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This paper is directed at the problems flowing from Australia's capital gains tax (CGT) on the disposal of exploration and mining tenements both in Australia and overseas. It will seek to identify the issues and give some idea of the dollar consequences of decisions lacking forethought. The paper should not only be seen in the context of Australian tenements. CGT applies to the disposal of any assets by an Australian resident anywhere in the world. Offshore incorporated companies are not necessarily free from CGT risk where it can be shown that control management and control of the relevant company is in Australia. Also the disposal by non residents of Australian tenements are potentially caught by CGT. Some will ask what has taxation got to do with a valuer who merely determines the value of assets. These days no determination can be blind to the consequences. Whether the consequences can encourage a movement in value is another thing dependent upon the circumstances; but? A role of an experienced taxation consultant is to point out parameters within which associated professionals can work. The parameters will vary from case to case, but these when clearly indicated may be of help to persons such as valuers. When one comes down to it real estate salesmen are never wrong. They have a feel for the market and almost through self fulfilling prophesies achieve sales at their guestimates. Whether they could have achieved higher considerations become virtually academic in the process. Of course I am not suggesting that tenement valuers can be compared to real estate salesmen, or am I? What is the value of a tenement? Is it the DCF/NPV type of generated value based on a large number of variable factors (ie what one may call the fundamental value)? Or is it what another may pay to purchase that tenement if it were on the market at an instant point in time? How big is the market, the quality of the bidders, the size of their purses, the needs of the buyer for comfortable fit, the premiums for foreigners, the standard of the marketing, the industry intelligence level of the bidders, the obligation to farm/sell down? The list goes on endlessly. One question must be.asked-"Is a range of values acceptable for tax purposes". ie Would any tax consultant ever provide a valuation to the Australian Taxation Office that indicates three or more possible values ie

Jan 1, 1987

By S Juras

The terms measured resources and proven reserves denote the highest level of estimation confidence in all of the major classification schemes. But what do they really bring to today’s project or mine with respect to production planning and expectations? Initial reserve declaration does not need measured resources, just indicated resources. Economic viability of a project is assessed on total reserves with nary a bonus for the amount of proven reserves. Production plans are based on grade and tonnage goals that may only coincidently correspond to proven reserves. So are the measured and proven categories still relevant? Historically, and almost exclusively in underground mines, companies only allowed mining in areas of proven reserves. Some companies still follow that philosophy. But many others will mine a mixture of probable and proven reserves without hesitation. Also what of the undeveloped project in a new district – what is to be made of their declared measured resources and proven reserves? Measured resources are commonly set either by some type of proximity to data scheme or a matter of ‘feel’ based on the qualified person’s experience. The parameters for reserve conversion focus on the project as a whole and then a portion becomes classified as proven reserves almost solely based on whether the resource category is measured. So should the mining industry continue to use these categories of resource and reserve classification? This paper will present arguments about making these categories once again more relevant. A more disciplined usage of these categories may re-introduce their relevancy in public disclosures of resources and reserves. As well a more consistent usage in operations may lead to increased confidence in managing production targets and costs.

Aug 22, 2011

By Walker E. R

IN the early age of steel it was made hy what is known as the cementation proeess, in which wrought iron was embedded in charcoal and heated in a mufflc furnace to a tcmperature of approximately 1100° C. for varying lengths of time, the length of time depending upon the amount of carbon (or better known in thosedays as the degree of hardness) required in the finished product.By this process the resultant product obtained was not of uniform quality, and because of this uncertainty of quality Huntsman was induced, in the year 1740, to introduee what is known as the crucible process.This process consisted of cutting into small pieces the product of the cementation process, placing these pieces in a crucible, and melting them down with the aid of a eoke-fired furnace, after which the molten metal was cast into suitahly shaped ingots, from which could be hammered any desired shape.A section of crucible furnace is shown in Fig. 1. By this means a product, very uniform in character, was produced.The process is still in use, but, owing to its high operating cost, it is mostly eonfined to the production of very high-grade carhon and alloy steels. Its position to-day as a producer of these high-grade steels is, however, being very seriously challenged by the electric process.It was owing to the excessive cost of crucible steels and the need of producing a steel in commercial quantities and at a reasonable cost, that led Sir Henry Bessemer to introduce what is known as the Bessemer process.

Jan 1, 1930

By R Billingham

QueenslandÆs new safety legislation for metalliferous and coal mining (Mining and Quarrying Safety and Health Act 1999 and Coal Mining Safety and Health Act 1999, together with the Regulations) came into effect on 16 March 2001. The legislation places clear obligations on mine owners, operators and workers to have a safe place of work and to manage risks to safety and health. It also places obligations on contractors, designers and providers of services. The legislation is non-prescriptive in that it states what outcomes must be achieved and not what must be done. The key issue is that the risk of injury to people must be at an acceptable level. The legislation creates a Mines Inspectorate with powers of inspection and audit of mines, their safety management systems and the management of risks. Auditing of the risk management process is carried out against standard risk management techniques and directives for corrective action may be issued when audits reveal non-compliance or unacceptable levels of risk.

Jan 1, 2002

By A Jewbali, L Allen

At Newmont Corporation drill hole spacing studies are done to support the business in understanding the cost of collecting additional information (with a specific focus on drill hole sampling density) versus the value of additional drilling in terms of resource risk reduction. For the last 20 years drill hole spacing studies have been executed in an effort to answer the following question: What spacing should the deposit be drilled at to achieve a certain level of resource confidence so that when mining occurs the resource model delivers as predicted ie what is the optimal sampling density? The optimal sampling density supports a resource model that provides a sound foundation for mine planning purposes and resource/reserve reporting. At Newmont Corporation drill hole spacing studies are now a requisite for understanding drill data density needs for new deposits and near mine expansions. This paper details the evolution of drill hole spacing studies at Newmont Corporation in terms of methodology and usage.

May 24, 2023

The blasting of the 2190_6095 stope at Kimberley Nickel MineÆs Sally Malay operation in Western Australia is an example of what can be achieved with electronic detonating systems when a drill and blast engineering team is faced with complex blast geometry and a major pump station in close proximity to the stope. Using Dyno NobelÆs HotShotÖ system, the engineering team successfully designed and initiated the 36.5 Kt stope firing, with a powder factor of 0.35, resulting in no damage to the pump infrastructure, better fragmentation of the ore and less overbreak in what had previously been a geotechnical and geometrically challenging stoping environment. This paper will discuss the design parameters used for this stope blast as well as the benefits the operation found in using precision detonator timing in this 252 hole shot over two levels using a combination of up and down and slashing rings that were initiated in four different directions.

Jan 1, 2007

By H Arvidson, C Morley

Reconciliation has become very topical over the last ten years but how do we distinguish what is good practice, and even more importantly, show how it adds value? Reconciliation at Anglo American has received support from the very top of the company and this has enabled success in the design and implementation of a range of processes, reporting activities and actions. Focus has been on full Mine Value Chain Reconciliation (MVCR) from Resource to Product and on proactive cross-functional engagement. A standardised set of reconciliation definitions and relationships are used at all mines across the company to diagnose planning and performance issues. Results are formally presented in an efficient dashboard format, accompanied by a concise narrative to communicate what has been learned and what is being done to correct, improve or change practices. Importantly, effort has also been made to sustain MVCR by embedding good practice and quantifying the benefit of reconciliation explicitly via linking results to value.This paper sets out the lessons learned from the past two-years’ journey, highlighting areas where good practice has been defined and achieved. A ranking for quantifying reconciliation confidence over time is presented as a means of putting results into context and continuously improving the reconciliation process. Finally, a solution to define the value that can be derived from reconciliation is described, detailing how cross-functional personnel meet monthly to review results and implement actions that are tracked in terms of value creation.CITATION:Morley, C and Arvidson, H, 2017. Mine value chain reconciliation – demonstrating value through best practice, in Proceedings Tenth International Mining Geology Conference 2017, pp 103–116 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 20, 2017

Many mining companies aim to integrate sustainability principles into their new projects. There is an intention for improvement, but frequently this results in little more than 'business as usual' projects that retrospectively categorise controls for environmental and social risks as sustainability initiatives as part of a public relations exercise. The successful implementation of sustainability requires a change of mind-set and behaviours at an organisational and personal level. In addition, sustainability incorporates a very wide range of interests and technical disciplines. One of the key challenges is in understanding how and when to pull these diverse threads together within a project or organisational process. This paper will explore a number of themes: What does it mean to implement a project in accordance with sustainability principles? How far beyond 'business as usual' is it reasonable to go, and what is the business case for this? Why do the intentions for sustainability sometimes fail and how can we prevent this happening in future? People are instrumental in delivering sustainability; how do we embed sustainability thinking into their behaviours and decision-making? The approaches that have been taken to integrating sustainability in design; what has and has not worked and some of the barriers to integrating sustainability into design? The authors will discuss these themes drawing on case studies from URS' experience in integrating sustainability into large projects. The authors will discuss the need for: a strategic approach which provides a simple framework for tactical decision-making and the consequences of taking tactical decisions in the absence of this framework, alignment of the project team and promotion of a culture of innovation, a shift from a risk/compliance mentality to an opportunity identification mindset, and a systematic approach to integrating sustainability into project design processes.

Jun 1, 2010

By P B. Hills

Increasingly over the past couple of decades, the importance of understanding the in situ stress regime in underground hard rock mines has become accepted by all. Providers have responded to this requirement and various techniques for undertaking the measurements have been honed while others have slipped from use. It is a simple, though not inexpensive task to engage a provider to undertake the require measurements, and a comprehensive report will ensue. So, what has actually been obtained? What should the geotechnical engineer do next? What tools are necessary to do so? Regardless of the method of measurement, the report will describe the location of the measurement site and describe the basis of the methodology used in undertaking the measurements and a log of the measurement program. Finally, it will include the results, which should incorporate the normal and shear stress components of the full stress tensor. Ground control management plans (GCMP’s) and stress summary reports and spreadsheets prepared by site geotechnical engineers always include the magnitude, trend and plunge of the principal stresses. Remarkably few site-based summaries include the full stress tensor. This is a significant gap as the full stress tensor is vital for any further data manipulation. However, without the algebraic tools to undertake those manipulations, their value is diminished. This paper seeks to provide a checklist of ideas to be considered. It provides commentary on the options available to dissect the stress measurement report and ensure that the maximum possible value is derived from it. The manipulation and presentation of component stress data is also discussed. The various methods of stress measurement are not the focus of the paper but some of the strengths and weaknesses of them over which the site geotechnical engineer has some control, are highlighted.

Nov 29, 2022

By T M. Nester, D J. Reardon, A N. Page, B J. Barsanti

The load capacity of a friction bolt has long been regarded as 4 t/m of embedment for ground support design analysis and supported by in situ pull test results. In recent years, the authors have observed lower pull test results or inconsistent results which were rarely sighted in the early 2000s. The lower pull test results indicated in some cases that reliable friction bolt capacity (≥90 per cent of results) is closer to 3 t/m of embedment with some geotechnical engineers adjusting the ground support parameters in the design work accordingly. This can be in contrast with other mines which reliably obtain 4 t/m (or greater) using the same suppliers bolt in similar ground conditions. This raised several questions: • What is the effect of poor installation (bolt twist or bolt hole deviation)? • Does the performance of friction bolts vary in different rock masses? • Does bolt performance vary between suppliers? • What effect does increased jumbo feed/percussion/rotation settings have? • Have the bolt dimensions or steel strip width changed? • Have the physical bolt properties changed? • Have the steel properties changed? This paper was aimed to answer as many of these questions as possible and discuss each variable in detail. This project included friction bolt trials at various mine sites across Australia, multiple friction bolt manufacturers, steel manufacturers and laboratory analysis. The paper also includes discussion on what the authors consider best practice for pull testing. It should be noted, the terms ‘friction stabiliser’ and ‘split set’ used in this paper are used in a generic manner and is not linked to any specific ground support supplier. Whilst its acknowledged within the industry the term split set and friction stabiliser is used interchangeably, the authors acknowledge that the term split set is a trademark of Split Set Mining Systems and has been used in context in this paper.

Nov 29, 2022

Anyone who has driven backwards using only their rear view mirrors knows how difficult it is to avoid spinning the steering wheel the wrong way. So why run your mine that way? Traditionally Reconciliation has focused on the past performance of the mine. In this paper we make a case for Prognostication û the act of forecasting or predicting something in the future from present indications or signs. Reconciliation is a common activity carried out at most mines around the world. Countless geologists and engineers spend hours poised in front of spreadsheets diligently comparing how their resource/reserve model, grade control, and survey pick ups compare to what was actually produced. The result is usually a group of factors, which are applied to future estimates in an attempt to better predict how the operation may perform. Unfortunately, if the road ahead isnÆt the same as what you have just been down, youÆll be æoff-roadingÆ in no time! An alternative is to constantly collect and analyse key measurements that are used to calibrate critical estimates in an iterative process. When variations occur, they are analysed and corrective action is taken to ensure the estimates and measurements realign. In this way the estimates become forecasts and can then form the basis for decision making to ensure that what does happen in the future will match the plan or schedule. By automating this process, some mines have been able to be proactive on a daily basis in order to improve the overall performance of the operation. This paper outlines the key estimates and measurements used for reconciliation, details the characteristics of an automated web based information management system to facilitate the process and provides some insights about how mining operations might move beyond reconciliation.

Jan 1, 2003

Most mining operations have been happy to live in blissful ignorance of what their equipment is really capable of. Shareholders have been shown increasing tonnes output per employee (due to rationalising employee numbers). It is now known that the best practice for large mining trucks is 52 per cent higher than average or best practice for excavators is 41 per cent higher than average, or 38 per cent in shovels or 35 per cent with draglines, etc. The data is available. The bell curve of performance is flat. Substantial underperformance is rife. If you are working in or supplying equipment or services to one of the majority of operating mines that donÆt achieve best practice surely you want to know why. Or maybe you donÆt? For many mining people this sort of knowledge could be dangerous to their career so keeping the MD or CEO in the dark is a good option. Many suppliers donÆt want the performance of their equipment benchmarked? Mining consultants donÆt have the data so they are happy to keep guessing. Unfortunately, many Business Improvement or Business Excellence projects are about ticking the participantÆs æcareer boxesÆ. The first step to capacity utilisation is knowing what the capacity is. Even then people and culture will get in the way. People are the biggest hurdle to capacity utilisation. This paper will discuss what the mine of the future (and today) will need to do to utilise the productive capacity of its assets. It is not just benchmarking. It is not just automation. It is not just technology. It is about engaging those people who impact on equipment performance; right from the operator up to the Mine Manager. Doing it better involves a process to facilitate change and a culture which says it is OK to try even if you are wrong.

Jan 1, 2009

By J Vann

The philosophical context of many activities in mine geology can be an important lever in adding value to operations. For mine geologists (including resource and grade control geologists) we argue that the tasks of problem formulation, observation and data collection, interpretation and modelling invoke various philosophical considerations whether the practitioner is aware of them or not.Constructing testable models to explain reality is the definitive aspect of any activity claiming to be ‘scientific’. A primary goal of mining geology is to build models that accurately predict reality to an acceptable degree and these include litho-structural, stratigraphic, grade control, resource or reconciliation models. What’s more, in mine geology we are often able collect additional drill samples or access new underground openings, for example, that can provide relatively rapid feedback on how predictive, and therefore useful, our models are. In this paper, we describe the key philosophical frameworks proposed for conducting scientific investigations, including falsification, the method of multiple working hypotheses and structural concepts of scientific theory. The strengths and weaknesses of these approaches are discussed and an attempt is made to relate them to activities undertaken by mine geologists. Common perceptions of what constitutes the scientific method have been dominated by how scientists do experimental physics and chemistry in particular. There are very important differences in the types of problem confronted in these experimental sciences compared to the ‘historical sciences’, such as geology, where the processes studied are unique and only evidential traces of past events are available. The philosophical implications of attempting to validate numerical geological models, such as resource estimates are also briefly considered.Some practical conclusions are drawn about how mine geology activities can be better implemented if practitioners are cognisant of the importance of philosophical considerations when attempting to gain new knowledge through a scientific investigation. We believe that the implications for creating additional value to a project or operation can be very significant when geology is applied by a practitioner with an understanding of the philosophical basis of the activities we think of as constituting a scientific investigation.Remember that all models are wrong; the practical question is how wrong do they have to be to not be useful? (Box and Draper, 1987, 74 p).The demand that theories be highly falsifiable has the attractive consequence that theories should be clearly stated and precise. If a theory is so vaguely stated that it is not exactly clear what it is claiming, then when tested by observation or experiment it can always be interpreted so as to be consistent with the results of the test. (Chalmers, 1999, 67 p).

Aug 22, 2011

Risk Management has been applied relatively slowly in the mining industry. Except for the risk concept application in financial considerations, the application of Risk Management in safety management has been far from satisfactory. When applied it was treated in a global occupational safety and health sense. Regardless of how much the mining industry has progressed over the years it is still, in many respects, `state-of-the-art' business. The safety aspects of mining are well known and yet little understood by the public. Regardless of what has been achieved so far and how much effort has been put into it, mining is regarded as an unsafe and somehow rude business. Safety records of the mining industry vary from State-to-State. Latest mining related disasters in PNG and Queensland and some other fatal accidents support this public perception. They purport a need for change in managing safety in the mining industry. The latest mining fatalities have raised the issue: What must be done to improve safety standards? Duty of care, risk management and system engineering concepts can provide some answers. Risk Management principles which have been advocated for some time provide many answers and explanations and can make safety management more constructive and workable. What has been missing so far is that this concept has neither been applied nor has been modified for its practical application and purpose on a larger scale. A risk management approach to the management of safety and health in the mining industry is addressed, herein. This approach does not attempt to provide the solution. It does, however, provide a basic understanding of what Risk and Risk Management are all about. Rational management of risk is addressed in the life cycle and system contexts. A system of continuous improvement is applied. There is always a chain of events, outcome, exposure, consequence(s), and consequence(s) value(s). It means that development of an event takes place in time and space. Dynamic circumstances have been created in or within the system. It is a decision-making process designed to provide a methodology which is directed not toward a mathematical model but toward easy use and application in dynamic working environment, by decision-makers who can be anybody from either a risk taker or a risk creator. The emphasis is placed not only on arriving at the best practical, possible and fair decision but also on structured and systematic acquisition of knowledge about the system, its hazards and associated risks, hence increasing the decision maker's ability to manage the decision-making process related to the management of risk.

Jan 1, 1995

The invitation to speak today was in the form of a single sentence instruction: How does your company run and how do you communicate from top to bottom? It looks like I'll have to let you into our little secret. The team at Croesus know what works for us but we've never talked about it with others - least of all presented it at a conference such as this. In fact we tend to avoid the jargon normally associated with Best Practice or TQM, however in our own way, each of our staff are 100 per cent loyal to our company's aim to maintain and strengthen our commercial success. Just how we achieve this at Croesus is the subject of this presentation today, but first a little history. My dear old grandfather arrived in Kalgoorlie, as a mining engineer 100 years ago. Do you think he would have chuckled if someone suggested to him that a hundred years later we would just be starting to understand Kalgoorlie's geological mysteries? Well, here we are 100 years later and Croesus Mining is fortunate to be part of a generation now realising the true potential of Kalgoorlie's Goldfields. This provides us with a very fertile field in which to sow the seeds we can obtain from the World's Best Practice in Mining and Processing. With each new mineral deposit being discovered, old theories are being exploded. Each new deposit has a personality of its own, leading to some belated pioneering theories of where to drill next, and how to reduce internal costs so that we can win the war against constantly increasing external costs. What we have now and what the old timers didn't have is a huge database of geological input spanning several gold booms and a couple of nickel booms. My only interest in history is to pick up the points that may help us for our future. This is what we are doing in our company which is something of a David, in the David to Goliath range of mining companies in Australia. As a humbling thought; of the 115 164 tonnes of gold that the world's mines have produced throughout history, four tonnes have been produced by Croesus Mining. That's equivalent to 0.003 per cent of the total world's gold production. In the past financial year we achieved a dividend yield of five per cent. To put this into perspective, that's over twice the dividend yield of BHP, Australia's largest company. As we are somewhat less known than BHP, let me spend a few moments giving some particulars of our company's background.

Jan 1, 1995

The following data are put together to assist those who are responsible for ordering stores for mines and works. When making out a list of mine stores for a new plant, one can hardly be expected to remember everything, still it is all the more important that articles should not be forgotten, should the mine be situated in an out of the way place, where the manager has to look several weeks ahead. A man who has been accustomed to buy stores on a small scale, from local merchants, where he could pick out personally what he wanted, may suddenly find himself in a place where he has to order wholesale quantities or make out store lists to send contractors for quotations. As it is of course cheaper to purchase stores by the hundredweight, coil, barrel, etc as the case may be, in which they are made up, than to break such a parcel, the way in which the materials are placed on the market is mentioned, so that those who don't know may take full advantage of wholesale terms. The most frequent sizes and brands employed in connection with Australian mining are also mentioned. It would be useless to enumerate all sizes made by the trade, as many would be of no value for our purpose; still I have put down what will serve as a reminder to the manager to mention what size he requires when giving an order, such as the diameter of dynamite cartridges a slight neglect of this sort has often caused serious delay. By mentioning certain brands I do not wish to recommend them in preference to others inadvertently omitted they are simply mentioned as some of those frequently met with.

Safety and health at work is about people. It is about people who plan for work, organise work and perform work. It is about those who come in contact with the workplace and those who are responsible for the workplace. There are wider ranging safety and health obligations that are imposed on the industry stakeholders that span all phases of the production process. In all cases, those responsible for discharging the obligations must ask the questions: Is what we propose safe?, can it be done safer? and are we sure? What we learn from recent legal cases before the courts is that it is essential that all stakeholders work together in a collaborative way when discharging these obligations. Safety and health at work cannot become an issue that is viewed only through the eyes of a single stakeholder group. The reason for this is quite simple. The interrelatedness of the responsibilities that are imposed on each of the stakeholder groups, means that the performance based legislation simply wont work, where an active model of communication and consultation is not in place.

Jan 1, 2005

By I Kolomaznik

Each technological process can be reduced on the transport networks, and namely on the parametric networks and the non-parametric ones. The parametric networks are created by the piping, electrical cables or channels. The non-parametric network is created by the ways, suspended grooves, trackages and also by the belt conveyors or other conveyors for continuous material transport. If we reduce the technological process on transport networks, then, by the creation of these networks models and their mutual interconnection we obtain the model of the whole technological process. The model can be understood as the universal one, without exaggeration, because it is valid for any technological process. However, for us the mining production process is important what represents the mining and transport of raw materials under the support of the ensuring system. In this contribution one of the first attempt is described, and namely how to connect the parametric network which has been already worked out very properly with the non-parametric network what is presented in this contribution by the transport line of belt conveyors.

Jan 1, 2003

By Rowlands N. J, Zimmermann D. O

The Engel Model search simulator is described with particular emphasis on preparation of input parameters. The computer has a "black box" role in the same way a telephone or radio is a "black box" in communications. A search technique (sensor) is selected and applied in two stages of'search, namely, reconnaissance and detailed. The model relies on knowing and quantifying the parameters of the target sought and the search technique; this is usually done by analogy studies from available literature and experience. The parameters are then balanced by feasibility studies on the search area. Case histories show that the study makes the user aware of what he is likely to find rather than what he wants or needs to find to be viable. Two case histories are presented: one for Mississippi Valley type lead- zinc deposits and another for stratiform copper. The first study showed particular benefits in the input stage and highlighted the fact that one could expect a lot of encouragement by way of interesting results but with little chance of finding the high-grade,

Jan 1, 1974

McLeod: Without getting into the argument as to how well we can know our resource levels specifically in the immediate short term, I would like to make one or two points about the future, and perhaps try and persuade people that they are not really facing a doomsday. It is fair to say that over the last few years the rate at which we have increased our resources has far exceeded the rate at which we have used them, and this is likely to continue for quite a few years yet. As people are now looking for a substitute for petroleum, later on we will be looking for a substitute for coal, should the position get serious. After all man is pretty versatile, has plenty of initiative-and makes allowances for experience. It has been demonstrated here by the way people are looking at use of low quality coals and better use of the coals that are available. It would be fair to say that what now we regard as economically submarginal deposits will, by the time we need them, become economic. I think that there is quite a lot in front of us in exploration and finding new reserves. I would like to have comment from yourself sir, because I recall reading a report of a meeting, here in Wollongong I think it was, in which you addressed the local branch on the future of coal in Australia, and you said that the coal basins of Australia had been well explored and there was not much chance of new discoveries. Since that time we have seen some thousands of millions of tonnes turned up in the Galilee Basin of Queensland, we have seen five hundred million tonnes turned up in Lake Phillipson in South Australia. Do your previous comments still apply? I would like to hear from some of the exploration people, who are operating on an Australia-wide basis, as to how they regard our chances of discovering significant new deposits and significant extensions of known deposits. H,artnell: Mr. McLeod has asked me to comment on what he has just said. I think that the important thing is that our knowledge of the main coal basins in Eastern Australia is increasing in detail but for the most part the extent of coal basins is not being increased in respect of their superficial areas. There are additions but they are not substantially changing our expectation of what the main coal basins will be. I believe that our task is essentially to intensify our knowledge of the main coal basins that we know about. This is important for example for the various reasons that Mr. Roach was talking about, that is the problem of surface alienation, jeopardising the chance of recovery when you go to underground operations. My approach to this whole problem is predicated on the belief that coal has a special destiny to perform in the next fifty years. I believe that it is going to take up to fifty years and maybe a little longer before the enormously demanding technology for nuclear power recovery is in fact achieved. When it is achieved the supply of energy to the world will be enormous, much beyond what we have ever even dreamed about. The mind boggles at what the people of the middle of next century, of two thousand and fifty, will command in the way of physical resources. It is going to be, I believe, tremendous, but the technology involved is very demanding. I mentioned to Mr. McLeod the other day that according to the information that I got in November last, 60% of the nuclear power stations in the United States were out of action, by automatic cut offs because of safety requirements. The technology of breeder reactors seems each year to be a bit further off. In the meantime coal I am sure is going to be called on to supply power directly to fluidised bed and other technologies for power generation. It is going to be called upon in the near future, I believe, to supply liquid fuel on a vast scale and the only thing in my view that we should be thinking about is whether the coal producing countries of the world will succeed in producing as much coal as is going to be demanded. I believe the real challenge to the coal mining industries of the world is that they may fail to do what is going to be demanded of them. This is a challenge I believe to mining technology. I think that we should be working deliberately and energetically finding ways and means where underground recoveries, instead of averaging 50%, can average 50% plus, plus, plus, and this is the first requirement. We should be spending many millions every year, here and overseas, on increasing our means of winning coal because every tonne of coal that is alienated and left irrecoverable in the earth is going to weaken the capacity of the coal mining industry to fulfil, what I believe to be its destiny in the next 50 years.

Jan 1, 1975