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By Gillies A. D S

The active history of foreign investment in the mining industry has resulted in Australia emerging as a major world producer of a range of mineral commodities. The current contribution to the national economy represented by mineral production and export revenues would not have occurred without both capital and expertise provided by foreign investors in the past. The initial foreign investment has led to the formation of Australian majority owned and controlled multi-national mining groups such as BHP Limited, CRA Limited and MIM Holdings Limited. These Australian companies, and others, are playing a significant part as foreign investors in the mining industries of Papua New Guinea (PNG) and Indonesia. The study examines issues of importance in foreign investment in each of the countries. It concludes that in Indonesia, the nationalisation of the Dutch mining industry in 1957 did much to deter foreign investment. The remarkable degree of policy stability brought about by the Contract of Works system since 1967 has gone a long way to restoring that confidence. The level of investment in the Indonesian mining sector is steadily increasing. Its attraction to Australian investors is a combination of policy stability, favourable fiscal terms, geological prospectivity for a range of commodities and proximity to Asian markets to the north. PNG has a stable policy regime which until recently has been free from political interference at the administrative level. As such, investors were developing confidence in the system and investment was progressively increasing as evidenced by growing exploration expenditures up to 1988. The 1989 Bougainville revolution caused a re-assessment of PNG's investment and country risk. The recent Mt Kare incident has further raised concerns over the government's ability to guarantee internal security. Foreign investors are faced with weighing concerns with the risks of operation in PNG against the undoubted geological prospectivity of the country. The fiscal regimes of Australia, Indonesia and PNG were compared by means of a simulated open pit gold mine in each country. The effect of taxation is examined by reference to the relative change in project internal rates of return (IRR). The comparison of the relative differences between pre-tax and post-tax IRRs provides a measure of the relative attractiveness of each fiscal regime.

Jan 1, 1994

By White A. H, Gillies A. D S

In recent years the Australian gold industry has gone through a major expansion phase. The need for finance has led to adoption of different approaches such as the well known gold loan, forward selling, equity participation by suppliers and equipment leasing. During early periods of the expansion, significant new equity was raised chiefly for high risk exploration ventures. The major form of new equity finance was ordinary shares, often in 'No Liability' companies. The increasing capital requirement of the huge new development projects of the 1980s also spurred the use of debt finance. This trend was accelerated as high inflation and the taxation advantages of debt finance made borrowing attractive. This paper reviews major financing techniques used by the Australian gold industry with particular emphasis on the innovative financing techniques initiated recently. An analysis has been undertaken of the effects on the industry of issues such gold loans, forward selling, equity participation by suppliers, fly-in fly-out operations, contractor mining and equipment leasing. In order to achieve a better understanding of the innovative financing techniques, a survey of already published financial data from well known Australian gold mines was carried out. Data was collected from various published financial reports of gold mining companies. In addition, a questionnaire survey was sent to gold mining companies to assist the collection of further information. The results of this study show that there are a significant number of gold mines variously using gold loans, forward sales, contractor mining and fly-in and fly-out arrangements to finance their projects. Only four operations have vendor suppliers investing capital funds in their projects. Based on the findings of this study, conclusions and recommendations are drawn that these approaches are likely to be with Australian gold industry for some time in the future and will continue to be intensively applied to finance gold projects.

Jan 1, 1994

By McKee D. J

Much research is aimed at providing a revolutionary advance in technology that has the potential to render current mining and beneficiation problems obsolete. Such revolutionary advancements have been significant but few in number. Recent history shows that most improvement has been derived from a series of incremental improvements to the many processes that make up mining and beneficiation systems. Management approaches are changing to encourage this 'continuous improvement' and to support its implementation through the formal management of quality. This paper reviews some of the industry's priority R&D project areas and demonstrates that very significant opportunities are available to broaden the focus for improvement from individual processes to include the interaction between mining and mineral beneficiation systems.

Jan 1, 1994

By K Hooper

Over the past 20 to 30 years statistics as a science has grown in significance. Not a day passes without reference to the latest statistics by the print, audio and audio-visual media. The Northern Territory Government has been part of this growth and like other public and private sector organisations collects a broad range of statistics. The Northern Territory Department of Mines and Energy participates in the government's statistics collection process. Statistics collected and published by the Department of Mines and Energy include geoscientific; mining and exploration tenure; environmental (e.g. mine site waste water management); production of minerals, oil and gas; mining sector employment; and occupational health and safety. The importance of statistics collection to the Northern Territory Government is discussed in the paper.

Jan 1, 1994

By N Donnellan

The Palaeoproterozoic Warramunga Formation is notable as the host to the enigmatic, so-called 'Tennant Creek style' mineralisation. These polymetallic (but mainly Au-Cu-Bi) ore deposits typically have a close spatial association with massive ironstone bodies, and frequently also with banded ironstone, known locally as 'haematite shale'. The Warramunga Formation is a polydeformed, turbiditic succession. Partial, or complete Bouma sequences variously comprising lithic arenite, wacke, siltstone, and mudstone constitute a classic flysch sequence deposited as a proximal (sandstone lithofacies) to distal (siltstone lithofacies) fan association. The Warramunga Formation has a substantial component of volcanic detritus and has generally been attributed to an essentially contemporaneous volcanic provenance. However, lithostratigraphic revision (Donnellan, Hussey and Morrison, in press) apparently precludes outcropping volcanic rocks of the Tennant Creek Block, or indeed Inlier, as the source of detritus. Warramunga Formation geochemistry indicates rapid derivation from a fractionated, predominately felsic igneous source (Palaeoproterozoic upper crust) with a minimum of chemical weathering; together with an admixture of mafic material. Warramunga Formation geochemistry cannot, however, be reconciled with that of the Bemborough Formation, which is here taken to be representative of Flynn Subgroup felsic volcanic rocks. Similarly, the Warramunga Formation is geochemically distinct from Flynn Subgroup sedimentary rocks. Geochemistry of the banded ironstone is consistent with its interpretation as Dine-grained turbidites.

Jan 1, 1994

By Hein K. A A

The Mt Todd Gold Project is located 42 km northwest of the township of Katherine within the Northern Territory of Australia. It is situated in the southeastern portion of the Pine Creek Geosyncline. The Batman gold deposit, the largest of several deposits at Mt Todd, hosts an identified mineral resource of 92.9 million tonnes (Mt) grading 1.4 grams/tonne (g/t) as at 31 December 1993. Host rocks at Batman are assigned to the Early Proterozoic Burrell Creek Formation, comprising greywacke and siltstone interbedded with shale. Gold mineralisation is associated with a very broad zone of sheeted and stockwork quartz-sulphide veins that occupy a corridor of intense brittle fracture and faulting. A conceptual model of formation involves the dilation of joints and micro-faults within overlying sediments during sinistral movement along a basement shear zone. Synchronous granite intrusion generated convective circulation of crustal fluids through the sedimentary pile resulting in the formation of auriferous quartz veins within favourable structures. The Batman zone of mineralisation is not directly related to fold structures which typify several other major gold deposits within the Pine Creek Geosyncline.

Jan 1, 1994

By Noller B. N, McGill R. A

The Alligator Rivers Region has been the scene of one of Australia's most intensive environmental monitoring efforts since the current generation of uranium mining was mooted in the 1970s. Prior to mining, the local environment and the nature of potential impacts were not well known. The initial monitoring programs therefore included large baseline characterisation and research components. After some 15 years, water, soil and sediment monitoring programs have been reduced to a fraction of their early size, as the mining and natural systems became better known and characterised, and the actual nature of the environmental impacts were established. Modem techniques allow much more rapid and thorough identification of chemical species and elements of concern, allowing much more focused monitoring programs to be designed. In the 1980s data collection was emphasised at the expense of interpretation, and monitoring programs were maintained at much higher levels than were in fact required. It is now clear that investigations are important and should be distinguished from monitoring programs, and that the timely interpretation of investigations and implementation of recommendations can greatly reduce the effort and expense that can be involved in a monitoring program. Monitoring programs based on a sound understanding of potential environmental impact may then be efficient and cost-effective, yet provide sufficient information to assess the environmental impact of mining, guide further environmental protection measures when problems are detected, and demonstrate compliance with regulatory requirements.

Jan 1, 1994

By Cocks T

The 15-year long debate between the industry, Government and Aboriginal people about the rights and wrongs of Land Rights, the right of Aboriginal people to control development on their land and the relationship between the parties, has been long and often bitter. It has so far been a war of words and often the truth has been the first casualty. This paper looks at the debate and presents the perspective of Aboriginal people, as well as looking at how the industry and Aboriginal people can work together for everyone's benefit. It addresses such matters as: ò why Aboriginal people believe they have the right to control development on their land; ò the perception that Aboriginal people are anti-development; ò the perception that Aboriginal land is 'locked-up'; and ò how companies can negotiate with Aboriginal people.

Jan 1, 1994

Banks' focus in using cash flow methods can differ markedly from that of equity investors. This paper attempts to explain and describe bankers' approach by: ò outlining the fundamental difference between banks' and investors' risk / return profiles. ò describing lenders' consequent use of cash flow methods in mineral valuation. areas. explaining lenders' specific treatment of key risk Fundamental to understanding banks' appraisal of mineral projects is the appreciation that lenders have a basically different risk profile and outlook from those familiar to equity investors. Lenders do not normally participate in any project upside. The economics of lending dictate that banks can only accommodate a low probability of loan default and consequently banks' principal focus in mineral ""valuation"" is ensuring an acceptably comfortable probability of debt repayment. A simple conceptual explanation of lenders' risk / return position is outlined.

Jan 1, 1994

By A. Paviani

The subject of this session is "Equipment Installa­tion, Recent Developments". This is a subject which is not usually addressed at conferences of Foundation Engineering. It is rare to find sessions dealing with the technological side of deep foundations, a subject which only recently seems to have aroused sufficient interest at national and international conferences. It is therefore natural for the subject of "Equipment", or the tools used to implement the various "technologies", to be over­looked or mentioned only occasionally during the discussion of other issues. At conferences, most of the attention is attached to research and to the theoretical interpretation of the performance and behaviour of deep foundations, as well as to establishing the most suitable calculation algorithms and approaches for the study, design and control of foundation structures. It is almost as if the subject of equipment is felt to be less important or, perhaps, that it is considered to belong more strictly to mechanical engineering than to civil engineering.

Jan 1, 1994

By J. C. Haptonstall

The Bismark Mine is located in northern Chihuahua, 150 km southwest of Ciudad Juarez. The ore deposit was discovered in 1979, and was placed in production in 1992. The production rate is about 2400 tpd from an ore reserve of 8.5M tonnes. Grades average about 8 % Zn, 0.5 % Pb, 0.2 % Cu and 50 g Ag per tonne. Substantial inflows of water into the under-ground mine complicate the operation. Complex metallurgy poses another challenge for the operators. Bismark was operated through a joint venture, Minera Bismark, S.A. de C.V., with U.S. and Mexican partners, but since early 1993, it is wholly Mexican-owned and operated.

Jan 1, 1994

By D. Shuck

Incorporation of a 2,727 mtpd, $5.7 million flotation circuit into the Mclaughlin flowsheet was completed in November 1991. This capital addition reduced overall operating costs and improved the gold recovery of the low grade refractory reserves over that expected for direct cyanidation. In addition, flotation provided a means to generate a sulfide concentrate which is utilized to supplement feed to the pressure oxidation circuit.

Jan 1, 1994

By B. De Paoli

At Pietrafitta, between Assisi and Perugia, ENEL (Italian National Electricity Authority) has for some time been managing a power-station operated with lignite, mined from an open mine on the way to exhaustion. A new plant is under construction which is located in the mine that was filled with tailings, mainly clays, sandy silts, lignite and ashes produced by the power-station. The soil profile is shown in Fig. 1: the thickness of the made ground is around 27 m. The foundation of the new power-station is on 320 t piles, 1.20 m diameter, embedded in the cohesive base formation at a depth of 57.5 m. 2,350 piles will be constructed for a total length of 125 km. It is therefore one of the largest pile sites at present in operation in Italy. [ ]

Jan 1, 1994

By Harper F

This paper outlines the authors' views of the methodologies which can be employed to value mineral properties at different stages of development for the purposes of project financing, mergers and public floats. This paper discusses the key issues in Discounted Cash Flow (DCF) analysis including the importance of data verification and the shortcomings in DCF analysis. Stockmarket valuation measures and valuation methodology for exploration and pre development projects are examined through examples and pitfalls are identified. The use of valuations in corporate transactions and their strategic value is also discussed.

Jan 1, 1994

By Thomas A. Wheeler

The reagents commercially used in coal flotation and their roles are reviewed and discussed According to their function the reagents are divided into often overlapping groups: 1. Collectors 2. Frothers 3. Conditioning Reagents Frothers have by far the largest effect on the amount of coal recovered They act not only in their traditionally accepted function of “bubble makers”, but in coal flotation they serve in a seldom acknowledged role of collectors. A lab flotation study on four samples of different coal ranks shows how these react to various frother families and proves that no froher is the optimum reagent for all types of coal. The advent of new technology in flotation equipment in the past decade has resulted in various novel designs of column cells, Jameson and Centrifloat™ cells, air-sped hydrocylones, etc. All should require special frothers or blends of frothers to meet their specific needs.

Jan 1, 1994

Quality Assurance has become a buzzword amongst governments and industry. Notwithstanding the world class work done by its committees in developing codes of ethics and of practice in field geological handbooks, mining cost estimation handbooks, and reserve estimation, the AusIMM could better prepare its membership for QA. MICA could provide a simple set of guidelines to enable consultant members to develop their own QA procedures manual conforming to AusIMM Codes and to IS09003, and AS3903.

Jan 1, 1994

By J Kokado, N Hatta, S Yabushita

A theoretical model is described for prediction of the capacity of fines from porous ores, such as cokes and sintered ores, to be removed by a pneumatic, horizontal-type classifier prior to charging into a blast furnace. First, the influence of variation in the apparent density and drag coefficient of porous ores on removal efficiency is analysed from a stochastic standpoint. The effect on efficiency of collisions between particles in the classifying region is then examined analytically in relation to the ratio of the mass flow rates of particles and air (the loading ratio). Finally, a theoretical model is constructed that takes these factors into account. Theoretical and experimental results are compared and classifying efficiency is discussed from both experimental and theoretical viewpoints.

Dec 1, 1993

By José Adachi

La ventilación de minas es un proceso relacionado a la dinámica de la mina que genera el acondicionamiento del aire circulante a través de las labores subterráneas. Como tal, los requerimientos de la mina se adecúan de acuerdo a la estructura física de la misma. En consecuencia, no existe un sistema de ventilación estático puesto que los sistemas requieren de constantes monitoreos y ajustes para alcanzar una ventilación óptima. Así, el presente trabajo señala los aspectos importantes del diseño de ventilación principal de la mina Condestable realizado entre el período de 1992 y 1993 por encargo de la compañía minera. La metodología empleada comprende mediciones de campo y el cálculo de requerimientos del caudal. Asi también está la construcción del modelo de red de ventilación y el diseño del nuevo ciricuito con ventilación forzada.

Nov 24, 1993

By Juan Carlos Ramírez

El presente trabajo señala la importancia e influencia del Sistema Privado de Pensiones (SPP) y las AFP para el desarrollo e inversión del sector minero. Para tal fin, se analiza la interfase necesaria entre cada agente del sistema y así lograr tres objetivos: la garantía real de los fondos, fondos disponibles para el sector productivo minero y una alternativa más de colocación de fondos para las AFP. Asimismo, se minimiza la creación de mecanismos de control adicionales para conectar el sector minero hacia otros sectores económicos-financieros, no solo a través del sistema bancario tradicional, sino con otros campos financieros, bolsas y SPP.

Nov 24, 1993

By Max R. Peña W

El crecimiento de la minería en el Perú requiere de un adecuado desarrollo tecnológico, así como de la reducción de costos en las mismas operaciones. Por ello, en la actualidad minera se desarrollan alternativas para la reducción de costos en perforación y voladura a través de las técnicas de corte escalonado y los detonadores eléctricos de alta precisión, a fin de obtener un mejor rendimiento en cuanto a su funcionamiento y precisión en minería subterránea y de cielo abierto.

Nov 24, 1993