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By W. M. Jansen

In many mineral processing operations, the reported production figures for an accounting period may not make the best use of available data. While most of the mathematical approaches, such as check-in/check-out, mass balancing, used in effective metallurgical accounting strategies are well understood, the sources and magnitude of measurement errors generally are not. As part of the 'AMIRA P754-Metal Accounting and Reconciliation' project, a study was undertaken at the Northparkes copper/gold concentrator near Parkes, New South Wales to examine the data used in their concentrator metallurgical accounting system. This paper summarises the results of a detailed examination of the mass measurement systems around the concentrator as well as the primary sampling system used for grade estimation. The goal of this work was to develop practical techniques to quantify the error (ie both accuracy and precision) of the measured metal accounting information. With this information, statistical confidence levels for this data can then be calculated. If the errors are small, the effect of error in each piece of measured data can then be propagated to other calculated production figures such as recovery and feed grade using a statistical technique called `the propagation of error'.

Jan 1, 2007

By D. P. Power

The development of an accounting code for the metallurgical industry has been debated for many years. Following the series of tumultuous economic events in the nineties and earlier this century that have affected business, there was much need for legislation to be passed to minimize potential risk. One of the consequences to affect the mining industry was the enhancement of existing geological codes for reporting. In parallel the sponsors of AMIRA have taken the brave step to develop a generic code for metal accounting that embraces the full gamut of industry. In this paper the code will be reviewed in the context of metallurgical accounting as it applies to coal preparation. This paper provides the background for this development and an insight into the mechanism for the debate for the generation of this code. The key elements of the code as it applies to the coal industry are explained but most importantly the key opportunities are highlighted.

Jan 1, 2010

By V. N. Kazakidis

With increased levels of automation, capitalization, and empowerment of citizens, the traditional axis of labour versus capital or national government versus capital, upon which the allocation of benefits from a mining project was traditionally based, has shifted primarily to a capital versus community axis. In light of this paradigm shift, it is critical for the sustainability of mining that economic indicators be considered at the pre-feasibility, feasibility, and permitting stages of a project. Such indicators should emphasize the ?ripple effect? of the economic impact of a capital-intensive mining investment on a region due to outsourcing, as well as the diversified spin-off opportunities and the technological advances that can be exploited by local communities.

Jan 1, 2003

By David M. Beckwith

Increased globalization and outsource manufacturing complicate the procurement and enforcement of intellectual property rights on a worldwide basis. Recent legislative and case law developments in the United States highlight the importance of a multinational intellectual property strategy. IP lawyers David Beckwith and John Hankins will discuss planning and pitfalls in this rapidly changing trans-border environment. Topics to be discussed include harmonization with international patent laws, protecting your technology and market space with a comprehensive approach to IP, and patent enforcement issues relating to import/export of products and components in the United States.

Jan 1, 2006

By John M. Rogers

Risk management has rapidly developed to become an integrated, holistic approach that now encompasses the main risk elements such as product quality control, occupational health and safety, security, environmental liability, social issues and related management information systems. Given the obvious economic benefits, a seamless blend of risk management components has become essential to allowing organisations to sustain a competitive advantage, and is also looked upon as an important attribute in organisational growth. Juxtaposed with this management philosophy is the global trend towards outsourcing, which has seen the emergence of independent, and specialist risk management organisations. The New Millennium will undoubtedly see a shift away from "in-house" risk management practices, and consequently, the selection of a suitable risk management partner - a major vehicle for improving shareholder value - will become an important strategic management decision.

Jan 1, 1999

By A. Chieregati

"A heterogeneity study was conducted at Erdenet Copper Mine in Erdenet, Mongolia, to determine the fundamental sampling error associated with blasthole sampling. Using a custom designed sector sampler, six large blasthole samples were collected to perform the test that was developed by Pierre Gy, to estimate the constitutional heterogeneity factor for several types of ore. The study investigated the entire sampling protocol, from mine site to analytical laboratory, and quantified the contributions to fundamental sampling error (FSE) of the various stages of sampling and sample preparation. The total relative standard deviation (RSD) of sampling error was determined to be ±32% and ±49.4% for copper and molybdenum respectively. A classical statistics analysis conducted on the data confirmed the level of RSD. About 95% of the sampling error was produced from only one step in the sampling protocol: when the 1 kg sample was reduced to 50 g sample for chemical analysis. Therefore, it is recommended that the 1 kg sample be reduced to 50g using a slightly different protocol to minimize the FSE. The 1 kg sample should be first crushed to 0.2cm size. A 250g split should then be taken and fine ground. A 50g split should then be taken from the 250g fine ground split. These two simple steps will reduce the FSE to ±7.9% and ±17% for copper and molybdenum respectively. The modified sampling protocol effectively reduces the probability of misclassification of low grade ore to zero. INTRODUCTION The Erdenet copper-molybdenum open pit mine is located in Erdenet, in Orkhon province, Mongolia. The Erdenetiin-Ovoo copper-molybdenum deposit is between 1.5 and 3 km wide, and about 25 km in length (Erdenet Mining Corporation, 2016). Chalcopyrite, bornite covellite and chalcocite are among the major minerals found in the deposit. The mine processes approximately 26 million tons of ore annually. A study was conducted to evaluate the fundamental error associated with the blasthole cuttings and sampling protocol at the mine. The open pit mine uses 215mm diameter Russian drills to drill 17.5m holes for 15m benches. The total weight of blasthole cuttings for a 215mm diameter hole and 15m bench height is between 1.5 and 2 tonnes. This amount of sample is difficult and time consuming to collect and analyze. Therefore, a sector sampler was designed for the Russian drills to collect large samples that were representative of the blasthole cuttings (Ganguli et al., 2016). In order to eliminate the delimitation and the extraction errors, researchers consider sector samplers to be ideal for sampling blastholes (Pitard, 2008; Chieregati and Pitard, 2009). This method was intentionally more rigorous than the blasthole sampling protocol at the mine to ensure that the blasthole cuttings were properly sampled. This study was part of a broader study that also looked at the relationship between particle size and grade. The samples collected by the custom designed sector sampler were very large (195 kg on average), and therefore, sufficient for both studies. The relationship between particle size and grade has been reported in Ganguli et al. (2016)."

Jan 1, 2017

Jan 1, 2004

By Seymour D

The disagregation and privatisation of the mining and power gene ration operations of the former State Electricity Commission of Victoria has being taking place over the past five years. This has transformed the service provision to the new organisations and has resulted in major change to the working lives and professional relationships of thousands of Australians. The authors wish to take this opportunity to explore the issues arising as the program of privatisation of public assets continues. Changes within the workplace which resulted from the outsourcing of the 'investigation and design' functions and more lately as a result of privatisation of the operating, generating and distribution businesses are discussed. The responsibility of managers retaining the services of design engineers has changed. There is an added responsibility of contract administration and an increased focus on intellectual property and strategic issues. The way in which the sectors are adapting is discussed and future directions are explored. We welcome this opportunity to explore the changes in professional life which have taken place over the last five years in the Latrobe Valley Power industry. Engineers and earth scientists have a pivotal role in the continuing successful operation of the three Latrobe Valley Mines of the generation companies. The Mines' collectively excavate annually over 13 million cubic metres of overburden and 48 million tonnes of coal for delivery to mine-mouth power stations and for briquette manufacture.

Jan 1, 1997

By Simon Wright, Roland Heersink

In the past, the center of most companies' e-initiatives has been on reduction of indirect costs, such as selling and procurement. Recently, e-commerce has moved its attention from back-office functions into manufacturing, in order to significantly reduce direct operating costs. This paper describes many of the Web-Powered Manufacturing initiatives being employed across various industries, and relates them to similar opportunities being started within the mining and mineral-processing sector. The following opportunities are enabled by Web-Powered Manufacturing: • Collaboration with outside experts to extend their pool of resources • Management of remote and distributed operations • Tie-in of small operations to a larger operation • Monitoring a position in a JV operated by a partner • Managing a plant located in someone else's facility • Having a chemical supplier manage his inventory in a customer's tanks • Having an equipment supplier remotely troubleshoot his equipment installed in a customer's site • Having an additive supplier provide remote pro-active. guidance in optimization of a customer's operation • Having software suppliers take responsibility for the results of their applications • Outsourcing software and systems support by providing remote access Details of one of these opportunities are described in this article, and the benefits captured using this approach and the technologies necessary to make them a reality are emphasized.

Jan 1, 2002

By P Hanna

In an effort to improve returns to shareholders, the Australian Mining Industry has consolidated considerably over the past decade or so. Technical services at mines have been re-structured, whilst those at corporate offices have been all but eliminated. A recent study of the role of the geologist in BM Alliance Coal Operations Pty Ltd (BMA), showed the adverse impact on the companyÆs performance due to a lack of geologists. With an education campaign, to demonstrate the contribution of geologists to the æbottom lineÆ and in increasing the options available to the company, the value of the geology role became better understood. The implications of the loss of invaluable corporate knowledge, when long serving geologists left the company, also became clear. Steps have since been taken to increase the numbers of company geologists, particularly on mine sites. In common with other sectors of the mining industry, the Australian coal industry is experiencing a critical shortage of experienced coal geologists, as companies have found in recent recruitment efforts. This is further evidence that the recommendations from the recent study by World Competitive Practices, commissioned by The Australasian Institute of Mining and Metallurgy, æRising to the ChallengeÆ have not been adopted. People, and the mineral resource base, are the assets from which mining companies gain a sustainable competitive advantage. Geologists, as the nexus between the resource base and people, are in a unique position to enhance the profitability of their companies. To maximise their contribution to the industry, and ensure that they receive due recognition, geologists must adopt a more commercial approach in their work and take a front foot stance in promoting their value to management. Geology is a core competency for all mining companies. The tendency for companies to outsource this function, to the detriment of the company geologist role, is not sustainable in the longer term. TodayÆs geologists need to work closely with management, technical and human resource professionals, universities and schools to ensure their significant value is well understood, and that the industry can attract, train and retain new recruits through the implementation of graduate programs and company career paths.

Jan 1, 2003

By James R. Arnold, John O. Marsden

Introduction Metallurgical accounting practices have been revolutionized over the past 15 years by the introduction of low cost personal computers and easy- to-use spreadsheet software. The Chimney Creek metallurgical accounting system takes full advantage of these advances. Data is provided by a PLC-based process control system, IBM data logging, operator logsheets and assay results from an automatatic plant sampling system. The data is organized and stored in an IBM PS/2 system using Lotus 123 and customized accounting programs to provide a comprehensive information management system. Metallurgical accounting for gold plants should ideally provide information for the following: a) Gold production accounting b) Day-to-day process control and operation c) Metallurgical evaluation and process optimization The Chimney Creek system provides all of these while overcoming specific accounting problems presented by SAG milling a coarse feed, grinding in cyanide and dump leaching run-of-mine material. Process description Gold Fields' Chimney Creek mine is located 47 miles northeast of Winnemucca, Nevada, at the northern end of the Osgood Mountains. Ore is processed by a combination of dump leaching and milling processes. The dump leach operation treats approximately 2.0 million tons per year of low grade ore (0.030 oz/ton). Run-of-mine ore is top dumped in 40 foot high pads. The use of three solution ponds for leaching enables an intermediate solution to be recirculated to the leach pad to reduce the pregnant solution flowrate and increase gold tenor of solution to the carbon-in-column (CIC) recovery circuit. Gold recovery is approximately 65% by this method. The milling process employs a SAG mill-ball mill grinding circuit to treat 900,000 tons per year at an average grade of 0.19 oz/ton. The ore is crushed to minus 12" in a jaw crusher prior to feeding the SAG mill. Cyanide is added to the grinding circuit to start gold dissolution as early as possible. After grinding, leaching of the ore is continued in a unique two-stage counter current decantation circuit 1 with 12 hours of leaching between stages . 85% of the soluble gold is recovered from the first stage thickener overflow in carbon columns (CIC). The second stage underflow is treated in a scavenger carbon-in-pulp (CIP) plant. Ultimate gold recovery is over 95%. Loaded carbon from both the dump leaching and milling processes is pressure stripped by hot cyanide solution and gold is recovered from the resulting solution by zinc precipitation. The precipitate is retorted for mercury removal and smelted into bullion. The plant flowsheet appears in Figure 1. Data collection Data for daily metallurgical accounting is obtained from three sources: a) Plant sampling b) Process control system c) Operator logsheets All of the data collection for metallurgical accounting is based around the 12-hour shift operating schedule. Sampling All critical sampling for gold production accounting is performed by automatic samplers (Figure 2). Heath & Sherwood two-stage sampling systems are used for sampling all slurry streams (cyclone overflow, CIP feed and CIP tails). The automatic sampler consists of a pneumatically operated primary sample cutter and a continuous rotary secondary splitter. The cyclone overflow and CIP tails are the most critical samples since these are used to calculate gold into and out of the plant on a shiftly basis. The CIP feed sample gives additional information concerning intermediate dissolution and recovery

Jan 1, 1990

By H. W. Read

Sustained growth in demand for platinum group metals has resulted in an unfettered increase in new projects undertaken by the platinum producers. These projects are outsourced to various degrees. The argument of this paper is that both the client?s project manager and the consultant?s project manager are essential elements in the successful execution of a project. Their roles are not only different but also complementary, and are defined in the paper. Data gained from considerable experience in the South African corporate mining environment underpins the opinions expressed in the paper. Furthermore, an extensive literary search was undertaken to determine trends in related industries outside the South African context. Throughout the argument it is emphasized that project philosophy emanates from a systems view and must be treated as an overarching whole. The elements of project management become meaningless unless they are connected to one another and integrated into a cohesive unit. Advancing the knowledge field of project management is of critical importance to mining investors. There is no doubt that a key determinant of the sustainability of mining business is closely related to the efficiency of all-inclusive project management. From pre-investment and feasibility studies, implementation and execution, to ramping-up to full production, scientific project management has a critical role to play. Guidelines for the pursuance of this ideal are proposed. The introduction contextualizes the subject matter in an overview of the evolution of mine management in South Africa and abroad. Then, brief insight is given into the philosophy of project management. This exposition is confined to the predispositions, presuppositions and defining characteristics of project management. The core of the paper looks at the roles of the client?s project manager in relation to the consultant?s project manager. This section is underpinned by practical experience gained by the author on numerous mining projects. A view is taken of the future of project management in the mining industry. The conclusion summarizes the argument and aligns project management trends in the mining industry.

Jan 1, 2004

By Pavel Vasak

Microseismic monitoring is becoming standard practice in the Canadian mining industry, particularly as mines get deeper. Full-waveform microseismic systems allow the operator to distinguish the event source mechanism, e.g., blast, shear slip or stress-induced fracture. At mine sites that heave a microseismic system operator blasts are manually identified by comparing the event waveform traces to the morning blast logs. However, this procedure is not routinely done at sites where a system operator is not present and this can lead to misinterpretation of the data at a later stage, particularly where the interpretation is outsourced, often many years later. It is critical to improve the microseismic data quality and consistency for processing and interpretation with a reliable technique to filter out blasts and blast related seismicity. This paper presents the development and implementation of a simple blast identification and filtering routine. The routine was developed specifically for Vale?s Creighton Mine about a decade ago, but is made sufficiently general so that it can be used at any mine site with an ESG (Engineering Seismology Group Canada) based full-waveform microseismic systems. The routine is strictly a post-processing procedure developed for use with the Access database data structure used by ESG. The algorithm was tested at Creighton Mine and a success rate of 80 to 90% was achieved, when compared to manual blast picks.

Oct 1, 2010

By L. Marais, S. Denoon-Stevens, J. Cloete

"Historically, mining companies worldwide provided housing and developed towns to accommodate their employees. At the end of the 1980s this approach became less prevalent and attempts were made to mitigate the effects of mine development and mine closure on communities living near the mines. Permanent settlement in mining towns urgently needed to be minimized. Since the advent of democracy, South African policy has moved in the opposite direction, shifting the emphasis to creating integrated communities and encouraging home ownership. Despite this policy shift, however, mines continue to influence local housing conditions. One direct outcome has been the development of informal settlements. We surveyed 260 informal settlement households in Postmasburg, a small and remotely located town in the Northern Cape Province of South Africa. We found that because they employ contract workers and thus arouse expectations of employment, the mines here contribute extensively to the development of informal settlements. But local factors also contribute, and the functional role of informal settlements as a form of housing that supports mobility should not be underestimated. We also found that both municipal and mining company policies for informal settlements were inadequate. Finally, we found that low-income informal settlers not associated with mine employment suffered the highest levels of social disruption.IntroductionA mine generates demand for labour, which in turn generates demand for housing. When settlements spring up near a mine this often means poor housing conditions. In South Africa in the 1960s and 1970s mining companies invested heavily in company towns or mining settlements, but they have become increasingly hesitant to do so, for three reasons. First, declining resource prices in the mid-1980s and the 1990s compelled them to focus on core business interests and reduce the costs of peripheral activities such as housing (Bryceson and MacKinnon, 2013); second, at the turn of the 20th century they were often accused of taking over the role of local government (IIED, 2002) and consequently became hesitant to invest in developing mining towns; and third, changing labour regimes also curbed their investment in such towns (Haslam McKenzie, 2010). Increasingly, the companies began to endorse block-roster shifts, and outsourcing also became more common in the early 1990s. Block-roster shifts in Australia (together with improved technology) have meant that miners do not need to settle near the mines but can fly in and fly out and have their urban houses as their stable homes. This has had serious negative implications for housing in remote towns in Australia, particularly worker camps, large-scale renting out of available accommodation, and ‘hot-bedding’."

Oct 1, 2018

The world is getting flatter through internet, mobile phone technology, relatively low cost travel, massive outsourcing of manufacturing to China and the transfer of company backroom operations to India. In the iron and steel industry, however, things will remain relatively the same with slow gradual improvements in technology; only the geographic location of plants may change over time. Or will it? The blast furnace smelting process has remained largely unchanged since 1828 when James Neilson came up with the idea of preheated air being delivered to the tuyeres. Likewise, oxygen steelmaking that takes molten iron from such blast furnaces has remained conceptually unchanged since Sir Henry Bessemer invented an air-based system in 1856. These two processes are the core of integrated steel mills that we know today. Typically such mills consist of coke ovens, sinter plant, blast furnace, oxygen steelmaking, continuous caster, rolling mills and metal coating lines. In the intervening 150 years the only real disruptive technology to the integrated steel mill has been the minimill. Based on the use of the electric arc furnace (EAF), in conjunction with a continuous caster and rolling mill, the term minimill is used because steel products are produced at down to one-tenth the scale required for economic operation of an integrated mill, with the EAF producing molten steel using largely scrap steel as its feed, as against transforming coal to coke (coke ovens), iron ore, coke and limestone into molten iron (blast furnace) and molten iron to steel (oxygen steelmaking). There are, however, a number of technologies in development that may cause a paradigm shift in the way steel products are produced and perhaps push the evolution of the minimill as a disruptive technology. Two examples are direct iron smelting, where iron is produced in a matter of seconds by injection of ironmaking feed materials into a molten bath, and thin strip casting, where molten steel is cast into 2 mm strip or less, in similar time. Both have Australian connections. A leading iron smelting technology is the HIsmelt« process, which has its first commercial application at Kwinana, Western Australia, where a joint venture of international parties, consisting of Rio Tinto and the Nucor, Mitsubishi and Shougang corporations, are in the stage of ramping up commercial production. The leading strip casting technology is the Castrip« process that arose from development work done by then BHP Steel, with IHI of Japan, at Port Kembla, New South Wales in the 1990s. Nucor followed this work up, building the first commercial plant for the technology at its Crawfordsville site in Indiana in 2001 and has recently announced an intention to build a second plant in the USA. While both technologies are only into the early stages of commercialisation they are likely to change the face of iron and steelmaking as we know it over the next 20 years. This paper elaborates on the technology of the two processes, why they could change the face of the iron and steel industry forever, what might drive the rapid change and what the changes may look like.

Jan 1, 2006

I am honoured to be given the opportunity to share with you my thoughts on what will be the essential characteristics of æThe Mining Company for the 21st CenturyÆ. For me the 21st century is all about globalisation and the challenges and the opportunities that globalisation presents for the mining industry. To play on the global stage the successful mining companies must develop profiles that are global in: their operations diversity, their partnership relationships diversity, their customer relationships diversity, their workforce diversity, and their shareholder diversity. In my view æbigÆ will count in the 21st century, but big overlaid with quality: quality assets, quality people, quality partners, quality customer relationships, and quality image and reputation. Last year, Rio TintoÆs Leon Davis said when he addressed the Minerals Council of AustraliaÆs annual conference that Australian resource companies that wish to become global operators must develop an unequivocal international identity that will make that company a known and trusted quality wherever it seeks to do business. He went on to say that structuring and operating a business in a way that consistently manifests the qualities that inspire respect and evoke confidence is vital. I absolutely concur with what Leon said. Unfortunately, the fact is that, as we stand at the beginning of the 21st century, our industry and many of our companies are no better accepted by the world community than was the case five, ten, 15 or even 20 years ago. In fact, in some cases, the warmth of the acceptance may have subsided. To some extent the demonstrations that we saw recently in Seattle and Davos reflect a growing distrust, disquiet and cynicism in our communities. Here, however, I see an opportunity. While on the one hand the mood of disquiet presents many challenges, it also provides those of us who are willing to get out on the front foot in addressing the issues, and engaging in the dialogue, with a very significant opportunity to create a major competitive advantage. It provides the opportunity to earn respect and the opportunity to develop a reputation as a company that is sought as a joint venture partner and a company that is welcomed by governments and communities. Importantly, also, people will seek employment with such a company and will invest in such a company. The challenge is to change the way we behave and the way we are perceived by all the key stakeholders. Many of our industryÆs traditional skills are now commodities à many can be à and are out-sourced. The new critical skill for the 21st century à the real competitive advantage à will come from creating a real and genuine understanding of our role and what we stand for. Everything we do should demonstrate not only sound business principles, but also an understanding of the political, social, cultural and environmental impacts of our activities - at an international and a local level. This concept isnÆt new - but for large companies such as BHP, where we operate in more than 20 countries with diverse cultures, languages and religions - it requires enormous energy and dedication. It is complex. It is difficult. But I believe it is absolutely fundamental to our future.

Jan 1, 2000

By F F. Pitard

The optimisation of a metallurgical plant requires two kinds of sampling systems. The first provides samples to follow process changes, so in due time actions to maintain key parameters within pre-established specifications can be applied. The second provides composite samples at the end of a working shift to demonstrate that valuable constituents sent to the plant went to either a final concentrate or to the tailings in a logical, expected proportion. Contrary to what many experts may claim, these two kinds of sampling requirements are incompatible and cannot be fulfilled using the same sampling systems; this is because the required samples have completely different objectives. A process control sample is an instantaneous sample with increments taken at short intervals, and the objective is to know where the process is at any given time. Excellent accuracy is not a must, however good precision is recommended since a possible process correction may need to be made. Online analysers fed with in-stream stationary cutters or other kinds of in-stream or by-stream probes can do well for such a mission. A composite sample for metallurgical accounting with increments collected over a long period of time, for which excellent accuracy and good precision are both required, must be generated by sophisticated and extremely well-maintained cross-stream sampling stations. The use of process control sampling systems to achieve good metallurgical accounting has been promoted by several manufacturers of sampling equipment around the world; it is a grave mistake that is misleading top management and a practice that should be scrutinised and preferably eliminated. Furthermore, bias tests used to prove otherwise are often based on insufficient data to draw valid conclusions; a guideline is provided.CITATION:Pitard, F F, 2014. Sampling systems for process control and metallurgical accounting, in Proceedings Sampling 2014 , pp 25–32 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 29, 2014

By Agustín Chang Wong

"El presente trabajo señala la aplicación del Planeamiento Estratégico en la Sociedad Minera El Brocal como herramienta conductora empresarial que permite establecer correspondencia entre los problemas identificados y suscausas, los objetivos previstos para superarlos y los planes de acción que se organizan para alcanzar los resultados. El diagnóstico se realizó en el año 2000 y utilizó las siguientes estrategias: reestructuración organizacionalsistemas de gestión, outsourcing, alianza con proveedores y mejoramiento de procesos. De forma, que el mejoramiento sostenido de las operaciones se relaciona con el incremento de la productividad, rentabilidad de la empresa y reducción de costos. "

Jul 31, 2003

Coal exports are forecast to grow strongly, so that coal is likely to remain very important to Australia for the foreseeable future. However there is no sign that prices or profitability will rise of their own accord. Therefore the intense squeeze on costs will continue for the foreseeable future. This will mean lower manning, more outsourcing and probably an increasing rate of company attrition. As well, the political pressure from the greenhouse debate is only going to intensify and the pressure on the Federal Government after Kyoto is likely to be irresistible.

Jan 1, 1998

By R Grogan

Nautilus Minerals Inc is a sea floor resource exploration and development company focused on developing the Solwara 1 Project, a copper-gold sea floor massive sulfide deposit in the territorial waters of Papua New Guinea, for which it holds a mining lease and associated environment permit.Economies depend upon four key types of capital: built, natural, financial and human. Natural capital consists of the ‘minerals, energy, plants, animals, ecosystems (climatic processes, nutrient cycles and other natural structures and systems) found on Earth that provide a flow of natural goods and services’ (Daly and Farley, 2004). Many ecosystem goods such as fish, fruit and water are already valued and sold in markets; however, some ecosystem services are not amenable to markets and have remained unvalued in traditional accounting methods, even though they provide significant value (such as flood protection, climate stability etc; Batker and Schmidt, 2015).There are now economic methods available to quantify and value natural capital and many non-market ecosystem services. When valued in dollars, these services can be incorporated into a number of economic tools, including benefit-cost analysis, accounting, environmental impact statements, asset management plans and rate of return on investment calculations. Their inclusion ultimately strengthens decision-making. When natural capital assets and ecosystem services are not considered in economic analysis, they are effectively valued at zero. This omission can lead to poor decisions, inefficient capital investments, higher incurred costs and losses due to unexpected events (Batker and Schmidt, 2015).In 2015 Earth Economics was commissioned by Nautilus Minerals Inc to conduct an independent, objective environmental and social benchmarking analysis of the proposed deep seabed Solwara 1 mine with terrestrial copper mines (referred to as ‘the report’). The report represents the first ever natural capital accounting and ecosystem goods and services framework for seabed mining.The report compares the proposed Solwara 1 mine with three terrestrial mines: Bingham Canyon (Utah, USA), Prominent Hill (South Australia, Australia), and Intag (a proposed mine in Intag Province, Ecuador), and provides a natural capital accounting assessment for all four operations.CITATION:Grogan, R, 2016. Natural capital accounting – a sea floor mining application, in Proceedings Life-of-Mine 2016 Conference, pp 2–4 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 28, 2016