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By G Lumley

Gold miners have been underperforming the price of gold for a number of years. So why has the æmarketÆ undervalued our gold miners relative to what they have been mining? The low valuation ascribed to gold mining companies is largely attributable to their profit performance. In the period since 2006 the price of gold in A$ has risen about $900/oz, but the real cash margin (operating cash costs + cost of finding and/or acquiring deposits + the cost of bringing them into production) has only risen about A$100. Rising operating costs are a major part of this reduction in real margin. Energy and labour costs have risen more than the inflation rates across a number of countries as have taxes, royalties, etc. There are however, more significant contributors to the rising cost base. Firstly, in 2006 the average gold grade was 2.0 g/t; today it is 1.3 g/t. Secondly, strip ratios (for surface mines) have increased by 19 per cent during this time. Open cut mining equipment unit output across the world has dropped by 26 per cent during 2006 - 2012. Finally, costs have risen by 55 per cent during this time period. Consequently, there is now 3.8 times more mining cost required to produce an ounce of gold from surface mines compared with 2006. The decline in gold grade looks to be a permanent trend as does increasing strip ratio if output is to be maintained. Costs will continue to rise although cost control will be necessary. Reversing the decline in equipment performance and closing the gap between median and best practice provides the hope for a sustainable reversal of cost increases. The current gap between best practice and median performance has grown to 112 per cent for mining trucks, 168 per cent for excavators and 169 per cent for front end loaders. Closing this gap is the potential for a more profitable future. For most gold mining companies improving mining efficiency is not an option; it is an imperative.CITATION:Lumley, G, 2013. How many gold mines will inefficiency kill?, in Proceedings World Gold 2013 , pp 267-276 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 26, 2013

By Ramsden AR, French DH

The limited contrast range of conventional black and white imaging does not enable full use to be made of the dynamic range of the video signal obtained from a scanning electron microscope or microprobe. The use of false colour substantially increases the information that can be derived from such images enabling relationships to be displayed that cannot be observed in black and white. This capability is now used extensively in combination with quantitative electron microprobe analysis as a research tool for ore characterization and host rocks studies related to minerals exploration in the CSIRO Division of Exploration Geoscience.

Jan 1, 1989

I am honoured and very pleased to have been given the opportunity this evening to say a few words of thanks not only on behalf of all the guests but especially for the delegates and accompanying persons attending the 13th Congress of the Council of Mining and Metallurgical Institutions. Firstly, I would like to congratulate Sir Hamilton Whyte,KCMG for his most interesting address. In his far ranging talk, when he showed knowledge of widely diverse subjects, I had a brief fear that he was going to be talking about the details of support methods in deep level mines, or how to avoid flotation problems in multi-metal mines. Although he did not go that far, he touched on subjects which have arisen this week - long term planning and secure supply of minerals at acceptable prices. The dire predictions of the Club of Rome have been debunked with a far more elastic supply of minerals having been proved. Combined with the importance of a falling birthrate in some parts of the world, this will lead to many changes in the future, when hopefully governments will take the long term view rather than look at the next budget or the next election. Maybe some of them are not too lazy to do this for all of us. However as a fellow Ukranian, I feel that he might have been called something different if he had been in Australia. Sir Hamilton, thank you for your talk. Once upon a time - and this is not a fairy story - there was a cobbler who had two sons; one very bright who became a professor of mathematics; the other, dim, who became a millionaire shoemaker. Asked for the secret of his success, the millionaire attributed it to a vital piece of economics which his father had imparted, "Be content with small margins on a large turnover." "So", said the millionaire, "I make my shoes for $2 a pair and sell them for $5. I am very happy with the three per cent profit."

Jan 1, 1986

Mineral Processing Education in China

Sep 13, 2010

The Crown Minerals Act provides a new+framework for the management of Crown owned minerals and requires that regard be had for the principles of the Treaty of Waitangi. The Act requires the preparation of Minerals Programmes to achieve the Act's objectives of efficient allocation of rights and the recovery of a fair financial return on its minerals. Efficient allocation requires that a permit is allocated to the party which values it most highly. A fair financial return to the Crown must be considered in the context of the economic rent available from individual mineral projects, with the proviso that a nil return to the Crown as the owner of the resource will not be considered a fair return from the community's perspective.

Jan 1, 1992

By P Davidson

For many years, in numerous settings, the need for a language-fair and culture-fair assessment test has been identified as a significant issue for employment and selection for training of remote indigenous community members. Pivotal to the successful implementation and application of such a test is for it to gain the acceptance and trust of the local indigenous communities as a fair assessment and for it to provide organisations with an accurate predictive tool. However, when western tests have been used with indigenous groups, inherent language and cultural bias have had a significant negative impact in terms of community acceptance. These have also affected the accuracy of performance predictability. The Queensland Test was developed to overcome these problems. Originally developed for use in Papua New Guinea, it reduced training failures by 20 per cent. Later refinements were made and it was used with Aboriginal Australians. Since 2002, assessment tests have been used by the Freeport mine in West Papua to support their recruitment, selection and training processes for the local indigenous community, the Seven Suku Tribes. The initial process included the application of standard æwesternÆ assessment tests, which did not provide valid selection predictions, with community members and elders describing these tests as unfair and the organisation being concerned that the results were not accurate. A trial of the Queensland Test was conducted and a high correlation was established between the performance of FreeportÆs current Seven Suku employees as assessed by their managers and their Queensland Test results. Based on the results of this pilot the Queensland Test was successfully implemented as the primary selection tool for potential employees from these local indigenous groups. The testing materials and method gained community trust and support, with tribal elders describing the Queensland Test as a fair and suitable selection tool for their community members. Such results have sparked an interest within the Australian Mining industry, with similar results being reported from a recent trial. The Queensland Test has been implemented at a major site in Queensland and is being investigated for use elsewhere.

Jan 1, 2006

As an older member of The AusIMM, I received my 30 year æPearl AwardÆ in June and had my 50th birthday two weeks ago, I am honoured to be here today. I thank those responsible for their confidence in me and in my ability to hopefully hold captive a broad group of individuals who are here as equals, sharing an interest, no a passion in blasting technology and associated works à over the two days you will hear some excellent operational and technical presentations I am sure. But today I will digress; I want to talk about the importance of leadership and how it indeed can be the catalyst for success, improvement and change. There has been much written about leadership, its principals, the charismatic leaders, the doÆs and donÆts and so on à and I for one am not about to give you the Holy Grail; there are many experts with greater wisdom than I on this subject matter. What I do want to do is explore the application of this passion to examples within the world stage and some examples drawn from my experience in mining.

Jan 1, 2007

By Fradd WP

South Australia pioneered metal mining in Australia and was the main source of copper for several decades. Gold discoveries and mining also contributed significantly to the development of the Colony. Across the State can be seen the holes, the mullock heaps and, in some instances, the remnants of machinery of the past era. In this, the centenary year of the discovery of the Teetulpa goldfield, considered by some to he the most significant discovery of gold in the State, it is appropriate that we should present a paper on the history of gold mining in South Australia. South Australia has not been a major producer of gold with recorded production a little in excess of 15 million grams (15 t). This represents about 0.25 per cent of the Australian total and ranks last of the States of the Commonwealth. The outstand- ing feature of gold production in South Australia has been the succession of short periods of rela- tively high production immediately following a discovery, with payable dirt being quickly exhausted, a fact clearly illustrated by the graph of South Australian gold production (Figure 1).

Jan 1, 1987

By S Lockie, G Ivanova, J Rolfe

One of the consequences of mining expansion in the Bowen Basin region of Central Queensland in Australia has been a substantial increase in demand for housing, with subsequent impacts on housing and rental markets. Those pressures are reduced to some extent by a proportion of the workforce choosing to live in other centres and commuting to workplace for block periods. The main factors influencing location choice are: housing availability and affordability, basic urban services and lifestyle of the town and the town physical attractiveness such as coastal town. Low costs housing provided by the mining company acts as an attracting factor for some miners to live in the mining town. Recommendations for three short-term and two long-term strategic policy guidelines to address housing situation and location issues are provided.

Jan 1, 2009

A search for the keyword nano reveals that it has not made a significant entry into the mineral processing research literature. In contrast, the terms micelle, colloid, interface, and monolayer are well established there. By considering nanoscience as colloid and interface science at the nanoscale, it is claimed that several previous and current investigations in the broad field of mineral processing fall under the umbrella of nanoscience. Several examples from hydrometallurgical processing systems (invisible gold and activated carbon in gold extraction; monolayers, reverse micelles, and microemulsions in solvent extraction; nanobiofilms and nanoparticles in biohydrometallurgy) are highlighted in support of this view.

Sep 13, 2010

By S Hanke, J Burden, P Spies

The Waterview Connection will complete Auckland’s long-planned Western Ring Route, a 48 km north-south motorway alternative to State Highway 1 that bypasses the central city to the west. The project involves construction of 5 km of new motorway – half of it underground in tunnels – to connect the Southwestern (State Highway 20) and Northwestern (State Highway 16) motorways.The Western Ring Route will link the major population and industrial centres of Manukau, Auckland and North Shore to give the region the connected and resilient strategic road transport system it needs to underpin economic growth and sustainable development. It will also provide a direct motorway link between Auckland’s central business district (CBD) and international airport.The project involves construction of twin 2.4 km driven tunnels with an outside diameter of 14.41 m beneath residential suburbs, a major arterial road and a rail corridor. Enabling works began in January 2012 while tunnel construction using an earth pressure balance (EPB) tunnel boring machine (TBM) began in November 2013.This presentation introduces the Waterview Connection project, its role in the development of the Auckland motorway network, its procurement process, the alliance delivery model and an overview of the project’s design features and construction progress to date.Design and construction highlights of the presentation include the TBM start-up, turnaround and breakthrough arrangements as well as the experience gained during the first tunnelling drive. The presentation also covers an innovative process developed for invert construction behind the TBM that is independent of tunnel excavation.CITATION:Spies, P, Burden, J and Hanke, S, 2014. The Waterview Connection Project – progress to date, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 519–540 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

The Resource Management Act has been in force now for approximately ten months. This Act, and the Crown Minerals Act which accompanied it, have substantially changed the manner by which mining operations and other resource uses obtain access to resources and are subject to controls of their environmental effects. This paper briefly summarises the key elements of the regulatory provisions of the Resource Management Act. It identifies the types of resource consents required, and discusses these and procedural matters in relation to mining in Otago. It addresses the transitional provisions and highlights inconsistencies and difficulties in the implementation of these provisions. This paper identifies potential future developments in the planning and regulatory environment relating to mining in Otago.

Jan 1, 1992

THIS SYMPOSIUM ON AUSTRALIAN BEACH SANDS IS MOST TIMELY; WHEN WE ARE APPROACHING PEAK PRODUCTION FROM THESE RESOURCES AND WHEN PRICES ARE GOOD, BUT THE RESOURCES CAN BE SEEN TO BE COMING TO AN END IN THE LIFETIME OF OUR YOUNGER COLLEAGUES - 20 TO 25 YEARS AS WE HEARD FROM ROY TOWNER TODAY. THE SPREAD OF PAPERS HAS BEEN 15 PERCENT EACH ON GEOLOGY AND THE MINERAL RESOURCES, WITH 25 PERCENT ON LAND USE AND ENVIRONMENTAL PROBLEMS. I AM PLEASED TO SEE 20 PERCENT HAS BEEN ON TREATMENT PROCESSES AND 25 PERCENT HAS BEEN CONCERNED WITH DOWNSTREAM USES. I SUSPECT THESE RATIOS ARE DUE IN PART TO THE WAY PAPERS WERE CALLED FOR, BUT THEY ALSO SUMMARISE CLOSELY THE BALANCE OF INTERESTS IN THE INDUSTRY. NOTE AGAIN; 30% CONCERNED WITH SUSTAIN -ING RESOURCES, BUT 25% WATCHING LAND USE AND IMPOSING CONTROLS; 20 % IMPROVING THE PRESENT PROCESSING, AND A HEALTHY 25% WITH AN INTEREST" IN WHAT HAPPENS TO THE MINERAL CONCENTRATES. I SHALL RETURN TO THIS FOURTH POINT AT THE END OF MY REMARKS. THE POSSIBILITY OF ADDITIONAL HEAVY MINERAL SANDS IN NEW AREAS WAS HINTED AT BY M.S. SHEPHERD (EG TERTIARY SHORELINES OF THE MURRAY BASIN). OLD FOSSIL SHORELINES, WELL REMOVED FROM PRESENT SHORES ARE AN IMPORTANT MINERAL SOURCE IN CHINA AND IT WOULD HAVE BEEN INTERESTING TO HEAR FROM THE SEVERAL COMPANIES EXPLORING IN THE MURRAY BASIN. I ALSO NOTICED THAT WHILST OUR MONAZITE

Jan 1, 1986

Production scheduling of open pit mining is a key area as it deals with the management of operating cash flows of mining companies. The efficiency of long-term schedules is usually assessed with economic criteria such as net present value (NPV), discounted cash flow rate of return (DCFROR) and payback period, which are not sufficient on their own for revealing the complex picture of the decision-making process.This paper offers a thorough analysis of the most important contemporary criteria of long-term production scheduling, as way to provide the mining practice with a new approach to the decision-making process. The list of criteria includes technological, economic and probabilistic ones. A detailed case study is provided aiming to illustrate the applicability of the criteria for comparing the scheduling approaches regarding the economic interests of a mineÆs owner and contractor. The results obtained can be used for revealing new trends in the current methodology of open-pit production scheduling optimisations.

Sep 26, 2011

Thank you for your introduction and the opportunity to speak at such an important forum. I feel honoured to be the Tas McKee speaker for this yearÆs conference. I can honestly say that Tas McKee typified the spirit that has ensured the survival of the mining industry despite the modern-day challenges that we encounter. He was one of the most influential people in the New Zealand minerals industry. In 1938, with his father and brother, Tas established Lime & Marble Limited. Over its history, this company evolved from its original base of marble mining to diversify into gold mining and exploration for other industrial minerals, uranium, precious and base metals. He was truly a pioneer that persevered against the odds.   That leads me to the subject of my discussion today. I am going to delve into todayÆs challenges as they apply to gold companies. While we gold miners should be generating record returns, the gold industry shareholder return performance in this buoyant market has barely equalled that of the gold price. It is a dilemma but one that can be resolved with the right strategy.

Jan 1, 2006

India is on fast economic growth. Even in the turbulent years of global crisis, it could achieve a growth of over eight per cent. In recent past, Indian Government has been contemplating a faster growth in all the sectors of economy so as to make the nation an economic power in the world.Steel is a versatile material. It has its role in most of the major industrial activities, such as infrastructure, automobiles, urbanisation, consumer durables and other. In other words, steel is a part and parcel of industrial expansion, urban and rural development. It is rightly admitted that steel acts as pillar of any development model. Volume of steel consumption is the barometer which measures economic progress and/or industrial status of any country.India and China are the two countries in Asia which have the significant impact on the global steel industry. Of course, China is much ahead of India in consumption level of steel.

Dec 6, 2010

I once read an æarticleÆ in FHM Magazine entitled æThe Coolest Jobs There Ever WasÆ. It was about a group of guys who were pursuing careers that any person on the planet would just kill for. I distinctly remember drooling over the pages, thinking how much I would love to be Michael SchumacherÆs Chief Engineer at Ferrari, or the Principal Designer and Tester for one of the big Dutch rollercoaster companies. From that moment on, I decided that I wanted a career that was cool enough to make it into the pages of that article. Throughout my time at university, I always had that article in the back of my mind. As a result I constantly wondered about what sort of job I could end up with once I left university. More importantly, I wondered if FHM would be banging down my door to put me in the magazine! After a long and stressful job hunting process (in between completing a thesis and studying for exams) I finally managed to land myself a job with Orica Mining Services. I can honestly say I didnÆt know what to expect when I first joined Orica. Most of my friends ended up working for big mining companies, while I was offered a position with one of the biggest suppliers to these mining companies. However, I had a feeling when I was discussing the role with my future supervisor during the interview process that the job was going to be awesome. I have now spent a year working for Orica and I absolutely love it! While I feel that my job is worthy of being in that FHM article, unfortunately, I donÆt think I am going to get my opportunity to be in the magazine. Apparently I donÆt look too good in a bikini! However, I would love to have the opportunity to discuss the journey that I have taken so far û from my time as an environmental science graduate, then moving on to mining engineering, to now, being part of the Orica Mining Services Graduate Program. My suggestion is to use this paper as a resource. I have learnt during my time at university, as well as my time in the workforce, that the best people you can learn from are your peers. Take what you feel is relevant from the paper; hopefully it will help guide you in shaping your own career.

Jan 1, 2005

Both here and in Australia, the unique commercial and tax features of joint venture are finding favour in forestry, fishing, technology and infrastructure projects. For New Zealand mining companies, joint ventures provide a means of access to foreign know how and investment funds, while retaining their corporate independence and their hard-earned tax losses.   This paper discusses some of the practical income tax and GST considerations where a joint venture structure is contemplated. The first part of the paper considers income tax, and in particular how joint ventures enable companies to access and carry forward tax losses. It explains why a joint venture may be advantageous relative to a jointly owned company.   The second part of the paper concerns GST and the focus is on two aspects: 1.   Joint ventures may be registered for GST. In some instances they have no choice and are required to do so. Where a joint venture is registered in respect of a taxable activity, the members are not permitted to register in respect of the same activity. This may be problem where the member has incurred its own expenses and the member wishes to register in its own right to claim back the GST on those expenses. This paper explores the issue and possible solutions. 2.   It is not uncommon to see joint ventures claiming GST on the costs of production, and the production being sold (and GST is being charged) by the members. In this paper we consider whether these arrangements have a tax risk, and what can be done to make them technically sound.

Jan 1, 2005

Control of construction projects is the responsibility of the Project Leaders who have the authority to make decisions. Project Controls cost and scheduling systems provide the Leaders with timely information on which to base their decisions.The Client (Owner) will invest up to three per cent of the project cost on Project Controls. To ensure that this investment is effective, the Owner or Manager must have a clear understanding of the information required from the Project controls systems. If appointing a single Managing Contractor, the Owner or Manager must stipulate what is and what is not required from the Project Controls Systems. There are numerous computer programs available for scheduling and cost control and it is important to select systems which best serve the Owner's needs.

Jan 1, 1993

The green field discovery of a two million ounce high-grade refractory gold ore deposit in the Indonesian Province of Sulawesi Utara, led Newmont to utilise its proven technical expertise in dry grinding and whole ore roasting to develop a 2000 tonne per day, 160 000 ounce per year operation in this remote and picturesque location.Located at an elevation of 250 in above sea level and ten kilometres to a deep water natural harbour, the hard rock open pit mine, process plant and infrastructure facilities were built to budget at a capital cost of US$132 million. The plant was commissioned with oxide ore, with the first gold poured in March 1996 and with refractory ore in January 1997. The operation rapidly met its production targets because of extensive forward planning and training programs developed for the local workforce. The presence of steep topography, fertile coastal plains, high rainfall, high seismicity of this location led to the decision to dispose of neutralised tailings in deep water off the coast instead of impounding tailings in a dam. This paper describes the development of the project and the challenges in developing a gold operation in a remote location which lacked infrastructure, the steps taken to ensure a smooth commissioning, and the selection of the workforce to operate a technically sophisticated facility.

Jan 1, 1997