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By Patrick R. Stephenson

The current version of the JORC Code was issued in 2004 and since that date the Australian Securities Exchange, in collaboration with JORC, has issued a number of companies? updates to provide guidance on various reporting issues. An interim review will be undertaken during 2010 to meld these updates with the current 2004 Code. This will be followed by a full review during 2010/11 covering all aspects of the Code and focusing particular attention on: ? clauses / guidelines relating to Exploration Results1, exploration targets and the reporting of historical estimates; ? issues relating to the Public Report2, including definition, the requirements for Competent Person sign-off, level of disclosure and mandatory requirements; ? guidance on techniques to quantify resource / reserve estimation uncertainty; ? the level of study required to convert Mineral Resources to Ore Reserves, and disclosure of prices and economic factors; ? expansion of the requirements for reporting of marketable material for bulk commodities; ? the use of language and tone that anticipates new and emerging technologies and techniques for the qualitative and quantitative measurements of data; and ? linkages to valuation and the valuation code (The VALMIN Code). Although the Canadian and Australian reporting regimes for public statements on Exploration Results, Mineral Resources and Mineral (Ore) Reserves are similar in intent and coverage, they differ in detail, sometimes substantially. Canadian requirements are generally more wide-ranging and prescriptive than Australian requirements, including in the need in many situations to publicly lodge a Technical Report, a requirement that does not exist in Australia. Australian-listed companies seeking to list in Canada, and Competent Persons seeking to act as Qualified Persons in Canada, need to ensure that they are fully conversant with Canadian regulations and how they differ from those in Australia.

May 1, 2010

By Roussos Dimitrakopoulos

Conventional approaches to estimating reserves and optimizing mine planning and production forecasting result in single, often biased forecasts. This is largely due to the non-linear propagation of errors in understanding orebody attributes from a limited finite number of drilling data, throughout the chain of mine planning and mining. A new mine planning paradign is considered herein to include two interacting and potentially fusing elements: stochastic simulation and stochastic optimization. These two elements provide an expanded mathematical framework that allows the modelling of orebody uncertainty and its direct integration to mine design, production planning and valuation of mining projects and operations. This stochastic framework has shown to increase the value of production schedules in the order of 25%. In addition, case studies show that stochastic optimal pit limits are about 15% larger in terms of total tonnage, compared to the conventional (deterministic) optimal pit limits. This difference extends life of mine and adds approximately 10% of net present value (NPV) to the NPV reported above from stochastic production scheduling within the conventionally optimal pit limits. Furthermore, results suggest a potential new contribution to the sustainable utilization of natural resources.

Oct 1, 2009

By J. C. Mitcheson

Mr. President, Mr. Mayor, Ladies & Gentlemen: IT GIVES ME great pleasure to have the opportunity, today, to speak on behalf of all the constituent. bodies of the Common-wealth Council of Mining and Metallurgical Institutions. For the past month we delegates have been right royally entertained across the length and breadth of Canada by Provincial Governments, City Councils, and other equally generous public organizations and private corporations. On this occasion, however, the President of The Canadian Institute of Mining and Metallurgy, our good friend Dr. H. J. Fraser, has been our host at the enjoyable reception preceding this Institute Luncheon, which luncheon was sponsored by our official host, The Canadian Institute of Mining and Metallurgy, one of our .constituent bodies.

Jan 1, 1957

By Louise H. Michaud

Albian Sands Energy is scheduled to begin production at its oilsands operations in the fall of 2002. Start-up includes the selection and implementation of over 75 IT systems or computer applications. These include engineering applications, systems required to control mining activities, maintenance, the processing plant and utilities, and also systems required to run the company, such as human resources, finances and inventory/warehousing. This paper outlines the processes used for the selection, implementation and integration of these systems in order to optimize the use of information and to meet the technical, business and IT requirements of the company. The first step in Albian?s approach to identifying system requirements is the development of a Business Activity Model, outlining all tasks involved in running the operations. The computer applications required to accomplish each task are then identified by having the IT team work closely with each technical and business unit. Historically, at some companies, the selection of systems has been lead by the IT team or by consultants, with little input from the technical or business units. Typically, this results in products that don?t meet the company?s expectations. To ensure a more positive outcome, Albian believes that it is imperative that the company?s technical and business people are closely involved in the selection process. Integration of the IT systems is also key, including linking all applications through a Data Warehouse and EDMS. Over 120 required integrations have been identified. This ensures the storage of all data in only one location, data security, and easy data and document retrieval for all requirements throughout the company.

May 1, 2002

By Elmer Stewart, Richard May

"The Central Mukur deposit was discovered by the Semipalatinsk Geological Exploration Expedition (GEE) during detailed searches from 1977 to 1980. Andas Altyn Ltd., a Kazakhstanian gold mining company acquired the property and commenced mining in 1995. In 1998, Andas-Altyn Ltd. became a wholly owned subsidiary of Eurasia Gold Corporation.The Central Mukur gold project covers a linear series of parallel, discontinuous zones of near surface oxide gold mineralization that covers a distance of 7 kilometers and extends past the property boundaries. The oxide gold mineralization is a result of the regional oxidization of a primary sulfide gold mineralization emplaced in a series of shallow dipping thrust faults. Resources as calculated by the GEE are 3.45 mt at an average grade of 1.84 gmt Au in the C1 +C2 category and 7.52 mt at an average grade of 1.80 gmt Au in the P1 category. The Central Mukur Gold Heap Leach Mine consists of an open pit, heap leach pads, and an ion exchange resin gold recovery plant. Limited gold production (<2,500 ounces/year) has been achieved over the past three years leaching run of mine oxide gold mineralization. Gold recovery utiling cyanide to dissolve the Au and ionic resin technology to recover the Au for the leachate is approximately 60%. Loaded resin is shipped to a treatment plant at Almaty where the gold is stripped from the resin, refined and sold.This paper will describe the geology, mining, and processing of the Central Mukur ore. In addition, it will describe what it is like doing business in Kazakhstan and the transition from a Soviet style operation to a more western style operation.INTRODUCTIONThe Central Mukur Mine is owned and operated by Andas-Altyn Ltd. a Kazakhstanian gold mining company located in northeast Kazakhstan. Andas-Altyn is a wholly owned subsidiary of Eurasia Gold Corp., a Canadian public company listed on the Alberta Stock Exchange. The Central Mukur mine consists of a small open pit, and a heap leach operation that utilizes ion exchange resin to recover gold from pregnant solutions. In addition to the Central Mukur mine, Eurasia also owns the Myaly heap leach gold project which is also operated by Andas- Altyn Ltd."

Jan 1, 1999

By P. Oyanader

"In 2001, the Catholic University of Chile undertook a maintenance benchmarking study of six open pit copper mines having mill capacities varying between 18,000 t/d and 156,000 t/d, and collectively responsible for 58% of Chilean copper production. This paper describes the methodology used to conduct the study, as well as the overall results. Key performance indices were selected to measure the effectiveness, efficiency, and development of the maintenance process. Using a balanced scorecard philosophy, these indicators were divided into client satisfaction, financial, internal process, and learning and growth indices.Maintenance was found, on average, to be responsible for 44% of mine production costs. Percentage planned maintenance of equipment fleets was found to be low by world standards, averaging 35%, 56%, and 44%, respectively, for blasthole drill, shovel, and haul truck fleets. Fleet availabilities were found to be significantly influenced by the percentage of planned maintenance achieved, while maintenance cost per equipment was found to decrease non-linearly with increases in percentage planned maintenance. Investment in technical training (including planned maintenance practice) was found to be low by global standards. The paper concludes that fleet availability and maintenance costs in Chilean open pit operations could be considerably improved by improving and/or developing maintenance planning standards, and investing in training personnel in planned maintenance techniques"

Jan 1, 2005

By Alex Cormode, Carlos Perucca

"Sylvinite ore from the Saskatoon area typically contains about 5% insolubles, occurring as clays and carbonates. These insoluble slimes must be removed sufficiently well to permit an efficient subsequent potassium chloride flotation, due to their high adsorptive capacity for amines used as potash collectors. The insolubles are liberated from sylvinite by high attrition scrubbing in a slurry. The liberated slimes are separated by multistage cycloning or by a selective flocculation-flotation process.An outline of the potash processing operations at Agrium Vanscoy Potash Operations is given, emphasizing the insoluble slimes froth flotation separation process. This process was originally implemented at the Agrium plant in the mid- 1970's and replaced a hydrocyclone system.IntroductionAgrium Vanscoy Potash Operations is located 40 Km southwest of Saskatoon, almost midway between the communities of Vanscoy and Delisle. Processing operations started in 1969, and the annual production capability was subsequently increased to the current 1.8 MM tonnes per year of muriate of potash.The mining operation at Agrium Potash which was described in a paper by Jones and Pruggerl , is done underground using four large continuous double rotor boring machines for the main production with development done by heliminers. Annual ore production is 5.5 MM tonnedannum. Ore is hoisted 1,100 m to surface for processing."

Jan 1, 1999

By Unkown

To the Membership of the Institute Gentlemen: The Mineral Industry of Canada in 1948 The preliminary estimate issued by the Dominion Bureau of Statistics and tabulated in the Bulletin of January, 1949, indicated that the value of Canada&apos;s mineral production in 1948 reached an all-time high of $808,180,216, showing an increase of 25 per cent over the previous record of $644,696,007 established in the preceding year. The output value of metallics was increased by 22.4 per cent; of fuels, by 43.7 percent of other non-metallics, by 19 per &apos;cent; and of structural materials, by 16.8 per cent. The value of metals produced in 1948 at $483,770,759, was about $87,000,000 more than in the previous year. There were substantial increases in the tonnages of copper, lead zinc nickel, and other base metals produced, but the rises in market prices for such metals accounted for most of the gains in output values. Production of gold at 3,495,403 ounces valued at $122,339,105 indicated an increase in volume of approximately 500,000 ounces and an increase in value of 14 per cent. Despite the benefits provided under the Emergency Gold Mining Assistance Act 1948 the volume of gold produced in the year was still nearly 2,000,000 ounces less than the record of 5,300,000 ounces established in 1941. The value of mineral fuels produced in 1948, at $158,787,255, was 44 per cent above the 1947 total. Coal production at 18,431,250 tons valued at $107,298,757, while substantially higher than in the preceding year was still half a million tons below the record reached in 1942. Striking developments in the Leduc field in Alberta were responsible for bringing the output of crude petroleum in the year to a new high of 12,098,166 barrels, valued at $36,858,959.

Jan 1, 1949

By Gavin C. Dirom

? The Mining Association of British Columbia (MABC) was established through an Act of Parliament in 1901 ? The MABC represents the interests of B.C.?s ? Coal and mineral mining companies ? Smelting companies ? Advanced stage development projects ? Key areas of work: ? Environment, Health and Safety ? Policy & Government Relations ? Knowledge and Information Services

May 1, 2008

By James F. Archibald

Research has been conducted for the Workplace Safety and Insurance Board of Ontario (WSIB) to characterize thin, spray-on lining materials (TSLs), as well as combinations of TSLs and conventional spray supports, and to assess their capacity for inhibiting damage created by mining-induced rockbursts. This study has been performed to assess the capabilities of such support systems for preventing rock and support material damage that often results due to rockbursting. A variety of TSLs and other spray support media were subjected to the effects of simulated rockbursting, through use of explosive detonation trials, to evaluate their damage mitigation capacity. Results have validated that TSLs and variant layer combinations may be as effective as or better than conventional support materials for mitigating rockburst or like damage in highly stressed mine environments. In civil engineering construction, and typically in underground tunneling operations where concrete linings are applied, liner deterioration is a continuing and pervasive problem that often requires expensive and time-consuming rehabilitation effort. The ability of TSLs to provide effective concrete structural reinforcement while providing sustainable resistance against underground or restricted environmental hazards, as with fires or dynamic failure events, may permit wider use of TSLs than is currently foreseen by the mining industry. Significant benefits for use of TSL materials in concrete liner rehabilitation and for concrete material protection have been assessed.

May 1, 2006

By Chris Bennett, Glen Kosick

"Process modeling and equipment sizing procedures for SAG circuits has advanced significantly over the past two decades. However, no matter how exact the hardness tests, models and scale-up calculations, if the ore samples being used for design do not accurately represent the orebody then major design errors can be encountered. This paper will describe a hardness testing method for identiQing the power requirement profile of an orebody, to an extent that design errors due to poor sampling can be greatly reduced or avoided altogether. It will provide some insight into the magnitude of hardness variability that can be encountered in an orebody. Finally, the paper will preview how detailed hardness distribution data can be incorporated into mine block models, to optimize SAG circuit design for an orebody, both fi-om a capital investment and throughput point of view.INTRODUCTIONIt has long been known that many SAG/AG' circuits experience wide swings in throughput. These throughput variations are almost always of a magnitude not anticipated in the plant design; consequently, they are detrimental to the expected return on investment for the mining companies. It is clear that the throughput swings are mainly caused by changes in ore hardness. In 1993, in an attempt to address this problem, MinnovEX began investigating the possibility of using a small scale SAG test (2 kg charge) to predict SAG power requirements from drill core samples. The objectives of the small scale test were to enable mining companies to do many more SAG hardness tests than currently undertaken for a particular orebody. To make this possible, the SAG tests had to use a minimal amount of sample, be cost effective, and give acceptable accuracy in the prediction of SAG power. If this small scale SAG test proved accurate, then the high sampling frequency would yield results that approach the true hardness distribution of an orebody. This hardness distribution could then be used to derive the distribution and variability of specific energy required throughout the complete orebody. This specific energy (kWh/t) can be thought of as the power required to grind one tonne of ore per hour (kW/tph) to a specified size. Once the true distribution of power requirement throughout the whole orebody is understood, the grinding circuit design team can make an informed decision regarding the hardness value that is most appropriate for sizing the SAG equipment. Throughput losses due to hardness variation could be deliberately planned for or avoided altogether (a capital cost decision)."

Jan 1, 1999

By John G. Payne

The Pebble deposit contains three contiguous zones. In the Pebble West zone, granodiorite stocks intrude gently warped volcanosedimentary rocks that had been intruded by diorite sills and two felsic intrusion breccias. In the Central zone, volcanosedimentary rocks are cut by diorite and granodiorite sills; the latter are genetically associated with the granodiorite stocks. In these zones, widespread potassic alteration consists of brown biotite and K-feldspar, with abundant quartz-carbonate-sulphide vein stockworks. Chalcopyrite/pyrite ratios range from 2/1 to 1/20. Diorite hosts the highest-grade mineralization, with much of it being disseminated. Patchy, later phyllic alteration is moderate and commonly depleted in copper. The Pebble East zone occupies a granodiorite stock and intruded host rocks below an eastwardly thickening wedge of barren Tertiary volcanic and sedimentary rocks up to 600 m thick. Brown biotite alteration and copper mineralization are strong, with chalcopyrite/pyrite ratios commonly over 1/1. The zone extends to a depth of at least 1200 m below surface; some drill holes bottomed in strong mineralization. Later, weak to moderate sericitic alteration removed some chalcopyrite and locally remobilized gold. The Pebble deposit has a Measured/Indicated resource of 3 billion tonnes grading 0.28% Cu, 0.32 g/t Au and 0.015% Mo (= 0.5% copper-equivalent) and an Inferred resource of 1.13 billion tonnes grading 0.30 g/t Au, 0.27% Cu and 0.015% Mo (0.55% copper-equivalent). The Pebble East zone has an Inferred resource of 2.13 billion tonnes grading 0.55% Cu, 0.34 g/t Au, and 0.037% Mo (0.97% copper-equivalent). The Pebble East zone is open to the east and to a lesser extent to the north, south, and to depth.

May 1, 2006

By Kallioinen Jouko

"Advanced Flotation Technology is the application driven design of Don-Oliver flotation cells to achieve the optimum performance for each type and grind of flotation. Optimum performance is the combination of both recovery and selectivity.Optimized performance is the combined product of optimized mixing and effective froth removal. Optimized mixing is applied to roughers, scavengers, cleaners and specialty cells such as those to float hydrocyclone underflows in both primary and regrind circuits in order to reduce overgrinding. Effective mixing for fine material is easy, but overmixing reduces selectivity in frothbed.Selectivity in flotation is an important target, especially when treating complex ores, and parameters in frothbed have been examined to improve the separation of minerals and eliminate circumstances that reduce separation rate.Advances in process control have been achieved with expert controls and instructive operator information data. This has gained a higher degree of understanding of cell operation and ore type being processed to be used in future process development work. Excellent results of this Advanced Flotation Technology have been achieved and designs through 7000 cu ft (200 m3) are currently available for high capacity concentrators. This paper will detail how flotation cells are more responsive to the exact requirements of the duty specified."

Jan 1, 2000

By Donald Leroux, Martin Suichies, Andy Trusiak, Chris Dechert

"In modem concentrators, the operation of flotation machines is often stabilized by simple control loops. Froth level, slurry density and aeration rate are all physical parameters typically controlled through classical PID loops. Few concentrators, however make use of advanced computing technologies for controlling the grade of flotation product streams. Technical challenges such as long process delay and the long and uneven sampling interval of on-stream XRF analyzers often restrain their implementation. Model Predictive Control (MPC) is known to have better performance than PID for controlling processes with long delays (such as flotation circuits). This paper describes the implementation of a multi-input/single-output (MISO) MPC algorithm and an FIR model identification routine using an object-oriented graphical computing environment.The MPC module (controller and identification) was implemented on an industrial control system and applied to many sulfide flotation circuits in the Brunswick Mining concentrator (New Brunswick, Canada). In most cases, the manipulated variable was the collector addition. As long as it is provided with decent process models, the performance of the MPC controller is good on all the flotation circuits on which it was applied. Significant reductions of grade variance are reported and the controller responds well to set-point changes. The user-friendly, graphical nature of the computing environment led to a high degree of acceptance by both the process engineers and the flotation operators.1. INTRODUCTIONOver the past three decades, much instrumentation has been developed for flotation machines. The introduction of instruments such as pulp density gauges and cell level probes was particularly well received by the plants where pneumatic and electronic controllers were available for implementing PID control loops. In a way, these simple loops revolutionized the mineral industry. The operation of flotation circuits could then be stabilized through the use of automatic controllers."

Jan 1, 1999

By Paul H. Atkinson

"Sampling in the mineral processing industry has always been a subject which has received considerable discussion. There have been many volumes written on theory, techniques and practical application of sampling. However, until recently, the companies were not completely aware of the potential savings available with properly designed sampling systems both to assist in pieces: control and final product values.Definition In our discussion today, we will define sampling as the operation of removing a part, convenient in quantity for analysis, from a whole, which is of much greater hulk, and removing it in such a way that the proportion and distribution of the quality to be tested, i.e. size of particle, moisture content, specific gravity content, mineral and chemical composition, are the same in both the sample and the whole.Application It has been well established that undetected errors can result in large economic losses, thus most firms depend upon some type of sampling and sample analysis as a control in their continuous processing of materials. Despite the large investment in facilities and personnel the ""analysis"" of a sample can be no more accurate or reliable than the sample on which it is being based. The importance of sampling is recognized by a great many but it is appreciated by only a few, largely because it is sometimes one of the items which is taken for granted."

Jan 1, 1976

By A. O. Dufresne

The mineral wealth of pre-Cambrian rocks in Canada has been the subject of much study by geologists and engineers (members of this Institute), particularly so in the past few years, following discoveries of mineral deposits in areas far a part. This interest is well worth sustaining knowing the numerous rich producing mines within the pre-Cambrian formations, and the vast area covered by its rocks throughout this country. The pre-Cambrian has yielded minerals, both metallic and non-metallic; of these a much diversified list could be made. In more than one district we can point to mining as being responsible for the opening up of new sections, attracting a population into regions which otherwise would have remained virgin land of little commercial value. In these pre-Cambrian formations are found the rich copper deposits of Michigan, producing without interruption since 1845, and from which seven billion pounds of copper has been won; while in Minnesota and the adjoining district, at the head of Lake Superior, are mined iron ores which have rendered possible the great steel manufacturing industry of United States, the base of the economic structure of that wealthy country. The pre-Cambrian has given Canada the nickel-copper mines of the Sudbury district, the silver deposits of Cobalt and the gold camps of Porcupine and Kirkland Lake. With all of these our members are familiar; and it suffices to mention them to bring to mind pictures of the wealth and &apos;the growing population, in a word the importance of mining in?those sections of the country.

Jan 1, 1926

By C. S. Parsons

Introductory The steady advance in the price of lead and zinc in the metal markets of the world during the past few years has resulted in an active search for new deposits of these metals, and to the re-examination of known properties that are now idle. There are a number of deposits of these metals in eastern Canada, the best known of which are the Tetreault mine at Notre Dame des Anges, Que.; the Reader mine on Calumet island, Que.; the Stirling property in Cape Breton, and the Federal mine in Gaspe district, Que. . The author has run concentration tests on the ores from the first three mentioned properties. The ores from Notre Dame des Anges and Calumet island presented problems in concentration which were not successfully solved until the past year. Although considerable experimental work has been done by the Ore Testing Laboratories on the ore from the Stirling mine we have not been successful in developing a satisfactory method of treatment. Character and Types of Ores Metallurgically the lead-zinc ores of eastern Canada may be classified into three distinct types as follows: First: - Ore in which the sulphide minerals are fairly coarsely crystalline and can be freed by crushing to 40 or 60 mesh. The zinc blend has a high iron content (not marmatite) and gives a dark brown colour on grinding. The ores of Notre Dame des Anges and Calumet island, Que., may be cited as examples.

Jan 1, 1925

"The McArthur River uranium deposit is the single richest uranium ore body developed in the world to date. The ore body’s average grade is 15% U3O8. Proven reserves are in excess of 450 million pounds. The grinding circuit is located underground. The ground ore is pumped to a surface facility where the slurry is thickened and loaded into containers for shipping to the Key Lake mill 78 kilometers to the south.The paper will briefly describe the mining method employed. The underground ore handling and grinding circuit, and surface facilities including slurry load out, wastewater treatment and the freeze plant will be described in detail. The paper will emphasize radiation and safety procedures that are followed to minimize operator exposure to radiation risks.LOCATIONThe McArthur River mine is located 78 kilometres north of the Key Lake mill. It is located at latitude 57’ N in northern Saskatchewan, within the southern boundary of the Athabasca formation. The nearest town is Pinehouse, located 320 kilometres to the south. Access to the mine is by an all weather road and by a private airstrip.HISTORYThe McArthur River Operation is jointly owned by Cameco Corporation (69.805%) and Cogema Resources Inc. (30.195%). Exploration for uranium in the McArthur River area started in 1980 by the Saskatchewan Mining Development Corporation, a predecessor company of Cameco.In 1984, a 12-kilometre long basement conductor was identified at a depth exceeding 500 metres. Systematic exploration drilling of this conductor resulted in the discovery of the P2 North deposit. Subsequent surface drilling programs from 1989 to 1992 delineated a narrow ore zone over a strike length of 1700 meters at a depth of 500 to 600 metres. At this time, geological reserves for the deposit were estimated to be 2.4 million tonnes at a grade of 5.0% U3O8 for a uranium content of 260 million pounds U308"

Jan 1, 2001

By J. T. Chen, S. Winkler, M. J. Worswick, O. Orlov

This paper presents a review of research conducted at the University of Waterloo concerned with the application of aluminum alloy sheet and tube in automotive structures and body panels. The research has focussed on formability prediction and results using a range of damage-based formulations. These models include continuum-level damage approaches and, more recently, a so-called percolation damage approach intended to capture microstructural heterogeneity effects on damage development. This paper presents applications of these damage approaches to simulate formability of experiments considering stretch flange panels. The experiments consider drawbead effects associated with the bend/unbend deformation as the material flows through the drawbead. Recent work on simulating in situ X-ray tomography experiments that capture damage evolution during tensile deformation will also be reviewed.

Jan 1, 2006

By Andrew Bamber

Between the early 20th Century and the present, the production of mined copper ore has increased from tens of millions of tonnes per annum to several billion tonnes per annum, an unprecedented increase. Contemporaneously, the average grade of mined copper ore has declined from over 2% to approximately 0.5%. Again, in parallel, the price of copper has increased dramatically to reflect the increasing cost of extracting and beneficiating such large amounts of low-grade ore. Within the period the copper price however exhibited several periods of intense volatility, driven by interrelationships between demand and supply, themselves strongly driven by periodic industry developments in the fields of exploration, ore extraction, mineral processing and extractive metallurgy. It is notable that these periods of intense innovation exhibit a strong correlation to preceding periods of price, demand or production volatility. This paper examines key trends in each theme between 1900 and 2018 and draws strong conclusions as to the interrelationship between them. INTRODUCTION The production of copper metal has increased from around half a million tonnes per annum to over fifteen million tonnes per annum over the course of the 20th Century. Contemporaneously, the average grade of copper ore mined has declined from over 2% to approximately 0.5% copper by weight. As a result, the volume of Run-of-Mine (ROM) copper ore required has increased from around ten million tonnes per annum to over a five billion tonnes per annum over the period, an unprecedented increase. The adage is that demand drives supply, that prices rise in times of high demand and/or short supply, and that prices fall when supply catches up with demand. The market sellers in biblical times knew this well; mediaeval market sellers equally. Dutch tulip sellers in the 1600’s experienced both in extremis — much to their dismay — and the great industrialists and early capitalists of the industrial revolution knew this also. Mining recently went through a cycle where investors and producers both believed that the “old” rules did not apply any more and that the industry was in a “supercycle” where prices would continue to rise on the back of increasing demand. However, as the GFC of 2008–2011 showed, this was not to be. Another adage says that we constantly innovate to lower costs of production. Is this true? Do we only innovate to lower cost? Has the true cost of producing copper actually gone down over the century? Or are there other balancing forces at play? Herb Kellogg, in his Centenary address to the American Institute of Mining Engineers (now SME), categorized two types of innovation: ‘Bigger and Better’, and ‘New Process’ (Kellogg, 1970). ‘Bigger and Better’ allows increased production at presumably lower cost; ‘New Process’ supports the same result at presumably the same scale, but at significantly enhanced efficiencies and (therefore) lower cost. It is suggested that both types of innovation are constantly and interchangeably required to achieve the kind of scale-up, at achievable operating and capital cost that the industry has achieved over the period. What can be shown, over this last Century and a bit, is that supply and demand are indeed inextricably linked, price and demand are linked, but so are price and cost of production. And the innovation required to sustain that weaves in between them all, cost-effectively increasing production capacity or lowering the cost of production at the same throughput, and sometimes both.

Jan 1, 2019