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E Deposit is located at BHP BillitonÆs Area C iron ore operations in the central region of the Hamersley Province, Western Australia. It is hosted by the Marra Mamba Iron Formation, the lowermost unit of the Archaean to Lower Proterozoic Hamersley Group. Mineralisation at E Deposit East is contained within the Mount Newman Member of the Marra Mamba Iron Formation and extends into the lower West Angela Member of the overlying Wittenoom Formation. Use of a combination of geological and geophysical techniques has enabled the geological setting of the deposit to be qualified. Interpretation of detailed mine face mapping, downhole geophysics, geochemistry, geological logging and photography has identified D2- related thrust faulting, with substantial south-over-north displacement. Similarly, in-pit mapping at the nearby C Deposit has revealed intense localised D2 deformation, including overturning and thrust faulting. The interpreted structure illustrates that iron ore deposits in the central Hamersley Province can be intensely deformed and require detailed geological investigation utilising technical data from mapping and drilling to enable the creation of robust grade-models for the mining operation.

Jan 1, 2007

By W Stange, N Hanson

An important aspect of the project evaluation process is the achievement of a clear and quantitative understanding of the primary drivers influencing project value and risk. A business scenario-based approach is required to ensure that the project meets value and risk hurdles over the short, medium and longer term. Adopting an optimising approach can aid significantly in the development of a project concept into a business that is optimal and sustainable in the longer term. Through the application of case studies, based on work performed with various mining organisations during the last five years, this paper will demonstrate how project value and robustness can be optimised. Experience has demonstrated that applying this approach results in significant value improvements and risk reduction û primarily by application of a rigorous, fact-based analysis and optimisation process that rapidly increases management team understanding and insight of key driver of value and risk.

Jan 1, 2007

By H Arvidson, J Vann

When only wide-spaced drilling is available, for example at concept, prefeasibility and feasibility stages, properly implemented linear estimation (including ordinary kriging) predicts grade tonnage relationships that are over-smoothed compared to final production estimates (and production). Non-linear estimation and conditional simulation are alternative geostatistical approaches that can provide more reliable estimates of the recoverable tonnage and grade from wide-spaced drilling. Non-linear estimation and conditional simulation have been rarely used on iron ore deposits. However, these techniques have had wide application in other commodities such as gold and base metals. Conditional simulation has been used in the iron ore industry (eg Guibal et al, 1997); however, its use here is outlined as a means of generating non-linear estimates, not just its use for variability and drill spacing analysis. As a rule, regardless of commodity, the decision to use non-linear geostatistics will necessitate increased skills and require more time. This decision must therefore be justified in terms of cost-benefit. Such cost-benefit analysis is not straightforward, and to help an approach for determining when linear estimates are inadequate is presented. Recommend in this paper is a well-established non-linear geostatistical approach, the global ædiscrete Gaussian modelÆ (DGM) of change of support, as a tool to establish whether moving from linear to non-linear estimates will materially improve estimate results. Also discussed is the additional use of DGM as a block model validation tool. One specific factor contributing to the lack of application of non-linear geostatistical methods in iron is the added difficulties that arise when conditional simulation and non-linear estimates are required to reproduce the numerous and often important correlations between variables in iron ore deposits. Consequently, presented in the paper is a synoptic review of non-linear estimation and simulation methodologies applicable to correlated variables.

Jan 1, 2007

In todayÆs evolving and globalised world, mining companies are being pressured to move beyond compliance towards long-term sustainability and sustainable development. Companies are expected to æengageÆ communities and measure the success of these engagements without a clear understanding of æhowÆ to do this. This move, away from compliance, develops more of a focus on sustainability and æcommunityÆ social responsibility rather than corporate social responsibility. This shift leads to the development of world-class projects that provide sustainable development for people, reduce the incidence of costly delays, and promote good global citizenship for companies. The process of æengagingÆ communities in mining project design and development leads to sustainable development, a stronger license to operate, and a reduction in social and political risk. To create this mutually beneficial relationship between communities and companies, communities must be æengagedÆ in the project development and risk assessment processes as early as possible, preferably during the exploration or the concept phases. How to create this æengagementÆ and manage this risk will be discussed.

Jan 1, 2007

By S B. Martin, M P. Simpson, J L. Mauk

The Martha deposit in Waihi, New Zealand, is a giant adularia-sericite epithermal gold-silver deposit that formed 6.0 to 6.1 Ma, and has produced over 6.4 Moz gold and 39.9 Moz. Fluid inclusion analyses were undertaken on a limited number of vein samples from Martha. The results from this eight week student project are preliminary but agree with previous studies. There is little variation between primary and secondary inclusions and between different vein types, except that homogenisation temperatures of the inclusions in sphalerite grains are on average 20¦ to 30¦C higher than the average quartz vein values. Overall the temperatures of homogenisation ranged from 182¦ to 258¦C and final ice melting temperatures ranged from 0.0¦ to 2.8¦C. Unusual black inclusions were also found associated only with the ginguro bands. Some of these appear to be solid sulphide inclusions but others are not so clear.

Jan 1, 2007

By D J. Alchin

Most of South AfricaÆs high-grade iron ore resources are hosted within a fault-controlled structural basin in rocks of the Palaeoproterozoic Transvaal Supergroup in the Northern Cape Province of South Africa. Iron mineralisation occurs as individual orebodies in fault-bounded basins or as fold-controlled concordant lenses around an unconformity plane above the Kuruman Banded Iron Formation. The Sishen mine near Kathu and the beeshoek mine and Sishen South deposit near Postmasburg lie on the northern and southern border of a major domal structure known as the Maremane dome, respectively. The effects and structural constraints of at least three orogenic compressive episodes and several intermittent extensional episodes on the formation, erosion and preservation of iron mineralisation on the Maremane dome and surrounding environs were investigated. Ventersdorp impactogenal rift basin development at ~2.78 - 2.64 Ga, finalised with the deposition of the volcano-sedimentary Vryburg Formation during the thermal subsidence stage at ~2.64 - 2.6 Ga, and was followed by tectonic quiescence/stability and an extensive marine transgression across the entire Kaapvaal craton. The drowning event led to the formation of a carbonate platform with the deposition of the Schmidtsdrif and Campbellrand subgroups conformably above the Vryburg Formation at ~2.6 - 2.52 Ga. The initiation of distal (to the west of the Kaapvaal craton) off-craton oceanic rifting, causing submarine volcanism and associated hydrothermal activity, led to the deposition of initially manganiferous chert (Wolhaarkop Formation) followed by banded ironstone formations (Manganore Iron/Kuruman Formation) of the Asbestos Hill Subgroup at ~2.52 - 2.46 Ga. Initial passive margin rifting along the N-S oriented western edge of the Kaapvaal craton, initiated at the end of Ghaap Group time (during Koegas Subgroup deposition) at ~2.46 - 2.35 Ga, formed a prominent system of N-S striking, westerly dipping normal faults. Easterly directed crustal compression in post-Ghaap Group time in response to the Kalahari Orogeny (accretion of Rehoboth craton along western edge (Kalahari suture zone) of the Kaapvaal craton at ~2.35 - 2.24 Ma led to the formation of large-scale regional, N-trending F1-folds. Partial to complete inversion of the Koegas passive margin rift system (ie reverse dip-slip reactivation of the N-S striking normal fault system to high-angle reverse faults and dextral strike-slip reactivation of the Ventersdorp rift system developed in the Archaean basement), was followed by uplift, erosion and formation of a regional angular unconformity (Postmasburg unconformity). Uplift was accompanied by deposition of fluvio-glacial sediments of the Makganyene Formation (Lower Postmasburg Group) within an intracratonic peripheral foreland basin setting unconformable above Ghaap Group strata at ~2.35 - 2.24 Ga. Post-orogenic crustal relaxation and rifting caused extensional reactivation of the N-trending Palaeoproterozoic passive margin rift system and NE-trending Neoarchaean Ventersdorp impactogenal rift system, forming a fault-controlled depository for the volcano-sedimentary Upper Postmasburg Group at ~2.24 - 2.1 Ga. Deceleration in rifting was succeeded by thermal subsidence of the Upper Postmasburg Group rift, erosion, formation of a regional angular unconformity and deposition of clastic sediments of the Lower Olifantshoek Supergroup unconformable above Postmasburg Group strata at ~2.1 - 1.93 Ga. Renewed rifting led to the deposition of volcano-sedimentary units of the Upper Olifantshoek Supergroup within a rift system superimposed on the Postmasburg Group rift depository at ~1.93 - 1.83 Ga. Easterly directed crustal compression during the Kheis Orogeny at ~1.83 - 1.73 Ga led to renewed inversion of rift structures of the Postmasburg Group and Olifantshoek Supergroup depository, N-trending F2 folding and thin-skinned thrusting of older rock units eastwards over the cratonic cover, thereby utilising planes of weakness in the strata such as prominent unconformities and lithological contrast boundaries as principal dTcollements. NNW-directed crustal compression in response to Lomanian (Namaqua-Natal) Orogeny at ~1.15 - 1.0 G along the southern margin of the Kaapvaal craton, resulted in minor sinistral strike-slip reactivation of the N-S striking fault system, the formation of extensional NNW-SSE striking fracture/fault zones and the development of ENE-trending F3 folds forming a F2/F3 fold interference pattern. Post-Lomanian tectonic events (eg the Pan-African Orogeny at ~650 - 500 Ma, the Cape Orogeny at ~310 - 240 Ma, and the Gondwana breakup at 205 - 120 Ma), caused only comparatively minor extensional reactivation of the pre-existing fault systems. Iron mineralisation was ultimately preserved from erosion by Kheis Orogeny-related N-trending F2 synclines and Lomanian Orogeny-related ENE-trending F3 synclines, in particular areas of interference between F2 and F3 synclines representing comparatively deep semi-circular trough- like depressions, as well as in half grabens formed adjacent to reactivated westerly dipping N-S normal faults. Support for relating the iron and manganese mineralisation to structurally controlled hydrothermal fluid flow during the Kheis orogenic event has also been found, and ongoing research is aimed at confirming and refining the hydrothermal model for iron ore mineralisation in the Northern Cape.

Jan 1, 2007

By M Rimes

This paper describes a technique to predict achievable head grades and likely variances from target grade for the Shovelanna Iron Ore Project, in the Pilbara region of Western Australia. The block model from which the production schedule is produced was created from a wide spaced drilling program and was classified as an Inferred Resource under the JORC Code. Ideally, production schedules and target grades would be determined using a combination of Proved and Probable reserves. However sometimes it is necessary to consider the requirements of potential off-take parties who have specific grade tolerances. A technique is needed to simulate mining sequences and grade variations early in the planning process, using an æexplorationÆ block model rather than the normal æminingÆ block model. Marketing contracts require examination whether the target grade {Fe, P, SiO2, Al2O3 can be kept constant, or must be revised during the life of the mine. A model (written in ExcelÖ using Visual Basic macros) develops a feasible, close to optimal, mine plan from block model data. Cut-off grades for minable ore are chosen. The model evaluates ore tonnage, grade and stripping ratio against depth. Outputs at this stage include plots of slices through the orebody, at nominated x, y and z coordinates, showing ore grade, waste, drill hole locations and topography. The model then searches for a feasible satisfactory mine plan. The initial grade target is the average for the identified ore blocks. The available block list (ABL) at any time is the set of ore blocks, any one of which can be mined without removing any other ore block. The entire initial ABL has an unacceptably large ætotal grade stressÆ, defined as [(Grade-Target)/Tolerance]2, summed over the four relevant minerals {Fe, P, SiO2, Al2O3}. The model trims the ABL, removing the block most harming the total stress. Trimming is repeated until the total grade stress reduces to an acceptable level. The trimmed ABL defines the first mine campaign. Removing the trimmed block set, a second ABL is exposed, which is again trimmed and mined. The process is automatic: a few seconds computation provides a complete mine plan. Re-running the model with adjusted grade limits quickly shows whether a uniform target can be achieved or whether the target must be modified during the mine life.

Jan 1, 2007

By N Robson, E Stephens

Australian mining companies are actively exploring for and developing mineral deposits throughout the world with interests in emerging markets such as Africa, Asia and South America. It is important to understand emerging market risk as this will affect the willingness of mining companies and financial institutions to invest in a country, especially with reference to their key asset, the mining licence or operating/concession agreement. Mining companies looking to develop new projects in emerging markets have different risk profiles than projects in countries such as Australia and Canada. Examples of key risks faced in emerging markets include: political û expropriation, nationalisation, contract frustration, currency inconvertibility, war, terrorism, strikes, riots and civil commotion; and legal û mining legislation, arbitration and dispute resolution, trade agreements. There is a problem in the difference in risk perceptions between mining companies, financial institutions and insurers. This can cause different stakeholders to carry out different evaluations of the risks faced by a project, resulting in confusion about the risk margin attached to any project. In a time where resource nationalisation and energy security are prompting governments to become more involved in the mining sector we run through some recent examples of mining companies that have had problems due to the key risks highlighted earlier. Importance of carrying out the right due diligence to replace perceptions with reality: early identification of risks û detailed due diligence on emerging market risks that may arise will help with their identification and mitigation, make use of companies that can help identify risks and suggest solutions, control the cost of financing û risk margin applied to a project finance loan will be influenced by the risks faced, and risk management and using political risk insurance. There are plenty of opportunities in emerging markets but it is important to recognise the associated risks. Detailed due diligence at an early stage will provide long-term benefits.

Jan 1, 2007

The aspect ratio (mill diameter/mill length) of autogenous and semi autogenous mills varies widely and can be as high as three or as low as 0.5. The literature on the subject of what effect aspect ratio has on grinding mill performance or energy efficiency is almost non-existent. However, at the design stage of many grinding circuits the subject is often vigorously debated amongst metallurgists. In this paper the performance characteristics of mills with different aspect ratios are examined to determine whether process performance characteristics are a function of aspect ratio and whether high aspect ratio mills are any more or less energy efficient than low aspect ratio units. Data from both pilot and full-scale mills are used for this purpose in open and closed circuit configurations.

Jan 1, 2007

By M-E Boucher

While the haematite concentrates produced in Eastern Canada and the magnetite concentrates that Australia will soon be producing are different feed materials, the pellets they produce have similar physical and metallurgical properties. This paper will examine the similarities and differences in the evolution of pellet microstructure for pellets produced from magnetite and haematite. The molten slag phase generated at high temperatures has a lower melting point when in contact with magnetite compared with haematite due to the higher divalent iron content. The presence of some slag is beneficial for bonding but too much can inhibit oxidation of magnetite, although slag generation at lower temperatures reduces energy usage. In pellets produced from haematite, magnetite is generated artificially from the combustion of the carbon particles added to the pellet feed as a source of energy. Maintaining the optimum production level and mineralogy of such æsecondaryÆ magnetite, allowing for its subsequent reoxidation, is important for the quality of haematite pellets. In both magnetite and haematite pellets, balancing the slag formation and oxidation (re-oxidation for haematite pellets) of the magnetite (secondary magnetite for haematite pellets) is necessary.

Jan 1, 2007

By A Reid

The Late Archaean of South AustraliaÆs Gawler Craton contains significant potential for gold resources. The main targets of interest are migmatised gold style systems of which the Challenger deposit is the best known example. This deposit is one of the lower cost gold producers in Australia due to the high-grade, low-tonnage nature of the mineralisation. Structurally controlled, metamorphosed deposit styles are also possible throughout the Archaean of the Gawler Craton, including occurrences within reactivated shear zones. More typical, lower metamorphic grade orogenic gold styles are also possible within greenstone host sequences identified in the central and southern parts of the Gawler Craton.

Jan 1, 2007

Mill liners provide the wear-resistant surface within grinding mills, they also impart motion to the mill charge, ie the grinding process, by providing the key between the charge and mill shell, and, at the discharge end, they remove the ground contents of the mill. As semi-autogenous grinding (SAG) mills have grown in size the process aspects of liner design and their impact on mill performance have become particularly important. While feedback from practical experience is critical to good mill liner design, increasingly sophisticated computer-based tools are being developed to assist in mill liner design.

Jan 1, 2007

By I J. Holland

Located in North West Queensland, XstrataÆs Mount Isa Copper Operations (MICO) is one of the largest underground mines in Australia with annual production exceeding six million tonnes of ore with average copper grades of three per cent. As at 30 June 2006, the Ore Reserve inventory totalled 87 Mt, with annual diamond drilling planned at >40 000 m in order to convert existing resources and test and define exploration targets. The role of the geology department within MICO is to collect, interpret and communicate relevant geological information to ensure the optimal extraction of ore. Routine underground inspections across multiple ore sources are undertaken and the information derived is then distributed to a range of professionals, operational personnel and management. The information is a æreal-timeÆ geological view for the stakeholders. Ongoing data collection and interpretation has developed a strong geological input to all mine planning processes within MICO. This has created strong synergies between mine planning professionals and a throughput benefit has been seen all the way to the concentrator. The MICO geological framework also provides avenues for a geological focus away from short-term production requirements, and as a result significant orebody scale observations and patterns have been realised that have led to an increase in the accuracy of geological and resource models. This has provided practical benefits for short-term scheduling and production, whilst enabling the realisation of long-term benefits that have a strong potential to increase the volume and value of the MICO resource. This paper will discuss the various mine geology contributions at MICO and illustrate some examples where mine geological input from graduate level has added significant value to the MICO business.

Jan 1, 2007

Geostatistical conditional simulation is a method to assess variability and risk in mineral deposits and the tool has wide potential applications in the iron ore industry. Correct reproduction of multivariate relationships is important in iron ore simulation, especially between Fe and impurities such as Al2O3, SiO2 and P. The turning bands simulation method, using a full model of coregionalisation for multiple attributes, is the main multivariate conditional simulation algorithm used in the Western Australian iron ore industry. This paper discusses the results of a more recent approach using minimum/maximum autocorrelation factors (MAF) to transform and decorrelate the multivariate data prior to independent sequential Gaussian simulation (SGS). MAF-SGS results are compared to those of the turning bands approach in the Yandicoogina channel iron ore deposit (CID), and both methods performed well in simulating Fe, SiO2, Al2O3 and P distributions. Extensive checking of simulations showed that both approaches could reproduce multivariate statistics and spatial continuity of the original conditioning data. Both approaches reproduced the histograms and variography of input sample composites. While the MAF-SGS approach requires additional transformations when compared with the single normal scores transformation required for the turning bands method, MAF requires only that the direct semivariograms be modelled. In contrast, using turning bands with multiple attributes requires modelling a full linear model of coregionalisation, which can be difficult to model because of the need to ensure the model is positive semi-definite. Turning bands may be preferred if there are a modest number of correlated variables allowing construction of a linear model of coregionalisation that adequately models the multivariate behaviour. MAF-SGS is preferable for larger numbers of correlated variables. Both MAF-SGS and turning bands methods performed well in conditional simulation of correlated variables at Yandicoogina.

Jan 1, 2007

By S M. Arndt, D Tyler, F Reusch

Although significant advances have been made in understanding the mechanics of pit slopes, numerical modelling hasnÆt significantly impacted on the reliability of the design process. It is well known that legacy modelling approaches donÆt simulate large slopes well. In recent times, the emergence of very large finite element (FE) models with more than ten million degrees of freedom and the ability to simulate a large number of discrete structures, has allowed a step change in the simulation precision for slopes. The model size allows global and local effects to be realistically simulated in one model for the first time and the process can be better integrated into normal open pit slope engineering processes. Some examples of simulation of very large open pits are shown that demonstrate the challenges and some recent advances in modelling large slope behaviour. Significant limitations in the current measurement and observation regimes of open pits have been identified.

Jan 1, 2007

By R M. Briggs, I E. Smith, P M. Black, A B, R L. Brathwaite, J L. Mauk

The Hauraki Volcanic Region of the North Island developed between 18 and 1.9 Ma. Initial andesitic volcanism from 18 to 12 Ma was followed by 12 to 1.9 Ma volcanic activity that included rhyolitic, dacitic, andesitic, and basaltic compositions, with a gradual migration of activity to the SSE. Early andesitic volcanism evolved over the course of 8 m.y. to more silicic compositions; this trend was reset and repeated by post-10 Ma andesitic volcanism. Early and later andesites are otherwise remarkably similar in trace element composition. Rhyolites have the most diverse compositions, suggesting a major role for crustal input in their formation.

Jan 1, 2007

By M Bilodeau, G Caro, R Beaudoin, D Labrie

In 2005, Dyno Nobel Canada Inc, DynoConsult and CANMET-MMSL used their pool of expertise in blasting, ground control, open pit and underground mining, mineral processing, information technology and applied mineralogy to launch a research project aimed at evaluating the role of electronic detonators in the development of a sustainable energy-efficient rock reduction process. The overall objectives were to improve health and safety in a mining environment and reduce energy consumption and greenhouse gas (GHG) production in the Canadian mining industry. The study was conducted in a quarry located in Nova Scotia, Canada, with the objective of taking advantage of the higher accuracy and flexibility of electronic detonators towards improving blast efficiency and measuring its impact on productivity in a quarry environment and energy savings. Optimising the blast sequence was the first aspect to be considered before starting to look at designing bigger blasts and achieving productivity improvements, without creating additional environmental concerns, as the quarryÆs location was representing a challenge in itself in the surrounding community. The use of high-speed cameras (500 fps) was an improved means of analysing blast dynamics during the firing sequence. Seismic monitoring and linear superposition techniques were also applied to validate the sequences to be tested in all three specific geological areas. The combination of field measurements allowed to identify the optimal blasting sequences that would then be delivered accurately with the electronic initiation systems. The data from 12 blasts (six with electronic detonators and six with pyrotechnic detonators) carried out in three different geological formations (soft, medium and hard rock) showed that the electronic blasting technology could increase rock fragmentation by 15 to 20 per cent. A more uniform distribution of rock fragment size was also obtained. Blast improvements on downstream processes resulted in a five per cent productivity increase in rock excavation and transportation, a ten per cent energy reduction in primary crushing and a 15 per cent increase in the primary crusher throughput. A prototype soft-sensor based on primary crusher data (eg energy consumption, throughput, feed and product size distribution) and a simplified computer process model were developed for online measurement of a rock operating work index. Furthermore, rock samples were collected and specimens were prepared in order to determine the tensile and compressive strength of the rock materials, evaluate the aggregate crushing work index and examine the development of micro and macro-fractures under binocular and scanning electron microscopy (SEM). Blast-induced rock damage was evaluated at the end of the laboratory testing program. A reduction in rock hardness by about 30 per cent was observed after blasting. However, the impact of the blasting method (eg using electronic versus pyrotechnic detonators) on the induced rock damage was either absent or not perceptible within the measurement technique accuracy and the number of samples analysed.

Jan 1, 2007

By K Kinnunen

A strong correlation between the reduction degradation index (RDI) of production sinter and the titanium content of the sinter mix was identified at the Ruukki sintering plant between 2000 and 2004. The titanium distribution in different mineral phases was studied using samples from pot sintering tests. Titanium additions were made using two different materials: rutile and crushed titanium-bearing haematite pellets. While both titanium additions clearly increased the RDI, titanium seemed to favour secondary haematite. The study focused on the effect of titanium in haematite, because haematite is reduced to magnetite in the RDI test. During the haematite-magnetite reduction, reduction degradation was observed. To increase accuracy, the phenomenon was investigated first by sintering and then reducing synthetic minerals under controlled laboratory conditions at the University of Oulu. The effect of titanium oxide in solid solution in magnetite on the magnetite to haematite transformation rate was studied first in order to simulate the final stage of the sintering process. In other experiments, haematite samples doped with 0.5, 2.0 and 5.0 wt per cent titanium oxide were studied using thermogravimetry under a controlled gas atmosphere (CO/CO2/H2/N2). Sintered samples were reduced using the same gas composition as in the RDI test. Polished sections for optical microscopy and SEM-EDS analysis were prepared from both reduced and oxidised samples and unreduced sintered samples. The titanium oxide content of haematite had a clear effect on reduction degradation of the samples. Furthermore, increasing titanium oxide content in solid solution in magnetite radically accelerated the oxidation rate. Similar observations regarding the effects of titanium have been reported earlier, but this was the first time the effect of very small additions of titanium were shown to deteriorate blast furnace burden quality and a reason suggested behind the process.

Jan 1, 2007

By A J. Broome

Since 2003, there has been an unprecedented growth in the demand for engineering, technical and project services in the mineral industries. This demand for services became evident in Australia earlier than many other markets and has since spread globally. This growth has created significant issues for the strategic direction and planning by the service provider. Such strategic questions include:- how fast to grow, how to recruit, train and integrate new staff, what market sectors to service, the selection of targeted customer sectors and managing strategic growth with short term demands and commercial reality. These factors are discussed using in depth experiences and examples that illustrate these strategic approaches. The relevance of this new industry environment to New Zealand services will be highly discussed.

Jan 1, 2007

Project managers must juggle many aspects to bring their project in on time, on budget, and in accordance with the aims of the project owner. Whether the project is a mining feasibility study, a technology implementation or a construction project, it falls to the project manager and his or her team to deal with risk from two standpoints, which may be at odds with one another. First, a project team must deal with risks to the project itself û that is, risks to on-time, on-spec and on-budget delivery against the value promise made to the customer. Second, there is the management of risks within the subject matter of the project, undertaken on behalf of the customer. The project manager cannot dodge this responsibility; yet there is a tendency (particularly in smaller, in-house studies) to avoid digging too deep, possibly for fear of what may be uncovered! This paper investigates the responsibilities of project teams in regard to risk management and reporting. It examines ownership of project risk; the nature of risk management activities undertaken by the team during the course of a project; and outlines some controls to ensure that the two opposing arms of project risk are reconciled for the benefit of both the project team and the project owner.

Jan 1, 2007