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By Sivell W

We discuss the origin of the Patuki ophiolite complex and the Dun Mountain ultramafics of Middle Permian age in Nelson, New Zealand. It is shown that the Patuki volcanics have strong affinities with tholeiites of mid ocean spreading ridges transitional to alkaline basalts similar to those from fracture zones and ocean islands. At D'Urville Island, typically pillowed alkaline basalts enriched in rare light rare earth elements (LREE) - ophitic spilites - are associated with LREE-depleted (N-MORB-like) tholeiitic spilites with intergranular textures. The metabasalts are associated with a wide variety of sediments, and with sediments are intruded by conformable sheets of serpentinite. Coarsely crystalline mafic and plagiogranitic rocks signify vents and magma chambers, and we propose that the group developed as ocean crust from a slowly spreading mid-ocean ridge, transform association, overwhelmed at intervals by volcaniclastic sediment. Detailed mapping at a scale of 1:5000, and stratigraphic and geochemical development and structural coherence, show that the group is not melange in the Franciscan sense. The Dun Mountain Group, of serpentinites, peridotites, dunites, gabbros and other rocks, intruded the upper Patuki Group as a linear series of aligned pods and sheets. They carried up with them tectonic inclusions of older rock, which were metasomatised, and altered wall-rock, and one low angle dike passed several hundred metres into overl~ing sediment, at moderate temperatures (500 C). The rocks did not act as a floor (and alleged source) for the Patuki, but partly post-dated and were emplaced into Patuki.

Jan 1, 1987

Sample preparation for gold samples, where the distribution and size of gold particles is often irregular, usually demands that a relatively large sample weight is taken to produce a representative sample for analysis. Traditional sample preparation of gold samples incorporated multiple stages of coarse particle size reduction followed by subdivision of the sample prior to final fine pulverising. This technique developed because of the limited equipment options available to laboratories. As a result significant errors are introduced and the final sample size being pulverised is a small fraction of the original sample weight. Three significant developments have occurred in the last 25 years to significantly improve sample preparation of gold samples: 1.  large capacity fine pulverising,2.  fine jaw crushing, and3.  whole sample coarse pulverising. In the mid-1980s an Australian manufacturer developed large capacity pulverising bowls which had the ability to reduce samples with a mass of 1.5 - 3.5 kg to a nominal 0.075 mm product in approximately three to five minutes. Laboratories were able to produce a large homogeneous pulverised sample which significantly reduced the error in sampling. However, exploration and mine samples are usually 7 to 10 kg and the sample requires a subdivision stage following crushing to produce the 3.5 kg for the pulverising step, thus introducing potential for significant error. The development of fine jaw crushing allowed particle size reduction to -2 mm which reduced the subdivision error of the bulk sample prior to fine pulverising. Subdivision of the crushed sample at -2 mm still results in potential sampling errors, where the gold particles are not sufficiently liberated to be representatively sampled. Clearly the best option would be to reduce the particle size small enough to ensure a representative sample prior to final pulverising. Continuous mills offer a partial solution but are relatively slow and subject the sample to differential pulverising prior to subdivision. Clearly this does not provide the best solution for routine laboratory applications where high volumes of samples are to be processed. The recent development of a large capacity coarse pulverising system allows samples of up to 10 kg to be reduced to -0.25 mm prior to subdivision, and fine pulverised to -0.075 mm. Laboratories now have the necessary equipment to perform reliable large capacity sample preparation of gold samples. The exact choice of a sample preparation scheme may still depend on particular ore types but the need for multiple crushing and subdivision stages is redundant.

Jan 1, 2008

The five main ways in which coal is used are1. for electricity generation,2. as a lump fuel for domestic and industrial purposes,3. for gas making,4. for making carbon for chemical and metallurgicalindustry, and5. as a source of coal tar and coal-tar chemicals.In the past about 80 per cent of Victoria's brown coal has been used for power generation and the rest for making a lump fuel, in the form of briquettes. Some of these briquettes have been used for gas making, and a carbon industry based on them has recently been commenced, and could expand rapidly. However the enormous increases expected in power requirements, approximately a doubling every 10 years, will ensure that even if the manufacture of carbon increases dramatically and a large amount of coal is used for other purposes, the brown coal industry will always be dominated by power generation. As new fuels such as natural gas, oil, and nuclear fuel become available at competitive prices these will take their share of the power generation load.Natural gas or oil, or possibly pumped storage hydro, will almost certainly be used for all future peak-load stations, comprising around 40 per cent of the total installed generating capacity, but new base load stations will continue to be designed for brown coal operation until about the mid-1980s, by which time nuclear power stations will become competitive. By this time Victoria will have installed about 6000 MW capacity of brown coal stations, burning around 50 million tons/year of coal, compared with 18 million tons/year at present, with perhaps 15 million tons/year being used for other purposes.This consumption of 65 million tons/year should then remain fairly stable over the life of the power stations installed, well into the 21st century. Brown coal therefore appears to have an assured place in providinga major part of Victoria's fuel requirements, despite the diversification in fuel usage pattern which appears certain to occur with the recent developments in new fuel resources.

Jan 1, 1971

By Salley J, Gould WD

The stack-gas scubber effluent from base metal smelters often contain 20-100 ppm of oxidized selenium salts. Due to their toxicity, these must be removed from solution prior to release of the effluent to the environment. Many species of microorganisms including Corynebacterium diotheriae, Neurospora crassa, Candida albicans, Escherichia coli and various species of Salmonella are capable of assimilating oxidized selenium and reducing it intracellularly to red amorphous selenium. CANMET in cooperation with several companies has developed a biological process to recover selenium from dilute solutions. The laboratory, mini-pilot plant and the large industrial pilot- plant studies leading to the development of this process will be described.

Jan 1, 1990

This case study describes various aspects of establishing a laboratory facility for testing chemically-cemented fill materials. The applicability of data obtained from such a facility related to mine conditions depends on many factors: kind of data, type of testing facility, sample parameters (composition, geometry, size, etc.). The equipment employed must be adaptable, to accommodate variations in sample size and properties. The design, construction and operation of the testing facility is described, and its application to fill samples prepared from sulphides and oxides both chemically and naturally cemented. The present system was selected following an extensive study of equipment available for testing materials in the fields of rock mechanics and construction materials. The strength testing' facility incorporates Linear Variable Differential Transformers for monitoring both lateral and axial displacements during sample compression. The output from these and from other related instrumentation can be recorded or fed direct to a computer, enabling stress-strain data to be printed out while the test is in progress. Also described are controlled environment curing facilities which allow samples to be cured or weathered under different temperature or humidity conditions to simulate long-term ageing and in place conditions.

Jan 1, 1973

Mining is a high risk, high capital and potentially high reward undertaking. A large proportion of the risk comes from a lack of definition of the orebody (which also provides some of the potential) and the unpredictable nature of the market. This makes the planning process difficult but encourages the development of a robust yet flexible mining system. The system should be capable of absorbing some deviation from the anticipated concept without a significant impact on profitability. The mine planning process tends to consist of a series of related but discrete stages. For instance, the pit shells are designed, a schedule for the pit shells is created, a plant fleet is chosen to achieve the schedule and a financial analysis is carried out on that scenario. It is likely a few iterations are carried out using various mill throughputs to produce a favoured financial result. The problem is that handing results from stage æBÆ for use in æCÆ doesnÆt encourage a flexible system. æCÆ is likely to be built for exactly æBÆ. Unfortunately, in mining, æAÆ (the orebody) has the highest potential for variability and impacts everything else downstream. æDÆ the market also has high potential for unplanned variability. These variations can spread and æreverberateÆ through the whole mine process. For example an unexpected increase in ore oversize impacts all downstream mine processes to the primary crusher which may in turn create problems back æupstreamÆ by restricting throughput rate. Also an unexpected drop in demand or price could require modifications to the planned production rates. This paper looks at how mining process simulation can be used to support the development of strategies to counteract unforseen circumstances or alter production to match fluctuations in demand and price.

Jan 1, 2003

The Beruang Copper-Gold Deposit is located very near the centre of Kalimantan in Indonesia. It is a dacitic tuff hosted deposit currently being explored by Kalimantan Gold Inc of Canada. Exploration activity to date at Beruang has been focused on the Main Zone, which is defined by a north-south elongate, 1 + 1.5 km zone of anomalous copper and gold, and intense phyllic alteration. The disseminated sulfides responsible for the anomalous copper values produce a moderate to high chargeability signature. Phyllic alteration is overlain at high levels, and on the western edge of the Main Zone, by advanced argillic alteration. The dacite tuffs hosting the mineralisation are cut by post-mineralisation dacite dykes that are delineated by ground magnetics and geological mapping. Base metals, principally zinc and lead, form broad halos around the Main Zone. These metals are incorporated in massive NE-trending, polymetallic mineralisation that outcrops to the north and south of the Main Zone. IP survey results highlight the highly pyritic NNE-trending shear zone, which hosts most of the copper mineralisation in the Main Zone. A high chargeability anomaly at depth in the central-east part of the Main Zone is interpreted to be the source for mineralising hydrothermal fluids. This is suggested by zonations in alteration and mineralisation. A deep chargeability anomaly can be correlated with the downward plunge of a pyritic breccia, encountered at shallow levels in drillholes, and is a potential breccia pipe target. Compilation and inversion modelling of the IP results has yielded some interesting drill targets.

Jan 1, 2004

By Sullivan T. D, Lohe E. M

Geological structure is one of the main controls on ground conditions within mining. It has a significant impact on the mining conditions and productivity of coal mines within the Sydney - Bowen Basin. The three main types of faults common to this region, normal, reverse and strike-slip systems, each present distinct challenges to mining. These systems effect a wide range of geotechnical and mining conditions within the mines. These include coal quality, strata stability, goat and caving behaviour, productivity and maintenance schedules of mining equipment, mine design and mine-site stress fields. A better understanding of the regional, local and mine-scale structural setting, timing relationships of structural events and the mechanisms of fault formation will greatly aid industry's push for greater productivity and competitiveness.

Jan 1, 1991

By P Commander

Western Australia is a major exporter of minerals, which places significant economic and environmental responsibility on Government and the stateÆs mining industry. Moving into the 21st century, mineral production in Western Australia is $14 billion accounting for 50 per cent of the stateÆs export income. There are over 60 large-scale mining operations distributed throughout the arid regions of the state (less than 300 mm/year rainfall). There are four key mineral provinces in arid Western Australia including the Pilbara (iron ore), Murchison (gold), Northern and Southern Goldfields (gold and nickel). These provinces have significant differences, particularly in respect to groundwater demand from mining and mineral processing, aquifer systems that are utilised, and approaches to groundwater management. The arid nature of the stateÆs interior and subsequent lack of surface water resources has required substantial groundwater resource development by the mining industry. A variety of aquifers have been explored and utilised ranging from shallow alluvium and calcrete, discrete fractured zones in bedrock, concealed palaeochannels and inland sedimentary basins. Groundwater usage by the mining industry is about 150 GL/year with most abstraction related to mine dewatering, mineral processing and dust suppression. Groundwater abstraction in Western Australia is regulated by the Water and Rivers Commission. In the Goldfields, the depletion of brackish (>2000 mg/L) and saline groundwater from storage is permissible, as mining is considered the beneficial use for groundwater which may be as much as 200 000 mg/L. In contrast, the low salinity groundwater of the Murchison and Pilbara is allocated on a sustainable basis. The role of monitoring and ongoing aquifer reassessment is crucial in water management, in evaluating the condition and performance of stressed aquifer systems. Mining operations face a variety of water resource issues ranging from insufficient availability for processing to excessive mine dewatering. These issues also change as a mine operation proceeds through its development, commonly starting with a deficiency and moving into surplus as deeper pits require more dewatering. Operating mines have to contend with three main issues: water supply, wastewater disposal and contamination of local water resources. In contrast, post closure issues are related to aquifer recovery or re-establishment of groundwater equilibrium, development of pit lakes in mine voids and isolation of waste products and associated seepage or run-off.

Jan 1, 2003

By Sobek S, Lotzien RM

Although the conventional procedures for designing agitator flotation plants are well-known and reliable, little experience for designing modem pneumatic flotation plants has been gained up to now. A reliable procedure originating from graphic methods for the design of distillation columns is presented. Examples demonstrate on laboratory and semi-technical scale the application of this extremely practical method for designing a fly ash and a magnesite flotation plant.

Jan 1, 1993

By Milner SC

Four quartz latite rheoignimbrite units (units I to IV) mapped in the Goboboseb Mountains have been traced to their eruptive source, the Messum intrusive complex; this is a complex multistage ring structure (18 km diameter) with well defined gabbroic, monzonitic, and syenitic intrusive phases, and a central ring zone containing mixed rhyolitic to latitic agglomerates. Three of the four quartz latite units are correlated with the upper and lower (2 units) Springbok quartz latites outcropping some 90-130 km north of McIsum. This implies minimum volumes of 300-500 km for wits I and III (Lower Springbok) and 2200-2600 km for unit IV (Upper Springbok). This latter unit is still ti 300 m thick at its outcrop limit, some 130 km from Messum. Each of the four units represents single cooling units. Lithologically, each can be divided into three zones: A basal, dark grey to black flinty or glassy zone, often with highly attenuated fiamme (ressembling flow banding); a central massive and strongly recrystallised zone; and an upper variable zone which exhibit breccias, contorted flow banding, and amygdaloidal to pumiceous clasts. Their overall characteristics tend to be intermediate between ash flows and lava flows. The rheoignimbrites are interpreted as the oproducts of dense, high temperature (950¦-1100 C) ash flows which underwent rheomorphism and lava-like flow prior to their final cooling.These large scale eruptions are related to the initial rifting of Africa and S. America, possiby in response to a major hot spot.

Jan 1, 1990

This paper summarises the results of a study carried out for the Sustainable Minerals Institute, University of Queensland, aimed at identifying the major water-related issues facing the minerals industry internationally and the research required to support the development of practicable solutions. An overview is given of the sources and uses of the worldÆs water resources and of the regional and global sustainability of water supply and management. Agriculture is the worldÆs major user of water; it wastes more water than the minerals industry uses. Water reform and its potential impact on the minerals industry are discussed with particular reference to Australia and South Africa. The sources, uses and management of water on mine and processing sites are outlined. Particular attention is paid to the importance of groundwater as a source of often saline water that can be used in mineral processing and for other purposes. Aquifer storage and recovery has the potential to help conserve water resources. Generally, the major uses of water on mining and processing sites are for mineral processing and refining and for the associated tailings disposal. Water consumption for these purposes may be reduced by recycling process water, using saline water, paying close attention to water management, thickening tailings and using techniques such as dry stacking and paste. A change in the minerals processing paradigm in respect of water use could come through research into new, improved and less costly dry processing techniques. The treatment of mine and processing water will be required increasingly before water is reused, stored, discharged or sold, and before sites are decommissioned. Research and development are required to reduce costs and develop new treatment methods. Mine closure and decommissioning raise a number of long-term water issues requiring continuing generic and site-specific research and development.

Jan 1, 2003

The working of alluvial deposits has from all times been a popular form of mining, not only from the simplieity of its operations, but also, in its more primitive stages, from the possibility of carrying it on without large capital, without skilled lahour, expensive plant, long terms of preparatory work, or, in fact, any other requisite than a shovel, a dish, and a stout pair of arms. It is possibly one of the oldest industries, and probably, also, it has been one of the most profitable.In tbe Australian States the happy days of rid alluvial deposits, when gold was to be hltd for the shovelling, are now almost over. The lust for gold has caused almost every corner of the world to be ransacked, and the more easily earned wealth to he exhausted: for the most part there remain now those deposits only which are too poor to be profitably worked by means of the implements and methods of old times. But, though the deposits have become poorer, the keen inventiveness of man has devised means whereby such large quantIties can be treated at a cost so low that he can still make a profit out of them. In this article, out of the many means devised, three only will be referred to-viz., hydraulic sluicing, bucket dredging, and hydraulic dredging. All mining may be divided into three principal operations-1st, the breaking down and conveying of the ground to where it is to be treated for the recovery of the metallic values, 2nd, the treatment of the material for the recovery of those values; and, 3rd) the removal of the worthless material or tailings. In all mining the object is to effect these three processes for the least expenditure of money commensurate with the highest degree of efficiency.

Jan 1, 1907

By M P. Sandy, J B. Simpson

The empirical stope design techniques developed by Mathews et al (1981) and refined by Potvin (1988) and others, have gained rapid acceptance in Australia in the 1990s as a simple, æfirst-passÆ means of designing primary stopes. However, it is recognised that these æstability graphÆ methods can only provide broad design guidelines. Recently published stability graphs (Hutchinson and Diederichs, 1996) encompass a wide range of geological environments, which are not discussed, and the influence of time and blasting practices cannot be easily reviewed. The æscatterÆ in the graphs must reflect, to some degree, different operating practices as well as subtle but important differences in the pre-mining conditions that are not adequately accounted for in the æmodified stability numberÆ. Development of a ælocalÆ, site-specific stability graph may overcome some of these problems. At NormandyÆs Golden Grove Operations, Western Australia, detailed reviews of stope stability performance, including Cavity Monitoring System (CMS) surveys, are undertaken for every stope, with the objective of developing a series of local stability graphs, customised to site conditions and calibrated in terms of æAverage Falloff ThicknessÆ (AFT). Cablebolting of stope hangingwalls is used to develop reinforced æbeamsÆ on each sublevel, effectively dividing the full span into smaller, more stable æsubspansÆ. By analysing stope stability performance in terms of fall-off, cost-benefit studies can be undertaken of the effect of cablebolting and other options for modifying stope spans. The approach used to develop the local stability graphs, and their integration into routine stope design procedures at Golden Grove, is described. The experience gained during stope extraction in the Scuddles orebodies has been successfully applied to the Gossan Hill æC-PanelÆ orebody. This methodology should be applicable to other underground mining operations.

Jan 1, 2000

The Hall-Heroult process is likely to be the dominant method of aluminium production for the remainder of the century. The characteristics of the operation of a modern smelter are described and attention drawn to their disabilities which are due chiefly to the small production capacity of individual cells.The principal components of the Hall-Heroult cell- the electrolyte, the anode and the cathodes are discussed in order to identify the problems of scale-up. The factors influencing current efficiency and energy consumption are analysed and lead to the conclusion that the greatest potential for energy saving lies in reducing the anode to cathode distance (ACD).The most promising direction for major change is in the application of a new titanium diboride-carbon composite for coating of the surface of the cathode carbon. It improves the wetting of the carbon by aluminium and should permit the use of sloping cathodes and anodes. The deep metal pad would thereby be eliminated and, in the absence of magnetic perturbations, the ACD could be substantially decreased.

Jan 1, 1987

Life inside the mining family was regulated by the mine. The whistle shrieked the change of shift to the Cornish, Welsh and German miners digging the alien soil for copper at Burra in the 1840s and the deep quartz gold mines at Bendigo in the 1880s.During the golden years of alluvial mining in the 1850s, and later out on the frontier fields of Kalgoorlie and Jarrahdale in Western Australia, the lure of the mine dominated family life. How could it do anything else? The canvas tent, bark hut or weatherboard cottage in which the mining family lived close by the mine facilitated prompt access. The working man of the family attended to the demands of the mine first, and those of his family afterward. Who then organized and nurtured the mining family? The role of the mining wife was multi-fold. She played the traditional roles of home-maker and comforter, raising her children, tending her house and vegetable garden and supporting those friends and acquaintances who had lost children to disease, or menfolk to the mine. Epidemics of measles, the whooping cough or influenza carried away children in infancy or at too young an age. The death of a husband through accident or disease (pthisis was a likely killer) forced upon the mining wife another role, that of provider. When Elizabeth Vigus' husband died in a Bendigo mine accident in March 1880 Elizabeth set up a grocery business to support her young children.' But in other cases the mining wife supplemented the family earnings by part time work, not in the mines for the Mines Act legislation of 1842 forbade the working of women underground, but in auxilfiary occupations which were in demand.2 Ann Mitchell, a herbalist ,found plenty of work in the goldfield towns of Daylesford and Maldon in the 1860s and 1870s.3 So too did Susan Rule and her daughter Catherine who conducted a sewing and millinery establishment in Beechworth in the 1870s.4 The making of the family's clothes was another task of the mining wife and mother.Until the wonderful invention of the sewing machine, this was a tedious and time-consuming task. James Slater Edmonson bought his wife a Wertheim for the sum of 12 pounds in June 1886, just before leaving her and his chil- dren in the Adelaide suburb of Goodwood whilst he went alone to the goldfields of the West. In October of that year he wrote to Louise telling her how he missed the childrens' wondering "whether Slater wore my old shirt now. I always think of him as he sat on my knee at breakfast in that old shirt; and how pleasant it would be if I could rock both of them and sing as I used to do".5

Jan 1, 1988

Precious metal mineralization at the North Arm goldfield in SE Queensland occurs in the Triassic North Arm Volcanics, a sequence of andesite to rhyolite, pyroclastic and epi- clastic rocks deposited in a continental envir- onment. This unit displays a well-defined fracture system on Landsat imagery, including several arcuate structures which may represent former calderas. Two of the latter are associ- ated with zones of hydrothermal alteration, breccias and anomalous precious and volatile metal values. At the North Arm prospect, alter- ation is zoned from outer propylitic into exten- sive sericitic, although K-feldspar alteration is prevalent in the rhyolite. A zone of advanced argillic alteration is also present at Mt. Ninderry, SSE of North Arm. Alteration involves depletion of Na, Ca and Sr, and vari- able enrichment of S, As, Au, Ag, Hg and Mo. K and Rb are strongly enriched in K-feldspar altered zones. Precious metal mineralization occurs in veins, stockworks and hydrothermal breccia zones, and pervasive low grade Au-Ag dispersion is found throughout the sericitic and K-feldspar altered rocks. Veins and brec- cia interstices contain abundant quartz (common- ly banded), minor pyrite, calcite and sericite, with traces of silver grading to electrum, frei- bergite, naumannite, allargentum, marcasite, chalcopyrite and sphalerite. Mineralogical and geochemical characteristics are consistent with that found at volcanic-hosted epithermal precious metal deposits, particularly with the low-sulphur/adularia-sericite type.

Jan 1, 1987

The appearance of the Cornish miner in South Australia was, in the simplest terms, the result of resource development economics. In Cornwall in the middle of the 19th century tin and copper mining was declining, while in the new colony of South Australia copper mining was booming. Experienced hard rock miners in Cornwall there- fore escaped unemployment at home by accepting an assisted passage to South Australia. There, in a colony where they were needed, they made their skills available and received good wages. There are many testimonies which support this simple thesis. Take for example the following extracts from contemporary newspapers in Corn- wall: Persons of small capital will find this an excellent opportunity for emigrating to the young and thriving colony ... The miner will find a rich and unbroken field for his operations. The Colony abounds with minerals... (West Briton, 19 July 1844) Miners make a great deal of money here (South Australia). All of them earn ú2 to ú3 per week and in many cases when they have a portion of the mine on tribute one person has cleared ú100 in a couple of months or so. (Cornwall Royal Gazette, 21 July 1848)

Jan 1, 1987

The Palaeozoic succession of Victoria contains one of the world's major gold provinces with a total production of 2500 tonnes of gold. Larger deposits, including Bendigo (over 800 tonnes Au), are related to Ordovician slates and greywackes, but a wide range of metamorphosed sedimentary and igneous rock types are host to significant gold deposits. Most, if not all, deposits demonstrate structural control, although the controlling structural features are variable between deposits: a majority of deposits comprise quartz veins. It is suggested here that a major factor in making Victoria such a gold-rich province might be a particularly high geothermal gradient in central Victoria during the Tabberabberan orogeny (360-380 my). This generated auriferous metamorphic fluids from underlying successions (?Cambrian) which migrated upwards along active structural pathways. One cause of gold deposition appears to have been fluid reduction by carbon, but other methods are suspected. This model is considerably simpler than the plethora of syngenetic, granite magmatic and lamprophyre-related models that have been proposed recently, but is in basic agreement with Cox et al. (1983). Exploration models for similar gold deposits both within Victoria and elsewhere should take account of the negligible evidence for a major syngenetic contribution to Victorian gold production, and the lack of any clear genetic relationship to particular igneous rock types. A real opportunity exists for new deposit types not identified by the early prospectors.

Jan 1, 1991

For the last decade Australia has been the leading exporter of both steam and coking coal. In the ten-year period 1989 - 1998 steam coal exports increased by 93 per cent and metallurgical coal exports increased by 50 per cent. However, profitability of the steam coal sector has been disappointing. The coking coal sector, especially the hard coking coal segment, has fared better but its profitability was more because of its ability to maintain relatively high prices rather than its inherent productivity. Until quite recently the Australian coking coal sector was widely expected to be able to maintain this comfortable state without undue effort for the three major æpartnersÆ; the companies, the State Government and the unions. But coking coal could now be heading down the path followed by steam coal that ends with long-term over-supply and, despite steady improvements in productivity, poor profitability. Steam coal entered the ænewÆ era of long-term over-supply some years ago. Over-supply was due to the rapid increase in production in Indonesia, often from new mines and Australia. AustraliaÆs production rise was underlain by the apparent belief that the best way to lower costs was to increase production. In the first couple of years costs didnÆt fall much but the additional tonnage was sold at lower and lower prices into the spot market. By mid-1998 the difference between the contract price set with Japanese utilities and spot sales was often in excess of $US12 per tonne. Japanese contract prices and tonnages have since fallen significantly. Steam coal has moved from being a product to being a commodity. Any profits are due more to the low Australian dollar rather than inherent mine productivity. Seaborne coking coal trade has been dominated by Australia, Canada and the USA, with the USA becoming less competitive. Unfortunately, when the Queensland capacity expansion was well down the pipeline, the Asian financial crisis occurred and the Japanese economy entered what appears to be a long-term recession. Contract prices fell 18 per cent, tonnages decreased and some mines have been reclassified as supplying lower priced coking coal. The paper analyses past and expected future trends in labour and mine productivity, rail freight and FOB export port cash and total costs of the Australian steam coal and coking coal sectors and discusses the market outlook for Australia. The future economic viability of the industry is analysed and discussed in the light of the rapidly changing global environment.

Jan 1, 2000