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By Penny T. G

BHP Diamonds and their joint-venture participants DiaMet Minerals, Chuck Fipke and Stewart Blusson are currently developing Canada's first commercial diamond mine in the arctic barren lands of the Northwest Territories (NWT) of Canada. The paper reviews the early history of the project leading up to the discovery of the first kimberlite pipe in September 1991, diamond exploration techniques and the subsequent advanced exploration and development work carried out at the site. In many aspects, this exploration work represented a development project in itself. Coinciding with the advanced exploration work, the project team prepared an Environmental Impact Statement (EIS) and went through federal review of the project at the highest level. External affairs strategies regarding the federal review and aboriginal land claim issues were crucial components to the approval process. Upon approval in principle by the

Jan 1, 1997

The perennial challenge facing mining and minerals operators is to improve productivity, usually by a combination of cost reduction and performance improvement. In a typical production situation involving mining and processing activities, the standard approach has long been to seek improvements in each activity, effectively in isolation from each other. However, the realisation is growing that there is considerable potential to achieve really substantial productivity gains by much improved integration of mining and processing with the key being to consider what is best in the total sense. Some of the linkages between fragmentation in mining and downstream processing are considered in this paper. These linkages involve technical, operational and economic Considerations.

Jan 1, 1997

Resource rent tax is a form of taxation or royalty, which only become effective at such a time as a pre-determined rate of return has been achieved by an operation. The offshore petroleum industry in Australia is already subject to RRT as is the Roxby Downs (Olympic Dam) Mine in South Australia. Both the mining and petroleum taxation regimes in Papua New Guinea include a resource rent tax component called Additional Profits Tax (APT). The implications of the current form of Additional Profits Tax for shareholder cash returns are that the tax burden on the operation may suddenly increase at some stage in the life of the mine, if and when the threshold level of profitability for the tax to be triggered is exceeded. From that point in time onwards the cash return to the shareholders on the capital invested is greatly diminished. For mining companies in Papua New Guinea, the effective tax rate increases from 35% to 57.75% as a result of the onset of Additional Profits Tax. This tax rate penalty is so severe that there appears to be merit in considering the concept of managing profitability through time rather than purely maximising annual pre-tax profits as is currently the case in most mining operations. This would have the benefit of deferring or perhaps preventing altogether the onset of the tax. One possible method for the effective management of profitability is through the control of average mining grade by cutoff grade manipulation. Traditional cutoff grade theory has usually considered taxation as a direct cost at a fixed or variable percentage of annual profits. As a result of this most analyses are conducted on a pre-tax basis. If tax is included in analyses it is usually present as a time independent function of gross profit. Additional Profits Tax is both time and rate of return dependent and therefore not adequately accommodated by currently accepted cutoff grade theory. A review has been made of the effects of resource rent taxes on both the investment decision-making process as well as possible development and mining strategies which may be employed by mining companies faced with Additional Profits Tax. The review includes examples based on the structure of Additional Profits Tax which is levied in Papua New Guinea.

Jan 1, 1997

By Haslam C. O, Los V. L, Abramson G. J

The technology applied by lonex Pty Ltd provides an important breakthrough in geochemical exploration, enabling the discovery of concealed mineral deposits to great depths below surface. Most mineral discoveries have been made in areas of outcrop or relatively shallow cover; deposits at greater depth have been beyond the range of conventional geophysical and geochemical methods. Quite apart from the need to explore to greater depths in regions of major current or past production, most continents have vast areas where prospective host rocks are concealed by more recent material. There are numerous case studies where Ionex methods have located deeply-buried metal deposits, up to 500 m below surface, beneath thick younger sedimentary, volcanic, or transported cover. Research leading to the development of this technology was initiated by Dr I S Goldberg at the Rudgeofizika Institute in St Petersburg (CIS), and the methods have been employed there - and in other countries - for many years. Ionex technology became available in Australia in 1993. It comprises: ò geochemical and geoelectrochemical sampling and ultra-high-sensitivity analysis for mobile and weakly-bonded elements (I S Goldberg); ò the delineation and interpretation of regional zones of enrichment and depletion of the prime elements within geoelectrochemical systems (GES) (I S Goldberg); ò the investigation and interpretation of the three-dimensional geochemical zoning within geochemical anomalies (G J Abramson); and ò multi-variate computer modelling of the geochemical fields and systems (V L Los). lonex technology has been adapted to the environmental conditions in Australia with the participation of C 0 Haslam.

Jan 1, 1997

The most critical step in the development of any mining project is the completion of a feasibility study. The feasibility study has one primary goal; to demonstrate that the project is economically viable if it is designed, constructed and operated in accordance with the concepts set forth in the study. Starting from a mineral resource data base, the feasibility study will define the ore reserves, the mining methods, the mineral processing concepts and the scale of the project. The disciplined activity of developing a feasibility study leads the proponent to examine every aspect of the project, many of which might otherwise be ignored. All technical concepts will be established and the corporate philosophy with respect to organisational structure, social and environmental responsibility, infrastructure contributions and financing will be determined. All the major decisions about how the project will be developed are made during the feasibility study. The success of the project will then depend upon the assumptions and decisions in the feasibility study and the ability and empowerment of the development team.

Jan 1, 1997

Industrial Minerals production in New Zealand is limited in both quantity and range, but imported in quantities that make New Zealand the world's biggest consumer per head of population. The use of industrial minerals is assured as both population and standard of living increase regularly. But to develop these minerals in the New Zealand environment requires the mineral, or its market (both local and export), to have characteristics that negate the remote geographical location. Volume and/or uniqueness can achieve this.

Jan 1, 1997

By P R. L Browne

Study of geothermal systems in the Taupo Volcanic Zone (TVZ) has significantly advanced our understanding of the processes of epithermal mineralisation. The three main lessons learnt are: 1. knowledge of their chemical anatomy; 2. precious metal transport and deposition; and 3. hydrothermal alteration zoning. These are described in the context of ore formation and exploration.

Jan 1, 1997

By C E. J de Ronde, J G. Scott

Economic gold mineralisation was discovered at Round Hill by Homestake NZ Limited in 1984 and was subsequently put into production by Macraes Mining Company Limited (MMCL) in 1990. The total mineral resource in 1990 was estimated at 41.4 Mt @ 1.42 glt at a 0.7g/t cut off, for 1.8 Moz of gold. Since project start up the mill has been upgraded twice to increase throughput and reached its current capacity of 3.2 Mtpa. At 31 December 1996, a total of 16.2 Mt of ore at average grade of 1.73 g/t has been excavated, yielding 655,000 oz of gold. MMCL began exploration along the Hyde Macraes Shear Zone in 1994. Since 1994, exploration has been successful with the discovery of over 3.5 Moz of gold. The resource now stands at 110 Mt @ 1.46 g/t gold for 5.1 Moz. This success has led to a planned expansion of the processing capacity to 9 Mtpa with the building of a new 6 Mtpa processing plant.

Jan 1, 1997

By Thomas R

The successful `marriage' between a company seeking to raise funds to develop a project and their financiers calls for a strong mutual understanding of each other's needs. For a company attempting to raise funding, the alternative methods are ever expanding. The optimum method will vary depending on the financial position, risk/reward outlook of the company and the strength of the project for which development capital is being sought. It is likely that small mining companies will need to raise equity funds for advancing projects to the development stage. At that time, they will probably still require a reasonable level of shareholder equity to meet the requirements of banks and other parties to cover potential cost over-runs on the project and feasibility costs. Larger companies, however, are likely to find it much easier and cheaper to raise debt from banks. When evaluating companies and projects for funding, banks will pay particular attention to the quality and experience of management in developing similar projects and it may be necessary for some companies to retain the services of outside consultants. Before a project needs funding, companies should meet with potential financiers to develop relationships to select and ensure a smooth transaction to funding in the future.

Jan 1, 1997

Best practice in environmental performance is a principle now increasingly and rapidly transferred around the globe. This matches both the greater rigour of environmental standards and the growing uniformity and `internationalisation' of standards for environmental management. There is no difference in the application of Normandy's environmental policy anywhere in the world.Normandy Mining is developing an Environmental Management System (EMS) which will satisfy:ò the need for technical excellence and best practice;ò the need to demonstrate `due diligence' in any jurisdiction;ò the need for financial statements and for insurance to reflect real world requirements for management of risk and liability.

Jan 1, 1997

By Gang C, Changyi S, Liangde G

Geophysical and geochemical methods and techniques for gold exploration and their applications in China are summarised in the paper. Some case histories are also presented. The effect of prospecting for gold deposits using these methods is well illustrated through these examples.

Jan 1, 1997

The Highlands Region of Papua New Guinea has 3 major national highways. The locations of these national highways are shown in Figure 1. The Highlands Highway begins at Lae City on the coast and passes through the Highlands towns of Goroka, Kundiawa and Mt Hagen. It terminates at Togoba approximately 10km out of Mt Hagen town. The Enga Highway begins at Togoba and passes through the towns of Wapenamanda, Wabag and Laiagam. It terminates at the giant Porgera Gold Mine. The Southern Highlands Highway also begins at Togoba and passes through the major towns of Mendi, and Tari. It terminates at Koroba station, near the Hides Gas Field. Two separate Feeder roads intersecting the main highway service both the Kutubu Oil Project and the Hides Gas Field. These national Highways play a very important role in the development of Papua New Guinea. Goods and services are delivered to the bulk of the population of the Highlands Region using these highways. Heavy machinery and equipment for the mining and petroleum projects of Porgera, Hides and Kutubu are transported using these roads.

Jan 1, 1997

Modem mineral exploration and development takes place within a data-rich context underpinned by a wide range of data acquisition, processing and interpretation technologies. This leads to requirements for consistent and explicit methods by which the relative risks - or success probabilities - of exploration programs can be assessed and communicated. Bayesian risk assessment methods are outlined which provide a starting point for this more rigorous approach to exploration investment.   Effective governance of information technologies becomes a core function of the modem competitive Board. As such it becomes a component of any business audit and any assessment of the quality and success potential of a company. Limited data however suggest that the average Board may be under-represented in this increasingly critical skill area.

Jan 1, 1997

By Johnson N. W, Munro P. D, Pease J. D

The Lead/Zinc Concentrator of Mount Isa Mines Limited processes complex fine grained ore from the Isa and Hilton silver-lead-zinc orebodies, producing lead concentrate, zinc concentrate and (until 1996) a low-grade middlings (LGM or bulk) conc

Jan 1, 1997

Currently, mining in Australia underpins the economic vitality of the nation, generating massive revenue from commodity exports and providing substantial infrastructure and employment. In addition, it is predicted that mining related services will in the future develop a global market of their own that could eventually grow to rival, in value, the export trade in mineral commodities. There is however little room for complacency. In the short- to medium-term, escalating, vigorous competition can be expected from many previously underdeveloped countries that are reforming their own mining and mineral export industries. In addition, most mining companies are facing a modem-day renaissance in terms of new expectations, changing social norms, evolving employee relations and statutory obligations. Thus, along with whatever promise the future might hold, the mining industry is currently being subjected to a growing number of largely unprecedented problems and pressures, both economic and social, that are both highly complex and demanding. In particular, it remains a matter of on-going concern that relations between mining companies and their employees still, in spite of recent reforms, continue to constrain productivity, perpetuate inefficiencies, affect quality of work life and retard progress towards mutually beneficial goals and achievements. If mining in Australia is to attain and hold on to a commanding position on the global scene, then further changes will clearly need to be made. Realisation of this appears to be growing, with most mining companies having attempted in recent years to improve workplace culture. Based on a wide ranging study, this paper presents an overview of what has been learned to-date with regard to the `people factor' when it comes to implementing and progressing positive change and reform in mining. From this, a number of practical suggestions, arising from hard won lessons and experiences in the field, are offered. Attention to the nine `key principles' given should help to ensure that many of the common problems encountered to-date with change and reform in the mining industry are in future avoided or at least minimised.

Jan 1, 1997

By Brady B. H

Increasingly, consideration is being given to the nominal `outcomes' of degree courses in engineering, including mining engineering. These are concerned not only with knowledge and technical understanding but also with capabilities in the professional application of engineering principles to problem solving, multi-disciplinary teamwork, communication and life-long learning. This paper discusses concepts of education, professional formation and training and the associated development of competencies in applying knowledge, understanding and technical insights and skills to new situations. In developing guidelines on preferred attributes and competencies in graduate mining engineers, a survey was conducted of a range of industry personnel involved in selecting graduate mining engineers. The results not only clarified the spectrum of competencies sought but also provided valuable detailed views to assist in defining a mining engineering curriculum. Considering a greater concern with the development of more `well-rounded' graduates, the implications are discussed with regard to teaching and assessment activities and the time demands on academic staff when a `coaching' role is emphasised. In line with international and Australian moves in engineering education, notions on education of mining engineering graduates in Australia are under review. The results will provide continuing challenges to all involved.

Jan 1, 1997

With the evolution rate of technologies, earthmoving equipment users are establishing vision statements for their operation out to and in some cases beyond 2000. Autonomous systems are receiving a lot of 'press' - and rightly so, as they hold a potential for achieving quantum leaps in productivity and cost gains. Caterpillar feels that it is important that the infrastructure of on-board systems are understood and can be utilised more in the near term to `grow' a user up to the stage of autonomous operation.

Jan 1, 1997

By Barber S

The Golden Cross Mine is located within the Waitekauri Valley near the southern end of the Coromandel Ranges, eight kilometres north-west of Waihi, North Island, New Zealand. The mine is owned and operated in a joint venture by Coeur Gold NZ Ltd (80 per cent) and Viking Mining Ltd (20 per cent). The underground mine produces gold and silver from low sulphidation epithermal quartz veins which developed in the shallow parts of a meteoric water dominated system during the Upper Miocene (7.36 - 6.67 Ma). The Empire Vein System is hosted within a dilational structural environment which developed at the lithological contact between acid intrusives, rhyolitic-dacitic tuffs and reworked pyroclastics, and undifferentiated andesites. The formation of the Empire Vein System was controlled by the rheological properties of the host rocks and variable displacement along a series of normal, right lateral, easterly-dipping faults. These faults represent sub-parallel zones of master shearing within a Riedel shear model. Underground mining extracts ore from the steeply dipping hangingwall and the complex footwall veins of the Empire Vein System. Initially sills are driven along the hangingwall vein on ten to fifteen metre sublevel intervals. In the footwall zones where significant mineralisation adjacent to the hangingwall sill drives has been identified, a series of cross-cuts and footwall drives (sub-parallel to the hangingwall sill) are also developed. Where continuity of mineralisation and ground conditions permit a combination of post pillar flatbacking and AVOCA longhole benching methods are used. Detailed underground mapping of lithology, quartz veining and major structures provides the information for designing ground support and footwall pillars, planning mine development and ore extraction sequencing. Sectional interpretation displays the vertical extent of faults, fractures and the vein system. The mining methods used underground at the mine have evolved through a thorough understanding of the structural complexity and the systematic geological mapping of the Empire Vein System.

Jan 1, 1997

By Secis R

Northparkes Mines is located 27 km northwest of Parkes in central west New South Wales. The E26 deposit is the largest of all defined to-date in the area, containing over 50 per cent of Northparkes' resources and reserves. The combination of orebody geometry and geotechnical characteristics provide ideal conditions for the block cave method of mining of the first lift of the E26 deposit. Although this method of underground mining has been used for decades in other countries, E26 is the first example of its use in Australia. Copper-gold mineralisation at Northparkes is related to quartz monzonite porphyries that have intruded coeval Ordovician volcanics. Sulphide mineralisation (dominantly bornite and chalcopyrite) occurs principally within quartz veins associated with the porphyry intrusions. Veining and mineralisation occurs within both the porphyries and volcanics. To optimise the recovery of a resource within a block cave mine, a good understanding of the rock mass and ore flow characteristics is essential. These have a significant effect on the fragmentation size and range and on parameters such as the drawzone spacing, height of interaction zone and dilution entry. As ore within a cave column moves and mixes when material is extracted from below and beside it, the total reserve extracted is unique for a particular draw strategy/production history. Until recently, reserve estimates and production schedules were based on the application of a uniform dilution factor to the tabulated resource. However, given the complicated flow and mixing within the cave column, such a simplistic approach can produce erroneous results. Northparkes Mines purchased and sponsored the upgrading of a commercially available software package specifically developed for modelling removal of resource blocks under caving conditions. This Gemcom software package, PC-BC, has been used for mine planning, reserve reporting and production scheduling. Blocks within it resource block model are converted into a mineable reserve taking into account mixing and dilution during depletion of drawcolumns (by horizontal and vertical redistribution of insitu tonnage and metal). As PC-BC gives individual drawpoint reserves, it can be used during the planning stage to determine whether or not a drawpoint is economic. For E26 Lift I an optimal layout containing 130 drawpoints has been developed based on a nominal 14 m x 14 m drawpoint spacing and a 0.8 per cent equivalent copper (eCu) cut-off grade. Annual production schedules for the depletion of material above this layout are based on: I higher tonnage removal from higher grade drawpoints in the early years of production; and 2 drawpoint production rates proportional to the total tonnage of orr remaining in the drawcolumn up to the optimal height of draw tier subsequent years. The reserve is tabulated from the combined annual production schedules over the life of the lift. The pre-mining reserve for Lift I of E26 is 26.6 Mt at 1.43 per cent copper and 0.39 g/t gold, of which approximately 23.4 Mt will be extracted under caving conditions. By scaling down the annual production schedule, weekly drawpoint tonnage calls can be given for short-tern production scheduling.

Jan 1, 1997

Pongkor Gold Mines is one of seven units of production owned by PT Aneka Tambang (State owned mining company). The mine is located in the western part of Java Island, Indonesia. It is in the Bogor District and approximately 110 kilometres to the south of capital Jakarta. It is located in very steep hilly terrain intersected by many river valleys and the mine site is approximately 500 metres above mean sea level (see Figures 1 and 2 - Mine location map and picture)

Jan 1, 1997