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By T Suwa, S Ishida, J Xue, S Fuchida, H Shimada, Y Aoki, C Tokoro

Pyrite depression with prolonged pre-conditioning treatment in high salinity water has attracted much of researchers’ interest in recent years considering the increased utilisation of multiple stage flotation, closed water circuits, clay minerals, and sea water in flotation plants. In this study, the role of calcium (Ca)/magnesium (Mg) precipitates in stabilising the dissociative ferric hydroxy-xanthate (FHX), and its effect on modifying the balance of hydrophobic/hydrophilic species on the pyrite surface were primarily investigated. The total amount of extractable Fe-bearing species on pyrite concentrates and tailings after floatability test was quantitively determined using ethylenediaminetetraacetic acid (EDTA) extraction tests combined with inductively coupled plasma optical emission spectroscopy (ICP-OES). A more evident accumulation of extracted-Fe in pyrite concentrates rather than it in pyrite tailings was observed at both pH 9 and 10.5 when pyrite was pre-conditioned in Ca/Mg-bearing solutions for 360 min. Fourier transform infrared (FTIR) spectroscopy showed the main xanthate derivatives changed from di-xanthogen (1155 cm-1 ) to FHX (1167 cm-1 ) on the oxidised pyrite samples that were preconditioned in Ca/Mg-bearing solutions. Scanning electron microscopy-energy dispersive spectrometry (SEM-EDS) suggested the preferential accumulation of FHX upon secondary Ca/Mg-bearing precipitates as reflected by the higher Fe/S ratio together with the decrease of O element herein after xanthate conditioning. Although the hydrophilic secondary Ca/Mg/Fe-bearing minerals on the pyrite surface generally deteriorate pyrite’s floatability, the upper section of these secondary hydrophilic aggregates is partially covered by FHX alongside with further multilayer-adsorbed di-xanthogen. The precipitated Ca/Mg-bearing precipitates promotes the immobilisation of dissociated FHX derived from the reaction among iron oxyhydroxides and xanthate anions upon the localised secondary Ca/Mg/Fe-bearing minerals via acid–base complexation. Therefore, this phenomenon alleviates the hydrophilic modification of secondary Ca/Mg/Fe-bearing minerals to pyrite considering the immobilised FHX upon localised precipitates shows a slight hydrophobicity, and meanwhile, the upper FHX benefits the multilayer adsorption of di-xanthogen via the interaction among their inner hydrophobic alkyl chains.

Aug 24, 2022

By G D. Price

Scheelite mineralisation east of the main divide in' the Southern Alps of New Zealand was originally identified by Royden Thompson who is now a geologist with the NZ Geological Survey. This mineralisation was brought to the attention of CRA in 1978. Reconnaissance surveys were carried out in 1979 to delineate the extent of the mineralisation. This was undertaken using ultraviolet light examination of the sediments within the major drainages in the Southern Alps. This defined tentative zones of prospective mineralisation. As a result of this, preliminary reconnaissance, exploration licences were applied for -those areas in which indications of scheelite mineralisation were strongest. A total of 1737 km2 of ground was applied for within four exploration licences. These covered the main Southern Alps mountain chain between the Haast/Wanaka highway and the Mt Cook National Park.

Jan 1, 1983

The aspect ratio (mill diameter/mill length) of autogenous and semi autogenous mills varies widely and can be as high as three or as low as 0.5. The literature on the subject of what effect aspect ratio has on grinding mill performance or energy efficiency is almost non-existent. However, at the design stage of many grinding circuits the subject is often vigorously debated amongst metallurgists. In this paper the performance characteristics of mills with different aspect ratios are examined to determine whether process performance characteristics are a function of aspect ratio and whether high aspect ratio mills are any more or less energy efficient than low aspect ratio units. Data from both pilot and full-scale mills are used for this purpose in open and closed circuit configurations.

Jan 1, 2007

By K J. McDonald

All commercially available zircon sands contain radioactivity sourcing from the decay of trace amounts of contained uranium (U) and thorium (Th). The fine particle size zircons of the Horsham area in the Murray Basin region of Victoria, Australia, contain significantly more (about twice) Th+U than those commercial zircon sands. The marketability of these fine-grained zircon sands is likely to rely on the removal of these radioactive impurities. CSIRO Minerals have been working for some time to develop processes for the removal of the radioactive impurities from zircon. It is generally agreed that it is quite impossible to leach U and Th from zircon, however, the Heat and Leach (HL) process, described in detail in Aral and McDonald (1999), reduces the radionuclide levels significantly. The identified (HL) process aims to leach uranium and thorium selectively from a decomposed zircon. The novelty of the process is that a large part of the leached product can be reconstituted to a low radiation zircon by a subsequent heat treatment. The HL process uses a flux mixture of sodium carbonate and calcium borate to decompose the zircon at relatively low temperatures (900 to 1150¦C) and a weak acid (0.5M HNO3; 80¦C/0.5 h; pulp density ten per cent) to leach the radionuclides selectively. The process leaves the major components (ZrO2 and SiO2) behind with little loss. The HL process for example lowers the U+Th content of a Murray Basin zircon from 1000 ppm to 400 ppm U+Th. Among the radionuclides more U progeny is removed than the Th series radionuclides. This is very significant as the radioactivity of U series is 2.5 times more that from the Th series. Therefore the reduction in the radioactivity level of zircon is more than the reduction in Th+U indicated by XRF analysis. A schematic flow sheet of the HL process is shown in Figure 1. Although the HL process successfully lowers the radionuclide levels in zircon sands, the final product contains significant amounts of sodium (up to 14 per cent Na2O) and small amounts of CaO. By comparison, the sodium content of the commercial zircon sands is in general 2O. Zircon is used mainly as an opacifier in tile glazing where the addition of ten to 15 per cent zircon to a translucent base glaze gives the sanitary white colour to the tile surface. Opacification is the result of the refractoriness of zircon particles at the glaze firing temperatures that is generally around 1050¦C.

Jan 1, 2001

The purpose of this paper is to look at the costs of tailings disposal, and in particular the comparative costs of different disposal methods in different situations. Costs are often the hidden design parameter. We know that they are important but sometimes feel that it is not very respectable to talk about them in public. It is better from a public relations point of view for it to appear that the decision-making process is driven by environmental factors or best practice rather than looking for the cheapest option. But this presumes that the two are mutually exclusive and this need not be so. These issues are discussed later in the paper. It is also commonplace for the scale of the mining operation to change with time, typically involving increased throughput rates and total tonnage. New ideas in tailings disposal make their appearance. The regulatory attitude can change. Having made a decision about the disposal method at the time of original feasibility study and design it is easy to suppose that the mine is æstuck with itÆ. But that also need not necessarily be so. Careful costing of options may reveal that a switch in method could be cheaper in the long run. The designer will often tend to think in terms of initial earthworks and site development costs. Aspects of power consumption, labour, and periodic campaigns to move tailings pipelines and carry out embankment raises are either overlooked or not given the same emphasis. This can distort the evaluation process. It is productive to think in terms of dollars or cents per tonne as a basis of comparison, not just the total sums. Tailings disposal can cost from as little as 10 - 20 ó/t to over $1.00/t which is a big range. There may be good and unavoidable reasons for the high figure but there would need to be to justify being so far over the industry average. At the same time, mining and processing costs, at least for gold, are around $15 - 20/t. Viewed from this perspective tailings disposal will always be a relatively small component of the annual budget.

Jan 1, 2000

By D Ford

BHP BillitonÆs new rotary iron ore car dumper installation at Finucane Island (Port Hedland) was constructed to increase the total capacity of the port facility from 110 Mtpa to 120 Mtpa and to allow for incremental capacity increases in future. The arrangement of the dumper is similar to other car dumper installations existing on site. To construct the facility, approximately 120 000 m3 of material was excavated in six months, to a total depth of 22 m. The saline water table was nominally 6 m below ground level and the materials excavated varied depending on depth, ranging from sand to mangrove muds. There was a need to retain the sides of the excavation and limit the amount of water from entering the excavated area. This was required to allow excavation to progress and had to be maintained during construction of the permanent concrete and steel facility. The excavation was backfilled progressively as construction progressed. Various retaining wall methods were investigated with the preferred option being sheet piles secured by walers and ground anchors. Detailed electronic models were developed and assessed to complete the final design arrangement. Dewatering bores around the perimeter of the excavation removed the groundwater to intercepted sumps within the site. A strict and methodical program was developed to monitor the integrity of the temporary works and the quality of the groundwater. The works were completed on time despite the following challenges being encountered: availability of resources and equipment, movement of mobile plant on æboggyÆ materials, difficulty driving sheet piles into material at depth, drilling of ground anchors to 32 m, grouting of ground anchors, greater than expected groundwater flows, and the risk of hydrocarbons within the groundwater. The lessons learned from the use of the retention system and, in particular, the associated construction challenges overcome, provide a sound basis for similar work in this buoyant resource market. The conference paper describes the temporary works options investigated, design considerations and processes, construction methodology and challenges encountered, and the monitoring systems developed. Lessons learned are also discussed.

Jan 1, 2007

Extensive geophysical exploration and drilling operations have been: conducted in, South Central Queensland by Phillips Petroleum Company and Sunray DX Oil Company since late 1959. The main outlines of subsurface geology are now known, but many problems must be solved before a comprehen sine. picture can be presented of the geology and petroleum prospects e Interpretations to date suggest that -fiddle Paleozoic sedimentary rocks, probably, related to the Tasman belt of geosynclines, once extended. over. most. of the area An oro;eny 2.n late Paleozoic time, succeeded by deep pre-Pexmian erosion, removed the older sediments over large. areas, but Paleozoic sediments, were preserved from erosion in the Adavale and ancillary structur-a.l basins. Marine sediments of Devonian age are con-sidered prospective source beds for petroleum. Current work is directed toward finding favorable structure and reservoir beds to test the oil prospects of the area.

Jan 1, 1962

Large GDP increases in the Pacific Rim countries have been accompanied by similarly large increases in demand for oil products. In the case of residual fuels, this demand has been tempered by the substitution of other energy products such as coal or gas.In the region's developing and newly industrialised nations, it has not been possible to make the very large investements in infrastructure which allow other energy sources to be used for transportation. As a result, GDP growth has been mirrored in the demand growth for automotive fuels. Other non-sustitutable products such as lubricants have also benefitted by the region's GDP growth.The combination of a number of years of sustained growth, coupled with increasing quality requirements is now stretching the upgrading capacity of the region's refineries. If, as seems likely, the region continues to enjoy a high GDP growth rate, then this will be accompanied by increasing reliance on finished products coming out of the Middle East. The owners of the most simple form of refinery in which crude is simply distilled and the naphtha reformed into petrol will face major capital investments. If they decide not to bear this cost, they will face increasing problems in selling their surplus residual fuel oil at an economic price. Quality will become an increasingly important issue. Not only in the well publicised areas such as unleaded petrol, but also for products such as lubricants which play a major role in the efficiency of modem equipment. Quality of service such as hours of opening, ease of access, and service station facilities will also become increasingly important as the oil companies use these to attract customers and gain brand differentiation.

Jan 1, 1990

By R Stosch, D Lohberger, J Rodler, E Schnell and A Bassler, H Ramseier

In the last two decades three-dimensional (3D) computational fluid dynamics (CFD) simulations have become an important tool in engineering sciences. More recently, the safety requirements in underground railway stations have increased with regard to incidents. For this reason, existing underground stations (eg Munich, Strasbourg and Berlin) are being equipped with smoke extraction facilities to protect passengers from smoke and visibility impairment in the event of fire. In addition, designs of planned underground stations (eg Karlsruhe, Doha) also include these facilities.For the commissioning of ventilation engineering systems with complex structures, the functional testing of the whole technical installation are important, as are the acceptance tests of ventilation and equipment parts. This functional testing includes not only the technical inspection of the equipment but also the acceptance measurements of the capability of the equipment and the execution of hot- or cold-smoke tests to confirm the effectiveness of the ventilation system.Due to the fact that the overhead contact line and other sensitive installations were already installed in the tunnel roof at the time that smoke tests were proposed, hot-smoke tests with fire loads up to a maximum of 1 MW could only be executed. Therefore, the evidence of the attainability of the safety objective had to be provided computationally in this special case with a fire scenario of a heat release of 10 MW using CFD simulations.This paper presents the interplay between the results from acceptance testing and smoke tests and the use of 3D CFD simulation and virtual reality using the example of Allmend station, which was repositioned underground and is part of a new section of track from Lucerne railway station to Kriens in the Zentralbahn network. The steps of the verification and validation of the computer model are presented with the real tests and measurements.CITATION:Stosch, R, Ramseier, H, Lohberger, D, Rodler, J, Schnell, E and Bassler, A, 2014. Safety in underground railway stations – an example of the interplay between testing and 3D computational fluid dynamics simulation, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 103–112 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

By G Hobart

Laboratory flotation tests were conducted to investigate the role of pH, zinc sulfate and potassium metabisulfite in the flotation of galena and marmatite in the Broken Hill orebody. Marmatite was depressed under alkaline conditions alone, however the addition of the two depressants, either individually or combined, resulted in the greatest selectivity. The use of zinc sulfate under alkaline conditions resulted in good selectivity whilst maintaining a high lead recovery. The addition of potassium metabisulfite under alkaline conditions reduced zinc recovery, but high additions reduced lead recovery. The addition of both depressants at alkaline pH produced the best result, with a lead concentrate of 72.6 per cent at 98 per cent recovery with less than four per cent zinc recovery.

Jan 1, 2005

By H Sofatzis, J Kinal, J Siliezar, B Kirkwood

Ernest Henry Mining (EHM) is a copper, gold and magnetite mining and processing operation located 38 kilometres north east of Cloncurry in the Mount Isa - Cloncurry mineral district of north west Queensland, Australia. The EHM ore body is an iron oxide copper gold deposit with an average grade of 1.1 percent copper, 0.5 g/tonne gold and 22 percent magnetite.At the end of 2009, after a series of promising laboratory test work, EHM converted the ball mill media charge from forged steel to high chrome media. Laboratory test work also indicated that with the use of high chrome media, the pH was able to be reduced with no negative impact on plant performance. At high pH values (above 10.5), the forged media is passivated, so as the pH of the system drops the media corrosion rate increases and floods the system with corrosion products, affecting flotation. As the high chrome media is much more inert, pH has less of an effect on copper flotation response.This paper provides an overview of the effects of reducing the pH in the EHM copper rougher flotation circuit. The pH in the roughers was dropped from 10.6 to 9.6 to determine the impact on the rougher performance and the subsequent performance of the whole copper flotation circuit. It was found that there was a slightly increased improvement in copper recovery and no statistical change in either the rougher or final copper concentrate grades for copper and gold.With the reduction in pH, there was a noticeable reduction in lime usage from 0.85 kg of lime per tonne of ore processed to 0.55 kg/t. This reduction in lime is equivalent to approximately $700,000 per annum at current production rates.CITATION:Kirkwood, B, Kinal, J, Siliezar, J and Sofatzis, H, 2013. Low pH trial in the Ernest Henry Mining copper rougher flotation circuit, in Proceedings MetPlant 2013 , pp 371-377 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 15, 2013

By F Clark, J T. Carswell

Ore definition for final stope planning is often a challenging prospect in underground (UG) gold mines which exhibit high geological and grade variability. Unlike the grade control (GC) scenario in an open pit (OP), the ability for the mining geologist to plan a sampling campaign which effectively characterises the underlying mineralisation is fraught with difficulty. UG sampling patterns are strongly clustered and typically not dense enough to characterise the spatial and statistical properties. Very commonly, sample volumes are not large enough to provide a reliable grade estimate of the surrounding rock. These factors critically affect our ability to accurately map out ore positions and estimate metal quantities.At Sunrise Dam, traditional UG sampling and modelling techniques have proven to be an unreliable strategy for successful stope planning and extraction. The problem was first observed during the final cut-back in the open pit for which the mineral resource model was constructed from UG diamond drilling. Open Pit grade control reconciliations were strongly positive for both tonnage and grade compared to the resource model. Underground workings missed significant quantities of ore which was laterally defined by open pit reverse circulation (RC) GC drilling. Upon examination it was realised that the cause of the problem was one of inadequate sample density and sample support, the implications of which potentially affected the entire UG mine.As part of a broader study into underground grade control procedures, detailed reconciliation of initial stope production from the GQ domain also pointed to inadequate sampling as a major constraint to effective grade control and reserve conversion.To overcome this deficiency, dense 115 mm wet RC grade control drilling and conditional simulation modelling has been successfully implemented with the intent to replicate the grade control process in the open pit. The increase in sample density and sample volume has proven to be a very effective tool for mapping out highly complex mineralisation. A marked improvement in stope definition, reserve conversion and Mine to Mill reconciliations has been demonstrated on the back of an innovative approach to UG grade control.CITATION:Clark, F and Carswell, J T, 2014. Using reverse circulation drilling to improve sampling in a complex underground gold operation – an innovative approach to underground grade control at the Sunrise Dam Mine, Western Australia, in Proceedings Ninth International Mining Geology Conference 2014 , pp 143–152 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 18, 2014

By S Bright, M J. Masamvu, E K. Chiwandika, S Dandi, S M. Masuka

The depletion of high-grade hard and lumpy chrome ores has forced Zimbabwean ferrochrome producers to resort to low-grade friable ores that have an average of 28 per cent fines against a set limit of 12 per cent. Submerged open arc furnaces currently in use are associated with eruptions within the furnace because of the high amounts of fines, high energy consumption, as well as high SO2 and CO2 emissions. Traditionally employed agglomeration methods such as pelletising and the use of coke in the furnace have been discarded because of the pressure to lower operational costs and to achieve higher profit margins. This research aims to develop a method to incorporate lowgrade friable ore fines and unprocessed coal into production while lowering CO2 and SO2 emissions through a closed direct current (DC) arc furnace. The closed DC arc furnace could incorporate the friable ores and coal while maintaining above 90 per cent reduction rates. Preliminary findings also show that energy consumption could be reduced by up to 35 per cent by incorporating a pre-heating and pre-reduction system using the flue gases from the furnace. In the proposed circuit, the cost of production per ton of ferrochrome might be potentially lowered by an average of 30 per cent.

Jun 19, 2024

I start with some lines from "Pleasures of Hope" by the poet Campbell, published in 1798, which sets the flavour of what I am going to say. They blissful omens bid my spirit see The boundless fields of rapture yet to be; I watch the wheels of Nature's mazy plan, And learn the future by the past of man. I hope to echo the poet's optimistic view of what is yet to come. I am not sure I can find all the omens blissful but we all have some experience of what the wheels of Nature's mazy plan get up to. His advice to learn the future by the past of man seemed sensible to follow, so on the principle that the past of several men would be better than one alone I invited Alan Attwood, Maurice Cahalan, Gavin Moncrieff, Derek Temple, and Peter Wright to help me prepare this address; I am most grateful to them for their contributions. Of the technologies covered in this sequence of keynote addresses, metallurgy is the one which is closest to our consumers. On the age-old principle, which I do not expect to see changed in the 21st Century, that production is about providing the customer with what he wants, when he wants it, where he wants it, and at a price he can afford, I think we should start by trying to see how the market place is likely to develop, and to work back from there to review what technology we need to meet these demands.

Jan 1, 1986

Two outstanding features of the world's young orogenic belts are their very consistently developed suites of volcanic rocks and, it is now recognized, the rather distinctive types of mineralization they contain. Further,it is now known that these volcanic suites exhibit evolutionary patterns, and it is beginning to appear that this evolution in style of igneous activity is accompanied by a parallel evolution in style of mineralization. Specifically,podiform chromite and stratiform pyritic copper ores of Alpine ultramafic/submarine tholeiite association progressively give way to more zincian stratiform ores associated with andesites and dacites, "porphyry copper"deposits developed in quartz dioritic to dacitic plugs, and lead-zinc stratiform ores related to increasingly pyroclastic, rbyodacitic volcanism.This "coupling" is exhibited well in the volcanic arcs - the young orogenic zones-of the SW Pacific which, with tbeir abundance of youthful and commonly unmetamorphosed materials provide an opportunity for investigating, through a petrochemical approach, the possible significance of ores in the elucidation of mechanisms of lava formation. It is suggested as a working hypothesis that in the orogenic (voleanic arc) regime ores are associated with the cale-alkaline rocks because these cale-alkaline rocks are in part generated by exhalative loss, and the ores are among the manifestations of tbat loss.

Jan 1, 1978

Olympic Dam Operation is located in the Stuart Shelf Geological Province approximately 520 km north-north-west of Adelaide in South Australia. It is estimated to be one of the worldÆs top five copper orebodies by size and the biggest single occurrence of uranium. The deposit was discovered by Western Mining Corporation in 1975. Exploration was based on a conceptual model for the formation of sediment hosted copper deposits together with gravity and magnetic anomalies.The capital cost of the current expansion is estimated to be A$ 1.64 billion. The underground expansion includes a total of 36 km of lateral development, a railway haulage system delivering ore from a series of ore passes to a new crusher station and a significant increase in ventilation capacity and mine services.In the current underground expansion the mining method will essentially remain unchanged. The ore handling system will incorporate some recent advances in technology, improving efficiency and safety standards.Major infrastructure excavations are designed by a team of engineers attached to the Olympic Dam Expansion Project and a number of consulting groups. Once the expansion is fully completed it is expected to increase the current annual underground production level from 3.4 Mt to 9.0 Mt of ore by the year 2000. Mine design engineers working for the Olympic Dam Operation have recently completed a three year final design plan to achieve this target.Access to the existing mine is through the decline and Whenan shaft. The Whenan shaft was originally sunk as an exploration access and later upgraded for hoisting. The 4 km long service decline connecting to the Whenan shaft was later constructed to accommodate the increase in service demand. The Robinson and Sir Lindsay Clark shafts were developed at later stages to cater for the hoisting during and following the expansion lead up.

Jan 1, 1999

The key to the successful debt funding of a new mining project, whether in economically established or developing nations, is the submission of a comprehensive feasibility study. The feasibility study forms the basis from which the resource banker can construct financial models which govern the amount of available funds, the conditions which control the supply of such funds and the time period over which the loan may be repaid. The bank will wish to ensure that the feasibility study is the best representation and confirmation of reality possible because this model is the basis of the loan security package. Thus the study will be vigorously interrogated by independent experts in all its elements including the ore reserve, mineability, metallurgy, operating and capital cost profile, environmental factors and management.

Jan 1, 1995

By Q Wang

Net present value (NPV) has been the main criterion in mining project evaluation and production plan optimisation. It is a common practice in NPV calculations to take into account only the tangible cost items in the corporate accounting system. The costs incurred due to damage to the local ecosystem and environment are left out and treated as externalities. Such practice on the one hand underestimates the total cost of a mining operation and, on the other hand, ignores the difference in ecological/environmental impacts between different mine plan alternatives. This paper attempts to measure the ecological costs of mining and to incorporate such costs into the evaluation scheme in mining project evaluation and mine planning. The ecological costs of mining are estimated based on the areas and types of land (eg forest land, grazing land, crop land) damaged by mining activities and the carbon emission from fossil fuel consumption. For the land areas (and their associated ecosystems) directly damaged by mining activities, the ecological costs are measured by the prevention and restoration costs, the lost values of eco-services of the damaged land, including bio-product production, soil erosion control, water run-off control, oxygen release, air pollutant absorption and formation of soil nutrients. The ecological cost of carbon emission from the energy consumption of a mining operation is measured by the cost of cultivating the equivalent forest land required to uptake the emitted carbon. A case study on a large-scale open pit mining project is presented to demonstrate the influence of ecological costs on the mine planning outcome.

Sep 26, 2011

By C Standing, R Lacourt Rodrigues, C Q

The value of iron ore depends on the grade of the contaminants. Scheduled iron, and the associated contaminants, provides mine planners with a measure of stockpile feed and blending requirements. Blending at the stockpiles is one approach to optimising iron grade, while minimising the variability of contaminant grades. These schedules are typically based on resource models incorporating geology and iron and contaminant grades. Resource models reflect best estimates of trends for each of the elements rather than the potential variability, which is critical for accurate short-term blending. Conditional simulation provides a tool to describe the likely variability of each element. Only recently has conditional simulation technology allowed the inherent correlation between elements to be incorporated into the process. This paper presents the stepwise co-simulation process used to simulate and describe multi-element variability for effective mine planning. A case study using the multi-element conditional simulation and the subsequent uncertainty in the schedule and stockpile planning is presented. This process supports proactive mine planning to minimise unexpected fluctuations in the final product.

Jan 1, 2005

Lafayette Mining Limited, a listed Australian company, is developing a polymetallic Project on the island of Rapu Rapu, located to the east of southern Luzon in the Philippines. The Rapu Rapu Project is based on the Ungay deposit, which has proven and probable reserves of 6.0 million tonnes of 2.5 g/t Au, 28 g/t Ag, 1.2 per cent Cu and 2.1 per cent Zn. The Project will produce copper and zinc concentrates from a sulphide flotation plant as well as dore from a CIL gold plant. Average annual metal production over the projected six-year mine life is 9800 tonnes of copper, 14 000 tonnes of zinc, 50 000 ounces of gold and 590 000 ounces of silver. Despite a rich mineral endowment and long mining history, there have not been any significant new mine developments in the Philippines since the early-1990s. The investment climate has been affected by legal challenges to the 1995 mining code, civil unrest in parts of the country, the impeachment of the previous President and community concerns about the industryÆs environmental performance. As a consequence, the Rapu Rapu Project is viewed as a test case û within both the country and the international mining industry û on whether minerals investment in the Philippines is an acceptable business proposition from a risk perspective. Lafayette has faced formidable challenges in managing the development risks of the Project. The major risk areas of the Project for which the company developed strategies include: regulatory, environmental and approvals issues, technical evaluation, project development, social and community issues, land acquisition, and financial and marketing issues. This paper describes the risk management strategies successfully pursued by the company, and which have the Project on track to commence construction in 2003. Dealing with each of the areas in turn, Lafayette sought to develop strategies which either effectively neutralised, minimised or otherwise addressed the key risks most likely to be experienced.

Jan 1, 2003