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By the use of flotation tests it was confirmed that there are two functions of oxygen in sulphide mineral flotation. Sized samples of galena and chalcopyrite were sulphidized, washed free of excess sulphide ion, and then contacted with air-saturated water for certain lengths of time. The mineral was then transferred to a sealed laboratory flotation cell containing water with a known concentration of dissolved oxygen. Xanthate and frother were added and flotation continued for 1 min.Both the extent of mineral oxidation and the concentration of dissolved oxygen markedly affected the flotation of galena and chalcopyrite. The response to a change in either variable is dependent on the level of the other, but generally best flotation occurs with the maximum degree of air saturation of the pulp. Galena flotation is hindered by oxidation of the mineral beyond a small threshold amount but a similar effect for chalcopyrite was not observed...

Jan 1, 1967

Vitrinite reflectance forms the basis of a study of coal rank variation in two areas of the Upper Hunter Valley, New South Wales, on the northern margin of the Sydney Basin. A selective analysis procedure, based on samples rom twenty-two boreholes, has resulted in a small range of reflectance values for each sample and consequently a high degree of significance for calculated mean values. The patterns of rank distribution derived from these data have facilitated an interpretation of the rclative timing of coalilication and deformation in each area.This study provides support for the suggestion by several authors that there were at least two periods of folding in the tJpper Hunter Valley. In the Hebden-Ravensworth area, minor folding took place after most of the coalilication was completed.To the west, in the region of the Muswellbrook Anticline, coalification occurred during or after the formation of this major structure. Tectonic instability during deposition of the Singleton Super-Group, in the region of the Hunter-Thrust on the basin margin, is evidenced by rank variation suggesting differential subsidence across this zone.

Jan 1, 1980

Australian rutile and zircon concentrates are refined raw materials and not manufactured products. The composition and properties of the grains are therefore fixed by nature. Specifications and assay certificates should take this into account by eliminating unnecessary provisions which only increase the time and cost of analysis.INTRODUCTIONThe raw material from which Australian rutile and zircon concentrates are isolated is beach sand on the coast of New South Wales and Southern Queensland. The principal current operations are in an area between Sydney and Brisbane.The sands consist principally of quartz particles, but they contain from 1 per cent to 50 per cent of a mixture of heavy minerals, including zircon, rutile, ilmenite, monazite, leucoxenic grains, chrome spinel, chromite, garnets, corundum, topaz, brown spinel, olivine, epidote, clinozoisite, tourmaline, magnetite, hematite, and cassiterite. The major components are zircon (25 to 60 per cent), rutile (25 to 50 per cent), and ilmenite (5 to 50 per cent).The so-called leucoxenic grains are not a definite mineral species but an alteration product of which the major components are titanium oxides and silica in varying proportions.Primary concentration is by gravity, using spirals or various forms of pinched sluice (Pullar, 1962), the resulting concentrates being redressed on wet tables. During these processes, some of the lighter heavy minerals including leucoxene and impure rutile, which tend to degrade the final rutile and zircon concentrates, are eliminated.The separation of heavy minerals from each other is...

Jan 1, 1963

Mining education has received almost continuous discussion since its inception and most people engaged in the mining industry and in mining education feel at some time the urge and necessity to express their views. This paper is not a comprehensive survey of past and present practices and accepted principles, but a personal opinion of the form mining education should take at university level. It is expressed because of a dissatisfaction with the existing courses offered to students. It is hoped to provoke discussionand bring forth guidance to those engaged in mining education. After all, students spend four or five years at a university and it is desirable that the graduate should be something more than just those many years older at the end of his course.POST GRADUATE EMPLOYMENTThe first problem confronting the university should, be to discover what the mining industry wants and expects or graduates. This must influence the university course and yet universities have done little to seek this information, and if suggestions have been offered by industry; universities appear to have made little use of them. University mining curricula are basically what they were 50, 100 and even 200 years ago. (See Appendix.) Whether this reflects the unchanging problems of mining the wisdom of early professors, the conservatism of subsequent professors or inability to apprectate necessity for changes, is debatable.Unfortunately there is no uniformity in the type of employment offered to new graduates: Some mining...

Jan 1, 1959

By A Croll

A panel cave using LHDs for ore extraction came into production at Premier in 1990 at a depth of 630 metres below surface on the western side of the mine in the BA5 mining block. A post-undercut mining sequence was used with all development on both the undercut and production levels completed prior to the undercut being advanced over the pre-developed drawbells. Support and rock mass damage on the production level was extensive as the undercut moved overhead. Undercutting and coarse fragmentation created problems. The mining sequence was changed to an advance undercut with the minimum of development and support undertaken on the production level prior to the undercut moving overhead. Only once the abutment stresses had stabilised were drawbells developed and final support installed. The height of the undercut drill design was decreased from 18 to 13 metres. The changes resulted in markedly less rock mass and support damage on the production level. Lessons learned in the BA5 mining block on the 630 level were incorporated into planning and scheduling the BB1E mining block which came into production on the 732 metre level on the eastern side of the mine in 1996. An advance undercut mining sequence was planned, undercut height was minimised and undercutting parameters were optimised in terms of the BA5 experience. Numerous problems still occurred. As the undercut area increased in size severe spalling from the cave back resulted in vertical propagation of the cave to a height of 30 metres instead of the planned 13 metres. The resultant coarse fragmentation created secondary blasting problems and an excess of undercut ore that had to be loaded and trammed, slowed the rate of undercut advance. The planned mining sequence was compromised and considerable support and rock mass damage resulted on the production level below. Once these problems had been overcome the undercut advanced at the planned rate and continuous caving initiated at the predicted hydraulic radius. At a later stage the unexpected ingress of water hampered undercut drilling and slowed the rate of undercut advance in a section of the cave. Leads and lags between adjacent tunnels and the overall face shape could not be developed as planned. The rate of natural horizontal cave propagation exceeded the rate of undercut advance and three undercut drilling tunnels were extensively damaged. More tunnel development on the production level prior to undercutting than was planned resulted. The slow advance of the undercut and high abutment stresses caused extensive damage to installed support and the rock mass on the production level, 15 metres below. Experience in the BB1E mining block on the 732 metre level has taught that an advance undercut mining sequence reduces damage on the production level markedly. Extremely tight control on the rate of undercut advance, leads and lags between adjacent tunnels and overall undercut face shape as well as extraction ratio, tunnel development and support sequence on the production level below is required. Premier Mine plans to implement a block cave at a depth in excess of 1000 metres within the next decade. All the experience gained on current mining levels together with data collection and numerical modeling is being used to plan the proposed mining operation. The geotechnical challenge of mining at this depth in weak rock has been identified as the greatest risk to the project. Challenges centre around adopting the correct mining sequence, limiting the extent of rock mass damage associated with undercutting and effective support. The hydraulic radius needed to initiate caving, fragmentation, drawpoint spacing, secondary blasting and the possibility of seismicity are geotechnical concerns that are being addressed. Results to-date suggest that a pre-undercut mining sequence with all development and support on the production level carried out only after the undercut abutment stresses have passed overhead will have to be implemented.

Jan 1, 2000

By D Mnller, J L. Mauk

The Oblaga Cu-Au skarn deposit and porphyry prospect is located in the south-eastern edge of the Gobi Desert in western Inner Mongolia. The deposit occurs within metamorphosed middle Paleozoic volcanic, plutonic and sedimentary rocks.   Ivanhoe geologists recognise eight main rock types in the area. Calcareous sediments include conglomerate, interlayered siltstone-sandstone, and limestone. Covering the calcareous sediments is a slab of thrusted biotite granite, and above it is rhyodacitic lithic tuff which, in places, is overlain by alluvial sediments. Various plutonic rocks and related intrusion breccias have intruded these units. Monzodiorite, quartz-monzonite and monzonite tend to form thin, high-angle intrusions and the youngest andesitic intrusions are generally wider and subhorizontal.   The Oblaga Cu-Au skarn, which occurs in the calcareous sediments, shows typical prograde and retrograde mineralogy. Petrographic studies show that prograde skarn minerals have been overprinted by retrograde skarn minerals, and original host rock minerals have been texturally obliterated and completely replaced. The mineralogy of the Oblaga skarn deposit is very similar to other Cu-Au skarn deposits worldwide.   Sericitic and minor chloritic alteration occurs throughout the study area and may relate to porphyry-style mineralisation. Generally, this alteration is not intense and most rocks have retained their original texture. Geochemical analyses suggest that K-metasomatism is not widespread at Oblaga. XRD analyses suggest an upward and outward transition from sericitic to chloritic alteration.   Comparisons between Oblaga and other porphyry Cu-Au deposits worldwide show that Oblaga has very similar characteristics to deposits that have undergone sericitic alteration. However, Oblaga is special because it also has relatively intense chloritic alteration, which is uncommon in other porphyry Cu deposits described in the literature.

Jan 1, 2005

Shortly after Denny, Robson, and Irwin published their first paper in 1937, on the prevention of silicosis by metallic aluminium, experiments were begun on the practical application of the discovery.It was thought at that time that aluminium powder, to be effective in aluminium therapy, would have to be intimately admixed with siliceous dust at the latter's source. There followed several years of experimental work underground, during which the application of aluminium powder was tested in:(1) Speakers on machine columns, vibrated by drills.(2) Vials placed in drill holes to be blasted.(3) Both homogeneous and heterogeneous mixture with explosives.(4) Packages with tamping.(5) Compressed-air lines.(6) Special compressed-air ejectors for use while drilling and after blasting.(7) The discharge of ventilation fans.(8) The filters of respirators.It was concluded from this research that any adequate method of introducing aluminium powder into a mine atmosphere would require too much extra gear, supervision, and aluminium p;wder, and would interfere unduly with underground routine.Later, animal experiments by Denny, Robson, and Irwin2 showed that aluminium powder provided effective therapy when inhaled independent of silica dust. Therefore, some means of surface treatment was deemed more practical.APPARATUS USED IN THE DEVELOPMENT OF ALUMINIUM PROPHYLAXIS SAMPLINGA basic requirement was a method of sampling to assess accurately the particle-size concentrations of dispersed aluminium powder. Konimetry, though regularly practised at McIrityre, was inadequate for the research in mind. On the other hand, the efficiency of the thermal precipitator was recognized as being very high. Accordingly, the latter instrument was chosen as best suited to our needs. Through the courtesy of the Ontario...

Jan 1, 1945

By B M. Washington, R R. Lovel, G J. Sparrow, M J. Fisher-White

"Work in CSIRO with several Australian ores has shown that?by heating a high-phosphorus goethitic iron ore and then leaching with caustic or acid, the phosphorus levels in the ore can be lowered to a commercially acceptable value of around 0.08 weight per cent phosphorus (P). With increasing heating temperatures up to 1300¦C, the extent of phosphorus removal increased. This is considered to be associated with mineralogical changes in the iron oxide phases in the ore during the heating.Little phosphorus was removed from four high-phosphorus goethitic iron ores containing 0.12 - 0.16 weight per cent P in leaches with boiling water. However, leaches with sulfuric acid removed ten to 20 weight per cent of the phosphorus and leaching with sodium hydroxide removed even more phosphorus to produce leach products containing between 0.08 and 0.12 weight per cent P from three of the ores.After heating at 300¦C, leaches at a low pulp density of 0.5 weight per cent solids with 1 - 5 M NaOH and 0.1 - 1 M H2SO4 gave leach products with 0.06 - 0.09 weight per cent P. The lixiviant concentration required and extent of phosphorus removal depended on the ore. At a higher pulp density of 25 weight per cent solids, leach residues with between 0.07 - 0.14 weight per cent P were obtained.More phosphorus was removed from ores heated at 900¦C. Leaches at both the low and high pulp densities, with 1 - 5 M NaOH and 0.1 - 1 M H2SO4, gave leach products with 0.05 - 0.09 weight per cent P. However, the lowest phosphorus levels were obtained after heating the ores at 1200 or 1300¦C and leaching with 1 M NaOH or 0.1 M H2SO4. Leach residues with 0.02 - 0.06 weight per cent P were obtained, even from leaches at the higher pulp density of 25 weight per cent solids. Leaching tests on heated samples under heap leaching conditions at ambient temperatures have shown that phosphorus levels can be reduced to similar levels to that achieved in an agitation leach within ten days.CITATION:Fisher-White, M J, Lovel, R R, Sparrow, G J and Washington, B M, 2013. Effect of temperature on removal of phosphorus from Australian Goethitic iron ores, in Proceedings Iron Ore 2013, pp 373-380 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Aug 12, 2013

By F Hancock

A rainfall simulator was developed to assist with hydrogeomorphic research into the stability of engineered landforms associated with rehabilitated uranium mines in the Top End of Australia. It can be used in rough terrain with slope gradients up to 30o. The rainfall simulator is modular, utilises upward jetting nozzles, has a multiple head arrangement and is capable of delivering rainfall intensities between 60 and 300 mmh-1 over areas up to 1000 m2 and could be easily modified for larger areas. Rainfall uniformity is commonly in excess of 80 per cent and the kinetic energy approaches that of natural rainfall (The modular design utilises an equilateral triangular array of rainfall stands, constructed from galvanised steel water pipes and flexible plastic hoses. Total construction costs are low. The water supply reservoir is mobile and easily constructed. An example of its use at Ranger Uranium Mine, investigating the effect of cover on rainsplash and rainwash dominated processes shows that vegetation cover is likely to reduce the erosion rate by these processes by at least four times below that experienced on bare areas.

Jan 1, 1997

By D François-Bongarçon

After a review of the progresses made on the liberation factor theory since its inception by Gy (1982), a new and surprising result of great practical importance is presented: the liberation factor. First introduced simply as a number between 0 and 1, then shown to be the ratio of two variances, is now shown to be well approximated by the proportion of liberated mineral.CITATION:François-Bongarçon, D, 2017. Evolution of the concept of the liberation factor and a surprising new result, in Proceedings Eighth World Conference on Sampling and Blending , pp 307–310 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2017

In common with general experience in the iron-making industry overseas, Australia has in recent years suffered a deterioration in the physical quality of her iron ores in their suitability as a direct blast furnace feed. The increasing amounts of fines and the more friable nature of lump ore, especially in the ore from the Cockatoo Island deposits in Yampi Sound, Western Australia, have focused attention on problems of ore preparation and agglomeration, particularly sintering.Although very small pilot scale Dwight-Lloyd type sinter machines were operated at the steel-making centres at Newcastle and Port Kembla during World War II, no sizeable capacity was installed, so that ore was charged to the blast furnaces almost entirely unscreened, and the resultant flue dust was stockpiled.Towards the close of the war, the pilot plant at Newcastle was replaced by a small machine, adjacent to the flue dust stockpile, with a rated capacity of some 20 tons per hour. After approximately five months of part-time operation, this plant was closed down in January, 1945. Production was not resumed until December, 1950, when, due to a temporary ore shortage, it was decided to supplement available ore with sinter produced from the large flue dust stocks of about 300,000 tons. In spite of mechanical and process difficulties, inherent to the design of the plant, operation was continued on a two-shift basis, with several shutdowns for extensive overhaul and plant alterations, until September, 1954, when production was put on a three-shift basis. Addition of Yampi ore fines to the sinter machine burden was not commenced...

Jan 1, 1957

Adsorption of Alkylammoniums in the Interlayer of Montmorillonite and its Effect on the Viscosity of Organo-Montmorillonite Gels

Sep 13, 2010

Up to 19 chemical parameters were studied in flotation pulps in six Australian lead-zinc concentrators with the aim of obtaining a better understanding of the nature of, and changes in, the chemical environment. This paperdiscusses pH, redox potential, and oxygen concentrations, which were all measured continuously.Two plants operated at natural pH in slightly acid circuit and one at natural pH in alkaline circuit, and pH was stable at all these plants. In two plants varying amounts of cement fill were present in mill feed and pHwas variable. At the other plant pH was controlled with soda ash and lime.Redox potentials became more positive as the pulp passed through the plant. The minimum change was 20 mV and the maximum about 250 mV. Potentials tended to be variable at any point early in the circuit, but were more stable later on. In some plants reagent additions had no noticeable effect on redox potentials. However in the two plants operating in acid circuit the redox potential of .zinc rougher feed was markedly affected by changes in copper sulphate addition rate. Sodium sulphite additions had an effect at other plants.Oxygen concentrations in grinding circuits tended to be low (30 per cent of saturation) and very variable. Flotation was usually conducted in pulps at least 90 per cent saturated with oxygen. Addition of sodium sulphite had a marked effect on oxygen content in one plant, but less effect in two others.Statistically significant relationships were found in some plants between pH and redox potential, redox potential and oxygen saturation, and oxygen saturation and pH.Improved control of copper sulphate and sodium sulphite additions could result from applications of this work.

Jan 1, 1970

Increasing demands on quality of metallurgical grade alumina and for lower production costs led to the development of a new fluid bed calcining process. The process, jointly developed in Germany by Vereinigte Aluminium Werke A. G. and Lurgi Gesellschaften m.b.H., takes advantage of modern chemical engineering methods such as counter-current flow of combustion air and solids, direct heat-exchange between combustion air and fine solids, and near stoichiometric combustion of oil in a fluid bed. Using a two-stage Venturi-type suspension preheater for heat-recovery from combustion flue-gases, the circulating fluid bed technique with internal oil combustion at 220°F for the calcining step and a five-stage fluidized bed cooler for heat-recovery from calcines, the process gives an outstanding heat-efficiency. In a first industrial plant for 560 sh. tons/day of alumina heat consumption figures of less than 1·400 B.T.U./lb Al203 g were achieved.

Jan 1, 1972

By T Graham

The invention of the traditional belt and idler conveyor system is attributed to Thomas Robins in 1892. This basic concept, ubiquitous in most mining operations, has not changed markedly in 125 years and still suffers from five forms of energy losses. Firstly, Wheeler, Roberts and Jones (2004) showed that indentation rolling losses, a consequence of the indentation a roller inflicts on the belt, consume 60 per cent of all energy. Secondly, Wheeler (2006) explained that bulk solid flexure resistance resulting from material interaction and movement absorbs 20 per cent. The remaining energy is lost by idler rotating resistance (5 per cent), belt flexure resistance (5 per cent) and secondary resistances (10 per cent).Traditional conveyor systems are continuous as opposed to batch systems, implying both positive and negative features. On one hand, continuous systems have high availability (available infers ‘ready to run’), but, on the other, utilisation of availability is often low; for example, when a conveyor is running empty or below capacity. This converts into reduced system OEE (overall effective efficiency). Many attempts have been made to mitigate energy losses and low OEE issues, including development of rail-based systems. The key drawbacks have been higher capital cost, low flexibility, poor availability and lack of market acceptance.A recent conceptual development known as the ‘autonomous rail conveyor’ (ARC) promises to address issues of energy loss and poor availability and provide increased flexibility by offering solutions for difficult applications. The ARC uses a series of interconnected skeletal bogies covered with a conventional conveyor belt as a load bed running on relocatable light rail. The bogeys have two axles, each driven by integrated variable speed-geared motor and brake systems, and are connected to previous/next bogeys by specialised couplers. Power is provided by a generator (located in a dedicated bogey) and ‘daisy chain’ plug in cables. Centralised redundant control is provided at a preferred point. Although the system is batch in nature, the number of carriages and trains is flexible, meaning that the system is effectively continuous. Loading is achieved by feeding the ARC from a perpendicularly oriented apron feeder, while material off-loading is accomplished by a twist-dump operation in which the belt is twisted through an angle of 50° below the horizontal, causing material to flow from the belt into a receiving conveyor.The ARC system can run multiple trains over any distance, although benefits are more significant in distances of over two kilometres. Capital and operating costs are predicted to be lower than competitive products, with planned maintenance being simple to perform.CITATION:Graham, T, 2017. The autonomous rail conveyor significantly reduces ore haulage costs, in Proceedings Iron Ore 2017, pp 467–472 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 24, 2017

When perusing articles which treat of mining geology, and when talking with miners on the field, one is at times unable to follow the exact thoughts intended to be expressed, owing to the introduction of occasional technical words, the meanings of which are not thoroughly understood either by the speaker or by the hearer, or possibly by both and laymen at times accuse their technical brethren of attempting to confuse them by employing unusual words in their conversations and writings. Technical words are necessary adjuncts to all arts and sciences. They creep into our language, frequently unnoticed by those who employ them, as being more concise and convenient than longer sentences to explain frequently recurring expressions. In many cases these words give the finest shades of meaning, such as aglomerate and congzomerate, but in others they are extremely ambiguous, for instance black sand, which in some places means ilmenite, in others, chromite, tourmaline, cassiterite, in fact, any black mineral occurring in the form of sand. Then, again, much confusion is cansed by the same rock or mineral having different names, e.g, jlu01'spa'i', which is known as cand, cann, cauk, kawk, blue-John, Derbyshire spar, &c. The multiplicity of local names is of course chiefly found among the more common minerals, which are widely distributed some people have a propensity for using words the meanings of which they understand as little as' they do how to pronounce them. We have heard such persons speak 'of vughs as "bugs," and oxides as "ox hides," and to show that there was no mistake in their intentions, we have seen these and other words written in the same way as they were pronounced. Then, again, some persons, relying more on examples than definitions, get a very vague idea as to what the true meaning of a term may be the word dimite is an example in point, which we have frequently heard applied to any dyke rock that the miner was unable to recognise as granite in fact, he uses the word in a general sense, just as the field geologist provisionally employs the word " greenstone " for certain rocks, until he has an opportunity of thoroughly investigating their character.

Process Simulation and Plant Design of a Mineral Selective Magnetising Flash Roasting Plant Using Neutrons

Sep 13, 2010

Characteristics Analysis of a Bastnaesite Rare Earth Mineral for Recovery of Cerium

Sep 13, 2010

The dissolution of gold in cyanide has been studied, using both chemical and electrochemical techniques. The electro-chemical studies have confirmed that gold may become passive in cyanide solution if its potential becomes more positive than -O· 5 V v. saturated calomel electrode (S.C.E.). The results of the conventional solution rate tests suggest that, although the solution rate is controlled by the rate of diffusion of oxygen at low oxygen and agitation levels, when these are increased the gold may become passive and its solution rate approach a steady value, or even decrease with increasing oxygen level. The passivity of gold has been shown to be of importance in the solution of small spheres of this metal, and in the extraction of gold from a calcined auriferous pyrite concentrate.INTRODUCTIONAlthough it has been appreciated for many years (McLaurin, 1893, 1895) that dissolved oxygen is a necessary adjunct to the solution of gold by the cyanide process, attempts to quantitatively assess its effect have led to conflicting results. For example, Barsky, Swainson, and Hedley (1934) reported that an increase in oxygen concentration improved the solution rate, but Beyers (1936) claimed that such an increase would reduce the rate at which the gold dissolved.By using an electrochemical approach Kudryk and Kellogg (1954) showed that the diffusion rate of either the cyanide or the oxygen was a controlling factor, and that, if the mole ratio of cyanide to oxygen concentration was greater than 10, the solution rate was proportional to oxygen concentration.These results, although they represent some of the most careful work available, were in direct contradiction to the findings of Mills (1951), who found that gold may become passive in cyanide solution, with a resultant decrease in solution rate.

Jan 1, 1963

By R G. Barker

This paper reviews the annual status of the New Zealand mining industry (metallic minerals and coal) including key aspects such as mineral production, mineral exploration expenditure, commodity price trends, key industry players, market activity and other significant commercial factors.   Strong commodity prices during 2006 have been underpinned by a number of key factors including US dollar weakness and emerging market demand, particularly from countries such as China and India. In real terms commodity prices have recovered significantly since 2002 and are currently at 20-year highs.   New Zealand exploration spending on metallic minerals (predominantly gold) is at a 15 year high driven by rising global commodity prices. New Zealand gold production in 2006 was about 340,000 oz and is expected to grow in 2007 as new mines at Frasers and Globe-Progress (Oceania Gold) and Favona (Newmont) come on stream. Gold production broadly lags 10 years behind exploration spending and exploration activity over the last five years remains well below that seen in the early 1980Æs. Expenditure on coal exploration shows a similar trend with strong growth from a low base over the last five years, reaching over $11 M in 2006. Total coal production in 2006 was 5.9 Mt, an increase of 10% on 2005 with imports from Indonesia adding a further $1.1 Mt.   Newmont and Oceana Gold are by far the largest public gold mining companies operating in New Zealand, although only Oceana Gold maintains a presence on the local stock exchange. Other metals explorers with New Zealand projects include a range of public-listed Juniors (market capitalisation less than NZ$50m) domiciled largely in New Zealand, Australia and/or Canada. Capital-raising on public markets directed towards New Zealand exploration is estimated at around NZ$12 M for 2006, the bulk of this coming via Glass EarthÆs NZ$10 M IPO on the NZAX in October.   The New Zealand Coal sector is dominated by the state-owned enterprise Solid Energy with around 80% market share by production. Other domestic coal competition remains limited, and includes the L&M Group, Pike River Coal, Eastern Corporation, and New Vale (acquired by Solid Energy in 2007). Pricing parity comes mainly from imported coal and global thermal coal prices have remained strong during 2006 at around US$45-55/t, driven by continued expansion in Chinese demand. Coking coal prices have eased 16% since 2005 to around US$98/t in 2007.   Although recent increases in exploration spending suggest a renaissance in the New Zealand minerals sector, long-run trends indicate that we have simply rebounded from a low base over the last five years and much work is still to be done to stimulate further growth in the mining industry to maintain minerals production at current levels. Key industry challenges include marketing exploration opportunities to local and overseas investors, building a critical mass of NZX-listed explorers and providing an internationally competitive environment to attract further capital and expertise.

Jan 1, 2007