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Offshore petroleum development involves massive capital expenditure and financing demands, with the main participants being large international oil companies and State owned enterprises. Types of project oriented financing include take-or-pay contracts, throughput agreements, and production payment financing. The main project finance credit aspects are revenues, investment budgets and cost over- runs, reservoir, political and other risks and special problems such as weather and corrosion in the North Sea. A variety of documents is required and a mix of equity, export credit and Euro-market financing will typically be included in the financing.

Jan 1, 1983

The accurate estimation of ore reserves is the most crucial element in a financier's assessment of the risks associated with funding a mining project. It is crucial because any deficiencies in the estimation of a company's ore reserves will be later reflected in the cash flows derived from the production and sale of the commodity. Bankers must rely on the advice of members of your institute in assessing the quality and quantity of reserves. This information helps determine the cash flows which bankers use in their credit making decisions. It is against this background that this exposition has been prepared on "what bankers require in ore reserve statements" or put another way, "what does a bank require in ore reserve statements in order for it to provide the necessary credit Approvals".

Jan 1, 1987

By F Radke, P A. Tilyard

Determination of the mineralogical location (deportment) of minor and trace elements (including credit and penalty elements) in base metal concentrates can indicate whether further processing is likely to (a) reduce the levels of the penalty elements, and/or (b) direct selected elements into other plant products, thereby increasing current concentrate grade or increasing payment for credit elements. To determine the deportment of elements requires knowledge of the proportions of the minerals present and their individual element contents. In addition, knowledge of the liberation and locking is important, as this can affect any possible further processing. Mineral proportions can be determined by a variety of methods including chemical analysis, point-counting, area-counting, QEM*SEM, image analysis and mineral separation. In the case of a Broken Hill zinc concentrate, several of these methods were used and gave consistent results.

Jan 1, 1998

By P Holt, M Allen

On the first of July, 2012, the Australian GovernmentÆs Clean Energy Act commenced. From this point, a price of $23/t of CO2-e will apply to facilities that trip the liability threshold. This first part of this paper concentrates on the mechanics of the Clean Energy Future legislation and how it will be applied to the mining and mineral processing industry.The second part of this paper contains analysis of the data presented for typical mine operations. Methodologies for constructing a carbon strategy are also presented. This will entail determining what the objectives of the carbon strategy are, and defining what the strategic priorities for a business should be. An action plan to address the risks identified from the Clean Energy Act is also developed as part of the strategy.Details such as the advantages and disadvantages of opting into the carbon price scheme for liquid fuels are shown. Other considerations such as the ability to acquire permits through the carbon farming initiative or through overseas clean development mechanism projects are explained.CITATION:Allen, M and Holt, P, 2012. Implications of the carbon price and developing a carbon strategy, in Proceedings International Mine Management 2012, pp 105-114 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 20, 2012

By R Daiyan, G Burge, M Haider Ali Khan

Australia’s mineral and metal exports have a substantial carbon footprint, twice that of its domestic emissions, mainly due to fossil-fuel-dependent downstream processes like processing into secondary metals and their transport. The country’s vast renewable energy and low-carbon hydrogen potential offer a promising alternative to mitigate this impact. These resources can be leveraged to displace fossil fuel use and become embedded into the metals value chain. Ultimately, it will yield ‘Green Metals’ that can be scaled to reduce the environmental footprint and provide an avenue for Australia’s vast green resources to be embedded (incorporated during production and supply) in green metals that can be exported. One potential green metal is copper, which is in great demand and likely to drive global decarbonisation through renewable electrification due to its role as an energy conductor. Given that Australia is a large producer and exporter of copper, this paper provides a techno-economic model of the copper value and applies it to Queensland (a hub of Australia’s copper production) as a case study. The results show that under incumbent hydrogen (A$8/kg) and renewable energy costs, the cost of green copper would be A$9704/t (~10 per cent higher than current copper costs). Further analysis revealed that the cost of hydrogen is a major cost driver; therefore, if the cost of hydrogen can be reduced to A$2/kg (a 2030 target of the Australian government), the cost of green copper would become competitive. Furthermore, if a carbon pricing regime ($54–79/kgCO2) is introduced, green copper would become competitive at a hydrogen cost of A$3/kg. Altogether, these findings provide insights for a future green copper export opportunity in Australia. Additionally, as the next step, the model can be extended to include other metals and released as an open-source resource for assessing global green metal opportunities.

Sep 1, 2024

By A Horne, Z Graszkiewicz, D Dettrick, R Evan, B Neal

"Most of VictoriaÆs rivers and aquifers are already fully allocated or reaching full allocation. In regions without a well-established water market, access to water entitlements to facilitate new development is limited. In areas with established water markets, mine developers face an undue cost burden in circumstances where they are only planning to consume a fraction of the water entitlements that they purchase. The challenge for water managers is to ensure protection of water resources and other water users without creating an unnecessary disincentive for those types of developments that return most of the water that they take from water sources. The opportunity for development of a mine is explicitly linked to a particular location and must be developed where a resource is located or it cannot be exploited at all. Regulatory arrangements that facilitate development may have a positive impact on economic development, particularly where water availability is a potentially limiting factor. Net volume licensing has the potential to allow increased economic outcomes through improved licensing of access to water. Net volume licensing differs from traditional water licensing in that it authorises access to water on the basis of ænet useÆ rather than æthe gross volume takenÆ. This paper asks under what conditions net volume licensing is likely to be feasible and effective. In particular, the paper examines the information and accuracy requirements to allow net volume licensing decisions to be made. This work is based around five case studies in Victoria that were used to examine the potential for net volume licensing for mines and quarries. Assessing a potential net volume licensing arrangement requires the regulating authority to have an understanding of the inputs and outputs of water to a site. In contrast, assessment of take and use licences consider only a single input. It was concluded that the conditions that lend themselves to net volume licensing include: well understood water inputs and outputs, including appropriate accuracy of information where the location of site water inputs and outputs are the same where the timing of extraction and discharge can be managed to minimise impact on the water resource.A key remaining challenge is establishing an accounting framework that allows net volume licensing under current water resource limits. CITATION:Graszkiewicz, Z, Horne, A, Neal, B, Evan, R and Dettrick, D, 2013. The practicalities of implementing net volume licensing of water use in mines and quarries - a discussion based on Victorian case studies, in Proceedings Water in Mining 2013, pp 241-250 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Nov 26, 2013

By D Brereton, C J. Moran

Intensive resource extraction, in the form of multiple mining operations, presents significant assessment and management challenges for resource developers, governments, community and the environment. Cumulative impacts, ie the successive, incremental and combined impacts (both positive and negative) of an activity on society, the economy and the environment, can place significant pressure on social, economic and environmental capital and render conventional mine-by-mine approaches to management ineffective. Cumulative impacts can be what are most important to environments, communities and economies surrounded by multiple mining operations because cumulative impacts are what they experience. There is much to gain from increased consideration of cumulative impacts. Unmitigated impacts have the potential to delay or even prevent expansion of mining in existing and prospective areas. On the other hand proactive management of cumulative impacts can benefit regional environments and communities and contribute to the industryÆs social license to operate. Resources are often not the limiting factor to better cumulative impact management. More effective coordination of existing resources may go a long way toward mitigation and enhancement, and better planning and assessment may help avoid impacts and exploit opportunities for efficiency gains through reduced duplication. In this paper we draw from working examples to present five practical assessment and management strategies applicable to resource companies to enhance positive, and avoid and mitigate negative, cumulative impacts. The strategies are presented based on their capacity for achieving outcomes, ease of implementation and cost effectiveness and are drawn from a multi-year study on the assessment and management of cumulative impacts in the Hunter Valley, New South Wales and a follow-up study to improve cumulative impact assessment and management practice in the Australian coal mining industry, both reported elsewhere.  

Jan 1, 2009

By O C. Aitken

Mining project developers are committed to taking on all the challenges and obligations of financial risk management. It is interesting that our current models of project finance have not changed markedly in principle for some 700 years, yet the rules which prepare the way for effective project assessment and subsequent loan management still do not seem to be well understood by project or corporate developers. Probability and gravity fill the opposing trays of the golden balance of financial risk. Understanding the relationship between these opposing, but intimately related elements is critically important for successful risk management. It is important to move beyond the qualitative approach and use quantitative methodologies to measure the financial impact of the occurrence of each major risk. We live in a world where the only constant is change and thus it is not surprising that a bankerÆs life is still governed by assessing, measuring and pricing risk. Banks are attracted to funding well managed companies with strong cash flow projects. But we are more risk averse compared with the credit appetites of late last century. This attitudinal shift has resulted in tougher term sheets for the early 21st century, encompassing more conditions, warranties, undertakings and stronger cash sweep provisions. Banks require well balanced portfolios to achieve an acceptable spread of risk, thus there is a more restricted market for small company lending than that available to large multi-project corporate entities with less concentrated risk profiles. Because of this focus, junior company debt finance remains comparatively expensive and especially so for more challenging geographical and political environments.

Jan 1, 2004

Banks' focus in using cash flow methods can differ markedly from that of equity investors. This paper attempts to explain and describe bankers' approach by: ò outlining the fundamental difference between banks' and investors' risk / return profiles. ò describing lenders' consequent use of cash flow methods in mineral valuation. areas. explaining lenders' specific treatment of key risk Fundamental to understanding banks' appraisal of mineral projects is the appreciation that lenders have a basically different risk profile and outlook from those familiar to equity investors. Lenders do not normally participate in any project upside. The economics of lending dictate that banks can only accommodate a low probability of loan default and consequently banks' principal focus in mineral ""valuation"" is ensuring an acceptably comfortable probability of debt repayment. A simple conceptual explanation of lenders' risk / return position is outlined.

Jan 1, 1994

This paper examines some of the important aspects of mineral taxation policies and practices, with reference to the mining tax regimes of selected Pacific Rim countries (see Tables 1 and 2). The following subjects are addressed:what is æmineral taxationÆ?, basis for mineral taxation, types of mineral taxes, objectives of the mineral taxation regime, best practices, and mineral royalties. Many countries, in some cases with the encouragement and assistance of international funding agencies, are actively assessing the international competitiveness of their mining tax regimes with a view to attracting investment. However, these countries recognise that the mining tax regime is not the only consideration that is taken into account by prospective investors. The countryÆs geological prospectivity, physical infrastructure, labour force, political risk, and regulatory system are also important factors in the investment decision making process. Although it is probably true that an attractive mining tax regime will not necessarily attract mineral investment, there is a real possibility that an unattractive regime can drive away investment. For example, Hugo Dummett, general manager for discovery at BHP, hinted recently that BHP could cease exploration in Russia in the absence of positive tax changes. Dummett is reported as saying that if taxes æend up being as onerous as they are now, we really have to rethink why we are hereÆ (Mining Journal, London, November 27, 1998).

Jan 1, 1999

By M Russ, J Gediga

This paper shows an economic feasible approach to implement greenhouse gas (GHG) reduction measures into the mining and metallurgy industry (MMI). The goal to improve energy consumption is directly linked to the reduction of GHG emissions in the MMI. A baseline scenario of the considered reference system and of the respective reference year has to be designed and analysed. In a second step an analysis of the same operation using the best available technology (BAT) processes is carried out to generate a basis for a benchmark system. The identified gaps will be reported and the potential GHG emission reductions will be put into relation to the investment, running cost and generated carbon credits of the new process technologies to be implemented. This economic feasibility calculation is necessary to realise a cost efficient GHG reduction roadmap decision-making for implementing new technology into the companyÆs business operations. The GHG reduction roadmap is developed using the marginal abatement curve approach.

Jan 1, 2009

Base metal skarns have provided most of South KoreaÆs Pb-Zn production since the end of the Korean War, with the bulk of production coming from the Yeonwha group of mines. Currently only the Kumho Zn-Pb mine remains in production, while magnetite skarns are mined as iron ore at the old Yomisan and Ulsan base metal deposits. Base metal skarns within Korea fall into two groups; those hosted in Cambro-Ordovician limestone sequences, situated mainly in sub-basins in the northeast of the peninsula and those hosted within carbonate volcaniclastics of the Cretaceous Gyeongsang Basin, in the southeast. Sulphide mineralisation is dominated by sphalerite, lesser galena, arsenopyrite and pyrrhotite, with subordinate chalcopyrite and molybdenite with Ag-Co credits. Skarns are composed of pyroxene-clinopyroxene-garnet-carbonate-quartz and magnetite, grading into silica-chlorite hornfels. Most of the significant deposits display both pipe-like and stratabound morphology. In the Hwanggang district, a zoned distribution of Ordovician carbonate hosted, polymetallic Mo-W and Zn-Pb-Cu-Ag base metal deposits is observed around the margin of a Cretaceous granite intrusion. Similar polymetallic zoning is recognised in the Sangdong district, where deposits include Sangdong (W), Abisan (Au-As) and Yomisan Northwest (Zn-Mo) and Yomisan Southeast (Zn-Cu-Co), hosted in Ordovician carbonates in proximity to Cretaceous quartz porphyry intrusives. The Taebaeksan district hosts the largest deposits at the Yeonwha group of mines. Although production ceased in 1993, significant resources remain, hosted in Ordovician limestone and dolomite that have been intruded by Cretaceous quartz porphyry dykes. Deposits in the Cretaceous Gyeongsang Basin consist of bedding concordant, vertically stacked base metal skarn mineralisation at several stratigraphic horizons, connected by carbonate-base metal veins with a pipe-like geometry. Evidence such as massive sulphide layers and restricted proximal carbonates suggest mineralisation was initially partly syn-depositional, with both base metals and carbonate venting onto a lake floor, being reconstituted to skarns by later magmatic activity. Skarn mineralisation is universally closely associated with the Cretaceous Bulgugsa Series acid intrusive activity. A common intrusive-structural relationship is recognised at some deposits, with bedding plane and imbricate thrust faulting, introducing felsic intrusives as sills. These intrusions probably introduced the base metals, carbonate, boron, heat and silica, which metasomatically reconstituted the carbonate lithologies to form skarn assemblages. The Korean base metal skarn deposits are regarded as Zn-Pb chimney-manto skarns and display similarities to the Mexican manto type deposits.

Jan 1, 1999

By M Rea, E O’Connell

Decarbonising explosives manufacturing and catalysing low-carbon mining supply is a significant global challenge. Low-carbon manufacturing precincts – clusters of geographically close businesses across multiple industries that share a goal of adopting firmed renewable energy and decarbonising process emissions – offer one potential solution. In an Australian first, Orica commissioned tertiary catalyst abatement technology in 2023 to mitigate greenhouse gas (GHG) emissions at its Kooragang Island (KI) facility in New South Wales (NSW), Australia. The EnviNOx® technology (ThyssenKrupp Industrial Solutions AG, Dortmund, Germany) used reduces nitrous oxide (N2O), a potent greenhouse gas arising as a by-product of nitric acid manufacture. As a result, mining customers in NSW are now benefitting from ammonium nitrate (AN) products that are almost 50 per cent less emissions-intensive than those Orica previously offered. The $37 million project is a private-public partnership that has involved partners across Federal and State government, global engineering and technology vendors, local community groups and local carbon advisors to overcome financial barriers.

Sep 1, 2024

By R J. Goldie

The Monty Copper Gold Deposit is an ultra-high grade mine in Sandfire Resource’s Doolgunna region which was completely drilled out and developed within two years of commencing mine development. During this period, a total of 986 grade control diamond drill holes were completed, assayed, and validated, 15 levels developed, and 3136 faces mapped. The aggressive schedule meant a high flow of geological data was produced, validated, and incorporated into regular geological model updates. To process this data at a rate which allowed for timely use, more robust data processing methodologies needed to be generated. A new validation system was implemented which required two levels of validation being applied to any diamond drilling update. Step one was the validation of initial physical data including survey pick-ups and logging. This was done prior to new drill data being added to the geological model. Step two was the validation of assay data which was required prior to resource estimation. The implementation of Seequent’s Leapfrog Geo modelling software also allowed for a more seamless and efficient modelling workflow. The use of the Leapfrog Geo vein systems allowed for more rapid generation of geological models which then afforded more time for stringent assessment of the mineralisation system. An example of this was the introduction of cross-shift peer reviews in which opposing rosters of geologists would rigorously evaluate the previous rosters work prior to reporting. This additional level of validation resulted in more robust geological models and the identification of new ore trends. This presentation will detail the evolution of the Monty Geological model from a simple tabular indicated resource into a complex highly refined measured resource. Themes will include how the model was produced using workflows developed and optimised to meet key deliverables.

Mar 22, 2022

By C R. Fountain, W R. Cannings

The zinc-lead-silver mineral resource at Lady Loretta ranks amongst the worldÆs richest when measured in terms of in situ metal grades. However, the project remains undeveloped 28 years after its discovery in 1969. The primary obstacle to development has been the fine and complex grain structure of its ores, which make flotation concentration inefficient even with fine grinding. The size and remote location of the deposit have also hindered exploitation. BUKA planned to directly fume the volatile target metals from the ore when it acquired the project. Intensive, post-acquisition modeling showed the innovative processing route to be uneconomic, notwithstanding high metals recovery and low waste content in fume product. Progressive modifications and supplements to the underlying fuming process enhanced economics and resulted in a new mine-to-metal processing route for zinc-lead-silver ores. The proprietary, three-stage BUKA Zinc Process offers technical, economic and environmental advantages. It is expected to find widespread application in the treatment of ores and residues. However, neither continued R&D nor application to Lady LorettaÆs currently delineated resource can be justified under prevailing market conditions. The objectives and results of each step in the process development sequence are outlined with reference to their impact on the commercial viability of the Lady Loretta project.

Jan 1, 1998

By L Schürmann, R Kendall

Social licence to operate is becoming part of a mining company’s DNA in the same way as health and safety. Consequently, mining companies are receiving increasing pressure from their shareholders to ensure that they add enduring value to the local communities in which they operate. Apart from the shareholders, a company has responsibility to suppliers, customers, employees, the government and the community, which means under the social responsibility model they must be accountable to the other stakeholders. External and internal challenges in mining are increasing the difficulty and complexity of mines to operate. The external mining environment has a big impact on mining operations and is driving matters such as the focus on safety, responsible mining and resource management, sustainability issues, profitability and productivity. Considering this, it is expected that the widespread implementation of Environmental, Social and Governance (ESG) related practices across the mining industry in the next ten years will increase, not just for the big players but for juniors as well. Companies, investors, governments and insurers who fail to act on ESG matters are to likely face greater risks. Demonstrating leadership in ESG will ultimately become a differentiating factor and market participants have much to gain from embracing ESG stewardship as part of their competitive advantage. Stock Exchanges have an important role to play in advancing sustainability in the capital markets. It is for this reason that the Sustainable Stock Exchanges (SSE) initiative was founded to serve as a global platform for exploring how exchanges can enhance performance on ESG issues and encourage sustainable investment. The SSE initiative provides an effective platform for dialogue between the United Nations, stock exchanges, investors, companies and regulators in the mining industry. The paper will explain why ESG reporting is crucial for the survival of a mining company and how the lack of transparency could be detrimental to its public image and shareholder relations. The paper will also identify bodies that regulate ESG reporting, as well as the available tools that provide guidelines on reporting ESG matters. Key ESG reporting parameters (at a global scale) will also be highlighted.

Jun 22, 2022

In the pursuit of commercial solutions for environmental issues, individual problems are often identified, considered and resolved in isolation from other environmental matters and always at the end of the cycle û after the problem has been created. Inter-relationships are neglected if they are not seen to obviously impact on a specific problem and the issue at hand is plucked from the environmental landscape and dealt with in total isolation to all else. In a Zero Waste approach to environmental matters, all outputs are pursued as potential inputs. Industrial processes are viewed as a variation on natureÆs theme and opportunity pursued above all else. When viewed from this perspective, industry appears to have forgotten its origins. It has forgotten that it is principally about people. The juggernaut of global trade has forgotten that it is a small part of a big landscape and that its principal participants, people, cannot exist without healthy soil. Commercial activity in all parts of the world relies heavily on the ability of agriculture to produce the necessary inputs for industrial production. The care and nurturing of our soils is fundamental, not only to the survival of humanity, but also to the economic systems that support that humanity and to the industry which profits by it. Actual levels of domestic recycling in many countries around the world seldom reflect the 90 plus per cent desire to recycle recorded in surveys conducted by local authorities in almost every country. If the desire to recycle is far removed from the end result, why is it that the systems provided are so ineffective? It is obvious that what we do need is a recycling system that both engages and rewards the participant and stimulates the innate desire to support the environment. A recent trial in New South Wales, Australia, demonstrated that by giving individual households credits for recycling organic wastes, not only will contamination levels fall dramatically, but increased yields, improved soil structure, improved land values, reduced fertiliser costs and increased water use efficiency give the farmer good economic reasons for purchasing and applying quality composted product. By underpinning and securing the agricultural community, we secure the future of industry. The æCity to SoilÆ project linked the economic on-farm benefits of compost use with reduced contamination through the provision of rewards paid for by the purchase of product by the farmer.

Jan 1, 2006

By J Chan, T Baumgartl, A Plante, C Peltre, P D. Erskine

Mine soils are often organic matter and carbon poor due to disturbance, topsoil stockpiling and mixing with spoil. They present an opportunity to observe the accumulation of soil carbon arising from rehabilitation or ‘green carbon’ through organic matter inputs and may be considered for carbon credits. Soil carbon is known to improve multiple soil characteristics and is viewed as an indicator of soil health.When attempting to estimate soil carbon levels in the Australian coal mining regions, both coal and black carbon (BC) need to be quantified. Coalmine soils contain coal particles that are difficult to distinguish from organic matter using standard carbon analyses. BC, a material arising from the incomplete combustion of organic matter and fossil fuels, displays some similar characteristics to coal and is ubiquitous in Australian soils due to bushfires. The presence of coal and BC complicate the determination of green carbon levels in mine soils.A method to quantify coal and BC in mine soils from the Bowen Basin using thermal analysis and multivariate curve resolution is presented. By determining BC and coal contributions it is then possible to calculate green carbon levels in rehabilitated mine soils. Calculated green carbon levels are compared with bulk density as soil quality indicators.CITATION:Chan, J, Baumgartl, T, Erskine, P D, Peltre, C and Plante, A, 2014. Distinguishing carbon fractions in coalmine rehabilitated soils, in Proceedings Life-of-Mine 2014 , pp 491–498 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 16, 2014

By A Kleinitz, J Halilovic, K Trappitt

Mine operators use grade control to determine the destination of each block of material in the mine. In polymetallic mines, grades are best expressed in dollars: the Net Smelter Return, NSR, per tonne. To estimate NSRs, geologists working on grade control develop models for each geometallurgical domain in the mine. These models may incorporate observations on the mineralogy and grain sizes of the material being examined. The site’s mill operators contribute to the models by providing geologists with statistical analyses that relate assay results and mineralogical compositions to metallurgical parameters, such as the rates of recovery of each economic metal to each of the concentrates produced, and the compositions of those concentrates. The team responsible for sales and marketing of the site’s products contributes to the NSR models by providing details of the costs of shipping concentrates to smelters and refineries; and by providing figures that are specified in the smelter contracts, such as the payability of the metals in each concentrate and the fees charged by the smelter. The mill operators also provide, for the NSR models, equations to estimate the rates of recovery of deleterious materials to each concentrate. Deleterious materials comprise mostly halogens and amphoteric elements, both of which reduce the efficiency of smelters. Furthermore, deleterious materials such as antimony and arsenic may be poisonous to people and to the environment. The sales and marketing team provide specifics of the penalties that smelters impose upon deleterious materials. These penalties may reduce NSRs by tens of percent, possibly to levels below the cut-off grade. Thus, in the blocks that are subject to grade control, mine geologists monitor not only the concentrations of economic metals, but also the presence and abundance of deleterious materials. The preparation and maintenance of models, to estimate NSRs and to assess changes in the levels of potentially toxic materials to be mined, requires close and continuing consultation between corporate departments. There must be strong communication of mine geologists with the mill operators; with the people who market the mine’s concentrates; and, should there be a risk of encountering toxic levels of deleterious materials, with the mine’s health, safety and environmental officers. This co-operation could require radical changes in the structure of many organisations. However, experience suggests that such changes can significantly improve the profitability of a mine.

Mar 22, 2022

By R C. Schodde

"An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation. Over the last decade (2005–2014), a total of 439 significant deposits of gold and base metals were found in the world. Twenty (or 4.6 per cent) of these deposits were in the Pacific/South-East Asia (Pacific/SE Asia) region. In terms of contained metal, the region accounted for 1.6 per cent of gold and 13.8 per cent of copper found in the world. With regard to nickel and zinc/lead, the region’s contributions were insignificant.Over the same period, the Pacific/SE Asia region accounted for 6.6 per cent and 12.6 per cent of all gold and copper exploration expenditures in the world respectively. After adjusting for by-product credits, unreported discoveries and likely growth in resource, the unit discovery cost for the region was US$199/oz (compared to a world average of US$50/oz). For comparison, the unit discovery costs for the previous decade were US$55/oz and US$25/oz respectively. The region’s unit discovery cost for copper was US$0.036/lb (versus a world average of US$0.040). For comparison, the unit discovery costs for the previous decade were US$0.026/lb and US$0.008/lb Cu respectively.The region’s mediocre discovery performance doesn’t reflect its distribution of known mineralisation. Some countries within the region have a very good endowment per square kilometre.It is noted that the intensity of exploration (and resulting success) would be boosted if governments provided a more mining- and investment-friendly business environment and generated better precompetitive geological data sets (to identify new exploration targets and boost the country’s perceived mineral prospectivity). A multivariable regression analysis of a decade of data from the Fraser Institute’s mining company surveys found that a ten point increase in the Policy Perception Index or a 0.1 point increase in the Mineral Potential Index could boost (in the short term) exploration expenditures by 1.9 per cent and 2.7 per cent respectively. The resulting economic benefits of an expanded mining sector would be significant. The same story applies elsewhere in the world.CITATION:Schodde, R C, 2015. Discovery performance for gold and base metals in the Pacific/South-East Asia – 2005–2014, in Proceedings PACRIM 2015 Congress, pp 25–34 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 18, 2015