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By D Akis, A Clark

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

Jan 1, 2009

By A Williamson

The New South Wales Department of Mineral Resources objective is to use data and information to undertake a detailed analysis of incidents and accidents to identify risks so that the predictable can be foreseen and avoided. The Department of Mineral Resources has established a computerised database called COMET (COmmon Mines EnvironmenT) to capture information on accidents incidents, inspections, audits and accreditation in improving safety and environment performance. This data together with data from Coal Mines Insurance and WorkCover NSW is being used to provide trend and comparison information. The NSW Injury Risk Management Research Centre at the University of NSW has been engaged by the Department to collate and prepare a detailed analysis of the data. Through this process, five areas have been identified for further research. These being: electrical energy, mechanical equipment, work environment, hours of work, and contractors involvement accident and incidents. The paper covers: the establishment of a mix of performance measures for the industry to indicate whether the safety performance is improving; the provision of data to provide useful comparisons and benchmarks against which companies can compare performance; the development of positive performance measures; the findings and outcomes of the detailed analysis of electrical energy; shocks; the provision of information to industry; an outline how the data is being used to determine departmental; operational priorities; and future plans to undertake research into the other areas identified.

Jan 1, 2003

By Rabie A. S, Fouad K. M, Ammar A. A

The existence of Gabal El Kahfa ring complex, located in the Eastern Desert of Egypt, has been ascertained from aeromagnetic and aeroradiometric survey data as well as by aerial photography. Two maps for -the net aerial radiometric measurements reduced to ground level and aerial magnetic data corrected for the regional normal gradient of the earth's magnetic field have been constructed. The aeroradioactivity data have been interpreted geologically and analyzed statistically to outline various radiometric units and compute their charac- teristic statistics. The ring complex showed a circular radiometric feature and yielded a radiometric mean background and a standard deviation of 6.48 and 0.89 pR/h respectively. Besides, the observations showed a normal distribution. The aeromagnetic data have been reduced to the north magnetic pole, then filtered to produce the regional-and residual-component maps. Statistical trend analysis was conducted for the tectonic linea- ments resulting from the three magnetic maps, to define the structural framework of the area under study. This statistical study proved the exis- tence of trends in the east-west, northwest-south- east, northeast-southwest and north-south directions. The ring complex is characterized by a circular magnetic feature, whose average relief is 2150 nT. It is included within a high east-west trending magnetic zone. The latter represents a deep-seated uplift or anticline which is bordered from all sides by some faults of different trends.

Jan 1, 1988

By J MacDiarmid

Atlas Copco is a leading provider of industrial productivity solutions (Atlas Copco, 2007) and one of the worldÆs largest suppliers of rock drilling equipment. The business division of Atlas Copco Construction and Mining Technique is based in +rebro, Sweden with the majority of their equipment produced in a number of facilities within the area. As part of the 2006 AusIMM/Atlas Copco Scholarship I was fortunate enough to visit these facilities to experience first hand this truly unique global company. Through numerous presentations on the various divisions and products manufactured by the company, I saw the broad range of products and services offered by the company and came to realise it is much more than just selling drills. Other highlights included a brief love affair, a tour of EuropeÆs largest underground mine (or factory depending who you ask), a drink at the ice bar at the ice hotel in JukkasjSrvi, and a number of dinners of reindeer. Overall this it was a truly amazing experience with all involved with the program going out of their way to ensure I got the most out of the trip. More importantly, through no effort at all, everyone naturally conveyed their passion for the industry and the company which is a great credit to the æAtlas Copco WayÆ thereby creating a company æcommitted to your superior productivity through interaction and innovationÆ.

Jan 1, 2007

By Moxon NT, Torrace AC

The detonation pressure of an explosive is a function of its density and its velocity of detonation (VOD) and relates directly to the degree and manner in which the explosive loads the surrounding rock. The suitabil- ity of an explosive to any particular situation is determined not so much by the total energy released but more by the rate at which it is released. As the science of rock blasting advances it is becoming economically more important to quantify explosive performance, particularly with respect to quality control and fragmentation. As part of a major explosive user, BHP Central Research Laboratories have developed a number of tech- niques to determine the detonation characteristics of explosives. These include a method of continuous velocity of detonation measurement based on the SLIFER principle. This not only enables the VOD of the explo- sive to be determined, but also has the versatility to allow factors such as under priming, slow run up, the effect of water, variable energy load- ing and the velocity of the shock wave in the stemming to be assessed. Multi point VOD systems have also been developed for more routine appli- cations. With a minor modification they can be used to determine the absolute delay of detonators accurately and economically. Direct deto- nation pressure measurement methods have also been developed based on piezoresistive techniques. Future developments include the incorpo- ration of all the above techniques into a single, portable package, allow- ing easy use on the mine site.

Jan 1, 1988

The research, development and testing of a Blast Control Plug (U.S. Pat. #4,754,705) funded by the U.S. Department of Energy is described. The plug's function is to improve blasting efficiency through the enhancement of stemming effectiveness and thereby reduce drilling and blasting costs. The plug comprises a solid unit placed in the blast hole within the stemming column above the explosive. It is designed for use with back filled drill cuttings or any other suitable material The research and development program comprised the testing of the plug in small diameter holes in competent rock for both bench and crater blasting configurations and full scale field trials in multiple hole and row blasts using blast holes of from 76 to 387 mm in diameter. Test measurements included stemming displacement and velocity, face movement and extent, peak air over pressure and ground surface peak particle velocity. Data acquisition equipment included a Spin Physics SP2000 high speed video motion analysis system, and acoustic and seismic monitoring units. Substantial reductions in stemming ejection velocity or ejection elimination were achieved whilst reducing stemming length by up to 35% over conventional practice. Peak air blast pressures were also reduced by between 8 and 25 dB. A strong inverse relationship between rock face movement and stemming ejection velocity was found. The implications of the importance of stemming effectiveness in blasting and computer blast simulation is also addressed.

Jan 1, 1990

The Yabulu refinery of Queensland Nickel Pty Lld near Townsville now imports more than three million wet tonnes per year of nickel laterite ore from New Caledonia and Indonesia, making it the largest importer of any commodity in Australia. The project has illustrated that importing untreated bulk ore and re-exporting high value products makes good economic sense for the company and the nation.The economics of this exercise were considerably enhanced in 1994 by changing the project's principal product from nickel-oxide sinter to refined high-purity nickel metal. It is one of the few operations in the world where nickel ore is transformed to nickel metal at a single site.Several novel technological processes were developed at Yabulu and incorporated into the refinery to allow this product transition to occur. By utilising internally developed technology the new processes were installed at a capital cost of less than $10 million. It is unique for a large nickel producer to change completely the quality of its entire product range many years after the plant was constructed and considerable attention to marketing the new products has been required.The changes have meant that the project is no longer limited to selling lower-value oxide sinter to a relatively small number of large stainless steel mills. In the past year sales of the new high purity nickel metal products have expanded to include a broad range of international customers in the special alloy, foundry and chemical industries.

Jan 1, 1995

Over a century ago the first ship designed solely for carrying a bulk cargo was launched. This vessel, the "John Bowes", with a deadweight of 660 tonnes was a single decked ship with machinery and accommodation aft. As such she was undoubtedly the fore- runner of the bulk carrier of today only some two hundred and fifty times smaller. Whilst the "John Bowes" pioneered the present accepted mode of transporting the bulk com- modities of the world, it is unlikely that her cargo was either loaded or discharged as quickly as that of a 150, 000 tonner of today. Two decades ago the bulk carrier was beginning to feature in the bulk handling ports of the world. Cargoes of iron ore previously carried in the 'tween deck vessels of the Empire type and Second World War Liberty ships began to be poured into the unrestricted open holds of bulk or ore carriers. The size of vessels catering for this relatively new innovation has rapidly grown to pass the 150, 000 deadweight tonne mark, but only in the last few years. The growth from now into the future is not simply one of ship size evolution. Neither is it a function of the depth of water available at ports. It is in fact a function of a number of features such as ports, loading and unloading facilities, ship trading characteristics, length of voyage and total economies of the transport task from supplier to destination.

Jan 1, 1973

The Charters Towers goldfield in northeastern Queensland produced over 206 tonnes of gold from gold-quartz veins hosted by Mid-Palaeozoic granodiorite, tonalite, diorite and to a lesser extent amphibolite-grade meta-sedimentary schist and meta-igneous rock. Mineralisation occurs in grouped, moderately dipping shear zones with altered wallrock rafts and a complex network of quartz veins.Over 75 per cent of the production came from three main vein systems in the central goldfield: the Brilliant, Day Dawn and Towers Hill vein systems.The Brilliant vein system is hosted by undeformed tonalite and contains north-plunging oreshoots on a north-dipping main fissure and on shorter east-dripping hangingwall fissures. The Day Dawn vein system is localised along a north-dipping dyke at the contact of two deformed granitoids in a brittly reactivated mylonite, where horizontal oreshoot plunges may be related to the original megascopic undulations in that structure. The Towers Hill vein system is hosted in two granodiorite types and has multiple ore controls.Structural analysis indicates that the distribution of the oreshoots within the vein systems is variously controlled by the primary fabric and igneous contacts of the granitoid host rocks. Splaying, changes in dip, and fissure intersections are the main controls. The largest vein systems are both in reactivated shallow-dipping mylonite, or in fissures in younger undeformed granitoids. Each vein system lies in a separate structural domain, usually where older east-striking structures are preserved.

Jan 1, 1990

By A Jurg, F Leclercq

The total drill and blast concept is widely known in the mining industry. On the contrary, the quarry industry rarely adopts such working methods. Based on the experience of the CBS quarry in the North of France, this paper shows how up-to-date blasting technology and simple control methods can significantly improve the overall Mine to Mill efficiency of a quarry. The CBS quarry, in partnership with the EPC group and Nitro- Bickford Company, adopted a new working process three years ago aimed at increasing blast performance and related productivity of the downstream process (loading, hauling and crushing). The pattern geometry of each blast is controlled and explosive charging is carried out following the æconstant specific energyÆ CSE concept. This method provides a homogeneous fragmentation distribution and reduces vibration peak-particle-velocities. The impact on downstream productivity is controlled by means of a simple information management system, which collects and measures key parameters of the production process such as; hauling cycles, crusher throughput, secondary breaking and vibration peak particle velocity. This information system has clearly proved over time that consistent blast quality could be achieved, leading to a 30 per cent improvement in quarry productivity. Improved energy control of blasting through optimisation with electronic detonators, allowed a significant reduction in vibration impact on the environment. Improvement in blasting security, reduction in the environmental impact and productivity enhancement are major benefits that quarries can obtain from these CSE optimisation blasting methods.

Jan 1, 2007

I report results of over 850 microprobe analyses of sulfides, sulfosalts and electrum from the Favona adularia-sericite epithermal deposit of the Waihi district in the southern Hauraki Goldfield of New Zealand. Pyrite and marcasite from altered wall rocks that enclose the veins are stoichiometric, with compositions of FeS2, and no significant trace elements. In contrast, pyrite in veins commonly contains appreciable As (up to 3.2 wt per cent), and locally contains several tenths of a percent of Cu, Zn, Co, Ag and Sb. Vein pyrite may contain up to 0.22 per cent Au, but Au contents do not show a positive correlation with As. Limited electrum data indicate that it ranges from Ag0.47 Au0.53 to Ag0.54Au0.41Cu0.01Zn0.04. Chalcopyrite is stoichiometric CuFeS2, and most galena is PbS, but some galena contains up to 4.4 wt per cent Se, which substitutes for S in its lattice. The galena is not argentiferous; the highest Ag content is 0.45 wt per cent Ag. Sphalerite averages 4 mol per cent FeS, but ranges up to 15 mol per cent. Tetrahedrites [(Cu,Ag)10(Zn,Fe)2(As,Sb)4S13] show variable substitution, but most are Cu- Zn- and Sb-rich. Veins also contain aguilarite (Ag4SeS), stromeyerite (CuAgS), naumannite (Ag2Se), and mckinstryite [(Ag,Cu)2S].

Jan 1, 2004

Large mining operations need equipment that consistently performs as expected. The most effective way of ensuring this is to have a defined life cycle with an optimised maintenance strategy. The determination of this life cycle is an economic decision, influenced by the construction and utilisation of the equipment. An effective life cycle costing (LCC) tool must be able to process the many variable factors involved.Many factors influence the costs that are associated with a machine over its life. The most variable of these are the costs of maintaining the equipment. Maintenance costs are dependant not only on the utilisation of the machine, but also on the strategy that has been developed to support the machine through its life. A combination of supplier support, component changes, regular servicing and unscheduled maintenance needs to be modelled, based on a variety of drivers. Traditionally spreadsheets have been used to model these factors, but the increasing complexity of the situation can make spreadsheets unwieldy and difficult to manage. A database solution that breaks each activity into its constituent components, links them to an associated mine plan driver and then aggregates the result is the ideal tool to provide a time based cost profile. The evaluation of a number of scenarios, representing different maintenance strategies/life cycles can be rapidly undertaken. Auditability through inbuilt tools is required to provide easy tracing of data. Use of the host company's account structure allows for reporting against the standard chart of accounts.

Dec 6, 2010

By D M. Marques, J F. C L Costa

The estimation of process plant head grade is not trivial and is a source of constant dispute within the mining industry. Grade estimates informed by the short term mine planning are frequently not reproduced by sampling the continuous flow of ore at the plant. Head grades are normally obtained by periodically sampling the continuous flow during a day or shift, and taking the average of the multiple increments collected. The standard error of this mean grade depends on the ore variability and the frequency (number) of aliquots extracted. The more increments are taken the higher is the precision on the calculated mean. Variographic experiments are normally used to map grade variability along a certain period of time and the extension variance is derived from this variogram. This experiment is time consuming, expensive and cumbersome. Mining industry personnel rarely apply this approach. Additionally, a temporal variogram can vary from day to day as different ores are mined along the life of the mine. This paper investigates a novel approach based on simulating the grades feeding the processing plant. In situ 3D grade models are built using geostatistical simulations. Grade spatial continuity and variability are reproduced in models that mimic the real deposit. These models are used in mine planning and scheduling transforming a 3D block model into an one dimensional string of values feeding the plant (one dimension flow). These grades have the statistical characteristics of the unknown real grades and can be sampled to emulate a variographic experiment. The results showed consistency and adequacy to estimate the sampling error (Gy, 1998 p 31) for various sampling intervals using the simulated grades. Also the results show a variographic experiment can change significantly from time to time, as ore changes and a selected sampling protocol can become obsolete if not adjusted for ore variability.CITATION:Costa, J F C L and Marques, D M, 2012. Defining a sampling strategy for a continuous flow supported by geostatistical simulations, in Proceedings Sampling 2012 , pp 3-8 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 21, 2012

By N Strong

Cracow is a high-grade; low-tonnage underground gold mine located approximately 500 km north-west of Brisbane in Central Queensland. It is a steeply dipping, narrow vein, epithermal gold and silver deposit that is accessed via a decline from surface. Cracow is owned by joint venture between Newcrest Mining (70 per cent) and Sedimentary Holdings (30 per cent). The orebodies are 5 m wide on average and the ore is extracted via sublevel open bench stoping. Stopes are extracted to a strike of approximately 25 m before being backfilled with waste. Prior to the introduction of electronics, the mine would remove a small amount of the previous backfill out to create a void, and then begin blasting two to three rings at a time, with the ore being extracted between each blast. This method caused the ore to be blasted onto the waste backfill resulting in dilution of the high-grade ore. It also meant that the extraction of each stope took a number of weeks and numerous blasting events. In the fourth quarter of 2005, the mine struck a geotechnically sensitive stope, where all 20 rings had to be extracted in a single shot or risk possible geotechnical problems that could sterilise the ore. Due to the limitations of NONEL« delay detonators the mine could not fire all the rings in a single shot and needed to use an electronic detonator system to extract the stope. Some unexpected benefits to the mine were increased fragmentation, reduced vibrations, reduced dilution, improved efficiency and improved hanging wall and footwall conditions. After the success of this first electronic shot, the mine has since moved to firing all their stopes with electronic detonators. With electronics the mine has been able to fire much larger blasts, and has in fact moved to firing their blasts in the opposite direction, firing towards the draw point instead of into the waste backfill, thus reducing ore dilution.

Jan 1, 2007

As a minerals company, obtaining the appropriate consents under the Resource Management Act 1991 and getting permits granted for exploring, prospecting and mining under the Crown Minerals Act 1991, is necessary for actively exploring and mining in New Zealand. But the essential mix of ingredients for a viable and healthy Industry go way beyond this.   In the short term, an individual company seeking to operate on or within the Crown minerals estate of New Zealand must chart a course through the requirements raised by new cornerstone legislation, the Resource Management Act, the Crown Minerals Act and, the Conservation Act 1978 (where the minerals sought coincide with this estate).   However, this paper suggests that in the longer term for individual operators within the Industry and for the Industry at large to remain viable and sustainable and for New Zealanders to continue to enjoy its benefits, much more is required. Not least of which is a better balancing of competing uses and attitudes, which will require an opening of minds, a change in mindset, topped off with those two most essential of ingredients advocacy and leadership.   New Zealand has undergone massive restructuring in the last 15 years. Is it complete? Have each of its fronts evolved to the end point which was envisaged by the designers of the regime? What are the advantages? What is left to be done? What are the impediments from an incomplete transition which are left to either dog the Industry or remain as a challenge to be removed to ensure the Industry's smooth sailing into a prosperous and environmentally clean and friendly future? A future wherein an educated and understanding public welcome and are proud of the Minerals Industry to whom they owe the standard of living which they enjoy.   This presentation will examine the role of the New Zealand Minerals Industry Association (NZMIA) in paving the way for an optimum operating environment in which to couch a healthy industry into the future.

Jan 1, 1997

Instantaneous outbursts of coal and gas have occurred in Australia in the Sydney Coal Basin since 1895 and in the Bowen Coal Basin since 1954. The largest has been about 500 tonnes of coal and so their magnitude and character have not approached those experienced in some other countries. The occurrence of CO2 with some Australian cases provides some similarity with the worst affected areas in France and Poland.The proneness of seams depends on coal rank and seam gas composition, among other factors. The proneness of places depends on depth, structure, intrusion, tectonism and other factors affecting the geometric, physical and chemical uniformity as well as details of mining. As a phenomenon due to gas and stress, prevention can be achieved by relief of high gas and/or stress condition. Alternatively, controls can be applied to render mining safe for personnel. Unfortunately day-to-day prediction is not widely and reliably achieved to allow selective use of prevention or control. The initial rate of desorption is the most promising day-to-day indicator.Various researches include gas conditions and parameters, stress and failure conditions and parameters, coal variables and geological variables in relation to prediction, prevention and control. Some assistance in research may derive from study of analogous phenomena of instantaneous outbursts of salt and other rocks and gas. It is concluded that in the Sydney and Bowen Basins, any coals with less than 30 per cent Volatile Matter (VM) ash free dry (afd) at depths over 200 m could be prone. Proneness increases with depth, with lower volatile content, with geological disturbance including faulting, intrusion and recent tectonics, with increased CO2 in seam gas, with narrow work and with other factors. Much more research is needed.Unfortunately outbursts are needed too, to provide the research with realistic data. With the problems of mechanism and prediction still being unsolved much research remains to be done. No present aspect of research is satisfactorily resolved.

Jan 1, 1983

By M Dixon, T OÆShannessy

Melbourne Water (MW) is responsible for a section of existing gravity trunk sewer servicing the Melbourne central business district, Docklands, Port Melbourne and other adjacent areas, known as the Melbourne Main Sewer (MMS). MW has determined that the 2.2 km long 110 year old sewer will not adequately service these areas into the future or provide the level of reliability needed. The Melbourne Main Sewer Replacement project (MMSR) involves the replacement of the MMS with a new gravity sewer main and six key manhole shafts, known as the Melbourne Main Reliever (MMR).The majority of the MMR sewer tunnel is situated south of the Yarra River and will be constructed using an earth pressure balance (EPB) tunnel boring machine (TBM) and will be lined with precast concrete segments. The tunnel will be 2.4 m internal diameter and will have a 1.8 m diameter glass fibre reinforced plastic (GRP) sewer pipe positioned within it. This project represents the first large-scale, modern, mechanised tunnel project in MelbourneÆs Yarra Delta Quaternary sediments. There is little precedence known to the authors of similar scale tunnelling projects in these particular geological units. During the recent detailed investigation and design stages of the project, significant effort has been spent on characterising the geotechnical conditions along the alignment and predicting the effects of the new tunnel on the existing environment. Some of the key design issues that have been identified and managed through the design process include short-term surface settlement due to tunnel excavation and the predicted effects on surface infrastructure, potential spalling of the steel fibre reinforced concrete segments under full TBM ram loads and tunnel lining design in geological units with highly variable stiffness.Construction of the new MMR sewer tunnel is expected to commence in mid-2008 with a capital cost of approximately $160 million. Sewer system commissioning is scheduled for completion by early 2012.

Jan 1, 2008

By O V. Vasyukova

Formation of porphyry-style ore deposits starts with the metal extraction from magmas at so-called magmatic-hydrothermal transition (MHT). The processes and compositions at MHT are difficult to study as the record of them is poorly preserved. As the MHT is characterised by massive crystallisation of quartz, including quartz æeyesÆ and veins, their study can elucidate questions related to metal transport and deposition. Quartz grains from the porphyry deposits all over the world (Antapaccay, Peru; Batu Hijao, Indonesia; Climax, USA; Panguna, PNG; Far Southeast porphyry, Philippines; Rio Blanco, Chile; Omsukchan, Russia) were studied by optical, SEM-CL and BSE microscopy, electron microprobe and LA ICPMS. Quartz grains, even within each sample, have different shapes (rounded, egg-shaped, amoeboid or euhedral) and cathodoluminesence (CL) patterns (shape, number and width of bands in CL images). The outer layers of quartz are markedly different, which is unexpected if the grains had formed in the same conditions. Inflections and blurring of CL bands are often structurally associated with fractures that are commonly healed with secondary quartz and associated fluid inclusions. Our results show that quartz æeyesÆ could not crystallise from a silicate melt as normal phenocrysts. It is likely that in situ segregation of residual SiO2- and H2O-rich liquid and its solidification followed by coagulation (eg formation of silica-gel globules) took place in the magma (crystal mush) during MHT. Such globules could remain in a plastic state for a long time even at rather low temperatures. The solidification of globules occurred after bands of different composition had formed and led to fracturing of solidified and inflection of unconsolidated layers. All fluids (liquid and vapour) released from the original silicagel during solidification were trapped as inclusions (aqueous, salt-rich and sulfide). An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation.

Jan 1, 2008

Lafayette Mining Limited, a listed Australian company, is developing a polymetallic Project on the island of Rapu Rapu, located to the east of southern Luzon in the Philippines. The Rapu Rapu Project is based on the Ungay deposit, which has proven and probable reserves of 6.0 million tonnes of 2.5 g/t Au, 28 g/t Ag, 1.2 per cent Cu and 2.1 per cent Zn. The Project will produce copper and zinc concentrates from a sulphide flotation plant as well as dore from a CIL gold plant. Average annual metal production over the projected six-year mine life is 9800 tonnes of copper, 14 000 tonnes of zinc, 50 000 ounces of gold and 590 000 ounces of silver. Despite a rich mineral endowment and long mining history, there have not been any significant new mine developments in the Philippines since the early-1990s. The investment climate has been affected by legal challenges to the 1995 mining code, civil unrest in parts of the country, the impeachment of the previous President and community concerns about the industryÆs environmental performance. As a consequence, the Rapu Rapu Project is viewed as a test case û within both the country and the international mining industry û on whether minerals investment in the Philippines is an acceptable business proposition from a risk perspective. Lafayette has faced formidable challenges in managing the development risks of the Project. The major risk areas of the Project for which the company developed strategies include: regulatory, environmental and approvals issues, technical evaluation, project development, social and community issues, land acquisition, and financial and marketing issues. This paper describes the risk management strategies successfully pursued by the company, and which have the Project on track to commence construction in 2003. Dealing with each of the areas in turn, Lafayette sought to develop strategies which either effectively neutralised, minimised or otherwise addressed the key risks most likely to be experienced.

Jan 1, 2003

Structural geological modelling is a process which results in a 3D computer model that represents the essence of the geological and structural understanding of an area and is presented in a way that is directly useable, typically by internal customer groups. BHP Iron Ore operates a number of open cut iron ore mines in the Pilbara Region of Western Australia. The largest mine is the Mt Whaleback Mine located at Newman close to the southern margin of the Pilbara Craton. The structurally complex Mt Whaleback Mine is the largest metalliferous single pit open cut mine in Australia with over 1.6 billion tonnes of original iron ore resource. Additional to the Mt Whaleback Mine, a number of satellite open cut iron ore mines are operated by BHP Iron Ore (BHPIO) in the Newman area. BHPIO also operates the Yarrie mine approximately 400 km north of Newman at the northern edge of the Pilbara Craton Most of the BHPIO mines are located in the Archean- Proterozoic Hamersley Province that overlies the Archean granite-greenstone terrain of the Pilbara Craton. The orebodies are considered to be the result of supergene enrichment of the approximately 2.5 Ga Brockman Iron Formation and the slightly older Marra Mamba Iron Formation. Folding represents the most prevalent and penetrative structural element in the Newman area. Four folding phases have been identified regionally (Fj, F2, F3, F5), while a more local folding deformation (F4) developed mainly in the Mt Whaleback and Orebody 29 mine area. A northeast trending, southeast dipping, 45 km long, high angle, normal fault zone, the Whaleback Fault Zone, cuts through the Mt Whaleback mine resulting in an approximately 1400 in gap in stratigraphy. Additionally, two large, low angle, normal faults, the East Footwall Fault and the Central Fault, are present at the Mt Whaleback Mine. During the formation of supergene orebodies, up to 40 - 45 per cent volume loss occurred resulting in local non-tectonic deformation in the orebodies.

Jan 1, 1997