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This paper briefly discusses the negotia- tion of the more important provisions in agree- ments for exploration and mining rights with Pacific countries. LAND RIGHTS Land rights are complicated and sometimes controversial in many of the Pacific countries. In some countries, a company will have to deal with land owners directly; in others, the government will act as intermediary. Inevit- ably, a company will have to deal with both. Mining companies need to be sensitive to the culture and particular interests of the land owners and of their history in defending their rights. The issues are too complicated to be dealt with here. Some mining companies have spent, and will continue to spend, considerable time trying to understand them. It will " require patience, perseverance, sensitivity and unflagging optimism. The better advised companies will ensure that their local repre- sentatives get to know the land owners, under- stand their concerns, and will pursue a policy of keeping them informed on a regular basis of all of the company's activities and proposed activities. Good community relations are the keystone for good mining operations in the Pacific. Most countries will require the submission of an environmental impact statement so that they will know in advance what effects a pro- posted mining operation are expected to have on the environment and how it is intended to deal with them. They will also want to approve the company's environmental reclamation and rehabilitation plan. Let's face facts right away - mining, by its very nature, is not going to improve the environment. There will be waste discharges, emissions and deposits. They will affect the land, air and water and hence human, marine and animal life and vegetation. There will be sounds and odours and the esthetics of mining operations, though perhaps pleasing to geolo- gists and mining engineers, will not please Others.

Jan 1, 1987

By A Cooper

The current financial climate has given rise to fears that falling mineral prices and tight credit will force mining companies to cut back on production and new project development in a bid to cut costs and conserve cash. However, a prolonged squeeze on global supply can have only one result: a massive and potentially explosive demand for metals in the not-too-distant future. A resurgent global economy will also generate dramatic new demand for oil and energy, with a return to higher oil prices likely. How then should the mining industry plan for the future? In-pit crushing and conveying (IPCC) could lead the way as a partial or complete substitute for trucks. In 13 of 15 studies undertaken by Sandvik and Snowden, comparing IPCC with truck-optimised pit designs, IPCC generated operating savings ranging from US$0.18 to US$0.82 per tonne moved, compared to trucks. Trucks have higher operating, maintenance and energy costs than conveyors. New emission standards on diesel engines may make them more emission friendly but less efficient in terms of energy usage. With far more efficient energy use and cheaper operating costs per tonne moved than trucks, conveying offers an attractive alternative for the bad times ahead and into the apparent energy depleted future. When evaluating alternatives, a reasonable first step would be to conduct a scoping level study which analyses the differences in capital and operating costs between a truck and shovel operation and an IPCC solution. The study can also determine what type of IPCC is best suited to the particular mining application. The results can then be used to decide whether a more detailed study is justifiable. IPCC is a proven process that, with a fresh mindset, can make a significant improvement to mining operations. Sandvik (as an OEM with a full suite of IPCC equipment) can undertake these studies in ten working days in conjunction with Snowden or any other independent mine planner who knows how to schedule for IPCC. Because most mining industry personnel have been æborn and bredÆ on trucks and shovels û this paper focuses on some of the practical considerations necessary to make IPCC systems work that the Sandvik Technical Services Group has encountered during these studies.

Jan 1, 2009

By J C. de Vries

When times are tough in the mineral industry û as they have been for some time û typical responses by mining companies are to cut costs and/ or increase production. The latter is seen to spread fixed costs, thereby also reducing unit costs per tonne mined. However, most mineral deposits respond to increased production rates by lowering ore grades, so the reduction in cost per tonne of ore does not necessarily result in a reduced cost per unit of metal produced. The authorsÆ experience is that this process often leads to a mine plan that is a long way from optimal. Producing to the point where marginal cost equals marginal revenue may work well in a manufacturing operation, but it is not necessarily the best strategy for a mining company with a depleting resource. Variations in tonnage and grade with depth, ore reserve optimism and a variety of other factors conspire to produce variations in production rates and grade that often result in suboptimal outcomes and potential mine failure. Added to this is the focus of industry analysts and senior corporate management on such measures as unit costs and ounces in reserves. This is perceived to have the perverse effect of driving the share price down when strategies are adopted that actually improve the value of the mining operation, and vice versa! Many mine failures can be prevented by a close examination of the tonnage grade curve and an understanding of how margins, net cash flows and resulting business risk change with cut-off grades and rates of production. A few relatively simple analyses early in the evaluation of a project can demonstrate the tradeoffs between the main decision parameters, leading to right-sizing of the operation. Once major commitments to major capital items have been made, and reserves have been publicly reported, optimisation of the operation becomes much more difficult than if it had been done earlier. Such investigations can also identify the upside potential and downside risks associated with factors outside the companyÆs control. Many strategies that may enhance value in the good times significantly increase the downside risk in the bad times. What is often called risk analysis typically looks at superficial issues, and does not evaluate the major factors leading to the potential for financial disaster. This paper illustrates some of these major risks, and demonstrates how they may be fully evaluated so that corporate decision makers can make fully informed decisions that take account of the real risks.

Jan 1, 2003

The selection of the ore haulage system is one of the most crucial decisions made in the development of an underground mining project. The haulage system is, once selected, one of the components of a mine that defines its ability to respond to changes in mining inventory and the market conditions for its products. Over the last decade, in Australia at least, this selection process has largely centred on the debate over the merits of shaft and decline truck haulage. Little attention, if any, was given to the application of inclined conveyor haulage as a real alternative to the shaft and truck haulage. This is despite well established precedents for its application in the underground coal industry and some limited applications in underground metalliferous mines. This paper seeks to explore the case for the application of inclined conveyors as a legitimate ore haulage system for underground mines. The case for conveyor haulage is illustrated by an overview of the application of conveyors at some existing operations, and discussion of what conveyors have to offer as a mine haulage system and the issues that are associated with them. Material drawn from the feasibility studies for NewcrestÆs Ridgeway mine and Telfer Deeps Project is presented as case studies that considered selection of inclined conveyor haulage. The purpose of these case studies is to highlight the value of impartially approaching tasks of this type with a robust plan. This plan should be able to respond to issues identified as the task progresses towards the objective of finding the right solution for an ore haulage system.

Jan 1, 2005

For the last decade Australia has been the leading exporter of both steam and coking coal. In the ten-year period 1989 - 1998 steam coal exports increased by 93 per cent and metallurgical coal exports increased by 50 per cent. However, profitability of the steam coal sector has been disappointing. The coking coal sector, especially the hard coking coal segment, has fared better but its profitability was more because of its ability to maintain relatively high prices rather than its inherent productivity. Until quite recently the Australian coking coal sector was widely expected to be able to maintain this comfortable state without undue effort for the three major æpartnersÆ; the companies, the State Government and the unions. But coking coal could now be heading down the path followed by steam coal that ends with long-term over-supply and, despite steady improvements in productivity, poor profitability. Steam coal entered the ænewÆ era of long-term over-supply some years ago. Over-supply was due to the rapid increase in production in Indonesia, often from new mines and Australia. AustraliaÆs production rise was underlain by the apparent belief that the best way to lower costs was to increase production. In the first couple of years costs didnÆt fall much but the additional tonnage was sold at lower and lower prices into the spot market. By mid-1998 the difference between the contract price set with Japanese utilities and spot sales was often in excess of $US12 per tonne. Japanese contract prices and tonnages have since fallen significantly. Steam coal has moved from being a product to being a commodity. Any profits are due more to the low Australian dollar rather than inherent mine productivity. Seaborne coking coal trade has been dominated by Australia, Canada and the USA, with the USA becoming less competitive. Unfortunately, when the Queensland capacity expansion was well down the pipeline, the Asian financial crisis occurred and the Japanese economy entered what appears to be a long-term recession. Contract prices fell 18 per cent, tonnages decreased and some mines have been reclassified as supplying lower priced coking coal. The paper analyses past and expected future trends in labour and mine productivity, rail freight and FOB export port cash and total costs of the Australian steam coal and coking coal sectors and discusses the market outlook for Australia. The future economic viability of the industry is analysed and discussed in the light of the rapidly changing global environment.

Jan 1, 2000

By C Kocsis, G Baiden, Y Bissiri

CANMET-MMSL and Penguin Automation Systems Inc have been exploring how process simulation and ventilation modelling software, when combined, can be used to optimise hard-rock/metal mine ventilation systems. In combination, it is anticipated that this methodology will facilitate the exploration of mine design options that affect ventilation requirements and ultimately cost. Such integrated mine design could limit, and possibly reverse, the drivers that under current practices would generally dictate increased ventilation, power consumption, cost and greenhouse gas emissions. It is believed that the mining industry needs such process models to develop better business cases. For example, the implementation of optimised ventilation systems will undoubtedly require significant investment and mines are often reluctant to try such conservational measures unless they can be proven cost-effective. In general, Canadian hard-rock mines know their ventilation systems are providing too much air and consuming power unnecessarily. This is because their systems are designed to provide maximum production flexibility, based upon peak demand, which may be at some future time, and operated continuously at that level regardless of actual need. Simplistic analyses have shown electrical energy savings can range from 30 per cent through to 90 per cent (Hardcastle, Gangal and Leung, 1998). These savings depend upon such factors as the intensity and continuity of the production schedule as opposed to non-productive time. Where these savings occur is also important, if limited to either the primary or auxiliary ventilation systems, they could be negligible in a mineÆs total energy consumption. The problem these mines face is determining what level of ventilation is required in real-time and then the relative benefits. Such parameters as varying electricity costs, heating fuel options, different design criteria and their complex inter-relationship can effect the selection of an optimal system, depending on whether energy, environment or cost is the prime driver. The use of process simulators in underground mining is in its infancy; to date they have been used to show the benefits over the life of a mine under different mining methods, such as a comparison of tele-remote mining from surface against conventional manned operation (Baiden, 2000). This ongoing development advances the use of such simulators into a new and potentially important area, namely modelling the life-cycle ventilation requirements of a mine. This paper shows how such a life-cycle analysis as opposed to peak demand can provide the basis for optimising the design of ventilation systems and their control.

Jan 1, 2005

By R Crookes

Mine to mill optimisation is not a recently developed concept. It is one which is finally gaining greater acceptance in the Australian mining industry, possibly as a consequence of the downturn in markets and certainly made possible by the development of tools and techniques to measure and predict performance of mining equipment and milling plants. Fragment size after blasting has a major bearing on the performance of all aspects of mining and a major influence on the economics of the mine and mill. The process to optimise fragmentation consists of identifying the key factors, measuring their sensitivity through a modelling and trialing program and conducting economic evaluations on the changes on both the mine and mill. Management of the Ernest Henry copper-gold mine in Northern Queensland, Australia, has espoused the mine-to-mill concept and is actively pursuing excellence in blasting to drive down the total cost of mining. Ernest Henry has extremely hard, wet and heavily jointed geological conditions, and had high powder factors and a large percentage of oversize material reporting to the crusher or ROM stockpile. A blasting improvement program was undertaken between Ernest Henry Mining, Thiess Contractors and Orica Explosives to optimise the ore size distribution, particularly the oversize component, as a step to reducing production costs. Measures of success included bringing the rock breaker back from double shifts to part-time operation and increasing direct dumping into the crusher from 70 per cent to 92 per cent. Tools and technologies to predict and measure the performance of individual blasts are needed before it is possible to optimise fragmentation or the downstream processes. These include such specialised Orica Explosives tools as SABREX, POWERSIEVE, and POWERLINE and commercially available drill monitors. As important are the more common still and video camera, borehole loggers, measuring tapes, surveying equipment such as face profilers, and a high speed camera if possible. There are many tools which can be applied however it is rarely necessary or possible to use all of them due to time constraints and a point of diminishing returns. The critical point is knowing what the true parameters of the blast were compared to design -only then can the predictive tools be effectively utilised. Stage one of the program has seen gradual improvement as the understanding grew and practices have been implemented resulting in reduced bridging in the crusher, geological mapping with respective blast designs and the oversize component under control. This paper is about a process approach which links tools and technology to understand the fragmentation drivers and then to optimising the size distribution. The continuous improvement program continues . . .

Jan 1, 1999

By J Col, D La Rosa, W Valery, A Jankovic

Metso Minerals Process Technology Asia-Pacific and South America (MMPT) has been working with operations around the world to increase their efficiency through æMine-to-MillÆ or Process Integration and Optimisation (PIO) projects. These projects have delivered significant improvements in mine efficiency, mill throughput and reduced operating costs at mines around the world. The MMPT methodology involves rock characterisation, site auditing, data collection, modelling/simulation and implementation of integrated operating and control strategies on site. This results in significant benefits to the operations û for example, 5 to 20 per cent increases in concentrator throughput have been measured. MMPTÆs rock characterisation utilises simple and inexpensive measurements that can be performed by trained site personnel. The advantage of these measurements is that a large amount of data can be collected in a very short timeframe, as the samples do not require shipping to an outside laboratory. Typically, a PIO project starts with a site visit to perform blasting and process audits, collect high quality data including measurements of run-of-mine fragmentation and survey data around all crushing and grinding circuits. These measurements are combined with rock characterisation and the definition of strength and structure domains to model the complete production chain. Site-specific models of the blast fragmentation, crushing, grinding and flotation processes can then be developed. This proven methodology has applications ranging from greenfield projects to long-standing operations with AG/SAG or conventional grinding circuits. Process improvements can be higher mining productivity, higher mill throughput, decreased overall operating costs and higher flotation or leach recovery. This paper discusses a recent application of PIO conducted at a large open pit operation in South America and emphasises the potential that every operation has to ædo more with what they haveÆ.

Jan 1, 2007

By J Player

Big Bell Mine started experiencing relatively large mining related seismic events, and accompanying rockbursts, from February 1999. Twelve rockbursts damaged access development from February 1999 to June 2000, with severe damage extending for up to 100 m along footwall drives. Five seismic events associated with the rockbursts were recorded by the AGSO, measuring 1.9, 2.2, 1.7, 2.4 and 2.2 on the Richter scale. These events affected 485 and 460 footwall drives in August and November 1999 and 535 footwall drive in June 2000 (drive level nomenclature is equivalent to the depth below surface and RL). After the third event (July 1999) it was apparent that the seismicity was not a once-off phenomenon. This (sudden) onset of seismicity required management to implement a series of precautionary measures:to ensure the safety of the workforce, to maintain continuity of production, and to reduce rockburst damage rehabilitation. The measures included extended re-entry periods and exclusion zones in high-risk areas, improved rockburst resistant support systems in areas prone to damaging seismic activity and improved support systems in areas prone to shakedown damage. A full-scale minewide ISS seismic system was ordered in October 1999 and commissioned in February 2000. A portable eight-channel CSIR-Miningtek system was installed at short notice as an interim measure in August 1999. This CSIR system covered the northern producing stopes, where the majority of the rockbursts had occurred. The objective of the seismic monitoring was to monitor relative activity and to determine trends with regards to time and location. MAP3D numerical modelling was used to investigate the relationship between seismicity and various combinations of stress components to assess the relative seismic risk in both current and proposed working areas. This information is used to determine where and at what stage in the mining cycle the rockburst resistant support is required. Analysis of the seismicity has determined two distinct modes of seismicity û small-scale localised, high frequency events in high stress areas and larger events related to shear along previously intact foliation surfaces. This paper includes a summary of the seismic history, seismic data analysis, support system design, mine design adjustments and management action to minimise the effects of seismic activity at Big Bell Mine.

Jan 1, 2000

By Yu AB, Azahari HL

Indonesia has the largest coal reserves in the south-east Asian region. According to estimates from the World Energy Confer- ence, it has reserves of 18 billion mt lignite, 4.4 billion mt sub-bituminous coal and 774 million mt bituminous coal (Wyllie,1988). In recent years, substitution of coal for oil in power plants has been the goal of the Indonesian government since proven deposits of coal are about five times as large as national hydrocarbon reserves and most of Indonesia's power stations are still oil fired. Recently a coal fired power plant has been built in Java Barat, which will have a full capacity of about 3000 MW. It is intended to supply coal for this power plant from Bukit Asam mining area (South Sumatra). Coals from Bukit Asam - which are of the lignite or brown coal type - usually contain considerable moisture . It should be noted that reference to moisture in coal pertains to the total moisture content. This is comprised of what is commonly termed as equilibrium moisture and surface moisture. Surface moisture typically affects combustion process as well as pulveriser performance since it possibly influences the relative ease with which coal may be ground. In practice, the surface moisture produces agglomeration of the fines in the pulverising zone and reduces pulveriser drying capacity because of the inability to remove the fines as quickly as they are produced. This agglomeration has also the same effect as coarse coal during the combustion process because the surface area available for the chemical reaction is reduced, hence the combustion efficiency is also reduced. The influence of the moisture of some coals on their grindability (Hardgrove Grindability Index) has been previously correlated by several authors; some of them will be mentioned later. Those correlations, however, could not be immediately applied to any coal since it is still believed that there are other factors which influence the grindability of the coal, such as type and rank of the coal. The relationship between coal moisture content and its grindability has been investigated by Ellmann and Belter (1955). It was found that, for North Dakota lignites, the grindability varied as the moisture content changed. In Britain, Fitton, Hughes and Hurley (1957) stated that, for Bilsthorpe coal, over a wide range of free moisture content (from air-dried to about 30 per cent moisture), the Hardgrove Grindability Index (HGI) remains virtually unchanged. In addition to that, it was suggested that it would be slightly advantageous to dry the coal below its air-dried moisture content (at temperature ¦ 100¦C) to increase the ease with which coal could be ground, especially for low-volatile coal and high-volatile non-caking coal. Furthermore, it was also concluded that a broad relationship appeared between coal rank and Grindability.

Jan 1, 1993

During the later part of 2007 I was lucky enough to visit the Atlas Copco facilities in Sweden, and to see first hand what a large and diverse company Atlas Copco is. The reason this paper calls the Atlas Copco experience a bonanza is that it means a source of great and sudden wealth or luck; a spectacular windfall or a rich mass of ore, as found in mining. I think this aptly describes the scholarship as it has greatly increased my wealth of knowledge of the mining industry. This paper intends to encourage all those eligible to apply for this fantastic scholarship opportunity, and seeks to thank all those involved who made this scholarship the amazing experience that it was. Atlas Copco produces most of its Swedish products in the town of +rebro, and it was here that I spent most of my time, visiting the Underground Rock Excavation group, the Surface Mining Equipment group and Rocktec. I also travelled around Sweden and was able to visit one of OricaÆs manufacturing plants, the Secoroc groupÆs manufacturing plant, the Geotechnical Drilling and Exploration group as well as being fortunate enough to visit the LKAB mine in the Arctic Circle in Sweden. The trip was not all information on Atlas Copco products and services however; I was able to go to the Ice Hotel in JukkasjSrvi and drink Absolut Vodka out of ice glasses, go on a reindeer safari (as well as eat them!), sample the fine meat from a moose, drink local schnapps, attend the Atlas Copco Christmas party, wander around the wonderful city of Stockholm and generally immerse myself in the great Swedish culture.

Jan 1, 2008

The AJ Parker Cooperative Research Centre for Hydrometallurgy is the focus of a world-class effort in providing technical solutions to the minerals industry. The 85 FTE staff are drawn from the CentreÆs five joint venture research partners comprising universities (Curtin, Murdoch and Qld) and government research agencies (CSIRO and WA Dept of Industry and Resources). There are also 12 industry partners, representing most of the leading mining companies in the world. Around 45 postgraduate students, mainly PhDs, make a significant contribution to the research effort. Total annual expenditure on R&D is around $17 million.Hydrometallurgy activities encompass both fundamental and applied research across the alumina, gold and base metal sectors. The Centre is now growing its client base into overseas markets, particularly North America, South Africa and Europe. Quality, strategic R&D by the Parker Centre is seen by the industry as an attractive investment. A recent survey of the industry revealed an estimated ten-fold return based on direct costs of research to the client. In addition, the Parker Centre has a strong commitment to education of postgraduate students wishing to enter the mining industry as well as providing specialist courses for those technical professionals already employed in the industry. The wide range of employment opportunities in the mining industry is reflected in the diversity of the disciplines amongst the CentreÆs research team, eg extractive metallurgy, chemistry, biotechnology, physics, engineering, molecular modelling, microscopy, geology and computational fluid dynamics. How does an atomic force microscope and molecular modelling improve our ability to control gypsum scaling or understand crystallisation of alumina in a Bayer plant? Can a biologist contribute to the problem of the slow leaching of copper from chalcopyrite? Why are computational fluid dynamics and lasers the basis of understanding how to make thickeners work more efficiently. Can you combine a PhD or Honours degree with industry experience? What is crud and why is nickel stressed? These are typical examples of the CentreÆs research activities and demonstrate the contributions of its multi-disciplinary teams which keep the Australian mining industry at the cutting edge of advanced global technology.

Jan 1, 2003

By G Solly, S Parsons, P Leevers, S Ni

Hematite ore has been mined in the Southern Middleback Ranges as blast furnace feed for the steelworks at Whyalla, by what was then BHP, since 1991. With the floating of BHP Integrated Steel as OneSteel in 2001 and the subsequent loss of key mining personnel, breakdowns in grade control methods and procedures occurred. These were compounded by changes in orebody characteristics and grade distribution leading to poor reserve recovery and poor grade control, both which resulted in loss of control of ore specification and severe deviation from the mining schedule. As a result, a total review of grade control, mining method and scheduling procedures was undertaken as well as a review of contractor quality assurance. It was found that sampling methods were poor and unrepresentative, grade control blocking processes were outdated and did not reflect the geology of the deposit, the ore mining method was outdated and did not respect the geometry of the orebody, reconciliation methods were being completed globally and were not reflective of individual areas of the deposit, and that deviations from the mine plan were occurring due to access to high-grade areas outside the schedule in order to bring stockpiles back on grade. Based on these findings, updated sample splitter systems were fitted to drill hole rigs, double bench sampling was implemented (2 + 4 m samples as opposed to 1 + 8 m sample) and a three-dimensional cellular grade control system introduced to better reflect the geology and orientation of the deposit. At the same time ore mining was changed from front end loaders mining on 8 m benches to excavator mining on three lifts on 8 m benches; this aided selectivity and respected the geometry of the orebodies aiding cleaner recovery. Reconciliation is now completed on a blast-by-blast basis, which allows for quick and easy identification of poorly performing areas of the resource model that can then be incorporated back into resource model updates. Regular daily and weekly meetings are also held with emphasis on the mining schedule to ensure no deviation from the schedule in the long term. These improvements have resulted in a lift in reserve recovery both globally and locally associated at the same time with improvement in grade.

Jan 1, 2005

I feel a little like the Parson delivering his Sunday Sermon, chastizing his parishioners for not coming to Church. Those who need to hear me are absent.Nevertheless, I hope that if you agree with what I am about to say you will go forth and spread the word.We often hear of the impact mining has on the community. I prefer tonight to deal with the impact some community attitudes have on mining, and I want to point out that the results of these attitudes rebound to the detriment of our society. I want to deal particularly with regulation, taxation, and proflts.In a civilization whose standard of living is essentially dependent on an adequate and reliable supply of cheap metals and fuels, it should be evident to Blind Freddie that mining must be encouraged.I must express concern at the constraints inflicted on the mining industry by our community. We tend to blame Government for our difficulties, but we must recognize that Government acts merely as agent for the community. It is fair to say that in a free society, if Government actions do not reflect the demands of the electorate, then it doesn't stay the Government. It is important though for Government, in framing its policies, to ensure that it is not unduly influenced by the loud voices of minority groups.The people of our nation have every right to demand that our industry meet certain criteria to be allowed to operate. We all wish to live in a healthy and congenial environment, and to have our individual comforts protected. It is essential, however, that the community realizes that its demands on the mining industry are affecting Australia's prosperity.Each new regulation and each new tax or impost has its effect on investment, employment, and national revenue. Restraints result in an increase in costs which in turn raises the minimum value of a mineral deposit which is economically mineable. It results in minerals, which could be mined under more favourable circumstances, remaining in the ground, perhaps lost for ever.

Jan 1, 1978

In 1989 Henry Fairlie wrote a cover story for The New York Republic, 'Fear of Living'. He noted, `The first Apollo space craft caught fire during a test on the launch pad. Three astronauts were killed, the nation was shocked and horrified, all the more because the screams and scrambles of the astronauts could be clearly heard'. After a brief delay in manned flights, the Apollo program resumed with strong public support; within 18 months, Apollo 11 landed on the moon. Fairlie contrasts the Apollo tragedy to the 1986 Challenger disaster. `The prevailing mood in America so panicked NASA that it took almost three years to send up another shuttle', he observed. `In 19 years between these tragedies, the idea that our individual lives and the nation's life can and should be risk-free has grown to be an obsession threatening to create an unbuoyant and uninventive society.' Taking risks is a normal part of our daily routine. The act of living involves minute-by-minute decision-making focused on survival through the practical management of risks. The act of breathing exposes each individual to the risk of infection while the act of crossing the road could almost be considered suicidal. We deal with these constant threats by observing simple rules of hygiene, safety or what may be labelled as common sense. The rules of community, designed to minimise risk in society, can at times lose focus and result in the imposition of schemes that have a far greater cost than the issues from which they protect. Effective management of risk, whether in the community or a business is about awareness and balance and the elimination of unacceptable risk. Risk cannot be eliminated from our lives or our working environment. However it can be managed if it is properly understood, monitored and controlled. The purpose of my presentation today is not to provide a comprehensive technical risk inventory but to capture the essence of risk and the application of management strategies designed to deal with it in a positive fashion. The basis of our differential financial reward system is risk. The key to successful management is to deal with the downside risks in such a fashion that the benefits of enterprise are not eliminated. The key question any investor must consider is `can the major risks assQciated with a venture be managed or eliminated while retaining a greater proportion of upside potential'. The answer to this question is the ultimate value an investor would assign to any project. In reviewing the relevance of risk to our industry the range of papers to be presented today provide examples of how management deals with specific components of risk. In each case the value of the business has been enhanced by the practical application of balanced risk management. The ultimate success of the industry depends very much on this concept as it also provides a public showcase upon which we are judged. Therefore, from all perspectives the effective management of risk is a cornerstone from which to build a stable and progressive mining industry.

Jan 1, 1994

By Vynne J. F

Drill monitors for rotary blasthole drills have been available to the mining industry since the 1970s. The early monitors were pen strip chart recorders that were developed for the oil drilling industry and adapted to mining. They recorded drilling parameters such as depth, pull-down pressure, torque, RPM, and hailing air pressure. While these recorders could generate a large volume of paper, the amount of useful data was minimal. The data was not summarised and required an engineer to interpret the chart traces. Being a mechanical recorder, the devices were also susceptible to frequent failures. Modem electronics, and the development of the personal computer and its associated software have radically changed the type of instrumentation that is now available for blasthole drills. Perhaps more important is what can be done with the data. The PC allows the logged data to be analysed, summarised, and a variety of reports to be generated. The reports can be customised to meet the specific requirements of the mine and reduce the amount of time that is required to interpret the data. There is also an increased awareness in the mining industry of the importance of production drills. Blasthole drills have typically been the piece of production equipment that received the least amount of attention in a surface mine. Management focussed on the trucks and shovels or draglines. This situation is changing, and therefore the benefits that can be derived from monitoring drill performance are being recognised. Potential economic benefits of installing drill monitors have been documented in previous papers (Peck and Vynne, 1992). Mines are finding that pay-back periods of less than twelve months and rates of return in excess of 30 per cent are not uncommon. These benefits include the following: 1. Reduced overdrilling; 2. Increased rate of penetration; 3. Helping to locate coal seams; 4. Identification of weak and strong zones; 5. Reduce geophysical logging; 6. Optimising blasts; 7. Improved fragmentation and diggability; 8. Decreased coal dilution; 9. Increased bit life; 10. Reduced maintenance costs; 1 I . Improved accuracy of data and reports.

Jan 1, 1995

By P Barrette

The manual gravimetric drying moisture determination methods currently employed by most mineral processing plants fail to provide timely and accurate information required for automatic control. The costs associated with transporting and handling concentrates represent a major portion of the overall treatment price. When considering the cash flow of a mining operation that is governed by both the smelter contract, with moisture penalties and the quantity and quality of the concentrates shipped, any tool that provides real-time feedback on the process is vital (Edwards, RP 1994). The introduction of an on-line moisture sensor would become a welcome addition to the process control field instrumentation package now applied. A novel on-line determination system for ore concentrate moisture content would replace the tedious manual procedure. Since the introduction of microelectronic-based control systems, operators have strived to reduce the treatment costs to the minimum. Therefore a representative and timely determination of on-line moisture content becomes vital for control set points and timely feedback. Reliable sensors have long been on the æwish listÆ of mineral processors since the problem has always been that you can only control what you can measure, (Konigsmann, 1990). Today, the task of moisture determination is still done by the classical technique of loss in weight utilising uncontrolled procedures. These same methods were introduced in the earliest base metal concentrators. Generally, it is acceptable to have ore concentrate moisture content vary within a range of seven to nine percent, but controlling the moisture content below eight percent is a difficult task with a manually controlled system. Many times, delays in manually achieving reliable feedback of the moisture content results in the moisture varying from five to twelve percent before corrective actions can be made. This paper first reviews the traditional and widely available methods for determining moisture content in granular materials by applying physical principals and properties to measure moisture content. All methods are in some form affected when employed on mineral ore concentrates. This paper introduces and describes a unique and promising novel on-line moisture sensor employed for mineral processing de-watering applications, which not only automates the tedious tasks but also results in reliable moisture feedback that can be used in the optimisation of the de-watering process equipment such as pressure or vacuum filters and fuel-fired driers. Finally, two measurement applications will be presented to indicate the usefulness and to summarise the measurement requirements for the proposed method of employing drag force and mechanical properties of the material itself to determine the moisture content. The commercial model of the equipment is described with the features and benefits to the users summarised.

Jan 1, 2003

While specific definitions of the main categories of mineral reserves and mineral resources are becoming well established through the efforts of the Australasian Joint Ore Reserves Committee (JORC) and the Combined Reserves International Reporting Standards Committee (CRIRSCO), there has been perhaps less attention paid to the standardisation of language used in the definition and reporting of Mineral Exploration Results and a clear understanding of the transition to Inferred Mineral Resources. This is an area of significant importance to small and medium sized enterprises in the mineral exploration sector as it represents in many cases the only tangible information by which the reader or potential investor can evaluate the future potential of such enterprises. By its very nature information in the Mineral Exploration Results category is incomplete, and frequently complex, and it is open to a broad range of interpretation by readers of various competency levels and disciplines. Many will have a short-term speculative view rather than a long-term perspective, with others out deliberately to misrepresent the information, and as such it can have an enormous impact on investment decisions if the risks associated with this information being reported are not fully understood. Authors of reports on Mineral Exploration Results, who may be Competent Persons or company directors, have to put themselves in the shoes of the reader of the report, second-guessing if you like what the reader will understand by a report, which in many cases will be of a highly technical nature. This raises reporting dilemmas and questions that require to be understood and addressed. Looking at reports on Mineral Exploration Results from the other side, readers have a degree of responsibility as well, particularly if they engage in an advisory or communications role. The tendency of commentators, journalists, analysts, and bulletin board posters to over-exaggerate the significance of a particular exploration result is all too familiar. Questions arise here as well about whether there should be more regulatory supervision and control exercised over those who use this information, all of whom greatly influence investment decisions, and many of whom have no idea there is a Reporting Code, far less an understanding of it. Examples are given and questions raised to illustrate the dilemmas surrounding the reporting of Mineral Exploration Results. In order to retain credibility with markets it is incumbent on companies to be transparent, not to be selective and to report all material information. On the other hand, information has to be taken and read in its proper context in order to avoid fuelling dramatic and unjustified company share price escalation. Timing of course is another factor that can affect the market price of shares, which may be beyond the control of those making the reports. Emotive and imprecise language, however, when reporting Mineral Exploration Results, coupled by speculation, can trigger damaging short runs on shares and destroy credibility where formerly there was long-term promise. The paper will review how Mineral Exploration Results are dealt with in various jurisdictions, and conclude that there has to be a balance between prescription and the tempering of undue optimism on the one hand, and the entrepreneurial spirit, which the industry needs, on the other.

Jan 1, 2002

Thank you and good morning. I am delighted to be here and to see so many of my colleagues and competitors. The general topic of this week's conference - World's Best Practice in Mining and Processing - suggests a focus on mining and processing. I am somewhat of a `jack of all trades and a master of none'. But I'm not even a jack when it comes to mining and processing technology and practices, and so I will leave those topics to speakers better 'qualified than I. Instead, what I would like to do is give you my thoughts on the best management practices of mining. You see, the times are changing for the mining business. There is great uncertainty in our industry. Anyone who received their education in an English-speaking school probably remembers the famous poem `Invictus' by William Ernest Henley. The two most famous lines from that poem are, if you remember, `I am the master of my fate; I am the captain of my soul'. The fact of the matter is that the metals industry, including the copper industry, is not the master of its fate. To a great extent we're at the mercy of forces over which we have little control, such as the world economy or political situations in individual countries. The copper industry is like a surfer at Manly - we can't influence where the wave is going; all we can do is stay in front of the curl and on our board. Historically, discovering, developing and processing ore reserves were the primary facets of our capital intensive business. To stay competitive today, we must invest equally in intellectual capital - our employees - in order to succeed in the face of economic, regulatory and political challenges and global competition (Schonberger, 1986). Everyone seems to have a different theory about being competitive. A lot of people use sports analogies when talking about competition. Others, like American businessman and former US presidential wanna-be Ross Perot, take a more interesting approach. In Mr Perot's hypothetical corporation, competition is a lot like having a snake in a factory. If someone sees a snake, the first thing they do is create a committee on snakes. Then, the committee on snakes meets and discusses the problem for a couple of years. The most likely course of action is nothing. Everyone figures that the snake hasn't bitten anyone yet, so they just let him crawl around the factory floor. Perhaps a vice president of serpentine affairs is appointed to continue watching the snake - making sure it doesn't grow. Ross Perot sees it a little differently. In his corporate world, business needs to build an environment where the first guy who sees the snake kills it. Of course in our industry, we better make sure the snake isn't on an Endangered Species List before we go after it! I am not going to talk about competition and competitive forces in terms of sports or snakes, but I would like to share some thoughts with you about how the mining industry can better utilise competitive thinking to get ahead and stay there. You may be wondering how an executive from a 160-year-old company could know much about competitive spirit, but the founding ancestors of Phelps Dodge were wizards at identifying

Jan 1, 1995

By A Coulson, J Hussey

Noranda Inc is a Canadian mining and metallurgical company with its activities managed through businesses in copper and recycling, zinc, aluminum, magnesium and various metals through its interest in Falconbridge Ltd. Noranda operates three base metal mines, three copper smelters, one copper refinery, one zinc refinery, one lead smelter and refinery, three copper recycling and sampling facilities seven aluminum producing facilities and one magnesium production facility in the construction stage. The mining side of Noranda has a strong history of open stope, cut and fill and shrinkage mining. The 1999 Noranda Annual Report lists a 206 million tonne resource located at Porphyry Mountain in GaspT, QuTbec. Mont Porphyre is a large tonnage, low-grade porphyry style Cu-Mo deposit that was discovered in 1994. It is located at a depth between 1.0 and 1.7 km below surface and characterised by a very competent rock mass. The Mont Porphyre resource is located adjacent to the town of Murdochville, close to NorandaÆs Mines GaspT operations. Mines GaspT closed its open pit and underground operations in 1999 after approximately 45 years of mining, but still operates a copper smelter near Murdochville. The low-grade and great depth of the Mont Porphyre resource suggested that mine design could not be based on the conventional Noranda open stoping mining practice. This paper will review NorandaÆs approach to evaluating the Mont Porphyre deposit. The approach included two definition diamond drilling campaigns, a review of current caving practice, an in-house scope study, a geotechnical logging program for diamond drill core and participation in an international study on cave mining. One interesting component of NorandaÆs approach was the scope study that involved a team of multi-disciplinary personnel drawn together for a short period of time. The objective of the scope study was to determine what conditions would be necessary to mine the deposit and to assess the merits of continuing with further exploration work. A review of current worldwide underground bulk mining practices, and in particular an evaluation of the applicability of caving mining methods, were key components of the scope study. The scope study team concluded that derivatives of caving could be applied to the mining of Mont Porphyre, but additional diamond drilling was recommended to further define the deposit and improve the level of geotechnical information. Following the recommendations of the scope study team, a diamond drilling campaign was completed during the summer and fall of 1997. The 1997 drilling campaign had two secondary objectives, in addition to the primary objective of defining the limits of the orebody. The first objective was to improve the level of geotechnical information available for the characterisation of primary block cave fragmentation. The second objective was to improve the delineation of a lower grade intrusive core. A geomechanical investigation was conducted and included particular emphasis on geotechnical data collection and analysis. A review of the actual data collection process, including several trials of different core orientation techniques, will be included in the discussion.

Jan 1, 2000