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By W Dodson

Major ions, d18O and d2H and Carbon-13 concentrations in groundwater from 30 bores near an open pit iron ore mine were used to better understand the chemical evolution of groundwater in the aquifer. The relatively depleted d18O and d2H isotopes of groundwater from various depths suggest that groundwater is recharged from intense rainfall events, with little evaporative effect. The 300 to 500 mg/L increase of major ions relative to that of rainfall is due to evapotranspiration of rainfall during recharge. Geochemical mass balance modelling suggests that the evapotranspiration of rainfall during infiltration through the unsaturated zone varies over six fold from 20 to 130. This coupled with the dissolution of CO2 from the unsaturated zone and partial dissolution of carbonates and gypsum from Tertiary sediments and carbonates from the Wittenoom Formation accounts for the current major ion, d18O and d2H distribution in groundwater. Despite the relatively dissected morphology and steep hydraulic gradient the results of this study highlight the dominance of vertical flow relative to horizontal flow. The study also shows the dominance of rapid recharge by significant rainfall events as an important component of the water budget for east Pilbara aquifers.

Jan 1, 2009

The ventilation conditions at the underground coal mines are influenced; first: by the disturbances of the natural nature (barometric pressure, methane liberation, etc.), and second: by the disturbances caused by the production process. The major goal of this study was to determine the changes of the ventilation parameters, such as the flow, pressure and methane concentration around the longwall panel, particularly, along the longwall face due to the shearer operation (motion). It is well known from the practice, that the movement of the shearer influences the ventilation parameters around the longwall panel, including the gob area. Until now, these data were gathered in a single or multiple locations at the different time. However, only the simultaneous measurements of all of these values allow seeing the time dependent interrelationships between measured parameters. To be able to show these interrelationships, special experiments, described in this paper, were carried out by the author. These experiments were prepared and executed at the BUDRYK Coal Mine in Poland. During each experiment a simultaneous measurements and monitoring of the barometric pressure, air velocity and methane concentration at the different locations along the longwall face, were performed. The investigation was possible by using a special setup of instruments with a short sampling time, i.e., within 2 seconds. The monitoring of the absolute pressure was conducted by using the digital barometer µBar, developed by EMAG, based on the SETRA pressure transducer, model 470. The velocity of air was measured using the electronic vane-anemometers, developed by IMG-PAN. The methane concentrations were measured using methanometers as the part of the EMAG automatic gas monitoring system. The investigation data confirmed that disturbances due to the operation (motion) of the shearer at the longwall face have a local character. It could be also seen that a large diameter shearer (compared to the total cross-section area available for the air flow) is acting as the piston compressing the air (the overpressure) ahead of the shearer. This fact affects the methane mixing process and flow patterns in the vicinity.

Jan 1, 2009

The Prospero orebody is a part of the Helene mine at Cosmos and was scheduled to begin production in March 2008 after the exhaustion of the Tapinos orebody in the same mine. Treatment of the Tapinos orebody was challenging and it was envisaged that Prospero would have similar properties given that it was also anomalous in deleterious elements and would be of a similar mineral hosting. It was deemed necessary to undertake a metallurgical test work program to identify any potential processing issues, complex mineralogy or significant metallurgical domains. The paper discusses the processes which were employed to undertake the metallurgical test work program and describes the aspects that can be employed by other developers to quickly and effectively assess potential future orebodies. It will demonstrate that the work was successful at determining expected metallurgical behaviour, providing direction for mining operations and highlighting areas for more extensive research.

Jan 1, 2009

A shortage of technical skills in all areas of the mining industry is being experienced worldwide. This has significant consequences for design, operations, productivity and safety and, therefore, needs to be seriously addressed, both in the short and longer term. It is therefore both a strategic and a tactical issue. Importantly, however, since mining is a long-term business, the shortage of skills must be dealt with from a strategic point of view to ensure the supply of the necessary skills for future mining. This paper will deal specifically with the provision of high level technical skills, that is, university graduates in mining engineering, and the outlook for the institutions that are currently producing such graduates.

Jan 1, 2009

By J. P. Brady

A major spontaneous combustion incident occurred in the sealed goaf of the SL3 Panel; Southland Colliery in 2003 resulting in the loss of a longwall and sealing of the mine. The most important issue for the new owners, Yancoal Australia Pty. Ltd, was to effectively manage the atmosphere in the fire affected sealed area. This atmosphere comprised of flammable gases, the products of combustion and excessive levels of oxygen due to pressure differentials across the panel isolation seals with a potential ignition source associated with the residual spontaneous combustion event. The challenges were met in the first instance by the erection of pressure balance chambers with limited success. The problem was not solved until the pressure chambers were pressurized using a Floxal Nitrogen Plant supplied by Air Liquide Australia. Given the success of this approach on a small scale, a higher capacity Air Liquide Floxal Unit was acquired to manage spontaneous combustion at the recommencement of longwall mining operations. This provided the ability to pressurize pressure chambers that were installed in the Maingate Seals behind the face of the adjacent Longwall Block effectively preventing the ingress of oxygen and permitting the goaf to self inert in a reasonable time period. This paper summarizes a new proactive method of mitigating the risks associated with active and sealed goaves. Proactive management of these areas using low flow nitrogen into pressure chambers to maintain a positive pressure has eliminated typical reliance in explosion proof or explosion resistance seals as the primary control.

Jan 1, 2009

By M. N. Chandraprabha

This paper discusses the role of the mineral-adapted acidiphilic microorganism Acidithiobacillus ferrooxidans in the beneficiation of arsenopyrite-containing multisulfides (pyrite and chalcopyrite) and the bioremediation of the resulting arsenical waste water. It was found that adaptation to minerals alters the surface properties of the microorganism. Bacterial adaptation to arsenopyrite and controlled bacterial adhesion to mineral surfaces lead to selectivity in arsenopyrite separation. Bioremoval of arsenic ions (both arsenite and arsenate ions) by Acidithiobacillus ferrooxidans is also discussed. Key words: Acidithiobacillus ferrooxidans, Bioremediation, Arsenopyrite beneficiation

Jan 1, 2009

By B. Cousins

Copper, nickel, zinc and other ?penalty? metals are found with gold together in nature, and have a similar chemical affinity for cyanide used in leaching operations4. As a result, solutions that come from the heap leach pads contain a significant concentration of penalty metals along with the desired gold. In solution, gold and cyanide form the complex Au(CN)2- that is readily adsorbed onto activated carbon. Penalty metals as individual metal ions also load onto activated carbon and, depending on the concentration of cyanide and the pH of the solution, can form various cyanide complexes. Some of these complexes can also load onto carbon while some are significantly inhibited from loading. Copper, for example, can form the dicyanide complex Cu(CN)2-, the tricyanide complex Cu(CN)32-, and the tetracyanide complex Cu(CN)43-. At a low pH and a low concentration of cyanide, the dicyanide complex predominates. At a higher pH and a higher concentration of cyanide, the tetracyanide complex predominates. Without excess cyanide, however, individual copper ions can remain present. Activated carbon is used in gold extraction because it is highly selective for gold and less so for other metals, such as copper3. However, copper has the ability to adsorb (?load?) onto activated carbon and block the adsorption of gold when it is in the dicyanide form and in a high enough concentration. When copper is in the tetracyanide form, copper loading is significantly inhibited, allowing for the maximum gold recovery. In order to ensure the tetracyanide complex is formed, a combination of both available cyanide and elevated pH must be present. In the South Area of Newmont Mining Corporation?s Gold Quarry mine in Carlin, Nevada, copper and nickel loading becomes a problem when certain acid generating zones of the heap are leached. Copper, nickel, zinc and other penalty metals become leachable and the lower pH uses up more of the cyanide and creates carbon loading conditions for the metals. This decreases the carbon?s ability to extract the gold from solution, decreasing the recovery and increasing the concentration of gold in the barren solution that leaves the carbon columns. In this study, operational data from March through to May of 2007 is presented to show how Newmont developed a quick fix to lower pH and elevated metal concentrations that were causing low gold loadings on activated carbon at their South Area Leach (SAL) heap leach operations. Laboratory tested were also conducted to examine the chemical kinetics of metal loading and the individual effects of increased cyanide concentrations. THEORY Copper I ions form four different complexes with cyanide in solution: the monocyanide species CuCN, the dicyanide species Cu(CN)2-, the tricyanide species Cu(CN)32-, and the tetracyanide species Cu(CN)43-. The species are formed from the following reactions: [Cu)(?+-+ K1 (1) Cu ß2 (2) --+?+23)(3CNCuCNCu ß3 (3) --+?+34)(4CNCuCNCu ß4 (4) ] where K1 equals 1019.50, ß2 equals 1024.03, ß3 equals 1028.65, and ß4 equals 1030.35. Along with these complexing reactions, hydrogen cyanide and water also dissociate in solution, as per the following reactions: [H?+-+ KH (5) OHOHH2?+-+ KW (6)] where KH has a value of 109.24 and KW has a 1014 value2. These six chemical equations compete with each other, with domination of one over the others dependent on the CN- and H+ concentrations. Each complex also has different properties when it comes to its loading behavior on activated carbon. The dicyanide copper complex and the monocyanide copper complex have an affinity for adsorption onto activated carbon that is greater than the affinity of gold cyanide for adsorption. They also have a lower solubility in water, which enhances adsorption. The tricyanide copper complex and the tetracyanide copper complex are water soluble and have an affinity for loading adsorption on activated carbon that is less than the affinity of gold cyanide for loading adsorption1. There are three prime reasons for this phenomenon. First, the extra cyanides mask the metal ion more, which blocks the main adsorption characteristic of the complex. Second, the complexes are also larger, making it harder to physically fit into the active sites on the carbon. This helps make the latter two complexes kinetically inhibited from adsorption, freeing carbon active site to load with gold cyanide complexes. Third, it is also important to consider the expressions of the mass and charge balance. These balances describe all the overall concentration of copper and cyanide in solution, as well as marking overall charges of the ions in solution4. This is important because significantly changing the charge from positive/neutral to more negative is another reason for activated carbon to reject adsorbing the higher cyanide complexes. The speciation of copper and other penalty metal cyanide complexes in solution is dependent on the pH. At lower pH values, increased hydrogen ions (H+) can out-compete metals for cyanide ions. Lower free cyanide in the system leads to the lower cyanide species of copper cyanide predominating, with a noticeable concentration of the free metal, monocyanide and dicyanide species of copper cyanide. At higher pH values, hydrogen ions are significantly reduced, reducing the kinetics of HCN formation. More free cyanide remains in the system, allowing for more complexing. With this higher amount of cyanide in the system, the tetracyanide species of copper cyanide predominates, also with a noticeable concentration of the tricyanide species of copper cyanide. Higher copper concentrations, however, require more

Jan 1, 2009

By N. Oswald

As coal mines age and become more developed, ventilation modeling becomes more important for the planning and continued operation of the system. Numerous studies have been performed and presented that address the collection of data and measurement of airway friction factor and resistance per unit length values. However, a quantitative analysis of the resistance for stoppings in coal mines for different construction materials and methodologies has not been adequately addressed. In order to develop an accurate/realistic ventilation model both airway resistances and stopping resistance values need to be determined. Over the course of the past two decades Mine Ventilation Services, Inc (MVS) has measured the resistance of stoppings of various construction types in mines throughout the world. An analysis of this data is presented in this paper along with a discussion of measurement methodology.

Jan 1, 2009

By Frank van der Meer, Jorge Portocarrero, Alexandra Gruendken

"The number of High Pressure Grinding Rolls (“HPGRs”, also called Roller Press) installations instead of tertiary crushers is rapidly increasing. The technology has been largely accepted in the minerals industry and benefits, such as superior energy efficiency and a lower overall operating cost compared to alternative technologies, have been demonstrated at a number of operations throughout the world.This paper focuses on coarse hard ore operations and reviews the successful installation of the first Roller Press installed instead of a tertiary crusher at the Los Colorados Plant of CMH (Chile) in 1998. It details the experience obtained over the past ten years of operation from commissioning to the present day. It highlights examples of further developments made in the design to improve machine maintainability and availability as well as wear life of the grinding surfaces.A second focus lies on procedures to derive from small scale testing material properties such as wear life, flake formation and strength and their application to industrial size machines to optimize circuit design, especially when Roller Presses are used in closed circuit with screening.INTRODUCTIONRoller Presses (also known as HPGR, High Pressure Grinding Rolls) are considered today state of the art for the preparation of pellet feed. They are also gaining wide acceptance in coarse ore operations. One of the first successful operations in which a roller press was used to replace a conventional tertiary and quaternary crusher is the Los Colorados plant of CMH in Chile.When the Roller Press at Los Colorados was commissioned in 1988, there were 169 Humboldt Wedag roller presses in operation throughout the world. Of these, 14 were installed in the minerals industry. However, these were installed mainly for grinding pellet feed to increase the Blaine value. Up to that time, only three KHD roller presses had been applied for crushing coarse ore in specialized circuits. Moreover, the installation at Los Colorados was the first Roller Press ever to replace a conventional tertiary and quaternary crusher in a hard ore application."

Jan 1, 2009

By Eugen Gluck, Gus Van Weert, Peter Kondos

"Microwaves have the capability to heat up sulphides, especially clusters of particles of approx. 1 mm. Some sulphides absorb microwaves more readily than others. Molybdenite is especially effective in this regard, possibly due to its flaky nature and/or electrical conductivity. Even where it occurs in low concentrations in a deposit, individual rocks may be ore grade due to the high monetary value of MoS2. Such rocks often result from crushing mined veinlets or stockwork, or are contained in the cutoff grade fraction of ROM. Machine segregation of rocks high in MoS2 by infrared sensors after microwaving could therefore advantageously be used to upgrade lower grade ore between Mine and Mill. This would reduce the size of the latter, and thus its CAPEX and OPEX. Such upgrading could also yield shipping ore for a distant Mill, or extend ore reserves.Barrick Gold Corp. has been supporting the development of MW/IR sulphide sorting for the past three years. The results of MW/IR sorting work on molybdenite and other (pyritic) ore samples from a variety of sources are being presented here.INTRODUCTIONThis paper looks at mechanized, i.e. machine ore sorting technologies currently available and under development, and what conditions would be needed for the potential application of such ore sorting to sulphide mining and milling. Current machine sorting involves no-contact sensing technology for rocks, and signal processing after sensing to activate airblast segregation of certain rocks, normally the smallest mass to keep compressed air costs down.The forerunner of modern sorting is probably magnetic separation, which utilizes an inherent property of certain ores to divert it into mag and non-mags fractions. Radiometric ore sorters, which have been applied successfully for decades in the pre-concentration of uranium ores (Wotruba and Riedel, 2006) initiated modern sorting. In the 90’s, sensor-based machine sorting became a viable means of increasing the overall economic recovery of a resource. This technology became driven by the availability of low cost computing equipment and the concurrent development of algorithms, and by the availability of extremely fast response sensors and air actuators, allowing the sorting equipment to run faster, dropping the cost per tonne. It has been in industrial minerals processing that rock sorting has been most widely adopted, not really surprising. Liberation occurs on a different scale than in the base metal industry. Most industrial minerals are mined from massive deposits, requiring (in the past) no upgrading. Many of these operations now run into product contamination problems, which ore sorting can solve. One illustration: in Finland, a quarry is separating limestone from dolomite at 500 tonnes / hour, with individual rocks weighing up to 15 kg. Many of these industrial minerals operations have stockpiles of earlier discarded below-quality rocks, now being reprocessed with the help of ore sorting. The economics of this are very favourable, going from zero or negative value (stockpiles can not be left when closing the mine) to full product value for at least a portion of the stockpile. This suggests that in the future the economics of overburden sorting could become attractive under the right circumstances and such treatment could well become an integral part of open pit mine development."

Jan 1, 2009

By Andre Pienaar, Larry Wilson, Clive Dawkins

The development of implementation of cost effective emulsion explosive and portable pumping system for the replacement of package explosives in the deep level gold mining environment. A number of versions of portable pumps will be presented, demonstrating continuous improvement on these systems. Data on reliability of units in the field will be presented.

Jan 1, 2009

Federal regulations require the use of methane monitors on all mining machines. All machine-mounted methane monitors currently used in underground coal mines rely on catalytic heat of combustion sensors. As a comparison, although not currently approved for use on underground mining equipment, instruments with infrared sensors are evaluated in this study. Potential advantages of using infrared sensors include faster response time, long-term stability, and reduced maintenance needs. Tests conducted in the laboratory and at a full-scale model mine compare the performance of catalytic heat of combustion and infrared sensors operating under test conditions designed to simulate airflow conditions underground.

Jan 1, 2009

By A. E. Ketler

Conventional Atmospheric Monitoring System (AMS) installations for monitoring CO, CH4, O2 and air-velocity throughout underground mines are usually relegated to a modest 3-5 mile extent and with data communication speeds confined to a ponderous 1-5K baud range. New US-MSHA and state regulations require fast reporting of unsafe conditions, and the old 20-30 minute updates are no longer acceptable. To communicate farther and faster has always been a problem, because data reliability degenerates with excessive distances and high speeds. Because of this, very large mines often resort to costly optical-fiber media, using expensive OF cables and repeaters to obtain the necessary coverage. This entails high initial cost, as well as high maintenance and downtime costs to repair or replace broken optical fibers. Rel-Tek has pioneered with its DX-Bus communication data highway, which uses inexpensive twisted-pair telemetry cables, which can now communicate well into the 20-mile extent of the largest mines -- normally a brick wall for low-tech AMS systems. This extended range, enables the use of twisted-pair cables and provides a low cost alternative to OF systems. This paper discusses the DX-Bus, and its latest accomplishment, the ?B-LINK,? a unique high-speed communication repeater that maintains the 19.2K-Baud data rate. On-going innovations to our workhorse Millennia-DX computer software have kept pace with this extra speed/distance phenomenon, resulting in a dually-optimized AMS package: both hardware and software. Cost savings are substantial, and at no sacrifice of reliability ? nearly always at 100%. Sensor updates are measured in seconds, not minutes and hours. Twisted pair copper cable is cheap to purchase and install and a breeze to maintain. Rel-Tek uses the B-LINK's wide branching capabilities to enable the AMS to extend 20-miles both far and wide. Actual experience in large US coal mines -- both longwall and continuous mining operations -- confirms the large mine performance. The ventilation and safety benefits to the mining industry are immeasurable.

Jan 1, 2009

By W. McMahon

Following the Sago Mine accident, the Mine Safety and Health Administration (MSHA) asked the U.S. Army Engineer Research and Development Center to study several possible methane explosion scenarios in the Sago coal mine. The study used a 1-ft resolution map of the mine to produce a 3-dimensional (3-D) model of a portion of the mine, including the sealed area where the explosion occurred. An advanced 3-D computational fluid dynamics (CFD) code was used to calculate the explosion pressures within the sealed area, on the mine seals, and in nearby regions of the mine. Based on the best available information on methane concentrations and assumptions on homogeneity and on layering and mix composition, three separate initial conditions of methane-air concentrations and location were studied. This paper discusses the CFD modeling technique, the results of the calculations, the challenges of conducting this type of modeling, and the advantages and limitations of CFD modeling of accident investigations of mine explosions.

Jan 1, 2009

By S. E. Phillipson

Underground mine mapping is a critical component of understanding the controls on ground instability. Many relatively localized examples of ground failure are associated with geologic features, such as faults, joints, compaction zones, or sedimentological transition zones. In contrast, long-running, directional roof falls are associated with regionally directed horizontal stress fields, which are induced by tectonic plate interactions in the earth?s crust. When stress-related features are distinguished from geological features, underground mapping can be an effective method for inferring the direction of horizontal stress at individual mines. Comparisons with data compiled in the World Stress Map confirm that underground mapping can be a valid method for determining the orientation of maximum principal horizontal stress at a variety of scales, ranging from individual mines to an entire mining district or coal basin. Comparisons are presented between the maximum horizontal stress directions inferred by MSHA?s Roof Control Division through underground mapping and the azimuths of maximum horizontal stress in the World Stress Map database for North America?s Pennsylvanian-aged Appalachian, Illinois, Black Warrior, and Arkoma Basin coal fields. The comparison indicates that azimuths are similar for both data sets, even where variations in the direction of horizontal stress are present. It is interpreted that inconsistencies in direction are attributable to near-surface affects such as deeply incised stream valleys, or to fault zones that represent heterogeneities in the crust.

Jan 1, 2009

By A. K. Bhattacharya

Cylindrical bridge piers are widely used and equations exist that can predict the maximum depth of local scour around such piers. Scour around piers is an undesirable phenomenon, as it requires the foundation to be placed to a greater depth resulting in increased cost, making it worthwhile to investigate scour-reducing measures. A number of scour-reducing measures have been tried out for cylindrical bridge piers including placing a concrete collar around the pier, having a delta-wing projecting upstream in front of the pier, placing riprap around the pier, using a group of piers instead of a single pier, having a slot in the pier aligned in the longitudinal direction. The objective of this study is to investigate the effect of upstream protective piles on reduction of maximum local scour depth around a cylindrical bridge pier. The upstream piles are placed at different radial distances in front of the pier and the scour depths are observed. The proposed equation of Dey (1997) for determining the maximum depth of scour around a cylindrical bridge pier is used. The reduction of local scour around the pier is compared with local scour around an unprotected pier.

Jan 1, 2009

By R. H. Estrada-Ruiz

This work analyses a new approach to estimates bubble size distribution of froth surfaces using artificial neural networks (ANN).Also, the robustness of ANN to interpret images with illumination perturbations, produced by light problems or dirt attached to the window of the video camera is evaluated. The experimental work was carried out in a laboratory flotation column, instrumented with an image acquisition system. The images were processed making use of a perceptron model with a hidden layer, sigmoidal transfer function and unitary bias, and the ANN trained with a back propagation algorithm. The results of validation show that ANN are reliable for learning and producing generalized predictions of the froth mean bubble diameter and bubble size distribution, when the model is trained using a database that contains information on the illumination intensity. Keywords: image analysis, neural networks, bubble diameter, bubble size distribution.

Jan 1, 2009

By Luis Bernal, Pertti Lamberg

"SkimAir®, Outotec’s Flash Flotation unit, is placed in the grinding circuit to float the valuable liberated mineral particles from the circulating load of the grinding process while still relatively coarse. Esperanza copper-gold deposit located near Sierra Gorda, Chile, hosts 535 Mtn ore grading 0.57 % copper, 0.27 g/t gold. A series of laboratory and pilot flotation tests were conducted to find out the flotation performance of different ore types both with and without the Flash Flotation. This data was used in modeling and simulating to find the optimal flow sheet for the highest Au and Cu recoveries with required Cu concentrate grade. Simulations with the HSC Chemistry 6.1 software showed that with the SkimAir® and Flash Cleaning it is possible to achieve the required copper grade of 27% Cu with 5% higher recovery for gold and 2% higher recovery for copper compared to the circuit without the Flash Flotation. The pilot tests with simulations were the back up for the installation of four Outotec SkimAir® SK 2400 Flash Cells in the Esperanza circuit for the processing 95.000 tpd of copper-gold ore.INTRODUCTIONEsperanza copper-gold deposit is located near the town of Sierra Gorda, 2nd Administrative Region in Chile. Deposit hosts 535 Mtn ore grading 0.57 % copper, 0.27 g/t gold. The main copper minerals are chalcopyrite and bornite. Gold is carried by native gold and solid solution of copper.Antofagasta Minerals S.A. conducted a series of flotation studies at SGS Minerals Services. The studies included both laboratory and pilot scale work. In the pilot scale study the applicability of the Flash Flotation technology was studied with High-grade Andesite and High-grade Porphyry samples (SGS Mineral Services). The Flash Flotation technology gave significantly higher recovery for gold than the conventional flotation circuit. The recoveries for copper were slightly higher using the conventional flotation."

Jan 1, 2009

By Fredrick Fränding

In mining and quarrying operations, electric motors can fail for a variety of reasons. Some failures are directly linked to demanding production requirements and contaminant-laden environments and, consequently, are difficult to prevent. A sizeable number, however, are caused by ?offline? factors that have nothing to do with production. These include inadequate or substandard motor repair practices and improper motor shipping, storage and installation. The fact that failures are at times attributable to repair- or rebuild-related errors and problems raises the stakes when selecting an electric motor repair provider. Teaming with high-quality electric motor shops can help a company reduce failures due to offline factors, improving motor reliability and cutting downtime costs. Regardless of location or annual revenues, the best motor shops have similar business cultures and share many of the same characteristics.

Jan 1, 2009

By D Akis, A Clark

The Lihir gold operation, located in the New Ireland Province of Papua New Guinea (PNG), approximately 900 km north of Port Moresby, was commissioned in 1997 under the management of the Lihir Management Company, a subsidiary of Rio Tinto. This management period ended in 2005 with Lihir Gold Limited (LGL) becoming self-managed. LGL is now the largest listed company in PNG and a top tier mining company in Australia. The focus of the operation since 2005 has been to take advantage of strong market conditions to increase cash flow while driving operating costs into the lowest quartile of gold producers. During this period production has increased through capital expansions, most notably with the addition of a flotation circuit, and through culture change and efficiency improvements. The next step forward for the Lihir operation is a major plant upgrade to increase production to an average of around one million ounces per annum by matching the ore processing rate to the ore mining rate. The key benefits of this project will be the addition of approximately 240 000 ounces per annum of gold production, the access to an additional one million ounces of gold and the ability to meet all stockpiling requirements. The Lihir operation has come out of the boom period in a strong position, is undertaking a major upgrade at a time when prices are low and labour is available, and will be positioned to take advantage of future opportunities as they arise.

Jan 1, 2009