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By O. V. Bush

Most governments recognize that energy efficiency represents a partial solution to reducing global capital shortages and environmental crises that threaten to seriously impede economic growth. Much of the United States and many foreign countries are embracing the concept of Integrated Resource Planning (IRP) which incorporates Supply Side Management (SSM) and Demand Side Management (DSM). Since SSM comes at twice to three times the cost of DSM, it makes economic sense to employ the energy conservation techniques of DSM. This paper will explain these concepts and some of the incentives being put forward by governments and utilities to promote DSM.

Jan 1, 1995

By D Craw

TheSouthern Alps in the South Island of New Zealand are currently rising rapidly as a consequence of continental collision along the Pacific-Australian plate boundary. Rapid uplift has resulted in a major thermal anomaly in the shallow crust beneath the alps. Alpine topography and associated intense precipitation, coupled with the thermal anomaly are responsible for vigorous combined topographic/convective circulation of water through the shallow crust.   Uplift is greatest in a wedge-shaped region between the Alpine Fault and an associated second-order backthrust system, the Main Divide Fault Zone, approximately 20 km to the east. The Main Divide Fault Zone is segmented into NNE and NE striking faults, which are regionally sub-parallel to the Alpine Fault, but dip northwest in the opposite direction. Reverse oblique-slip on the Main Divide Fault is in an easterly direction, with a greater component of strike-slip movement on the NE trending faults. Elevated topography in the Mt Cook region is related to thrusting of a relatively homoclinal sequence of semi-schistose rocks on top of lower-grade greywacke, which controls the position of the Main Divide. Tectonically induced fluid flow resulted in only minor alteration and hydrothermal mineralisation of fault-rocks in Alpine and Main Divide Faults, and localised deposition of quartz and/or carbonate in the immediate hangingwall.   The wedge between the Alpine and Main Divide Faults is segmented by third-order structures north of the Mount Cook region. A series of right-lateral (-085/700S) and left-lateral (-150/600SW) faults, which are synthetic and antithetic to the Alpine Fault, respectively, developed as a conjugate set during uplift. Fluid-flow in the Southern Alps is controlled by these third-order fault/fracture systems. Cu-Au mineralisation, hydrothermal veins, and surface hot spring activity are localised by third-order fault/fractures and appears to be enhanced where conjugates intersect.

Jan 1, 1995

By A D. Stewart Gillies

Resource rent taxes are taxes which only become effective at such a time as a pre-determined rate of return has been achieved by an operation. Resource Rent Taxes have from time to time been considered for implementation in bothAustralia and New Zealand. The offshore petroleum industry in Australia is already subject to RRT as is the Roxby Downs (Olympic Dam) Mine in South Australia. Both the mining and petroleum taxation regimes in Papua New Guinea include a resource rent tax component called Additional Profits Tax.   The implications of the current form of additional profits tax for shareholder cash returns are that the tax burden on the operation may suddenly increase at some stage in the life of the mine if and when the threshold level of profitability for the tax to be triggered is exceeded. From that point in time onwards the cash return to the shareholders on the capital invested is greatly diminished. For mining companies in Papua New Guinea, the effective tax rate increases from 35% to 57.75% as a result of the onset of additional profits tax. This tax rate penalty is so severe that there appears to be merit in considering the concept of managing profitability through time rather than purely maximising annual pre-tax profits as is currently the case in most mining operations. This would have the benefit of deferring or perhaps preventing altogether the onset of the tax. One possible method for the effective management of profitability is through the control of average mining grade by cutoff grade manipulation.   Traditional cutoff grade theory has usually considered taxation as a direct cost at a fixed or variable percentage of annual profits. As a result of this most analyses are conducted on a pre-tax basis. If tax is included in analyses it is usually present as a time independent function of gross profit. Additional profits tax is both time, and rate of return dependent and therefore not adequately accommodated by currently accepted cutoff grade theory.   A review has been made of the effects of resource rent taxes on both the investment decision-making process as well as possible development and mining strategies which may be employed by mining companies faced with resource rent taxes. The review includes examples based on the structure of additional profits tax which is levied in Papua New Guinea.

Jan 1, 1995

The Taupo Volcanic Zone inNew Zealand and the Philippine Mobile Belt in the Philippines are characterized by active subduction, active volcanism and high seismicity. The main factors affecting characteristics of geothermal systems in both countries are: tectonic setting, source magmas, maturity of the systems, and depth to the degassing magma body. Within New Zealand, geothermal systems are grouped into arc- and rift-type. Fluids in arc-type systems contain high amounts of volatiles (<20%), with high CO2/Cl, CO2/He, and N2/Ar ratios. Mantle-type volatiles predominate in rift-type systems. Philippine geothermal systems are largely arc-type, the topography is rugged, leading to the separation of water and vapour upflows, as opposed to the overlap found in New Zealand. The relatively shallow depths of degassing magma bodies in the Philippines results in steeper geochemical gradients, leading to higher proportions of arc-type magmatic water (>40%) and higher Cl contents (3000 - 10 000 mg/kg), Maximum temperatures are also higher, reaching up to >400¦C. Arc-type alteration assemblages in New Zealand and the Philippines are similar. Because Philippine geothermal systems are less mature, have higher temperatures and steeper geochemical gradients than New Zealand ones, advanced argillization is more widespread occurring down to depths of 2000 m. Mineral phases are more varied due to the active input of magmatic waters and the formation of vapor conditions at depth, forming P04-, B-, Li-, Ce-, F-, and Cl-bearing minerals at high temperatures. In the Philippines, high temperature magmatic-hydrothermal to contact metamorphic assemblages containing biotite, amphiboles and pyroxenes are relatively common, but rare in New Zealand.

Jan 1, 1995

By G J. Corbett, T M. Leach

A continued exploration programme has further defined the geology of the Tolukuma vein system, verified the resource indicated by Newmont, and identified potential for additional mineralisation. The resource at Tolukuma Hill, designated as zone C, is a mine recoverable 432,000 t at 18.1 g/t Au & 46 g/t Ag. Mining will be by a combination of open pit and underground at a rate of 100,000 t per annum. Processing will be by SAG mill, gravity circuit and CIL plant. A diatreme breccia, localised at an intersection of structures and a relationship of gold to base metal sulphides, are indicative of a strong porphyry association. Typical epithermal features such as crustiform banded quartz and quartz pseudomorphing platy calcite are also present and locally contain lesser gold mineralisation. Pre-existing dilatant structures have acted as a host to the ore fluids, resulting in the formation of the semi-continuous Tolukuma-Gulbadi veins over a 1100 m strike. A fluid flow model suggests that mineralizing fluids were sourced from a diatreme margin and migrated laterally along dilatant structures. Bonanza gold grades are interpreted to be derived through fluid quenching in the flexure between a hanging wall split, which hosts much of the Tolukuma Hill resource, and the feeder graben structure. Thus, the relationship between the pre-mineral structural geometry and fluid upflow at the margins of a diatreme breccia, controls the ore setting.

Jan 1, 1995

By Yoshiharu Tanaka, Toshiyuki Ichijo, Masaaki Yamamoto

We utilized electronic detonators (EDs) to investigate the effect of high detonator delay accuracy on overbreak, remaining rock damage, and surface smoothness, in comparison with that of long-period delay detonators (0.25 sec interval) PDs. The experiments were conducted in a deep mine, in a test site region composed of very hard granodiorite with a seismic wave velocity of about 6.0 km/see and a uniaxial compressive strength, uniaxial tensile strength, and Young's modulus of 300 MPa, 12 MPa, and 73 GPa, respectively. The blasting design was for a test tunnel excavation 8 m in cross section, with an advance per round of 2.5 m. Five rounds were performed, each with a large-hole cut and perimeter holes in a 0.4-m spacing charged with 20-mm-diameter water gel explosive to obtain low charge concentration. EDs were used in the holes on the perimeter of the right half, and PDs were used in all other holes.

Jan 1, 1995

By B. Weaver

Every year Pit & Quarry Magazine surveys the industry to produce their annual review. Here's a sampling of some of the statistics the survey produced from the end of the year 1994 survey.

Jan 1, 1995

Various influences determine how an Environmental Management System (EMS) for a mining or petroleum project is developed and administered. These influences include the environmental and resource legislation applying to the project, the culture of the organisation, the environmental sensitivity of the area, and the administrative policies of the regulatory agencies involved. While financial penalties and even imprisonment may be imposed for non-compliance with environmental legislation, there are other compelling reasons for the establishment of an effective EMS. If a company wishes to be considered by Governments for the grant of exploration or mining rights, it is important that it can demonstrate environmentally responsible operations at existing facilities. The development of an effective EMS requires commitment from the Board of the company and the issue of an Environmental Policy to empower all levels of the staff and workforce to achieve environmentally responsible operations. This must be supported by the provision of appropriate human and financial resources, and environmental training of staff at all levels from the Board to the mine site, workshop and office. A regular environmental auditing programme is essential to ensure that the EMS is in place and is effective in achieving compliance with regulatory requirements, corporate policies and protection of the environment. An EMS can be developed on the basis of existing management systems, quality management systems, existing and emerging environmental management standards (such as BS7750 and ISOI4000), or sophisticated computerised systems which may incorporate international experience, standards, and codes of practice.

Jan 1, 1995

By J M. Laboz Bernard

Among the numerous technical evolutions in the blasting environment we are going to describe below the concep

Jan 1, 1995

By V Morand, W R. H Ramsay

Structural, mineralogical, and textural data from the Tarnagulla Goldfield demonstrate that the area has undergone three significant phases of deformation. The first phase of deformation (D1) predates the intrusion of the Tarnagulla pluton, which has been dated using K/Ar as 391 ¦ 5MY. We regard this pre-granite deformational event as the major regional deformation. Gold-bearing quartz veins have been deposited in dilational sites on west-dipping reverse faults. These sites demonstrate a geometry related both to faulting associated with D1 and the plunge of the F1 fold axes. This evidence, together with chronology of unmineralised ? D2 and D3 faults, the absence of quartz veining associated with D3 events, and the deformation of carbonate-quartz-biotite-sulphide aggregates within Sl by later S2, lead us to conclude that the bulk of the mineralisation was essentially syn- or late D1 . d18O values for fluids in equilibrium with vein quartz from Central Victoria have indicated equivocal support for either a magmatic or metamorphic origin. Our evidence supports a pre-magmatic origin for mineralisation at Tarnagulla and hence tends to favour a metamorphic fluid source.

Jan 1, 1995

By Glenn S. Dobby, Glenn A. Kosick

"Column flotation circuit engineering has matured to a good level of understanding regarding testing, scale-up and design. Some of the factors important to the process of implementing columns are addressed in this paper, highlighting the following issues• operating bias and the maximum achievable solids carrying rate for a column application.• internal circulating loads of full scale and pilot plant flotation columns• short-circuiting oflarge scale columns and the impact on separation selectivity• the number of stages in a column circuit and the impact on selectivity.The paper uses several case studies, from pilot plant to full scale implementation, to illustrate these design issues.1. IntroductionTen years ago, in 1984, there were very few column flotation installations world wide and the largest columns were about I . 5 to 2 m diameter or square. During the following decade there have been in the heighbourhood of 80 column installations that have been successful and profitable, as both retrofits and green-fields plants. Now, columns as large as 3 to 4 m are not uncommon. Examples of installations with many large columns include Escondida, with ten columns each at 4 m square, and P T Freeport Indonesia, with 21 columns: nine 3 m diameter columns, four 2.4 m diameter columns and, starting up in April I 995, eight 3.6 m diameter columns.During this growth period there have also been column installations that can be considered as failures. In the majority of these cases, the reason for their failure has been an insufficient installed capacity for applications where there is a high weight recovery of solids to the froth product These include zinc cleaning, copper cleaning and iron ore flotation (silica flotation from a feed that is 15 to 30 %Si02) An application with high weight recovery to the froth product makes column scale-up and circuit design more complicated. This is particularly so if a high degree of selectivity is also required while attaining a high weight recovery, which can happen with iron ore flotation in columns."

Jan 1, 1995

By L A. Maslov

We have considered the following characteristics of the crust and upper mantle of the Pacific Belt: seismic wave velocity anomalies, mechanical stress and shear deformation rate fields, heat flow and the pattern of metallogenic provinces of the Belt. It has been noted that there exist certain .regularities in distribution of the above mentioned geophysical characteristics and metallogenic zones within the Belt, displayed by prevalence of the lithophile elements in the Asia-Australian part of the Belt, and of the chalcophile ones within the American part.

Jan 1, 1995

Five types of mineral resource were known in the sedimentary cover of the oceans and seas floors prior to the 1980s: 1. hydrocarbon fields including some very large zones of oil and gas accumulation; 2. æRed SeaÆ type thermal oozes with increased concentrations of noble metals; 3. ferromanganese nodules; 4. concentrations of metallic sulphides (æBlack SmokersÆ); and 5. cobalt-bearing ferromanganese crusts on the summits and slopes of seamounts.   Since then, the so called æWhite SmokersÆ, containing sulphides of copper and zinc, have been discovered. The ore horizons (manganese, copper, nickel and other metals) of the sedimentary cover of deep-sea basins comprise a sixth type of mineral resource in the oceans. These horizons have not only a theoretical, but also a principal economic significance.

Jan 1, 1995

By J. Hilgers

Metal prices are often predicted by relying on time trend projections of various economic indicators or even the trend in price itself Thus, time is the underlying explanatory variable acting through at best, a limited selection of economic variables. The price prediction method described in this paper differs from this by analyzing hundreds of economic variables to develop a few principle components that automatically capture the fundamental changes in the economy and delete duplicate or irrelevant information. This leaves a few principle variables to describe a state-space representation of the economy which can then be used for prediction. Forecasts of the price of a metal are then made based on these principle variables.

Jan 1, 1995

By James Diekmann

The Disputes Potential Index (DPI) is a computer program designed to help team mem¬bers assess the likelihood of contract disputes on a construction project. The program's predictions are based on data from 159 construction projects that encompass a variety of public and private projects. The impact of three categories of project characteristics are included in the DPI program, specifically, people, process and project characteristics. Ultimately, DPI returns an overall project score that indicates the likelihood of exces¬sive contract disputes. The output of a DPI analysis can be used as part of a contract readiness review or to define the need for extraordinary dispute avoidance procedures. This paper examines the development of DPI and presents the results of DPI analyses on several tunneling projects.

Jan 1, 1995

By G Mark, K L. Blake, G de Jong, J F. Rotherham, N D. Adshead

Magnetite deposits with distinctive ¦ actinolite ¦ apatite-bearing gangue and spatially-extensive sodic-calcic wall rock alteration occur in both Proterozoic metamorphic terrains and Mesozoic-Tertiary magmatic arcs. Examples from both settings constitute significant sources of iron ore (egKiruna, Sweden; El Romeral, Chile) and some host major Cu-Au deposits that have a local association with K-silicate alteration (eg Cloncurry district, NW Queensland; Copiapo district, Chile). A growing body of evidence points to a hydrothermal origin for these systems involving high temperature, low S oxidised fluids. The Cloncurry magnetite-Cu-Au deposits are products of the local structurally channelised influx of a specialised high salinity ore fluid into larger-scale alteration systems developed during pluton emplacement at greater depths than those associated with subvolcanic (porphyry) Cu-Au deposits. The geological characteristics of deposits in magmatic arcs are consistent with a similar mode of origin albeit in rather different tectonic settings.

Jan 1, 1995

By W. Dan Hausel

More than 220,000 diamonds have been found in the United States that range from microdiamonds to 40.42 carats in weight (Table 1). Some reports suggest diamonds weighing more than 100 carats have also been found in this country, although these reports have not been verified. The source of most of the diamonds in the United States is a group of kimberlite pipes, dikes and blows in the Colorado-Wyoming State Line district and a group of lamproite pipes in the Murfreesburo, AR area. Other areas where diamonds have been found include the Great Lakes region, the Pacific Coast and the southern Appalachian Mountains. The latter two regions are generally not considered favorable for diamond deposits. This is based on exploration models. They suggest commercial diamond deposits will be restricted to kimberlites emplaced in Archean cratons and to lamproites emplaced in Proterozoic mobile belts accreted to the cratons.

Jan 1, 1995

By H Peiming, W Sakurai, Y Matsuhisa, H Shimazaki, Y Fukahori

Oxygen and carbon isotope mapping of hydrothermally altered wall rocks was applied to the blind ore prospecting of skarn Pb-Zn deposits in the Kamioka mining district, centralJapan, where the wall rocks consist of heterogeneous rock units. The results (d18OSMOW of -1.1 to +17.3ë and d13CPDB of -5.0 to +4.8ë for limestones, and d18OSMOW of -0.8 to +12.5ë for silicate rocks) show isotope zonations of the wall rocks with depletions in heavy isotopes (18O and 13C) toward the centre of mineralization. The isotope zonations likely formed by interaction of migrating thermal waters with the wall rocks during the mineralisation. The heavy-isotope depleted zone, which indicates higher temperature or higher water-to-rock ratio of the system, occurs in the footwall of a fault, indicating that the fault played the role of main conduit of the ore-forming fluids. A heavy-isotope depleted zone was also found in an area, where significant mineralisation had yet to be identified. Recent drilling in this area has intercepted a zone with a grade of 16.0% Zn, 0.8% Pb, and 35g Ag per metric tonne at a depth of about 360 m.

Jan 1, 1995

By P M. Black, T Itaya

Arc-type volcanic activity has been a major feature of the late Cenozoic geological evolution of the Pacific-Australian plate boundary in the northernNew Zealand region. The time/space distribution patterns of arc-type rocks reflect changes in the nature of the plate boundary as it has evolved. Inception of volcanism began in the north during earliest Miocene times (26 Ma) following ophiolite emplacement and during the next 10 Ma developed into a volcanic arc segment extending south to the present position of the central North Island. The northern part of the arc became extinct about 15Ma ago, but activity continued in the central (Coromandel) part of the arc until about 5 Ma ago. In late Pliocene and Quaternary times volcanic activity has become concentrated in a northeast trending zone which is collinear with the Tonga-Kermadec Arc.   These time/space patterns can be interpreted in two ways. Firstly, if relative plate motion was essentially transform in the region prior to 26 Ma then a small change in the relative plate vectors may have initiated subduction and the associated volcanism. Southward evolution of the arc can then be seen as the straightening and extension of a single arc. Alternatively, the distribution of volcanic rocks can be interpreted as the capture of a relatively short lived arc by southward migration of the dominant Tonga-Kermadec subduction system.

Jan 1, 1995

By A B. Christie

Stream sediment geochemical analyses from 140 mining company exploration surveys of the Coromandel, Northwest Nelson, Marlborough and Westland regions of New Zealand have been compiled from open file reports and entered on a database called REGCHEM (for Regional Exploration GeoCHEMistry). REGCHEM is supported by GEOEXPL, a custom-written computer software application which operates under the Microsoft Access relational database management system on a PC-type computer, The data are plotted as maps using the MapInfo geographic information system (GIS) package. Thresholds separating anomalous values from background values are determined using the PROBPLOT uni-variant statistical package, which enables the discrimination and modelling of several populations. Relevant REGCHEM data are being incorporated into a GIS for the Coromandel region as part of ongoing studies to develop mineral deposit and metallogenic models for the region, and to assess regional prospectivity.

Jan 1, 1995