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By J. de Bakker

It hardly needs to be repeated that if coal is to continue as America’s premier source of cheap energy, it is absolutely necessary that the carbon dioxide from its combustion somehow be sequestered. A promising method proposed to accomplish this is the “indirect” carbonation of serpentine in a concentrated magnesium chloride brine. Indirect carbonation could be also applied to precipitate magnesium in lateritic nickel processing: this would not only solve magnesium-control problems in laterite hydrometallurgy, but also reduce its energy requirements and create CO2-sequestration credits. Fifty-five percent of the electricity generated in the United States comes from coal-fired power plants, and American coal reserves can last over 500 years at 1990-level consumption1. Coal is therefore both abundant and cheap: it could (and in fact probably will) continue to be an affordable source of energy, both for producing electricity and as a feedstock for liquid hydrocarbon production by Fischer-Tropsch reactions. As a result, it is important to find a workable method of permanently sequestering CO2.

Jan 1, 2007

By Gerhard Sauer, Heimo Gold

The main advantage of the New Austrian Tunneling Method over conventional drill and blast techniques, TBMs and shields is its outstanding flexibility. Many different support concepts help to cope with all but the most adverse conditions. A considerable variety of unique additional support measurements provide a functional tool when dealing with particularly difficult conditions or restricting requirements. The resulting adaptability of NATM with respect to geometric and geologic changes is a cornerstone to providing an economic design and to a safe and unhindered execution of the tunnel work. To take best advantage of this flexibility and to emphasize its cost-saving capacity, NATM explicitly extends the design period into the construction phase. In accordance with corresponding ground classes or other anticipated conditions, a number of basic support categories and an array of additional support measurements are established during the actual design phase. The decision for applying a particular support category at a specific location and for necessary additions to the given support scheme, however, is regularly made on site after each advance, and is determined by the key persons involved in the construction. Contract documents must reflect this approach to facilitate the execution of the work and to curtail construction costs. Biased distributions of risks, however, can adversely effect the envisioned benefits. Consequently, the respective responsibilities of engineer, contractor, and client need to be redefined.

Jan 1, 1989

By Ricardo Morales

Reactions between solids and a gas phase have many interesting theoretical aspects as well as technological applications. The present group had carried out experimental investigations as well as theoretical studies of a number of gas-solid reactions over the past decade and was able to derive interesting results. Studies of the decomposition of alkaline earth carbonates were carried out by thermogravimetric analyses. The experiments were carried out using thin powder beds as well as iso-statically pressed compacts with thermocouples embedded in the same. The investigations revealed the complexity of the reactions and the impact of the heat- and mass transfer aspects on the reaction kinetics. In the case of BaCO3, the kinetics of decomposition was complicated by the formation of a liquid phase. In the case of SrCO3, the reaction kinetics could be simulated by theoretical modeling. Gas-solid reactions were also employed as a versatile process tool towards the production of alloys and intermetallics involving transition elements by hydrogen reduction of complex oxides involving transition metals. Thin powder beds were employed to examine the micro-kinetics, while fluidized bed technique was utilized to produce bulk alloys. Preliminary correlations could be drawn between the thermodynamic stabilities of the oxides and the activation energies of chemical reduction steps. Adjusting the process parameters, products at nano-scale could be produced. The structural, mechanical and thermal properties were investigated in the case of these products. The potentialities of this method as a green route to produce industrially important alloys and intermetallics with unique properties are demonstrated.

Jan 1, 2006

By R. A. Hancock, L. C. Uren, G. V. Feskov, P. P. Gregory

The resistance to flow of mixtures of gas and oil in passing up through the flow tubing of oil wells operated by gas-lift or by natural flow is a factor in oil-recovery technic that has received but little attention. Yet accurate design of a tubing installation for a particular set of conditions, where operation is by either of these methods, is impossible without quantitative data on the pressure loss suffered by the oil-gas mixture in its passage through the well tubing to the surface. Because of lack of such information, petroleum production technologists have been compelled to approach this problem by " cut-and-try" methods, which, doubtless in many cases, has resulted in the installation and use of tubing too large or too small for most efficient utilization of the expansive force of the gas used in lifting the oil. Impressed with the necessity for information of this character, the authors have conducted a series of tests with large-scale apparatus in the petroleum engineering laboratories of the University of California, designed to be productive of data that would afford a means of attacking the problem of flow-tubing design on a more scientific basis. Mechanics of Expulsion of Gas-oil Mixtures in Naturally Flowing and Gas-lift Wells When oil is lifted from a well by the expansive force of compressed natural gas or air, the fluids enter the lower end of the eduction tube under elevated pressure, with the gas partly in solution, but largely distributed in the form of occluded bubbles within the oil mass. As discharged from deep wells, after reaching the surface, there will normally be at least 60 times as much gas, by volume, as of oil; and in many cases the ratio of gas volume to that of the oil will have a value as great as 1000 or more. On entering the lower end of the eduction tube, however, a relatively smaller volume of gas will be found in the oil-gas mixture, on account of compression of the gas in accordance with the elevated pressure necessary. If the pressure at the point of admission to the

Jan 1, 1930

By R. S. Rogers

Abstract - Forensic geology in a mineral exploration context is concerned with geology and related technical matters as they pertain to legal cases involving exploration and evaluation of mineral properties. Such cases involve the possibility of outright scams that include falsification of data and information, as well as inappropriate application of various technical procedures. Experience in forensic geology in such cases emphasizes the need for systematic quality control procedures during routine exploration/appraisal and indicates the need for more attention to ‘target hardening’ (improving security in the chain of custody of samples and assay results). A number of ‘early warning signs’ that might suggest some form of tampering or falsification of information are listed. These measures will support the work of the "Qualified Persons" (geologists and engineers) entrusted with the scientific and technical aspects of mineral exploration, and facilitate the increased attention to regulatory oversight and enforcement of securities laws recommended in the report "Setting New Standards."

Jan 1, 1998

By F. L. Wilke

The prototype of an expert system, designed to assist layout planning of face operations, is presented. By specific combination of knowledge-based and conventional EDP techniques it has been possible to extend the known Kepner-Tregoe method up to the determination of mature layout solutions in difficult planning cases. It has been proven that the presented strategy - which can be applied to any kind of problem with similar structure - is apt to provide efficient EDP support for handling complex mining problems. Such support goes far beyond the purely numeric evaluation of envisaged alternatives.

Jan 1, 1989

By Wayne F. Luinstra, Frédérique Vincent, André R. Laplante

"A test to determine the amount of gravity recoverable gold (GRG) in an ore is described. Typical GRG results are given; possible uses are discussed. A case study of how the technology was used at Hemlo Gold Mines is presented.IntroductionUsing gravity to supplement either flotation or cyanidation is a well established practice in the gold industry. It differs from most recovery circuits in that most of the gold recovered by gravity would be recovered in any case by the circuit downstream, be it flotation or cyanidation. The economic justification of gravity is therefore based on small margins (for example. a net smelter return of gravity gold of 99%, as opposed to 94% by flotation). It was easily demonstrated when either flotation or cyanidation were relatively inefficient processes, and labour costs low (as gravity can be labour intensive). Over the past thirty years, the advent of better flotation machines (flash, column, high capacity), more effective collectors, and better control systems has increased flotation's metallurgical performance, thereby decreasing the incentive for gravity recovery. Cyanidation technology has undergone similar changes, with the advent of activated carbon, oxygen and lead nitrate addition, and improved impeller design.Today, gravity could remain an attractive option only inasmuch as it can be implemented with very low capital and operating costs. This has resulted in a relative shift away from gold gravity recovery (except for alluvial deposits), in the seventies and eighties. For example, as of the early nineties, gold gravity recovery has disappeared from the typical South African flow sheet. The advent of the Knelson Concentrator, at the beginning of the eighties, foreshadowed a resurgence of gravity recovery, as gold's grinding and classification behaviour (Banisi, Laplante and Marois, 1991) makes it possible to achieve adequate gold recoveries with very simple, Knelson based, gravity circuits (Laplante et al., 1994).Consider for example the Hemlo recovery circuit, made of a single 61 cm x 122 cm (2' x 4') screen, an automated 76 cm (30"") Knelson feeding a Gemeni table, to produce a 70-80% Au concentrate which accounts for approximately one fourth of the gold production (about 3 million grams per year). The low capital and operating costs make it possible to justify the gravity circuit on the basis of savings in other operating costs (e.g. fewer carbon stripping and reactivation cycles). Any improvements in recovery, which would at Hemlo be difficult to measure, would be additional benefits. Such a circuit is rapidly becoming a standard in Canadian and Australian operations.The justification for installing a gravity circuit must be first based on an estimate of how much gold it will recover (irrespective of what the potential benefits are). This is a function of the nature of the gravity circuit to be installed; however, Knelson circuits, by their very simplicity and efficiency, limit the options. This leaves the amenability of the ore to gravity recovery as the single most important parameter. Various approaches can be used to characterize this response (Woodcock, 1993). The present work sought a route which would fulfil the following criteria:"

Jan 1, 1996

By John C. McKay

"The five papers which follow, under the heading of ""Technology Transfer-Universities to Industry"", were originally presented at the 20th Annual CIM Conference of Metallurgists in Hamilton, Ontario. They are a unique group of papers, unique because each paper is concerned with applied research done wholly or partly in a university environment and then translated into industrial practice.Universities can rightly be regarded as one of our nation's greatest resources-a veritable storehouse of knowledge and expertise. Yet, too often, this resource is overlooked or, at best, sparingly used by Canadian industry. Of course, university-based research cannot supplant industry-based research, nor vice versa; each type of research activity has its proper role in the over-all process of technology development.University-based scientists are best equipped to conceptualize, innovate, determine viability of basic premises and to verify these at the bench or small pilot-plant level. Industry based scientists are best equipped to develop ""bench-scale"" innovations into mature manufacturing practices. Thus, university-based scientists and industry-based scientists do not compete with, but rather complement, each other. Active, relevant university research enhances industrial research provided good communication between the two ""solitudes"" is continually nurtured.Good communication between industry and university is a prime objective of CSIRA/ACRIS (Canadian Steel Industry Research Association /Association Canadienne pour la Recherches dans d'Industrie Siderurgique), The directors of CSIRA/ACRIS foster improved communication by making regular visits to universities, by sponsoring projects and by providing lists to professors of uncharted areas where basic research is needed. More can be done to improve communication between industry and university, and it is the intent of the Association to do more.The five papers sponsored by CSIRA/ACRIS are examples of good communication and healthy cooperation. It is interesting to note when reading these papers that the cooperation arose, in each instance, as a result of different circumstances. However, there is a common thread and it is personal acquaintanceship-the university scientist/professor and the industry investigator/manager knew each other prior to the initiation of the project."

Jan 1, 1982

By J. B. Morgan

The mechanical behavior of MgCu2 from 20 o to 725°C has been determined by "brittle-ring" tensite-test techniques, axial compression, and bending experiments. Compressive ductility begins at 450°C (0.65 T/Tm) and slowly increases with increasing temperature white the tensile ductility is characterized by an abrupt brittle-ductile transition at 600°C (0.8T/Tm). The compressive strength increases eightfold from room temperature to 400°C with a "normal" decrease as the temperature is further increased. The tensile strength goes through a rather abrupt threefold increase above 600°C with a subsequent decrease at higher temperatures. The slip system is (111)[110] and the twinning system is (111)[112]. At high temperatures MgCu2 is quite rate-sensitive, and dynamic yield points are observed that are extremely orientation-dependent. The high-temperature creep behavior under constant load is characterized by an increasing strain-rate with time. The general characteristics of the mechanical behavior make it possible to classify MgCu2 with those materials in which initial mobile dislocation density and the dislocation velocity-stress dependence are significant in determining mechanical response. Mgcu2 is the C15 prototype of the cubic Laves phase. Its range of homogeneity extends from 32.8 to 35.5 at. pct Mg at 500°C and narrows at lower temperatures. The lattice parameter is reported to vary from 7.02 to 7.05A,1 and the compound is completely ordered to the melting point of 819°C. MgCu2 has a brassy metallic appearance, is extremely brittle, and many of its physical properties are intermediate between those of the constituent elements: the electrical resistivity is 3.5 x 10-6 ohm-cm, Young's modulus is 10x 106 psi, the shear modulus is 6 x l06 psi, and the thermal coefficient of expansion is 18.7 x 10-6 cm per cm per "C from 20" to 250°C. Usually, properties of intermetallic compounds as functions of temperature have been determined by hardness, compression, or impact behavior, and almost all of these experiments have been performed on polycrystalline materials. Tammann and Dahl,2 for instance, determined the onset of ductility in a series of binary intermetallics by ball-hardness measurements and found the onset to range between 0.71 and 0.96 T/T,. Lowrie's3 investigations included some tensile properties, and he found ductility beginning around 0.65 T/Tm for most materials examined. His work did include some data on polycrystalline, nonstoichiometric MgCu2, however. The present work is an attempt to extend the examination of the particular compound MgCu2 in single-crystal form in order to aid the formation of general concepts about mechanical be-

Jan 1, 1965

By F. Ntengwe

The Konkola Mine, a subsidiary of the Konkola Copper Mines Plc (KCM) which is owned by the Vedanta group of companies of India and Zambia Consolidated Copper Mines Holding limited, is located at Chililabombwe in the northern extension of Zambia's Copperbelt province. In its operations, the mine has been experiencing problems in ascertaining the optimum degree of fineness and the operating density of the hydrocyclone overflow in order to achieve high flotation performance. It was believed that recovery of sulphide copper minerals from Konkola ore is a function of the fineness of the grind so that it might be an economical justification to modify the grinding plant in order to run at lower cyclone overflow densities than the case is now. In an effort to improve these operations, it was decided to carry out test work on various hydrocyclones of sizes 0.381 m, 0.4575 m and on 0.508 m. The later was found to give satisfactory results and was installed on the plant. Despite giving satisfactory results there was need to investigate further to establish the working densities and size. Increasing the density of cyclone overflow decreases the per cent passing 75 pm at least in the range 1080-1 150 g/l. Furthermore, hydrocyclones give better separation at low densities of feed and hence the efficiency is high at low feed densities. Circulating load increases with an increase in feed densities and an decrease in the grind. The flotation performance in both sulphide and oxide copper minerals rougher stages is enhanced with an increase in the degree of fineness of the grind, with an optimum being obtained at a density of 1 150 g/l and 81.4% passing 75 µm. Keywords Konkola mine, hydrocylone, optimum degree of fineness, sulphide copper minerals.

Jan 1, 2011

By G. H. Anderson

Cadmium-coppeR precipitate, a byproduct of the purification stage of the zinc plant, is composed mainly of zinc, cadmium and copper in varying amounts depending on the efficiency of precipitation and the cadmium and copper contents of the impure solution treated. The composition range is approximately: cadmium 10-12 pct, copper 6-8 pct, and zinc 3&35 pct. As received at the cadmium plant, the precipitate is a dark gray to black press cake produced by filter pressing the flocculent cadmium-copper precipitate formed when impure zinc solution is agitated with zinc dust. The details of the cadmium-copper precipitation are to be found in the paper "Electrolytic Zinc at Risdon, Tasmania," by W. C. Snow. Transactions AIME, 121, 501. The treatment, in addition to recovering cadmium as metal, yields a copper product as a residue for realization and recovers in solution for return to the zinc plant, the excess of zinc dust used during purification. The recovery of cadmium metal is approximately 200 tons† per year, but, with the amount of copper residue recovered, varies with the zinc production tonnage, composition of the original concentrates, degree of roasting and other operational factors. The operations involved in the recovery of the foregoing materials are carried out in a building adjacent to the purification section of the zinc plant and can best be described by dividing the process into the following stages: 1. Oxidation and Grinding of the cadmium-copper precipitate. 2. Leaching and Filtering. 3. Precipitation of cadmium. 4. Oxidation and Grinding of the precipitated cadmium. 5. Leaching oxidized cadmium precipitate and Purification of leach solution. 6. Electrolysis. 7. Melting, Casting and Packing. A feature of the process is the use of two distinct solution circuits. Spent electrolyte from the zinc plant circuit containing about 10 pct sulphuric acid is used as the primary solvent of the cadmium and zinc present in the oxidized precipitate. When the cadmium is later separated by precipitation and filtering, the filtrate, originally zinc plant spent electrolyte and now fortified in zinc, is returned to the zinc plant. The precipitated cadmium, after oxidation, is redissolved in spent electrolyte from cadmium electrolysis which solution is in closed circuit within the cadmium plant except for discards to the zinc plant circuit as mentioned in Section 5 hereinafter. (Fig 1.) Details of the various operations follow. I. Oxidation and Grinding of the Cadminm-copper Precipitate The precipitate having had a preliminary drying by compressed air in Dehne filter presses in the zinc plant is trucked to a storage platform of sufiicient length to store 3 to 4 days' production separately. After 48 hr exposure to atmosphere, oxidation is sufficient to enable all cadmium and zinc but only a portion of the copper to be dissolved in dilute sulphuric acid. The oxidized precipitate is shovelled into trucks and, after weighing and sampling, is broken in size by means of

Jan 1, 1950

By Axel Preusse

To detect improper deformations of a roof bolted roadway in order to reduce inner mine damages in the most early stage and to initiate suitable countermeasures if necessary, several different measurement systems were used for monitoring a roadway's stability on the hardcoal mine "Auguste Victoria" (DSK AG). In this paper the different convergence measurement procedures are described and their respective results are introduced. Subsequently the results of the single measurement methods and procedures are correlated with each other.

Jan 1, 2000

By J Rowland, B Belle, M Webber

The Australian underground coal industry has experienced substantial improvements in longwall productivity and, as such, the methods of providing a safe and productive mine environment have needed to evolve and develop. Whilst the primary method of controlling atmospheric conditions is by airflow it has become impracticable or impossible for the majority of Australian longwall mines to contend with all environmental hazards with primary ventilation alone.If the ventilation circuit cannot provide a safe and productive mine environment at an acceptable cost and circuit duty then supplementary controls are required. Examples include pre-gas drainage, post-gas drainage, gas utilisation, refrigeration and innovative dust control systems. Of the 21 longwall operations surveyed in Australia, there were 13 in New South Wales and eight in Queensland.This study represents a timely opportunity for the industry to examine the primary and supplementary ventilation systems implemented in Australian longwall mines and to discuss how to equip the industry to successfully face the future of underground longwall ventilation management in Australia.CITATION:Webber, M, Belle, B and Rowland, J, 2017. Australian longwall ventilation systems, in Proceedings Australian Mine Vent Conference 2017, pp 301–308 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 28, 2017

An explosive's velocity of detonation (VOD), can be used to indicate a number of important characteristics regarding the product's performance under specific field and test conditions. A number of new characteristic and transient VOD curves have been identified in the field, which can be used to evaluate explosive performance, control ground vibration amplitudes and frequencies, select the correct amount and type of stemming for use at the collar and in stem decks, eliminate explosive desensitization, evaluate primer performance, design air deck based blasts, evaluate contaminated explosives and to overcome post blast noxious fumes.

Jan 1, 1994

By A. D. S. Gillies

The effectiveness of coal mine face ventilation and the ability of airflow to maintain satisfactory methane and respirable dust levels in the working face area has been studied through the use of scale modeling techniques and underground testing procedures. In particular, consideration has been given to examination of the effects of operation of a high airflow, machine mounted dust scrubber unit on face air patterns. Results obtained through a cooperative study with the Peabody Coal Co. demonstrate that new mining cycles can be considered that increase production efficiency while maintaining satisfactory ventilation conditions.

Jan 1, 1986

By Scott Jones, Tony R. A. Durkac, David W. Stephens

Williams Mine was considering spending a large amount of capital to install a pumping system underground to rid the mine of slimes; with the introduction of Delvo Stabilizer this challenge would be met. This paper will address the process to introducing the Delvo Technology into the Cemented Roddill Program. Some areas that were worked on included: testing of the mix design, bet dosage rate for an economical solution, temperatures at different levels of the mine, the amount of time needed once the grout was put to sleep, preventing plugs in the delivery system A controlled dosage that gave the Operator a 12 hour window of flowable material was developed and an added feature to the introduction of Delvo was also noted; an increase in MPa strength over the design. Collectively with the help of operators at the batch plant and the underground miners involved with the program all concerns where addressed and all goals met. A cost effective program was implemented thus increasing productivity, preventing costly plugs, and improved the actual maintenance on the entire delivery system, which included the batch tanks, aggitator tanks, all pumps required in the system and of course reducing buildup of slimes at the cones.

Jan 1, 2001

By H. Lyn Bourne

Daily everyone depends on the great variety of glass products, so much so that glass is often taken for granted. In fact most people do not realize how versatile glass has become. Consider the various uses and then try to imagine a day in which we are not influenced by glass. Common uses include container ware, table ware, window glass, lead crystal, automobile glass, and fiber glass. Several less common, but important, uses include laboratory ware, pharmaceutical, TV bulbs, light bulbs, glass ceramics, optical glass, fiber optics, and laser glass. Corning, Inc., a leader in specialty products, uses nearly 1 000 different compositions to manufacture about 60 000 different products (Edwards and Copley, 1977). Glass is such a complex product that-definitions vary and exceptions can be found for most definitions. Glass is an inorganic amorphous (non-crystalline) solid. Most glasses are produced by melting of a mixture of oxide raw materials, and then cooled to room temperature. Soda-lime-silica composition.s account for about 90% of all glasses melted (Anon, 1973). The properties of the glass product come mainly from its chemical composition. All of the different glasses require melting a combination of raw materials and forming the molten material into the desired shape. Both the melting and the forming processes use sophisticated technology and these technologies require experts to manage these production systems. The manufacturing process is continuous and takes place in tonnage quantities, so adjustments in the batch to achieve the desired finished product requires a great deal of expertise. Raw materials are fed to the batch mixing area in very large quantities (tons in most cases). As a result, impurities in the range of 0.1% result in addition of that impurity within the molten glass in kilogram amounts. More than twenty different industrial minerals are consumed in the manufacture of various kinds of glass (O'Driscoll, 1990). This chapter describes the major and minor ingredients of the various glass batches. It discusses the roles of the various oxides in the glass batch and most importantly considers the mineral raw materials which supply the glass industry. Each of the raw materials is described in detail in other chapters so the geology and mineralogy sections are kept brief here. Container glass, by far, accounts for the most production; followed by flat glass, fiber glass, and specialty glass of which table ware accounts for the greatest tonnage. [Table 1] shows the general production data for 1987 through 1990. Statistics for many of the uses do not appear because production volumes are small compared to the major uses. The glass industry is organized in four categories: containers, flat glass, fiber glass and specialty glass. The US Department of Commerce, Bureau of Census, publishes production data about the glass industry in three different categories: 1) glass containers, 2) consumer, scientific, technical and industrial glassware, and 3) flat glass. The Bureau has very complete statistics about the glass industry in these three categories but they report production data in different units according to industry standards. Therefore, [Table 1] gives the production data in dissimilar units. The production of most glass articles follows similar steps. The raw materials are mixed and the resulting batch is fed into the furnace. In soda-lime-silica glasses melting begins between 600 and 900°C. At these temperatures CO, and other gasses are released which create bubbles in the molten glass. To remove the bubbles and insure complete melting the temperature is raised to between 1 500 and 1 600°C. This is the melting-refining stage during which the refining agents in the glass batch serve to aid in the release of gas bubbles, homogenize the melt, and prevent the formation of scum on the surface of the molten liquid. At the conclusion of the melting-refining stage the glass is too fluid for working and the melt is cooled to about 1 100°C to attain the proper viscosity for working and forming to begin. After the glass article has been made, it must undergo annealing (slowly and uniformly reheated and cooled) to remove thermal stresses that were created during the forming process.

Jan 1, 1994

By Ralph Bernstein

The processing of earth observation sensor data by digital technology is almost two decades old. Only recently, however, has this technology become practical and economical. The reasons for this are interesting to analyze, and they provide some insight into what the future may bring. Some of the earlier activities and their limitations, current systems and their applications, and future technology direction are summarized.

Jan 1, 1979

The impact on metallurgical operations of the hydrocarbon energy price hike can be greatly alleviated by recourse to alternative fuels. Information is provided on fuels such as coal, coke, coal-oil mixtures, manufactured gas, wood and charcoal; techniques such as direct and indirect combustion, pulverised fuel injection, slurry burning, fluid bed combustion and various gasification processes. Actual examples of metallurgical operations are used.

Jan 1, 1981

By Greg Brown

The underwriting of professional negligence has proved to be an evolving science. As with most insurance products coverage offered in the past was very broad but as legal precedent demonstrated to Insurers areas of unforeseen exposure policy documents per se have become more restrictive until today the insurance market through attrition have produced a basic policy structure with various purchasable extensions which together provide insuring professionals with coverage that has proved to be adequate for their needs. The basic policy provides indemnity and protection for fortuitous negligence. In a practical sense, however, professional indemnity policies are really a defence document in so far as policy holders are relying upon the expertise of Insurers to protect them in the event that a claim is made upon them. Whether damages are awarded is in many respects a secondary consideration, the most important factor is to ensure that policy holders are protected in terms of the legal defence mechanism. By way of illustration we are currently in the process of defending a large professional firm which purchased from us a policy with a limit of indemnity of $10M. The case has been running in a Supreme Court now for 14 months and the defence costs which we have incurred on their behalf are rising close to $8M as I put pen to paper. Defence costs of that magnitude would in effect terminally cripple all but the very largest professional operations in Australia. In more recent times coverage has been provided in Australia for breaches of the Trade Practices Act and similar legislation enacted in various States. No-one really appreciated the comprehensive impact which the Trade Practices Act would have on commerce in Australia. Most professionals thought that indeed they would be exempt from prosecution under this Act. The passage of time has clearly indicated that this is not the case and we have found that it is much more difficult to defend a claim involving breaches of the Trade Practices Act than it would be to defend a claim for breach of tortuous liability.

Jan 1, 1995