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By K A. Campbell, K A. Rodgers

The Plumduff sinter occurs at Whenuaroa, near Puhipuhi, approximately 30 km north of Whangarei. It is one of three residual sinters in the southern portion of a mid- to late-Pliocene geothermal system. The deposit consists of many large sinter breccia boulders, including rudrocks (coarse breccias), scattered around the flanks and summit of the small conical hill of Plumduff. Three types of sinter breccia occur: (i) rudrocks consisting of large, angular to sub-angular clasts of layered sinter up to 0.8 m across, as well as smaller clasts of sinter (20 - 100 mm dia), and fragments of stromatolitic structures; all clasts are supported in a matrix of microcrystalline, transparent to translucent to milky quartz; (ii) fragments of layered angular to irregularly mottled sinter of white to grey or bluish hue supported in a translucent to opaque silica matrix; (iii) smaller, matrix-supported breccias with clasts both partially surrounded and/or penetrated, by a clay-like weathering rind, and sinter conglomerates with rounded to oblate clasts. Three principal types of fabrics constitute the bulk of the sinter: (i) stromatolites, including columnar, palisade and filamentous networks, showing progressive silicification, in fenestral, tufted to clotted fabrics; (ii) peloids and pisoids; (iii) plant-rich facies in which various silicified plant species occur in a silica matrix. All fabrics have counterparts in hot spring deposits in the Taupo Volcanic Zone formed at temperatures from 75¦C to 35¦C. Also present is steam-condensate-produced alteration: kaolinite and alunite as well as boulders of quartz lattice texture. Cinnabar only occurs in sinter on the north and south central slopes of the hillside. No quartz veins or geyserite were recognised.

Jan 1, 2001

Geological maps, data, and prospectivity analysis relevant to mineral exploration in New Zealand have recently been released. Regional-scale geological mapping is increasingly available for the country through the QMAP 1:250 000 Geological Map of New Zealand programme. Published QMAP sheets Greymouth, Wakatipu, Waitaki and Dunedin cover large areas of interest for mineral exploration companies. The QMAP geological data are also available in digital form for use with other digital datasets using GIS software. Crown Minerals, in cooperation with GNS, have completed two gold prospectivity studies; the first covering mesothermal gold in the South Island, and the second encompassing epithermal gold in northern New Zealand. These studies have defined areas of interest for these two mineralisation types and assembled geological, mineral occurrence and production, geochemical, geophysical, topographic and cultural data into projects for use with GIS software. Included are the results of prospectivity modeling for gold using these data and specific mineralisation models. The prospectivity studies and relevant data are freely available on CD through Crown Minerals and are intended to encourage mineral exploration in New Zealand.

Jan 1, 2003

The Golden Cross mine is situated in a sensitive environmental setting on the North Island of New Zealand, about 150 kilometres south-east of Auckland and about 8 kilometres NW of Waihi. The mine is situated in dipping topography, with volcanic ashes making up soils, fault zones running through the area, and rainfall of about 3 m per year on average. Water management is the most demanding environmental challenge on site, and a comprehensive programme has been put in place to address tailings deposition, long term tailings storage, and water treatment during and after operations.   The tailings impoundment is built with an underdrainage system that collects groundwaters and waters that seep through the impoundment. The embankment and impoundment are both built to withstand the Maximum Credible Earthquake and the Probable Maximum Flood. Tailings are treated to remove cyanide and to decrease metal solubility to reduce long term risk to water quality after mining. A state-of-the-art water treatment plant is utilised to treat water from the underdrainage system and water decanted from the top of the tailings pond and stormwaters to remove residual cyanide and metals to extremely high standards with a great deal of reliability and at reasonable cost. Closure of the facility addresses long term post mining water quality issues, and rehabilitation of the area with wildlife habitat as a priority.

Jan 1, 1995

By A G. Thompson, E Villaescusa, A De Zoysa, J R Player

Ground support performance is critical to the safe and economical extraction of ore. This is particularly important for mass mining extractions at great depth, which are currently being considered by a large number of mining companies worldwide. As the in situ stresses concentrate around critical excavations, failure occurs at the excavation boundaries and ground support is required for the excavations to remain safe and accessible for their intended lifespan. Ground support consists of reinforcing elements that are installed within the rock mass to modify its internal behaviour (generally to within one excavation radius) and surface support elements that are installed at the exposed boundaries to retain the failed pieces of rock. For surface support to be effective, the loadings need to be transferred to the reinforcing elements; however, the combined performance of rock bolts and mesh is poorly understood in terms of the energy dissipation capacity available for a typical ground support scheme implemented at most mass mining operations.Over the last 15 years or so, a large number of large-scale laboratory experiments have been completed at the Western Australian School of Mines (WASM) Dynamic Test Facility for reinforcement systems and surface support systems loaded separately. The objective of more recent testing has been to establish the combined energy dissipation capacity of typical and enhanced reinforcement systems combined with mesh surface support. Total energy dissipation has been separated into energy dissipation attributable to the reinforcement and to the mesh. The results of the tests are presented and compared with the existing WASM design demand and capacity guidelines.CITATION:Villaescusa, E, De Zoysa, A, Player, J R and Thompson, A G, 2016. Dynamic testing of combined rock bolt and mesh schemes, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 789–798 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By A M. Lechner, S Arnold, M J. Gillespie, P D. Erskine, D R. Mulligan, A T. Fletcher, A Gordon

Mine ecological monitoring schemes are often conducted only to address compliance and in some cases do not have the sufficient statistical power or understanding of ecological systems to assess, quantitatively, the meeting of rehabilitation targets or mine impacts. Monitoring schemes for rehabilitation commonly rely on analogue sites or premining baselines (reference sites) to assess whether rehabilitation sites are ecologically similar and thus successfully rehabilitated. In the case of monitoring for mine impacts, if the impacted sites diverge from reference data, the site is considered to be impacted. Fundamental to any monitoring scheme is testing the sampling design to ensure that it can detect these differences if they are present through adequate sample sizes (ie statistical power). However, a good understanding of the ecological system is required to ensure that differences detected are ecologically significant. Modelling ecosystem properties can provide a quantitative understanding of how ecosystems change over time and space, in response to natural environmental variations and thus aid in determining significant ecological differences. Furthermore, modelling methods can be used to predict future ecosystem states. Within the ecological literature, guidelines for robust statistical monitoring designs and modelling methods exist but are not routinely being used in the mining industry. This paper uses simple examples to discuss: problems with current compliance monitoring methods; importance of robust statistical techniques; and how modelling can assist rehabilitation assessment and guide monitoring schemes. The aim of this paper is to describe general monitoring and modelling methods that could be potentially used for mine site monitoring and closure assessment. These methods are often considered by mining companies as an extra expense that provide little practical benefit, and the domain of academia; however, engaging these methods may be more cost-effective in the long-run than conducting untargeted monitoring schemes that give no confidence to regulators on whether rehabilitation criteria have been met. Furthermore, monitoring programs in mining contexts provide a good opportunity to better understand long-term ecological patterns and test the application of more rigorous modelling approaches as the life of many mines tends to be greater than ten years.CITATION:Lechner, A M, Arnold, S, Fletcher, A T, Gordon, A, Erskine, P D, Gillespie, M J and Mulligan, D R, 2012. Embracing modern ecological methods - Monitoring and modelling for mine closure, not compliance, in Proceedings Life-of-Mine 2012 , pp 25-32 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 10, 2012

By K A. Bunker, A D. Campbell, E Ah Mu, A R. Penney

The Ernest Henry mine is a transverse sublevel cave (SLC), which is relatively unique due to the 45 degree inclination of the orebody. To economically recover ore, each sublevel is horizontally offset from the previous level by around 25 m, depending on the orebody geometry. Mine development, slotting and initial production within this zone occurs in a high stress abutment that increases in magnitude at depth. These areas are seismically active and close to the hanging wall where cave propagation is yet to initiate. High stress conditions and the close proximity to the cave seismogenic zone results in challenging geotechnical conditions in the step out zone of each level and requires management of hazards including stress driven rockfalls, rock bursts and pillar failure.This paper outlines how these hazards were forecast using numerical modelling and geotechnical monitoring. Risk management techniques included dynamic ground support design, development of a new mine layout and extraction sequence as well as delayed re-entry into seismically active areas. Ongoing monitoring, instrumentation measurements and field observations were used to track the effectiveness of the controls.Future production levels are forecast to experience increasing stress and seismicity, which will increase demand on excavations and installed ground support. Ensuring the techniques and controls for monitoring, measuring and mitigating stress and seismic hazards are enforced is essential for continued safe production.CITATION:Campbell, A D, Bunker, K A, Ah Mu, E and Penney, A R, 2016. Managing stress and seismicity in an inclined sublevel cave, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 319–328 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By T P. Fischer, S N. Williams, N C. Sturchio

Chemical and isotopic analyses of fumarole gases from Galeras Volcano, Colombia provide significant insights into the origin of volatile components in the magma. Water comprises a mixture of magmatic (rock-equilibrated at high temperature) and meteoric, with the relative proportions varying through time. Carbon isotopes are most consistent with a mantle source, although other contributions to the system cannot be ruled out. Nitrogen most likely originated from organic matter in subducted oceanic sediments. All of these 'primary' components have been modified somewhat by interaction or exchange with other reservoirs during ascent to the surface. In addition to information on the origin of the gases, these data show significant temporal variations precursory to eruptive events. Chemical ratios change and water becomes more meteoric in character prior to eruptions.

Jan 1, 1995

By K J. F Logan, P W. Leaman, B A. Tucker

"An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation. The Nam San copper-gold deposit was discovered in 2011 and is a likely blind extension of the Permian age Phu Kham structurally deformed porphyry/skarn copper-gold deposit.The Nam San mineralisation is hosted within a dominantly sericite altered schist unit located to the north of the current Phu Kham open pit operation and is overthrust by an allochthonous barren cover sequence of limestone, granite and sandstone. Reinterpretation of the Phu Kham geology developed the concept of a possible telescoped porphyry copper-gold system at depth. Initial drilling intersected remobilised copper mineralisation in a basal conglomerate, confirming the concept. A reconnaissance vector array induced polarisation (IP) survey identified a deep chargeability anomaly from which a drilling target was developed from 3D inversion modelling of a detailed follow up dipole-pole-dipole anomaly. Drilling of the chargeability anomaly intersected the blind Nam San copper-gold mineralisation beneath the thrusted cover sequence.The key discovery parameters are the result of an integrated exploration program that included reinterpretation of the local stratigraphy, which developed the concept of a deep blind orebody, IP surveys capable of penetrating through the barren cover and a commitment to a deep directional drilling program to test these concepts and targets. The inferred resource remains open at depth, and further assessment will most likely be through underground development.CITATION:Leaman, P W, Tucker, B A and Logan, K J F, 2015. The discovery of the Nam San copper-gold deposit, Phu Kham, Laos, in Proceedings PACRIM 2015 Congress, pp 515–520 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 18, 2015

By Y Zhuang, S La Brooy

The selection of the optimum process route for a new project has traditionally consisted of investigating existing options and ranking them in terms of cost, technical risk and environmental acceptability. With the current focus on sustainable development other factors now need to be considered. Life Cycle Assessment (LCA) of the process options can be used to extend the assessment in terms of their potential for earning renewable energy credits and in judging their ability to achieve greenhouse gas emission reductions. A rigorous life cycle assessment is demanding in terms of setting the baseline for comparisons and evaluating the elements that make up the emission profiles of the process options. However, a simplified LCA can provide a useful tool for comparing different process options. This approach can be combined with traditional assessment criteria to rank the options available to the project. GRD Minproc has been intimately involved in executing LCA calculations for different municipal waste treatment options. This paper applies a similar LCA methodology to investigate the greenhouse gas implications for different options for copper processing. The process options considered are:concentrator û sale of concentrate to smelter, concentrator û on-site mini smelter, and concentrator û leach SX/EW. The paper then goes on to consider the operating cost implications that could arise with the introduction of carbon taxes or carbon credits and how these might impact on the future choice of flowsheet.

Jan 1, 2002

By T King

This paper reviews the changes in the coal industry over the past 30 years and attempts to predict the trends over the next ten years. The last 30 years have seen a steady concentration of production into fewer, larger mines, which operate on 3: more continuous basis, and a major increase in productivity per employee. Coal exports have increased from zero to almost half the country's total production. As well as major changes in exploration and mining equipment and the increasing use of computer tools, the industry now operates in a relatively new regulatory and commercial environment.   Safety legislation now requires the writing and enforcement of policies and procedures by the mining companies, rather than adherence to inflexible regulations enforced by an Inspector. Accident rates have decreased dramatically. The transition from coal mining licences to permits, requiring landowner consent and resource consents, is well under way. Environmental controls are now an essential aspect of the industry.   Equipment suppliers now offer maintenance services, production guarantees and flexible financing.  Contract miners offer mine design and restoration as part of the contract. In a similar approach, Solid Energy now offer an ash disposal service and assistance with resource consents to their customers as well as investment in technology to ensure a consistent product to demanding specifications. Solid Energy has proposals for energy centres which install and operate the coal burning appliances and simply sell energy to the customers. The next 10 years should see an intensification of these trends of bigger mines, more exports and greater technology and a 'package' approach to customer service.

Jan 1, 1997

By K G. Harding, A Osman, A du Toit, F K. Crundwell, C M. Sheridan

"Most mineral processing plants have high water requirements for their operational activities. These plants often function in an environment where water is becoming increasingly scarce. An increase in population will result in an increased demand for water; potentially beyond the limits of supply and hence increased competition for the resource. In South Africa, Gauteng and the North West Province are likely to be first to experience a shortage of potable water.In order to avoid a water crisis, efforts must be made to ensure the effective management of water resources and the minimisation of wastage. Hydrometallurgical plants have a responsibility to society and the environment to operate in a sustainable manner - reducing their water requirements will certainly assist towards developing a sustainable footprint.This project improved site water management by: surveying the potable water and storm water systems with a view to assessing the current water accountability and determining methods to improve accountability determining the monthly and yearly water balance for the site and presenting it in the form of a water balance sheet drawing up an input-output and operational model in accordance with the Minerals Council of AustraliaÆs æWater Accounting Framework for the Minerals IndustryÆ calculating the water footprints of the refinery identifying ways in which water savings could be achieved recommending management systems for water usage monitoring.This work was conducted in South Africa. The value of this work lies in that it established the current baseline and assisted in developing management systems that can reduce water usage sustainably.CITATION:Osman, A, Crundwell, F K, Harding, K G, Sheridan, C M and du Toit, A, 2013. Water accountability and efficiency at a base metals refinery, in Proceedings Water in Mining 2013, pp 277-286 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Nov 26, 2013

By Brotzmann K, Turner RE, Philp DK, Rusden RC

New approaches in the last decade have led to the supplemental use of raw coal as a direct energy source in several iron and steelmaking processes. The dependence on more expensive coke and electricity is being progressively reduced. The Technology Venture of Klockner Werke and CRA has pionered several of these developments and is pushing ahead to processes for scrap melting and direct smel- ting of iron where coal is the ONLY energy source. Such complex developments depend strong- ly on the experience gained in the simpler but related processes for coal use already in operation. The longer term implications of a successful coal-based direct smelting process for the world steel industry are substantial.

Jan 1, 1986

The nation of Fiji is located the South Pacific on the æRim of FireÆ some four hours flying time from the eastern sea board of Australia. It is a tourist destination situated on the main route from Australia to the Americas. Fiji is a developing country that has had a fewsetbacks but the country has able, happy people that are very resilient. Most importantly, the country is a safe destination for tourists and businesspeople as the local people are friendly, have good ethics, and most speak English. Fiji is a very willing nation, hungry for knowledge and advancement. The Fiji geological setting on the æRim of FireÆ, that runs from New Zealand across the Pacific through Fiji and on to Papua NewGuinea, has many large deposits of gold and copper. Fiji is an exciting destination for mineral explorers with discoveries of gold, silver, manganese, bauxite, iron and copper. Gold was first discovered in 1921 and the first two mines opened in 1935; one of which was Emperor Gold Mining Company (EGM) the other being Mt Kasi. EGM mines gold on the margin of the Tavua caldera, some 85 km north of the Nadi international airport. EGM has operated continuously for close to 70 years, producing approximately 6.9 million ounces of gold and has an underground reserve of 847 600 ounces with a total mineral resource of 12 335 600 tonnes at 10 g/t (as given in the Emperor Mines Limited Annual report 2003). The mineralisation in Fiji is very exciting and it is common to discover spectacular intersections and outcrops, which are typical for this type of epithermal narrow vein mineralisation, but be aware that the orebodies are variable and not easy to understand.

Jan 1, 2004

By Conochie D. S, Grave N. C

Disposable-tip emf cells at present used in liquid steel can be used to measure the state of oxidation of high-iron slags produced in non-ferrous smelting. This provides a new tool for the control and evaluation of pyrometallurgical operations.An investigation of oxygen potential variations throughout a typical nickel smelter using the flash smelting technique gave a valuable insight into the process. Correlations of oxygen potential with ferric to ferrous oxide ratio and nickel content in slag were in reasonable accord with equilibrium data in the literature indicating that the probes may be used both as a plant investigation tool and possibly as a means of obtaining thermodynamic data for slags.

Jan 1, 1979

This paper is in two parts. The first part provides background to coal in New Zealand, information on Solid Energy the Company and details of the resources, mines and products of the company. This part of the paper is intended for people who have limited knowledge of the New Zealand coal scene. The second part of the paper focuses on developments underway in New Zealand and discusses planned or possible changes and opportunities. This paper was first presented at the Coaltrans Asia Conference in June 2000.

Jan 1, 2000

By J Joy, A Bye, G V. Kizil

This paper demonstrates an application of a recently developed Risk-Cost-Benefit (RCB) Framework to environmental risk management in the mining industry. The environmental application of the RCB Framework as part of an ACARP project (Kizil, Bye and Joy, 2012) involved a thorough selection process with site visits and in-depth discussions with the case study siteÆs environmental management team. Under their guidance, the highest risk of environmental impact at the case study site was identified as æroad subsidenceÆ at the time when the project work was undertaken. This paper presents the unique application of the RCB Framework to examine the risk of mining-induced subsidence and its impact on one of AustraliaÆs busiest highways, with a traffic volume of 38 000 vehicles per day (NSW RTA AADT, 2008). The RCB Framework was employed to assess the optimum group of controls for road subsidence risk management to ensure highway availability while mining occurs. Whilst this paper focuses on road subsidence, the methodology employed can be directly applied to other environmental concerns including preparation for mine closure, rehabilitation planning and waste management. The RCB Framework incorporates mathematical modules which were developed to enable complex yet tightly integrated RCB calculations. The process integrates the risk-control effectiveness assessment to determine that the selected safety initiative is financially beneficial to the mine site and company. This concept has been applied to a number of high-risk mining areas targeting safety, productivity and environmental issues. This paper introduces the five-staged RCB Framework, incorporating the RCB tools RCBGEN (Risk-Cost-Benefit Generator) and RCEMETHOD (Risk-Control-Effectiveness Method), and demonstrates its practical application to the risk management of a road subsidence case study. The case study looks at potential pavement damages, in particular, the occurrence of pavement stepping on the surface of the highway as a result of vertical subsidence. This type of road damage was previously experienced at another major inter-city route while underground mining occurred in the region where the case study site is located. The RCB Framework has been successfully applied to the analysis of the road subsidence case study and determined the risk reduction and financial benefits of implementing a range of risk-controls. User-friendly RCB Charts to provide an aid for decision-making were produced. The value of using the RCB charts to achieve balance between risk, cost and productivity in the decision-making process for risk management has been explained. The case study determined that pavement slots and fibre-optic cable monitoring were relatively low-cost and effective controls applied in the mining industry for the first time at a global level.This paper supports the industryÆs ongoing efforts to manage risk to ALARP (as low as reasonably practicable) and achieve æzero harmÆ by providing a new Framework to more effectively establish the adequacy of controls.CITATION:Kizil, G V, Bye, A and Joy, J, 2012. Application of risk-cost-benefit analysis to highway subsidence due to mining, in Proceedings Life-of-Mine 2012 , pp 197-206 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 10, 2012

Chromite ores have a long history of low pricing and for AustraliaÆs only chromite mine this has been a particularly tough challenge, especially as the mine is located nearly 400 km from the nearest port at Port Hedland. A stockpile of chromite fines (-16 mm) has been built up since 2003. The opportunity to develop a facility to treat this material to produce a chip (-16 + 1 mm) product and a sands (-1 mm + 45 micron) product was taken when the price increased to above US$140/t. A simple add-on plant containing a heavy media cyclone circuit for the chips and a spiral circuit for the sands was designed and developed. During construction of the fines plant the price of chromite reached a level where the payback for the entire project was less than eight weeks. Soon afterwards the price and the demand for chromite plummeted and the site was put on care and maintenance, except for the commissioning of the fines plant. This put considerable pressure on whether to continue to operate the plant or to place it in care and maintenance. Times of boom and bust provide management with almost totally opposite views. By not taking a conservative view on prices and costs, the effect of extremely low prices and minimal demand can be devastating to a good project. Designing and building plants with conservative costings in boom times gives a greater chance of keeping projects alive during the bust periods that tend to follow.

Jan 1, 2009

By J Schrank

Double-stack trains in the United States date back to the early 1980s, starting about the time deregulation of the rail industry occurred. Freight rail became increasingly more competitive to trucking and barge or ship, and led to major investments in railroad infrastructure. Since most railroad tunnels in the United States were constructed between 1880 and 1930, they were not built tall enough to accommodate modern double-stack intermodal railcars. Therefore, as double-stack trains became the norm, existing tunnels became bottlenecks, and railroads wanted the tunnels made larger without impacting traffic. This need to increase the clearance while not impacting rail traffic launched a very specialised industry: the design and construction of replacement lining systems in existing tunnels.Several large multitunnel railroad clearance improvement projects have been completed in the country in the last decade, and they have all been done under ‘live track’ conditions. Live track conditions consist of work windows, often anywhere from four to 12 hours, that are provided to the contractor to complete the construction work. By the end of each work window, the tunnel must be secured so that the railroad can run trains.In addition to improving the clearance, these projects provided the railroads with an opportunity to improve the general condition of the tunnels, including structural, seepage, drainage and icing conditions. This paper discusses the design considerations, tunnel assessments and construction methods used for these live track railroad tunnel projects. Seepage and drainage improvements that were incorporated into the clearance improvement projects are also discussed.CITATION:Schrank, J, 2014. Live track railroad tunnel repair and clearance improvement in the United States, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 619–628 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

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

Jan 1, 2006

The words ""Uncertainty"" and ""Risk"" pervade every discussion about mining exploration and investment. Perhaps these terms are subjectively understood by industry professionals, but objective portrayal of these concepts outside the industry is a woefully undeveloped science. This paper addresses current industry understanding and practice regarding quantitative risk assessment techniques, and provides examples of the application of three of these techniques. Probabilistic techniques for financial risk assessment are valuable adjuncts to conventional financial analysis, and address a range of issues not assessable by any other means. The value of whole-of-project probabilistic risk assessment is currently debatable for decision-making purposes, but is seen as important as a mechanism to focus attention to the critical issues that ultimately impact on project success. The dissection of project capital into risk and non-risk components provides valuable insights into risk characteristics not readily quantifiable in any other way. This technique also provides a framework for more objective ""what if?"" scenario evaluation and for the capital structure of resource projects. Finally, mechanisms for the valuation of undeveloped reserves are examined, and guidelines suggested. The importance of reliability in production cost estimates is highlighted and the impact of early development on reserve valuations is discussed. The importance of economics throughout all stages of the evaluation process is fundamental.

Jan 1, 1994