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Outsourcing of mining operations and services is done for various reasons and there is no single model which fits all situations. Experienced contractors and mine owners have also developed, more often than not, jointly, numerous commercial arrangements and project delivery methods to suit their particular project. It is often the case that some mine owners who have not considered outsourcing to contractors do so because of a simple lack of understanding of the potential benefits. This paper will highlight the potential benefits and perceived disadvantages of outsourcing for mine owners and demonstrate how these issues have been addressed by the mining contracting community over recent times as well as demonstrate the evolution of current commercial arrangements in engaging mining contractors.

Jan 1, 2006

By M Berry, F MacCorquodale

The ownership, management and employment structures operating in the Australian minerals industry have dynamically evolved during the last 30 years. One of the most dramatic changes, from an exploration and mining geology perspective, is the reduction of in-house geological expertise and an ever increasing reliance on contract and consulting services.For all companies - big and small - two key issues resulting from these changes are the management of core geological intellectual property (IP) and competitive advantage. This is because there are less experienced geologists at exploration and mine sites, there are fewer head-office technical service teams to support mine sites, exploration teams are smaller with less specialists employed, and there is an ever-greater dependence on contract and consulting services.This paper reviews and explores these issues with an industry-wide geological context, then provides a case study of how Newcrest Mining Limited (Newcrest) has dealt with these issues in exploration. Newcrest has grown from a one-mine company with an Australian exploration focus, to a large global company with multiple operations and an extensive international exploration portfolio. NewcrestÆs management of its geological IP and competitive advantage has evolved as the company has grown and responded to market conditions, including its internal restructuring in mid-2013.CITATION:Berry, M and MacCorquodale, F, 2013. Managing geological intellectual property and competitive advantage - Newcrest Mining LimitedÆs experience, in Proceedings World Gold 2013 , pp 37-44 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 26, 2013

By J Kwak

Driving sustainability concepts and practices into the heart of the design process is the key to achieving a successful, sustainable plant design. Engineering design practices, tools, systems and methodologies should be prepared around true eco-efficiency parameters, adopt wholesystems-thinking and consider life-cycle impacts for the design task. Experience dictates that the application of sustainable plant design practices is most likely to succeed if: The principles are well documented and explained. All stakeholders agree on what sustainability means. Sustainable plant design is treated as a core process. The principals of sustainable plant design are equally applicable in brownfield and Greenfield environments. Although brownfield situations provide the designer with less latitude for change, these types of projects do allow easier measurement and demonstration of relative impacts. This paper further develops the above points by drawing on case studies from HatchÆs repertoire.

Jan 1, 2004

By C Dick

Over the past three decades, mining operations have seen a significant increase in the use of contractors for mining, camp management and catering, recruitment, maintenance, power management, and commissioning. More recently contractors have been engaged for stores and logistics, OH&S, environmental, exploration, training etc. In some countries, such as South Africa, the trend is towards total outsourcing of all aspects of a mining operation which is coordinated by the owners’ management team.During the Global Financial Crisis (GFC) more Australian companies considered and/or took on this approach to recruiting for both projects and operations as mining companies were forced to rethink their corporate strategies as commodity prices plummeted to low levels, pushing operations and projects into potentially financially unviable territory.This paper discusses the labour recruitment, commissioning and operating strategy of Western Areas NL (WSA), with the assistance of Independent Metallurgical Operations Pty Ltd (IMO), as it progressed construction, commissioning and operation of the Cosmic Boy nickel concentrator at the Forrestania Nickel Project during and post GFC. The use of IMO contractors allowed Western Areas to mitigate labour cost risk during the uncertainty caused by the GFC and let their management team focus on the task of bringing a new operation into viable and profitable production.

Aug 8, 2011

A combination of the needs of business, employee desires and safety and health considerations is stimulating increasing attention to the time spent by people at work and the timing of that work. Particularly we are seeing: - innovative work schedules for 24-hour mining businesses; and - response from industry to accommodate the needs, even the desires, of employees in return for systems which are more productive and more capital efficient. There appears to be an evolutionary trend for business management to become more sophisticated and responsive to the need for achieving close to best cost work schedules to sustain continuous improvement. The underlying motivating forces driving this trend for improved techniques in organising attendance at, and time spent at work, is the seemingly inseparable combination of technological advance and ever-increasing accumulation of capital. The mining industry has not remained untouched by this thrust for ever-increasing need for best use of labour, to adopt advances in technology and to provide attractive opportunities for putting accumulated capital to work. An essential component of this on-going thrust is a substantial effort by the mining industry to improve the performance of labour by providing most-productive work schedules.

Jan 1, 1996

Mining and mineral processing makes a vital contribution to AustraliaÆs national export income, and our society today is critically dependent on its products. Despite the importance of this industry, its operations often come under scrutiny because of its high potential impact on local environments û both social and ecological. The challenge for the minerals industry today is to make the most responsible and best possible use of the national resource base, maximising overall resource utilisation.Research efforts and industry implementation of improvements have been moving in this direction for a considerable time already, and the industry has a long history of process innovation and improvement in Australia. Examples range from the early development of gold cyanidation and mineral flotation to more recent work undertaken under the auspices of AMIRA or through the various CRCs and research organisations such as the AJ Parker CRC for Hydrometallurgy, the Cooperative Research Centre for Mining Technology and Equipment and the Julius Kruttschnitt Mineral Research Centre.However, the nature of research and innovation in the mining and mineral processing sector is changing, as the industry itself copes with the pressures introduced by globalisation, industry consolidation and commodity price cycles. Large firms that have historically maintained a tradition of corporate technology and a culture of innovation are moving to outsource their technological and research competencies and are adopting æfast-followerÆ mentalities. At the same time, the challenges of sustainable development that need to be addressed are many-faceted, multidisciplinary, and require a holistic approach for significant achievements to be realised. Many sustainability issues, particularly those pertaining to environmental and safety issues, are shared across large sections of the minerals industry, and are seen as æindustryÆ problems beyond the scope of a single company.In this environment, collaborative research efforts are becoming the dominant mechanisms for building on past innovations and ensuring the continued success of the mining and mineral processing industries within a framework of sustainable development.

Jan 1, 2004

By G Malherbe, J Gonzalez, D C. Franklin, J Bassan, C T. Farrelly

To respond to ever-increasing challenges, mining companies have been experimenting with new business models and technologies in order to speed mine development, production, processing and transport. The various experiments involve mobile access to data, intelligent sensors, advanced analytics, virtual collaboration, virtual reality, automated equipment, remote operations centres and strategic partnerships. A synthesis of all these components creates a ænetwork effectÆ that can dramatically improve the overall effectiveness the entire operation. The concept of the Network Centric Mine borrows from a variety of industries, including defence, aerospace, aviation, petroleum, utilities and manufacturing. Central to the concept are improvements to the way we connect people, process, information and technology, resulting in a more highly collaborative business model, with roles and processes designed to take advantage of new technology. The components of the mining operation act as a connected network aimed at a common goal, regardless of the boundaries of organisation and location.The design of this new organisational ecosystem needs to take into account the recent advances that enable the æplug and playÆ integrated collaborative environment, including cloud computing, mobile devices and social networking, as well as advances in augmented reality, robotics, geo-location, digital labelling, simulation and analytics. However, the most consistent lesson from other industries is the need to properly enable the behaviour and process changes necessary for success.Benefits from adopting a network centric approach include the more effective use of scarce expertise, improved data and information analysis, reduced process variance, and more informed and faster decision-making. The future of mining will see more technology savvy workers who will drive the adoption of new processes. The operations will shift from a relatively static and disparate set of functions, to a digitally aware, dynamic, automated, integrated and interactive environment, with increased agility, lower operating costs, higher productivity and improved safety.CITATION:Farrelly, C T, Malherbe, G, Gonzalez, J, Bassan, J and Franklin, D C, 2012. The network centric mine, in Proceedings International Mine Management 2012, pp 143-160 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 20, 2012

The original and most basic relationship between mining company and explosive supplier was a simple one of consumer and product supplier. The divide between the two was quite clear-cut with neither taking much interest in the activities of the other. The explosive supplier had little understanding or share in the outcome, efficient rock breakage and therefore impact on mining and milling. Likewise, the mining company did not encourage the improvement or development of products. The transactions were limited to product and funds. This environment does not encourage any form of knowledge sharing, trust or optimisation of the mining process.Conversely, there are now a variety of relationships to the point that the mining company may simply be an asset manager whereby all æoperationalÆ aspects are contracted out. For the drill and blast aspect this takes the form of a æRock-On-GroundÆ contract whereby the explosives company takes on design, drill, load and fire responsibilities and is paid a rate per volume of broken rock. This removes the majority of risk to the mining company derived from having to produce broken rock and guarantees the cost of a portion of the overall unit cost of mining. The onus is now on the explosives supplier to break rock to a specification as efficiently as possible.There exist a number of variations between the æbasic supplyÆ and æRock-On-GroundÆ. These contracts may also include value sharing to encourage the explosive supplier to optimise the mining operation to maximise profit.This paper looks at some of the drivers for the change in explosive supplierûconsumer relationships and examines the æprosÆ and æconsÆ of a few of the options.

Jan 1, 2004

By S L. Martin, M Wimberger

The binary indicator coding of assay and lithological data according to a single criterion or multiple criteria is a powerful technique for representing mineralised shapes through the modelling of probabilities. This can be as simple as using a single indicator to model the probability of occurrence of a condition, usually a grade threshold or a lithology, but it can also be used with a number of categories. Case studies are presented to show the power of this approach, where the geological controls on mineralisation or on the distribution of a rocktype or alteration, often coupled with mineralisation, are unclear. The categorical approach is often used as a de facto grade filter in disseminated or stockwork mineralisation. The ultimate expression of the indicator formalism is in multiple indicator kriging (MIK), where a conditional distribution of probabilities is generated for each estimation panel. This has applications in recoverable resource estimation, as the input for continuous or categorical simulation, where the distribution of sample grades is multimodal, or when there are superimposed mineralisation events with different orientations. However, in some cases, MIK is being used as an excuse for ignoring a quality geological interpretation. Examples from the public domain show the abuse of the categorical and MIK approaches to modelling probabilities, together with a plea for greater consideration of the geology.

Mar 22, 2022

By B Harvey

Achieving community and stakeholder endorsement during life-of-mine planning and implementation requires a business-connected approach, as opposed to charitable giving, disconnected offsets and environmental adventurism.CITATION:Harvey, B, 2014. Extractive companies, development and environmental agendas, in Proceedings Life-of-Mine 2014 , pp 19–22 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 16, 2014

By A C. Robertson

Over the past decade there has been continual change in the way that mines have been managed and the component roles of those people who make up the total mine management system. Major issues have included the change in the business structure of mining companies, the change in on-site infrastructure, increased personal liability of managers for the safety and health of employees and increasing social and environmental pressures on managers and their staff. This paper looks at the changing roles of two of the many groups of professionals associated with the mining industry - the equipment supplier and the mining consultant. The profiles of the ACME Group Pty Ltd, suppliers of ventilation equipment and ancillary canvas and plastic products to the mining and construction industry, and Tennent, Isokangas Pty Ltd, Consulting Mining Engineers, are presented.

Jan 1, 1998

In the past two and a half years, over 40 000 metalliferous mining and related services personnel have been trained through an Australian Generic Safety Induction system. This is almost half of AustraliaÆs metalliferous mining related workforce. This remarkable industry acceptance and delivery of safety courses is supported by Acacia Resources, Great Central Mines, Homestake, Newcrest Mining and WMC Resources, amongst hundreds of other mining, exploration and major contracting and services companies. MARCSTA; the Mining and Resources Contractors Safety Training Association (a pro-active not-for-profit self-help group of 24 major contracting companies) developed this generic safety induction. MARCSTA set out to find the æcommon groundÆ necessary to help address the evident safety problems and cost of re-training that were plaguing development of an internationally competitive and productive export industry. The incredible expansion of Australian mining during the decade fuelled a need for out-sourcing, resulting in much larger numbers of contractors on-site. At the same time, changes within Australian legislation, community expectations and the development of huge fly-in/fly-out operations and widespread skills shortages led to a rapid labour turnover and a higher paid workforce. Many Australian mining houses also ran international operations, particularly in South East Asia and head hunted people across the world. The skill levels fluctuated and fell at some local operations. Employers could no longer rely on systematic in-house training of permanent employees to improve safety and productivity as workers could and often did move on. Serious discrepancies in both quality and quantity of safety induction training and work practices occurred. Repetitive, boring and ineffective safety training became an embarrassing and costly burden for companies and workers alike. Then a spate of mining deaths sparked highly publicity, workforce concern and a demand for improvement from government, unions and corporate stakeholders. MARCSTA recognised it had to develop a high-quality safety-training program to satisfy the needs of all employers and be acceptable to others within the industry. This induction system had to be flexible enough to meet differences in legislation between states and industry sectors and be portable to enable cost and time savings for the new transient workforce. Changes in the last two years as a result of evaluating and incorporating various Taskforce inquiries into underground mining fatalities later led to the development of the MARCSTA Underground Safety Induction. This logical development added to the run away success of MARCSTAÆs General Safety Induction and was seen to be essential for many surface mines that were planning to develop underground operations. There are many lessons that MARCSTA learnt during its development that Pacific and South East Asian mining operations can benefit from. The most important of these are the support of stakeholders within industry and the recognition of higher safety and health expectations from workers and government. This goes hand-in-hand with the productivity and return on investment expectations of companies and their shareholders.

Jan 1, 1999

In March 2003, Rio Tinto Coal AustraliaÆs (RTCA) new Hail Creek open cut coal mine commenced operations in the Bowen Basin. Hail Creek is a two-seam strip mining operation utilising two 90 m3 draglines and a fleet of excavators and trucks to remove the overburden. All overburden at Hail Creek is blasted prior to excavation. The mine conducts its own drill and blast operations while engaging Dyno Nobel for the provision of explosives supply and loading truck (bulk explosives vehicle û BEV) services. This arrangement was favoured over outsourcing the entire blasting function to a contractor. Subsequent to a value engineering review, the mine set about developing and implementing a blasting operation that did not rely on the need to store bulk quantities of ammonium nitrate on site. There were advantages identified in doing this, in particular the reduction of capital expenditure required and reduced exposure to a number of recently introduced security requirements. This approach also makes sense operationally. The establishment of reload facilities for the BEV close to the blasting location, where turnaround times are kept to a minimum, increases the productivity of the BEV. For this strategy to be successful the logistics of ammonium nitrate supply into the blasting operations has to be well planned and thoroughly executed. This means a robust planning and forecasting arrangement needs to be established with the supplier and transporters of the ammonium nitrate. To date, 80 million bcm of overburden has been blasted at Hail Creek and each year the quantity of overburden requiring blasting is increasing. The purpose of this paper is to present the findings of a study: evaluating the effectiveness to date of the strategy to conduct blasting operations without ammonium nitrate storage on site, and identifying whether there is a limit to which this strategy can operate after which the introduction of bulk ammonium nitrate storage facilities are necessary.

Jan 1, 2007

By M McCarthy

Over the last six years Mandalay Resources has increased production rates and improved safety outcomes at its Costerfield mine in Victoria, Australia. This mine is an underground operation utilising narrow mining techniques to extract vertical veins, and produces up to 80 000 equivalent ounces of gold per annum, in both gold and antimony value.The operational challenges of narrow vein mining include controlling overbreak when veins being mined are only 300 mm wide. The mine has developed methods and modified equipment to suit extraction of these veins. Productivity improvements over the period have involved development of a stoping method and equipment to suit 1.8 m wide development drives. Over the last five years and during a skills shortage, recruitment, training and retention of personnel has been key to keeping corporate knowledge and skills to execute a careful efficient mining technique to minimise overbreak.Managing an underground operation close to nearby residents has unique challenges. Historically Victorian residents had family members work as underground miners; however, in the current day with few underground operations in this jurisdiction, community knowledge of mining has decreased. The Costerfield Operations are only 100 m from the nearest residence and the company values community engagement, partnership and investment with local Heathcote organisations.The mine has invested substantially in executive coaching of its leadership team early, which has paid dividends in problem solving potential of that team and ensuring the operation delivers on its promises to all stakeholders. The operation has become safer and employees are now more aware of their individual contribution in producing safe, efficient gold and antimony that benefit the whole operation, community and the region.CITATION:McCarthy, M, 2016. Costerfield – a narrow vein case study, in Proceedings International Mine Management Conference, pp 331-338 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

The decision to contract or owner mine should be independent of, and should be made before, definitive estimated cost comparisons could be available. There is substantial potential risk of estimated cost comparisons being flawed due to difficulties in compiling comparable estimates for differing business objectives, errors and omissions or because of significant bias. In the current economic environment, escalating cost pressures potentially lead to increased incidence of disputes in mining contracts. The apparent cost of contractorÆs profit and overheads has tended to become more significant to owners. Economy-driven trends towards higher levels of performance and commercial risk for contractors, and the potential for more adversarial, difficult management; with attendant disputation between contractors and owners, have encouraged development of so-called ærelationship contractsÆ û partnering or project alliance contracts. The paper discusses the issues, circumstances when owner mining or contract mining is favoured and perceived advantages and disadvantages of contract mining. The implications of owner-perceived core business and core skills and outsourcing are also discussed. Techniques of introducing objectivity into the decision to owner or contract mine using matrix analysis or benefit comparisons are described. A disciplined procurement process should deliver a decision to owner or contract mine independent of, and prior to, any definitive comparison of estimated costs. A generic procurement process model is provided as a basis for discussion. Risk is discussed generally and as a significant factor in comparison of estimated operating costs. Consideration of risk and any prudent cost treatment are promoted as necessary pre-requisites to any comparison of estimated costs. The paper develops the concept that the decision to owner or contract mine should be based on real benefits that become obvious in the early stages of the development, particularly the procurement process; and before definitive estimated cost comparison can be available. In the context of this concept estimated cost comparisons tend to be confirmatory. Problems with comparing estimated ownerÆs operating costs with tendered contract prices are also discussed, particularly recovery of capital cost of equipment; and the owner minerÆs trade-off of operating risks for the residual contractorÆs margin attributed to overheads and profit. The paper concludes that sole reliance on a comparison of estimated ownerÆs operating costs with tendered contract prices in deciding to owner or contract mine is questionable and likely driven by a need to satisfy specific in-house customers.

Jan 1, 2003

By D A. Sims

This paper outlines the contributing factors to a series of erroneous Mineral Resource estimates which led to considerable loss, including significant reduction of mine life and consequently a large write-down of asset value. The error prompted divestment of the mineral asset in the short-term by the owners, a major mining company. There were multiple and complex contributions to the result: • The mine was undergoing a transition in the deposit geology with increasing depth that was not accommodated in the models. Early indications of the geological transition in initial drilling were generally unrecognised in resource modelling. The shortcomings of the models became apparent with increasing infill drilling and subsequent production reconciliation. • There was a lack of recognition of, and confidence in, site-based input and skills by corporate technical management. The site had a reputation internally for over-delivery to plan early in its life and that supported the anticipation of ongoing metal delivery into the mine plan by management. • A corporate lack of confidence in site being able to adequately domain the mineralisation led to the use of a CIK domaining process, rather than one which was geologically based. This domaining process led to gross over-statement of mineralisation trends reflected in the subsequent OK estimate. • Timelines on the outsourced estimation process were so short that validation was not possible. Obvious errors in the estimate versus data were not able to be used to correct the issues and the site’s Competent Person sign-off occurred without adequate checks. This case study is presented to reinforce the concept that Mineral Resource estimates are not solely based on the ability of the Competent Person to satisfactorily guide the process. There are usually multiple complex issues in the estimation process which need to be recognised and considered in judging reconciliations of model to actual.

May 24, 2023

By E Hondros

Innovation and Business Skills Australia (IBSA) commissioned The Boston Consulting Group (BCG) to undertake a study into how the role of AustraliaÆs senior managers is likely to change between now and 2020 and to identify the skills and attributes that will be needed to respond to those changes. This report builds on a previous study prepared by BCG in the early 1990s for the Industry Taskforce on Leadership and Management Skills (Karpin Committee), which provided a snapshot of the Senior Manager in 2010. The following powerpoint slides summarise the 2020 Vision û The Manager of the 21st Century û outlining how the role of AustraliaÆs senior managers is likely to change between now and 2020 and to identify the skills and attributes that will be needed to respond to those changes. The presentation is summed up in the following quote from Jon Nicholson û Senior Vice President of BCG: We believe that to succeed in the years up to 2020, executives will need to master a range of hard and soft skills. Amongst other things, they will require to manage multi-generaional teams, the creativity to measure staff performance on outputs rather than inputs, and a high degree of technical and functional expertise in addition to their general management credentials. This paper is available as a PowerPoint presentation only.

Jan 1, 2006

By G Pitkin, D Sorley

The purpose of any consultancy is to provide a superior service for their client. Organisational structure is a key element in providing this service and differentiating between consultants.In an organic organisation the emphasis is on effectiveness, problem solving, responsiveness, flexibility, adaptability, creativity and innovation. Such an organisation is able to respond in a timely manner to change because employees are empowered to be creative, to experiment and to suggest new ideas. The process of innovation is triggered by employees throughout the organisation in a collaborative manner.Problem solving becomes a core competence of the consultancy. A multidisciplined approach arrives at superior solutions that are rigorous, holistic, achievable and often novel. It allows the mining consultancy to extract the most from a very talented and experienced team.This paper highlights the advantages of an organic structure for a mining consultancy and how to implement such a structure. It draws on examples of innovative problem solving from feasibility and strategic studies carried out in Australia and Africa.CITATION:Pitkin, G and Sorley, D, 2016. Organic management structure – its advantages in a mining consultancy, in Proceedings International Mine Management Conference, pp 155-162 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By D Audeyev

The Cooljarloo North Mine has been shaped not only by operational and processing challenges, but by climatic and economic factors. This paper outlines some of these challenges and discusses how the operating strategy has been altered over time to mitigate the impacts.Since commissioning the wet concentrator in 1999, there have been many typical operational challenges to maximising valuable heavy mineral (VHM) recovery. These include: varying in pit feed grades, different slimes types and volumes, sizing extremes between VHM and trash minerals and decreased equipment reliability handling rocky ore. These issues were successfully mitigated by: in pit extraction strategies, upgrade of the de-sliming circuit, thickener modifications and flocculent changes, installing upgraded and additional spiral capacity, and various Feed Preparation Plant screening initiatives. Combined with the ingenuity, persistence and patience of the operating team, VHM recovery >95 per cent has been achieved.However, typical processing challenges have not been the only hurdles. Reduced rainfall and water availability has necessitated the strategic co-disposal of tailings and slime to increase the speed of water recovery: groundwater abstraction and water storage strategies have also been altered. With an observed reduction in the speed and magnitude of groundwater recharge, overburden backfill scheduling has become a priority mine planning function.Combined with the above challenges, the prevailing foreign exchange rate and mineral product prices have impacted profitability. At the height of the Global Financial Crisis in 2009, major changes to the operating strategy were made to maintain a viable dry mining operation in 2010. Working with the mining contractor the existing scraper and semi-fixed Feed Preparation Plant set up was replaced with a movable in pit dozer trap facility. The end result of changes to the mining method and primary screening was a ten per cent reduction in unit costs. This article will elaborate on some of the above mentioned challenges and successes achieved over the past ten years of operating the Cooljarloo North Mine.

Oct 5, 2011

By J King, T Hunter, R Coleman

"The industry that supports operations and new projects is suffering a rapid decline in the currently severely curtailed capital investment environment. This is evidenced by a decline in the number of skilled teams, who are now centred in fewer locations. Other features are an aging and retiring ‘Baby Boomer’ generation, coupled with a low uptake of new graduates and the uncertainty in predicting future capital expenditure programs and requirements. Combine this with a reluctance of cash-poor operations to modernise and adapt in an environment of low metal prices, and there is a real uncertainty in how service providers will meet industry needs as they evolve.The industry that supports operations and new projects is suffering a rapid decline in the currently severely curtailed capital investment environment. This is evidenced by a decline in the number of skilled teams, who are now centred in fewer locations. Other features are an aging and retiring ‘Baby Boomer’ generation, coupled with a low uptake of new graduates and the uncertainty in predicting future capital expenditure programs and requirements. Combine this with a reluctance of cash-poor operations to modernise and adapt in an environment of low metal prices, and there is a real uncertainty in how service providers will meet industry needs as they evolve.Trends amongst service providers will be put forward as well as developing options and alternatives. These embrace a whole gamut of agile alternatives in the areas of partnering, alliances, commercial and shared risk models and mutual innovations. These will be discussed with some case studies and suggested approaches.Particular emphasis will be upon brownfield expansions and upgrades which have emerged recently as a preferred lower capital and focused way to achieve best practical outcome at lowest cost. There are a number of specific features of such brownfields projects including the requirement for very close cooperation between the execution team, operators, maintenance and suppliers and a maximum usage of site resources and ingenuity. Often, required investment hurdle rates are high, downtime allowed is minimal and site resources usage is maximised. This requires mutual trust, good planning and high health, safety, environment and community (HSEC) standards and practice. In many ways the practices and skills needed are the exact opposite of the historical ‘big greenfields’ project with which the industry has been geared for more recently.Another developing area has been with innovative commercial models and practices. These have been as a direct result of the more challenging investment criteria being adopted and the relative hunger of service providers. It has become more common to look at these commercial/costing alternatives very early in the project cycle as an essential project tool and not just as a possible option. These commercial solutions cover such alternatives as leasing and rental, deferred payments, build–own–operate–transfer (BOOT) and build–own–operate (BOO), whole-of-mine preferred spares and maintenance terms, and aggressive performance targets with real assurance penalties. Once again this requires very close mutual dealings and trust, and sufficient time allocation compared to a conventional approach.Citation:Coleman, R, King, J and Hunter, T, 2016. Upgrades, Modernisations and Expansions... Where Will the Expertise, Capability and Skills Come from in the Future?, in Proceedings 13th AusIMM Mill Operators’ Conference 2016, pp 69–76 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Oct 10, 2016