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This paper explains why the valuation of mining assets is often a very different exercise from the valuation of the shares in the mining company which owns those assets. The fundamental reason for this is that mining assets, and the shares of the company which owns those assets have different risks. In order to properly value mining securities it is essential to: ò ensure all the different risks and other factors which impact on the value of the mining assets and the value of the shares are taken into account; and determine the extent to which the different risks and other factors are addressed in the value of the mining assets and the value of the shares so as to avoid double counting or not counting at all. If the alternative, but far from consensus, view is accepted that the correct valuation methodology to apply to shares in mining companies should be based on option pricing theory then conventional valuation practice of both mining assets and shares in mining companies will need to be fundamentally reassessed.

Jan 1, 1994

By Forssberg E

This paper presents the experimental results on the effects of slurry Theology on ultra-fine grinding by a stirred ball mill. The amount of dispersant, slurry density and the particle size were selected as the parameters. The viscosity of dolomite-water slurry was measured by rotational viscometers. It was found that by adding enough dispersant, the effect of particle size from 1 to 10 pm on the slurry theology could be eliminated, but a strong effect of slurry density (tested for a range of 65 to 75 wt per cent) remained. The use of dispersant transformed the slurry from Bingham plastic flow to dilatant flow, which reduced the yield stress to zero, but increased the viscosity at higher shear rates. During the milling process, the viscosity was stable. The yield stress, however, increased suddenly from zero after a certain milling time. The mill operation stopped at the point where the yield stress increased due to poor slurry fluidity. The milling efficiency was found to be higher at a lower amount of dispersant addition or a lower slurry density within the experimental limits.

Jan 1, 1993

The Argyle AK1 Pit has been operating and producing over 25 per cent of the worldÆs diamonds by volume for over 20 years. The mining boom in Western Australia is creating upward cost pressures to ArgyleÆs mining operation while the price received for its product remains flat in comparison to many other Western Australian commodities. This incongruity, which when combined with other circumstances such as the pit being close to the end of its mine life, a decline in head grades and a tightening in operational constraints caused by the pitÆs maturity, is causing the leadership team at the mine to utilise innovative strategies in order to ensure that the open pit continues to perform economically until its final closure in late 2010. The strategies that will be discussed in this paper are step change business improvement methods, localisation of the workforce, employment of Aboriginal people and the use of a clear and concise consultation process in order to provide certainty to a workforce working in a pit during boom times where pit closure is imminent.

Jan 1, 2007

By P Ormsby, T Hewitt

Ore in pillars constitutes a significant proportion of the ore reserve at PasmincoÆs Broken Hill Mine. Many of these pillars are narrow (5 -6 m) and high (16 û 35 m) vertical blocks. High-grade ore has been left between primary horizontal cut and fill stopes. These stopes were mined from the late-1960s until the early-1980s. Fill material is a variety of hydraulically stowed sand, sand-cement, and remnant timber support. Many pillar cut-throughs were made between the old stopes. In order to gain access for the current pillar recovery operations, it has been necessary to develop pillar drill drives through, and adjacent to, the hydraulic filled stopes. Whilst long hole recovery of vertical pillars is not new, some notable successes using innovative ideas have been achieved during 1997. These innovations include:The use of steel mesh reinforcing in shotcrete when mining through, or adjacent to, hydraulic fill. Construction of steel sets to support vent rises and haulage ways encountered in the cut-throughs. The use of ground movement monitoring equipment. Survey lasers with chain droppers and convergence monitors were installed in the 18 Pillar to detect any movement of the pillar block and decrease risk to personnel. The development of a three-dimensional computer model of primary stoping, using Vulcan software, to assist in the design of pillars. Maximisation of recovery using different drilling and firing practices.

Jan 1, 1998

By Brown D. N, Troth D. A

Large blast furnaces demand high standards of preparation of feed materials which must meet tight specifications of chemical and physical quality. Measurement of these factors must be expeditious but the nature of the coke, sinter, ores and fluxes and the large tonnages involved requires substantial mechanical sampling plant. The equipment, its operations, and its problems, associated with the 5000 t.p.d. No.5 blast furnace at Australian Iron and Steel Pty. Ltd., Port Kembla, are described and the efficacy of chemical blending achieved in the ore blending yards and sintering operation, is reported.

Jan 1, 1976

This paper summarises the current status of the mining sector in Poland in terms of vertical transport system safety. Selected results of research programs conducted at the AGH-UST relating to mine hoist system safety are reviewed. The conclusions support the notion that the costs of vertical transport systems can be reduced, while at the same time maintaining the required safety and reliability levels. Novel solutions: movable fender beams HWR, linings modar« and the integrated shock absorbers PHH for conveyance guiding systems fully confirm this hypothesis.

Jan 1, 2005

Sampling systems are never perfect. They all have some bias and give variable sampling errors. The ways of thinking about bias and precision should be different before and after construction (or reconstruction) of a sampling system. Before a sampling system is constructed, the fundamental error variance can be estimated using GyÆs formula or by doing test work on the material to be sampled. The component of sampling variance which varies with the number of sample increments can be computed for the expected patterns of grade variation. The smallness of the bias can be checked using discrete element modelling, by checking that the proposed design complies with clauses in standards, or by copying an existing sampling system that performs well for similar material. After a system has been constructed, sampling precision can and should be monitored directly. Anyone claiming to take responsibility for a sampling system should know its precision. Bias could be checked by comparison to a more accurate sampling system, such as stopped-belt sampling, under conditions where bias seems most likely. However, it is more practical to conduct regular checks that the system is still operating as designed, that the design is still appropriate despite any changes to material flows, and that sample masses are consistent with the correct operation of the sampling system. If precision is not regularly assessed then it should be assumed to be very poor. If a sampling system is not regularly inspected then it should be assumed to be biased.

Jan 1, 2008

By D Elder, S Bell

Over the last five years Solid Energy New Zealand (SENZ) has gone through a series of changes in response to both external and internal factors. These changes have included corporate reorganisation and funding restructure, as well as modifications to medium and long term business objectives. The nature and size of its coal reserves and markets requires SENZ to continue developing new mines as existing mines are depleted. As well, there are opportunities to develop new mines as coal markets change or to realise value from existing coal resources. To assist in this process, a set of mine project assessment guidelines which are relevant to the size and scale of anticipated mine developments have been developed for SENZ. These project guidelines are structured to operate from the early stages of project or resource review through to final feasibility study stage. The guidelines provide both a basis for planning and budgeting, and a control mechanism within the company. They also enable clear understanding of the status of individual projects and provide a framework for comparison between projects. SENZ now has a defined method to plan, monitor and control this important aspect of its business. The paper explains the development and structure of the guidelines, as well as providing examples of their application. and use. It demonstrates how SENZ integrates its long term planning, five year planning, annual planning, project planning and risk management to maximise the value of individual projects, business units and the company overall in a consistent manner.

Jan 1, 2002

By E Baafi, G Brassington

Coal mining operations can impact on various types of surface infrastructure or natural features, including cliff-lines, steep slopes and natural watercourses. Longwall mining leads to a subsidence depression due to the changing geometry of the mined out area. The current regulatory process for managing subsidence in New South Wales (NSW) involves the preparation of a Subsidence Management Plan (SMP). This paper demonstrates the use of a Weights of Evidence (WofE) technique applied within a Geographical Information Systems (GIS) environment to predict potential areas for rockfalls along cliff-lines in the NSW Southern Coalfield. The WofE is a ædata-drivenÆ method that can be used to predict subsidence impacts prior to mining. The WofE method was applied to ten known rockfalls along the Cataract River to evaluate the reduced impact of not mining within 50 m of cliff-lines along the Nepean River. There is significant reduction of probabilities of rockfall occurrence when mining is avoided within 50 m of cliffs.

Jan 1, 2006

The mineralogy of ten trihydrate bauxites and their leached residues from bomb digestion tests at 140, 180 and 2400C was investigated and the resultsòcorrelated with analytical data. It is shown that increased recovery of alumina at high temperatures is due to. the dehydroxylation of goethiteòrather than the presence of alumina monohydrates. The effects of aluminous goethite -on the interpretation of "available alumina". results-and normative analysis are discussed and it is concluded that,'cautionòmust be exercised in interpreting the results of bomb digestion tests in terms of alumina hvdrates.

Jan 1, 1973

By G A Brown

Environmental legislation is changing rapidly throughout Australia at the present time, and with that change comes additional responsibilities for the mining and petroleum industries. Among the many changes that are being made are increased penalties for both criminal and accidental environmental impairment. The defences for criminal offences are limited and for other offences the laws may impose strict liability - in effect the offender is guilty until proven innocent. Mines may be included under contaminated land legislation, creating additional liabilities for clean-up, rehabilitation and long-term management. It is not unknown in Australia for the value of a mortgaged property to be less than the amount of the environmental liability acquired by a mortgagor in possession due to contamination of the site. An essential part of the management program for resource projects is now the regular conduct of an environmental audit, the results of which assist in the management of the legal and financial liabilities facing company directors and managers. The audit can also assist with negotiations with government agencies, staff, unions, insurers, Aboriginal and other community groups. An environmental audit may also help to ensure that companies are claiming the maximum allowable deductions for environmental works under the tax laws, and provide evidence in support of such claims. Environmental legislation affecting resource industries Environmental legislation in Australia is changing rapidly and can impose massive constraints, substantial administrative costs, and considerable liability on directors, managers and the corporation. Pollution control legislation Every State and Territory of Australia has a range of pollution control legislation contained in either individual acts relating to air, water, noise and land, or embodied in a single environment protection act. Pollution control legislation provides a critical management baseline for resource industries throughout Australia, often requiring the full-time attention of an environmental manager or an environmental department. In general, it is an offence to discharge effluents into water, or emit gases into the atmosphere above prescribed limits, cause noise above a regulated level, or contaminate land without a licence. A licence determines how much of a substance can be discharged, the location, the receiving environment, the quality, and the time at which discharges can be made or noise can be caused. Planning legislation Planning legislation controls where a project is located, how it will be constructed and operated, how large it is allowed to be, and what will happen once the project is completed. Development consents or approvals will generally contain a range of conditions controlling the preparation of the site, the construction of the facility and the way it is operated throughout its expected life time. Resource projects may be regarded under legislation as scheduled or designated developments requiring special treatment during the decision-making process. Under planning legislation, it is usual for resource projects to be subject to an environmental impact assessment process. Resource legislation Resource legislation specifically covering mining and petroleum in Australia, also contains requirements regarding protection of the environment during exploration for and extraction of minerals and oil. A mining or petroleum production lease usually contains numerous conditions regarding protection of the environment and rehabilitation of the site during and after the life of the extractive process.

Jan 1, 1994

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

The tragedy of the Moura No. 2 incident has lost much of its emotional mileage for those organisations that thrive on loss and suffering. However, for the families, workers, mine owners and operators in the Queensland underground coalfields, the challenge of delivering a positive outcome, though well underway, is in its infancy. The pressure created by interested parties is necessary for overcoming the inertia involved in change; but they cannot deliver the change. The responsibility ultimately resides at each individual minesite with the people who work there each day.

Jan 1, 1998

By S Zaffron, O Loffredi

A critical concern of any mining company today is its relationship with the different stakeholder groups impacted by the operational activity û communities, unions, vendors, local partners and competitors, local and federal governments, interest groups and non-government organisations. What ten years ago would have gone unnoticed, now, and even more so in the future, can drastically impact the profitability and even existence of a mining operation. This paper describes the development and delivery of a new paradigm for creating effective external stakeholder relationships. We report on the actual measurable results of an integrated and highly complex initiative led by Lonmin Plc (Lonmin) and Landmark Education Business Development (LEBD) that significantly altered the nature of the relationship with the stakeholders. Given the nature of the long-term investment required in a mining operation, any breakdowns or surprises in its relationship with external stakeholders brings with it the potential for major loss. The transformation of executive and senior management and community leadership was required to enable them to be effective in managing this complex set of circumstances.

Jan 1, 2006

By Stubbs B

In conjunction with Charles Copeman, we have arranged the presentation of a paper by Charles with a support paper by myself presenting alternatives to currentaccepted legal concepts involving the ownership of minerals by the Crown and the absence of ownership in any minerals or entitlement to benefit therefrom by the owner of the land on or under which the minerals occur.2. The current situation has its historical route in the concept of gold and silver being royal metals and belonging wherever situated in the Kingdom to the King and it is submitted it can be'seen as being archaic in nature perhaps even feudal and perhaps worthy in this day and age of reconsideration.Our purpose in these papers is to present an alternative view supported by argument challenging the present system and hopefully, creating room for comment and interchange amongst those involved in the industry. My solutions are not Charles Copeman's solutions and vice-versa. However, we do share a common belief that the present system may not be the best system.

Jan 1, 1990

R F Johnston 1 ABSTRACT The possibilities for bacterial leaching of refractory gold ores found in the Central Victorian region of Australia are examined. The behaviour of bacteria, especially 77iobacillus ferroaridans is outlined and the effects of these when they are exposed to pyrite, arsenopyrite and stibnite are examined. The factors which are particular to Central Victoria are outlined and the possibility of adapting a bacterial culture to suit the conditions is discussed. It is concluded that a bacterial leaching system is a feasible proposition and that it could enhance leaching rates and yields.

Jan 1, 1994

To the south and west of Broken Hill lies the Thackaringa silver-lead district, about 25 miles, and is the locality really of the first silver find in the country long before Broken Hill, the geological fomations of which it much resembles. The Iocks and their structure are identical, except that in this area they are  more irregularly foliated and apparently much more faulted and expose in places quick successions of complete anticlines and synclines, even in a single lease. Saddles of ore respectively are found coinciding with the flexures of the rock but many minor veins otherwise and branches exist and make connections which render the whole a mining problem. It follows then that the surface.of the ground after some denudation in dotted with croppings of all the series, and in such a confusing way that the actual strike of a vein may be even confounded with the dip and readily mistaken for it at a few places. The main character of the outcrops are those usual in the district consisting almost wholly of argentiferous and silicious ironstone, sometimes gossan, which at a depth in a few feet changes to a gangue of very silicious carbonate of iron (crystallised), which occurrence is uniform through this district.The exploration of the lodes has not been extensive as it has not been well understood. Shallow shafts and drives have comprised nearly all the mining at present, which is evident on first sight by the numerous shafts and small excavations dotted 'about, as in an alluvial field. The depth of exploration underground in one place had gone several hundreds of feet, never more than 150 feet vertical from the surface in depth and irregular. The undulations of the most continuous work in this direction is such that it presents at different places successively either a tunnel, shaft, underlay winze, level, or Tise, and is on ore all the time, and where the rocks are faulted (which occurs as much as 30 feet and more) these changes are very abrupt, but for working on are suitably connected by the management.

The papers in this section of the conference and indeed the conference as a whole will rightly focus on the recent û the state of play around the Pacific Rim. However, to set the scene I propose to take a longer-term perspective. In so doing I wish to illustrate and emphasise that change is normal and natural û to paraphrase Bob DylanÆs 1963 classic, æThe times they are (always) a-changinÆ Æ. The challenge is how to cope with such change, in an industry, a corporate and a personal sense. A further challenge for geologists, both exploration and mine-based, and indeed for anyone, is to understand where they fit in the broader picture. For several reasons it is appropriate first to look briefly at the minerals industry in the Pacific Rim around a century ago. It was here in Adelaide in April 1893 that the first general meeting of the Australasian Institute of Mining Engineers (or The Australasian Institute of Mining and Metallurgy as it later became) took place and where the Centenary Meeting was held in 1993. The late 1800s and early 1900s was a period of extraordinary change in the minerals industry regionally and worldwide. The industry benefited from the economies of scale provided by improved mechanisation. It further benefited from the introduction of technically qualified professionals, such as chemists, metallurgists and mining engineers, although the usefulness of geologists had yet to be recognised commercially. With the rise of such professionals, technical societies formed and flourished. At the same time international financial markets and trade were expanding, a gold standard was widely supported and the financing of mining ventures was well established. Mining was an international business and its people travelled widely. As a consequence of the better-educated mining professional, the ready exchange of knowledge and the availability of finance, new processing techniques such as pyritic smelting, the cyanide process and flotation were developed. These, together with much improved materials handling in the mining and processing phases, dramatically changed the economics of the minerals industry.

Jan 1, 2004

The sudden. explosion of relatively inexpensive digital process control computers has accelerated interest in the possibilities of economic savings by their use. In particular the metalliferous industries have shown that they are willing and capable 6f grasping this new technology and putting it to good use. These industries have a number of problems which need special attention. In many cases the process is difficult to measure and a reaction is often controlled by measuring a secondary effect, computing its relationship to the reaction and then applying the necessary corrective action. This creates problems in building the process model, designing the computer to process interface and in the subsequent system development. Environmentally the metalliferous industries create conditions which severely test sophisticated electronic equipment. Care taken in locating and housing this equipment is a major factor in ensuring reliability in Operation.

Jan 1, 1977

The Palmer River rises in the Windsor Tablelands area of the Paleozoic Hodgkinson Basin, 110 kilometres northwest of Cairns. It flows west across the Palmerville Fault and Proterozoic Dargalong Metamorphics to the Mitchell River. East of the Palmerville Fault, its course lies immediately south of the onlapping Mesozoic Laura Basin conglomerates, sandstones and siltstones.Gold occurs in quartz reefs in the Hodgkinson rocks of the Maytown District, in narrow quartz veins in the Dargalong Metamorphics, in the basal conglomerates of the Mesozoic, and more importantly, in alluvial bars within the Palmer River.

Jan 1, 1986