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Block caving is the lowest cost underground mining method but it has relatively high risks and a high up-front capital and development cost. It has application to large, often lower-grade orebodies where high production rates can provide good returns on the investment. However, it has a range of technical risks that are peculiar to block caving and the usual financial, political and environmental risks that may be exacerbated by the long lead-in times associated with the development of a block cave operation. With initial development costs that may be $100 M to $1000 M when the building of a treatment plant is also required, it is obviously important to minimise and manage the risks. In a greenfield project, commitment to a substantial proportion of the capital expenditure may be required to gain access to the deposit, and the decision to proceed at this stage would be based very largely on interpretations of drill hole data. In established mines the data may be supplemented by geological mapping and past experience, etc. The quality of this data is critical and yet it is frequently degraded through poor techniques and avoidable omissions. The final decision to proceed would be assessed on projected commodity prices, mining capital and operating costs, dilution and run of mine ore grades. The latter will vary over the life of the project and these can be estimated with drawdown or draw control modelling techniques. In this modelling, there are further risks in the assumed modelling parameters or that the modelling technique may not be applicable or appropriate. The paper addresses the most critical technical and operational risk areas and provides some practical precautions that can be taken to reduce these and improve the reliability of the geological and geotechnical models.

Jan 1, 2000

By D Tucker, K Harney

Hatch forecasts that an increasing share of seaborne traded iron ore will be ultrafine, being either concentrate or pellet feed. This provides several challenges for the iron and steel industries, but the principal concern is: how much ultrafine iron ore can be consumed on sinter strands and with a minimal effect on productivity?This paper will identify new supply by project through 2020. Demand will be estimated for sinter production and practical steps will be identified to increase ultrafine consumption in sinter strands. The long-term iron ore price will be forecast to balance supply and demand. The paper will conclude by assessing how the pricing of ultrafine ore will develop relative to the Chinese iron ore indices.CITATION:Tucker, D and Harney, K, 2015. Iron ore ultrafines challenges and opportunities, in Proceedings Iron Ore 2015, pp 501–504 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

To enable ammonium nitrate-fuel oil (AN-FO) to be used on an equal weight basis with nitroglycerine explosives, smaller diameter bore holes became necessary with consequent modifications to drill steel and burden on holes. Detonation of AN-FO in small diameter holes proved successful both with and without primer charges but some alterations were required to adapt anoloders to the smaller holes.Important factors in training all operators in the new charging method were the retention of improved fragmentation, avoidance of excessive overbreak and keeping wall rock dilution to an absolute minimum. The successful storage of ammonium nitrate in climatic conditions with daily temperature fluctuations above and below the critical 90°F has been achieved.INTRODUCTIONTechnical aspects of ammonium nitrate-fuel oil (AN-Fa) blasting agent are well covered in recent literature. This paper deals primarily with the manner of its introduction as the principal explosive underground at Great Boulder Gold Mines Ltd. and with the many problems encountered in the process. Following reasonably successful experimental firings in June 1962', using granular ammonium nitrate and an anoloder, permission was granted by theWestern Australian Mines Department to carry out test work in selected areas of the mine. The permit allowed for fuse firing only, and for a mixture of AN-Fa containing between 5t and 6 per cent fuel oil, with an adequate primer.The use of AN-Fa on an equal weight basis with nitroglycerine explosives, involved smaller diameter holes with alteration to ground burden and modification to drill steel.Initial tests indicated that it was apparent that AN-Fa could not replace gelignite on an equal weight basis if the...

Jan 1, 1965

By D R. Wines

The design of near-surface civil infrastructure requires detailed consideration of the geological/ geotechnical conditions, excavation geometry and sequence and ground support measures to ensure stability of the underground openings and minimal impact on overlying or adjacent infrastructure. Twin parallel road tunnels have been designed and built with connecting cross passages and a piggyback busway tunnel as part of a large infrastructure project in Australia. The tunnels were excavated in poor to fair quality rocks using road headers. Temporary ground support includes shotcrete, rock bolts and canopy tubes. Extensive numerical analyses have been performed to analyse the expected behaviour of the tunnels during excavation, including two-dimensional analyses using UDEC and three-dimensional analyses using FLAC3D. Structural defects in the rock are explicitly included in the 2D analyses to examine the potential for localised ground instability. The stress redistribution is captured by the 3D modelling with an accurate representation of the complex excavation geometry and the detailed excavation and support sequence. This paper presents the modelling methodology, numerical results and discussions on integrating both 2D and 3D analyses to achieve reasonable design.

Mar 8, 2011

By A A. Latscha, D O’Connor

Increasing orebody complexity, restrictions in ground access, and longer lead times for disturbance approvals, have generated the need for the Resource Development Team within Rio Tinto Iron Ore (RTIO), to explore optimised drill design techniques that deliver resource conversion value while maximising program outcomes. In response to this challenge, the Team initiated a case study to produce an AI assisted/designed drill program using a non-machine learning AI. The case study involved the assessment and implementation of an AI generated drill program at one of RTIO’s Pilbara iron ore deposits, located in the Hamersley Province of Western Australia. The Mineral Resource is currently classified as 100 per cent Inferred. Access constraints inherent to topography, and the presence of exclusions zones have prevented adequate drilling coverage, resulting in lower resource confidence and a poor definition of the orebody extents and geometry. The drill campaign, planned in Q1 2023, needs to consider access constraints, complex topology and the limitations related to additional ground clearance, while addressing the requirement of improving orebody knowledge. The drill plan had to address two objectives. The first and main aim of drilling was to upgrade the Resource Classification to allow for possible conversion to Ore Reserve. The input for this objective was a volumetric representation of the areas currently not meeting pre-defined quantitative Resource Classification upgrade criteria. The second objective was to better define the orebody extents and geometry. For the second objective, the input to the drilling optimiser was a volumetric representation (blocks) of the areas of high uncertainty in the mineralisation/waste boundary, which were defined using an indicator conditional simulation technique. The drilling optimiser output was a range of compliant drill plans. A set of KPIs based on economic and orebody knowledge criteria were used to assess the plans and to select the most optimal drill design to be drilled in 2023. The geology and management teams were able to make better informed, objective decisions using the trade-off between cost and orebody knowledge gained. As part of the assessment, the AI generated plans were compared to our current planning practises. The AI assisted plans, when gauged against the project KPIs, showed clear and measurable improvements in both meeting project objectives and in managing operational risk.

May 24, 2023

By R Baumgartner

The Canahuire deposit is a recently discovered Au-Cu-Ag epithermal deposit in Southern Peru. A geometallurgy program is a key study element of the project Feasibility study. Metallurgical, mineralogical, and comminution studies have been completed over a suite of samples, spatially distributed among the various geological/ore domains. The early stage of Canahuire presents challenges as there is a lack of metallurgical information to guide geometallurgical sampling, in contrast with an established deposit at a more advanced stage of development or mining. Nevertheless, the available information will assist in the development of geometallurgical domains for Canahuire in order to ensure that future metallurgical, mineralogical, and comminution test work is representative of the deposit variability. This supplementary knowledge will be able to predict important metallurgical parameters which will be incorporated into a geometallurgical model to spatial predict material types, metallurgical recovery and through put. The information obtained will be a valuable addition to the future mine plan, influencing process design, engineering design, plant operation, operating and capital costs, and ultimately will reduce project development risk.

Sep 5, 2011

By C Itotoh, K O’Halloran, L Karlson

Global methods used to explore for minerals have progressed relatively slowly since the development of the first diamond core drill in 1863. Since then, key developments such as wireline geophysics (1920s), the tricone drill bit (1930s) and aeromagnetic surveys (1940s) all occurred in response to global events. In this project, BHP’s WAIO Geoscience operations team hypothesise that a global movement towards a greener future as well as an increasing intolerance for safety events will drive another step change in exploration methods. We have leveraged our relationships with exploration contractor partners and industry leaders to develop a realistic vision for 2033 and beyond, where drill rigs, earthworks and geophysical units are operated and maintained remotely; emissions of dust and waste are eliminated; hazardous energy sources are controlled; procurement is based on sustainability rather than cost and carbon emissions are tracked with the same rigour as production metrics. We have combined these visions into a series of graphical illustrations with the aim of inspiring ourselves, our vendors and our peers to collaborate further on producing a step change in our industry.

Sep 18, 2023

By K Ehrig, V Liebezeit, Y Li, B Pewkliang, M Smith, E Macmillan

Pre-concentration of low grade ores via the rejection of low/no value materials based on fragment size is the subject of many published papers and studies over the past decade. However, the possibility of upgrading should not limited to low grade ores given the high cost of capital, energy, water, reagents, and ultimately tailings storage across the mining industry. Mining and processing facilities at Olympic Dam consist of an: 1) underground mine where ore is extracted via sublevel open stoping and 2) integrated processing plant located on the surface which produces Cu-cathode, Au-Ag bullion and uranium oxide concentrate. Blasted ore is trucked/trained to underground crushers which produce an ore feed with a product size P80 = -145 mm. Crushed ore is then hoisted to the surface and delivered to the ROM pads via an overland conveyor. The typical copper grade of mill feed is approximately 2 wt%. A rapid assessment of the potential to upgrade Olympic Dam mill feed prior to the ROM pads via rejection of low value materials based on fragment size was completed using existing data. Three separate datasets were utilised to assess the deportment of Cu, U, Au across size ranges of 200 mm down to sub-8 m. Cumulative grade vs cumulative mass distribution graphs for each element were produced. This data clearly demonstrates that Cu, U, Au grades remain constant down to ~212 m, which happens to be the liberation size of the sulfides. Hence, no potential to upgrade the ore stream via rejection of +200 mm - to ~212 m sized materials prior to milling. Mineralisation within the Olympic Dam Fe-oxide Cu-U-Au-Ag deposit (IOCG) occurs as disseminated sulfide grains within granite- to hematite-rich breccias. The typical sulfide grain size is sub-200 m that supports the outcomes of the grade deportment by fragment size study.

Nov 10, 2020

By J Darbritz

"This paper details the events leading up to a slope failure that occurred at Kalgoorlie Consolidated Gold Mines (KCGM) and the remediation method executed using rope access specialists.n January 2016, KCGM Fimiston Pit experienced a double bench wall failure where approximately 80 000 t of material fell from the wall that blocked access to a ramp and caused minor damage to equipment.The event was triggered by heavy rainfall and occurred along unfavourable eastward dipping structures that lead into weaker shale/porphyry bands, which in turn left more material on the face. A remediation plan was formulated that would allow for the continuation of open pit operations while a full geotechnical assessment of the failure area could be conducted. This was accomplished by means of rope access specialists who abseiled down the wall and blasted off the remaining overhang using a portable drill rig and prepackaged explosives.This paper provides a brief overview of the KCGM operations, how the instability was identified and monitored, details of the failure event, outcomes of the geotechnical assessment and details on the remediation work.Citation:Graf, C and Sullivan, R, 2016. The Journey to Steepening the Pit Slope Angle - Advancing the Effectiveness of Wall Control, in Proceedings Ninth AusIMM Open Pit Operators' Conference 2016, pp 104–114 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Nov 15, 2016

By D Howe

The Athena gold deposit was discovered in 2007 by Gold Fields Australia Ltd, at the St Ives Gold Mine, 35 km southeast of Kambalda, Western Australia. Gold anomalism was identified in sheared Paringa Basalt as a result of a regional scale aircore drilling program, in association with geophysics. In the 18 months following discovery, the deposit was intensely drilled and by June 2009, it was announced that the Athena deposit contained an ore reserve of 1.7 Mt @ 5.6 g/t for 316 koz. This was followed by a feasibility study, and as a result mine development commenced in November 2009.The Athena mineralisation is hosted in a discrete, north-south striking, steep to moderately dipping shear zone within the southwest dipping Paringa Basalt. Vein intensity has a strong correlation to grade and vein type varies from early thin quartz-albite-sulfide (pyrite and/or pyrrhotite) shear parallel veins to strong brecciation and irregular veining with quartz-albite-actinolite-biotite-pyrrhotite infill. The geology preproduction process developed at the Argo mine was refined and improved following a business improvement project. The aim of the process is to construct detailed geological interpretations prior to development allowing informed mining decisions to be made. The process delivers significant cost savings and revenue enhancements.The development of macroscopic classification scheme was critical to determine ore or waste in the early phases of mining. The Style of Deformation, Alteration and Veining (SAV) Code was the result, and has been enhanced as greater geological knowledge is gained over time.

Aug 22, 2011

By B Klein

This paper stems from research and development in sensor and sorting technologies towards future sustainable mining undertaken by the UBC Mine-Mill Integration group in collaboration with MineSense Ltd. Sensors and sensor-based technologies such as ore telemetry and sorting are envisioned to be a significant component in achieving such ‘invisible’ future sustainable mining. Such technologies offer high flexibility and power in use: delivering valuable information from the very preliminary stages of mining exploration through to final upgrading of the ore preceding the fine comminution stages. This paper reviews sensors and sorting as enabling technologies towards a future smart mining operation and introduces a model in which sensor-based exploration (down-the-hole sensing), ore exploitation (smart-shovels), transportation (smart-conveyors) and preconcentration (sensor-based sorters) are effectively integrated to increase the present value of operations. It is anticipated on the basis of several case studies that an effective use of sensor technologies through tomorrow’s ‘smart mine model’ should lead to several positive impacts ranging from increased mining production, to reductions in transport costs, overall energy use and waste generation. In this way sensors can be used to maximise the profitability and present value of the mining operation from the exploration stage through to mine closure.

Nov 22, 2011

By A J. Burchell

The introduction reviews the tunnelling carried out in Singapore since the early 1980s. Between 1983 and 1990, Phases 1 and 2 of the mass rapid transit system were constructed. These included some 20 km of bored and cut and cover tunnels together with 18 underground stations. Some particular points of interest in this massive project are briefly commented upon. Reference is also made to other underground or underwater schemes undertaken during this period such as the proposed large caverns project and the submerged tunnel to Pulau Seraya. A description of the subsurface works, now under construction in Singapore, follows. This includes an all underground North-East railway line 20 km long with 16 stations. At a budget of US$ 3 billion, this is a major civil engineering undertaking. Another project is the extension of the railway to Changi Airport which involves 3.5 km of twin tube tunnelling together with a major underground station which is fully integrated into the airport terminals. An on-going program of further major railway extensions over the next 10 to 15 years is in place and an outline is given of some of the most important underground sectors. Other proposed projects such as the underground roads system and the deep level sewers are briefly described. Together they demonstrate the very significant volume of underground construction scheduled for the next century in Singapore.

Jan 1, 1999

By D Will

RedrossThe Redross orebody averages 1 m wide, has a strike of 50 - 350 m, dips at 55° and has a basalt footwall and an ultramafic hanging wall. The most successful and innovative aspects of mining Redross were:•ore development innovations, 90 per cent of development was split fired with a shanty back profile to enable larger and more productive equipment to be used and resulted in higher development grades, improved project payback time and improved ore recovery;•hand held stoping using a multiple level, bottom up ‘V’ shaped hand held stoping method that allowed mining on multiple levels with hand held productivities between 50 and 90 tonnes per shift;•the use of 1 m cement pillars and 7 m high crown pillars were used to create multiple mining areas that enabled high overall production rates from hand held mining this orebody; and•the use of vertical cement pillars to enable hand held mining of adjacent stopes without leaving ore pillars.MarinersThe Mariners orebody averages 3 m wide, has a strike length of 50 - 250 m and dips at 50° with a basalt footwall and poor ultramafic hanging wall. The most successful innovative ideas of re-opening Mariners were:•Dewatering the existing mine workings utilising ‘oilfield’ technology by installing a long submersible pump in on existing pump rising main. This enabled the mine to be dewatered at rates up to 100l/ sec and helped overcome the 45 to 55 L/s inflows.•Overcoming the technical problems associated with Mining N07 ore blocks which had severely deteriorated from being underwater for five years by using reverse firing techniques to improve extraction rates and reduce dilution.•Mass firing a large mining block in the N08 with minimal void space because of deteriorating ground conditions.•Use of a longhole version of the Redross hand held mining method to achieve 100 per cent extraction of the N09 higher grade lenses.

Mar 21, 2011

By M Badawi, Y Foucaud, C Veloso, J Laine, A C. Araujo

Iron is one of the most exchanged commodities worldwide. Its use for steelmaking explains the growing demand in the metal which remains mainly produced by the mining and the beneficiation of iron ores. Flotation is the most used mineral separation technique worldwide, processing several billion tonnes (Bt) of ore annually, including, in some cases, hematite and magnetite ores. Based on the physicalchemical properties of mineral surfaces, flotation aims to selectively adsorb molecules that render mineral surfaces either hydrophobic or hydrophilic, known as collectors and depressants, respectively. Hydrophobic particles are then recovered in the froth by the injection of gas bubbles travelling up in the cell and attaching the hydrophobic particles. However, despite the popularity and the good performances of flotation, mining industry faces new challenges of decreasing grades and increased mineralogical complexness in ores. Many flotation variables, especially when related to reagent adsorption, remain poorly understood and it becomes necessary to gain knowledge to enhance the existing processes. Molecular modelling techniques like the density functional theory or molecular dynamics simulations (ie Classical molecular dynamics or Ab initio Molecular Dynamics) currently represent powerful tools for different applications in material sciences, like catalysis or depollution purposes. They have recently been successfully applied in the flotation area, with an increasing number of publications dealing with this topic every year. These tools provide crucial information on bulk and surface properties as well as on the adsorption mechanisms of reagents on mineral surfaces, key step in the flotation process, and synergetic effect of collector mixtures. A better understanding of the adsorption mechanisms of flotation reagents, provided by molecular simulations, will help to finely choose flotation reagents, and even lead to the development of new reagents formulations. Overall, these tools enable the discovery of practical and industrial solutions to improve the flotation process, which will undoubtedly help the mining industry to face its future challenges.

Nov 8, 2021

By T Clemens, D Trumm

Adopting environmentally acceptable practices in New Zealand is a crucial requirement for mineral wealth development. Recent planned expansions in the coal industry have increasingly placed mining in the media spotlight. A lack of appropriate national environmental guidelines has resulted in inconsistent responses and assessments of current and prospective mine sites. Such inconsistencies have lead to delays in decisions on developing economic mineral deposits that may have only minor short-term impacts, and have also allowed unacceptable environmental management practices to continue elsewhere.   A research collaboration between CRL Energy, Landcare Research, University of Canterbury and University of Otago aims to provide regulator groups and the mining industry with a unified approach to the requirements of the Resource Management Act 1991, which is the legislation that predominantly drives the nationÆs environmental policies and guidelines. The tangible outcome of this research programme will be guidelines for an integrated decision-making framework based upon robust multidisciplinary science. The result of this unified process will facilitate the development of viable mineral deposits and prevent excessive environmental impacts.   The framework will be derived from a synthesis of four objectives. Objective 1 identifies potential water quality impact. This objective is based on a targeted geochemical study of the lithology and waterways of the West Coast and Southland. Objective 2 categorises the degree of impacts on the ecology of receiving aquatic ecosystems and determines the processes that drive aquatic ecosystem recovery. Objective 3 identifies best strategies to sufficiently manage impacted ecosystems, and to prevent future unacceptable impacts. Objective 4 combines the findings of Objectives 1 - 3 into a standard decision-making framework. The development of this framework development will include wide consultation with representatives of the mining industry and regulator groups. It is anticipated that this multidisciplinary approach will provide a robust and coherent, standardised system that will assist in achieving industry and environmental targets.

Jan 1, 2004

By H Barrie, L Ameglio

"Current methods for acid rock drainage (ARD) mitigation revolve around insulation of the waste from oxygen in the atmosphere with water and dry (soils and liners) covers. Both are of limited effectiveness and present significant drawbacks. Furthermore, while they reduce oxygen influx, they reduce but do not prevent ARD.The inert gas mixture (IGM) technology has been designed to overcome the deficiencies of gas transfer into tailings and waste rock materials across the surface and instead block oxidation by controlling the transfer of oxygen from the atmosphere. Inert gas is injected into the mine waste at low flow rates and the positive but low flow purges the oxygen that tends to diffuse into the sulfide waste across the surface. The positive flow of IGM compensates for inward oxygen diffusion and creates a pressure drop across the cover layer preventing inward diffusion of oxygen and, hence, acid generation.The IGM processes are evaluated in this paper: theoretically, with a review of the theory of ARD and the current state of knowledge about the performance of notably dry covers as atmospheric oxygen barriers via models to predict the performance of the IGM technique practically, with a bench-scaled experiment.The results demonstrate the effectiveness of IGM to prevent oxidation of sulfide minerals and ARD in waste rock. The laboratory experiments further identified key variables to be used to monitor performance and control efficiency of IGM, which is now awaiting field-scale application.The IGM technology is a patented process by Terraquest Technologies Ltd (Canada) in USA, Canada and Australia. The IGM technology can be cost-effectively manufactured on-site with commercially available compressors and gas filtration membranes. It is predicted that low-cost covers can then be utilised with IGM, which in turn lowers the overall capital costs of ARD mitigation.CITATION:Ameglio, L and Barrie, H, 2015. Acid rock drainage prevention using inert gas mixture technology, in Proceedings Tailings and Mine Waste Management for the 21st Century, pp 85–96 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jul 27, 2015

By D Capstick, M B. Ebell

This paper describes the test work, process design, commissioning and operation of a processing system at the Ergo gold operation that improves the extraction efficiency from gold tailings material. The improvement in recovery is derived from the separation of the gold contained within the sulfides of the tailings material and a dedicated process stream to recover that gold.The sulfides are separated by means of a flotation circuit and that resulting concentrate is subjected to a regrind of below 20 ¦m to enable a greater liberation of the gold. The ultra-fine material is then subjected to a dedicated leach circuit to recover the now exposed gold particles.The case study is an example of the challenges of introducing new technology and methodologies to a well-established operation and thereby attaining improved efficiencies and tangible business benefits.CITATION:Ebell, M B and Capstick, D, 2013. Improving extraction efficiency from Witwatersrand gold tailings using flotation and ultra-fine grinding of concentrates, in Proceedings World Gold 2013 , pp 301-306 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 26, 2013

By P Salmon, M Kennedy

Sun Metals Corporation Pty Ltd (SMC), a wholly owned subsidiary of Korea Zinc Co Ltd (KZC) is a company formed to develop, construct and operate a zinc refinery, 11 km south of Townsville in North Queensland. The project opportunity exists because of on-going consumption growth for refined zinc metal, technological, environmental and economic obsolescence of existing zinc processing plants, and a prolonged ædroughtÆ of new zinc processing capacity under construction. The Project will utilise proven technology developed by KZC at the Onsan refinery in Korea. The Townsville Refinery has been designed to be the most environmentally-friendly zinc refinery in the world, and in particular to resolve the issue of secure, long term treatment of the ironbearing content of the zinc raw materials.

Jan 1, 1998

This paper deals with the evolution of Canadian shaft sinking technology over the last 15 years. Most, if not all, shaft excavation projects in Canada prior to 1990 were sunk using traditional benching methods with labour intensive equipment. In the late-1980s, J S Redpath Limited of North Bay, Ontario, Canada, were contracted to deepen the shaft at Atomic Energy of Canada LimitedÆs Underground Research Laboratory (URL) located in southern Manitoba. The laboratoryÆs role was underground hydrological and geomechanical research, so the project offered both time and opportunity to conduct additional experiments while sinking. The offshoot of the research program was the true birth of the Canadian version of full-face, long round shaft sinking technology. Throughout the 1990s, this sinking method has been further refined over a number of shafts. The results have been faster sinking rates, a safer work environment and an overall improvement in project economics.

Jan 1, 2002

The lignites of Otago and Southland offer a potentially viable future feedstock for electricity production and possible conversion to petrochemicals or liquid fuels. The deposits, when combined, represent New ZealandÆs largest energy inventory; equivalent to about 74 000 petajoules û or approximately 35 times current natural gas reserves. Too often dismissed as irrelevant to New ZealandÆs energy future because of adverse perceptions of the value of low rank coals, the strategic value of this resource is in fact huge.   Investigations of the lignites extend back over more than 50 years (LFTB various, CRL Energy Ltd). Whilst it is not the intention of this paper to review this work, these investigations have confirmed the suitability of the resource as a feedstock for thermochemical conversion. Current estimates of South Island lignite mining costs are NZ$1.0 - 3.0/GJ (Natusch 2005), making these resources amongst the most competitively-priced energy sources available world-wide.   This value, however, will only be captured if we as a country begin to envisage a world-scale, long-life, integrated and multi-faceted development sized to supply world markets for chemicals or fuels. Recent CAE studies (Hooper and Riddolls, 2005) have emphasised the vital importance of ensuring that any exploitation of this resource maximises their value to New Zealand. The question that thus must be applied is how might large-scale utilisation of the resource fit with New ZealandÆs primary energy supply, and its potential for the export of high-value commodities.   From the broader perspective of New ZealandÆs total energy supply equation we need to examine other supply options beyond just the generation of electricity. We face in this country a situation wherein almost all our liquid fuels feedstock has to be imported with projections for an increasing dependence on imported oil. In addition NZ has a natural gas reserves-to-production ratio of less than ten years, and dwindling supply from local production. Without further natural gas discoveries, New Zealand has only a window of approximately five years before we will need to commit to imported LNG or some other thermal fuels option.   In other words, New Zealand is facing an uncertain future unless we can restore energy inventories to cover an adequate strategic reserve capacity as well as enable long-term investment in alternative sources. Within this context the South Island lignite resources are thus deserving of more attention. The extent of the resource is well known, its suitability for conversion reasonably assessed, and its magnitude such that there is little doubt that lignite conversion could adequately meet NZÆs future energy needs for many years out.   This paper reviews coal gasification technology, its application to lignite and the possibilities for future development of the lignite resources. It is argued that the strategic imperative for this country is to secure the lignite resources as a primary energy source for this country well into the latter half of this century.

Jan 1, 2005