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By E Hernandez, I Agustian, W Kusumohastuti

PT Freeport Indonesia is completing the first underground gyratory crusher excavation at their Deep Mill Level Zone (DMLZ) mine located in the mountains of Jayawijaya, District of West Papua, Indonesia. DMLZ is an underground block cave mine with an expected output of 80 000?t/d and a scheduled production start in 2015.In order to deliver crushed ore to the mill through the existing conveyor belt, the DMLZ block cave mine will construct two 1000?kW 1.6?×?2.3?m gyratory crushers with their own respective ore flow conveying systems underground. Each crusher is composed of top, middle, and bottom chambers with an ore bin. This system includes a series of high capacity conveyors approximately 5 km in length including transfer stations and support facilities.The development methodology required a combination of lateral development by jumbo drilling machines and vertical development by mechanised raise climbers (MRC) due to the complexity of the chamber design.This paper will discuss the project scope, design and development methodology, ground conditions, innovative survey controls, and the challenges faced due to the remote location.CITATION:Hernandez, E, Kusumohastuti, W and Agustian, I, 2014. Excavating the first underground Gyratory Crusher at the Deep Mill Level Zone mine, PT Freeport Indonesia, in Proceedings 12th AusIMM Underground Operators’ Conference 2014 , pp 43–50 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Mar 24, 2014

By D S Wallis

Northern Australia leads in world-class mineral deposits' is a bold statement. First there must be a starting point. Land north of the Tropic of Capricorn (23¦ 26' 5") will be regarded as Northern Australia covering nearly 40 per cent of the land surface of Australia. As opposed to land south of the Tropic of Capricorn, it should be regarded as Tropical Northern Australia and for the sake of brevity, (TNA) Refer Figure 1. Apart from the tyranny of distance from centres of power and population in the temperate zone, it suffered in the past from the belief that the tropics are unsuited for European workers and from the lack of infrastructure. Outstanding mineral deposits of iron, base metals, gold and diamonds, discovered and developed in the past three decades, provided the substance for the title. There are many world-class mines producing and there are mineral deposits neutralised through Government policy. TNA can maintain its lead in world-class mineral deposits provided Government policy will stop partitioning the land and decreasing that available for exploration. Let's look at what we have that is world-class. In Western TNA iron ore deposits at Paraburdoo, Mt Tom Price, Marandoo, gold at Telfer, diamonds at Argyle. In central TNA uranium at Ranger and Jabiluka, lead-zinc-silver at McArthur River, gold at the Tanami, manganese at Groote Eylandt and bauxite at Gove. In eastern TNA Mt Isa, Hilton, Century zinc-lead, bauxite at Weipa, gold at Kidston, Mt Leyshon, magnesite at Yamba and coal mines in the Bowen Basin. Those mines or deposits stand out yet are only an indication of the numerous lesser mines and of mineral deposits depending for development on market demand and/or changes in Government policy, eg 'The Three Mines' policy. Very large areas of mineral rich structures in the western, central and eastern parts of TNA are concealed below flat lying comparatively young unmineralised sediments. The Great Artisan basin sediments in eastern TNA can and do host oil shale and non metallic minerals. Nearly 40 per cent of western TNA is covered by the Great Sandy Desert. The Canning Track, with a series of 54 wells, was constructed by surveyor Alfred Canning in 1908 - 1910 with great difficulty. It extends 1700 kilometres from Halls Creek in the north to the gold town of Wiluna in the south, through the Great and Little Sandy Deserts. Gold explorers are following favourable structures extending to the north east below the sediments and sand hills covering the track. Half of central TNA's mineral structures are concealed by the Tanami desert and the Cretaceous sediments covering the pastoral regions of the Barkly Tableland and the Daly Waters to Top Springs pastoral areas. The Georgina Basin in the south eastern section is part of the concealment.

Jan 1, 1994

By H M. Ahmed, W S. Dunbar

Construction of cave mining systems requires significant capital expenditure and long-term commitment of human, equipment and material resources before production commences. Risks and uncertainties of these large-scale mining projects are significantly higher than for small-scale projects. This is due to the complexity and interactions of the construction schedule components and the large scale and uniqueness of such projects. One way to successfully manage construction uncertainties that would lead to schedule delays is to include a reasonable cost contingency in the budget estimation. A real options approach based on the least-squares Monte Carlo (LSM) method is used to estimate cost contingency associated with schedule uncertainty in mass mining projects. Cost contingency is estimated as the cost of potential project crashing (acceleration) decisions, which pays for not extending the schedule. While such a significant undertaking is expected to be subject to some delays, these can have an enormous impact on the economic value of such projects. The value of the crashing option was explicitly formalised into the process of valuation, as it is assumed to be a single option being considered in the valuation at every decision point prior to the construction completion date. As a part of the proposed method, a stochastic function for the percentage of remaining scope of work for the remaining duration of the entire project was integrated into a framework of numerical simulations. This ensured that this function can implicitly account for sources of schedule uncertainties for projects represented by multiple and overlapping work packages. The LSM method was applied to a real case scenario in an operating block cave mine, with modified scale and features. The results yielded by the LSM method indicated that significant changes in capital budget allocation stem from variation in a contractor’s risk perception and confidence level of estimated delays.CITATION:Ahmed, H M and Dunbar, W S, 2016. Budget estimation and contingency allocation of block cave construction using least-squares Monte Carlo real options, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 801–808 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

Recent legislation in the environmental field gives the mining industry an opportunity to take timely action to address its image. Shifting the focus away from mining (the activity) to minerals (the resource) will enable the mining industry to stand on equal footing with other industries and will help minimise the vulnerability to political and interest groupsÆ interference.

Jan 1, 1993

Blasting is an essential component of most mining operations, and is used to reduce the rock mass to a workable size distribution, as well as to create stable openings and pit walls. Frequently, there is little difference between the designs of blasts to achieve these two functions, though more advanced operations have developed different designs for these very different functions. To assist in the appreciation of how blasting practices can impact on the stability of rock openings and pit excavations, this paper reviews the role of high pressure explosion gases on final block stability. It is assumed that the stability of all surface and underground excavations are, to a greater or lesser extent, controlled by the interaction between discrete rock blocks. Typically, these blocks will be defined by either natural, or excavation induced, jointing.

Jan 1, 1999

By I M. Turnbull

QMAP (the Quarter Million Mapping Programme, 1:250 000 scale) is a geological mapping programme which will build a digital geological database of the whole country and publish maps and books to document it. The programme was established in 1993, following a recommendation by a review panel appointed by the Ministry of Research, Science & Technology, and is funded by the government, from the Public Good Science Fund. The relevance and fundamental value of QMAP lies in the greatly improved geological knowledge it will provide for researchers and other end-users of geological information.   QMAP research involves assessment of previous work, field and laboratory investigations in key areas, and data storage, manipulation and publication using Geographic Information Systems (GIS) computer technology. The QMAP digital database of New Zealand geology will be completed by 2006, as will the series of 21 full colour printed geological maps and accompanying explanatory texts. Two are already completed and published (Kaitaia and Dunedin), and six other projects are well advanced.   QMAP information will also be available in digital form. Next year we hope to expand the scope of the programme to cover the reconciling and linking of many other earth science databases to QMAP, because we believe this will create a powerful research tool. The intention is to develop internet access to the databases, to make the information publicly available.

Jan 1, 1997

Stringent environmental benchmarks imposed by governments and successful legal challenges in the country of origin have changed the risk profile for all mining companies over recent years. In developing countries, however, where high government standards may not always be in place, direct community action has often made worthless substantial investments in otherwise viable mining operations. Real limitations are therefore imposed from these risks on all areas of mining activity, wherever they may be. Thus, the bar has been raised for all companies developing or operating mines. This paper argues real financial and global industry reputation benefits accrue when all known environmental risks, where practical, are managed. In response, among major international mining companies, as the industry moves towards greater global consolidation, senior management teams have increasingly adopted corporate governance standards including æTriple Bottom LineÆ (shareholder/government/community) sustainability reporting. Sustainability reporting is encouraged by improved international stockholder and financial investor perceptions by contributing to lowered social, community and geopolitical risk which lowers the cost of access to funds as well as improving staff morale and productivity. New mines must not only be primarily financially viable but must operate throughout in a sustainable way. Case studies of some recent mining operations, who have not foreseen or proactively managed major environmental risks, demonstrate the dire financial and personal implications for managers, directors and shareholders from not identifying and managing these environmental risks. Merely having a corporate policy statement on environmental standards or high level Government approvals process for a mining activity does not preclude mining operations from the risk of direct action by local populations or future adverse legal implications from risks which were perhaps identified but not mitigated effectively. Methods and processes for the identification and active management of environmental risks in the global arena are discussed to add a practical element to sustainability, based on the authors recent strategy development processes with governments and major mining houses such as BHPBillition, Rio and Xstrata. Emphasis is placed on proactive, innovative yet practical solutions which, where possible, show positive contributions firstly to the financial bottom line but also the community at large.

Jan 1, 2003

The area between Merrygoen and Digilah is located on a structural high that separates the Sydney Basin from the Great Artesian Basin, and hence the stratigraphic succession of younger rocks overlying the basement is relatively thin. The stratigraphy is briefly described and it is shown that fluvial sedimentation prevailed from Upper Permian through to Middle Jurassic times. Flint clays occur in the Permian, Triassic and Jurassic but only those in the Jurassic appear to have commercial value at present. The chemical, mineralogical, and physical properties of the flint clays are discussed.

Jan 1, 1973

By J D. Goldsworthy

The McPhee Creek bedded iron deposit is a recent discovery made by Giralia Resources NL (Giralia) in the northern Pilbara of Western Australia. The deposit lies 30 km north of the town of Nullagine along the southeastern margin of the East Pilbara Granite-Greenstone Terrane (EPGGT).The McPhee Creek area is located in the Kelly Greenstone Belt in the southeastern part of the EPGGT. The Archaean aged greenstone belt consists of volcanic and sedimentary sequences including the Warrawoona Group and the Gorge Creek Group. The McPhee Creek iron ore deposit lies within banded iron formation (BIF) rocks of the Gorge Creek Group. The structure of the McPhee Creek area is dominated by a northeast trending, upright synform (Sandy Creek Syncline) and associated folding that is truncated by northeast trending faults in the east. Iron ore mineralisation is predominantly stratabound and follows the dip of the bedding – however, in some areas, particularly in the southwest of the deposit, mapped steep to moderate dips of bedding planes are at odds with underlying fl at mineralised zones in drill sections. Zones within the deposit that contain substantial thickness of iron ore correspond to areas of complex folding suggesting structural control and iron enrichment in fold hinges. Petrographic analyses confirm mineralisation is goethite dominant and the deposit is strongly supergene enriched.Giralia initially identified iron ore potential in the McPhee Creek area through the presence of a small known channel iron deposit (CID) mesa. Giralia began exploration in 2008 by re-drilling a portion of the CID (subsequently named Crescent Moon) and reported a small low-grade Inferred Mineral Resource. Target generation in the wider area utilising Geological Society of Western Australia maps and Ikonos satellite images identifi ed strongly ferruginous outcrops associated with major structures along an 8 km long range located 2.5 km to the west north-west of the Crescent Moon CID deposit. In late July 2008, a total of 62 rock chip samples were collected during a helicopter supported sampling program conducted at McPhee Creek. Samples taken from haematite-goethite enriched BIF and canga zones outcropping intermittently over the 8 km length of the western and central areas of the prominent range assayed up to 63 per cent Fe. These zones represent the discovery outcrops and surface expression of the McPhee Creek main range iron ore deposit.Follow up sampling, geological mapping, bulldozing of access tracks and ramps and reverse circulation (RC) drilling commenced in September 2009. A maiden Inferred Mineral Resource was announced by Giralia to the Australasian Securities Exchange (ASX) on 15 December 2009.The current Indicated and Inferred Mineral Resource at December 2010 stands at 260 Mt grading 56.2 per cent Fe, 0.12 per cent P, 6.7 per cent SiO2, 2.3 per cent Al2O3 and 9.5 per cent LOI at a 50 per cent Fe cut-off. McPhee Creek is one of the largest iron deposits found in Archaean BIF in the northern Pilbara.

Jul 11, 2011

X-ray analysis of polycrystalline powder samples has grown beyond its roots in the world of laboratory research and is now regarded as one of the most powerful industrial process-control tools in the field of building materials. This is the key to characterise the element and crystalline phase composition of the material. This is due largely to the development of industrial X-ray analytical systems such as PANalyticalÆs twin solution, which has transformed the advanced analytical techniques born in the laboratory into a robust, workmanlike and easy-to-use tool for todayÆs heavy industries. The increasing use of alternative fuels makes the Bogue method less reliable. Therefore, the real phase quantification by the Rietveld method is the only choice. Additional fine-tuning of the Rietveld method by using alternative methods guarantees the most accurate quantitative results. Moreover, the recent development of ultra high-speed X-ray detectors allows for æon the flyÆ quantitative X-ray diffraction analysis and a truly interactive process and quality control.

Jan 1, 2008

By Miles M. J, Sandy D. A

It has long been known that drilling and blasting operations have a direct influence over productivity and costs of subsequent operations. If mine management is to effectively optimise blasting operations, good information is required on the operating costs of each of the affected operations, together with knowledge of how they are influenced by blasting. In practice it is not possible to do enough repeats of a full scale production blasting experiment to make a statistically significant analysis of the results. By monitoring each blast and subsequent operations in as much detail as possible, enough data will be available to effectively measure the effect of blasting on costs. This gives management an insight into the blast performance and is the first step towards optimisation. An Integrated Blast-related Cost Reporting System has been developed at the Rossing Mine Open Pit, which calculates the total mining cost for each blast. In assessing the total mining cost for each blast, use was made of an.integrated planning and management information system to collect relevant production variables, current operating costs and survey data. An automatic image analysis system was employed to measure the fragmentation of the blasted material in the back of haul trucks. A shovel monitoring system is also under development for use in assessing the muckpile diggability and, in conjunction with an appraisal of shovel component reliability, to estimate the maintenance cost under various digging conditions.

Jan 1, 1990

By L Bartsch, M Kelahan, E Wingate, J-S David

The use of column flotation cells for recovery of phosphate is becoming more common practice in certain parts of the world (Brazil, Russia) where igneous phosphate ores are processed. Igneous phosphates are generally finer grained (< 200µm) than some of the traditional sedimentary phosphates (<400µm). Australian phosphate from the Georgina basin is sedimentary, but has a much finer grain size (typically < 106µm) than similar deposits in North Africa and the USA.In 2013, Arianne Phosphate completed a bankable feasibility study for the development of their igneous phosphate deposit at the Lac a Paul site in Quebec. Initially, lab test work and bench scale piloting indicated that using traditional mechanical flotation would be able to produce adequate concentrate grade and an economic level of recovery, but would necessitate the installation of a complex and operationally challenging flotation circuit. Later pilot plant testing using column cells resulted in a significant reduction in process complexity and facilitated the processing of the -20µm ore fraction which resulted in a 10% increase in P2O5 recovery and a 5% increase in concentrate grade %P2O5.Flotation column testing achieved a concentrate grade of 38.6% P2O5 at a P2O5 recovery of 90%. Using a mechanical flotation cell circuit, the concentrate grade was 36.4% P2O5 with a P2O5 recovery of only 78.8%. A noticeable feature of the testing was the simplicity of the column flotation circuit configuration (Rougher + 2 stages of cleaning + Cleaner Scavenger) compared to the mechanical flotation cell circuit (Rougher + Scavenger + 3 stages of cleaning).The financial benefit for this case study was estimated using a sales price of US$ 195/t FOB for a 38.6% P2O5 product, and an assumed cost of production of US$ 95/t, the netback price is calculated at US$100/t. For a daily milling rate of 55,000t/d, the improved flotation performance provides additional concentrate production of 1,203t/d. Using the netback price calculated above, this calculates to additional gross profit of US$ 120,260/d.Annualised, this equals US$ 40.7 million in additional revenue for a similar or reduced CAPEX.The use of column flotation on fine grained phosphate ore types often requires fine grinding and desliming to liberate the phosphate value, such as the Australian sedimentary phosphate ores. This may enable the development of deposits previously regarded as uneconomic.This paper discusses the potential benefits available to operators, and developers of new projects, for the use of column flotation cells in their metallurgical circuits as assessed by an engineering company.CITATION:Wingate, E, Kelahan, M, David, J-S and Bartsch, L, 2015. Does it make cent$ to use flotation columns for phosphate beneficiation?, in Proceedings MetPlant 2015, pp 353–365 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 7, 2015

By Watson D. F

P S B Stewart has rightly pointed to a possible obscurity in our paper on drilling patterns, viz. in comparing the improvement of a triangular drilling pattern over a square one, we used percentage improvements without always making clear their base. We hope, however, that other readers, like Stewart, have been able to understand the particular meaning from the context.Although different methods of estimation of an ore deposit will have different local bias (Philip and Watson, 1985), the critical relationship affecting the reliability of estimation of an unsampled location is the scale of local variation of the variable being estimated in comparison with the density and isotropy of sampling. This relationship overrides all other considerations.

Jan 1, 1985

By R H. Yoon, M Gupta, A Noble, K Huang

Froth flotation is the most commonly used separation technology in the mineral industries. Given the complexity of the pulp and froth phases as well as the multitude of operational parameters that influence flotation performance, purely fundamental models with strong predictive capacity are limited. As a result, accurately modelling modifications to an existing flotation circuit are challenging, particularly when using empirically-derived models from a different operating configuration. Despite these complexities, a recent publication by the authors (Huang et al, 2022) has shown that flotation rates can be accurately predicted from a first-principles model that incorporates hydrodynamic parameters (eg pulp density, superficial gas velocity, feed flow rates etc), surface chemistry parameters (eg contact angle, zeta potentials and surface tension), and size-by-class liberation data. Circuit simulations using this model were shown to be effective in predicting experimental graderecovery curves from the size-by-class mineral liberation matrix. Since the model is derived from fundamental characteristics of the flotation system, it can be used to simulate alternative circuit configurations with varying degrees of recycle. Conventional flotation circuits are operated in a closed-circuit configuration by routing the cleaner scavenger tails (CST) back to the rougher feed to provide an additional opportunity to recover the slow-floating particles. This widely-used flotation strategy has been under constant debate, and several researchers have provided evidence that open circuit configurations provide higher separation and better circuit control (Konigsman, 1985; Bulatovic et al, 1998; Thompson, 2016). Recently, Finch and Tan (2021), used linear circuit analysis to show that open circuit configurations have a fundamental advantage when stage recoveries are high. Given the limitations of these prior studies, the objective of the current work is to further evaluate the merits of the open circuit configuration through a detailed circuit analysis and simulation study incorporating the first principles model described above.

Aug 24, 2022

By L Olivier, R J. Lowther, J L. Lett, I Brunton

Hydraulic fracturing to precondition the orebody to enhance rock mass cavability is gaining acceptance in underground cave mining applications. Assisting cavability is becoming important as an increasing number of cave mines are being implemented in hard, deep and competent rock masses where clamping stresses are higher and cave column heights may be in excess of 1000 m. Propagating large caves to surface in such conditions can be challenging as risks such as slowed propagation and air gaps can develop during the process.Underground-based hydraulic fracturing is routinely used at Cadia East as a means of preconditioning the orebody to assist in cave propagation, fragmentation and seismicity reduction. This paper presents a summary of a surface-based hydraulic fracture program that was successfully implemented to assist in the propagation of the Cadia East Panel Cave 1 (CE-PC1) cave to surface through competent overlying rock masses. In this case study, the propagation of the CE-PC1 cave slowed as the cave grew past 750 m in height, initiating a Trigger Action Response Plan regarding the cave propagation rate. Surface-based hydraulic fracturing was subsequently used to stimulate the cave to propagate through the final 450 m to surface. The paper details the equipment, strategy, implementation and risk management involved in the program as well as the key learnings.CITATION:Lowther, R J, Olivier, L, Lett, J L and Brunton, I, 2016. Implementation of a surface-based hydraulic fracturing program to successfully propagate a large cave through hard, competent near-surface rock masses to achieve breakthrough, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 83–96 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By C Verdel, M Lee, A Oorloff, K Welsh

"An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation. The Thomson Orogen is a large but poorly understood element of Queensland geology. Extensive cover conceals the Thomson Orogen at depth, thus limiting studies to a small number of surface exposures. Previous studies of the northern Thomson Orogen have been restricted to the largest of these exposures in the Anakie Inlier and Charters Towers Province. Less extensive exposures, including Mt McLaren in east-central Queensland, are largely overlooked and poorly documented. Fieldwork suggests that Mt McLaren is a west-tilted fault block of Thomson Orogen metasediments that are at least 2200 m thick. The substantial thickness of these sediments (which we have named the Mt McLaren Formation) and the consistent shallow marine facies throughout the block suggest deposition in an actively subsiding basin. Initial dating of detrital zircons places deposition of the Mt McLaren Formation in the Late Cambrian to Early Ordovician, allowing correlations with formations of similar composition and age in the nearby Anakie Inlier and Charters Towers Province. Both of these areas have a long history of mining and exploration for gold and base metals, suggesting that correlation of basement sequences across these areas could be beneficial for exploration models of the Thomson Orogen as well as for tectonic models of eastern Australia.CITATION:Lee, M, Verdel, C, Welsh, K and Oorloff, A, 2015. Stratigraphy of the Thomson Orogen – new insights from Mount McLaren, north-east Australia , in Proceedings PACRIM 2015 Congress, pp 551–556 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 18, 2015

The variation of carbon monoxide and hydrogen utilization with the amount of the reductant in the blast furnace bosh gas was investigated for the No. 4 blast furnace at The Broken Hill Proprietary Co. Ltd.iron and steel works. Newcastle. The degree of CO utilization decreased with increasing CO in the bosh gas; the H., utilization increased with the H., content of the gas. Empirical relationships for CO and H., utilization are proposed.H2, is 3-6 times as effective a reductant as CO at present levels of CO (34-39 per cent) and H2 (6-10 per cent) in blast furnace bosh gas. H2, gas injection into the blast furnace is proposed as a means of lowering the coke consumption, and the economics of H2 injection are evaluated.

Jan 1, 1975

By J Meikle

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

Jan 1, 2006

By C Tonkin, S D. Howell, P V. Johnson, J Moriarty, P W. Duck

This paper presents the scientific framework underpinning the resource valuation and optimisation model (RVOM). The RVOM is a partial differential equation based real options software package, which helps mine owners optimally plan their operations, understand their project risks, and make defensible valuations. This is achieved in the presence of both financial and physical uncertainty, as well as processing capacity constraints. The RVOM can be applied to any multi-ore mine, open pit or otherwise, where the block-order of extraction has already been planned using existing software tools such as the Gemcom WhittleÖ strategic mine planning package. The RVOM can also take account of multiple commodities within a single mine, and multiple forms of price behaviour. The three key outputs from the RVOM are: valuation, optimal decision and probability of decision. A decision takes account of upfront costs, and can include an unlimited number of transitions between: normal operation, expanded operation, care and maintenance and abandonment (and variants thereof). The RVOM then employs stochastic process theory to determine the probability of reaching these decisions. This gives the mine operators clear indications as to where their risks lie, aiding their mine planning. A clear example of the RVOMs usage to a case-study gold mine is presented, demonstrating its broad applicability, the added value it can create and how users can easily make use of the RVOMÆs state-of-the-art algorithmic engine.

Sep 26, 2011

By Walsh V

The Australian economy has been adversely affected by the hesitation in developing countries to commit to the construction of .new coal-fired power stations. World coal trade which was expected to grow at an appreciable rate has stagnated, world export coal prices have plummetted, and facilities in place in Australia for the production and export of coal are being underutilized. While in some countries this hesitation has been caused by a reduction in electricity load growth, another cause has been the unduly long lead-time imposed on developing countries by the conventional "Banker's Approach" to the planning and initiation of commitments to finance and construct coal-fired power plants. In some countries electricity growth has been met by increased usage of indigenous energy resources, even though this involves costs in excess of imported coal-fired power generation. The avoidance of foreign exchange commitments in these cases can however be desirable. In many other developing countries however, fuel oil continues to be used for power generation at a cost in foreign exchange of up to 50% above the total cost of coal fuel plus capital to construct a new coal-fired power station. The conventional "Bankers Approach" to new power station planning imposes the need for successive feasibility studies to satisfy the normal processes of international development lending agencies. No feasibility study can however, show how keen vendor countries may be to win major power plant contracts; and no feasibility study can determine whether the power station eventually procured will be one of the more reliable, at better than 80% availability, or one of the more unreliable at worse than 60% Availability.

Jan 1, 1987