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The plant and processing site at Porgera has been built on a levelled mudstone ridge about lkm E of the mine. Excavation of 7xl06m3 of soil and rock was necessary to achieve the required area. The exposed mudstone belongs to the Chico Formation and is weak, sheared and readily breaks down by slaking upon exposure. Tectonic uplift and subsequent erosion have produced the present landscape of narrow bedrock ridges, with deep colluvium in the incised valleys. The deep excavation to a maximum of 60m, has rapidly unloaded the mudstone, and subsequent stress relief has caused rebound and dilation of the material. The processes of pore pressure equilibration, softening, progressive failure and loosening, combine to deteriorate the newly exposed rock mass. These processes are commonly associated with pre-existing shear surfaces, fissures and a

Jan 1, 1991

By S Hapugoda

Iron ore oxide and oxyhydroxide minerals such as haematite (eg various types of martite and microplaty haematite), different forms of goethite, magnetite, hydrohaematite and kenomagnetite were analysed using optical microscopy, scanning electron microscopy (SEM) and electron probe microanalysis (EPMA) techniques, to determine the type and proportion of deleterious elements present and the chemistry of associated gangue minerals. The aim was to characterise elements potentially deleterious for agglomeration and steelmaking, eg sulfur, phosphorus, aluminium and silicon and correlate their distribution with mineral texture and association, to provide feedback on downstream processing performance and product quality.Examples of characteristic mineral associations are shown from various genetic styles of iron ores, including magnetite banded iron formation (BIF), BIF-derived martite-goethite and skarn-type magnetite ores.A number of examples are presented demonstrating the benefits of the use of combined techniques of reflected optical microscopy, SEM and EPMA data to reliably identify ore and gangue minerals and their associations in different types of iron ores.

Jul 11, 2011

BHP BillitonÆs Yandi channel iron deposit has a large resource of approximately 1.3 billion tonnes. This is a bulk mining operation with a high degree of selectivity not being practical. In contrast the deposit geology is a complex interrelationship of primary channel facies, secondary enrichment of iron and a secondary redistribution of the major contaminants. These variations in geology and alteration can occur over ranges of hundreds of metres down to knife edge contacts. In addition, differences in primary facies and mobility during alteration often result in the iron and contaminants having different patterns of enrichment and depletion. Despite the scale of these operations, if the geological domaining is not optimal, significant errors in the resource estimate of grades and tonnage will occur. Getting the geology right has become a common clichT among mining professionals. However, in many situations, obtaining optimal geological domains for resource modelling is best achieved when there is input from geology, statistics and geostatistics. In this paper, moving window statistics are utilised to see through locally high variability to identify trends that assist in locating difficult to identify geological boundaries. After the creation of geological domains, univariate and multivariate statistics and principal component analysis assist in validating and characterising geological domains. Finally, variography and domain contact analysis are used to analyse the nature of the boundaries between geological domains. At the Yandi channel iron deposit, the inter-relationship between geological and geostatistical analysis has resulted in significant improvements to geological domaining and the treatment of domain boundaries during estimation of iron and contaminates.

Jan 1, 2005

By K Guilfoyle, A Robertson

In the mid-1970s, trucking ore from 400 m depth to the surface was perceived to be the practical and economic limit for metalliferous underground mines. Improvements in truck design and decline development resulted in the economic depth of haul exceeding 600 m by the mid-1990s. Today, mine operators and contractors are planning to use trucks for ore haulage from depths in excess of 1000 m. The authors of this paper estimate that there are in excess of 300 diesel-powered trucks operating in mines in Australia, and that by the year 2005 more than five per cent of these trucks will be æroad trainsÆ (ie trucks towing powered trailers or truck-trailer combinations). This paper examines the road train concept, presents cost and performance data and describes the advantages and disadvantages of the road train system as well as proposing the types of applications for use of road trains in Australian metalliferous underground mines. Truck performance is based on payload and average speed (expressed as tonnes x kilometres per engine hour (t km/h)). A road train with a powered trailer has a large payload capacity and two engines to provide a high ratio of power to gross weight. Thus it is possible to exceed 300 t km/h per cycle for an average haulage gradient of 1:9 compared to 250 t km/h for conventional articulated dump trucks (ADTs). It is likely that road trains in excess of 100 t capacity will have application for level ore haulage at large mines in Australia.

Jan 1, 2002

By X Z. Sun, N Jiang, J H. Zhao, C X. Wang, L Y. Bai

In backfill grouting for underground coalmines, the filling materials strengthen the caving rock and support the overlying strata to reduce surface subsidence. The broken roof strata fail and collapse during mining operations without appropriate supporting measures being taken. It is difficult to perform continuous backfill mining on the working face of such roofs using the existing mining technology. Therefore, in order to solve the above problems, fly ash and mine water are considered as filling materials, and flow characteristics of fly-ash slurry are investigated through laboratory experiments and theoretical analyses. Laws governing the diffusion of fly-ash slurry in the void of caving rock masses and in the void between a caving rock mass and a basic roof are obtained and verified. Based on the results obtained from the above analyses and field conditions at the Zhaoguan coalmine, Shandong Province, China, a cave backfill grouting system of the hauling pipeline is developed and successfully tested at the 1703 working face. The results demonstrate that a filling rate of 43.46 per cent is achieved, and the surface subsidence coefficient of the grouting process is found to be 0.475. Compared to the total caving method, the proposed system is found to achieve a reduction rate of 40.63 per cent. This effectively helps in lowering the value of the surface subsidence coefficient. Fly ash and mine water, considered as primary materials in this study, also play a significant role in improving the air quality and water environment.

Nov 29, 2022

The Australasian Institute of Mining and Metallurgy (AusIMM) is a professional society for all those associated with the activities of the mineral industry. Differences of opinion exist within the membership of the AusIMM on the role it should play in the future as a professional society in a changing industry and world environment. This same dilemma is concerning other professional societies of which the author is a member. Some of the activities and priorities of the AusIMM are reviewed in order to clarify a frequently expressed opinion that it identifies with and supports industry at the expense of representing the interests of its individual members. By definition and by action this is certainly not the case and it is concluded that all activities whether seen to be industry or member orientated serve to benefit both. The AusIMM plays a most important role in integrating and promoting the interests of all sections of the mineral industry whether corporate or individual and the Presidential activities in education this year provide an excellent example of this.

Jan 1, 1997

By J Player, R de Vries, E Villaescusa, R Hassell

Concerns regarding the uncertainty of stope dilution at MMG Dugald River Underground Mine led to a trial stoping program to acquire full-scale comprehensive geotechnical information and to test the validity of the geotechnical and mining parameters. Given that stope production drilling and blasting is a key parameter that influences dilution a detailed stope blast vibration project was implemented. The stoping trial consisted of 19 stopes, a combination of both sublevel open stoping and longitudinal and transverse stopes, of which five were monitored for blast vibrations.The blast vibration project utilised 20 triaxial geophones and five triaxial accelerometers installed in the hanging wall of five monitored stopes. For each stope fired, full blast waveforms were recorded along with detailed information of the blast design. Analysis of the blast vibrations used the Holmberg-Persson approach, with potential damage determined by the relative (Holmberg-Persson) K values.The project identified the benefit of parallel, breakthrough slot holes in reducing blast vibration damage. The results show that radial rings toeing or stabbing into the stope wall lead to higher vibrational energy yield which contributed to increased overbreak. Hanging wall overbreak, by comparison, with parallel, breakthrough blastholes with 1 m standoff, combined with lower density explosive charging (0.8 EP) and increased delays limited blast vibration damage. A number of ring burdens from 1.4 m to 2.5 m were monitored with no difference in terms of energy yield being identified. Changes to the stope drill and blast design are suggested to better control the large blast vibrations and recommendations from this project have been implemented into future mine design and planning.CITATION:Hassell, R, Villaescusa, E, de Vries, R and Player, J, 2015. Stope blast vibration analysis at Dugald River Underground Mine, in Proceedings 11th International Symposium on Rock Fragmentation by Blasting, pp 221–232 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 24, 2015

By T Wambeke, J Benndorf

A risk-robust development of a heavy mineral resource requires an assessment of the geological uncertainty and spatial variability of the key factors impacting the mining and processing operation. Attributes of interest are the total heavy mineral grade, the slime content and the amount of oversized particles. The modelling of a mineral sand deposit presents two main challenges. Firstly, the exact location of the geological boundaries are obscure due to the complex interaction of the deposit formation processes. Secondly, the properties of interest exhibit a rather complex transitional behaviour across the so-called soft boundaries. Traditionally, the modelling exercise is restricted to a consecutive stochastic simulation of distinct geological facies and orebody properties. This results in different zones separated by hard boundaries, ignoring the typical transitional behaviour.This contribution presents an alternative approach which models the entire sand body as a single domain while accounting for the complex trends present. Error curves are used to infer covariance model parameters without the need of a prior removal of the trend. The principle is based on minimising the differences between empirical and theoretical errors resulting from two methods of prediction calculated for different rings of influence. The added value results from the unambiguous decomposition of the spatial variation into a deterministic trend and a stochastic residual. The trend model neither overfits nor underfits the data. The calculated residuals are thus unbiased and the uncertainty can be correctly assessed.The effort results in a characterisation of the resource uncertainty which provides a more realistic image of the spatial variability of the key properties in and across the geological domains of an existing heavy mineral sand deposit.CITATION:Wambeke, T and Benndorf, J, 2014. Optimal inference of modelling parameters to simulate complex trends across soft boundaries – a case study in heavy mineral sands, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014 , pp 73–84 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014

Stope back conditions in the cut-and-fill stopes at New Broken Hill Consolidated Limited often deteriorate to such an extent that, because conventional rockbolts are not able to maintain safe working conditions, square-set timber is installed. An attempt to eliminate this costly procedure has involved the use of long grouted rockbolts using high tensile prestressing wire. These bolts were developed in conjunction with the prestressing engineers of BBR (Aust.). This form of support has improved the back conditions, maintained safe working conditions, and delayed the introduction of timber in a number of stopes.Production from these stopes has been maintained at its previous level (at a rate approximately double that of a comparable timber stope).

Jan 1, 1974

By Regan R

Appin Colliery mines the Bulli Seam with a gas composition of 98.5% methane and 1.5% carbon dioxide. Relaxation of the strata generally occurs to below the base of the Wongawilli Seam, some 40 m below the Bulli Seam, and approxim- ately 125 m above the Bulli Seam, for longwall face widths of 135 m or more. Previous exper- ience showed that when longwall faces were mined for a distance approximately equal to the face width, the mine ventilation could not provide sufficient dilution due to methane emissions from the underlying measures. Postdraining downholes were drilled to intersect the Wongawilli Seam below the operat- ng longwall. These holes were connected to an underground to surface gas range and various suction levels were applied to improve gas drainage. The resulting gas flow rates and purity from all the downholes were regularly monitored and peak flows in some holes exceeded 160 1/sec. The surface plant drained almost 20 million m3 of gas for the period July 1981 to January 1982 at an average methane purity of approximately 70%. Distinct patterns emerged for different downholes from curves illustrat- ing their variations in flow rate with distance subsequent to passage of the longwall face. The difference between free flow characteristics and those obtained with the application of

Jan 1, 1982

By James CH

For drainage sediment to be used as a successful sampling medium in reconnaissance geochemical surveys, the length of any dispersion train from a typical target must be great enough for it to be detected by a widely spaced sampling pattern, and must also be homogeneous enough to avoid it being missed by the unfortunate selection of a random low value sample. Elements which occur in stream sediments in the form of discrete heavy minerals present two special problems in this regard. Since the element is concentrated into a few particles, the medium is extremely heterogeneous, which makes representative sampling impossible unless very large samples are taken, while the high specific gravity of such grains leads to their being concentrated in traps along the stream bed. Several ways of overcoming these difficulties have been suggested. Among these the "schlich" test, in which heavy material obtained by panning is taken for analysis is among the most popular. However, the results of the present study indicate that while this method improves the nature of the patterns obtained, they are still far from satisfactory. Alternative methods of sample preparation, including the taking of light material for analysis, appear to provide better answers to the problem. In the area studied this approach eliminated most of the "noise" associated with the data obtained by other methods, as well as giving an extended dispersion pattern.

Jan 1, 1986

By D Matthews

Increases in mining and production capacities can have a major impact on the productivity of a mining and production facility during the construction and commissioning period. With minimised production loss in mind, a multi-phase modular plant design was implemented on the Khumani Mine in the Northern Cape, South Africa. The first phase involved a run-of-mine (ROM) crushing facility and the subsequent modular processing facility with capacity for 8.4 million tons per annum (Mt/a) product. An interim phase comprising modular additions to the processing facility increased capacity to 10 Mt/a product, with tie-ins occurring during maintenance periods. The second phase involves a second ROM crushing facility and modular additions to the processing facility, increasing capacity to 16 Mt/a product. This paper outlines the design considerations and limitations with modular design that need to be considered and shows how effectively construction and commissioning were implemented within shut-down and maintenance periods.

Jul 11, 2011

By A Galli

Traditionally pit optimisation and scheduling is carried out assuming that the resources, the commodity prices and production costs are all known. Once the pit contour and the mining schedule have been determined, geostatistical simulations can be used to assess the impact of the uncertainty in the resources on the pit design and the schedule, and likewise stochastic simulations can be used to test its robustness to fluctuations in costs and prices. But it would be more interesting to have a dynamic procedure for optimising the pit as the resources become better known and as economic factors such as commodity prices and costs evolve over time. This paper presents a novel approach for doing this. Rather than working with millions of small selective mining units, it was decided to work with large blocks, called macro-blocks. Mining sequences are defined as the quantities to be extracted from each macro-block in each time period. Feasible mining sequences are mining sequences that respect the accessibility constraints, and also the geometric constraints on the amounts that can be extracted from any one block over time, or from all the active blocks at a given time. Having defined feasible mining sequences, their mathematical properties were studied. It was found that natural breakpoints occur in the sequences when one set of blocks have been completely mined out, thereby opening up access to others. It was discovered that families of sequences exist, and that they are convex and closed under certain types of row permutation operations. Convexity is an advantage when optimising. The closure property opens up the possibility of mixing and matching subsequences of rows in the sequences. Another interesting property is that the sequences form branching families, rather like the binomial and trinomial trees used to model prices in finance and in real options.It is easy to generate large numbers of feasible mining sequences randomly. A two-step procedure is used to find the best one (or the best few) using three economic criteria: expected NPV,the probability of a negative NPV, and the percentage of years when the cash flow is negative. The procedure was tested on a synthetic gold mine based on the characteristics of the Essakane mine in Burkina Faso. The results were encouraging.

Sep 26, 2011

By D Wiseman, R Dunne

Flash flotation is a process that is included in many new mineral processing plants as part of the grinding circuit. Some of the valuable minerals can often be liberated at coarse sizes and will remain in the recirculating loads of the mill until they are reground small enough to report to the cyclone overflow. In addition, minerals of high density report to the cyclone underflow despite being fine in size. This can lead to overgrinding and makes the recovery of valuable fines by flotation difficult. Flash flotation is used to remove the readily floated coarse particles as early as possible and can therefore prevent overgrinding. It thus has the added potential to improve materials handling of the concentrates in such processes as filtration. The merits of including flash flotation within an integrated comminution-conventional flotation circuit is not easy to determine experimentally. Simple batch flotation tests are unable to provide any measure of the possible or probable improvements that are likely to occur from this circuit configuration. As a consequence expensive pilot plant programs are resorted to, to provide the information that will justify the inclusion of flash flotation into a comminution-flotation circuit. Those who have been involved in such pilot plant programs will know of the difficulty in stabilising the circuit as well as selecting the appropriate operating parameters (eg amount of concentrate to be removed in both the flash flotation and conventional flotation circuits). The interactive nature of this circuit (grinding, classification and flotation) is the root cause of these difficulties. Computer simulation, based on information derived from laboratory batch test work or plant and laboratory data, offers an alternative means by which an initial assessment of the merits of a flash flotation circuit can be determined. It can also provide the basis and focus for pilot plant testwork. Recently MacKinnon, Yan and Dunne (2003) developed a model that allows the performance of a flash flotation to be obtained within a closed circuit grinding operation. This paper provides details of an extension of this model to incorporate the interaction of flash flotation on the downstream conventional flotation circuit and allows æwhat ifÆ scenarios to be explored. Details of the laboratory batch test work methodology and the pertinent data derived from these tests that are used in the models and simulation are provided.

Jan 1, 2005

By J Player

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

Jan 1, 2000

By T Roache, K Yang, M Quigley, C Young

In late 2004 a large-scale evaluation of a new suite of tools for semi-automated core logging was carried out in the Eastern Goldfields of Western Australia. Known as HyLoggingÖ Systems, these combine rapid hyperspectral mapping of mineralogy and very high resolution digital imaging of cores and chips in their original containers. The resulting data is very information-rich and provides information about host rock, alteration and regolith mineralogy. This, in turn, can be used to test geological models about fluid/rock interactions, ore system architecture, ore feed characterisation and generally improve the objectivity of the normally manual and variable logging process. Results were obtained from the Kanowna Belle and St Ives gold deposits in the Kalgoorlie region, as well as numerous holes from across Western Australia stored in the Kalgoorlie Core Library. At the Kanowna Belle gold deposit critical spatial trends in the proportions of white mica, the chemistry and species of those micas, the presence of selected carbonate species and the absence of chlorite proximal to ore zones have all contributed to improved ore deposit understanding. Significantly many of these trends are not discernible to the naked eye, nor easily quantified, previously, across many thousands of metres of core from separate drill holes. At St Ives, the HyLoggerÖ was able to show that low-Al (phengite) and high-Al (paragonite to muscovite) white micas are spatially associated with D3 foliation zones that are proximal and distal to Au mineralisation, respectively. D3 foliation zones are also associated with the depletion of metamorphic chlorite and amphibole, and their replacement with biotite, relative to unaltered mafic host-rocks. The HyLogged GSWA drill holes yielded mineralogical characterisation of classic deposits, including Kambalda (Ni), Fimiston (Au), Teutonic Bore (Cu, Zn, Ag), Black Swan (Ni) and Hannans (Au), illustrating a wide variety of mineralogical trends due to both host lithologies, previously unrecorded lithological subdivisions, and alteration patterns. During 2005 a unique thermal infrared HyLogger was developed to map the important remaining silicates, such as feldspars, quartz, olivines, pyroxenes and garnets. This was successfully tested on a 9000 m subset of the same cores as the earlier study. Interpretation has focused, in particular, on silicification, albitisation, and the mineralogy of several high-grade, less hydrous deposits.

Jan 1, 2006

By M Lentz

This paper will discuss the issues associated with blasting in an urban mining environment that have been addressed by Winstone Aggregates at the Mt Wellington Quarry. These issues include - control of vibration and air overpressure, repeatability of shot performance, fragmentation on an extremely low maximum instantaneous charge, compliance with Territorial Authority regulations and perception. Over the last two years, in order to address these issues, Winstone Aggregates have undertaken a programme of continuous improvement, which has included; ò implementation of new technology; ò revising site procedures; ò conducting an investigation into the structural response of local buildings; ò investigating safe extrapolation; ò extensive public consultation; ò establishing credibility during the consent process; ò identification of perception issues; and ò building relationships and trust with neighbours. The issues addressed at the Mt Wellington Quarry have increasing significance for traditionally rural mining operations, as the input of the local community being urban or rural, increases. New and existing operations have the potential to adopt best practice now, building trust with the community and raising the profile of the industry.  

Jan 1, 1999

By J Barnes

During September 2000, Nabalco management identified the need for a corporate system to deliver its key performance indicators (KPIs). In June 2001, a need was also identified to replace the existing metallurgical accounting system. After a review of the technologies available, the decision was made to develop the systems in-house, in preference to purchasing commercial software packages. This would allow much greater control over the structure, and provide for an iterative, concurrent development process between software and key business developers. This has proven invaluable in the development process. The purpose of the KPI system is to provide a unified reporting tool for all performance indicators. These indicators include production, safety, health and environment, personnel, costs, continuous improvement initiatives and opportunity losses. All of these disparate measurements are brought together into the KPI system and used to determine the performance for each department or area. The general principles of the balanced scorecard business approach (Kaplan and Norton, 1996) are applied to achieve a performance measurement for each area within Nabalco. The new metallurgical accounting system (MA) is a SQLServer database with web page and Excel interfaces. The database is structured around daily inputs of all measurements and calculations. The data is stored and adjustments and reconciliations can be made to this data as required. The focus is on accounting rigour, with all adjustments recorded in the database to allow for full auditing. The structure of the data focuses on the five input/output streams (bauxite in, caustic soda in, fuel oil in, residue out, and alumina out). In-circuit inventory provides a secondary measurement on which to check and calibrate the MA system. The KPI and MA systems were developed using Web technologies and are available to any internet-enabled device with Internet Explorer installed. This removes the need for software rollouts and user training. This will promote the wide use of the systems throughout Nabalco and Alcan.

Jan 1, 2002

By Harris J. W

Mr. Gillie and Mr. Harris have given us a wealth of information and food for thought on the vital subject of information and food fo rthought on the vital subject of reducing costs and mention considerable saving in some of the larger items. There are a number of points on which I would like further information, but I will confine my remarks to a relatively small saving which is of particular interest in view of another paper to be presented this afternoon.Mention is made of a 50 per cent reduction in the amount of zinc used in the precipitation of gold slime from the pregnant solution. Would Mr. Harris enlarge on the methods by which they obtained this reduction; and could he give an actual figure of zinc consumption either by ton of ore treated or per ounce of bullion recovered.AuthorsWe consider the reduction of zinc is due to improved clarification of the pregnant solutions. The sand clarifiers used prior to the installation of the 50 ft. -thickener were not satisfactory due mainly to the blending of the hessian and matting under the sand. Under these conditions the leaf clarifiers were fed with overflow solution from the clarifiers and were overloaded in consequence. The addition of Calgon has also been beneficial.The present consumption of zinc per ton of solution treated is 088 lb. per ton.A. L. "Keats (No,rth Broken Hill Limited)In the operation of milling equipment there is a progressive increase in maintenance expenditure during the life of a machine, so that when comparing the cost of operating old equipment with the cost of operating new equip...

Jan 1, 1956

By I Haine, J Penm, T Waring

During 1999 there was a considerable turnaround in world prices for most minerals and energy commodities, except for the bulk commodities (coal and iron ore). The main reasons for this turnaround were: improved prospects in demand for most minerals and energy commodities in the Asian region following a return to both economic and industrial production growth in key economies in that region; continued moderate growth in demand in Europe and North America; substantial production cutbacks in a range of minerals and energy industries; effective reductions in the supply of oil by OPEC nations; and an announcement by European central banks that they would cap the amount of gold they sell and loan in the next five years. Most of these influences are expected to be sustained into the first years of the new millennium. In 2000, with exception of coal, average world prices of minerals and metals are forecast to rise significantly. Gross domestic product and industrial production is expected to grow in some European countries and most Asian countries in 2000 and, with moderate growth expected to be sustained in the United States, demand for minerals and energy is expected to increase. AustraliaÆs main bulk commodities, iron ore and coal, saw prices set for 1999 - 2000 at substantially lower levels in negotiations in early-1999. Double digit price cuts were locked in. However, similar falls appear to have been avoided for coal in Japanese Fiscal Year 2001, while increases of between four and six per cent were achieved for iron ore. Forecast modest recovery in economic growth in Japan and increasing demand elsewhere in Asia are expected to lead to tighter market conditions in 2000. Beyond 2000, world minerals and energy markets will be influenced by the expected robust global supply responses of minerals and energy companies, against a background of sustained economic growth and industrial production growth in major consuming countries. Over the medium-term, a return to declining real prices which have been evident for most commodities in the recent past, is expected as exploration, mining and processing technological change and associated productivity growth continues to reduce industry costs. While lower rates of exploration and mining investment in Australia between 1998 and 2000 will modestly constrain the rate of future industry expansion, Australia remains an important contributor to expected growth in global minerals supply over the medium-term. Australian mine production is forecast to grow between 1999 - 2000 and 2004 - 05, boosted by production from recently commissioned mines and minerals processing facilities and comissioning of other projects at advanced stages of planning.

Jan 1, 2000