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By S Mitchell

Jetcrete Australia Pty Ltd, shotcrete contractor took the initiative in 2008 to discontinue the use of ‘road registerable’ concrete trucks for all underground works in Australia and internationally.The rationale for this decision was basic, safety. Historically these vehicles have been and still are involved in far too many accidents; this obvious trend needs to be addressed by engineering out the root cause of the problem which in this case is suitability for purpose.Road registerable concrete trucks have been widely used for the delivery of concrete in Australian mines for many years prior to and after the inception of wet shotcrete as ‘in cycle’ ground support in underground excavations around 1992. With this inception came a wide interest in the shotcrete process and an influx of new shotcrete contractors, all using road registerable concrete trucks to deliver the large volumes of Shotcrete required for these services and in turn largely increasing the use of these vehicles underground. The road registerable concrete trucks were difficult to control and each trip underground required the operators to maintain good management of the inherent risks. We virtually had no reasonable alternative for the industry and could only encourage the operators to drive with soft controls such as, reducing overall speed to a maximum of 15 km per hour when declining, regardless of the road conditions, coming to a complete halt prior to turning into any sharp corners, remaining in the same gear both inclining and declining.

Mar 21, 2011

By A Bossilkov

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

Jan 1, 2004

By S Flanagan, M M. Mete, A R. Tiryaki, M Guresci

First Quantum Minerals (FQM) operates the Cayeli underground copper mine in Turkey. In response to a lost time incident (LTI) that occurred at the mine in 2022, the mine management decided to introduce a new safety approach on-site. The initiative began with a comprehensive safety culture analysis conducted by Arti Consulting, involving focus group studies. Employees actively participated in candid discussions, sharing their insights on safety issues and offering solutions. These conversations were meticulously audio recorded, resulting in over 150 000 words collected from more than 100 employees. These transcribed narratives then underwent rigorous semantic analysis, with the assistance of a sociologist, to identify and dissect patterns of unsafe behaviour. This analysis found areas for improvement, particularly in near-miss and incident reporting, quality of safety toolbox talks and effectiveness of pre-work risk assessments. Subsequently, mine management deliberated on these insights and devised corrective actions. An emphasis was placed on involving all employees in the corrective actions through communication training, empowering them to own the decisions and changes made. These impactful measures were seamlessly integrated into FQM’s Think! Safety Program, which embodies FQM’s sensible health and safety strategy. FQM partnered with Strika Entertainment (Strika) to develop innovative visual-first safety communication tools that use illustration, animation and graphic design to simplify complex messaging into easy-to-understand edutainment. As part of this approach to safety communications, Cayeli and Strika revamped the safety toolbox talks to encourage employees to voice their concerns and receive feedback when their suggestions were implemented. The response from employees has been positive, with over 200 unsafe behaviours and conditions reported within the initial two months of launching the Think! Safety Program. Remarkably, the Cayeli Mine has not experienced any LTIs for the past 500 days as of 9 December 2023. This paper encapsulates the dedicated efforts to transform Cayeli into a safer mining operation.

Apr 16, 2024

Central to any business is its Asset Management Plan which encapsulates the business context and key organisational objectives such as profitability, safety and environmental standards. Life Cycle Planning (LCP) is a key component of an overall Asset Management Plan. A comprehensive approach to Life Cycle Planning forecasts the financial expenditure required to support the performance of the asset over the business life. It incorporates capital, maintenance and operational expenditure along with an estimation of economic life. Within its body the LCP provides the detail of the maintenance plan and method of its execution. Once optimised the LCP becomes the overarching plan executed through the application of several elements of the Asset Management Plan to ensure the return on investment from the assets is optimal. Each of the elements of the LCP is bound by a set of loops that provide information based on the analysis of outcomes. These loops drive the continuous improvement of performance and cost over the life of the asset. In this way we ensure that the LCP is a dynamic plan responsive to the changing business environment. The paper being presented today will describe the process undertaken and the outcomes derived when this approach was applied to a $600 M+ coal handling and preparation plant in QueenslandÆs Bowen Basin. It will also delve into the difficulties encountered from both technical and cultural aspects; the latter proving to be the most difficult to manage. It will describe the hurdles and barriers that hampered progress including the human influences and the natural desire to revert to what has been done in the past when things became a bit difficult. In the end the results are there to show that the upfront expenditure and investment in time was time and money well spent and the outcome has the operation well placed to manage the assets in a manner designed to deliver the optimal business outcome.

Jan 1, 2007

By D Tanzil, H Jones

Every mine will close! Charting a profitable course through mine operations to acceptable mine completion requires that risk and opportunity management planning of the mine life begin as early as possible in the life cycle. Management targets and metrics are required to identify and navigate the course to successful mine completion based on economic, social and environmental criteria. This paper outlines the application of The Metrics NavigatorÖ principles to the life cycle of a mine site. In general, metrics are required to make key strategic ideas apparent, transforming those ideas into a manageable set of quantitative measures that guide communication and decision making. For example, the chemical industry has established metrics that focus on the life cycle impacts of its products and eco-efficiency of their processes. Other industry sectors have focused attention on workplace and community well-being outcomes. These management metrics are necessarily organisation-specific, aligned to stakeholdersÆ expectations and the strategic outcomes sought, as well as the cause-and-effect relationships underlying key issues. Recently, the Global Environmental Management Initiative (GEMI), a consortium of multi-national companies, developed The Metrics NavigatorÖ. The guidance document provides a structured process for assessing and developing metrics for key environmental, social, and economic issues based on business and stakeholder perspectives. It incorporates best practices learned from the chemical and other industry sectors and has since been applied to develop metrics that guide life cycle strategies. The paper examines how the life cycle of a mine site could benefit from experiences in other industry sectors where sustainability metrics have guided strategy. It considers the potential application of The Metrics NavigatorÖ process to the life cycle of a hypothetical Australian mine site using the processes that have been successful in other industry sectors.

Jan 1, 2009

By R Moller

Reconciliation at large iron ore operations is a complex and time- consuming process. Often the volume of data and the large range of different stakeholders makes the process almost impossible. Up until recently geologists and engineers at these operations would spend hours cutting and pasting data in and out of monster spreadsheets, diligently comparing how resource/reserve models, grade control and survey pick-ups compare to what was actually produced. In 2003 the Sishen Iron Ore Mine in South Africa broke this cycle by implementing SnowdenÆs Reconcilor software. The implementation of a dedicated reconciliation system required a number of existing practices to be changed, with the involvement of stakeholders right across the mine. Data sources had to be clarified and validated, terminology had to be standardised, processes needed to be documented and some methodologies needed to be updated. This was a task that required significant effort by Kumba personnel so that the system could be successfully implemented. This paper provides a case study of the reconciliation system implementation at Sishen. It is a story of an operation that evolved from using a number of fragmented reconciliation processes to using a unified automated system. This paper outlines the key estimates and measurements that are used for reconciliation, details the characteristics of an automated web-based information management system to facilitate the process and provides some insights about the benefits that have been gained though the use of a rigorous reconciliation process.

Jan 1, 2005

By Pratt V

The economic, social and political environment of the mining and minerals industries is, as we all know, volatile and affected by constantly changing international forces. In addition, the outcome of negotiations with overseas customers is often uncertain for long periods, or even unfavourable. The industries and companies represented at this Conference are in an arena of high competition, risk taking and enormous capital outlay. They are industries which our overseas markets (rightly or wrongly) have criticised for industrial relations problems, unreliable production and uncertain deliveries. They are industries which have an urgent need to be cost effective and competitive at all levels of activity.A critical factor in the mining and metallurgy industries is, therefore, its human resources and its human resource management. It requires the full use of available talent, innovation, skills and qualifications within its workforce, and the appropriate management of these resources.

Jan 1, 1985

By L H. G McClean

Diversity, equity and inclusion are often cited as ‘important priorities’ by mining companies and industry organisations in their public presentations and reports, but is the minerals industry really making strides forward? The mining industry is the least gender diverse industry in Australia (WEGA, 2023). Women make up just 22 per cent of the mining workforce and mining has a gender pay gap of 15.1 per cent (WEGA, 2024a). Only 8 per cent of the CEO roles are female and 20 per cent of boards have no female members (WEGA, 2023, 2024a). Gender diversity, equity and inclusion is a highly topical issue with the recent release of the Respect@Work report, Western Australia Parliamentary Inquiry as well as the publication of company specific workplace culture reports and the national legislative changes to implement a positive duty for organisations to prevent sexual harassment in the workplace. This comes at a time of a skills and labour shortage in the minerals industry as well as declining geoscience study and participation. This is a perfect storm for our future workforce. Governments, industry associations, networks and companies are developing and supporting initiatives to make strides towards equity and inclusion, with some shining examples on both an industry and company level, but the dial is only moving slowly and, in some ways, going backwards. Every company is unique, but every company can review and support gender diversity, equity and inclusion. Actions to progress gender parity could include establishing a clear company position; ensuring that this position is cascaded throughout the company with appropriate training; reporting and reviewing gender participation as well as supporting positive workforce initiatives and a positive culture with a people-centric issues reporting process. At the industry level, there are clear gaps in the support for gender diversity and inclusion including a national voice and ‘one-stop-shop’ to support women in the industry and provide resources. Recommendations include improved co-ordination and collaboration of support for women as well as improved promotion of the suitability (and safety) of the industry for women. The new independent organisation, Women in Mining and Resources Australia (WIMARA) has the objective to address the challenges of gender diversity and inclusion as well as foster co-ordination, co-operation and collaboration between the different stakeholders and state or territory groups and amplify reach. To deliver the future workforce that the minerals industry needs, the time is now for the industry to make some giant leaps for womankind.

Sep 1, 2024

By Bell I. F

In 1985, ZC Mines (now Pasminco South) had been unprofitable for some years due to a combination of high operating costs, low metal prices, low head grade and an aging and inadequate mining infrastructure. However, the resource of metal in the ground was still of world class, even after some 80 years of mining. A major study, which was to be of two years duration, was therefore commenced to establish a practical and profitable long term mining strategy and to cost the infrastructure options needed for its support and thus form the justification for a capital expenditure program to take the mine profitably into the 21st century and its second century of operation. This paper discusses the rationale behind the methodology adopted and the nature of the results achieved in one aspect of the study - the determination of the mineable resource and the relationship between the head grade/quantity of the economically mineable resource and the variables of cut-off grade, cost structure, annual production rate and metal prices/exchange rates. The basis of the study was the designing of some 5000 scopes to mine out the entire resource for a range of cut- off grades and the assembly of the detailed physical data thus obtained in a stope-by-stope data base for financial and other analysis. Those scopes which were shown to be economically mineable were then scheduled for two optimum annual production/cut-off grade/metal price combinations to provide life-of-mine cost and value of production cash flows.

Jan 1, 1992

By T Walkemeyer, R Elliott, D Chang-Martin

Over the past decade, discrete element method (DEM) simulations have seen increasing adoption by the resources sector to inform the design of materials handling equipment such as transfer chutes, bins and hoppers. But, if ‘all models are wrong, but some are useful’ (Box, 1979) what approaches are available to check that a DEM simulation is useful? How to avoid garbage in equals garbage out. This work considers what properties of bulk solid flow behaviour are important to transfer chute simulation. Cohesive bulk solids (such as sticky iron ore fines) can develop sufficient strength to form a stable cohesive arch, this phenomenon is not well predicted by measurements of angle of repose. This work presents a two-part approach to the development of a useful DEM model that can be used to add value to the design and optimisation of bulk materials handling equipment. Part 1 is the calibration of not just one, but a range of material models chosen to envelope the range of anticipated materials that will be handled. This work describes the DEM simulation of a batch of direct shear cell tests to develop material models that can be measured by the same metrics routinely used to characterise the flowability of cohesive iron ore fines. Part 2 of this work describes systematic methods for validation of the transfer chute DEM simulations. The DEM model is only useful if it can adequately represent the typical problems observed within a transfer chute, such as blockages due to build-up and cohesive arching. Proper validation requires good observations. Validation examples of site observations are shown side-byside with simulations to demonstrate the adequacy of the DEM model and calibration approach. DEM simulations have the potential to add significant value by allowing engineers and designers to predict material flow-through equipment based on a range of material properties, allowing for stress testing designs and making iterative improvements.

Sep 18, 2023

In terms of tunnelling the mining industry is generally thought of as the crude cousin of the civil construction industry. Mining has tended to concentrate on speed and flexibility rather than the high standards required in civil tunnelling. Historically this difference has been based on the belief that such high standards were not required by the mining industry, they would slow down the development of the project and as a result increase the costs and extend the time period between start up and a positive cashflow.For civil works the construction of a tunnel is the project, for mining the construction of declines, crosscuts and drives are merely the means of accessing the orebody so that the real work can begin û MINING. Extraction of ore is the core business of most mining companies û it is what pays the bills.Though most mining companies have the equipment, the people, the knowledge and the ability to excavate tunnels, in the past mining companies did not appear to put the same energy into their tunnelling operations as they put into improving their ore extraction operations. In the past decade this appears to have changed, many mining companies now realise how important the correct excavation of a decline is to the success of the overall mining operation. They began to recognise that there were cost benefits to be gained in using the correct development techniques without overly sacrificing the benefits of speed and flexibility.This recognition also coincided with the growth of underground contractors whose predominant work was primary development (declines and ore access crosscuts and drives). The contractors again had the same knowledge, the same people, and similar equipment but their focus was different from that of the mining company û the contractors were focused on the development of the mine, the excavation of declines, crosscuts and drives. These deliverables were the contractorsÆ core business û itÆs what paid the bills.

Jan 1, 1999

By E Deucker, A White

Gold Fields Australia (Gold Fields) has identified that improving productivity through more detailed shift planning and operational control of mining activities is a key driver to the success of their business. The Hamlet mine was chosen as a pilot site to trial a system that would allow production engineers and shift bosses to align the execution of short-term activities with the longer-term goals of the organisation.Gold Fields partnered with Deswik to introduce an on-site, collaborative, web-based system to allow mine planners to quickly build-up a detailed, activity-based, shift schedule for the coming week from the 13-week plan. Multiple stakeholders could then review and alter the plan, and then track and manage the execution of the activities.The system is designed to be integrated with production data capture systems to allow tracking of progress towards completion for each activity, as well as to plan and monitor the equipment operating in the mine. Integration of systems allowed engineers to use the large quantities of production data being captured to make informed decisions in the operations environment.The system replaced a complex set of spreadsheets that required expert users in Gold Fields to maintain. By capturing the data in a central database, the planning process is transparent and historic data from the execution of activities is available for analysis to improve productivity in the future.The system has ensured that the highest priority and critical path activities for the business are completed at the right time, improving the efficiency of operations.CITATION:Deucker, E and White, A, 2017. Productivity improvement through collaborative shift planning and tracking, in Proceedings 13th AusIMM Underground Operators’ Conference 2017, pp 225–234 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 16, 2017

The current economic climate and demand for iron ore has resulted in mine operators being prepared to accept aggressive slope designs and associated failures provided that they can be quantified (ie volume of failure and clean up costs, etc) and incorporated into the mining costs, at a feasibility study level. This has numerous implications for pit slope design/geomechanics. Typically when geotechnical engineers conduct slope stability modelling a single value, usually the average or mean value for model input parameters (ie structural orientations, material properties and hydrological conditions) are chosen. The implications resulting from using a single value for model input parameters will vary depending on how the modeller has chosen the value, ie should the modeller choose a mean value from a log-normal distribution of material strengths an optimistic representation of the stability may eventuate, consequently if the designer decides to conservatively downgrade the values by a nominal factor, a pessimistic representation of slope angles may occur, which would result in excessive stripping and mine development costs. A more realistic and representative way to model the inherent variability of geological/geotechnical conditions would be to do so probabilistically. Whereby the modeller can assess the variability of the geological structure as observed/recorded during the core logging process and a similar approach for the material strength properties. The final model output would be a distribution of factors of safety in relation to overall slope angles, ie probabilities of failure for individual slope angles could be determined. This output (graph) could be modified by the mining engineer to incorporate mining costs as well as clean up costs for the respective slope angles and associated failure volumes, ie probabilities of failure. The author intends to provide a detailed overview of the processes involved in deriving a geotechnical design, ie; starting from the data collection phase (core logging/face mapping), through to the data interpretation and formulation of slope parameters; determining the variability and uncertainties associated with each of the process; ensuring that it is adequately captured in the model input parameters; and how the mining engineer could utilise this information to derive final feasibility study mining costs.

Jan 1, 2009

By J Bryant

In recent years the mining industry has suffered from skill shortages in a range of disciplines including mine geology. As a consequence, many businesses operate with incompletely filled organisation charts and technical professionals are frequently thrust into roles earlier than previous generations of geologists, engineers and metallurgists. Exacerbating the difficulties managers face with recruiting suitably experienced professionals is the churn of people through roles. Churn may be caused by internal pressures related to the rapid increase in projects and opportunities within a company or by external factors including the high workforce mobility resulting from the advent of fly-in, fly-out (FIFO). Historically, new entrants into the mine geology profession often received on-the-job training from their more experienced colleagues. This training, supplemented with targeted skills and knowledge enhancement through dedicated short courses, ensured the wide range of skills, knowledge and abilities required in the complex role of mine geology were continually renewed. Faced with an influx of new graduates and a dearth of mine geology professionals in the critical ten to 15 year experience range, the industry needs to develop new paradigms to ensure that the full business benefit of the mine geology function is delivered. This is increasingly important as the complexity of business planning built on geologically-based variables grows. Mine geologists are now faced with the potential incorporation of geometallurgy and waste characterisation along with energy efficiency, carbon-economy and other environmental issues into their roles. Providing baseline data, models, operational control and reconciliation for a wider range of variables further stretches the already limited geological resources available to the industry and exposes personnel with relatively low levels of experience to potentially business transforming decision processes. This paper outlines a successful approach to mentoring at the individual and team level. It discusses what went well and what could have been done differently from both the mentor and menteeÆs perspective with examples from case studies and offers insights into a new approach to dealing with gaps in organisation charts and high turnover of personnel.

Jan 1, 2009

By R J. Everett

The mining industry is beginning to adopt quality systems based on the requirements of International Standards for quality assurance, such as the ISO 9000 series. Indications from similar industries are that considerable benefits are to be had from their adoption. This paper describes the use of the International Standard ISO 9001 for quality assurance within BUKA Minerals Limited. This provided guidance for the development of a clear statement providing agreement on the processes to be followed and the outputs required when dealing with outside service providers. Discussion focuses on the interaction with BUKAÆs consultants and contractors during the specification stage, resulting from the application of quality assurance techniques. Risk analysis was used to identify and manage the risks associated with the companyÆs contract for geotechnical and mine design services and the tender for a mine development program of work during the feasibility stage of the project. Setting acceptance controls for the deliverables from such contracts is traditionally fraught with difficulty. BUKA used Failure Mode and Effect Analysis for exposing underlying risks that were not effectively being countered. The briefs were reviewed and additional controls were developed to manage the risk. These controls have provided clearer instructions to the consultants and contractors, indicated audit points for the company and defined the deliverables. There exists within the company, and among its outside service providers, a clearer understanding of what is to be achieved and how it will be measured. The process has imparted considerable confidence to both parties on how the work will proceed and what outputs are to be provided. Some discussion is provided on how quality principles are being applied throughout industry and commerce, generally, and how they may apply to the mining industry. The paper argues that, far from being an appendix to the tendering process, Risk Management should be a mandatory step integrated into the definitions of the work.

Jan 1, 1998

By C J. Larder, S E. Turner

The concept of underground grinding is not new, but to a metallurgist and a mining engineer this could be considered unconventional. The idea of pumping a ground slurry several hundred metres from underground in a single lift could also be considered to present a daunting engineering challenge. Using a practical example of a mine in Australia where the owners have requested not to be identified, this paper challenges the conventional thoughts on these concepts and shows that with basic sound engineering practices the production of a ground slurry from underground could potentially provide significant operating cost savings. The supply of ore from the underground mine is currently drawn from depths approaching 800 m below the surface. The cost of hauling the ore to the existing underground crushing station located 500 m below surface has been steadily increasing. A number of alternatives to reduce the mining and processing unit operating costs were examined by Sinclair Knight Merz (SKM) and the mining company. The most radical of these is the use of hydraulic hoisting of ore at an increased production rate. Numerous questions were asked, such as: How does one get a SAG mill or an HPGR crusher underground? Where does one locate a grinding mill underground? Does the technology exist to pump the slurry to surface in a single lift? What will be the cost benefits? What are the risks involved? The study covered the two main technical issues underlying the potential benefits. Firstly, technical evaluations were undertaken on the pumping technology currently available for single and multiple lifts to surface. Secondly, the issues relating to the feasibility of delivering and locating a SAG mill underground were reviewed. Although the capital costs for this project are significant, the operating cost savings showed a potential payback period of less than two years, and furthermore provide the basis for an increased mine life, especially at lower metal prices.

Jan 1, 2005

By J Johansson, B Johansson

The mining industry needs to attract and recruit young talented people. An important task is, therefore, to create an attractive mining workplace that engages with, and motivates youngsters who are not particularly interested in working in the industry. This paper aims to illustrate a way forward for the mining industry to form healthy and safe workplaces honouring key components such as knowledge, skill, co-operation, continual development and acceptance of diversity. This is a way to create a vision of healthy and safe mining work. The mining industry must work towards zero vision; a future without accidents and hazardous environments. In this paper the authors discuss different aspects of an ‘attractive workplace’ and summarises lessons learnt in 26 statements dealing with safety, both physical and social work environments, and social responsibility. The authors hope these recommendations will provide some guidance for how attractive workplaces should be designed for future deep mining.The paper is based on lessons from two large European projects, a Swedish-Polish project: The Smart Mine of the Future; and a European Union project: Sustainable Intelligent Mining Systems (SIMS). One of the authors was the WP leader of health and safety in both projects.CITATION:Johansson, J and Johansson, B, 2017. Attractive workplaces in future underground mining, in Proceedings 13th AusIMM Underground Operators’ Conference 2017, pp 99–102 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 16, 2017

Wetherstones gold deposit is located just east of the township of Lawrence, in the Otago District of the South Island, New Zealand. The paper will describe aspects of the mining and exploration history of the Wetherstones gold field, current knowledge of the geology of the deposit, and speculate on possible outcomes of exploration in the modern era.   As at the famed Gabriels Gully situated nearby, most of the Wetherstones gold is/was contained in, or recycled into modern drainages from, the Blue Spur Conglomerate (æBSCÆ). The BSC is the basal member of a wedge of auriferous non-marine sediments of latest Cretaceous age which are tilted against the Tuapeka Fault Zone, a structure of regional dimensions. In particular mineralisation of elevated grade (which cannot yet be reliably estimated) appears to be concentrated in an elongate basement depression (ægutterÆ) of width around 100 m, variable thickness to a few metres, and axial length in excess of 500 m. The gutter plunges from the base of alluvial mining (where it has been partly exploited by underground methods) to depths of more than 100 m, beyond which it remains open and untested.   The prospects for a revival of mining at Wetherstones depend upon confirmation of what is here inferred to exist, and the discovery of additional gold. The economic prospects of the project however are enhanced by what is known or indicated of the geographic location, and anticipated geologic, mining and metallurgical characteristics of the mineralisation, and consequent anticipated environmental management issues.   The recognition of gold contained in pyrite in the BSC represents an upside to project economics which has never previously been evaluated. The Wetherstones Basin covers more than five square kilometres in areal extent. There is no modern exploration record of the majority of this area, leaving open the prospect of the discovery of additional gutters, and primary mineralisation in the underlying schist.   Australasia Gold Ltd has embarked on a program to reassess the potential resources of the Wetherstones gold mineralisation, and to evaluate the feasibility of mining.

Jan 1, 2004

By Sorentino C

Mineral valuation may appear to be a special field of financial valuation when in fact it is a subset of general investment decision theory. The only significant difference in mineral valuation is that in the case of valuing an on-going mineral asset, ie a mine, often there is no initial capital outlay involved. One is required to determine what the mineral asset as it stands is worth. But this is the same problem as determining the maximum one could pay today and not incur a loss over the life of the asset. In other words one needs to determine the Net Present Value (NPV) of the asset. The two most widely used discounted cash flow methods, NPV and Internal Rate of Return (IRR) came of age with the rapid adoption of the personal computer and spreadsheet programs. The two methods are directly related as the IRR is a special case of NPV. NPV measures the absolute increase in real wealth that can be expected from a certain investment, which makes it particularly suitable for mineral asset valuation, but ignores the efficiency of the investment. In contrast, IRR gives the expected efficiency of the investment but ignores the increase in wealth aspect. IRR has two serious theoretical weaknesses; multiple IRR's and a very rigid assumption about the rate of return of reinvested proceeds, plus if no initial equity expenditure is involved there is no IRR. The choice of the ""hurdle"" rate can also be a problem and in certain circumstances one can obtain different rankings of mutually exclusive projects using IRR and NPV. Although NPV and IRR supposedly measure financial risk, in fact they only address a very narrow area of risk, namely the time value of money given the real discount rate. They side step the issue of what the real discount rate should be and varying degrees of risk. The classical way to establish the real discount rate is to use the weighted average cost of capital.

Jan 1, 1994

By R Wheeler, E Stalenberg, J Lemon, M S. Crowther, D Lunney, K Ross

Gunnedah, in north-western New South Wales (NSW), including the town, the surrounding Liverpool Plains and the Pilliga forests to the west, are currently the subject of intense mining interest for coal and coal seam gas. Achieving positive outcomes for koala conservation on mined landscapes will require a sound grasp of koala ecology; and local knowledge of koala movements, tree choice and associated threats to the continued survival of koalas, particularly roadkill from increased mining infrastructure. This requires a research-oriented approach to testing ideas applicable to the long-term survival of koala populations. Our recent koala research in NSW has shown that, in 2006, Gunnedah had the largest koala population west of the Great Dividing Range, and the only population in NSW that was expanding. That prompted us to instigate a detailed study in 2008 - 2011 to determine, inter alia, whether the koalas were using trees that were planted in the 1990s to cope with rising soil salinity. Our GPS-tracking has shown that regrowth trees as young as ten years old can attract koalas. In 2009, the demise of about a quarter of the local koala population from an intense heatwave gave us a foretaste of how habitat and climate change interrelate at the landscape scale. We are now examining the optimal combinations of tree choice, and patch size and shape, for habitat restoration. This will be relevant to local coal seam gas and coal mine proposals, and ongoing mitigation actions. The Senate enquiry of September 2011 on the koala and demonstrated the intense public interest in the survival of this iconic species. Its subsequent listing for Queensland and NSW under the Commonwealth Environmental Protection and Biodiversity Conservation Act 1999 further raises its profile and obligations for management of koalas and their habitat. It will take considerable effort to manage the Liverpool Plains koala population for the next 50 years in the face of extensive land-use changes from mining, and the attendant threats from road kill, compounded by the new threat of climate change manifesting itself as an increased frequency of heatwaves and more severe droughts. This paper describes the research that underpins these conclusions, identifies some of the research approaches needed, argues for working strategically now, rather than try to patch up matters after the event, and presents a set of guides for environmental plantings. CITATION:Lunney, D, Lemon, J, Crowther, M S, Stalenberg, E, Ross, K and Wheeler, R, 2012. An ecological approach to koala conservation in a mined landscape, in Proceedings Life-of-Mine 2012 , pp 343-352 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 10, 2012