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By R Wolff

One critical factor in open pit mining projects is the estimation of the recoverable reserves. The reason for this is that at the valuation stage there is a lack of information about future metal prices and production costs. Consequently, the estimation of the recoverable reserves needs to be done based on a fixed break-even cut-off grade (BECG), in which fixed expected metal prices and production costs are assumed throughout the operating life of the mine (OLM). In this paper, an alternative technique for estimating the recoverable reserves of an open pit mining project is presented and explained in detail. The main characteristic of this technique is that it estimates the recoverable reserves of the project using mining costs as reference: this is done due to the fact that mining costs are easier to model than metal prices. Another important characteristic of this technique is that it uses the uncertainty of the geology of the orebody, given by simulations of the deposit, to make final strategic decisions, such as the selection of the operating life of the mine and the optimal production rate, which minimise the risk of not achieving future production targets while maximising the upside potential of future rewards. As it will be shown, the final outcome of the proposed technique is the generation of a robust open pit design, that include cutbacks and ultimate pit limits, called the marginal open pit mine design (MOPMD). One characteristic of the MOPMD is that, at each production period, it will be characterised by their respective geological uncertainty, given as probability distributions of ore, waste and metal quantities, and by marginal economical project indicators, such as cut-off grades and metal prices, among others. The details follow in the paper.

Jan 1, 2006

Successfully managing project development and construction has often been a challenge in the mining industry. This is reflected in the number of projects that have taken longer to build, exceeded their budgets and then struggled to achieve the performance targets so confidently predicted beforehand. This paper outlines the fundamental elements of project management necessary to deliver mining projects on time and on budget, and performing as originally intended. It looks at areas such as the study process, project planning, team selection and structure, project controls, types of contracts used and approaches to contract management.

Jan 1, 2006

By J Meikle

A projected image is not always a true representation of a situation, or indeed an industry. This is often the case of the mining and minerals industry, which has frequently been portrayed in a negative light with a male dominance stigma attached. However, these issues can be combated for both the industry and its future, current undergraduate students, through undergraduate industry experience. In particular, vacation work enables female students to dispel many myths surrounding the industry and realise that the mining and minerals field offers career development for both genders. This paper will discuss how vacation work enables students to make important career decisions even before they have graduated. Industry experience provides undergraduates with the opportunity to gain practical knowledge relevant to their field of study. Additionally it allows students to observe the nature of the industry and the sacrifices necessary to advance careers. The prior insights into an industry are relevant to all students, but particularly female students, who might otherwise be dissuaded from a career in mining. This paper is written from the perspective of two female undergraduate students studying Mining and Minerals Processing Engineering.

Jan 1, 2006

Gold mining in Waihi spans three centuries and five generations. Following the discovery of gold in 1878 the Martha Mine was developed and the town of Waihi grew up around it. Now, five generations later, descendents of many of the original settler families continue to live and work in Waihi. Many have returned to mining, in jobs far removed from those of their parents or grandparents.   Members of three local families were interviewed on video. This paper is a summary of some of the major themes and gives some insight into the role gold mining played in the development of the region and its continued its importance today.

Jan 1, 2006

By J R. Goff, R Carver, D S. Sheppard

The REGCHEM (Regional Exploration Geochemistry) stream sediment geochemistry database of open file mining company data, managed by GNS Science, was recently made accessible via the internet (http://maps.gns.cri.nz/website/minmap/). REGCHEM provides coverage of selected elements in mineral rich areas of New Zealand. Analysis of REGCHEM data highlights problems with inconsistencies between different surveys in terms of sampling methods, number and types of elements analysed, analytical techniques and detection limits. New, consistent multi-element geochemical surveys with national coverage are required. To test sampling, analytical and data treatment techniques for the new surveys, a pilot stream sediment geochemical survey was carried out in the Thames area, Hauraki Goldfield. Seventy samples were collected in an area of 220 km2 representing about one sample every 3 km2. The samples were analysed for 50 elements, mostly by XRF.   Regional patterns are apparent in the concentrations of some elements. Several elements, such as As, Cd, Cu, K, Pb, Sb, Se, and Zn exhibit anomalous concentrations mainly in the western part of the study area, related to Au-Ag-Zn-Pb-Cu epithermal quartz veins and porphyry Cu occurrences in hydrothermally altered andesitic terrane.   Mercury is anomalous in southern samples, reflecting cinnabar occurrences in the Kauaeranga valley (eg Mangakirikiri), and the occurrence of cinnabar as a late stage mineral in some of the Thames epithermal veins. Ba and U are anomalous in the eastern samples, and these anomalies are probably related to the presence of rhyolitic rocks in the eastern part of the project area.

Jan 1, 2006

By D Brereton, C J. Moran

In this era of rising focus on the social and environmental costs and benefits of mining operations, the valuation methodologies used to assess such impacts become increasingly important. Within an industry dominated by an engineering culture that places emphasis on net present value (NPV) calculations using high discount rates, difficulties often arise when attempting to justify projects with longer-term, harder to quantify benefits. This is particularly so when these benefits fall in the social and environmental domains and involve other stakeholders. In this paper, we summarise the results of a recent literature review on this subject, which focused on the valuation of æBeyond ComplianceÆ initiatives in the mining sector. We discuss a range of approaches including the quantification of hidden internal costs, financial methods of incorporating risk into calculations, the integration of quantitative and qualitative information, and also the valuation of æexternalitiesÆ or costs and benefits borne by others. We then use a series of examples relating to the management of water in the minerals industry to illustrate how some of these approaches could be applied. There are high-level commitments from both individual companies and groups such as the ICMM to incorporate sustainable development criteria into decision-making processes within the industry. We conclude the paper by arguing that, to meet these commitments, there is a need for the industry to adopt a broader range of valuation methodologies than appears to be the case at present.

Jan 1, 2006

By T Roache, K Yang, M Quigley, C Young

In late 2004 a large-scale evaluation of a new suite of tools for semi-automated core logging was carried out in the Eastern Goldfields of Western Australia. Known as HyLoggingÖ Systems, these combine rapid hyperspectral mapping of mineralogy and very high resolution digital imaging of cores and chips in their original containers. The resulting data is very information-rich and provides information about host rock, alteration and regolith mineralogy. This, in turn, can be used to test geological models about fluid/rock interactions, ore system architecture, ore feed characterisation and generally improve the objectivity of the normally manual and variable logging process. Results were obtained from the Kanowna Belle and St Ives gold deposits in the Kalgoorlie region, as well as numerous holes from across Western Australia stored in the Kalgoorlie Core Library. At the Kanowna Belle gold deposit critical spatial trends in the proportions of white mica, the chemistry and species of those micas, the presence of selected carbonate species and the absence of chlorite proximal to ore zones have all contributed to improved ore deposit understanding. Significantly many of these trends are not discernible to the naked eye, nor easily quantified, previously, across many thousands of metres of core from separate drill holes. At St Ives, the HyLoggerÖ was able to show that low-Al (phengite) and high-Al (paragonite to muscovite) white micas are spatially associated with D3 foliation zones that are proximal and distal to Au mineralisation, respectively. D3 foliation zones are also associated with the depletion of metamorphic chlorite and amphibole, and their replacement with biotite, relative to unaltered mafic host-rocks. The HyLogged GSWA drill holes yielded mineralogical characterisation of classic deposits, including Kambalda (Ni), Fimiston (Au), Teutonic Bore (Cu, Zn, Ag), Black Swan (Ni) and Hannans (Au), illustrating a wide variety of mineralogical trends due to both host lithologies, previously unrecorded lithological subdivisions, and alteration patterns. During 2005 a unique thermal infrared HyLogger was developed to map the important remaining silicates, such as feldspars, quartz, olivines, pyroxenes and garnets. This was successfully tested on a 9000 m subset of the same cores as the earlier study. Interpretation has focused, in particular, on silicification, albitisation, and the mineralogy of several high-grade, less hydrous deposits.

Jan 1, 2006

The emerging coal seam gas (CSG) industry has the potential to provide a large-scale energy province for Queensland. Aquifer impacts and management of associated by-product water, both in terms of quantity and quality, are pivotal considerations for the development of a sustainable CSG industry.Legislative changes have been introduced to ensure that the CSG industry manages potential groundwater impacts and beneficial reuse of the by-product water to a level acceptable to both government and the community.The relevant new pieces of legislation covering petroleum and coal seam gas activities include the Petroleum and Gas (Production and Safety) Act 2004 (P&G Act), Petroleum and Other Legislation Amendment Act 2004 (POLA Act), the Petroleum and Gas (Production and Safety) Regulation 2004 and the Petroleum Regulation 2004. Other relevant legislation includes the Petroleum Act 1923 (Petroleum Act) and Part 7AA of the Mineral Resources Act 1989 (Coal Seam Gas Regime). The P&G Act introduces a full regime for managing water rights. This includes provisions for monitoring and reporting on the effects that the taking of underground water under petroleum tenure has on other bores in the area. The P&G Act also imposes a æmake good obligationÆ on petroleum tenure holders, which requires the restoration of bores affected by the taking of water or the payment of compensation. These provisions represent a significant departure from the Petroleum Act, which says very little about water rights and does not specify restrictions on the taking of water under petroleum tenure. This paper attempts to outline the requirements and obligations of the P&G Act for the CSG industry in terms of underground water rights, development impact assessments, aquifer trigger thresholds, monitoring and reporting requirements, as well as the make good obligations.

Jan 1, 2006

LKAB operates two underground mines in Kiruna and Malmberget, Sweden. Blast furnace pellet is the main product and makes up 70 per cent of total production. The orebodies are hosted by 1910 - 1860 Ma old volcanic rocks. The host rocks and the ores were affected by the Svecokarelian orogeny for 1890 - 1860 Ma ago. The deposit belongs to the Kiruna type apatite-rich iron ore. Magnetite is the main ore mineral but haematite is the dominant ore mineral in some orebodies in the western part of the deposit. Large-scale sublevel caving is the dominant mining method. Three main haulage levels are in operation at present. The ore boundaries and quality can be detected by geophysical logging resulting in reduced waste dilution and subsequent grade reduction. The susceptibility measurements have been used in the magnetite ore since 1991 and gamma-gamma measurements in the haematite ore since 1998. The mining scale has increased during the last 20 years but diamond drilling has remained at approximately 18 000 drilling metres per year. Uncertainties in the ore constructions can lead to unexpected cost increases, ore loss and dilution. The ore boundaries are evaluated with percussion drill holes using in-hole geophysics to achieve satisfactory geological knowledge. The probes are calibrated in all currently mined orebodies. The correlation between core sample assays and measured susceptibility and gamma-gamma values is strong. The cost to determine the ore boundary by percussion drilling with in-hole geophysics is two-thirds lower, and productivity is six times higher compared to diamond drilling. The measurements are made by geotechnicians and the interpretations by a geologist. The results are transferred to a database and presented three dimensionally as holes with iron grade intervals on mine maps. The interpreted holes are used by the geologist in various ways in the geological modelling. Layout planning uses the measurements as a tool to place the drifts at the correct distance from the ore contact especially in the longitudinal sublevel caving and the production hole planning to optimise the final length of the cross-cuts and drifts for best ore recovery.

Jan 1, 2006

Gold was discovered at Waihi in 1878. In 1987 the modern Martha Mine opened in the middle of the town of Waihi. Newmont Waihi Gold as the current licence holder has been operating the mine since 2000. The current open pit was scheduled to stop production in mid 2006. An underground mine is currently being developed to the east of the town.   In 2001 serious subsidence issues from historical underground mine workings outside the mining licence and the forecast closure of the open pit acted as a catalyst for the development of new communication initiatives.   In this context Newmont Waihi Gold and the Hauraki District Council initiated a community consultation process with the people of Waihi. The Waihi Community Consultation Committee (WCCC) was established in May 2003. After an initial brief to act as a forum for community participation in closure and rehabilitation of the Martha Mine, the group quickly took on a much more proactive role working towards the long-term social, environmental, cultural, economic and spiritual sustainability of Waihi.   In the course of over three years of meetings all groups represented on the committee have presented their views, developed ideas and established an organisational structure to bring those ideas to fruition. The challenge now is to work together to consolidate likely options, seek sources of funding, produce business proposals and implement the plan for the future of Waihi.   This paper backgrounds the experience to date and describes the outcomes of the process. For more detail on process considerations this paper should be read in conjunction with Part C by process facilitators, T Clark and S Stewart. For more detail on progress towards the groupÆs goals and future possibilities, this paper should be read in conjunction with Part B by Vision Waihi Trust CEO, E Morrow.

Jan 1, 2006

Pike River Coal Limited is in the process of developing the Pike River Coal Mine in the Paparoa Ranges of New ZealandÆs South Island. The mine will be developed to extract a coking coal deposit of the Brunner Seam, some 46 km north-east of Greymouth, using a combination of continuous miners and hydraulic extraction. The mining area is located within Department of Conservation (DOC) land and is adjacent to the escarpment of the Paparoa Range and the Paparoa National Park.   As such, the major restriction to planned extraction is protection of: +        the western escarpment, +        vertical and sub-vertical rock faces, +        permanent water courses, +        significant vegetation, and +        steep slopes.   The mine will use its elevation advantage to hydraulically flume coal from the working faces to the pit bottom area where it will be slurried to approximately 35 per cent density of solids and pumps down a slurry line to the coal prep plant some 10.5 km down the Pike River Valley. The coal will be sold on the export market as a high quality coking coal for international steel making.

Jan 1, 2006

By C Woodfull, S Munroe

Geological uncertainty is reduced by improved understanding of the relationship between regional-scale geological basement features (structure, composition, depth) and known local structural risk (such as recognised structural hazards at the mine). Coal mining and exploration entities can be more efficient and effective in managing geological risk at a range of scales. A more efficient and effective performance in forward interpreting and managing geological risk will result in a more efficient and effective exploration and also incremental or even significant mining cost improvements. In order to improve the understanding of basement features, a new 4D regional structural/basin framework for the Sydney Basin and the eastern part of the Gunnedah Basin has been constructed to provide primarily coal exploration and mining with a more integrated geological framework for ongoing subregional to mine-scale geological risk based studies. The model has been developed from a range of available regional geophysical and geological datasets, of variable detail and reliability, which have been brought together to generate a more robust structural and tectonic model than could be generated with any one single dataset. An initial regional structural model for the Sydney Basin was constructed in 2003 and an update to the model was released in 2005 (SRK Consulting, 2003; 2005). The development and ongoing refinement of the model was undertaken with financial and data support from a number of coal mining industry, gas exploration and government organisations. Prior to, and following the development of the regional structural/basin model and associated Information Base, a number of more area-specific studies have been completed, using the æbasement upÆ assessment approach. The methodology for developing comprehensive structural models, from the basement up, is outlined. The approach can be applied at a country-wide, regional or lease area scale. Case examples of where this approach has been used as an effective and efficient method in improving geological certainty and as a predictive tool to help manage geological risk are also presented.

Jan 1, 2006

As the surrounding environment continues to change and evolve, mine managers face a changing climate of expectations. TodayÆs mine managers must juggle competing pressures to deliver sound social, environmental and economic results. Leadership is a fundamental tool for the effective mine manager. Whilst mine managers require solid technical and operational skills, importantly the manager must be able to engage a workforce, build and retain employees and seize opportunity for growth and development when presented. An important tool for engaging employees in the business at Rio Tinto Aluminium is the business improvement programme. At Rio Tinto AluminiumÆs Weipa mine, the business improvement methodology Six Sigma is used to deliver measurable, sustainable outcomes for the business. The next step in Rio Tinto AluminiumÆs improvement journey is to implement Lean Manufacturing at all managed operations. The operating environment for mine managers continuously evolves and effective mine managers must be flexible and adaptive to meet challenges. Governance and regulation constantly change in an environment of commodity cycles and finite resources. This increases pressure on the economic return achieved by the operation. As such, effective mine managers must be aware of and manage the operating environment û the broader, issues-based environment not just the immediate day-to-day responsibility of mine managing. This includes delivering on safety, community and environmental priorities. At Rio Tinto Aluminium, part of managing the business is via investment in the area of social partnerships to engage employees and the broader community in Rio Tinto AluminiumÆs commitment to sustainability. The Future Reef partnership entered with the Great Barrier Reef Research Foundation in 2005 forms an important part of Rio Tinto AluminiumÆs climate change strategy. This four-year, A$1 million investment funds programmes looking at the effect of ocean acidification on the Great Barrier Reef. The partnership is a unique example of industry and science working together on an area of mutual and national concern. Modern mine managers require a broad set of skills to effectively deliver outcomes. TodayÆs mine managers must make innovative and courageous responses to determine todayÆs strategy for tomorrowÆs future.

Jan 1, 2006

WaihiÆs Cornish Pumphouse is located on the edge of town in a dynamic and changeable area where history affects the future. As in any successful project, ingenuity and team work have been significant factors in the planning and implementation of the buildingÆs relocation.   Work around the Pumphouse site commenced circa 1900 with preparation to sink the No 5 shaft. Construction of the pumphouse and the steam driven C pump was completed by 1904 with hints of what was to come evident in 1905 as the No5 Shaft collar had sunk 350mm in four years. By 1907 surface cracking developed over the Milking Cow cave area and in 1913 200 mm was cut off the main pumping rod as the ground was sinking at a rate of 25 mm per year.   In 1913 ground around No 6 shaft had subsided 600 mm.It was also the end of an era as steam gave way to hydroelectricity and electric pumps replaced the C Pump. C Pump was maintained as a backup from 1913 to 1929 and then finally scrapped. 25 years of underground caving operations removed approximately 400 000 cubic metres of ore leaving a 7 ha collapse crater that eventually became known as the mine lake.   On the edge of town a tension zone over the Royal Lode began to develop 50 m diameter chimney collapses as large scale blocks relaxed into unfilled stopes in the old Martha underground mine. After the 1999 collapse part of the main street was closed and after the 2001 collapse Hazard Zones were declared, more streets closed and areas evacuated and retired from residential use.   By 1984 the Pumphouse has approximately one degree of tilt and in 2002 tilt on the Pumphouse accelerated briefly and then settled down. Tilt accelerated again late in 2004 and a scoping study was initiated to define protection options for the pumphouse. The Martha Mining Licence requires Newmont to 'Take whatever precautions are necessary to protect the old Cornish Pumphouse adjacent to No5 shaft' and viable solutions needed to found.   Any work on the Pumphouse comes standard with a wide range of stakeholders, governing agencies and legal framework to consider. Land Information New Zealand (LINZ) is owner and administrator of the pumphouse.

Jan 1, 2006

By P T. Stoker, A Allman, D P. Carville

Classification of mineral resource estimates is one of the most important responsibilities of the Competent Person. In recent years, classification decisions have been driven more by the detailed block-by-block attributes generated by the now widely applied geostatistical estimation methods, and less by a general geological overview. This is increasingly resulting in æspotted dogÆ outputs, in which blocks of Inferred Resources or unclassified material separate blocks of Measured and/or Indicated Resources, or individual drill holes are surrounded by annuli of Measured and Indicated Resource blocks. Not only are such outputs potentially misleading, since they ignore fundamentals such as continuity of geology and mineralisation between drill holes and the imprecise nature of resource estimation, they can also cause substantial problems for engineers undertaking mine designs and estimating ore reserves, particularly for underground mines. Competent Persons for mineral resources must keep in mind the purpose of their work, and should use their experience and judgement to avoid or smooth out æspotted dogÆ classifications, providing a result commensurate with the level of geological and resource estimation confidence. For their part, ore reserve Competent Persons must understand the resource estimation and classification process, and should question resource classifications that are not consistent with the level of geological and resource estimation confidence.

Jan 1, 2006

As a result of cheap Maui gas and plentiful hydro-electricity, over the past few decades New Zealand has enjoyed some of the cheapest energy of any OECD country. The situation is changing; at best we are facing some radical changes in energy use, at worst we are facing a crisis resulting from the following:   Cause 1: Maui gas will be exhausted by 2012. Distorted pricing and supply contracts; resulted in Huntly Power Station, a coal mine mouth generator running on 70 per cent Maui gas until very recently!   Cause 2: Investment in new generating capacity (and transmission) is woefully inadequate; as a result hydro lake levels are being continually pushed to the limits.   Cause 3: Distorted thinking is everywhere, for example; æWe will find more cheap gasÆ. æGas is clean û coal is dirtyÆ. Hot air  û ægreen alternatives such as wind generation will save usÆ. æNo NuclearÆ. The outcomes of the distorted thinking will be price increases, then shortages (there is nothing like "black-outs" to focus national thinking) and finally recession.   But what can NZ do? - Mine Coal. Coal jump-started the industrial revolution, it can provide the transition to post-gas and oil. NZ has the second highest reserves of coal per capita in the world, yet we use less that any other country with significant coal reserves. Our exports of our best coal have increased threefold, yet out own consumption has remained static at about 1-1.5 Mtpa for the last 30 years. Our coal is NZ owned and inexpensive relative to other energy sources, even allowing for infrastructure and environmental costs.   What can we do? We as mining professionals can promote informed responsible development and investment in the country's mining and energy business. We can galvanise public opinion on issues such as æunbundlingÆ our entire energy chain from mine-to generator-through transmission, even if the nuclear issue has to wait! With oil above US$70/bbl substitution is feasible. For individuals, there is always solar!

Jan 1, 2006

Ventilation challenges are often encountered when an underground mine expands to new zones and it often is the case to make a thorough review of the existing system and assess immediate and future airflow needs at the desired quantity and quality. An unexpected mine plan change that calls for increased development and production from new areas can impose a strain on the existing ventilation system. Budgetary constraints can also demand creativity in design on the mine ventilation engineerÆs part. Since the addition of several mining horizons it had become obvious at the Meikle mine that something had to be done to increase airflow quantity and quality in the old main zones because most of the ventilation resources had been channelled for development in the new mining horizons. An airflow assessment of the existing system had to be performed and it was determined that the airflow quantity had to be increased by at least 30 per cent and the quality of the air had to be improved by reducing nuisance and respirable dust and at the same time reducing the airflow temperature before it was used in a few mining zones. At the conclusion of the airflow assessment it was determined that a third centrifugal fan would be installed on a new 3.05 m diameter borehole from surface to underground. By a careful study of temperature conditions over time it was determined that an evaporative cooling spray chamber would be sufficient to cool the airflow down from the high dry bulb temperatures observed down to saturation at the wet bulb temperature. At the same time excessive nuisance dust generated as a result of the airflow travelling a long way in a haulage drift will be knocked down in the spray chamber resulting in cool, clean air in the mining districts. Expansion of the existing surface ammonia refrigeration plant was out of the question for several reasons. The fact that the airflow was hot and dry meant that evaporative cooling spray chambers could achieve lower working temperatures at a very low cost compared to the expansion of the chilled water plant. The expansion of the ventilation system at Meikle mine and the use of evaporative cooling spray chambers were demonstrated to be very successful and the information presented in this paper can be of benefit to other mines experiencing the same ventilation problems as was the case at the Meikle mine.

Jan 1, 2005

By R Moller

Reconciliation at large iron ore operations is a complex and time- consuming process. Often the volume of data and the large range of different stakeholders makes the process almost impossible. Up until recently geologists and engineers at these operations would spend hours cutting and pasting data in and out of monster spreadsheets, diligently comparing how resource/reserve models, grade control and survey pick-ups compare to what was actually produced. In 2003 the Sishen Iron Ore Mine in South Africa broke this cycle by implementing SnowdenÆs Reconcilor software. The implementation of a dedicated reconciliation system required a number of existing practices to be changed, with the involvement of stakeholders right across the mine. Data sources had to be clarified and validated, terminology had to be standardised, processes needed to be documented and some methodologies needed to be updated. This was a task that required significant effort by Kumba personnel so that the system could be successfully implemented. This paper provides a case study of the reconciliation system implementation at Sishen. It is a story of an operation that evolved from using a number of fragmented reconciliation processes to using a unified automated system. This paper outlines the key estimates and measurements that are used for reconciliation, details the characteristics of an automated web-based information management system to facilitate the process and provides some insights about the benefits that have been gained though the use of a rigorous reconciliation process.

Jan 1, 2005

In the UK during the 1990s the energy companies had developed a policy of æDash for GasÆ, building large natural gas power stations to produce more than 30 per cent of the UKÆs electricity demand. The price of imported thermal coal was dropping and the electricity generators were putting pressure on the UK coal producers to produce coal at a reduced cost. Imported coal from Columbia, South Africa, America and Australasia had increased their market share in thermal coal sales to over 50 per cent of a 55 Mtpa market. The pressure on the UK coal industry to reduce costs and improve productivity levels from an ever decreasing resource was high. Companies were benchmarking their operations on the imported coal producers and had to realign their organisations, productivity levels and costs to world best practice, not just technically, but in world class organisational management techniques.

Jan 1, 2005

A major new mine to be developed at Pike River during 2005 has been designed to have a minimal impact upon the environment, and an overall net conservation gain. The Pike River Coalfield is located on the West Coast of the South Island of New Zealand on the top of the Paparoa Range approximately 46 km north east of the coastal town of Greymouth. Pike River Coal Company Ltd (PRCC) holds a 40 year mining permit over the coalfield.   In October 2004, the Minister of Conservation granted PRCC access through 1.25 km of Department of Conservation land via an access agreement, and the Environment Court issued a number of consents for the development and operation of the mine, in addition to some existing consents.   The underground mine at Pike River is located under land administered by Department of Conservation, and has been designed to avoid or mitigate adverse environmental effects and integrate into the natural bush surroundings. The mine process has been designed to operate within an environmentally sensitive area and will incorporate technologically advanced methods of mining and processing. The mine process involves hydro mining of the coal, and transportation via a 12 km coal water slurry pipeline, to a dewatering complex located on PRCC land. This will ensure that traffic in the Pike River Catchment up to the mine is minimised.   An extensive series of management plans and monitoring programmes will be used to ensure that the environmental effects of the mine activities are minimised, by evaluating the performance of managerial procedures, and physical mechanisms in place to avoid or mitigate the effects. Trial mining and substance management plans in conjunction with an orthophoto and surface monitoring protocol will ensure that surface features, and water ways are protected from any adverse effects. The Blue Duck enhancement, and pest and predator control programme will help ensure that an overall net conservation gain is achieved.   Developing transparent working relationships and good communication with Department of Conservation, Iwi (Ngati Waewae and Ngai Tahu), and local environment groups has been and remains very important in the development of this project.

Jan 1, 2005