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By Takasaki Y, Ohzeki S, Hotta H

TO measure high temperature properties of blast furnace burdens ( the change of gas permeability accompanied by contraction, soft- ening and melting ) which govern the gas flow and its distribution, a series of experiments were carried out under simulated blast furnace conditions, using sinter, acid pellets and self -fluxing pellets. 1) The high temperature properties are affected by the ore's reducibility ( up to 1000 -1200¦C ), and the composition, and volume of gangue before reduction. Generally, the burde- ns with high basicity ( Ca0/Si02 ), high reduc- ibility and low volume of gangue have good high temperature properties. Good high temperature properties are : a high temperature at which the gas permeability rapidly decreases, a high melting point and a low maximum pressure drop. 2) Using acid pellets, slow-down of red- uction rate occurs around 1000¦C because the pellet forms a dense metallic shell, while its slag core, resulting from a FeO, Si02 and A1203 reaction, has a lower melting point. 3) The addition of MgO sources improves high temperature properties both of sinter and Pellets.

Jan 1, 1980

This paper briefly reviews the background of mobile primary crushers and their current main areas of application. The benefits of applying mobile primary crushing and belt conveying systems are analysed. The impacts of applying such systems to different steps of the mine process are discussed, including mine development and planning. Application examples are used for demonstrating further possibilities to apply mobile primary crushing and belt conveying systems in mining projects successfully.

Jan 1, 2007

By W J. Cowie

Several years of operating experience of over 100 gold recovery operations on the West Coast has provided a database from which the basic operating costs of these types of operations can be characterised. Using figures generated from the averaging of plant operating costs throughout the region and financial modelling using Lotus spreadsheets has been developed to analyse both existing and proposed developments. This type of modelling has several uses: 1. Identification of the impact on profitability of changes in management practices, finance costs, operating costs and revenue streams. 2. Project evaluation and planning. 3. Profitability projections for development financing. 4. Troubleshooting with existing operations. 5. Valuation of existing operations and properties.

Jan 1, 1987

In a modern economy there is a compelling case why governments should not own property rights to mineral deposits. Assuming they do, however, governments will use these constitutional rights to raise revenue. They have two basic instruments to achieve this; a royalty charge on price or a rent tax on income/profits. On the one hand, a royalty charge creates a 'deadweight loss' to society by increasing cut-off grades and decreasing the life-of-mine. They are also regressive. However, they are easy to administer. On the other hand, a rent tax avoids the problem of 'deadweight loss'; it does not impact on the life-of-mine because the tax structure is neutral. But, they are difficult to administer correctly, particularly in the determination of rents and the definition of mining per se. If rents are incorrectly determined capital markets are distorted. And, if mining activities are incorrectly defined, downstream activities could be adversely affected.

Jun 1, 2010

By X Yang, T Zhang, Z Li, Z Yan, M A. Williams, S Qin, P Wilson

Continuous development of complex new steel grades to meet the ever-increasing demand of high performance causes recurrent issues in steel continuous casting such as surface quality defects (eg cracks, depressions, deep oscillation marks) and productivity challenges (eg faster casting, near-net shape casting). Continuous casting of steel is a highly successful metallurgical process. Much of this success can be attributed to the performance of the casting powder that is added to the top of the mould, creates a liquid slag pool as it is heated, and forms a slag film between the watercooled copper mould and steel shell during its passage down the mould. Mould powder selection is a compromise between the conflicting requirements of heat transfer and lubrication. In an EU RFCS (Research Fund for Coal and Steel)-funded project, various techniques are developed to offer the opportunity to adapt the slag film to meet the conflicting needs in different parts of the mould such that mild cooling can be generated in the meniscus, mid-broad face or corner areas whilst maintaining lubrication and offering higher cooling rates in other areas of mould. This has significant potential to address the industrial issues in product quality and productivity of continuous casting. This paper reports, as part of the EU RFCS project, the determination of crystallinity and porosity in slag films for casting challenging and innovative steel grades using new methods. In comparison with the methods such as X-ray powder diffraction (XRD) analysis and optical microscopy / scanning electron microscopy (OM/SEM) analysis that are currently adopted by the industries, EBSD (electron backscatter diffraction) has been employed to determine the crystallinity of the slag films taken from industry casters. X-ray computed tomography (XCT) plus 3D image reconstruction has been used to determine the slag film % porosity with pore volume, pore size distribution, and pore location, which can be linked with the performance of the slag films during casting different steel grades.

Jun 19, 2024

By G Kennewell

At 11 am Monday 8 September 1997, the successful detonation of the 5/9 Mass Blast at Pasminco - Elura was signified by the subsiding of æMt KevinÆ (a 15 m high earth fill mound). The blast was in response to earlier mine subsidence, which holed through to the surface affecting future stability of underground workings. The blast was a first for Elura which fires small tonnages regularly to avoid rapid oxidation of the ore. This paper discusses the strategy and the considerable planning that went into EluraÆs first blast of this magnitude in order to succeed first time round.

Jan 1, 1999

Hydraulic backfill is generally retained in stopes using permeable barricades. Mitchell et al (1975), Mitchell (1992) and Grice (1989) have shown that under normal drainage conditions, barricades experience low levels of loading. Cowling et al (1988) have also shown that barricades are susceptible to piping failures if excess water has ponded on the upper backfill surface and if leakage of backfill from the barricades has occurred. During 1997, six hydraulic backfill barricades failed in four different Australian mines. Fortunately, in each case, the quantity of backfill slurry released was small, and no injuries to personnel nor damage occurred. Detailed investigation of two of the incidents showed that the primary cause of failure could be attributed to the delivery of excess quantities of transport water from the low-density slurry. For each of the incidents investigated there was evidence of the development of piping failures, which resulted in hydrostatic loading conditions on the barricades from the ponded water on the upper backfill surface. The circular failure surfaces in the barricades were characteristic of the application of point loading conditions. This paper discusses the circumstances that led to these incidents and analyses the modes of failure. The standards for the safe operating of hydraulic backfill systems are reviewed along with requirements for ongoing management and control. The design requirements of barricade construction are analysed and some appropriate guidelines introduced.

Jan 1, 1998

By G K. Robinson

Variations in many aspects of physical and chemical grade are often of concern to mining operations and mineral processing plants. In most circumstances these amounts of variation are predictable. At the time of planning new operations, we should be able to predict the amount of sampling and testing variation which our sampling devices, laboratory procedures and on-stream analysis devices will achieve. We should know how well our stockpiles, reclaimers and bins will homogenise material (or whether segregation will actually increase the amount of variation). We should be able to predict the amounts of variation that will occur on the important time or tonnage scales at the crucial p oints in our proposed operation. And once these amounts of variation are reliably known, mine planning will seem a little bit more like dealing with known knowns rather than like dealing with unknown unknowns.The first step towards quantifying amounts of variation for planned operations is to assess amounts of variation for existing operations. How many operations have estimates of amounts of variation in their databases? How often are people able to partition amounts of variation into amounts due to sampling error, amounts due to sample preparation, amounts due to assaying, and the amount of real variation in the stream of material?CITATION:Robinson, G K, 2012. Making sure that the amount of grade variation is a known known, in Proceedings Project Evaluation 2012 , pp 159-162 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

By R Atmuri, W Liang, R Prasad, Y Liu, E Wingate

Yellow phosphorus (YP) has been commercially produced since the 1920s. First in the USA by the Tennessee Valley Authority (TVA), next in Russian (Kazakhstan) in the 1950s, and finally in China in the late 1970s and early 1980s. There are operations in Vietnam and Sarawak on a smaller scale. YP has become very in vogue due to its use in the production of lithium iron phosphate battery cathode precursor materials by the Chinese and other western battery manufacturers. The YP is also used to produce purified phosphoric acid and higher grades of acid using a thermal oxidation process after smelting. This paper will look at the basics of the smelting including slag chemistry, alloy chemistry and offgas chemistry. The paper will look at the design of the furnaces used in the YP production process as well as the downstream recovery of phosphorus from the smelter off-gas stream to YP. The next part of the discussion will focus on the operations of a YP smelter with regards to control of the furnace to optimise phosphorus recovery to YP. Will discuss tapping cycles for alloy and slag with a view to optimal phosphorus recovery. The discussion will close out with a review of operational challenges in the smelter and a brief description of the downstream conversion of YP to high purity phosphoric acid.

Aug 21, 2024

The International Symposium-cum-Workshop on Management andControl of High Gas Emissions and Outbursts in Underground CoalMines was held in Wollongong in March 1995. Coverage of high gasemissions was virtually confined to instantaneous outburst implications, essentially seam gas pre-drainage. Globally, instantaneous outbursts have been known for 150 years, andthe first Australian outburst occurred in 1895 and Australian occurrences and mines affected have increased since. Few significant coal producing countries are unaffected. The coals affected range in rank from lignites to anthracites. Geological disturbances are the most likely environments for occurrences. The most likely mining geometry is of virgin headings, with some occurrences on longwalls and in other situations. Widespread research into many aspects of the problem has yet to produce a generally accepted explanation. Explosive inducement is a well-known control. Apparently high advance rates increase face gassiness and create higher stress abutments, increasing proneness. The most popular preventive measure, pre-drainage of virgin coal ahead of faces has produced highly successful very long hole drilling performances but without the precision necessary for accurate geometric hole patterns, despite quite sophisticated drilling equipment and hole surveying instruments. For the future, more precise degasification is sought, even from the surface, together with rapid face coal gassiness assessments to confirm lowering below threshold values, as well as other proneness lowering measures, perhaps related to new heading and longwall geometries and to new equipment to provide them. But above all, safe management plans are required for each operation, to safeguard the miners and their working environments, and thus to protect underground coal mining from this mounting threatening problem.

Jan 1, 1997

A study was undertaken to investigate the relationship between the quantity and value of economic demonstrated resources discovered for 12 mineral commodities over a ten year period and the expenditure required to yield such mineable resources. The results showed that for every dollar spent on exploration, there is an apparent in-ground average value of around $54 dollars contained in the economic resources found. While this appears to be a satisfactory return, it should be remembered that more than 99.9% of exploration programs are judged to be failures because a viable ore body or mineral deposit was not proved up. What is behind this seeming paradox?   The fundamental truth behind mineral exploration is the fact that the more you explore, the more you find, and that one success will often lead to further discoveries. It appears that one rich and viable deposit creates such surplus that its inherent high value ('the pot of gold') makes up for all the failures. In short, mineral exploration is a high risk business with uncertain returns. However, with skill, enthusiasm, experience and venture capital, it can yield larger than normal returns for the brave and the fortunate.   Analysis of exploration expenditure and economic resources discovered for the period 1987 to 1996 revealed that the apparent in-ground value of economic ore discovered per dollar of exploration expenditure varied from a high of $429 for iron ore and $261 for bauxite to a low of $22 for gold and for lead, and $5 per dollar of diamond exploration expenditure. Preliminary conclusions drawn on the reasons for the variations observed include the inherent ease or difficulty of discovery for different mineral commodities which may in some cases, relate to the natural prospectivity of Australia as a whole. Layered deposits like iron ore and bauxite appear to yield higher in-ground value returns on the exploration dollar. To some explorationists, this may be considered as seemingly obvious, but it may have more to do with very large-exploration tenement grants pursued by various Australian State Governments in the early 1950s and 1960s than the apparent ease of delineating a stratabound deposit.   Despite the apparent relatively low in-ground value produced by the gold exploration dollar of $22, the 5660 tonnes of gold discovered in this ten year period was worth $9.1 billion and representing over a quarter of the new mineral wealth created in the ten years to 1996. This contribution, along with that from the other minerals discovered over the period, led to a significant boost to Australia's export income and standard of living.   It is concluded that, given the nexus between the amount of mineral exploration expenditure and the quantity of new resources likely to be discovered, this knowledge may help policy makers seek to influence the rate of resource discovery in countries like Australia for the benefit of the nation.

Jan 1, 2004

By L D. Redden, M G. Nelson

Mechanical flotation machine design is typically based on hydrodynamic analysis, with scale-up calculated by geometric proportionality. End users often specify and purchase machines on the basis of retention time, characterised by the æ$/m3Æ approach; they may also consider the manufacturerÆs installed base. In some applications, end users also consider specific energy and the impact of energy consumption on operational costs. In other cases, a decision may be based on machine type (forced-air versus self-aspirating) and perceived metallurgical or operational advantages of one machine type over the other. With regard to metallurgical performance efficient bubble-particle contact is very important and is primarily influenced by two factors:the concentration and size distribution of bubbles in the machineÆs contact zone (the volume enclosed by the disperser); and the number of times that slurry is pumped through the contact zone. The second factor is a function of the machineÆs pumping rate and its retention time. Field data show that pumping efficiency is independent of aeration rate. In this paper, a new dimensionless number for the characterisation of flotation efficiency is presented. The contact frequency number (CFN) is defined as the number of times a given volume of slurry passes through a machineÆs active contact region, and is given by: CFN Qp/Qf, where:Qpis the pumping rate through the contact regionQfis the volumetric feed rate to the machine

Jan 1, 2005

By D J. Alchin

Most of South AfricaÆs high-grade iron ore resources are hosted within a fault-controlled structural basin in rocks of the Palaeoproterozoic Transvaal Supergroup in the Northern Cape Province of South Africa. Iron mineralisation occurs as individual orebodies in fault-bounded basins or as fold-controlled concordant lenses around an unconformity plane above the Kuruman Banded Iron Formation. The Sishen mine near Kathu and the beeshoek mine and Sishen South deposit near Postmasburg lie on the northern and southern border of a major domal structure known as the Maremane dome, respectively. The effects and structural constraints of at least three orogenic compressive episodes and several intermittent extensional episodes on the formation, erosion and preservation of iron mineralisation on the Maremane dome and surrounding environs were investigated. Ventersdorp impactogenal rift basin development at ~2.78 - 2.64 Ga, finalised with the deposition of the volcano-sedimentary Vryburg Formation during the thermal subsidence stage at ~2.64 - 2.6 Ga, and was followed by tectonic quiescence/stability and an extensive marine transgression across the entire Kaapvaal craton. The drowning event led to the formation of a carbonate platform with the deposition of the Schmidtsdrif and Campbellrand subgroups conformably above the Vryburg Formation at ~2.6 - 2.52 Ga. The initiation of distal (to the west of the Kaapvaal craton) off-craton oceanic rifting, causing submarine volcanism and associated hydrothermal activity, led to the deposition of initially manganiferous chert (Wolhaarkop Formation) followed by banded ironstone formations (Manganore Iron/Kuruman Formation) of the Asbestos Hill Subgroup at ~2.52 - 2.46 Ga. Initial passive margin rifting along the N-S oriented western edge of the Kaapvaal craton, initiated at the end of Ghaap Group time (during Koegas Subgroup deposition) at ~2.46 - 2.35 Ga, formed a prominent system of N-S striking, westerly dipping normal faults. Easterly directed crustal compression in post-Ghaap Group time in response to the Kalahari Orogeny (accretion of Rehoboth craton along western edge (Kalahari suture zone) of the Kaapvaal craton at ~2.35 - 2.24 Ma led to the formation of large-scale regional, N-trending F1-folds. Partial to complete inversion of the Koegas passive margin rift system (ie reverse dip-slip reactivation of the N-S striking normal fault system to high-angle reverse faults and dextral strike-slip reactivation of the Ventersdorp rift system developed in the Archaean basement), was followed by uplift, erosion and formation of a regional angular unconformity (Postmasburg unconformity). Uplift was accompanied by deposition of fluvio-glacial sediments of the Makganyene Formation (Lower Postmasburg Group) within an intracratonic peripheral foreland basin setting unconformable above Ghaap Group strata at ~2.35 - 2.24 Ga. Post-orogenic crustal relaxation and rifting caused extensional reactivation of the N-trending Palaeoproterozoic passive margin rift system and NE-trending Neoarchaean Ventersdorp impactogenal rift system, forming a fault-controlled depository for the volcano-sedimentary Upper Postmasburg Group at ~2.24 - 2.1 Ga. Deceleration in rifting was succeeded by thermal subsidence of the Upper Postmasburg Group rift, erosion, formation of a regional angular unconformity and deposition of clastic sediments of the Lower Olifantshoek Supergroup unconformable above Postmasburg Group strata at ~2.1 - 1.93 Ga. Renewed rifting led to the deposition of volcano-sedimentary units of the Upper Olifantshoek Supergroup within a rift system superimposed on the Postmasburg Group rift depository at ~1.93 - 1.83 Ga. Easterly directed crustal compression during the Kheis Orogeny at ~1.83 - 1.73 Ga led to renewed inversion of rift structures of the Postmasburg Group and Olifantshoek Supergroup depository, N-trending F2 folding and thin-skinned thrusting of older rock units eastwards over the cratonic cover, thereby utilising planes of weakness in the strata such as prominent unconformities and lithological contrast boundaries as principal dTcollements. NNW-directed crustal compression in response to Lomanian (Namaqua-Natal) Orogeny at ~1.15 - 1.0 G along the southern margin of the Kaapvaal craton, resulted in minor sinistral strike-slip reactivation of the N-S striking fault system, the formation of extensional NNW-SSE striking fracture/fault zones and the development of ENE-trending F3 folds forming a F2/F3 fold interference pattern. Post-Lomanian tectonic events (eg the Pan-African Orogeny at ~650 - 500 Ma, the Cape Orogeny at ~310 - 240 Ma, and the Gondwana breakup at 205 - 120 Ma), caused only comparatively minor extensional reactivation of the pre-existing fault systems. Iron mineralisation was ultimately preserved from erosion by Kheis Orogeny-related N-trending F2 synclines and Lomanian Orogeny-related ENE-trending F3 synclines, in particular areas of interference between F2 and F3 synclines representing comparatively deep semi-circular trough- like depressions, as well as in half grabens formed adjacent to reactivated westerly dipping N-S normal faults. Support for relating the iron and manganese mineralisation to structurally controlled hydrothermal fluid flow during the Kheis orogenic event has also been found, and ongoing research is aimed at confirming and refining the hydrothermal model for iron ore mineralisation in the Northern Cape.

Jan 1, 2007

During the middle of this century, exploration and mining reached a low ebb in New Zealand. Tas McKee did his utmost to rejuvenate the mining industry, using the latest technology and an understanding of the environment far ahead of his time. Today, advances in the geosciences enable sophisticated exploration to proceed to the drilling stage before any significant environmental disturbance is created. Thereafter developments are now carried out with integrated management of the environment and rehabilitation so that disturbed land can be used for other purposes once mining is finished. Thus, we now have environmental engineers and scientists taking their place as professionals in our Institute.

Jan 1, 1987

By P Bartlett, K Naidoo

Premier Diamond Mine is planning a new, mechanised, block cave, with a production level approximately 1000 m below surface. A high degree of tunnel damage is expected, due to stress and the relatively low in situ strength of kimberlite. An evaluation of the timing of tunnel excavation, tunnel size and spacing has been carried out to define critical parameters for planning layouts and development schedules. Extensive use has been made of three-dimensional FLAC3D numerical models, calibrated against known rock mass behaviour at 650 m depth, to examine the influence of undercut advance on production level excavations. These were able to represent the effect of stress rotation on tunnels during undercut advance and the effect of an inclined undercut. The analysis has provided guidelines that are possibly applicable to any deep block cave layout. The choice of drawpoint layout is of considerably less significance than the proportion of ground extracted on the production level elevation prior to advancing the undercut. The analysis shows that damage to production development will be potentially severe if it is all excavated prior to advancing the undercut, or is mined directly beneath the undercut face. The development of the main production tunnels alone ahead of the undercut may be feasible, but no breakaways should be put in as they appear to trigger a rapid increase in the severity of damage. The optimal sequence is when all production tunnels are developed at least 10 m in plan behind the undercut, where the induced peak field stress is less than 20 MPa and a maximum support pressure of 100 to 500 kN/m2 is require to contain movement. The assessment showed that the conditions are not significantly improved by increasing drawpoint spacing from 15 m to 18 m. The vertical spacing between the undercut and production level beneath is investigated. Provided production level development is carried out beneath the undercut, there would appear to be little benefit in increasing the vertical spacing between the undercut and production level beyond the current 15 m to 18 m.

Jan 1, 2000

By G MORRIS

The mining industry has been rightly proud of its environmental achievements and it would be fair to say that in some areas the Australian mining industry is at the forefront of world practice in environmental management and mine rehabilitation. The `environment' has certainly been a growth area over the past three decades with growing awareness in the 1960s, some large battles and the of significant legislation in the 1970s. The most important period however has been the 1980s and so far the 1990s where, in addition to the of some more rigorous legislation, we have seen the practical application of environmental management/rehabilitation Techniques.

Jan 1, 1992

A key issue in maintaining the mining industryÆs social contract to access community-owned resources, is the need to be able to demonstrate professional management of resource extraction and the risk associated with mining hazards. Significant failures such as disease relating to coal dust and asbestos and mine disasters such as Moura, Appin and Gretley have resulted in judicial and legislative interventions that respond to the community outcry but do not necessarily effectively manage the longer term risk in a sector driven by new technology. With the implementation of recent amendments to the Queensland Professional Engineers Act, senior engineers in all industries including the mining industry are required to be registered and to demonstrate that they have æmaintained competency in the practice of engineering in the area of engineering for which the (engineer) is ... registeredÆ. This may be facilitated through a report produced by an æAssessing EntityÆ. These entities are approved by the Minister on advice from the Board of Professional Engineers, Queensland. Engineers Australia and The Australasian Institute of Mining and Metallurgy (The AusIMM) are the two professional bodies approved as æassessing entitiesÆ charged with facilitating successful implementation of the process established by the legislation. The scope of the legislation covers engineering enterprises in Queensland and engineering activities elsewhere that may have been designed in Queensland. There is currently a challenge to determine what the necessary health and safety competencies for the mining industry are and how the maintenance of these competencies will be assessed. The different approaches taken by the two assessing entities are compared and contrasted. At the legislative level, establishing an obligation to assess professional competency is simple, but at the level of the profession, it is new ground that warrants a substantial research and development input. The challenge is to develop criteria by which the quality of such system can be assessed. The comparison is made by considering such issues as equity, effectiveness, efficiency, objectiveness and transparency. These five indicators are considered in terms of how they are applied in other sectors and how they might be applied in the mining sector.

Jan 1, 2009

Block caving is the lowest cost underground mining method but it has relatively high risks and a high up-front capital and development cost. It has application to large, often lower-grade orebodies where high production rates can provide good returns on the investment. However, it has a range of technical risks that are peculiar to block caving and the usual financial, political and environmental risks that may be exacerbated by the long lead-in times associated with the development of a block cave operation. With initial development costs that may be $100 M to $1000 M when the building of a treatment plant is also required, it is obviously important to minimise and manage the risks. In a greenfield project, commitment to a substantial proportion of the capital expenditure may be required to gain access to the deposit, and the decision to proceed at this stage would be based very largely on interpretations of drill hole data. In established mines the data may be supplemented by geological mapping and past experience, etc. The quality of this data is critical and yet it is frequently degraded through poor techniques and avoidable omissions. The final decision to proceed would be assessed on projected commodity prices, mining capital and operating costs, dilution and run of mine ore grades. The latter will vary over the life of the project and these can be estimated with drawdown or draw control modelling techniques. In this modelling, there are further risks in the assumed modelling parameters or that the modelling technique may not be applicable or appropriate. The paper addresses the most critical technical and operational risk areas and provides some practical precautions that can be taken to reduce these and improve the reliability of the geological and geotechnical models.

Jan 1, 2000

LIST OF CONTENTSAbstractIntroductionSelected Sections of the Broken Hill LodeLocality PlansPetrology1. Zinc Corporation Mine: DDH. 5.98, section 30, No. 26 level2. Zinc Corporation Mine: DDH. 838, section 30, No. 13 level3. Broken Hill Sonth Mine: 60 ft. cont01(r above 1170 ft. level4. Broken Hill South Mine : No. 7 shaft section, 1370 ft. levelOrigin of garnet sandstone5. Barrier Central Pty. Ltd.: DDH. tJ.93, Block 136. North Broken Hill Ltd.: Junction mine, DDH. 602, No. 10 level7. North Broken Hill Ltd.: Jnnction mine, DDH. 588, No. 11 level8. North Broken Hill Ltd.: North mine, DDH. through Southern ore body, 3370 ft. level9. North Broken Hill Ltd.: North mine, Northern ore body above 2300 ft. level(a) Southern end, section 27, 77 ft. above rails(b) Northern end, section 30, 6.9 ft. above rails(c) Miscellaneons samples, sections 27 and 28Relative time of ore depositionSericitizntionStructural significance of sericitizationGCLhnite OrthoclaseApatite GarnetManganese SilicatesAlteration of manganese silicatesRelation of zinc and lead to the silicatesZinc in manganese-bearing silicatesLead in potassium and lime silicates and apatite

Jan 1, 1959

By J P. Sykes, C Gemell, A Trench

The perceived and actual impact of government mineral policy upon the government share from gold mining revenues is assessed for ten key countries in which the gold sector is of relevance in advancing economic growth. Five African and five South American jurisdictions are considered, namely Burkina Faso, Ghana, Mali, South Africa and Tanzania from Africa; and Brazil, Chile, Colombia, Guyana and Peru in South America.Both the headline corporate income tax rate and royalty level are identified as poor indicators for the total government share. In addition, significant differences between industry perception and actual government tax levels are identified by this study. The quantitative financial analysis shows that there is no clear relationship between individual taxation rates, taken in isolation, and the overall average effective tax rate (AETR) paid by the project over its life. Neither companies nor governments should use individual taxation rates, or industry perceptions, in isolation to assess the overall competitiveness or equity of a country’s minerals taxation regime – such analysis can be very misleading.In this study, the perceived impact is determined from the well-established Fraser Institute survey published each year, and in 2014 compared 122 minerals jurisdictions globally. The actual impact is determined from quantitative modelling of the financial performance of a hypothetical gold mining project in each country. The technical parameters of the project are held constant; instead the differing mineral policies in each jurisdiction are applied to determine the resultant impact upon the relative share of the economic rents delivered to both private and public sectors. In the quantitative analysis, the total government share varies from 36.3 per cent in South Africa to 66.5 per cent in Ghana.CITATION:Gemell, C, Sykes, J P and Trench, A, 2016. Is perception reality? Evaluating the fiscal attractiveness of international jurisdictions for gold mining investment, in Proceedings International Mine Management Conference, pp 227-238 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016