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This paper examines some of the important aspects of mineral taxation policies and practices, with reference to the mining tax regimes of selected Pacific Rim countries (see Tables 1 and 2). The following subjects are addressed:what is æmineral taxationÆ?, basis for mineral taxation, types of mineral taxes, objectives of the mineral taxation regime, best practices, and mineral royalties. Many countries, in some cases with the encouragement and assistance of international funding agencies, are actively assessing the international competitiveness of their mining tax regimes with a view to attracting investment. However, these countries recognise that the mining tax regime is not the only consideration that is taken into account by prospective investors. The countryÆs geological prospectivity, physical infrastructure, labour force, political risk, and regulatory system are also important factors in the investment decision making process. Although it is probably true that an attractive mining tax regime will not necessarily attract mineral investment, there is a real possibility that an unattractive regime can drive away investment. For example, Hugo Dummett, general manager for discovery at BHP, hinted recently that BHP could cease exploration in Russia in the absence of positive tax changes. Dummett is reported as saying that if taxes æend up being as onerous as they are now, we really have to rethink why we are hereÆ (Mining Journal, London, November 27, 1998).

Jan 1, 1999

By G Burton, S Fityus, J Li, S Vaughan, D Payne

Daunia and Caval Ridge coal mines, owned and operated by BHP, have been co-disposing rejects and dewatered tailings within spoil dumps from the beginning of their operations in 2013 and 2014, with the purpose of minimising environmental impact and geotechnical risk. Following the recent large failures of tailings dams around the world, BHP Coal, through its Coal Tailings Program, plans to transition other coal mines to deliver “dry” tailings and produce mixed plant rejects (MPR) for inpit co-disposal. This will materially reduce future tailings dam risk exposure. Previous laboratory shear strength testing was conducted on rejects with a maximum particles size of 20 mm, and some concerns were raised that this might not represent the mechanical properties of the actual full particle size distribution (PSD) rejects. BHP was also aware that using different technologies to dewater the tailings, such as belt press filters (BPF) and solid bowl centrifuge (SBC), could produce thickened tailings which could significantly modify the physical behaviours of the MPRs, particularly the bonding between particles. Therefore, laboratory testing on both coarse rejects and mixtures of the coarse rejects and dewatered tailings (MPRs), with full PSDs, was carried out. Testing was performed using the large direct shear machine developed by the Australian Coal Association Research Program (ACARP) project C20019 in 2017, as well as a 300 mm diameter triaxial apparatus at the University of Newcastle (UoN). This paper presents details of the laboratory testing program and results for the rejects from the first studied mine of the BHP Coal Tailings Program. It compares the shear strengths measured at full scale with those tested on modified (scalped or crushed) specimens in the past; and discusses the tailings dewatering technique selection from geotechnical aspects based on the testing results, and finally presents some dump and tip head stability analysis results using the testing results.

Jul 1, 2021

By C Hedemann, N Silveste, H Davis, C J. Moran

For nearly two decades water scientists have been debating the need to use appropriate models for the questions being asked and the data available. This paper puts forward a rationale for a hierarchical framework for water balance modelling as it applies to mine sites. The hierarchy is based on the complexity of models and their data requirements. Scientific models are the most complex and require the most data; next is engineering models, then systems models and the simplest representations are given by conceptual models. A position is put forward that systems models have a range of uses that the others do not provide. A systems model, called SiteMiser, is described and its calibration illustrated. The model is applied to seven coal mines from the Northern Bowen Basin in Central Queensland. Currently, there is little relationship between total water use and coal production. This relationship is not any stronger when fresh (raw) water is compared to reused water. Leading practice water use levels are simulated for all sites. The simulation results demonstrate that there is considerable opportunity to reduce water consumption and, in particular, to import less fresh (raw) water to the sites.

Jan 1, 2006

By Hoberg H, Schneider FU

The stability of suspensions can frequently be controlled only by the use of supplementary polymeric agents. Such methods date back to the time of the ancient Egyptians, who used natural rubber as a deflocculant for carbon black in the manufacture of ink (Anon, EncyclopediaBritannica, 1968). Since the development of synthetic polymers in the 1950s they have been deployed in all manner of applications. Indeed the mining and paper industries as well as industrial or communal waste water treatment plants are largely dependent on flocculants which make a major contribution to the relief of the environment. As some of the polymers used are carried out from the process via purified water, problems can emanate from the application itself as long as no reliable data is available as to the exact whereabouts of the polymers and their impact on the biosphere. In order not to invade other systems, they would have to be biologically degradable which has not, until now, been confirmed (Blockhaus, Sequaris and Schwuger, 1991; Schumann, 1991). It has, however, previously been demonstrated (Hoberg et al, 1990) that when process water circulates in mineral processing operations, residual amounts of polymeric flocculants can have extremely adverse effects on the selectivity of flotation processes. The adsorption behaviour is consequently one of the most important considerations in the development of new polymers, the aim being to minimise the amount of non-absorbent matter. The objective of the investigations carried out on ampholitic synthetic polymers of high molecular weight to be reported on here was to permit the connection between settling index and adsorptivity to be characterised in greater detail. As the level of knowledge concerning flocculation and polymer adsorption in real systems is still limited in spite of numerous practical and theoretical studies in this field, the experiment was designed to be relatively broadly-based. As well as investigating various raw materials, an attempt was made to compile results on the influence exerted by different surface charges.

Jan 1, 1993

By J Rowland

"This paper was primarily put together in order to demonstrate what are believed to be acceptablestandards, in relation to ventilation surveys and the subsequent model assembly process. Thiswas brought about by the fact that in many parts of the world it is regarded as acceptable to carryout ventilation surveys and then build and supply the client with a æstick fi gureÆ type ventilationmodel. Such stick models have arguably litt le use and a very short life span in the real world and isalmost impossible for site staff to maintain. Thankfully most underground coal mines in Australia strive to maintain a true replica model of their ventilation circuits and to keep them in a relatively good state. Given that these mines own and maintain the models, it is often seen as necessary to update or rebuild them. The level of survey detail required to do so is totally dependent on the end use of the data and the criticality of the accuracy of the data set, to the ongoing safety and viability of the business. Mine technical personnel should think clearly about the use and importance of the ventilation survey and subsequent report outputs required that will help them bett er understand their mines and bett er prepare them to manage their ventilation circuits, on an ongoing basis. This paper provides some guidance for Australian ventilation engineers so they may plan and execute this work æin houseÆ, should they rightly choose to do so. To this end, methods of data collection and circuit analysis required for surveys of a high order of accuracy are detailed. Also, some of the issues which are important when formulating a strategy to carry out the appropriate ventilation survey for the required purpose are summarised. As well, the major details that should be furnished within any survey and some survey/report outputs and/or omissions, which are clearly not acceptable, are highlighted."

Jun 1, 2012

By C J. Moran

The Gladstone region, as one of the most industrially intense regions in Australia, uses significant quantities of fresh water. Awoonga Dam, situated on the Boyne River, is the only major source of water in the region. The current typical annual usage is 53 GL (Porteous, 2006) and approximately 80 per cent of the water is used by heavy industry (Gladstone Area Water Board, 2004). Until relatively recently, there has been ready and easy access to raw water for industrial use. The recent drought, which resulted in severe water restrictions in 2002 and 2003, emphasised the importance of water for a dominant industrial region like Gladstone. Although now in the process of changing, the typical contractual arrangements in the past have provided little financial incentive for efficient water use. From research undertaken on potential water reuse opportunities, several key questions have emerged related to water management in an industrial region such as Gladstone. This paper highlights these key questions, presents findings from recent regional strategies and assesses the potential for water reuse. Even though there is no clear-cut financial incentive for reusing water, there could be stronger regional and risk mitigation drivers for doing so. Initiatives to incorporate adaptive capacity through collaborative industrial synergies would allow for robustness and resilience in water security, leading to long-term sustainable water management across the Gladstone region.

Jan 1, 2006

By B Hartmann

In 2003, Independence Group NL purchased the Long Shaft Nickel Mine complex (Long) in Kambalda, Western Australia. Lightning Nickel, the nickel operating arm of Independence Group, faced considerable challenges operating the mine, with the most significant challenge being able to prove that the remnant ore at Long and the associated orebodies could be mined safely and efficiently. Given the seismic history at Long, the magnitude of these challenges could not be underestimated. In an effort to achieve 100 per cent extraction of the flatter orebodies, traditional methods such as room and pillar were dismissed. A method consisting of transverse sills, butting into each other was proposed. To stop fill material from the first sill rilling into the adjoining sill, it was proposed to backfill the sills with pumped cement fill. The capital cost of the fill plant was estimated to be in excess of $1.5 million and the cost for cement alone was $1.0 million per annum. Shotcrete was already an extremely useful tool in dealing with the widely variable stress environment, but was to be used in an innovative manner that would enable the full extraction of a tabular section of the Victor South orebody. A layer of shotcrete, approximately 100 mm thick, was to be sprayed on the up dip wall of the initial development sill. The sill was to be backfilled with ænormalÆ development waste and ætoppedÆ with sand backfill. The next sill, ie slightly up dip and alongside, was to be mined along the shotcrete boundary wall. With respect to wall stability, the premise was that the shotcrete wall would stay in place and prevent the backfill (development waste and sand) from rilling into the adjoining development. It was also proposed that any breaches of the shotcrete wall would be repaired using shotcrete before substantial inflow of backfill into the ænewÆ development. This paper describes the development and implementation of this mining method, as well as some of the associated financial aspects.

Jan 1, 2008

By T Ireland

The Project Hobson tunnel excavation was the first use in New Zealand of an earth pressure balance (EPB) tunnel boring machine (TBM). The tunnelling on the project was very successful and break-through was achieved three weeks ahead of program, demonstrating that tunnelling can be undertaken in Auckland with a high degree of cost certainty.Project Hobson involved the replacement of an existing 90 year old above ground sewer that crosses Hobson Bay in Auckland, New Zealand, and which had reached the end of its economic life, with a 3 km long, 3.7 m internal diameter segmentally lined bored tunnel. The NZD$ 118 M project has provided several environmental benefi ts to the Owner, Watercare Services Ltd and the local community:· provide capacity to meet projected growth in the region,· virtually eliminate wastewater overflows into Hobson Bay and the Waitemata Harbour, and· remove an obtrusive visual feature and open up the bay for recreational purposes.Auckland’s bedrock is a weak sandstone/siltstone (East Coast Bays Formation), subject to infilled paleovalleys. The geology in the region has been significantly influenced by volcanic activity; 49 volcanoes are present within 20 km of the city centre.The paper describes the design and construction challenges for the projects, including TBM performance, ‘sticky spoil’ management, and risks associated with basalt lava flows and two paleovalleys. The paper also highlights the reasons for the success of the project, including a rigorous approach to risk management during design, and effective planning during construction. Other useful data such as the effect on the watertable caused by closed face tunnelling, and ‘faceloss’ estimates derived from settlement arrays are included in the paper.Project Hobson also saw the successful implementation of a Geotechnical Baseline Report – one of the first uses of this type of document in Australasia.

Mar 8, 2011

By T McLeod, B Catto

AngloGold Ashanti Australia’s (AGAA) Tropicana gold mine (TGM) geology department seized the rare opportunity of building a new geology department for a new operation: the philosophy, the people and the processes. Not satisfied with the status quo, or simply repeating what was familiar and already known, the vision was for an innovative, agile, multidiscipline, high performance team, capable of delivering on expectations.To achieve this, the geology department has operationalised key components of human resource management (HRM).This paper describes the operational design and implementation of key HRM components: job analysis, organisational design and organisational development. The benefits of this approach are presented in terms of engagement and autonomy in roles, opportunity for role variety and flexibility of the organisational structure. The result is a geology department that provides the functions of mine geology, resource development, regional exploration, survey, data management, geographic information systems (GIS), resource modelling, scheduling, sample preparation, resource coordination and hydrogeology, and even geotechnical engineering for a year!Considerations for application in other geology departments are presented in terms of fundamental requirements and lessons learnt. Fundamental requirements for success have been the sustained support of the general manager, valuing the scrutiny that comes with continuous improvement, high quality HRM systems and tools within the organisation, and a committed leadership group within the department. One of the most important lessons learnt is that a robust process of ‘induction to role’ is critical – the process of familiarising new starters with who we are and the way we work.CITATION:Catto, B and McLeod, T, 2017. Rewriting the rule book – geology organisational design, in Proceedings Tenth International Mining Geology Conference 2017, pp 137–142 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 20, 2017

By A G. Grice

WMC Resources Pty Ltd û Copper Uranium Division operates the large underground Olympic Dam Mine at Roxby Downs, South Australia. These operations mine and process the ore to produce refined copper, uranium oxide, gold and silver. In mid-1996, the company committed to the Olympic Dam Expansion Project (OEP) to expand production from 3.0 million tonnes per annum of ore (85 000 tonnes per annum of copper metal) to over 9.0 million tonnes per annum of ore (over 200 000 tonnes per annum of copper metal). Along with the increase in the ore production capacity of the underground mine and the surface ore handling and processing facilities, expansion of the backfill system was required. The target backfill placement rate was 2.0 million cubic metres of backfill per annum which was to be predominantly delivered as cemented aggregate fill (CAF). This paper discusses the engineering activities undertaken to assess and change the method of designing the required strength of fill exposures. In addition, the operational changes that were introduced to achieve the required fill quantities and the mix designs to meet the specified strengths, including the use of alternate binders, are discussed. This work resulted in a large increase in the fill placement rate and a reduction in the overall unit cost of fill.

Jan 1, 2000

By E Widzyk-Capehart, C Hölck Teuber, S Steffen, V Rivero, O Fredes, E Sanchez, I Pedemonte, N Gonzalez

This paper summarises the research, development and initial application of a sensing platform that has the potential to monitor subsurface deformations, pore pressure and other variables simultaneously to gain a better understanding of rock mass behaviour. The platform is based on Networked Smart Markers (NSMs) devices, which, with their ability for wireless communication between individual sensors and the possibility of real-time data acquisition and processing, will assist in the development of predictive tools to better assess rock mass behaviour.A good opportunity to implement this technology is in the specific application of transitioning from an open pit mine to an underground caving operation. One of the key elements to maintaining the mining business during such a transition is having a good understanding of the unique geotechnical conditions of mutual influence created during the open pit to underground interaction. The knowledge acquisition will require the implementation of a robust platform for geotechnical monitoring, which could be enhanced by incorporating the NSMs. The integration of sensors within the NSMs would enable the collection of additional data about rock mass behaviour (ie caving propagation and crown pillar fracturing), which could be used to improve the management of mining operations and, specifically, allow the development of reliable predictive tools based on the data collected.CITATION:Widzyk-Capehart, E, Hölck Teuber, C, Fredes, O, Rivero, V, Sanchez, E, Pedemonte, I, Gonzalez, N and Steffen, S, 2016. Understanding rock mass behaviour through the development of an integrated sensing platform, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 275–284 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By T Baumgartl, B Richards

The association of specific plants and plant communities with soils developed over underlying superficial orebodies and mineralisation has been long recognised. It has given rise to the use of plant indicators for geobotanical exploration as a regular component of primary minerals reconnaissance where there is an undisturbed vegetation cover. That the chemical composition of indicator plants is a measure of their soil environment has further led to biogeochemical prospecting methods for minerals and its use in the mapping of underlying ore deposits. Where there is a strong surface expression of metal and metalloid anomalies, concentrations of potentially phytotoxic elements may reach a level at which they have strong selective impacts on plant populations. In such circumstances, natural selection has operated in the development of a unique flora composed of plant species and individuals with genetically-based tolerances to the stressed environment in which they continue to survive. These plants are called metallophytes. Metallophytes occur globally on all metalliferous sites, both in pristine undisturbed environments and in areas of mineral workings, ancient and modern. However, the best-developed primary metallophyte vegetation is found in the most ancient areas where there has been a long-term evolutionary impact of the underlying geology through ore weathering and dispersion of metals into the rhizosphere zone. Natural selection of metal-tolerant races of plants in these largely undisturbed areas can eventually lead to speciation and the development of an endemic regional metallophyte flora (Baker et al , 2010). Mineral wastes resulting from mining activities also allow colonisation by metal-tolerant individuals leading to the establishment of metallophyte communities. The distribution and extent of such communities is determined by regional and local factors relating to climate and substrate conditions and the availability of suitable plant resources on which natural selection can operate (Baker, 2009).The ability of metallophytes to tolerate extreme metal concentrations commends them as the optimal choice for ecological restoration of mineral wastes and metal-contaminated sites. Metallophytes have recently also spawned several novel phytotechnologies, including phytoremediation and phytomining (Chaney et al, 2000, 2005; Baker and Whiting, 2008). Action towards conserving the global metallophyte resource base is imperative because many species are under threat of extinction from new and extensive mining activities (Whiting et al, 2004). This has been identified as a priority in the Mining, Minerals and Sustainable Development (MMSD) Project of the Global Mining Initiative in 2002 but positive responses from the minerals industry have been slow. The last decade has, however, seen an ever-increasing interest in metal-tolerant and metal-accumulating plants, both from an academic standpoint and their use in revegetation and phytostabilisation (Tordoff et al, 2000; Baker and Whiting, 2008; Baker, 2009). Few studies have highlighted the need to conserve and develop these unique plants (Whiting et al , 2004). This presentation identifies future research needs for the conservation and exploitation of the global metallophyte biodiversity and its potential in sustainable mine closure. CITATION:Baumgartl, T and Richards, B, 2012. Evaporation and salt transport under variable climatic conditions, in Proceedings Life-of-Mine 2012 , pp 179-186 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 10, 2012

By C Wels

Current best management practice requires the placement of a cover onto most types of mine waste including tailings, waste rock and/or spent heap leach rock at closure of the mine. The objectives of a cover system may vary from site to site but generally include dust and erosion control; chemical stabilisation of acid-forming mine waste (through control of oxygen ingress) contaminant release control (through control of infiltration); and/or provision of a growth medium for establishment of sustainable vegetation. In our experience, there has been a general tendency by stakeholders to develop performance criteria for cover systems, which are tied directly to these specific design objectives. In many cases, this practice has led to the development of single, often very conservative, numerical values of cover performance criteria such as ænet percolationÆ, ærate of oxygen ingressÆ and/or æplant density/mixtureÆ. In our opinion, there is a need to develop cover performance criteria on a case-by-case basis and with due consideration of the short-term and long-term impacts on the receiving environment at a particular site. This paper puts forward a methodology for developing site-specific performance criteria for a cover system designed to isolate acid-forming mine waste and to control acid rock drainage. The proposed methodology links the predicted performance of a cover system to groundwater and surface water impacts. This way, the appropriate level of control (of oxygen ingress and/or net percolation) required by the cover system can be determined. A case study is presented that illustrates the application of the methodology proposed in this paper.

Jan 1, 2003

By O Otgonbayar, B Bayarmaa, D Batbyamba, S Amar-Amgalan, K H. Natsagdorj, J Nomin-Erdene, B Boldkhuu, T S. Sainzaya

The Argyle deposit in the Kimberley region of Western Australia was the world’s largest accumulation of natural diamonds. Following its discovery in 1979, the mining of associated alluvial diamonds commenced in 1983, followed by the pipe in late 1985. Over the life of the mine to its closure in November 2020, Argyle produced approximately 900 million carats of diamonds. Argyle diamonds are distinctive in having a predominance of brown colours and rare highly-prized pink diamonds, which are a signature of the deposit. The 3D geological model developed from mining and deep drilling shows that Argyle is a composite pipe formed by the coalescence of several steep-sided diatremes, each with their own feeder zones at depth, that were erupted along a NNE-trending fault. The ~1.2 Ga Argyle pipe is comprised of diamondiferous olivine lamproite volcaniclastic rocks and intruded by sparse olivine lamproite dykes. The volcaniclastic rocks are predominantly comprised of unconsolidated quartz-rich lapilli and coarse ash deposits formed by numerous phreatomagmatic eruptions of olivine lamproite magma through Mesoproterozoic water-rich sands and silts. Post-emplacement deformation has tilted the orebody 30° to the north and regional strike-slip faulting has offset, segmented, and elongated the orebody. Recent significant modifications of the geological model resulted from underground block cave operations, producing several critical lessons learnt. Diamond grade and quality reconciliation issues warranted a geological investigation which resulted in the recognition of new volcaniclastic olivine lamproite domains with a broad range of diamond grades, including some very high-grade units. The new lamproite domains had a significant effect on the block cave mining and resultant recovery of diamonds. The new findings enable a more coherent and detailed geological understanding of the volcanic emplacement and paragenetic sequence of the Argyle AK1 pipe. Structural modelling of the deposit also played a major role in the block cave mining tonnage recoveries and daily operations. The re-examination of the geology of the Argyle pipe and the results of this new information reinforces the need for ongoing robust geological work both in the early stages of mining a deposit and continued during the life of the mine.

Mar 22, 2022

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 K Ehrig, C Lower, V Liebezeit, M Smith, E Macmillan

"Minerals, minerals, minerals. Elements occur in the earth as minerals. If local physical, chemical and structural conditions are conducive to concentrating these minerals to sufficiently high abundances in the earth’s crust, a mineral deposit will form. If technology is available to extract metals from the minerals economically, then you have a mineral resource that will be mined and processed. Determining which minerals are present and quantifying their abundances, textural characteristics (grain size and shape) and how they are intergrown with each other is the realm of the mineralogist. Geologists use this mineralogical data to understand how the mineral deposit formed, how to find high-grade zones within the deposit and where to find other mineral deposits. Metallurgists use this data to design, operate and optimise processing facilities to extract metals from the minerals. The types, quantity and precision/resolution of the mineralogical data required by geologists and metallurgists are different, but are not mutually exclusive of each other. Fortunately, measurement technology is available that is relatively rapid, high volume and low cost, thus enabling ore and gangue mineral characterisation at a historically unprecedented scale of a mineral resource.CITATION:Ehrig, K, Liebezeit, V, Smith, M, Macmillan, E and Lower, C, 2014. Geologists and the value chain – how material characterisation by modern mineralogy can optimise design and operation of processing facilities, in Proceedings Ninth International Mining Geology Conference 2014, pp 5–14 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Aug 18, 2014

Detailed characteristics of gold from Pliocene auriferous quartz gravels from Waimumu (Southland) have been studied using a combination of optical microscopy, energy dispersive microprobe analysis and scanning electron microscopy techniques. The gold at Waimumu is classified as either: 1. detrital gold, or 2. irregular gold. A number of different morphologies a recognisable within each 'gold type'. Evidence is given for an predominently authigenic origin for some of the gold at Waimumu.

Jan 1, 1987

This paper presents an overview of the current status of mine water management in South Africa. The regulatory framework within which mine water management operates is set out, based on the principles and policies embodied in the relevant legislation. The status of the gold and coal mining industries, with regard to water management, is presented on the basis of studies that have been undertaken to develop water and salt balances for these industries. While the data is not available to quantify the status of ARD in South Africa, the range of typical mine water quality problems faced by South African gold and coal mines is presented. The status quo, problems and challenges relating to mine water management are presented and discussed. It is shown that, while there have been major strides in the last decade, and mine water management and treatment in South Africa has moved onto the forefront of mine environmental management, important problems still persist. There is still a significant amount of improvement required, particularly in the field of prediction of water quality deterioration and the application of such predictions to the identification of management actions that can be applied to prevent or minimise mine water pollution in the shortmedium- and long-term.

Jan 1, 2003

Just as geophysics, in the form of 3D seismic and wireline logging, plays a key role in petroleum reservoir management, so too will geophysics play an important role in mining of coal, metals, and minerals in the 21 st century. The commercial and social imperatives driving greater use of geophysics are reduced costs, increased revenues, and enhanced safety. In short, superior utilisation of capital and management of risks. In relatively undeformed sedimentary environments it is possible to adapt petroleum-style 3D reflection seismic to image mines. This has been demonstrated most impressively in the Witwatersrand. Anglo-American, for example, completed a $1 million 3D seismic survey at Western Deeps in order to site a new $300 million shaft with confidence. Likewise, 3D seismic has gained rapid acceptance at Australian coal mines in recent years. Encouraged by these successes, metalliferous mining companies are supporting research in Canada and Australia, as well as South Africa, to adapt 3D seismic for more highly structured, metamorphic terranes. Because the mining industry is far more diverse than the petroleum industry in terms of commodities and geological environments, 3D seismic is not always cost-effective. A plethora of other geophysical techniques can be applied, many of which are employed in mineral exploration. Mine applications of geophysics differ from traditional exploration applications in two main ways: time scales and length scales are shorter, and boreholes are more plentiful. Borehole geophysical techniques therefore play a more significant role, both for logging and imaging. Logging systems detail the variations of in situ physical properties down the borehole at scales measured in centimetres, while geophysical imaging techniques can map features located tens or even hundreds of metres from the sensors. While geologists tend to think of boreholes in terms of chips and core, geophysicists perceive them first and foremost as access paths for instruments. Borehole logging has been employed at iron and coal mines for decades, mainly to accurately define ore boundaries in delineation holes. In base metal mines, Outokumpu implemented logging widely for orebody delineation in percussion holes in the 1980s. The benefit was a direct cost-saving, arising from substitution of core drilling with percussion drilling plus borehole logging. The practice has since spread to other companies. INCO, for example, defines nickel boundaries in blast holes at Sudbury using conductivity logs. The benefits are in the form of reduced dilution and enhanced ore recovery, flowing from a more accurate mine model. Density, natural gamma radiation, magnetic susceptibility, and conductivity are the principal metalliferous mine logging parameters because they can be recorded in both dry and water-filled holes. Sonic velocity is the premier geotechnical logging parameter, given its sensitivity to rock strength, stress, porosity, and degree of fracturing. Sonic is recorded routinely in exploration and geotechnical holes at coal mines. With the advent of slimline dipmeter, full waveform sonic, and optical and acoustic scanner tools, the role of borehole logging in geotechnical evaluations is expanding. Monitoring of strain and micro-seismic activity enhances safety during mine production. While qualitative interpretation of logs is adequate for stratigraphic identification or definition of boundaries, a wealth of quantitative information, eg density, can be derived from properly calibrated, repeatable geophysical logs. Moreover, geophysical logs can sometimes serve as surrogates for geochemical assays, and not only for magnetite and uranium. At OutokumpuÆs Kemi chromite mine, for example, gamma-gamma logging provides the basis for grade control. By reducing reliance on assaying, three benefits can be realised: reduced reliance on core drilling; lower core handling and assaying costs; and shorter turn-around times. Conventional downhole EM and borehole magnetics are used for near-mine exploration, and for ground sterilisation. Inco has enjoyed considerable success with borehole UTEM in the Sudbury Basin, for example, and Geopeko has applied three-component borehole magnetics successfully in the Tennant Creek area. Electrical techniques such as applied potential and magnetometric resistivity (MMR) are also finding application at mines. For higher resolution, borehole seismic, radio imaging, and radar have been invoked, with varying degrees of success, to delineate orebodies and map structures, or to geotechnically characterise the rock mass and identify hazards. Success mapping nickel sulphide shoots with borehole radar has been reported by WMC at Kambalda. There are no universal geophysical panaceas, and each mine imposes different geological, logistical, and economic constraints. Geophysics will not always be cost-effective. However, the greatest single impediment to expanded use of geophysics at mines has been the low level of awareness of geophysics on the part of most mine geologists, engineers, and managers and, equally, the limited understanding of mine geology and engineering exhibited by the majority of geophysicists. This myopia will be remembered as a 20th century affliction! Blue Sky areas for mine geophysics in the next ten years include integration of geophysical data acquisition with drilling, enhanced grade estimation and rock mass characterisation, and the incorporation of geophysical information into mine models using geostatistical techniques. All these advances will be predicated on an expansion of petrophysical knowledge.

Jan 1, 2000

By O C. Aitken

Mining project developers are committed to taking on all the challenges and obligations of financial risk management. It is interesting that our current models of project finance have not changed markedly in principle for some 700 years, yet the rules which prepare the way for effective project assessment and subsequent loan management still do not seem to be well understood by project or corporate developers. Probability and gravity fill the opposing trays of the golden balance of financial risk. Understanding the relationship between these opposing, but intimately related elements is critically important for successful risk management. It is important to move beyond the qualitative approach and use quantitative methodologies to measure the financial impact of the occurrence of each major risk. We live in a world where the only constant is change and thus it is not surprising that a bankerÆs life is still governed by assessing, measuring and pricing risk. Banks are attracted to funding well managed companies with strong cash flow projects. But we are more risk averse compared with the credit appetites of late last century. This attitudinal shift has resulted in tougher term sheets for the early 21st century, encompassing more conditions, warranties, undertakings and stronger cash sweep provisions. Banks require well balanced portfolios to achieve an acceptable spread of risk, thus there is a more restricted market for small company lending than that available to large multi-project corporate entities with less concentrated risk profiles. Because of this focus, junior company debt finance remains comparatively expensive and especially so for more challenging geographical and political environments.

Jan 1, 2004