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By A Torpy, N C. Wilson

Improvements in electron optics, field emission gun design, and X-ray detector technology have led to the development of a new class of microanalysis tools. By combining multiple wavelength dispersive (WD) spectrometers, spectral energy dispersive (ED) spectrometers and cathodoluminescence (CL) data sets, a wealth of information can be collected during routine electron beam mapping and analysis. In this paper, data collection on a field emission electron microprobe equipped with five wavelength dispersive, two silicon drift energy dispersive X-ray spectrometers and a wavelength dispersive linear array optical spectrometer has been automated with the optical, electron and X-ray signals being collected in parallel. To analyse the large hyperspectral data sets we have implemented an autoclustering strategy that can be used to produce a quantitative chemical phase map. The cathodoluminescence spectra can be deconvoluted to produce peak intensity maps, which are then converted into elemental speciation images with quantitative sensitivity down to parts per million levels. Both methods are illustrated using typical mineral processing examples, firstly a Ni-laterite sample is investigated with the fine-scale distribution of Ni examined in detail. Secondly, a scheelite sample with rare earth zoning in mapped and rare earth levels quantified.

Jan 1, 2008

Managing project exposure and risk has numerous viewpoints, including those of engineers, owners, bankers and insurers. Fewer stakeholders are involved in early stages, though with wider risk management techniques and tools available. The costs and sometimes benefits of the occurrence of risk and uncertainty have different contingent outcomes for different stakeholders. For some, the impact of risk outcomes can be mitigated or managed. Some sectors and stakeholders can manage resources project risks more completely, by choice or by externally imposed forces, opportunities and constraints. The core to resources project risk management lies in the identification and analysis of project risks, the examination of project management risk options and alternatives, and the determination of which risks are able to be controlled, managed or laid off to third parties. Without prior risk identification and knowledge, the wildcard of previously unidentified or unconsidered project risk impact has the potential for fatal impact to one or more stakeholders. A range of case studies is reviewed, from exploration projects to development and operating projects, with relevant learning experiences, from the risk management lessons available from the oil and gas sector as well as the mining sector. For many cases, the emphasis focuses on the risk analysis modus operandi and on risk management and risk mitigation techniques that can be and in some cases have recently been implemented for resources project and related debt, capital markets and equity project fundings.

Jan 1, 2003

By P Elliott, D Pershke

In a minerals processing context, sustainability is about using natural resources more efficiently to achieve maximum economic benefits with minimal environmental impacts. It embodies five overarching themes, which the paper will illustrate with practical examples from Australian minerals processing plants. These are:resource utilisation and materials efficiency,process waste reduction and enhancement of co-product values,reduction of water use and impacts,reduction of energy requirements and greenhouse gas emissions, andenhanced control of minor elements and toxic materials. Sustainability could be embedded profitably in minerals plant design in three dimensions: 1.technology,2.design, and3.operations. This presentation discusses a set of principles that could be applied to minerals processing technologies and provides an outline of sustainability assessment and opportunities evaluation tools. The application of the tools is illustrated through a case study by analysing a suite of nickel processing technology routes. The analysis reveals that current generation of nickel processing technologies do possess real potential to emerge as sustainability champions in integrated processing of nickel ores and concentrates, if they are designed, engineered, and operated for sustainability and adapted effectively to site specific constraints and opportunities. The paper will address data gaps and uncertainties regarding the impact of scaling up of pilot-plant performance, and provides strategies to overcome them.

Jan 1, 2006

Companies involved in the mining industry are exposed to risks, referred to as corporate risks, as part of the business process. Directors and management should be aware of these risks and make appropriate business decisions to address each risk. If business risks are not addressed on a timely basis the consequences are likely to be serious and will adversely impact the ultimate success of the business.The key corporate risks are:Poor cash flow and treasury management. ò Incompetent or unmotivated staff.ò Poor product quality.ò Accounting systems that do not provide meaningful and timely information.ò Computer system deficiencies. ò Ineffective credit screening.ò Assets not adequately protected.ò New ventures undertaken that are either inappropriate or not adequately researched.Exposures to corporate risk should be dealt with by Directors and management by systematically identifying major risk areas and implementing appropriate internal and management controls to deal with such risk areas. Proper management controls and procedures include the setting of overall corporate objectives and policy, monitoring adherence to such policy, establishing early warning systems to highlight problem areas and maintaining security over assets.

Jan 1, 1990

By P A. Dowd

This paper describes an integrated approach to the evaluation of ore loss and ore dilution via geostatistical simulation of in situ geology and grade characteristics, simulation of blasting mechanisms and simulation of loading from a blast muck pile. The approach is demonstrated on a case study. The sequential Gaussian method is used to simulate in situ bench grades on the scale of the smallest selectable volume within a blast muck pile. The simulated grades of these component volumes are interpreted as the reality that would be available with exhaustive sampling. The simulated bench is subjected to a blast simulator, based on the SCRAMBLE model, which effectively moves each of the component model volumes to its final resting place in the blast muck pile. Ore/waste delineation and selective loading processes are applied to the simulated muck pile to determine the degree of selectivity that can be achieved by various sizes of loader and types of loading and to quantify ore dilution and ore loss. An in situ model representing the reality of knowing only the data and information that are available from specific grade control drilling and sampling grids is obtained by sampling the geostatistically simulated model on a specified grid. The volumes comprising the in situ model are then populated by estimates based only on the data and from the specified grade control drilling and sampling grids. Different drilling and sampling grids are used to generate different models, each reflecting the levels of data and information available. Selectivity is assessed as a function of the drilling and sampling grids as well as the size and type of loader. Performance is assessed against the ideal selectivity that could be achieved on the perfect knowledge model comprising the simulated values of each component volume. Costs, prices and financial criteria enable an optimal selection of the grade control drilling grid, size of loader, type of loading and blast design.

Jan 1, 2004

Viking Holdings Ltd, a Todd Corporation company, is active in the mineral industry through operations, joint ventures and equity investments. Identification and management of risk is key to the success of the company. This paper discusses risk in general terms and in the context of Vikings activities. Reference is made to the current environment and the impact of risk and environment on profitability.

Jan 1, 1997

By S D. Golding, K Baublys, V Nanjappa, C J. Moran

Water reuse is becoming an integral component of the water management strategy on mine sites. This practise is being driven by corporate sustainability goals, community and societal pressures to demonstrate improved water stewardship, as well as climate and regulatory pressures. However, water reuse often results in water quality compromise which can then result in decreased recovery through problems in processing circuits, product quality, and an increased likelihood of discharge of water that cannot meet environmental regulatory requirements. On most mine sites, there is usually a disjuncture between water quantity management and water quality management with the latter being managed solely as an environmental problem. It is becoming increasingly clear that water quality and quantity must be managed as an integrated system. In order to integrate water quality and quantity management to achieve multiple objectives the dynamics of water and constituents must be understood. Using examples from a study being conducted at a coal mine in the Bowen Basin, this paper will outline the dynamics of water and salts on the site.

Jan 1, 2009

The cost-effectiveness of blasts involving radiating blastholes is cur- rently restricted in the following ways. (a) Significant percentages of potential explosion energy are not being liberated; the collar sections of some charges are being dislocated and/or desensitised by the detonations of adjacent earlier-firing charges. (b) If the minimum charge spacing is too small, detonation of an early- firing charge can initiate an adjacent charge sympathetically, thereby eliminating the benefit of any intended inter-charge delay. (c) The overall distribution of energy is poor. Appreciably better fragmentation would be achieved if current drill- ing patterns were to be replaced by staggered fans/rings having a toe spac- ing : burden ratio of about 4 : 1. This wide-spaced pattern would enable a higher percentage of the potential energy to be released, would reduce the incidence of sympathetic detonation and would provide a superior overall distribution of this liberated energy. If improved fragmentation is not required, the proposed fan/ring design should allow a significant expansion of the blasthole pattern with consequential cost savings in drill- ing, explosives and initiation.

Jan 1, 1988

By Smith CB, Boxer GL

The Argyle diamond deposits in the East Kimberley were found as a result of a long term exploration programme, begun in 1972 by the Kalumburu Joint Venture (KJV), to search for diamonds on the Kimberley craton. When CRA Exploration Pty. Limited joined the KJV in 1976, it was re-named the Ashton Joint Venture (AJV). The Kimberley craton was considered prospective by analogy with structural settings of diamondiferous kimberlites in Africa. Diamonds were found during regional drainage sampling in Smoke Creek in late 1979, which led directly to the discovery of the rich Argyle lamproite diatreme (AK1) and associated alluvial deposits of Smoke and Limestone Creeks. The diatreme intruded into quartzites, sandstones and shales of Adelaidean age, and consists predominantly of lapilli ash tuff, with minor coarse and fine ash tuffs, 'non-sandy tuff' and olivine lamproite dykes. Erosion of the diatreme has produced the alluvial deposits of Smoke Creek and Limestone Creek to the north and east. Argyle diamonds are of predominately industrial quality, and the typical diamond is a brown, irregularly shaped, frosted, heavily resorbed form with abundant graphite inclusions, well developed etch channels and prominent hexagonal surface depressions. The pre-feasibility evaluation of AK1 comprised diamond drilling, surface and underground sampling, metallurgical sampling, marketing studies and ore reserve estimation. The proven AK1 ore reserve is 61Mtonne at 6.8ct/tonne. Evaluation of the alluvial deposits gave results of Upper Smoke Creek, 580 000 tonne at 4.6ct/tonne and Limestone Creek, 1.7Mtonne at 3.5ct/tonne. Commercial production from the two alluvial deposits began in 1983 with production for the year reaching 6.2 Mct. Mining of the alluvial deposits at three to five Mct/year is proposed to continue until the start of mining of the AK1 deposit in late 1985 or early 1986 at which time a new processing plant and associated infra- structure will have been constructed adjacent to the AKl deposit in the Limestone Creek area. Production is planned at three Mtonne/year, producing 25Mct/year, which will make Western Australia the largest producer of natural diamond (by weight) in the world.

Jan 1, 1984

By Khosrowshahi S

The objectives of grade control remain unchanged but new methods are being developed to attain them. Since the early-1990s, an improvement in the power of mine site computers has made the geostatistical tools of conditional simulation more accessible. Optimisation of the grade control process on mine sites now involves two stages: optimisation of the sampling regime and optimisation of the interpretation of ore and waste boundaries. Optimisation of the sampling regime first requires an understanding of the nature of the mineralisation and in particular the impact of particle size on the sampling precision. This relationship, termed the Fundamental Error of sampling, enables an optimum subsampling protocol to be defined for the sample preparation and assaying. However, the actual sample collection method, whether drilling or trenching, must be correctly selected and the sampling grid should be optimised. The relative costs and benefits of various alternative sampling methods and grids can be determined using the method discussed. The use of the grade control data can also be optimised. In the past ore and waste boundaries were often defined using a linear interpolation algorithm that smoothed the data (such as polygonal, sectional, inverse distance squared or even kriging methods). Frequently the relative impact of ore loss and dilution could not be estimated. Conditional simulation to generate equiprobable alternative maps (realisations) can now be adopted to address these issues. A transfer function is then used to evaluate the similarities and differences between the maps. The Ore Block Optimisation (OBO¬) process is a transfer function that produces a three-dimensional model of the optimal ore block outlines. This provides a clear guide for the mining geologist to refine and mine. The nature of the transfer function and the inputs and outputs are discussed. In the past, reconciliation has been the `acid test' for any grade control system. Any ore blocking method based on conditional simulation can make use of the exhaustive data set to ensure that reconciliation between prediction and production will improve significantly. The OBO¬ method provides a guide to the mining geologist to ensure that the best ore blocks are mined. Misclassification between ore and waste is reduced, ore loss and dilution are minimised (and are measurable) and ore is optimally assigned to stockpiles of various cut-off grades. These advantages significantly enhance mine profitability and control of the mined grade.

Jan 1, 1997

By Y L. Ma, M Chen, W Bruckard

With the extensive exploitation and gradual depletion of high-grade copper reserves, the mining industry is paying more and more attention to the hydrometallurgical extraction of copper from lowgrade and arsenic bearing copper ores. Hydrometallurgical processing, such as heap leaching, column leaching and bioleaching, provide a viable alternative to the traditional pyrometallurgy due to its harmony with the environment, moderate capital investment, and low operating costs. However, the slow leaching kinetics of enargite (Cu3AsS4) and chalcopyrite (CuFeS2) remain problematic for commercial leaching practice. The formation mechanism and the nature of the passivating layers during leaching is still a matter of debate in hydrometallurgical research. In this study, the dissolution mechanism of enargite and chalcopyrite in sulfuric acid solution was investigated using a range of electrochemical and spectroscopic analysis methods. Electrochemical oxidation of enargite demonstrated an obvious passivation region from 500 to 750 mV (Ag/AgCl). The formed passivation film was found a n-type semiconductor behaviour, which is different from the original enargite with a p-type behaviour. The results of X-ray photoelectron spectroscopy (XPS) suggested that a nonstoichiometric film Cu(3−x)As(1−y)S4 (x>>y) accumulated on the electrode surface, which accounted for the obvious decrease in current density in the passive potential region. For chalcopyrite, three important potentials of 550, 680 and 730 mV which are related to the formation and dissolution of passivation film were observed based on the cyclic voltammetry (CV) and potentiodynamic polarisation. Raman and X-ray absorption near edge structure (XANES) spectra studies of the chalcopyrite electrodes after being treated under these three potentials indicated a metal-deficient sulfide of Cu1−xFe1−yS2 (y>>x) might be responsible for the passivation phenomenon. Hence, it is concluded that the passivation of enargite and chalcopyrite are similar which are caused by metaldeficient sulfide surfaces although the compositions of the metal-deficient sulfide are different.

Aug 24, 2022

By D B, M A. Sares, D W. Coulter, D C. Peters

This presentation discusses NASA-funded research on the ability of hyperspectral remote sensing to map diagnostic acid rock drainage (ARD) mineralogy that adversely affects water quality within watershed and to determine the relative contributions of natural ARD sources of metals and acidity to that drainage. Ground-based reflectance spectroscopy, combined with water chemistry, is used to identify mineralogical and chemical variations throughout a watershed. Integrated with hyperspectral data acquired from airborne remote sensing platforms, such as the NASA Airborne Visible Infrared Imaging Spectrometer (AVIRIS) sensor, a methodology has been developed that should improve environmental assessments and tracking of impacts on and from drainages. Phase I of this project focuses on a drainage basin (Lake Creek), tributary to the upper Arkansas River in central Colorado, which is impacted by natural acid rock drainage from areas of high-sulfide hydrothermal alteration. This project builds upon research and inventory efforts by the Colorado Geological Survey (CGS) to identify hydrothermal alteration that is the primary source or is contributing to acidic and toxic drainage in Colorado. This presentation will cover ground and airborne hyperspectral remote sensing techniques and results and water analyses for seasonal high-flow and low-flow conditions in Lake Creek. Identifying correlations between mineralogy, especially mineralogy that can be identified through airborne remote sensing, and water chemistry is a key focus of this project. Of particular interest are low-pH iron phases such as jarosite, ferrihydrite, schwertmannite, copiapite, and transitional amorphous phases as well as AlOH phases from higher, although still acidic, pH environments which are observed to mix with the iron precipitates within the streams draining from the hydrothermal systems. Drainage in the Lake Creek watershed derives from the Grizzly Peak caldera (Oligocene), which exhibits extensive hydrothermal alteration. Alteration types include silicic, quartz-sericite, quartz-sericite-pyrite, advanced argillic, and argillic. By understanding the chemistry of a naturally impacted drainage and its relationship to the surrounding geology, the project goal is to allow more efficient and complete identification of such sources in mineralised terranes through remote sensing technology.

Jan 1, 2003

Metal grades and contents of ore deposits should be measured in an unbiased manner, and with a degree of precision that reduces to an acceptable level the risk to put into production inviable prospects. The additive property of variances for metal grades and contents is used to assess the accuracy and precision characteristics of this measurement process. Each stage in the process of extracting different types of samples from ore deposits, preparing test samples from drill core sections, drill chips or crushed ore, and collecting and assaying test portions, contributes a variance component to the intrinsic variability of a metal's distribution in its matrix. Deducting such extrinsic variances results in more precise estimates for metal grades and contents of elementary units. The cumulative metal content for a set of elementary units of in-situ ore, and the sum of the variances for metal contents of all units in the set, can be used to calculate confidence intervals and confidence ranges at different probability levels as measures for risk.

Jan 1, 1976

There are many different challenges when sampling mineral commodities. Sampling is part of many decision-making processes, from control of the number of drops of a reagent to all aspects involved in determining how much to pay for a mineral consignment. However, if all decisions must be supported by correct assumptions, or at least agreed terms, how can this be guaranteed? The main approach is to emphasise the importance of continuous surveying of sampling practices. If they are based on non-recommended protocols, this raises concerns. In addition, safety failures and lack of appropriate behaviour from the technical perspective can lead to disasters, both from the human and business perspectives. Impacts on safety and health are clearly unacceptable. It should be noted that imperfect safety and health practices in sampling operations have a strange correlation with incorrect sampling techniques. The commercial interface can also be affected. Companies have studied extensively the various aspects of measuring quality parameters for mineral commodities to understand the risks for investors and owners, and they take decisions that fundamentally respect the interests of parties in contracts and not result in losses. Every result should be obtained in defensible ways, and neither losses nor profits taken in indefensible ways. Most of such situations are related to bias; a significant systematic difference between a measured value and a reference value for a contractual quality parameter. Bias is always undesirable, because it always implies an incorrect advantage for one party and without doubt an undesired disadvantage for the other party. These situations are solved financially through a third-party arbitrator becoming involved in delicate situations, such as a commercial claim, but the outcome is always tangibly or intangibly bad for one of the parties. Another possibility is a permanent or temporary loss of precision. Poor precision, due its nature, generates reasonably balanced losses and profits, but it may hide out-of-control situations, generate instability and induce financial losses due to actions taken towards clearing commercial disputes involving interlaboratory programs, sample exchanges and duplicated sampling and sample preparation procedures, in the end wasting time and resources and creating a permanent source of commercial tension. While bias situations demand immediate adjustments for correctness, poor precision has to be understood as something that cannot be just calibrated out and is a situation that demands investment of time and effort. Precision optimisation has to take into account best practice for obtaining the required precision as well as cost/benefit analysis studies. Purchasers, engineers, salesmen and all personnel need to recognise that sampling is a major area to understand when taking decisions. The aim is to spread concepts that can really help, such as simple in-house actions to improve productivity and completion of surveys on commercial sampling operations, in order to ensure correct results are obtained and assertively take corrective actions, thereby establishing a healthy relationship with investors, suppliers and purchasers and in the process optimising the business.

Jan 1, 2008

By Ritchie I, Fleay J

The key issues in the conceptualisation and testing of treatment options for gold and base metals mineral processing projects are discussed. A prerequisite of this process is the need for close interaction between geologists, mining engineers and metallurgists to facilitate an understanding of the orebody based on the parameters impacting on each discipline. Typical testwork programs for unit operations, including comminution, flotation and gold processing are Described.

Jan 1, 1997

By P Louden, C Rothnie, G Showers

Tiwest employs several methods to assess the quality of heavy mineral concentrates in ore and process samples. Mineralogy is determined using a method called MA98, developed in conjunction with JKMRC over the last three years (Zhang and Whiten, 2001). A range of other techniques are also used to characterise ore, heavy mineral concentrates and mineral products. MA98 is the culmination of efforts since 1989 to determine mineralogy from chemical analysis without recourse to heavy liquid fractionation, which has traditionally been used to discriminate between light-heavy , zircon, rutile and leucoxene. The major advance with MA98 is the use of statistical mass balancing for all chemical species, as opposed to reliance on key chemical species for each mineral. Three magnetic fractions are analysed by X-ray fluorescence spectrometry, with a minerals balance performed for each. Heavy mineral concentrates processed by this method include drill samples, process samples from the wet concentrators and Dry Mill, and mineral products. TBE can be avoided for higher heavy mineral grade samples since quartz is determined from SiO2 balance. In this sense the method is sufficiently universal and robust to cope with a wide range of sample types and compositions. The MA98 algorithm provides abundant information in addition to mineralogy, including TiO2 and Fe2O3 grades of ilmenite and leucoxene, and concentrations of weakly magnetic zircon and kyanite. Information such as this is invaluable in tracking different minerals through the processing plants. Other ore assessment procedures used by Tiwest provide for modelling of orebodies by mineral sizings, Fe in zircon, and FeO and U+Th in ilmenite. Microscopy is used to provide important qualitative information such as grain shape, surface staining and degree of cementing. These quality measurements are included with mineralogy in geological ore models and are available for mine scheduling. In using the above methods to characterise heavy mineral concentrates, Tiwest is better placed to predict and monitor plant performance and product quality from any ore zone.

Jan 1, 2001

By E McLean, J Fleay, M Davis

Performance testing is often used by project owners and financiers to provide protection from, or assessment of, technical aspects of project design, procurement, construction and commissioning. The performance tests can range from comprehensive performance warranties relating to process performance and production in the case of lump sum turn key (LSTK) projects to less onerous demonstration tests for cost reimbursable contracts. This paper will discuss performance testing from both the contractorÆs and ownerÆs perspectives and focuses on: when performance tests are required, what type of performance test/warranty is optimum for each type of project, and how project performance should be evaluated. The requirement for performance testing can be driven by the project financiers, particularly in the case of smaller resource development companies. In such cases, differentiation between ownerÆs risk and contractorÆs risk can become contentious. At the other end of the spectrum, larger mining houses may choose to heavily influence the engineering and design process with the contractor supplying services on a reimbursable basis. In that case, the performance testing process is often limited to demonstration tests that validate performance for the ownerÆs corporate governance requirements. This paper was prepared due to the lack of published benchmarking of performance testing and the resultant differences in expectations between a contractor and a project owner that often surface late in the contract negotiation process. The paper provides a checklist of requirements for both the owner and the contractor that may be used to provide æcommon purposeÆ early in the contract negotiation process.

Jan 1, 2007

By P Hanna

In an effort to improve returns to shareholders, the Australian Mining Industry has consolidated considerably over the past decade or so. Technical services at mines have been re-structured, whilst those at corporate offices have been all but eliminated. A recent study of the role of the geologist in BM Alliance Coal Operations Pty Ltd (BMA), showed the adverse impact on the companyÆs performance due to a lack of geologists. With an education campaign, to demonstrate the contribution of geologists to the æbottom lineÆ and in increasing the options available to the company, the value of the geology role became better understood. The implications of the loss of invaluable corporate knowledge, when long serving geologists left the company, also became clear. Steps have since been taken to increase the numbers of company geologists, particularly on mine sites. In common with other sectors of the mining industry, the Australian coal industry is experiencing a critical shortage of experienced coal geologists, as companies have found in recent recruitment efforts. This is further evidence that the recommendations from the recent study by World Competitive Practices, commissioned by The Australasian Institute of Mining and Metallurgy, æRising to the ChallengeÆ have not been adopted. People, and the mineral resource base, are the assets from which mining companies gain a sustainable competitive advantage. Geologists, as the nexus between the resource base and people, are in a unique position to enhance the profitability of their companies. To maximise their contribution to the industry, and ensure that they receive due recognition, geologists must adopt a more commercial approach in their work and take a front foot stance in promoting their value to management. Geology is a core competency for all mining companies. The tendency for companies to outsource this function, to the detriment of the company geologist role, is not sustainable in the longer term. TodayÆs geologists need to work closely with management, technical and human resource professionals, universities and schools to ensure their significant value is well understood, and that the industry can attract, train and retain new recruits through the implementation of graduate programs and company career paths.

Jan 1, 2003

By M Gao, V Lawson, W Valery

Changes in metal prices and mine output over recent years have required the Copper Concentrator of Mount Isa Mines to operate at annual tonnage rates varying from 4.0 million to 6.5 million tonnes. Several circuit combinations were operated during this period utilising up to two semi-autogenous grinding (SAG) mills and up to two ball mills. The aim was to maximise grinding efficiency and keep unit costs constant regardless of throughput rate. Measures to improve the SAG-ball mill unit operation were implemented with each circuit change. These included installation of a splitter to divert SAG Mill cyclone underflow back to the mill, increase SAG ball charge from four per cent v/v to eight per cent v/v, reduce in SAG top feed size and increase of ball mill grinding medium size. Modelling work and surveys led to a new design of the SAG liner profile from 60 rows of rail bar liners in a high-low arrangement to 40 rows of top hat liners in a high-high arrangement. An on-line SAG Mill feed sizing monitor was recently installed to improve grinding control.

Jan 1, 2000

The optimisation of capital in the total planning context has broadly two components: ò maximising the efficient utilisation of capital against competing capital demands; and ò maximising the efficiency with which the industry's capital requirements are sourced. This paper focuses on the latter of these two concepts, as I wish to highlight that within the coal industry the inefficient sourcing of capital has resulted in the inefficient utilisation of capital. In discussing the optimisation of capital within the coal industry I would like to outline three fundamental issues which currently impact the industry and its application of capital: Initially, from the perspective of an independent investor, the perceived risk associated with investing in a volatile industry cycle has not permitted appropriate funding structures to be created thus leading to an inefficient utilisation of capital. Secondly, investors seeking out a windfall gain have established a practice of trading in the assets rather than encouraging recapitalisation. And lastly the mismatch of supply and demand leading to the establishment of new projects which include a percentage of offshore investment has fostered an environment of lower returns and subsequently a dilution of capital.

Jan 1, 1991