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All companies and individuals who embark on a business venture incur costs. For the most part these costs can be conveniently categorised, firstly into capital and operating costs and then into the various elements of these major cost centres. Although the nature of expenditure naturally differs as between industries certain broad cost types are characteristic of all heavy industries. The capital costs of gaining access to an orebody, equipping a new mine, building a treatment plant and perhaps refining and smelting facilities are likened to capital expenditure by a manufacturer on new plant and equipment required for an expansion or new product innovation. Similarly the day to day costs of labour and materials employed in the running of a mining operation can be likened to similar costs in other heavy industry. There is another group of costs that are not so easily categorised. Most industries incur unavoidable costs that do not form part of the direct or capital costs of physical production. These costs include taxes and other payments to government and research expenditure. The mining industry has a particularly heavy burden of non-production costs and it is the objective here to highlight and analyse a few of them. These costs are exploration expenditure, infrastructure expenditure, royalties and income tax. This is not to suggest that these are the only major non-production costs that the mining industry needs to bear. The industry may incur significant costs for environment protection, land tenure maintenance and on liaising with Government on a wide variety of matters. It is for reasons of subject manageability that the list is confined to the four costs mentioned. For the mining industry, exploration and infrastructure expenditure, royalties and income tax have several distinguishing features. Firstly, they are generally proportionately large costs. Exploration and infrastructure expenditure for example, could well exceed mine development costs. Depending on how royalties are levied, they may be very high in relation to profits earned and many in fact exceed profits. Secondly, except for income tax, they are costs that are generally not payable by other industries. Exploration expenditure is in some respects comparable with industrial research and development. However, because mines are wasting assets exploration is necessary for survival, and it is likely to form a larger part of costs per dollar of profits or sales than R&D. It can therefore be said that exploration is of far more significance to the miner than R&D is to the typical industrial company. Furthermore, unlike exploration expenditure, R&D results are transportable and patents permitting, transferable. The infrastructure burden that miners must carry is unique to the industry. Whereas urbanised industry is not usually liable for the capital cost of power, water, transport, townships and community facilities, the miner must finance these projects himself. Neither the payment of royalties, nor of course, income tax are unique to the mining industry. Royalties are more properly described as a unique charge on some primary industries but however described, they are a charge that manufacturing and service industries do not have to pay. Whilst we all pay income tax, the mining industry's uniqueness derives from the special problem that the industry has in arriving at annual net income in view of the capital intensity of the industry, partly due to expenditure on infrastructure, the indefinite life of capital equipment and its unpredictable residual value, funds expended on exploration and long lead times associated with a mine development. The third distinguishing feature of these costs is that, with the possible exception of exploration expenditure, they are heavily influenced by the policies and actions of Government. As such the industry has a responsibility to promote the industry by emphasising its potential to improve national product including exports and by requesting that the Government provide for the industry in its long term planning and seek its co-operation to prevent the industry incurring inequitable penalties relative to other industries.Finally, exploration and infrastructure expenditure are significant because they are front-end charges on a project. When due allowance is given the time value of money and the deferment of income from a mining development to which they relate, exploration and infrastructure expenditure assume greater importance than the raw money expenditure suggests. For all these reasons, exploration and infrastructure expenditure, mining royalties and mining income tax are worthy of detailed study. This is the purpose of this paper. The objective is to examine the determinants that give rise to them and provide some thoughts on their impact on on-going and potential mining developments and, where relevant, to make some suggestions as to how they may be minimised.

Jan 1, 1977

By R G. Jeffrey

The Northparkes, Endeavour 26 orebody is a porphyry copperûgold deposit and comprises a moderately to well jointed rock mass characterised by gypsum veining, the intensity of which decreases with depth. The top 480 metres of the orebody is currently being mined by block caving, the undercut dimensions measuring 196 metres in length by 180 metres in width. Continuous caving was never achieved after the completion of the undercut thus cave inducement techniques were sought to maintain caving so as to safely sustain production. The use of hydraulic fracturing as a cave inducement tool was successfully trialled in December 1997 using existing exploration boreholes located midway up the current lift. Subsequent fracturing campaigns have enjoyed various degrees of success and have yielded in excess of seven million tonnes of ore at a significantly lower cost than conventional cave inducement techniques. Monitoring of both the hydraulic fracture system and the rock mass response has provided considerable insight into the geometry, growth and influence of hydraulic fracture networks above the Northparkes block cave, and has initiated additional research into the use of hydraulic fracturing in other mining methods.

Jan 1, 2000

By P K. Banerjee, S Kumar

Indian iron ores with less than 62 per cent Fe are currently unexploited, except for a few sectors which export them to foreign countries. It is anticipated that by 2012 the countryÆs domestic steel production is likely to rise to the tune of 60 million tonnes per annum. To meet this requirement, it is necessary to utilise not only the existing high-grade deposits but it is also necessary to look into exploiting the leftover iron ores of lower grades. Hence, reserves with Fe content 62 per cent and below (particularly the ores with In the present paper, an attempt has been made to beneficiate three different types of low-grade iron ores selected from three different parts (states) of the country. In the paper, alternative routes for beneficiation and effective utilisation have been tested using different techniques in the laboratory in an attempt to match their (Al2O3/SiO2) ratio after thorough characterisation and liberation studies. The paper also encompasses the geological formations, occurrences and distribution of Indian iron ores as well as highlighting the problems associated with the fines, possible metallurgical routes, and their market segregation from the perspective of end users.

Jan 1, 2007

By D R. Wines

The design of near-surface civil infrastructure requires detailed consideration of the geological/ geotechnical conditions, excavation geometry and sequence and ground support measures to ensure stability of the underground openings and minimal impact on overlying or adjacent infrastructure. Twin parallel road tunnels have been designed and built with connecting cross passages and a piggyback busway tunnel as part of a large infrastructure project in Australia. The tunnels were excavated in poor to fair quality rocks using road headers. Temporary ground support includes shotcrete, rock bolts and canopy tubes. Extensive numerical analyses have been performed to analyse the expected behaviour of the tunnels during excavation, including two-dimensional analyses using UDEC and three-dimensional analyses using FLAC3D. Structural defects in the rock are explicitly included in the 2D analyses to examine the potential for localised ground instability. The stress redistribution is captured by the 3D modelling with an accurate representation of the complex excavation geometry and the detailed excavation and support sequence. This paper presents the modelling methodology, numerical results and discussions on integrating both 2D and 3D analyses to achieve reasonable design.

Mar 8, 2011

By J Zhang, R Dimitrakopoulos

A two-stage stochastic mixed integer non-linear program is formulated for a mining complex to optimise strategic and tactical plans. The objective is to find the near optimal decisions for a mineral supply chain in the context with uncertainties in both ore supply and the commodity market (price and demand). The endogenous spot price in the commodity market and long-term sales contracts are considered in the formulation of the mining complex’s optimisation model and an ad hoc heuristic is developed to deal with the throughput – and head-grade-dependent recovery rate in processing plants. Numerical results indicate that the proposed heuristic is effective and efficient in numerical tests. Based on the proposed model and heuristic, a long-term contract design strategy is proposed for making decisions on the contract price and strategic investments. A shadow price based method is also proposed to evaluate the existing mining schedule.CITATION:Zhang, J and Dimitrakopoulos, R, 2014. Optimising a mineral supply chain under uncertainty with long-term sales contracts, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014 , pp 25–32 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014

By M Zhu, G Tranell, N Simkhada, K Jakovljevic, M Wallin

Silicon is a vital element in many products today, such as electronic components, solar devices, high-quality alloys, and many others. The growing global demand highlights the need for the development of sustainable production methods to meet this demand as an alternative to the current carbothermic reduction, submerged arc furnace (SAF) based process. An alternative to this is the aluminothermic reduction of quartz in a CaO-SiO2 slag, which not only reduces direct carbon dioxide emissions but also promotes the utilisation of secondary raw materials such as quartz fines, aluminium dross and scrap as well as secondary alumina (SA) from dross recycling. In the current study, the effects of SA and CaF2 additions to slag on the resulting metal composition and metal yield were explored. Results were compared with thermodynamic simulations using FactSage™ 8.1. Experimental results show that, in agreement with thermodynamic simulations, the silicon content of the alloy is increased, while the Ca is decreased for starting slags where CaO-SiO2 is partly replaced by CaF2. Similarly, the addition of SA to the initial slag results in an alloy with a higher silicon content.

Jun 19, 2024

By M A. Llano-Serna, D J. Williams, L Bu

Tailings dam failures continue to occur worldwide at an unacceptable rate, averaging two events annually over the last 100 years. Furthermore, tailings dams continue to grow in size, increasing the potential release of tailings and water should they fail. Tailings are generally deposited in a slurry state, with the potential to flow if containment is lost. Understanding the generation and propagation of excess pore water pressure on failure is critical to predicting the flow and run-out of tailings. This paper presents numerical modelling using the material point method indicating that tailings run-out processes may be self-enhanced by the excess pore water pressure induced during the collapse of the containment. Moreover, it is shown that geomorphological features, such as the slope and its surface roughness downstream of the tailings dam, influence the pore water pressure dynamics upstream of the advancing toe.CITATION:Llano-Serna, M A, Bu, L and Williams, D J, 2018. Excess pore water pressure induced during tailings run-out, in Proceedings Mine Waste and Tailings Stewardship Conference 2018, pp 377–383 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 23, 2018

By M Zhu, G Tranell, J You, K Tang, X Ma

The thermal conductivity of slag is critical for the efficiency of high temperature metallurgical processes such as the smelting reduction of ferroalloys, the ladle refining and the continuous casting mold flux in steelmaking. Experimental determination of slag’s thermal conductivity is fraught with challenges, as seen in yielding data for the SiO2-Al2O3-CaO system that are often inconsistent and widely dispersed. In molten slags of this system, thermal transport occurs via phonons within the network structure. To quantitatively describe thermal conductivity based on the microstructure, hightemperature Raman spectroscopy was employed to measure the silicate tetrahedra Qi (i = 0, 1, 2, 3), with Q4 species inferred from mass balance. This study also integrated molecular dynamics simulations to provide a fundamental understanding of the microstructure units distributions. Machine learning algorithms, especially deep neural networks, were applied to establish the relationship between slag composition and the configuration of tetrahedra. The thermal conductivities were then connected with silicate tetrahedra Qi using an Arrhenius-type formalism. This study sets the stage for extending our findings to more complex, multicomponent slags, enhancing their practical application in industrial processes.

Aug 21, 2024

PIP is regularly engaged in businesses where Greenfield Capital Projects are under- delivering on the expected business case. In most of these projects, we can identify that rigorous review has been carried out on the design and financial cost elements and substantial reporting is maintained to Boards on progress versus plan of project completion and cost. However, in all sites of this nature that we have worked at, the planning, design and execution of the operational elements or æwiringÆ of the organisation have fallen short and resulted in significant extra cost or opportunity cost (lost tonnage or quality) during start-up. When compared to the amount of planning and resources that have been poured into the capital side, the ledger on the æwiringÆ side is typically fairly sparse. This presentation outlines the importance of running a disciplined, rigorous process to prepare the human and wiring side of a start-up to ensure rapid start-ups and put the site on the pathway to high performance. It gives an outline of the rigorous process PIP has used with projects to ensure excellent start-ups.

Jan 1, 2006

By N Yarahmadi

Characterization of pore pressure is critical for appropriate design of tailings dams. Furthermore, if seepage rates through tailing embankments increase unexpectedly or become uncontrolled, undesirable conditions may prevail to progress piping or internal erosion that could lead to the dam’s instability or ultimate failure. A three-dimensional seepage analysis was performed on a tailings dam using finite element method to find the rate of seepage and pore water conditions in the embankment and foundation. The results were then compared to a conventional two-dimensional seepage analysis carried out on the typical cross section of the embankment and the field data acquired from the instrumentation system. Considering the monitoring data, comparison of seepage analyses results for the two and threedimensional models, showed that the results of the conventional two-dimensional seepage analysis are significantly underestimating reality. Relying on two-dimensional seepage analyses might result in underestimation of seepage rates and impact the safe operation of tailings dams. Similarly, unrealistic prediction of pore water pressure conditions, based on simplified seepage analyses, can lead to overestimation of the rate of strength gain of material and consequently safe embankment raising rates.

Jul 1, 2021

By K Vallo, T Haimi, J Pihlasalo, J Hamuyuni, M Lindgren, F Tesfaye

Decarbonisation of the steel industry has recently attracted a lot of research and technological development. Most of the technological developments are centred around the replacement of blast furnace (BF), which has been the main primary smelting furnace in the ironmaking step of steel production. Replacement of the BF is not an easy task because of BF’s many established capabilities over the years, especially its ability to use low-grade iron feed. In this regard, Metso has developed its own technology, Metso’s Outotec direct reduced iron (DRI) smelting furnace, to tackle this problem. The recently developed six-in line electric furnace for DRI smelting can be used for primary smelting of DRI from blast furnace grade iron ore. Unlike the electric arc furnace (EAF), the DRI smelting furnace can handle larger slag volumes that emanate from the high gangue in BF grade DRI. Therefore, fluxing plays an important role in operating the DRI smelting furnace. This paper presents fluxing options and proposes slag quality and operating windows for the DRI smelting furnace. Also, the effect of slag on refractory durability will be discussed.

Jun 19, 2024

By S M. J Koleini, F Hedjazi

The purpose of this research was to study the calcination of lead-zinc flotation tailings from the Angouran lead and zinc flotation plant in Iran as a pre-concentration step prior to hydrometallurgical processing of the oxidised tailings. There is an abundance of these tailings in the Angouran region and making use of these tailings would help preserve national wealth and also reduce the serious problems of environmental pollution caused by the tailings. At the optimal conditions of calcining at 750 - 800¦C for 45 minutes, the sample showed a mass loss of about 19 per cent. Mineralogical analyses showed that under these conditions the carbonate minerals including smithsonite (ZnCO3), calcite (CaCO3) and dolomite (Ca Mg (CO3)2) decomposed to their respective oxides. Hemimorphite (Zn4Si2O7 (OH)2.H2O) converted into willemite (Zn2SiO4) and this transformation postponed the formation of silica gel in the leach solution. The grade of zinc increased from 22.20 per cent to 29 per cent. These mineralogical changes resulted in desirable reactions in the acid leach process.

Jan 1, 2004

The polymerisation of silica is found to interfere with thickening of leach pulps at Risdon. Hydroxyl ion and fluoride ion are catalysts for this reaction. Stability may be obtained by the presence of aluminium or ferric iron.INTRODUCTIONAt Risdon it has been a matter for satisfaction that, although the concentration, of silica in leach solutions is appreciable, it has ,given relatively little cause for anxiety.However the margin of safety is small and some intermittent difficulty in thickening leach residues during the last few years has prompted a further investigation, certain parts of which are described here since they may be of general interest.Leaching and ClassificationThe method of leaching which is practised at Risdon has been described in, two previous articles, by W. C. Snow (1936) and S. W. Ross (1949) to whiCh the reader is referred for detail. Continuous leaching is practised, the circuit solution flowing through five air agitated pachucas in series, to tlie first of which calcine is added. The circuit solution, which also enters the first pachuca, consists of spent electrolyte from, the electrolytic cells and contains 90 -gm. of free sulphuric acid per litre. About 80 per cent of the solublezinc oxide is extracted from the calcine in the first pachuca, at a pH value of 1-1 (7 gm.H2S04/1 at 55 to 60°C. In the later pachucas the leaching rate decreases sharply. The leach pulp which leaves the 'last pachuca contains an average of 17 gm. of free acid per litre, corresponding to a pH of 1.7; but, owing to variations in extraction, the end point fluctuates between 2.5 and 0·3 gm. free acid per litre (pH:> 1·5 to 2.5). The average flow through the plant is 1,250,000 gallons per day, which corresponds to a production of 300...

Jan 1, 1958

By N A. Sikwa, L M. van Niekerk, G N. Ndlovu

In June 2012, Lucara Diamond Corporation officially commissioned its Karowe Diamond Mine in Letlhakane, Botswana. The processing plant circuit incorporates variable speed autogeneous milling, a first for African diamond processing - only previously practiced in Russia. The paper discusses the basis for the selection of milling against the more traditional circuits incorporating crushing and scrubbing. It covers early commissioning challenges of operating a mill in an æalien environmentÆ with no immediate reference plant to look up to for bench-marking.The paper describes how these challenges were overcome and learnings quickly incorporated into the mill operating philosophy for maximum diamond liberation and minimum product damage. The plant was commissioned in three months and by August 2012 the production ramp up had reached name-plate capacity. The feed to the mill has varied from highly weathered material to extremely hard kimberlite and the operating philosophy had to be optimised for the full range of ore types. While more work is required to stretch the mill operating envelope coupled with other circuit additions to improve liberation of fine diamonds at minimum capital expenditure, the mill has, to date, performed to its billing.CITATION:van Niekerk, L M, Ndlovu, G N and Sikwa, N A, 2013. Commissioning and operating an autogeneous mill at Karowe Diamond Mine, in Proceedings MetPlant 2013 , pp 215-228 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 15, 2013

By J Purandare, D Murdoch

The goal of the life-of-mine plan is to ensure that while the site is left safe, stable and non-polluting, the landscape is such that optimal use can be made of the site post-mining and closure. However, in the face of evolving shareholder expectations and the current international economic climate, numerous mines are ceasing operations and moving into a care and maintenance phase. These changes bring with them a high degree of community concern, not only about the potential legacy of closed operations, but also those mines that continue to operate.While mines across Australia are committed from the earliest planning stage to develop clearly defined post-mining land use and landform objectives, broader expectations related to these objectives may change and evolve during the life of the operation. This is especially the case where a mining operation has a project approval where the land use objectives are aligned to land capability and land use commensurate to that which occurred premining. CITATION:Murdoch, D and Purandare, J, 2016. Optimising land for beneficial use during and after mining, in Proceedings Life-of-Mine 2016 Conference, pp 166–167 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 28, 2016

Mineralisation was identified at Gladstone Hill as far back as the late 1870s-early 1880s, shortly after the initial discovery of mineralisation at what is now the Martha Mine. Indeed, early recovery problems associated with the Martha mineralisation led to the preferred development of ore bodies within what is now the Union Hill Joint Venture tenement; ore bodies such as Silverton, Amaranth, and Union to name a few. Gladstone Hill forms the basis of the Union Hill Joint Venture, a 50:50 joint venture managed by Au-Ag Resources Ltd (a fully owned subsidiary of Otter Gold Mines Ltd), and Welcome Gold Mines Ltd (a fully owned subsidiary of the Normandy Group). The joint venture participants also operate the adjacent Martha Mine. Mineralisation of Gladstone Hill, as with mineralisation at the adjacent Martha Mine, has been interpreted as a low sulphidation epithermal Ag-Au system hosted within hydrothermally altered andesites of the lower Coromandel Group. Drilling in recent years has successfully identified extensive mineralisation associated with a number of vein sets throughout the tenement including the Gladstone Vein set, the Moonlight Lode and more recently along a north-easterly trend towards the historic Favona workings. A wide range of vein styles is apparent, ranging in character from thin stock works to broader lode-style banded chalcedonic to cherty quartz and have been interpreted as representing multiple phases of emplacement. At shallower levels mineralisation is often hosted by vein clasts within vent breccias. Visible gold is rare, with mineralisation generally associated with very fine-grained pyrite, arsenopyrite and minor electrum. Percentage levels of combined sphalerite-galena-(+/- chalcopyrite) have been intersected at depth however these have been gold poor to date. The potential for the Gladstone Hill area remains to be clearly defined as drilling to date has yet to close off mineralisation both along strike and down dip. If further drilling is successful, the joint venture partners believe Gladstone Hill could contribute significantly to the economic future of current operations.

Jan 1, 2000

By G L. Simmons, K M. LeVier, R Kappes

The low potential hydrophobic state of pyrite in amyl xanthate (PAX) flotation with nitrogen is of particular interest with regard to the N2TEC flotation technology currently being used for the recovery of auriferous pyrite at NewmontÆs Lone Tree Plant in Nevada. Initially, the N2TEC system had been found to operate satisfactorily, but cyanide in the flotation mill water appeared to be responsible for a loss in pyrite recovery. This supposition was confirmed with laboratory experiments, and a program was initiated to study flotation chemistry variables by electrochemically controlled contact angle measurements. Experimental results show that activation of pyrite in such cyanide solutions can be achieved more effectively with lead than with copper. Subsequently, based on these fundamental studies, significant improvement at the Lone Tree Plant was achieved by lead activation, in which case the recovery increased to expected levels. The effect of activator is particularly significant not only with respect to pyrite depression by residual cyanide, but also with respect to collector (PAX) consumption and the initial state of the pyrite surface. Experimental results show the importance of the pyrite surface state and the rather interesting features of the activation process.

Jan 1, 2005

By D Brett

"Mine waste storages including tailings dams and waste rock dumps represent arguably the biggest risk on a mine site from both physical and geochemical viewpoints, related firstly to structural stability and the consequences of failure and secondly from potential on-going seepage or run-off of acid and metalliferous drainage (AMD). The risks are most likely to increase during operations and continue through the closure and post-closure phases, with the waste storages likely to be the most difficult features to resolve in the mine closure process. Contaminated water quality from tailings dams and waste rock dumps can require treatment "in perpetuity" at a cost of hundreds of millions of dollars. The problem is increasing with ever larger mine operations and waste generation volumes. This paper identifies leading practice methodologies in planning and operating mines and process plants to minimise the risks from tailings storages and how this might also affect waste rock management and even the design of mine excavations. These methodologies require a "big-picture" approach to develop an understanding of the overall issues and identify synergies between the different operational areas on a mine site that can reduce overall risk. With a conservative approach and realistic allowance for future costs it is possible to facilitate decisions at the mine planning stage that can reduce risk and save cost over the long term. This is in contrast to the common approach where each operational area is looking to minimise its own costs with a short-term view. Incorrect mine methodologies can be developed by allowing net present value (NPV) accounting methods to trivialise future closure issues.Methodologies discussed include: Integrated Waste Management - Significant structural improvements to tailings dams can be achieved if the structures can be incorporated into the waste rock dumps. Risk of AMD can also be reduced by utilising the tailings and waste rock effectively. This could go even further to consider the placement of wastes to limit mine void environmental issues; Process Optimisation - Water quality and the nature of potential tailings dam structures can be highly influenced by the geo-chemistry of the tailings. This can be modified by processing, where simple changes such as maintaining separate streams of geo-chemically different tailings rather than recombining them or by initiating further processing to remove problematic minerals such as sulphides; Enhancing Geophysical Properties - The geochemical performance of waste repositories can be greatly influenced by the geophysical properties of the stored materials, particularly the air-water characteristics, which are influenced by particle size, density and permeability. The geotechnical properties can be enhanced by strategic paddock dumping, blending and compaction.These methodologies are demonstrated by case histories.CITATION:Brett, D, 2013. Mine waste risk minimisation by integrated waste management and process optimisation, in Proceedings MetPlant 2013, pp 247-258 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jul 15, 2013

By H Peiming, W Sakurai, Y Matsuhisa, H Shimazaki, Y Fukahori

Oxygen and carbon isotope mapping of hydrothermally altered wall rocks was applied to the blind ore prospecting of skarn Pb-Zn deposits in the Kamioka mining district, centralJapan, where the wall rocks consist of heterogeneous rock units. The results (d18OSMOW of -1.1 to +17.3ë and d13CPDB of -5.0 to +4.8ë for limestones, and d18OSMOW of -0.8 to +12.5ë for silicate rocks) show isotope zonations of the wall rocks with depletions in heavy isotopes (18O and 13C) toward the centre of mineralization. The isotope zonations likely formed by interaction of migrating thermal waters with the wall rocks during the mineralisation. The heavy-isotope depleted zone, which indicates higher temperature or higher water-to-rock ratio of the system, occurs in the footwall of a fault, indicating that the fault played the role of main conduit of the ore-forming fluids. A heavy-isotope depleted zone was also found in an area, where significant mineralisation had yet to be identified. Recent drilling in this area has intercepted a zone with a grade of 16.0% Zn, 0.8% Pb, and 35g Ag per metric tonne at a depth of about 360 m.

Jan 1, 1995

OZ Minerals Limited owns and operates the Prominent Hill Copper-Gold Mine, located 140 km southeast of Coober Pedy in far north South Australia. The Prominent Hill mine comprises an open cut mine with an initial 10 year mine-life and an 8 Mtpa conventional grinding and flotation plant to produce high quality copper-gold-silver concentrates, which are exported by road to local customers and by rail to the port of Darwin for shipment on to Southeast Asian smelters. Mine and process operations at Prominent Hill are licensed to abstract a water supply of up to 26 ML/d, sourced from a borefield located 40 km and extending to 80 km east of the mine. The arid climate of the broader Prominent Hill region means that groundwater is important for sustaining community and pastoral industries in the region, and security of water rights for third party users is a critically important water management issue posing a significant challenge to the development of Prominent Hill. Depth to water table and the typically high salinity of groundwater in the region means there is little environmental dependence on groundwater within the immediate Project area (mine lease and wellfields). The Prominent Hill mine and associated infrastructure lies within the South Australian Far North Prescribed Wells Area (FNPWA), which was principally defined to ensure the ongoing security of the ecologically, socially and culturally significant GAB springs, of which the closest are found around 150 km northeast of Prominent Hill, and only 50 km northeast of the water supply borefield. Prescribing of the FNPWA meant that OZ Minerals was required to demonstrate to both State and Federal Government agencies that the mine's water supply is independent of that which supports GAB springs and other third party water users in the region. Recognising these potential obstacles, OZ Minerals successfully defined and developed a previously unknown industrial quality groundwater resource, separate from other important groundwater resources in the region that supply community, pastoral and environmental users, ensuring third party water user sustainability.

Jun 1, 2010