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By Peck RC

The ore body at Elura contains fine grained galena and sphalerite in a matrix which is mostly pyrite. A differential flotation circuit concentrates lead and silver in the first section and zinc in the second. The lead section, shown in figure 1, was sampled in detail previously and the metallurgical performance assessed on a size by size basis. That assessment took no account of liberation and given the fine grained nature of the ore body, this could lead to an incomplete picture of the flotation performance. Liberation measurements were made using the QEM*SEM system on four size fractions of samples taken from seven different streams in the lead section. Using the mineral flows obtained from the mass balance around the lead section an excellent liberation balance was obtained which enabled the effect of liberation on the flotation performance to be assessed. The measurements indicated that only 17 per cent of the galena and 28 per cent of the sphalerite in the flotation feed was liberated. On the other hand 31 per cent of the gangue iron sulphides were liberated. The final concentrate was largely composed of locked galena and locked iron sulphides with 85 per cent of the product being locked. There was a small but significant fraction of liberated pyrite.

Jan 1, 1991

By G Cormack

By designing comminution circuits for mineral liberation rather than the final recovery process and by using high mass pull gravity recovery, the concept of underground processing has become a reality. Gekko has found that many ores respond favourably to fine crushing with either high pressure grinding rolls or vertical shaft impactors which when combined with the InLine Pressure Jig gravity separator and coarse flotation results in a narrow, low-head, compact processing plant that can be sensibly fitted in existing underground openings. The focus on fine crushing reduces the power requirements of the plant to approximately 5 kWh/t for a capacity of up to 20 t/h run of mine ore feed. The use of water recycle systems places no extra load on the mineÆs normal water handling system. GekkoÆs underground processing plant, the æPythonÆ, has been designed to be towed down the decline or lowered down a shaft and is capable of being installed in sloping, non-linear drives for placement close to the working face. The overall benefit to mining companies of this concept has been estimated to be a significant operating cost-saving, lower cut-off grade and a significantly smaller environmental footprint.

Jan 1, 2008

By M F. Lee

In order to make good decisions, as to whether large diameter raise bored shafts can be constructed in blocky rock at a particular location, mine planners, management, geotechnical engineers and contractors must understand and consider a range of geotechnical issues. Firstly, mine management must ensure that adequate time and resources are available to find appropriate shaft sites. Deep weathering, adverse structures, groundwater, etc might mean that the most desirable location, with respect to other mine development, might not be suitable. Special site investigation drilling, etc may be necessary. Even then, alternative construction options might be necessary, other than just reaming through to the surface. A site investigation borehole should then be drilled to investigate specific and general ground conditions along the raise alignment. Often, only small sections of weak blocky rock dictate raise stability. While the empirical McCracken and Stacey method is typically used in Australia to assess raise stability and assess geotechnical risk, until recently it had no published performance data.An Australian database of raise performance now exists and is presented below, courtesy of an industry survey by the Eastern Australian Ground Control Group. Raise diameter and ground conditions (in terms of a lower bound Qr value) is presented for 50 cases versus raise performance.

Jan 1, 2008

The geology and mineral deposits of the West Pilbara Goldfield are described and comparison is made with the Pilbara Goldfield,, In the West Pilbai'a Goldfield two adjacent environments are represented by a predominantly clastic succession and a predominantly volcanic succession. These two successions are lateral equivalents and lithologically they are similar to the classical successions at Warrdiwdbna and Mosquito Creek. How- ever, no evidence of a significant erosional break has been found. It is suggested that the Archaean rocks of: the Pilbara Block represent a single geosynclinal cycle, which culminated in orogenesis, within which-local disconformities have been developed in various places: and that the sub-Mosquito; Creek unconformity at Eastern Creek may be the most widespread of these disconformities, Widespread evidence of'preconsolidation movement, aid the intrusion of igneous rock into. unconsolidated sediment, suggest that tectonism and igneous activity began at a very early stage, This was localised along lines of fracture in an unidentified basement.,.Moveme.nt was primarily vertical and persisted into the older Proterozoic, The sediments were enriched in metal by vulcanicity, chemical sedimentation, and possibly detrit`1' contribution. Diagenesis and metamorphism caused the remobòliyation of the metallic constituents of igneous and sedimentary, rocks which were then localised-in loci of dislocation-formed both before and after consolidation.,.. . . , . .

Jan 1, 1964

By Oxenford R. J

An important rutile-ilmenite-zircon bearing sand deposit was discovered by local farmers at Eneabba, 300 km by road north of Perth in 1970. These heavy minerals occur in a series of ancient strandlines and associated dunal deposits at elevations from 85 m to 170 m above the present sea level and are situated,30 km inland. The strandlines were deposited on wave- cut platforms in an ancient bay bounded by Mesozoic sediments during a series of regress- ions from a high sea level, probably during late Tertiary or early Pleistocene times. The immediate source of the heavy minerals in the Eneabba deposit is a widespread low content of those minerals in the nearby Mesozoic sedi- ments. The high-grade southern portion of the Eneabba deposit has been closely drilled and is now being prepared for production by Allied Eneabba.Pty. Ltd., a subsidiary of Allied Minerals N.L. This part of the deposit is 11 km long and up to 2.5 km wide. It is characterised by little or no overburden and the average depth of mineralisation, bounded by a 2.5 per cent heavy mineral cut-off, is 12 m. The water-laid strandline deposits at the base of the mineralisation are generally high grade, ranging from 20 to 60 per cent

Jan 1, 1973

This paper first describes the essentials of the slurry shield method and its achievements, then problems encountered during driving tunnels and their countermeasures, and finally shows problems to be solved in the future. The author works at Tekken Construction Co., Ltd. as a director. All the data cited are based on material gained from the slurry shield tunneling works undertaken by the said company. The mark, viz*, indicates that Tekken Construction Co., Ltd. has obtained or is applying for a patent in the U.S., Europe and Japan. 1. CONSTRUCTION RECORDS BY SLURRY SHIELD METHOD AND ITS PROBLEMS (1) Shield machines in the future should have the following characteristics; a. to be able to drive less cohesive soil b. to make no change to the ground water table level c. to make it possible to let people work in normal air pressure d. to cause less settlement at the surface To meet the above conditions various kinds of mechanical shields have been are tried, viz. limited air pressure type, rotary cutter with slit regulator, screw-discharge type, blind shield, etc. As far as the author knows, however, they are not 100% successful. Tunnels need their own accuracy in accordance to the usage. Both ease of driving

Jan 1, 1976

The necessity for good management and economic working in our mines and ore-dressing sheds is impressed upon us by the present low prices of all our metals. Silver, lead, copper, and tin have all suffered a heavy decline during the last six or twelve months, and many mines have been shut down simply on account of the low market value of the ore produced. After fully considering the position of the mining industry. I am convinced that considerable improvements will have to be made to make it as prosperous as it ought to be. The most obvious of these improvements are good management, good machinery, and as little interference by directors as possible. If these conditions are insisted upon and carried out efficielltly a poor mine may have a chance to weather the storm.There is no doubt that the present depression is the refilult of over-speculation and general loss of confidence by which the whole commercial system has been affected, and every branch has suffered more or less, mining not excepted. It has suffered heavy losses in the past, and the future is not over bright we are, therefore, compelled to be careful in everything by which mining is affected and savings can be secured.

By L C. Thompson

Biomineralisation is the process by which microorganisms mediate and catalyse inorganic reactions so as to form new mineral assemblages. The goal of biomineralisation as a remediation tool is to control microbial processes and their environment so as to sequester and immobilise specific toxic metals within exceptionally strong bonds of neo-formed mineral assemblages. In this way, the bound metals are no longer mobile within a geological time-scale. Applied biomineralisation uses microorganisms, which are isolated from a metal waste environment and are selected for their ability to rapidly catalyse neo-mineral development from dissolved or leachable metals. A typical waste environment will contain microbes that contribute to the mobilisation of metal contaminants as well as microbes that possess the potential for remineralising available metals. Selection and augmenting the correct combination of bacteria and eliminating the competing mineral degrading reactions are the key to applying biomineralisation as an in situ remediation process. Applied biomineralisation harnesses the microbesÆ ability to stabilise toxic soluble metals into non-mobile mineralassemblages. This paper will discuss and demonstrate the biomineralisation process through several case studies including the Summitville mine site in Colorado, the McCoy-Cove mine in Nevada, the Argonaut mine in California, and an historic lead site in Crooksville, Ohio.

Jan 1, 2004

The O.K. deposit occurs within a belt of cherts and spilitised basic volcanics near the western margin of the Hodgkinson Province. The tabular to lenticular shape and gross conformability of the ore bodies; the common occurrence of colloform, framboidal and banded textures in the ores; the lack of significant alteration adjacent to the massive ore horizons and the apparent restriction of stockwork mineralization to the foot-wall side of the massive ore zone at the O.K. mine, all favour a syngenetic origin for the massive sulfide bodies. Furthermore, the micro- structural evidence suggests that the ores have undergone the same deformational history as the country rocks. The invariable association of the ores with spilites; the S isotope values and Co-Ni contents of the pyrites, together with the primitive metal assemblage (Fe, Cu, minor Zn) strongly favour a basic magmatic source for the sulfides. It is suggested-that the sulfides were probably precipitated sub aqueous- ly during a hiatus in volcanic activity. The O.K. deposit is of the cupreous pyrite variety, but unlike other well known occurrences of this type, it does not con- stitute part of an ophiolite complex. While the host volcanics exhibit strong ocean floor tholeiitic affinities, no associated ultra

Jan 1, 1978

By Li YQ, Yoon RH

The photoresponse of natural mineral pyrite and galena electrodes has been studied in aqueous solutions on freshly fractured surfaces (some fractured in situ) using moderate overvoltages. When fractured in situ, the electrode potential of both minerals instantly drops several tenths of a volt. Pyrite exhibits a spontaneous anodic photocurrent at fracture, which indicates upward band bending (depletion layer) on the n-type electrodes. The negative surface charge responsible for the depletion layer is believed to arise from a surface state that is intrinsic to pyrite surfaces, possibly modified by hydroxide ion adsorption. The flat band potential, Vty, of pyrite is at approximately -1.0 V (SCE) at pH 9.2 but to reach V(b, pyrite has to be cathodically decomposed. In contrast, galena assumes the flat band potential at fracture. Subsequent polarisation of galena at potentials positive of Vth produces an anodic photocurrent (upward band bending) and polarisation negative of Vro a cathodic photocurrent. Most of the galena electrodes studied were degenerate n-type and at potentials negative of Vtb, no cathodic photocurrents are observed, indicating the bands cannot be bent downward, consistent with the Fermi level at the surface merging with the conduction band edge near Vn,. Several were close to intrinsic, with the photocurrent changing sign near Vn,.

Jan 1, 1993

This paper presents results of the experiments carried out in Beth Energy No. 33 Mine for the purpose of alleviating problems associated with cutter roof. Cutter roof problems have delayed the advance of the entry development considerably and maintenance cost of these entries was very high due to the requirement of very extensive and heavy artificial supports. The study includes assessment of the problem, investigation of the geology and lithology of the mines, study of in-situ stresses and corrective measures to combat the problem. Two approaches were selected as the corrective measures: 1) implementing yield pillar concept in order to reduce the effects of in-situ horizontal stresses, 2) designing an effective roof reinforcement system and application procedure. Results of this study revealed that roof strata is weak and in-situ stresses are very high at the problem area which results in development of cutter roof. Implementation of yield pillar concept was found to be ineffective because cutter roof often developed at the entry face concurrent to the development. However, proper design and implementation of roof reinforcement system stabilized the roof and eliminated roof caving during both entry development and retreat of longwall face, despite existence of the cutter roof, at a much lower cost.

Jan 1, 1992

I know the theme of the Congress is "The 21st Century - Mining for Mankind" but I hope you will understand why my address touches upon some near-term issues as well. With the world oil market the way it is at present, "the long term" seems to be next week and no one is even sure what will happen tomorrow! So I am going to take a little licence with the theme of the Congress and talk about some fundamental issues that have much to do with the current uncertainties. The ways in which these issues are resolved and the role governments elect to play in the next few years will determine both the shape of the petroleum industry in the 1990s and beyond and the success with which we can confront a growing and inevitable future dependence on OPEC oil resources. But just in case you are not familiar with what has been happening in the petroleum industry recently and why the future seems more uncertain than ever, let me show you the gyrations in oil prices over the past 13 years, and remember that it is only another 13 years or so years to the 21st Century.

Jan 1, 1986

By Katsuyama K, Nag DK

Three aspects of rock mechanics, namely, in-situ stress estimation by acoustic emission (AE) method, strength of rock mass and role of chemicals to reduce the strength are covered. It is possible to detect the previously applied maximum stress by stressing a rock specimen to the point where there is a substantial increase in AE activity. This is known as Kaiser effect. From the AE signatures in the second and subsequent loadings, AE take-off point was identified more easily than in the first loading. In determining the compressive strength of rock mass, two factors have to be considered, namely, the size effect on the compressive strength of intact rock and the effect of discontinuities on the compressive strength of rock mass. Although a modified Bieniawski criterion gives best agreement with the triaxial test data, modifications have been suggested to Hoek-Brown criterion due to its popularity. It is possible to reduce the tensile strength of sandstone by saturating it with weak chemical solutions made with dodecyltrimethyl ammonium bromide, polyethylene oxide and aluminium chloride by up to 30%. In the case of compressive strength, there is no appreciable effect. The possible explanation is that the chemical solutions produce an effect on the strength of sandstone only when the failure mechanism is dominated by tensile mode.

Jan 1, 1998

By Myers I. A, Peters S. G, Bultitude R. J, Dowling K

Gold-quartz and antimony-gold-quartz veins in the Hodgkinson Province are hosted by subgreenschist to greenschist facies metasediments and show no spatial association with granitic rocks. They commonly parallel axial plane foliations or occur in brittle to brittle-ductile shear zones. Detailed mapping in the Hodgkinson goldfield indicates that vein systems are isolated in distinct structural and lithologic domains by post-mineralization faulting. Gold-quartz and antimony-gold-quartz veins have distinctive mesoscopic textures characteristic of the mesothermal vein environment. Some of the antimony-gold-quartz veins are located on domain boundaries which truncate the gold mineralization. In. some areas, tin and tungsten-tin mineralization which are spatially related to Late Palaeozoic granitoids appear to postdate the gold-quartz and antimony-gold-quartz mineralization.Oxygen and hydrogen isotopic studies of vein and alteration assemblages associated with these diverse ores provide constraints on fluid sources and have implications for the origin of mesothermal gold mineralization. The available isotopic data are consistent with a dominantly magmatic source for tin and tungsten-tin mineralization although there is evidence of a late-stage meteoric component in some tin-mineralizing systems. Although a distal magmatic contribution cannot be entirely discounted, the gold-quartz and antimony-gold-quartz veins were probably deposited from deeply

Jan 1, 1990

By T Raynlyn, J J. Campbell, R J. Holmes, J R. Manuel, S P. Suthers, A Poliakov

Prediction of the downstream processing performance of iron ore needs detailed information on mineral composition, textural peculiarities, particle density, porosity, mineral liberation and association and mineral grain size. Optical image analysis and automated iron ore texture classification systems are a way of obtaining such information. Furthermore, this information can be used for predicting the output of specific processes and their combinations. Several examples of the application of such an approach to process performance studies for iron ore are discussed. These include the application of classification by ore texture to modelling and optimisation of hydrocyclone performance, the effect of including textural information in modelling of sinter properties, and combining textural information with an experimental study of stirring and ultrasonic treatment of haematitic-goethitic iron ore fines to understand the deportment of fines and the breakdown/deagglomeration of particles. In all cases, the availability of textural information is important and helps provide a better prediction of process performance and/or understanding of the unit process.

Jan 1, 2008

By R L. Brathwaite

The rocks of New Zealand can be grouped into three main elements: the Early to Mid Paleozoic Western Province, Late Paleozoic to Early Cretaceous Eastern Province, and several overlying Late Cretaceous to Cenozoic sedimentary basins. The Western and Eastern provinces were formed on or near the margin of Gondwanaland, whereas the Late Cretaceous to Cenozoic sedimentary basins developed after the separation of New Zealand from Gondwanaland in the Late Cretaceous.   The Early to Mid Paleozoic Western Province rocks are exposed in Nelson, Westland and Fiordland and include metamorphosed sandstone, mudstone, limestone, and volcanic rocks, intruded by granite batholiths and maficultramafic igneous complexes. The main associated mineral deposits are gold-quartz lodes hosted by Paleozoic greywacke and argillite. Other type of deposits present include: volcanogenic massive sulphide lead-zinc; vein and greisen tungsten and tin; and magmatic nickel-copper sulphide, platinum group element, and magnetiteilmenite deposits. Granite stocks and batholiths, intruded during the Cretaceous, have associated porphyry molybdenum deposits.   The Late Paleozoic to Early Cretaceous Eastern Province includes the greywacke rocks forming the axial ranges of the North and South islands, and a belt of schists in Marlborough, the Southern Alps and Otago. The schists host many shear-zone related, gold-quartz lodes and, in the Southern Alps, lenses of serpentinite with talcmagnesite and nephrite jade. Volcanogenic massive sulphide copper deposits and volcanogenic manganesechert deposits, occur in both the schist and greywacke, and a belt of Permian age ultramafic rocks (Dun Mountain Ophiolite) has associated copper, chromite and chrysotile asbestos deposits.   The Late Cretaceous to Cenozoic rocks are found in a number of sedimentary basins onshore and offshore of the North and South Islands. Many of these basins developed during the rifting of New Zealand from Gondwanaland in the Late Cretaceous. They contain New Zealand's economic petroleum, coal and limestone deposits. Uplift and erosion of the mountain ranges shed gold into rich placer deposits in the South Island.   From the Miocene, volcanic rocks feature prominently on the eastern South Island (e.g. Banks Peninsula southeast of Christchurch and the Otago Peninsula northeast of Dunedin) and northern North Island (Northland and Hauraki), and volcanism continues today in the Taupo Volcanic Zone. The North Island volcanic rocks have associated epithermal mineralisation, mainly gold and silver, but also copper, lead, zinc, mercury, and antimony, as well as deposits of sulphur, perlite, pumice and zeolite. Porphyry copper style mineralisation is associated with subvolcanic intrusive rocks. Erosion of the volcanic rocks has shed titanomagnetite onto the west coast of the North Island forming significant coastal placer deposits. Similarly, erosion of the Alpine schists in the South Island has resulted in placer ilmenite deposits on the coast of Westland.

Jan 1, 1997

By K Saito, M Hasegawa

Removing sulfur and phosphorus from molten iron can be expressed by the following reactions, respectively. [S]Fe + (O2-)slag = (S2-)slag + [O]Fe [P]Fe + (3/2) (O2-)slag + (5/2) (FeO)slag = (PO43-)slag + (5/2) Fe(liquid) These equations indicate that desulfurisation and dephosphorisation have opposite oxygen potential conditions. If a small amount of desulfurisation slag not removed is carried over to dephosphorisation process, the reaction of sulfur mentioned above proceeds toward left hand resulting in increasing sulfur content in molten iron. For better understanding of such re-sulfurisation reaction in hot metal pre-treatments, the present study aimed at evaluating the effect of iron oxide on the sulfur distribution ratio between slag and hot metal. To measure sulfide capacities and FeO activities simultaneously at temperatures below the melting point of pure iron, CaO-SiO2-FeO and CaO-Al2O3-FeO ternary molten slags were brought into equilibria with copper-iron-sulfur liquid alloys, and the equilibrium oxygen partial pressures were determined with an electrochemical technique involving the stabilised zirconia solid electrolyte. The experimental results showed that the sulfide capacity increased with an increase in FeO content, and this trend was consistent with the fact that FeO was basic. Although the addition of FeO raised the FeO activity and oxygen potential, the calculated value for sulfur distribution ratio between slag and hot metal increased with increasing FeO content.

Jun 19, 2024

By J E. Everett

Ore selection is generally a highly subjective task, with emphasis on producing product with a consistent target grade matching a perceived market requirement. A composite selection criterion ‘Comp’ (a linear function of the grade vector) can be used to maximise ore tonnage at a specified target grade (in Fe and contaminants) extractable from a block model. The blocks correspond to the selective mining units, with grades interpolated from diamond drill hole data. An iterative procedure has been developed to identify the coefficients and cut-off value for the composite function ‘Comp’, maximising potential ore tonnage at target grade.Commonly, target grade is predetermined by marketing; however, there is no guarantee that maximising ore tonnage at a specified target grade maximises the potential value of the mine. If the value of ore could be expressed as a linear function of the grade components, then these coefficients would be appropriate for the selection criterion ‘Comp’. The cut-off value for ‘Comp’ would correspond to the marginal cost of production; all blocks with a ‘Comp’ score above the cut-off would be classified as ore; and the cumulative grade of these ore blocks would be the average product grade over the life of the mine.Unfortunately, no such value function for iron ore is generally available. Methods for estimating the value function are discussed, using the spot price and sensitivities based either upon operational tolerances for Fe and the contaminants or upon published price differentials. This approach has been applied to an anonymous Pilbara deposit with about one million blocks averaging 1.1 kt. It is shown how the optimal target grade, cut-off grade and maximum tonnage can all be explored as a function of marginal cost and iron ore price. Alternatively, given marginal cost and an iron ore price, the effects of changing the tolerances (and therefore the relative costs of the contaminants) can also be explored.It is suggested this procedure can enable informed decision-making for an iron ore mine. Rather than setting final policy for the entire life-of-mine, the method enables target grades and tonnage estimates to be revised by re-computation as the mine life proceeds to recognise changes in market conditions and knowledge about the resource.It should be emphasised that this paper is concerned with ore selection rather than ore sequencing. Appropriate ore selection is a necessary but not sufficient condition for maximising value. Having identified the set of blocks that potentially maximise value, the sequence in which they are mined will present a trade-off between producing at constant grade and extracting high value ore early. The sequencing issue is not considered here. It is shown that optimum ore selection for an open pit mine is independent of any consideration of discount rates, although ore sequencing will depend upon the time value of money if the product grade is to vary across time.CITATION:Everett, J E, 2015. Ore selection to maximise value, in Proceedings Iron Ore 2015, pp 443–448 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

My roots span four generations. My great grandfather, Christian Frederick Fisher, along with twenty-one others was drowned in the New Australasian mine disaster at Creswick in Victoria in 1882. My grandfather, also named Christian Frederick Fisher, escaped and then followed a career of shaft sinking for large companies and operating small mines (very unprofitably according to my father) when funds allowed. My father, an excellent practical mining and mechanical engineer, was also a small miner and my early entry into the industry was, like many before me, very basic. My introductions to the business end of a No. 4 shovel, drilling with hand steel and later with jack hammers without the benefit of airlegs, feeding heavy cordwood to hungry boilers and felling trees for mine timber soon dispelled any illusions I had that mining was a bed of roses.Before it became well known I knew "Life was not meant to be easy".In a family-owned small gold mine in a remote part of Cape York Peninsula in far north Queensland I was fortunate in obtaining an excellent grounding in reef and deep alluvial mining. Operating in vertical and underlie shafts the variable ground conditions often required close timbering. Steam pumps were used underground and steam winders for hoisting.The complete absence of municipal or government infrastructure in this remote mining field threw responsibility on each mine operator to be self-sufficient, and responsible for mine development and installation of crushing and milling equipment, accommodation and water supply. Conditions, although harsh, were acceptable in the 1930s, and fostered great self-reliance.The first crushing from our Black Cat Mine in 1935 returned nearly 200 oz from 10 tons of ore. Gold was then worth $13 an ounce compared to about $400 an ounce today; but in those depression years of the 1930s our operation was profitable.This basic education not only returned dividends when confronted with difficult mining problems, but created a deep respect for the miners who develop the small mines and who continue to contribute to the industry today, often under difficult conditions.Australia and mining are synonymous. The industry has been immortalised by the famous historian, Professor Geoffrey Blainey, in his book "The Rush that Never Ended".Initial gold discoveries were concealed and exploration was frowned upon by authority as being disruptive to early rural development. But with the discovery of gold in the Bathurst area of New South Wales by Hargreaves in 1851, the rush to the gold fields began followed by an influx of migrants. The traumatic effect on industry and society that followed, created the pattern of the love-hate relationship that at times became temporarily submerged, but is so evident today.In the harsh economic climate of the 19th century with low wages and no welfare, the opportunity to wrest riches from the earth was literally "rushed" by the adventurous, the poor, the rich, people from all walks of life. Pressures developed on preFederation Governments to provide law, order and infrastructure to the rushes that have never ended.

Jan 1, 1984

The basic model for the evaluation of any coal-bearing property is the cash flow projection, the major components of which are operating costs, capital charges, taxation and revenue. A range of cash flow projections can be produced by varying the assumptions which underlie the operating costs, by assuming various forms of capital funding, by making assumptions as to future taxation and by speculating upon the present and future market value of the product. As for any model, the informational inputs and assumptions are vital because, no matter how sophisticated the processing, the informational inputs and assumptions cannot be improved by it. That is to say, the validity of the output (the total evaluation itself) cannot be of greater certainty or significance than that of the inputs. The total evaluation can of course be expressed in a number of ways such as the Discounted Cash Flow (D.C.F.) Rate of Return, the Net Present Value or, the Payback Period. The foregoing statement may seem trite. However, it is necessary to be clear about it so as to avoid unnecessary complication and a preoccupation with techniques as opposed to the informational inputs and assumptions. So far as techniques are concerned, much has been written and said about them during the last decade. Most of us have heard, if not always understood, something about probabilistic models, Monte Carlo simulation, sensitivity and risk analysis to say nothing of inflationary costing and the relative merits of developing cash flows in terms of current or constant money. Those techniques have their value, particularly if they can serve to illuminate conclusions which could not be reached on a simple and even perhaps on an intuitive basis. I am, however, reminded of one major coal mining project in which 20 or more major variables were identified, many cash flow projections were run on the computer and a detailed sensitivity analysis was carried out. The major conclusion reached was that the D.C.F. Rate of Return was predominantly sensitive to variations in selling price and operating cost. Of course, the funding and fiscal elements of a cash flow projection have to be dealt with as rigorously as possible. However, in the development of any coal property, capital requirements and taxation are, in part at any rate, dependent upon the assumed operational parameters. If the latter are misjudged, the whole evaluation process is deeply affected. The same is true of revenue, in the sense that, the positive cash flow is a function of output as well as selling price and again, misjudgements about achievable and maintainable levels of production also deeply affect the final evaluation. I shall try to underline the fundamental influence of the technological factors upon lead times, capital costs, operating costs, taxation, funding and the achievable and maintainable levels of production. In turn, these affect the whole question of coal property evaluation and indeed, the likely success or failure of any coal mining venture. I make no apology therefore that this paper does not set out to discuss the more esoteric aspects of the evaluation process but rather, directs attention towards some of the informational inputs and assumptions which merit clarification and discussion.

Jan 1, 1975