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A resource rent taxation scheme is based on the concept of taxing the rent or surplus profit generated from primary industry activity. Rent has been defined as profits that remain after deduction of company income which corresponds to the minimum return necessary to attract private investment to a new project.Rent taxation schemes on the mining industry within the Australasian region have been examined and widely discussed during the decades of the 1970s and 1980s. Forms of resource rent taxation schemes have been imposed on Papua New Guinea mining, some sectors of Australian petroleum, the Roxby Downs venture and are being discussed for the New South Wales coal industry. While no introduced applications have been pure rent taxation schemes, the concept has generally come to encompass arrangements which tax rent at a partial rate which may or may not vary with the level of profitability or return.An examination is made of a number of the more recent schemes. Aspects which should be considered in implementation of new forms of this taxation are discussed. It is concluded that there is an increased acceptance for this form of taxation on the Australian mining industry.

Jan 1, 1990

A feasibility study will fail its objective if it does not identify and then correctly assess, all the risks which could have a substantial impact on the financial viability of a project. Before this assessment can be undertaken, one needs to understand the risk profile of the entity which is making the decision about the project. Some of the commonly encountered issues when assessing project risk are related to the problem of not being able to see the wood for the trees. In any risk analysis it is important that conservatism does not strangle a viable project; that the variables are internally consistent with each other, that reality checks are carried out and that appropriate expertise is used. Sensitivity analysis forms a part of the overall project risk assessment; however, it can only test those variables which have already been identified in the financial model. The most useful tool in performing a sensitivity analysis is Monte Carlo simulation. When properly used, it provides a more real world scenario than the simple adjustment of key variables by ¦ 10 per cent one at a time. Monte Carlo can provide valuable information about the robustness of a project. Project risk and sensitivity assessment is prone to the analysis paralysis syndrome. The focus should be on quality rather than quantity.

Jan 1, 1997

The purpose of this paper is to provide some practical commercial advice in relation to issues of access and trespass during exploration. It is not my intention to provide a detailed analysis of the applicable law because this is not the appropriate forum for latin maxims and turgid case studies. Instead I will explain the issues in sufficient detail to enable those who are not familiar,with the legal concepts to understand their obligations and responsibilities in relation to exploration activities. Take as an example a situation where a company (for the sake of attempted light relief, called Rogue Mining) holds an exploration tenement adjacent to one held by Lamb Exploration. In conducting aerial exploration activities over its own tenement Rogue overflies the tenement held by Lamb, doesn't turn off its equipment and accidentally collects data in respect of the adjacent land. In analysing that data it becomes apparent to Rogue that there is a substantial anomaly on the adjacent land of which Lamb is apparently unaware. Rogue subsequently negotiates to purchase an interest in Lamb's tenement.

Jan 1, 1995

Some thirty ore minerals occur in the Mount Morgan orebody. Pyrite is the dominant mineral with chalcopyrite, magnetite and pyrrhotite major components. Gold and gold tellurides, in accessory amounts, are economic- ally important. The prevalence of volcanic rocks in the mine area and the presence of trace amounts of such minerals as cassiterite, gold, native bismuth and rutile suggest a voicanogenetic origin for the ore. The ore occurs in a breccia pipe which cuts through the volcanic and associated strata but the former existence of a syngenetic stratiform ore bed is evidenced by the presence of occasional masses of perfectly banded sulphide ore including a barite-rich "black shale" with sulphide layers exhibiting slump structures. Mineralization is thus both _ syngenetic and epigenetic. The orebody (breccia pipe) is intruded by small stock-like bodies of quartz latite which is believed to have been the upward rising magma invading the orebody of which it is the parent. This has resulted in the annealing recrystallization of the ore minerals and the quartzose gangue with a low strain rate due to magma drag and dilation during intrusion.

Jan 1, 1974

The Sons of Gwalia Mine in Western Australia is situated about 140 miles north from Kalgoorlie in arid country, where supplies of fresh water are difficult to obtain.Mine salt water is used throughout the treatment plant, whilst fresh water for domestic, boiler, and power purposes is pumped from a number of shallow outlying wells. The waters from all wells are constant in character, although they vary in the quantities of salts contained.An average sample of mixed waters gave the following analysis (Gr. per gal.):Sodium chloride 70.82Magnesium chloride 33.03Calcium chloride 26.98Calcium carbonate .. 11.57Calcium sulphate 22.71Iron oxide and alumina 2.10Silica and insoluble 4.58When this water is used in the boilers in its natural state it is scale-forming and intensely corrosive.

Jan 1, 1927

By Liu H, Chen S

Natroalunite is one of colouring minerals in kaolin. In this investigation, natroalunite, on which Ca(II) was adsorbed, was flocculated by HPAM and kaolin was depressed in suspension. The adsorption of Ca(II) on the natroalunite surface was studied by zeta-potential measurement and Auger Electron Spectroscopy analysis. Ca(II) was adsorbed more on the natroalunite surface than on the kaolin surface. The mechanism of Ca(II) adsorption was considered to be chemical adsorption on natroalunite and to be physical adsorption on kaolin. It has been found that Na6P6O18 and Na2Si04 can strongly affect Ca(II) adsorption on the surface of kaolin, but weakly on the surface of natroalunite. The effects of degree of hydrolysis and the molecular weight of HPAM, the effect of pH and the effect of Ca(II) have been studied. The kaolin ore, containing SO3 1.05 per cent has been processed with this method. The products only containing S03 0.36 per cent and the weight ratio of concentrate 52.27 per cent were Obtained.

Jan 1, 1993

The classical view of island arc geology is that of a plutonic intrusive/volcanic extrusive complex, derived from the products of oceanic lithosphere subdu.ction and constructed on an over-riding plate of oceanic origin. Such an arc is typically backed by a marginal basin, formed by seafloor spreading of a more or less conventional kind. Various studies undertaken over the last decade have modified this picture and provided a new tectonic framework within which to explore for resources. Formation of Marginal Basins During the 1970s, seafloor spreading magnetic anomalies were identified in various marginal basins in the SW Pacific. In one of these, the South Fiji Basin, there was clear evidence of a ridge-ridge-ridge triple junction, although no kinematic relationship to the major plate boundaries was determined. Palaeomagnetic studies conducted in Vanuatu and Fiji, and in the Bismarck Archipelago of PNG provided evidence of large scale arc rotations relative to major plates. This indicated a general pattern of marginal basin formation by ridge-ridge-ridge triple junction growth together with island arc growth by trench-ridge-trench triple junction evolution. Formation of Primitive Island Arcs The triple junction growth model strongly suggests that at least a significant amount of arc evolution occurs by the initiation of subduction at a spreading ridge. This has predictive implications for the nature of island arc basement.

Jan 1, 1987

The drilling and evaluation of bore cores provides the best available statistical basis for characterizing a coal prospect. Important, long-term decisions by management frequently must be based on the results. The majority of coal mined presently is used for steam raising or the production of metallurgical coke. Common bore core tests and analyses appropriate to this usage can be cate- gorized as non-destructive, chemical, physical, petrographic, caking/plastometric and propert- ies of non-coal material. The major tests within each category are described. Certain specific information from the bore cores is required by the coal geologist, mining engineer, coal preparation engineer and the user, either individually or as a group. The optimal bore core evaluation test pro- gramme is the one which satisfies the needs of all the professional disciplines with the grtatest speed and at minimal cost. The principal steps in such a programme are listed. There is an urgent need for a bold new Australian standard to provide the necessary guidelines to an industry which at present lacks uniformity in its approach to the task.

Jan 1, 1977

FINANCE FOR EXPLORATION Two factors have basic importance in relation to the availability of finance: the apparent success of continuing exploration activity and tax concessions. It is not proposed to discuss the effect of existing tax incentives, as these have already been outlined and are generally accepted as being reasonably attractive; certainly not a deterrent to possible investors. However, it is obvious that the greater the tax incentives, the greater the amount of money that will be attracted, and the wider the number of people who can be brought into the pool. If, as is suggested, the chance of discovery is related to expenditure and effort, then the more money attracted, the better the prospects of significant finds. It is probably correct to assume that the largest expenditure in mining will come from, or be induced by, people expert in the field, people who are fully aware of the risks and benefits and perhaps making conservative decisions because of this awareness. Insofar as the general public is concerned, while in the first burst of enthusiasm it will frequently follow any promoter, in the long run it too will become more sophisticated and will strongly support only those promoters and companies of good repute and proven record.

Jan 1, 1971

By C A. Fleming, C J. Ferron, P T. OÆ

A new process is described which allows for direct recovery of base and precious metals (Au and PGMÆs) from sulphide concentrates or other feedstocks. The process was developed initially for application to ores or concentrates that are too low-grade for economic treatment by the conventional smelting and matte leaching process (for PGMÆs). It is now believed that the process may be widely applicable to a variety of materials including PGM concentrates containing high amounts of chromium or magnesium. Operating conditions have been identified under which gold, the PGMÆs and the base metals dissolve simultaneously in a pressure leaching autoclave. The product of this leaching process can then be treated by one of several flowsheets, of which the preferred will likely involve solid/liquid separation, followed by precipitation (or adsorption on activated carbon) of gold and the PGMÆs, followed by copper solvent extraction/electrowinning. Depending on the concentrations of nickel and cobalt, the copper raffinate would either be partially recycled to the autoclave to allow Ni/Co concentrations to build up, or it would proceed directly to a Ni/Co refinery. This paper deals with the pressure leaching process and the recovery of gold and the PGMÆs from the pressure leach product.

Jan 1, 2000

By Tomlinson R. C

The paper will briefly describe planning in the National Coal Board (NCB) and the contribution that operational research makes to it. It will then give details of some of the models in use and will finally consider critically the problems of looking ahead to the next century.

Jan 1, 1977

This paper considers the standard of ore reserve assessments required by lenders when presented to support requests for project based loans. The way lenders use this information to structure a suitable financial package shows why ore reserves should be measured by industry set standards. This in turn raises questions concerning the assumptions used to derive mineable reserves from geological reserves. Consideration of the variety of related problems highlights the need for assessments to be defined according to acceptable standards. These should also address the suitability of the methodology to the assumed configuration of the orebody; the degree of variance and relaibility of estimates of grade and tonnage presented; and the estimation of probability that ore will in practice fall within the defined limits. In an increasingly international marketplace it is appropriate to compare Australian industry requirements to those of similar overseas industries, in this case the United States. Lenders would like to see that individuals responsible for the preparation of ore reserve estimates are certified on the basis of their skill and expereince by an industry body such as The AusIMM. The paper discusses how each of the parameters indicated above may impact upon a lender's assessment of the viability of a project. A number of practical examples are presented where inaccuracies or inadequacies in ore reserve information have led to reduced project performance.

Jan 1, 1987

By J-M Rendu

Substantial progress has been made over the last ten years in the development of uniform national and international standards covering the definition, estimation and public reporting of mineral resources and mineral reserves. Agreement between the major participating countries has been reached, which includes the requirement that a Competent Person prepare and approve publication of mineral resources and reserves. Most national regulatory organisations have accepted the new standards and have included them in the rules that must be followed by mining companies operating under their jurisdiction. These developments are the result of a concerted effort on the part of professional societies, national regulatory agencies, international organisations, and many dedicated individuals. The historical development of these standards is summarised in this paper. Accepted definitions of mineral resources and mineral reserves are discussed, as well as the definition and role of the Competent Person. Additional effort is needed before the international standards are fully understood, accepted and followed by mining companies, regulatory agencies, the investment community and the general public. Steps being taken toward development of an International Code are outlined.

Jan 1, 2002

Research and Technical Services, Department of Mines Western Australia The nine papers received for this technical session cover a very wide range of hydrological problems in various parts of the world. Three of these papers deal with hydrological predictions for new mines, while three are concerned with the prediction of water chemistry. The three remaining papers deal with gas injection as a dewatering tool, discharge formulae verification and the use of a physical model to predict subsurface strata movement and fracture development due to longwall mining. Hydrological problems in mine planning represent a major risk in many mining operations, booth as a potential life or equipment hazard and a major financial risk. The initial paper selected to review was therefore one by the president of a gold mining company, rather than by one of the specialist scientists, to remind us all that the main reason problems are faced and overcome in the mining industry is usually a commercial one. In one commercial undertaking, the ability to accurately assess future risk is a highly desirable planning tool and hence in mining, the ability to predict the nature and magnitude of hydrological problems is n i-an varxi imnnrfant

Jan 1, 1988

Computers are playing an increasing role in the management of technical data in mines. Companies are re-assessing the role of their data processing departments as users demand computer resources in non-accounting areas. Data of all kinds is now being seen as a, company resource, and the role of computing professionals is to help to manage the data flow, not merely to manage computers. The concept of distributed data bases puts the responsibility for data entry, editing and updating with the user. This challenges conservative views of centralized control of computing, suggesting, instead, centralized co-ordination. A survey of the possible applications of computers in technical areas points up the special requirements of handling raw, processed and consolidated technical data. Technical data bases have become flexible as mini- computer hardware and software have rapidly developed. Management has the ultimate responsibility for efficiently administering corporate data bases, and it must ensure suitable policies are developed for this purpose, with enough flexibility to cope with the impact of fast changing technology.

Jan 1, 1980

New Zealand's Land and Income Tax Act 1954 contains unique incentives for companies engaged in mining certain specified minerals or petroleum. Sections 152 and 153 provide for the taxable income of such companies to be based not on profits made but on dividends paid to shareholders. A significant saving in tax results, particularly where profits are not distributed: but the Act attempts to ensure that undistributed profits are used for further mineral exploration and development. To encourage investment in the mining industry, persons taking up shares in a company mining for the specified minerals or petroleum are entitled to a one-third deduction in respect of monies paid on the shares and used by the company for its purposes; and company shareholders may make loans to the company and write-off such loans for tax purposes to an amount of up to half their taxable income. Maximum utilisation of the tax incentives calls for careful consideration as to whether a mining or petroleum company should be financed by way of loan capital or share capital.

Jan 1, 1971

By Kershaw MG

At the Risdon plant of the Electrolytic Zinc Company of Australasia Limited, impurities toxic to the electrolytic production of zinc metal, notably arsenic and antimony, have traditionally been coprecipitated when precipitating iron as ferric hydroxide. With the development of a new lead/zinc mine at Elura, New South Wales, it was anticipated that the concentration of impurities, particularly arsenic, in the zinc sulphide concentrates treated at Risdon would increase. This suggested that an increase in the capacity of the iron purification step in the Risdon plant would be required to cope with the higher input of these impurities.Laboratory investigations showed that the additional capacity would be achieved, either by a massive increase in the amount of iron used as the "collector" in the process, or by a two-stage process. The latter approach was preferred as an increase in the amount of iron precipitated would lead to much higher operating costs and overloading of the existing equipment.

Jan 1, 1985

Near Kangiara in south eastern New South Wales, Australia, a number of polymetallic (copper, lead and zinc, with minor silver and gold) mineral deposits occur within a relatively broad volcanic rock belt, intercalated with limestones, sandstones and shales, of Silurian age. The Kangiara deposit was the most significant for the region.Adjacent to the Kangiara deposit, the unaltered country rocks are more rhyolitic than elsewhere in the volcanic rock belt, and the mineralization is accompanied by silicification, chloritization, sericitization and argillization. The host rocks typically contain a higher K20:Na2O ratio than the volcanic rocks not associated with mineralization.In the Kangiara deposit the mineralization consist of massive (in part banded), fragmental, disseminated and vein-type copper-lead-zinc ores, with the massive and fragmental types divisible into pyrite-rich, chalcopyrite-rich and sphalerite-galena-rich varieties. With respect to this mineralogy, the ore textures and sulphur isotope compositions the deposit can be compared to the stratiform mineralization associated with Silurian acid volcanic rocks at Woodlawn, Captains Flat and elsewhere in the Lachlan Fold Belt, as well as the Tertiary Kuroko deposits of Japan.

Jan 1, 1990

By Player WP

The legislative operating environment, or the mineral regime, that a country has to offer is one of the key determinants that a company wanting to invest in an area takes into account in formulating its investment decision. The New Zealand Government recognises this and the importance of getting the regime right in order to provide for continuing investment in mineral exploration and mining in New Zealand. In recent years, the Government has given considerable attention to developing legislation which provides for investment to take place; for those making the investments to have a stable, fair and open investment environment with government intervention only when considered absolutely necessary because other approaches are not working; and for the people of New Zealand to know that investment must meet acceptable health and safety standards and have acceptable impact on the environment. Also of key importance is having a clearly defined mining regime which includes rules on how to obtain a permit and rules in respect of ongoing permit compliance, rights to develop a mineral resource and permit conditions (in particular, the royalty regime). In New Zealand, these matters will all be addressed in what are referred to as "minerals programmes".

Jan 1, 1995

By Moelle KHR

The successful operation of a longwall face depends significantly on the efficient actions by support systems and on the ability to form a supported beam for a limited time span.The mechanical action of the supports can set up complex stresses in the immediate roofstrata.The cyclic application of supporting loads to the immediate roofstrata of a longwall face creates a special type of fabric disintegration in the rocks -affected. The mode of application and the distribution of the supporting forces is thus severely modified in a number of cases.The occurrence of true fatigue damage in brittle sandstones has been identified by studying the subcritical crack growth and microcrack development in the fracture-tip region. Several mechanical effects peculiar to the cyclic fatigue process have been identified. These effects had not previously been widely recognized. Damage in brittle rocks subjected to cyclic loads is shown to be distinctly different from any other damage processes under either monotonic or sustained (creep) loading conditions. The face support systems will frequently support rockmasses with mechanical properties not identified in conventional monotonic or sustained load tests.

Jan 1, 1991