicates, zircon and monazite were also present. The ilmenite was mixed with synthetic graphite, pressed into pellets and reduced carbothermally in nitrogen at 1200 and 1400°C with C/O molar ratio of 1.2. Titanium oxide in the ilmenite was converted to titanium oxycarbonitride. Iron oxides were reduced to metallic iron. The Changes of impurities as a result of reduction was examined by SEM and EPMA analyses. Iron and chromium oxides within Fe-rich chromite were reduced to form a Fe-Cr-C alloy. Mg-rich chrome spinels were partly reduced at 1200°C. Zircon particles were not reduced at 1200°C, but were significantly reduced at 1400°C, with the particles becoming porous and the silicon being removed.

Oct 5, 2011

By A Liu, T Ren

Gas explosion in underground coal workings can pose a serious threat to the safety of mine workers and the entire mine operations. Gas explosion is a very complex thermal-chain reaction in a confined underground environment. Based on combustion and explosion theory, three dimensional (3D) computational models were developed to simulate mine gas explosion flame and overpressure wave propagation in a single entry gateroad in underground coalmines. Six different explosion scenarios were modelled and compared with large scale experimental results and AutoReaGas simulations. Model validations show that the use of shear-stress transport (SST) k-? model together with eddy-dissipation model (EDM) produces good agreement with both experimental and AutoReagas simulation results. Modelling results demonstrated that the changes of temperature versus time can be divided into four stages, ie the initial condition stage, and periods of warm-up, active burning, and burnt-out. Assuming a limited volume of methane is involved in the explosion, the maximum temperature decreases as the distance increases from the explosion point, with the highest temperature reaching about 2460 K. Modelling results show that the evolution of the explosion flame shape experiences four typical stages, ie spherical flame, finger-shape flame, flame with the skirt touching the side walls (ribs) and tulip flame, which are similar to the pattern of a duct explosion. The pressure in the gateroad remains the same as the initial value before the arrival of the explosion wave and then increases rapidly to the maximum value. Modelling results from this study will be used for the design of explosion arresting devices and mine seals in underground coalmines.CITATION:Liu, A and Ren, T, 2017. Computational simulation of gas explosion and its propagation in single entry gateroad, in Proceedings Australian Mine Vent Conference 2017, pp 181–188 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 28, 2017

The Channel Tunnel is an outstanding example of an undersea tunnel and its design illustrates most of the unique features of this type of tunnel. The marine site investigation was partic- ularly vulnerable to adverse weather conditions. To minimise this interference the time the drilling vessel was required to remain on station was kept to a minimum by expediting the drilling and the insitu tests as far as was practicable. To avoid additional unforeseen costs the contract documents were framed to take particular account of marine practice. The limited access at the coast line meant that for economy, maximum tunnel advance rates had to be attained. Ground excavation, handling and disposal methods and the provision of the lining were optimised and equipment specified in detail to ensure that no one com- ponent was delayed by a lack of capacity or mechanical failure in any other.

Jan 1, 1976

Analysis of Procedures and Drivers for Industrial Waste Management

Sep 13, 2010

By P J. Mienie

The Palaeo-Proterozoic Transvaal Supergroup in the Northern Cape Province of South Africa is host to the largest known resources of high-grade hematite ore on the Southern African continent. These ores are currently being exploited at Sishen and Beeshoek. Hematite occurances on the Sishen South exploration project (some 65 km south of Sishen mine), are at present the focus of an intensive investigation. At both the Sishen and Sishen South deposits, mineralisation is found within lithologies belonging to the Transvaal and Oliphantshoek Supergroups. The Transvaal Supergroup comprises a basal, carbonate platform sequence (the Campbell Rand Subgroup) overlain by thick units of banded iron-formation belonging to the Asbestos Hills Subgroup. The Asbestos Hills Subgroup is unconformably overlain by sedimentary rocks of the Gamagara Subgroup. The latter Subgroup has been correlated with the lowermost unit of the Oliphantshoek Supergroup. The Sishen and Sishen South deposits are located close to the western margin of the Kaapvaal craton and have been subjected to intensive, structural deformation. Both localities have undergone folding, faulting and thrusting. Early regional tectonism (2400 - 1700 Ma) played a critical role in the genesis and preservation of the ores from younger erosive events. At both deposits, four similar iron ore occurrences have been recognised. The ores have developed in specific depositional environments and hence display unique physical, chemical and metallurgical properties:The bulk of the high-grade hematite comprises laminated and massive ores, which are found in the upper parts of the Asbestos Hills Subgroup. The laminated and massive ores are best developed in basinal and pseudo-graben structures. Collapse breccia ores of medium- and lower-grade are preserved within deep palaeosinkholes. The sinkholes have developed within the dolomites of the Campbellrand Subgroup. Lower-grade conglomeratic and gritty ores constitute the remainder of the deposits. These ores are found in the overlying clastic succession of conglomerates, shales and quartzites belonging to the Gamagara Subgroup. Although, there are many stratigraphic and lithological similarities between the Sishen and Sishen South deposits, there are also important differences, which will impact on the profitable exploitation of the ores. The most striking contrast between the deposits is their size and geometry. Sishen mine is a single pit operation with an opencast mineable reserve of 895 Mt. The Sishen orebody is thicker, more continous and significantly larger than the Sishen South deposit. The Sishen South deposit has a potential opencast reserve of 228 Mt. It comprises a number of small and narrow, isolated orebodies, spread over an area of ¦64 km2 . There is a significant difference in grade between the deposits. On average the orebodies of the Sishen South deposit have a higher iron content (+0.25 per cent Fe), less potassium (- 0.090 per cent K2O) and less phosphorus (-0.019 per cent P). The Sishen South deposit has less interbedded shale in the laminated and massive ores. The footwall of these high-grade ores is a light-density, intrusive sill, compared to banded iron-formation at Sishen. With a proposed heavy-medium separation plant at Sishen South, the impact of dilution on product grades is expected to be less than that currently experienced at Sishen.

Jan 1, 2002

By P D. Munro

On the occasion of the 14th Mill Operators’ Conference and marking 40 years since the first one was held in Mount Isa in 1978, it is fitting to review the history of the Conference and its development over that time.The first 10 Conferences were irregularly held at three to four year intervals, with 9 of these in regional centres of Australasia. It is only since 2012 that the Mill Operators’ Conference has become a regular biennial event, alternating with the MetPlant Conference.The number of people attending the Conference has more than doubled to 470 delegates at the 13th one in 2016. It has outgrown its regional beginnings.Papers presented to the previous Conferences have been analysed according to commodity, country of origin, technology and theme plus the affiliation of the authors to discern any trends that may assist in planning the future events.Suggestions are made as to how the AusIMM might wish to arrange its mineral processing/metallurgical conferences.Recent changes to the structure of the Conference providing a more meaningful experience for the delegates and increasing their interaction and involvement should be vigorously pursued.CITATION:Munro, P D, 2018. Mill Operators’ conferences – a 40-year retrospective and a vision for the future, in Proceedings 14th AusIMM Mill Operators' Conference 2018, pp 5–14 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 29, 2018

By A J. Falconer

Two magnetic parameters are proposed as a basis for the assessment of ironsands beneficiation. The parameters are determined for raw sand prior to dredging and for magnetic separator head feed over a production period of five months. The relationships between these parameters and the performance of the magnetic separators are examined to establish the value of magnetic assessment compared with the traditional soluble iron assay method. The results illustrate that the first parameter, true magnetic fraction (TMF). Has a value superior to that of soluble iron when relating raw sand grade calculated by triangulation to magnet performance. In terms of the relationship between magnet head feed grade and magnet performance, TMF and soluble iron perform equally as assessment parameters. For the ironsands mined during the five month period, the second magnetic assessment parameter, composite fraction (CF), is shown to merely reflect TMF and offers no additional information for assessment. Conclusions are that true magnetic fraction has many advantages over soluble iron in terms of time and cost of determination and that it is a meaningful and reliable parameter upon which to base all calculations relating to the mining and beneficiation of ironsands.

Jan 1, 1980

By S McKnight, L Koroznikova, S Hall

Mineral sands represent an important new resource being developed in the Murray Basin, including parts of western Victoria. This paper will outline a simple methodology for mineral sands characterisation, developed as part of the AMIRA-managed project P777 æThe Development of Heavy Suspension Techniques for High Density Separations (Replacement of ClericiÆs Solution)Æ. This project is currently sponsored by three multinational mining companies (De Beers Consolidated Mines, Iluka Resources Limited and Rio Tinto Limited) and is developing an innovative laboratory mineral characterisation procedure that will allow the replacement of the currently employed highly-toxic chemicals.Mineral sand resources almost always contain more than one valuable (and relatively heavy) mineral. Titanium minerals are found with a large range of titanium contents, giving rise to density variation and often subjective mineralogical descriptions. Companies tend to rely on laboratory heavy liquid separation in the evaluation of samples arising from exploration, mining or metallurgical processes. Unfortunately, there are only a limited number of high density (æheavyÆ) liquids and these tend to be more toxic as their density increases. Low-toxicity inorganic solutions, based on tungsten compounds, have been developed that can be utilised at relative densities (RD) up to 3.0. However, beyond this value currently only organic liquids can be used. Diiodomethane (methylene iodide) having a relative density of 3.31 is commonly used; however, this presents significant health and safety hazards. Mixtures of thallium formate and thallium malonate were found in the early 1900s by Clerici to provide liquids having specific gravities between 4.0 and 5.0, hence æClericiÆs solutionÆ. For the characterisation of the heavy components of mineral sand deposits (eg anatase sg 3.9, rutile sg 4.2, ilmenite sg 4.4 û 4.7 and zircon sg 4.6 û 4.8) there is currently no heavy liquid alternative to ClericiÆs solution. ClericiÆs solution is highly toxic and testing is now conducted by very few laboratories worldwide with costs reflecting the chemical costs (though extensive efforts are made to recover and reuse the liquid, plus the requirement of its removal from the mineral samples), the infrastructure costs and health and safety regimes (eg blood testing of exposed staff, inventory management). A simple laboratory technique of density fractionation is being developed, employing suspensions of fine tungsten carbide particles in lithium heteropolytungstate (LST) solutions, that can replace ClericiÆs solution in the evaluation of fine mineral sands samples (eg -250+150 microns). The developing methodology that can achieve low-cost, low-toxic separations at relative densities above 5.0 will be outlined and the comparison of results with ClericiÆs solution presented.

Jan 1, 2006

By Sarkar B. C, Sen A. K

India is well endowed with vast reserves of banded hematite ore, about 12 billion tonnes, estimated by some conventional methods. Various authors have assessed this huge reserve using some advanced geostatistical methods. A Banded Iron Formation (BIF) belt named the `Singhbhum-Keonjhar-Bonai' belt in India has been chosen as a case study. In this paper, the experiences of Chiria iron ore, in particular, have been described. This study will finally create a dynamic mineral inventory after standardising the geostatistical parameters which will help to cater for the needs of the stringent quality requirements of the Indian steel industries.

Jan 1, 1995

By D A. Williams, J C. J Boshoff

The properties of tailings that emanate from laterite nickel processing plants are significantly different to most other mine tailings. They typically comprise a mixture of fine materials that are made up of altered clays, chemical residues and salts. Neutralisation processes that are undertaken prior to tailings discharge result in a high proportion of gypsum in the tailings. The salinity of the pore fluid is commonly higher than 140 g/L of salts, dominated by magnesium sulfate. Hydraulically-placed tailings that undergo solar evaporation typically reach dry densities of less than 1 t/m3 of insoluble solids. In situ water contents after many months of drying may be as high as 80 per cent, and peak undrained shear strengths are unlikely to be greater than 20 kPa.This type of material is not conducive to upstream raising, from both a practicality and overall slope stability perspective. Even at rates of rise of less than 1 m/a, it is difficult to effect upstream raising on unaltered laterite nickel tailings. However, the authors have successfully designed and implemented upstream-raised laterite nickel tailings storage facilities. The upstream raises have been formed from both imported natural materials and air-dried and compacted tailings borrowed from the tailings beaches.Drying and associated strength gain has been achieved through various means of mechanical intervention, repeatedly exposing a zone of tailings to the atmosphere for evaporation. Field trials have been undertaken to optimise the approach, and the findings from the trials have been implemented in practice to allow stable upstream raises to be constructed. The cost savings and reduced environmental impact compared to high-volume downstream raises have been significant.CITATION:Williams, D A and Boshoff, J C J, 2015. Upstream raising of laterite nickel tailings storage facilities, in Proceedings Tailings and Mine Waste Management for the 21st Century , pp 271–280 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 27, 2015

By J Pan

This case study assesses the application of Mine-to-Mill optimisation combined with Whittle Consulting’s Prober<sup>®</sup> economic optimisation for the purpose of economic value uplift in open cut base and precious metal operations. The study extends the application of these optimisation methods to incorporate the recent practice of Ultra High Intensity Blasting (UHIB) developed by Orica Mining Services. The case study deposit known as “Marvin” is a copper/gold porphyry resource that is commonly used in optimisation software training and industry case studies. It has many similarities to Newcrest’s Cadia Hill open pit mine in NSW. Prior desktop research and industrial trials employed static assessments of Mine-to-Mill effects. No prior work other than a Whittle Consulting client study, has sought to assess the impact of variable fragmentation on enterprise economic value. This study examines the use of variable blasting intensity as a driver of economic value maximisation over the mine’s life.CITATION: Howe, S and Pan, J, 2018. Application of enterprise optimisation considering ultra high intensity blasting, in Proceedings Complex Orebodies Conference 2018, pp 14–20 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 21, 2018

High-sulphidation (HS) gold, silver and/or copper deposits are generated in both the epithermal and the upper parts of the underlying porphyry environments over vertical intervals of up to 2 km. The HS deposits are generated in advanced argillic lithocaps, which are products of the absorption of acidic magmatic volatiles by voluminous groundwater systems. Mineralisation styles in HS systems reflect depth of formation as well as the interplay between structural, lithological and hydrothermal parameters. The deep parts of HS systems, at depths of >1000 m, are typified by disseminated copper¦gold mineralisation comprising digenite, chalcocite and covellite in pervasive advanced argillic as well as underlying sericitic alteration. In highly telescoped systems, such mineralisation may overprint porphyry stocks and associated quartz-veinlet stockworks. Intermediate levels of HS systems commonly contain fault-controlled copper-gold mineralisation, typically as enargite in bodies of vuggy residual quartz, silicification and/or massive pyritic sulphide. The shallow parts of HS systems, at depths of The exploration focus is on four principal HS mineralisation styles:copper (eg Chuquicamata, Monywa) or copper-gold (Wafi) in the deep porphyry-hosted parts of systems preferably, in the case of the latter, where supergene oxidation is limited and, hence, flotation may be used for metal recovery; copper¦gold-bearing replacement mantos and pipes hosted by carbonate wallrocks in the deep parts of systems (eg Bisbee); high-grade gold in late-stage veins or hydrothermal breccias that overprint the intermediate to shallow levels of systems (eg El Indio, Goldfield); and large, bulk-mineable gold deposits in the shallow parts of systems that were subjected to supergene oxidation, thereby permitting heap-leach treatment (eg Yanacocha, Pierina). To these preferred HS styles may be added the low-sulphidation vein or disseminated gold¦silver mineralisation that is commonplace alongside many HS systems (eg Victoria at Lepanto).

Jan 1, 1999

By R Schiller, E Chait

"Quebrada Blanca is a porphyry copper deposit located in the Eocene-Oligocene belt of Chilean Andes. Operation started in 1994 and original reserves for supergene mineralisation gave a life-of-mine (LOM) of 20 years; however, further exploration extended the LOM until 2020.In order to optimise the remaining five years of supergene resource, geometallurgical variables were added to the geological model including copper recovery and acid consumption. LOM plan encompasses finishing the phase number eight and the future development of phases 11 and 13.LOM lithologies include diorites, quartz monzonites, porphyries, igneous and tourmaline breccias. Main alterations are: potassic, phyllic and argillic. Litho-alterations or geometallurgical units were formed by combining five types of rocks with three types of alteration. According to statistical information, the deposit can be represented with 12 litho-alteration units, which cover 98 per cent of the LOM volume.For copper recovery information, there were 40 mini-columns tests made in order to obtain kinetics curves and copper recovery values after comparing the difference between head and tails grades. Acid consumption was obtained using an automatic neutraliser device-based test.Historical data said that copper recovery in pads after 450 days of irrigation is around 75 per cent of recoverable copper while acid consumption is around 5.5 kg/t.According to this study, lower recoveries are related with potassic-altered diorites and argillic-altered quartz monzonites with values around 60 per cent. On the other hand, best recoveries could be found in potassic-altered quartz monzonites and argillic-altered diorites with values closer to 80 per cent.It was also revealed that the most reactive rock is the potassic-altered diorite with 12 kg/t of acid consumption. This rock covers approximately 40 per cent from phases 11 and 13.The final geomet model was calculated using a program that relates each geometallurgical unit with a specific copper recovery and acid consumption value. Results found after comparing model-obtained information with historical leached pads data were used to validate the model.CITATION:Chait, E and Schiller, R, 2016. Adding Copper Recovery and Acid Consumption Variables to the Geological Model of Quebrada Blanca, in Proceedings The Third AusIMM International Geometallurgy Conference (GeoMet) 2016, pp 257–266 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 15, 2016

The words ""Uncertainty"" and ""Risk"" pervade every discussion about mining exploration and investment. Perhaps these terms are subjectively understood by industry professionals, but objective portrayal of these concepts outside the industry is a woefully undeveloped science. This paper addresses current industry understanding and practice regarding quantitative risk assessment techniques, and provides examples of the application of three of these techniques. Probabilistic techniques for financial risk assessment are valuable adjuncts to conventional financial analysis, and address a range of issues not assessable by any other means. The value of whole-of-project probabilistic risk assessment is currently debatable for decision-making purposes, but is seen as important as a mechanism to focus attention to the critical issues that ultimately impact on project success. The dissection of project capital into risk and non-risk components provides valuable insights into risk characteristics not readily quantifiable in any other way. This technique also provides a framework for more objective ""what if?"" scenario evaluation and for the capital structure of resource projects. Finally, mechanisms for the valuation of undeveloped reserves are examined, and guidelines suggested. The importance of reliability in production cost estimates is highlighted and the impact of early development on reserve valuations is discussed. The importance of economics throughout all stages of the evaluation process is fundamental.

Jan 1, 1994