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I had hoped when the time came for me to address this meeting that gold mining would be in a much happier position than we find it to-day.As it is, and because of the demands of national security, we find this great and valuable primary industry relegated to the background and in danger of temporary extinction.These notes refer mainly to gold mining in Western Australia, whence comes the major portion of Australia's production, and their purpose is to record a brief review of the industry immediately prior to the general disorganization that is following the call-up of men from the mines.During this period of reduced production the loss of comparable statistical data will make it impossible to follow the progress of the industry, and, since the period may be long, it occurred to me that information might be derived from an examination of the trend of recent production that would indicate what may be expected of the industry when full production is resumed in the future.Since the revival of gold mining, which started in 1931, most of the old-established mines have reorganized and, in some cases, completely renewed and enlarged their equipment in order to achieve maximum production, and old mines hitherto unpayable have been re-opened and equipped. At the same time large sums have been spent in scientific prospecting and in search for new mines, and it is safe to say that at the end of 1939, when gold production reached its peak, practically every known mine in Western Australia that could be worked profitably was in production.During this period the number of men employed in the industry rose from 5,961 in 1931 to approximately 15,000 in 1939. From the outbreak of war in 1939 to the end of 1941 the output from the mines was maintained at full pressure, maximum tonnage beingrecorded in 1940, although a reduction in the grade of ore treated caused a slight falling off in gold production.During 1941 there was a. fall in both tonnage and grade. The decline in tonnage was due partly to the closing of the Lancefield and Mount Magnet mines, and partly to the shortage of labour brought about by the response of the goldfields to the call for men for the fighting services, the average number of men in the industry in this year being reduced to 12,929.With the entry of the United States into the war in December last and the pooling of the resources of the allied nations, the need for gold as a purchasing medium passed, and with its passing there arose the demand for the transfer of the man-power engaged in gold mining to other fields of industry directly connected with the war effort.There was a ready response by those connected with the industry who...

Jan 1, 1942

The usefulness of laboratory studies - petrology and mineragraphy in the search for, and investigation of, mineral deposits should not be exaggerated, but it should not be overlooked, because such studies will always contribute to an understanding of the geology of the deposits, and can on occasions provide invaluable information not otherwise available. A few examples furnished by the investigations of the Mineragraphic Section of the Commonwealth Scientific and Industrial Research Organisation will show this.Petrology.In the early stages of the investigation of the King Island scheelite deposit, during the war, when the nature of, the deposit was not understood, a series of samples embodying the exposed rock types was submitted to the Mineragrap;hic Section for petrologicalexamination by the Mineral Resources Survey. It was at once apparent to the petrologist that the King Island scheelite ore was a contact metamorphic deposit, in which a series of argillaceous shales, calcareous shales, impure limestones and limestones had beenintensely metamorphosed. The shales had been converted to finegrained biotite and actinolite hornfels, according to their lime content, and the impure limestones to fine-grained diopside hornfels, garnetdiopside hornfels and garnet hornfels (calc-flint), the garnet being the lime variety grossularite. The limestones, however, after being first converted to marbles, had suffered intense pyrometasomatism, involving substitution of immense quantities ,of silica and' iron for lime and carbonate, and had been converted largely to a coarsegrained garnet rock, in which the garnet was the lime-iron variety, andradite. The silica and iron were derived from the mineralising solutions of the adja,cent ,granite. intrusion, responsible for the contact metamorphism, and were accompanied by tungsten and some molybdenum. The tungsten in the presence of so much mobile lime, was precipitated as schecelite, much of it finegrained and enclosed in or intergrown, with the andradite garnet or the quartz interstitial to the garnet.It was apparent that the King Island scheelite deposit, was a perfect example of selective pyrometallomatic replacement in a bedded contact metamorphic deposit. The bedded nature of the original rocks was preserved, and the scheelite was practically limited to the original limestone beds, 'Which had been so much more susceptible to replacement after recrystallization, than the other sediments. The further geological study of the deposit then resolved itself into the task of mapping the folding and faulting of the deposit, with bore cores to provide the stratigraphic sequence, and establish the number of scheelite-bearing beds.A second example is provided by a petrological investigation of the mineral composition and genesis of the talc deposits of the Gumeracha district of South Austral.ia, which was undertaken at the request of the South Australian ,Mines Department, in conjunctionwith mapping of these deposits. The field geologist mapping the deposits was experiencing some difficulty in interpreting the structure...

Jan 1, 1950

By Wylie A. W, Mathew P. J, Eisler P. L

Field studies of the radiations backscattered by iron ores from a 60Co source of primary gamma radiation located in a borehole logging probe have confirmed thatthe P" factor, a ratio of high energy gamma ray intensities to low energy intensities in selected energy windows of the backscattered gamma-ray spectrum, is a valuable measure of grade for sedimentary iron ores of the Pilbararegion of Western Australia.Laboratory studies of model boreholes have shown that variations in borehole diameter and variations in bulk density of the formations have a significant influence on the measurement of P" ratios. If these influences 'are taken into account the mean ore grade in a new blast hole, for instance, can be predicted with a probe of suitable configuration to within 0·8 per cent Fe at the 95 per cent confidence level, while the grade of a single 120-cm split can be determined to within 2·6 per cent Fe. These results were obtained by pooling data from five blast holes covering the range of iron concentrations 20-68 per cent Fe and apply to the mean hole grades 54-68 per cent Fe.Results for two development holes were generally comparable to those obtained from individual blast holes95 per cent confidence limits of ±0·9 per cent Fe for mean ore grade and ± 4·1 per cent Fe for single splits. A greater number of data points is needed before these confidence limits can be further improved.The technique utilized to obtain these results was derived from a "multiband" approach to collection of backscattered spectral intensity data, an approach which permitted selection at the data processing stage of the most statistically significant P" ratios for the type of mineralization encountered in the field. The multiband technique also permitted selection of the most significant of another set of windows in the backscattered gammarayspectrum to measure a newly developed "S-factor", a ratio sensitive to borehole diameter. Another window provided information on bulk density. All these measurements were made with a single pass of the same loggingprobe.

Jan 1, 1977

By Madgwick J. C, Ralph B. J

A method for the determination of microgram quantities of uranium in leachates from low grade uranium ores is described. Solubilized manium is purified by transfer to an organic solvent by a selective solvent extractionprocedure using tributyl phosphate, iso-octane, and aluminium nitrate. The organic phase is mixed with scintillation fiuors in toluene and the radioactive decay determined in a liquid scintillation counter. The method is sensitive and reproducible in the range 3-30 µg uranium.

Jan 1, 1978

By M Pizey, C Ross

Rehabilitation approaches, methods and outcomes have changed markedly over the last 100 years, and especially over the last 20 years. Alluvial gold dredges have moved from creating a legacy of boulder fields and ponds to radiata pine plantations and highly productive dairy pastures. The rehabilitated farmland has reduced flood risk, improved drainage and efficient paddock design. The next challenge is to include areas of environmental diversity in these projects, for example, shelter belts, patches of native trees, and wetlands that were part of the original landscape.   West Coast coal mines have also come from a legacy of leaving it to nature to rehabilitate damage by mining to establishing native ecosystems or plantation forests. Developments in techniques at Stockton Mine are used to illustrate the changes in approach to rehabilitation of native forest and tussock heathland ecosystems. The proposed Cypress Mine will adopt a full range of avoidance, remediation through rehabilitation, and off-site mitigation techniques in a æthree-prongedÆ approach.   We propose a coordinated extractive industry approach to mitigate for the impacts of mining on native ecosystems and achieve nationally important conservation benefits that individual projects cannot afford. This approach is particularly beneficial in New Zealand, as our native ecosystems must be actively managed to conserve native plants and animals. Currently, some important species and ecosystems are not being actively managed for conservation.

Jan 1, 2004

By D Craw, C Smith, C Rufaut

Oceana Gold (NZ) LtdÆs, Macraes Gold Operation currently has two tailings impoundments, the larger of which covers approximately 75 ha. When an impoundment is temporarily out of use, the surface dries and dust can be blown from the surface to the surrounding area. At present water spraying is used to stabilise the surface, but this is not ideal as Macraes mine can experience water shortages during the summer. This paper examines an alternative method of surface stabilisation using vegetation as a ground cover. The tailings have a low natural fertility, so it is important to determine what will actually grow in the tailings, and whether amendments are necessary. Also important is the effect of the amendments on arsenic mobility in the tailings as the schist rock at Macraes has naturally elevated levels of arsenic. Three plants species, rye corn, barley, and lupin, were grown in metre-deep lysimeters at Macraes mine site. The plants were grown in unaltered tailings, and tailings with one of two amendments added: Bioboost (an organic fertiliser containing biosolids), and superphosphate fertiliser. The leachate from each lysimeter was collected and analysed monthly to determine the extent of arsenic mobility. In addition, laboratory experiments were set up to determine arsenic mobility in tailings with amendments at the centimetre scale.   All plants grew best with the fertiliser amendment, with rye corn growing the best overall. Plants growing in unaltered tailings either barely survived (rye corn, barley) or died (lupin). Plants in the Bioboost amended tailings grew only slightly better than in the unamended tailings. Laboratory experiments indicate that the addition of phosphate fertiliser greatly increases arsenic leaching at the centimetre scale when compared to unamended tailings. The addition of Bioboost only marginally increases arsenic leaching, compared to unamended tailings. This trend has not been repeated in the lysimeter trials on the metre scale over four months. Current results suggest that of the plant types trialed and amendments used, rye corn with superphosphate is the most practical short-term tailings stabilisation method at Macraes.

Jan 1, 2004

A method for the detection and analysis of tin in cassiterite ores is discussed. An empirical relationship was established between the tin content of an ore sample and the percentage absorption that this sample produced in a Mossbauer experiment. The time taken to complete an assay with this method is much less than with any of the methods currently in use. The equipment can be adapted readily for use in the field.

Jan 1, 1969

Samples of a refractory copper ore were examined to test their response to segregation roasting, flotation, and acetonitrile leaching. Recoveries in the segregation roasting stage were between 60 and 100 per cent, while flotation recoveries varied between 60 and 85 per cent in cleaner concentrates assaying 25-40 per cent copper.The fraction of the copper which could be leached from the concentrate by an acetonitrile/sulphuric acid/cupric ion leach solution varied from 16 to 97 per cent, the lower recoveries being correlated with the presence of sulphide in the concentrate.

Jan 1, 1973

By P L. McCarthy

In an environment of accelerating capital costs, limited capital availability and strongly cyclic metal prices, there is a difference between a robust mining and processing operation and one that would maximise shareholder returns in an idealised world. A higher cut-off grade policy is likely to improve operating margins and may reduce the scale of operations and thus limit capital exposure. This will leave some metal in the ground, but it is marginal material which carries the greatest cost and risk exposures. Where do we draw the line?CITATION:McCarthy, P L, 2013. Is bigger better? Building market resilience into process plant design, in Proceedings MetPlant 2013 , pp 66-70 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 15, 2013

The use of scrapers in mining and earthmoving operations is not new, in fact they are one of the earliest methods of bulk earthmoving. A single machine which can load, haul, and dump material with a minimum of ancilliary support is a highly productive and cost-efficient method of earthmoving. In recent times scrapers have been unpopular due to perceived problems and operational limitations, but the last couple of years have seen a resurgence in the use of scrapers in the Bowen Basin as a primary prestripping tool. The main operational limitation of scrapers is the economic operating range. maximum productivity and lowest cost per bcm is achieved on short leads, as the lead distance increases the cost per bcm quickly reaches and then overtakes that of an truck-excavator fleet. The geometry of a ætraditionalÆ coal mine does not readily allow short leads for prestrip fleets due to the nature of dragline stripping operations. The strip arrangement means that material has to be taken around the end of the pit, meaning a longer haul distance than the actual point-to-point distance between load and dump. This can be alleviated by using pit bridges, however these can cause spoil problems for draglines if not properly planned and have been avoided by many mines. Due to the economic haul distance limitation of scrapers, truck-excavator fleets have become the normal method utilised. Currently more geologically complex mines are opening up, which do not allow traditional down-dip strip mining to occur. Cross-dip mining methods allow for short leads between prestrip loading and dumping areas, hence scrapers and bulk doze are realistic alternatives to a truck-excavator fleet in the prestrip environment. Keeping the lead distance to a minimum a fleet of 657Æs can move material at a very low cost. The other main operational limitation of scrapers is the type of material that can be economically excavated. Hard material can lead to damage to the bowl, free-flowing sand will not readily stay in the bowl leading to reduced load factors. Ripping the material with a dozer prior to excavating can lead to improved loading time, and greatly reduced GET consumption. When considering scrapers for prestrip operations a number of things must be considered: is the lead distance within the economic haul distance? should twin power (push-pull) or single power (dozer pushed) scrapers be used? do I need to rip, what should I rip with? what ancilliary support is required? is there another system already available on-site which is currently under utilised? This paper considers the parameters under which large twin power scrapers are the most effective way of undertaking prestrip operations.

Jan 1, 2003

The addition of a thallous salt to the cyanide leach of a calcined pyritic concentrate causes a marked increase in the rate of extraction of gold. This is due probably to the activation of passive gold by the thallous ions. Lead, bismuth, and mercury salts, which should produce a similar effect, fail to do so. It is postulated that this latter result, together with the reprecipitation of silver at low cyanide levels, is due to the presence of soluble sulphide.INTRODUCTIONThe work of Fink and Putnam (1950) showed that the rate of solution of gold in cyanide can be increased by the addition of small amounts of lead, bismuth, mercury, and thallium salts. Mills (1951), during a study of the electrochemistry of gold, with particular reference to cyanidation, was able to show that gold may become passive towards cyanide solution. The addition of lead or thallium salts prevented this passivity, although the action of lead was limited to the pH range 10 to 12. In a recent paper Cathro (1963) confirmed the findings of Mills, and presented results which showed that the addition of thallium to a cyanide leach of a calcine from Lake View and Star mine, Kalgoorlie, increased the rate of extraction of gold appreciably. In, this paper the use of thallium to prevent the gold becoming passive, and hence to decrease leaching time and cyanide consumption, is examined.EXPERIMENTALA series of leaching tests was carried out on a sample of Lake View and Star calcine, comprising calcined pyrite (about 70 per cent.) and siliceous gangue (about 30 per cent.) and containing 165 p.p.m. gold, 45 p.p.m. silver, 0·1...

Jan 1, 1964

The problem of ventilating an advancing drive which finally reached 5,550 ft from the fresh air base in rock with virgin temperature of 83°F was solved economically by the use of two 15 h.p. electric fans forcing ventilating air through 281/2 in. dia. fiexible polythene tubing of wall thickness 0·010 in. The saving in cost over conventional metal duct was estimated to be £3· 24 per ft of drive.INTRODUCTIONAs described by Dutton (1965) and Newton (1965) the existing 1,480' ft level drive at the South Mine, Broken Hill, was extended in two stages. The first extension was 3,790 ft, the face then being 4,790 ft from the fresh air inlet. Later, after a vertical ventilation connection was made 1,000 ft back from the face, the drive was extended a further 4,550 ft. The rate of face advance in both stages was about 15 ft per day (3 shifts of 5 ft), 5 days per week. Drive size was 8 ft by 9 ft 6 in. high.The Mines Inspection Act of New South Wales requires 6 hr shifts (instead of the normal 7 in Broken Hill) to be worked if the wet bulb temperature exceeds 80°F. Virgin rock temperature on the 1,480 ft level was 83°F. Inlet air temperature varied with seasons from 58 to 72,oF wet bulb.To adequately ventilate the face, a flow of air of about 11,000 c.f.m. was thought to be necessary.Re-entry time was about 75 min, being governed by the 7 hr length of shift (3 shifts per day) and travelling time.Blasting was permitted only at the end of the shift, in accordance with local industrial restrictions.

Jan 1, 1965

The work described herein is the opening phase of an extensive system of underground excavation undertaken under contract with a Malayan authority.The specifications called for the lining of all tunnels in earth or broken rock with circular segmented cast iron lining, similar to that of the London tubes, and it is the installation of these linings which it is proposed to discuss.Owing to the long deferred delivery quoted and the obvious need for speed of access to the internal installation, it was decided to defer driving the completed circular section and substitute two small timbered headings.These could later be opened out in turn to full section and lined without prejudice to traffic, since both of them had access to the internal workings.NATURE OF ROCKThe rock series through which the circular sections were driven consisted of:(a) A wide zone of intrusive porphyritic granite, consisting generally of orthoclase phenocrysts in a ground mass of micro pegmatite. This area showed advanced weathering, varying from a stage showing slightly tinted kaolin containing approximately 20% of small boulders to one of ultimate decomposition to pure kaolin;(b) A narrow zone of weathered augite diorite, consisting of rock masses of a maximum weight of some 100-150 tons, isolated by clay seams up to 1 ft. 6 in. in width.The whole area was in a state of quasi-hydrostatic equilibrium, which resulted in heavy pressure immediately after excavation. Freshly broken faces would appear to be quite solid but, within a few minutes, would commence to sweat and "slab off" under pressure and, unless support was placed promptly, the whole face would burst out and run from above. Mucking was slow, owing to the plastic nature of the clay and the ease with which it puddled into slurry.In zone (b) a good deal of trouble was experienced because of the fact that the somewhat heavy blasting necessary tended to cause movement of the large rock masses. Subsequent scouring out of the supporting clay bands by the waterflow permitted settlement of the ground on to the timbers and many reinforcing sets were therefore required.The timbering of the pilot headings and its relation to the cross-section of the circular tunnels is shown in Fig. 1. Top and side spiling was driven in the ordinary way, but in bad ground intermediate sets and breast boards had to be placed. These sets were usually withdrawn after the...

Jan 1, 1941

The use of solid state detector and radioisotope x-ray source for x-ray fluorescence analysis is illustrated by analysis for iron, copper, zinc, tin, and lead in about 700 samples taken from Australian mineral process streams. Limits of detection based on counting statistics (3 standard deviations) range from 0·001 to 0·004 per cent by weight element. The analysis accuracy was usualIy between 2 to 10 per cent (rms) of the mean element concentration and was determined by comparison with assays supplied by mineral companies. In most cases the main cause of error appears to be due to this assay and not the x-ray fluorescence technique.Some potential fields of application of solid state detector and radioisotope x-ray source for analyses in the mineral industry are indicated.

Jan 1, 1974

By D David

Clearly a plant designed only to treat average ore at the nameplate rate will fail to achieve nameplate in any typical year. To insert the necessary capability to achieve nameplate it is common process engineering design practice that plant must be able to treat an ore with 80th percentile value (hardness or competence values for example) at the nameplate rate. In the authorÆs experience, apart from a couple of notable cases, this has been applied reasonably well as a principal, and with widespread success. However, in a number of recent instances it became clear that the use of the 80th percentile number would have resulted in significant under design of the plant. This paper makes the case that the 80th percentile, as a principal, has can have serious flaws and its use needs to be assessed on a case by case basis. The discussion in this paper is the first step in developing a new design principal, and the associated methodology for selection of a design value, that will ensure plants are designed to achieve their nameplate capacities.CITATION:David, D, 2013. Is an 80th percentile design point logical?, in Proceedings MetPlant 2013 , pp 6-12 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 15, 2013

Mr. BRADFORD said :-On assuming this chair, which has been occupied by so many gentlemen of conspicuous ability; my first words must be an expression of the gratitude I feel for the honour you have done me in electing me to be your President for this year.When considering the subject matter of this address to you to-night, quite frankly may it be stated that for a long time I was on the horns of a very great dilemma, for while I could discourse on the modern political trend in relation to our industries at great length, it appeared to me that this was not the place for such a discussion. Next I turned to a consideration of whether a discourse on the theory and practice of iron and steel would be of interest.I, however, banished this idea also from my mind, because it appeared to me that you have already had a surfeit of this on your visits of inspection to our local industries and I did not want in any way to be held responsible for the iron entering into your souls! I therefore propose, with your kind consideration, to address you on other subjects of common and vital interest to all.My first words and thoughts turn on the absolute necessity of eliminating waste in our methods. If we are to succeed in our...

Jan 1, 1926

By J Parr, P Ashworth, S Johns, C Yeats, A Littleboy

The ocean floor is increasingly being discussed in terms of its resource potential. New discoveries, improved knowledge and access to unexplored areas of the deep sea and continental shelf are some factors contributing to a renewed interest in the seafloor exploration and mining industry. The industry has been referred to as the ænext minerals frontierÆ. To date, much of the research has focused on proving economic and technical viability of the industry, with environmental issues addressed locally. However, there is limited research internationally, and none known in Australia that considers the social viability of the industry, addressing issues such as regulatory contexts, international precedence and public acceptability. Does the nascent seafloor exploration and mining industry have a social license to operate? Does it have support amongst the wider community? If not, why not? The Wealth from Oceans National Research Flagship explored these questions by scoping the social issues that would surround an expansion. Two desktop studies provide insight into the current level of activity in seafloor exploration and mining, recent developments and the regulatory regimes on which the industry is based. One study focused on the situation in Australia, while the other was internationally focused. A series of workshops were held with key stakeholders from government agencies, industry and other interested parties, such as environmental groups and the fisheries industry. These workshops identified and explored the different stakeholdersÆ perceptions of the benefits, concerns, opportunities and key questions associated with an expansion of the seafloor mining industry. The desktop studies revealed that Australia is one of only a few countries with legislation specific to seafloor exploration and mining. Nevertheless, barriers to licence approval exist because of lack of precedent in applying this legislation. Consequently, the decision process can be vulnerable to political issues and subjective judgements. The outcomes from the stakeholder workshops suggest this inconsistency may be influenced by the high levels of concern and uncertainty over environmental impacts. Uncertainty over environmental impacts can influence the acceptability of an environmental impact assessment (EIA) and also mean the perception of risk is variable. Overall, this research suggests that the future of the seafloor exploration and mining industry will be highly dependent on AustraliaÆs ability to:improve the knowledge-base underpinning the regulatory regime,generate open and transparent communications between stakeholders, andimprove the understanding of policy and regulatory processes.

Jan 1, 2008

When the Mining Bill came before the Victorian Legislature not so many months ago, the question arose whether mining managers required education, and to what extent. Some members of the House expressed themselves in a way which appeared to leave the impression that mining managers would be all the better if they were not brought up in a scientific school.To try and prove what we owe to science I will give a short history of colonial mining from the earlier period to the present time and compare results.I believe I am right in saying that South Australia is the pioneer colony in mining and to her belongs the credit of not dnly being the first mining colony, but also that her beginning turned out so successful, as the history of the Burra Burra copper mine will testify. At about the same time a little galena mining was carried on nearer to Adelaide, but as this did not prove a success and was only worked by tributing parties, little notice was taken of it.

As it is my opinion that deep alluvial mining in Victoria and in the Murray Flats in New South Wales is practically in its infancy, and considering that we, the old school of alluvial miners, who have thirty or forty years' experience to guide us, must in the natural order of things hand over the management of our mine, to the younger and less experienced' generation of miners, I thought that as our Association has been formed for the purpose of disseminating information and the exchange of ideas, a few notes on the practical working of alluvial mines might be of some service to aspirants for the position of mining manager.The greatest difficulty the alluvial miner has to contend against is the immense quantity of water contained in the drifts overlying the wash in the gutters or ancient river beds, and to cope with this water successfully and economically is the point to be aimed at by our mining managers; and if they thoroughly understand this part of their business in all its details, they will not only win kudos for themselves, but will be the means of saving large sums of money to the companies they represent, and, in many instances, will make a success of a venture which otherwise might be stopped for want of funds before it is properly proved. At the present time, although we have had over forty years' experience indraining the deep leads of the colony, I regret to say that a large amount of ignorance still prevails amongst both directors and managers.

Jan 1, 1901

By D Lautier, A A. Ndiaye, A Galli

Traditionally gold producers had built up hedge books to protect themselves against adverse changes in the commodity price, but diversified mining groups were staunchly opposed to hedging in any shape or form. The situation has evolved over the past few years. Gold miners have been reducing the size of their hedge books in line with the rising gold price. Commentators have talked about ædouble-digit dehedgingÆ and have suggested that this is the final countdown for gold hedge books. It sounded as if the era of hedging by mining companies was drawing to a close. But as appearances can sometimes be misleading, we decided to find out what mining companies were actually doing. Companies listed on stock exchanges are now obliged to give details of their derivatives holdings in their annual reports. Two or three years ago there was no such obligation. Our reality check was based on the latest annual report issued by three multinational mining groups; two with diametrically opposed views on hedging (Rio Tinto and Barrick) and the third (BHP Billiton) with an intermediate position. This snapshot of their derivative positions at a point in time revealed that Barrick and BHP Billiton have substantial derivatives positions (worth billions of dollars) to protect against adverse changes in foreign exchange rates and interest rates. Moreover Barrick has recently started hedging against increases in fuel prices. Despite its opposition to hedging, Rio Tinto has derivative positions worth several hundred million dollars, but these are primarily a legacy from various mergers and acquisitions over recent years or were entered into as a condition of project financing. Lastly we were surprised to discover that Barrick was holding asset-backed commercial paper (ABCP). So the idea that mining companies donÆt hedge their risks is just another urban myth.

Jan 1, 2009