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By Y K. Leong

Occasionally additives are used in the wet processing of iron ore tailings and slurries, for examples, in the thickening of tailings with flocculant to recover process water, and in the smooth pumping of concentrated slurries. They can mitigate slurry behavioural issues that could significantly affect the plant operation and production. The nature of iron ore business requiring the plant to have a high throughput to be economical, large amounts of slurries are therefore processed every day. The quantity of additives needed will correspondingly be large and so are the associated costs. This could have a significant impact on the plant profitability. If additives are used they must be very costeffective. NaOH is among the lowest cost chemicals available, at ~US$400 per ton. In this paper we will look at use of composite additives involving phosphate compounds with NaOH added to reduce the cost, for the control of iron ore slurries rheology. The NaOH worked synergistically with the phosphate compounds. The effectiveness of these composite additives in viscosity reduction can be neutralised by another cheap additive such as lime or a Ca(II)-based salt turning the slurries back to being a paste. Tailings paste is an ideal material for safe storage in the dam. These composite additives can also be used to facilitate the recovery of iron ore at commercial grade from tailings (Leong, 2020a, 2021a).

Sep 18, 2023

By R Dimitrakopoulos, I Minniakhmetov

Geostatistical simulation techniques are used to quantify uncertainty of spatial attributes of interest describing mineral deposits, petroleum reservoirs, hydrogeological horizons, environmental contaminants and so on. The majority of existing methods consider second-order spatial statistics and Gaussian processes, while the more advanced multiple point-based simulation approaches are algorithmic and do not consistently account for the high-order spatial relations in data. Recently, simulation techniques for complex and non-Gaussian spatially distributed variables have been developed, based on high-order spatial cumulants, and make no assumptions on data distribution or require data transformations. In this paper, the previous developments are extended and a new approach for the joint simulation of multiple correlated variables using high-order spatial statistics is proposed. The technique is based on a new algorithm for the decorrelation of correlated variables into factors, using the so-termed diagonal domination condition of high-order cumulants. The decorrelated factors are then simulated using high-order simulation and back-transformed into the initial correlated variables. The decorrelation using diagonal domination of high-order statistics is tested with a data set from a multielement iron ore deposit, and then a fully known two-dimensional data set with two correlated variables is used to demonstrate the practical intricacies of the proposed method.CITATION:Minniakhmetov, I and Dimitrakopoulos, R, 2014. Joint simulation of correlated variables using high-order spatial statistics for orebody modelling, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014 , pp 53–60 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014

By A Bossilkov

Although environmental and sustainable development reporting has now become widespread in the Australian mining and minerals processing sector, there remains a great deal of diversity in reporting contents and practice. Moreover concerns remain about the effectiveness of reporting for delivering the companyÆs business case for sustainable development as well as for communicating sustainable development performance to a range of external stakeholders. This paper therefore reviews the status of sustainable development reporting in the Australian minerals processing industry. Pertinent international and national developments are briefly captured, leading to a discussion of the framework for integrating sustainable development reporting with sustainable development management (as proposed by the World Business Council for Sustainable Development). This leads to a discussion of the results of a comparative review of sustainable development reports of a cross-section of eight Australian resource companies. Best practice elements are highlighted in regard to reporting on company context, governance, performance and assurance.

Jan 1, 2004

This paper presents an overview of a program PC-BC developed for application to the design and evaluation of block cave operations. Conventional mine planning software tools are not well suited to the evaluation of this type of deposit. The paper looks at the modelling approach as applied to a block cave mining project. The following steps are described:Initial preparation of data including block models, draw point footprint geometry and draw cone geometry. Computation of individual draw point reserves. Procedure for modelling of vertical mixing of material within each draw point and subsequent determination of the best height of draw for each draw point based upon an economic cut-off value. Smoothing of draw heights amongst neighbouring draw points to produce a realistic draw envelope. Mineable reserves within the envelope are then computed. Tools for preparation and evaluation of various production schedules. This includes definition of draw rates, and rates for commissioning new draw points. In an operating mine, the capture and analysis of daily draw tonnages is important. How PC-BC accommodates this is described as well as the processes for depleting the draw column reserves. In the 12 years since the program was first developed, it has been used on a number of projects for feasibility studies and operating mines. Some practical examples of the use of the program in these projects are presented. Finally, some commentary on the sensitivity of various parameters is presented. Particular emphasis is placed on the overall footprint design.

Jan 1, 2000

By Y Li, B Shen, S Zhang

Jointed rock mass is often encountered in rock engineering and its stability has always been a major concern in underground engineering. To analyze the stress characteristics and their variations in jointed rocks, in this study, a new concept of sub-instability stage before rock failure is defined, and a new experimental method is used to investigate interaction between defects and intact rock of the jointed rock mass during the subinstability stage., Firstly, external characteristics of stress and failure mode of the whole jointed rock are investigated systematically by conducting uniaxial compression tests on red sandstone samples with a set of preexisting open flaws of different sizes, and the interactive damage of intact parts and defects in the subinstability stage was further studied. Secondly, rock-like material samples made of bonded plaster blocks were tested and internal data from stress sensor between the strong and weak segments were collected. The transforming processes from independent activity of the individual segment to overall interactive movement of jointed rock before the unstable failure were analysed. The test results indicated that the subinstability stage marked the beginning of interactive failure between the intact rock and defects. In the early subinstability stage, the relatively intact parts bore most of the load in a jointed rock mass, and the defects were damaged firstly which caused high strain around it. The areas of high strain increase rapidly, extending and migrating, causing damage to the intact parts. In the later sub-instability stage, the interaction effect reached its maximum, and a large number of cracks appeared in the intact rock and they propagated and coalesced. Intact parts experienced rapid failure and then the jointed rock failed. The experimental method used in this paper to identify the sub-instability stage could be used to identify failure precursors of jointed rock masses and to develop technology for disaster prevention in rock engineering. CITATION:Zhang, S, Shen, B and Li, Y, 2018. Experimental studies on interactive failure characteristics of jointed rock, in Proceedings The Fourth Australasian Ground Control in Mining Conference (AusRock), pp 453–461 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 30, 2018

By S J. Neethling and, S J. R Simons

In this paper the effect of humic substances (natural surfactants), electrolytes and solid particles on bubble coalescence, and as a consequence on froth stability, have been investigated. In this study two bubbles of equal size were formed and forced to collide using a novel experimental apparatus. The interactions were recorded by a high-speed camera, the images of which helped to determine the coalescence frequency and the coalescence time, as well as the mechanisms of the interactions. Two types of humic substances were used, along with three different electrolytes. Humic substances appeared to have a considerable effect on bubble coalescence, while the effect of electrolytes was minimal. Moderate and high hydrophobic glass spheres were used between two bubbles. Very hydrophobic spheres promoted fast bubble coalescence, while moderate hydrophobic spheres had no effect. Data of coalescence frequency and time is presented, as well as images of the coalescence events. The coalescence frequency was used to validate a parameter, Pf, known as the film failure frequency, used in a simulation model to predict foam height in a gas-sparged vessel. Predictions determined using Pf were then validated by experimentation.

Jan 1, 2005

By R M. Smart, A T. Harrison

Backfill systems using unconventional cementitious binders have been successfully used in relatively deep and hard rock tabular mines for longwall, scattered stoping and shaft pillar removals. Two unconventional cementitious systems are discussed: A ground granulated blast furnace slag (GGBS) with an activator containing lime. This has been used with a total tailings æstableÆ slurry at a relatively low dosage of less than seven per cent, by mass, based on dry solids. The room and pillar stopes supported with this fill were up to 20 m high and the tailings were relatively high in pyrite. A GGBS binder plus a silicate based activator and gelling agent that virtually eliminated all water drainage (and hence post filling shrinkage). The system used a slurry, but the addition of the activator created a final placed product that had the behaviour of a paste. The system has been successfully used for almost ten years in the following applications: stoping widths (mining heights) above 1.6 m; and shaft pillar removals in seismically active areas at the end of the life of the shafts. This paper discusses the technical merits and costs of the systems and compares them to other fill systems (including true paste systems). the acceleration (normally g, 9.81m/sec2) is increased to a significantly larger (but generally unmeasured and unknown) value, as shown in Figure 1.

Jan 1, 1998

By J Jardine

An improved ground support method for development intersections, wide spans and stope brows was implemented at Kanmantoo mine. The method uses a jumbo to simultaneously drill and install self-drilling anchors (SDAs) to depths from 4.5 m to 7.0 m. Resin is subsequently pumped into each SDA using a specially designed integrated tool carrier basket, with plating occurring within 10 mins due to rapid resin cure. This methodology means that SDAs can be installed rapidly due to reduced process steps and wait times with reduced hazards to personnel. Cablebolts are used extensively in underground mines to reinforce the ground in wide spans, such as at intersections and stope brows. The flexible cablebolt tendon allows for a long, continuous and high-capacity reinforcing element to be inserted into the rock. A common cablebolt installation practice at Australian underground mines that do not utilise a mechanised cable bolter, is for cablebolt holes to be drilled by a jumbo or longhole rig, hand installation and grouting by a service crew, then plate tensioning following a grout curing wait time of typically 12 to 24 hours. This process involves multiple separate labour-intensive work processes and results in reduced availability of priority headings. This paper discusses the development history of vertical SDA use in wide spans at Kanmantoo mine. The installation process is fully described, including aspects such as reliable in-hole coupling of SDAs, resin selection and pumping aspects. A cost benefit assessment, and a case for ground stability are presented to compare cablebolt use to SDAs in development intersections.

Mar 29, 2023

By A Penney, M J. Pascoe, R M. Stephenson

The empirical McCracken and Stacey stability and risk assessment method has been in use for more than 20 years to assess geotechnical stability issues for raise bored shafts. The methodology has been applied with various levels of success. Increasingly, trends in mining and civil tunnelling have been towards larger diameter, single pass, raise bored shafts to rapidly provide means of ventilation, material movement (ore passes), or emergency egress. Identifying and assessing potentially problematic zones before raise boring commences can allow for appropriate risk-based decisions on construction, or to investigate alternative solutions. The implementation of a proactive solution to raising through an identified weak zone is preferred to the application of an engineered solution to an area subjected to substantial instability or failure. Methods for investigating potentially problematic areas are discussed in this paper based on AMC’s benchmarking data. Proactive investigation programmes resulting from these investigations are also discussed. Previous publications discussing the benchmarking data have concentrated on Australian case studies. Increased efforts and recent updates have been made to expand the database to include international case studies. This has provided further refinement of lower bound ‘raise bore rock quality index’ (QR) values, and various rock mass parameters for stability assessments. CITATION:Penney, A, Stephenson, R M and Pascoe, M J, 2018. Raise bore stability and risk assessment empirical database update, in Proceedings The Fourth Australasian Ground Control in Mining Conference (AusRock), pp 434–445 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 30, 2018

By H R. Phillips

During the 1980s and early 1990s, the South African coal industry experienced a series of methane explosions in which well over 200 coal miners lost their lives. In addition, a fire and an explosion in the gold mining sector claimed a further 240 lives. These tragic incidents resulted in the establishment of a research facility at Kloppersbos dedicated to explosion and fires research and the funding of an extensive research program, and almost certainly influenced the government of the day in its decision to establish, in 1993, the Leon Commission of Enquiry into Mine Health and Safety. The results of this focused research program, the wide-ranging recommendations of the Leon Commission and the determination of the coal mining industry to improve its safety record all combined to result in the past 20 years without a major explosion.This paper lists some of the research outcomes and, through three case studies, illustrates what can be learnt from investigations following explosions. The paper concludes with an evaluation of some of the findings of the Royal Commission on the Pike River coal tragedy. Many of the Commission’s conclusions are pertinent and relevant to the coal mining industry worldwide and their implementation could significantly improve coalmine safety; however, a careful study of the available facts indicates there could well be an alternative explanation of the source of the methane, the location of the ignition and the size of the explosion at the Pike River coalmine.CITATION:Phillips, H R, 2015. Lessons learnt from mine explosions, in Proceedings The Australian Mine Ventilation Conference, pp 19–28 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 31, 2015

By S Maritsa, D Simbi, E K. Chiwandika, S M. Masuka

The steel industry is facing challenges on a global scale that include depletion of resources, huge energy consumption, and the emission of CO2. The demand for iron products is increasing due to the increased infrastructural development. Zimbabwe produced cast iron from scrap metals. However, there is currently a shortage of scrap, and yet Zimbabwe is rich in limonite ores that are currently being underutilised. The possibility of using limonite ore as a sustainable feed for pig iron production was investigated by preparing some limonite ore carbon composite pellets. The results showed that the addition of coal to the limonite ore and calcium carbonate mix to form the composite pellets resulted in a decrease in the drop number as well as the dry compressive strength of the composite pellets. This research aims to improve the physical properties of the green pellets by the careful addition of hydroxyethyl cellulose as a binder that was found to improve the physical properties of the green pellet. This is important for materials handling during the production process of the composite pellets. Results showed that the drop number was substantially improved by the addition of 0.4 wt per cent hydroxyethyl cellulose while the dry compression strength improved from 2.5 kg/pelIet to around 23 kg/pellet irrespective of the amount of binder added. The binder improved the physical strength of the iron-carbon composite pellets enough to allow for large-scale production of the pellets that can be an alternative and sustainable feed for cast iron production. However more results on the indurated compression strength and other properties such as the reduction degradation index, swelling index, and the reducibility test are required.

Jun 19, 2024

By R Markoski, P Grealish

The requirement for rapid vertical development for underground ventilation is often a factor when dealing with dynamic mine plans, with short vertical developments being used to optimise ventilation systems. In an effort to increase the safety and efficiency of the constructions, a simple and effective sinking methodology is required that is both adaptable and repeatable. A modified shaft construction methodology is proposed that attempts to minimise risk to the personnel as well as be cost-effective. Readily available equipment is used to ensure adaptability to the various environments and shaft parameters.One of the greatest risks of shaft sinking is having personnel working suspended over open cavities or underneath suspended loads. Removing this risk, by ensuring all construction is done from solid ground, allows for safer sinking operations. As the process is repeatable, familiarity and confidence in its construction sequence will increase with each successive sink.A trial sink is performed with a 3.6 m diameter, 20 m deep shaft. The shaft was excavated using a conventional strip-and-line philosophy, with the shaft then being lined from the collar via the use of large diameter corrugated steel culverts. The annulus between the steel culverts and shaft excavation is then filled with a concrete mixture to secure it in position.The new process was successful, with no personnel at any time during the process being suspended above an open excavation. The installation had relatively low capital and operational costs and was completed faster than an equivalent, conventional concrete-lined shaft construction. Therefore when compared to conventional shaft-sinking methods, this process can be considered safer, more efficient and relatively cost-effective.Further research is required to determine whether this method can be expanded to larger vertical developments.CITATION:Markoski, R and Grealish, P, 2014. A new method for rapid vertical development of underground ventilation shafts, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 603–606 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

By A G. Shellsh, R J. Henham, J R. Foley

The Porgera Gold Mine, west of Mt Hagen in PNG is a large open pit and underground operation currently producing gold at the rate of almost one million ounces per year. This deposit has produced some 8.8 million ounces to-date and has current reserves of 103.4 million tonnes @3.2 g/t Au. The Porgera Joint Venture has invested over $A1 billion in infrastructure in this project. Technical management of this operation involves the interrogation of some 700 000 metres of diamond drilling, some 50 000 blastholes per year, and very large volumes of laboratory, geotechnical, environmental and production reporting data. Over the past seven years this data has been consolidated into a single centralised, relational database which now acts as the single reference point for all the technical application systems used for surveying, grade control, production reporting, deposit evaluation and modelling. Data transfer to application programs and management systems is controlled by the centralised database, this process at times involving a two-way, real-time, binary data transfer. The benefits of a specialised database application include security and integrity of the data asset, ease of access, and performance in a multi-user environment. This replaced fragmented, inconsistent data sets stored inefficiently as individual, unindexed, variably formatted files associated with the different application programs. Most importantly, the database has allowed mine management at all levels to make timely, confident investment, cash flow and optimisation decisions as it provides the primary link between the deposit and operational data sets on one hand, and the application programs and management and performance measurement systems on the other. This paper discusses the economic value and importance of technical data in terms of the resource asset and the means by which this data is being managed and used at Porgera.

Jan 1, 2000

By W J. Shaw

Mining operations must become more predictable to overcome the volatility that has characterised the mining industry. Comparisons of production against predictions will become more consistent as mining operations merge and expand, as personnel move from site to site, and as public reporting of reconciliations becomes more prevalent. More consistent approaches are already being seen in the industry using the terminology used in this paper and elsewhere.Examples are provided that show how use of the waterfall chart as a reconciliation management tool can provide objective analysis to improve practices.Geometallurgical modelling is becoming more useful and will continue to do so as we move from a few bulk samples to better interpretation of material properties from geological mapping and drill sampling. Reconciliation has evolved to the stage where predictions of geometallurgical properties to optimise mill performance, and of geotechnical properties derived from better 3D geological models, should also be reconciled.CITATION:Shaw, W J, 2014. Reconciliation – outcomes and expectations, in Proceedings Ninth International Mining Geology Conference 2014 , pp 123–128 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 18, 2014

The mobility of radionuclides released into aquatic, terrestrial and subsurface environments by mining, industrial processes is an area that deserves significant scientific attention. The presence of microorganisms in these environments can influence the transport of radionuclides. Free-living microorganisms constitute mobile suspended particles that may have a radionuclide sorbing capacity higher than that of the environment. Radionuclide transport will then proceed faster with than without microorganisms. In contrast, if the majority of the microorganisms are growing in biofilms on surfaces, transport of radionuclides may be reduced. Microorganisms can directly sorb radionuclides either within the cell structure or on the cell wall. Radionuclides could also be sorbed by minerals precipitated by microorganisms. Microorganisms produce complexing agents that can influence radionuclide mobility. The involvement of microorganisms in biogeochemical processes is related to their ability to include various chemical elements and their combinations into biochemical redox reactions. Microorganisms can alter the extent of radionuclide oxidation that results in their deposition as a result of the formation of insoluble forms. Some studies have shown the bioremediative potential of stimulating reducing bacteria to use some of the soluble radionuclides as electron acceptors and thus precipitate them out of solution. The microbial involvement in providing a barrier for radioactive element migration (uranium, technetium) and the formation of ores (eg uranium) has been justified. The mediated impact of microbial activity on radionuclide migration occurs through its effect on the ambient geochemistry by geochemical speciation changes, pH changes and changes to the ambient redox potential. As the mobility of many radionuclides depends on the pH and redox potential of the environment, these microbially mediated geochemical changes can influence radionuclide migration through changes to both the dominant radionuclide species and mineral phases.

Jan 1, 2004

By D A. Bowman, S Schafrik

With the goal of reducing injuries and fatalities related to haul truck accidents, this research investigates technologies and intervention strategies for improving worker training using a virtual environment (VE). Funded by the National Institute for Occupational Safety and Health (NIOSH), this research specifically focuses on training workers in preshift inspections of haul trucks to avoid preventable defects from causing worker injuries and expensive equipment damage. Improved training in these inspections is expected to increase uptime. The VE developed to train workers for preshift inspections consists of three phases: the virtual tour, the virtual inspection and the shift simulation. The virtual tour introduces information necessary to conduct a preshift inspection by guiding the worker around a haul truck, identifying parts to be inspected and explaining defects to look for. The virtual inspection assesses retention as the worker navigates around a haul truck and identifies defects. During the shift simulation, the worker is shown a simulation of the work shift, which animates severe consequences of any overlooked defects to emphasise the importance of preshift inspections. To provide multiple training platforms, desktop and CAVEÖ versions of the training VE were created. Flux Studio was used to model the environment and to produce Virtual Reality Modelling Language (VRML) files for the desktop version. DIVERSE, an application programming interface, was then used to implement a more realistic version of the VE in a CAVEÖ, a room-sized visualisation system. Initial feedback from mining colleagues indicates that the training VE may replace normal classroom training for preshift inspections in the future. As opposed to PowerPoint presentations and instructional videos, the training VE provides better spatial understanding of the location of parts and incorporates interactive features to actively engage drivers in the learning process, which may result in better retention. Initial feedback also indicates that minor improvements can be made to the virtual tour and virtual inspection phases.

Jan 1, 2008

By Todd W, Stone C

A 3D graphics modelling system has been applied to longhole stope ring design at Z.C. Mines, Broken Hill, NSW. This has been in operation for a four month period (January, 1988). The purpose of this application was to provide computer assistance to mine planning engineers and blasthole design draftsmen for the longhole design process, particularly by: 1. reducing the- volume of tracing, drafting and geometric manipulation which is a significant feature of the manual design process, 2. providing additional design drawings to enhance the conception and implementation of stoping design.

Jan 1, 1988

By B J. Beven, A Vatandoost, J Young, S Campbell-Hardwick

The intrinsic value of iron ore depends on its physical and chemical characteristics. For example, silica and alumina are unwanted elements, downgrading iron grade and adversely affecting high temperature processing, attracting penalties in smelter contracts. For this reason, an informed knowledge of processing characteristics and product quality of the ore is valuable and cost effective during mine planning and processing.Ore variability is a significant factor that affects metallurgical behaviour and efficiency of ore processing equipment. Ore of sufficient chemical and physical quality needs to be modelled, mined, processed and usually blended. Feed and product assays are commonly used to assess potential ore upgradability. However, assays alone cannot be all informative of actual processing response given the variability of the physical properties of the ore.This study investigates the potential benefit of implementing a geometallurgical approach during the commissioning stage of the Kings deposit, part of the Solomon Iron Ore project in Western Australia. Kings drill hole database information, ie geological, textural and geochemical data, together with the results of metallurgical test work were used for geometallurgical analysis and modelling. Three main ore types were identified at Kings, namely channel iron deposit (CID), bedded iron deposits (BID) and Detrital Iron Deposit (DID). Additional classifications were utilised to better characterise these units in terms of their physical properties.Bulk sampling for each ore type was carried out across the deposit for metallurgical testing. Multivariate statistical models were developed for prediction of product quality for each geometallurgical unit. A new approach for modelling yield based on ore upgrade factors is introduced. These models were then applied to the Kings regularised mining model to assess product quality across the mining blocks and to plan product stockpiling and blending strategies.CITATION:Vatandoost, A, Beven, B J, Campbell-Hardwick, S and Young, J, 2013. A geometallurgical approach for iron ore product evaluation, in Proceedings The Second AusIMM International Geometallurgy Conference (GeoMet) 2013 , pp 259-266 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 29, 2013

By C Smith, J Cilliers, K Hadler

Unstable flotation froths, that burst before they overflow, produce no concentrate. Increasing the froth stability to improve recovery is therefore an obvious control strategy. Froth stability can be measured readily as the fraction of air entering the flotation cell that overflows as froth, rather than bursting on the surface; the ‘air recovery.’ Air rate is one of the most significant variables affecting froth stability. It is interesting that froth stability (air recovery) is maximised at a specific air rate, above or below which it decreases. It is important for metallurgists to realise that this maximum froth stability also produces the maximum mineral recovery, without compromising concentrate grade. Flotation cells must be operated at the air rate that produces the highest air recovery. The peak air recovery (PAR) to maximum mineral recovery relationship was first demonstrated by Hadler and Cilliers in 2009. Since then, the relationship between PAR and flotation performance has been widely explored; varying air rate, froth depth and particle size. Industrially, reducing the flotation bank air rate to achieve PAR yielded better mineral recoveries than other down-the-bank air rate profiles. In this paper, we present an overview of these key developments and findings in flotation optimisation based on PAR. Furthermore, using new industrial data, we show that PAR is not just applicable to rougher-scavenger cells, but also to flotation columns. Finally, we consider the future application of such an optimising control concept. CITATION:Smith, C, Hadler, K and Cilliers, J, 2018. Flotation control using froth stability: past, present and future, in Proceedings 14th AusIMM Mill Operators' Conference 2018, pp 441–454 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 29, 2018

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