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DESCRIPTION OF OREThe ore consists, in general, of a very finely grained mixture of sphalerite, galena, and pyrite, with a gangue of quartz and schistose material, and contains about one ounce of silver to the unit of lead.Minor minerals are chalcopyrite, tetrahedrite, and ruby silver. The amount of gangue within the ore-bodies themselves is usually less than 20% of the weight of the whole. The ore is banded in a way that corresponds to the structure of the original schists, and is by no means uniform in composition-at one point, for example, blende may predominate, and a few feet farther on the body may become highly pyritic.Owing to the intimate association of the mineral constituents of the ore, it is very difficult to separate them from one another.Although this remark applies to ore from all parts of the field, the difficulty is particularly noticeable with Rosebery ore, the minerals of which are more intimately mixed, and are of smaller grain size than are the minerals of the Hercules ore.To effect a reasonably clean separation, it is necessary to grind the ore so that 90% passes a 200-mesh I.M.M. screen. Microscopic examination of the crushed product shows that 85% of the minus 200-mesh material is less than 30 microns in diameter, or, in terms of screen sizing, is minus 400 mesh. Particles under 30 microns are found to consist, of one mineral only, but in particles over this size separation has not always been effected. For instance, it is known that part of the galena and of the pyrite in the zinc concentrate is associated with sphalerite, and that part of the galena in the mill residue is associated with pyrite. There is only slight association between the minerals in the lead concentrate.

Jan 1, 1927

Copper waste dump leaching is growing in importance because of the.large tonnages (up to 250,000 ton/day) of low grade waste rock available from open cut mining of copper deposits and proof that controlled leaching of copper from such dumps can be profitable.Overburden or waste rock, ranging in size from large boulders to fines, is dumped as cheaply as possible on sloping sites. Copper is leached from the dumps by applying up to 12,000 gal/min of leach solution (a combination of spent solution from cementation and make-up water) to the top of the dumps by various techniques.Efliuent from the dumps is sent to a cementation plant for copper recovery.Factors which may be controlled, either directly or indirectly, to give a controlled copper content in the dump efliuent (usually 1-2 g/l.) are the cycle of operations (i.e. the alternate wetting and drying periods), thevolume of solution applied to the dump, pH, Fe2+ and Fe3+ content or redox potential, oxygen content, bacteria and their necessary nutrients, and temperature.Dissolution of oxide copper minerals appears to be mainly a function of acid concentration. Copper sulphide minerals need oxidation for dissolution to occur and this is accomplished by a combination of oxygen,ferric ion, and bacteria. Oxidation of pyrite, oxidation of Fe2+ to Fe3 +, and hydrolysis of Fe3+ are of some importance in leaching practice. The presence of gangue carbonate minerals is detrimental.Physical factors connected with penetration of solution into large rocks are important and the treatment of an individual dump usually extends over a period of many years. Recovery of copper from solution is usually achieved by cementation with iron (usually in the form of crumpled cans) but the use of sponge iron is becoming more important. Iron consumption varies from 1 to 4 lbiron per pound of copper. Preconcentration of the copper in the efliuent solution by solvent extraction followed by electrolysis may become a useful method.Application of dump leaching techniques to metals other than copper depends on finding an economic method of recovering the metal from solution...

Jan 1, 1967

Rational decision making is generally perceived by managers of operations to be a delicate process of committing large sums of money and putting other people's life at risk. Consequently most managers may argue that the decision process requires good judgement, intuition and extreme caution; and not one easily made through the use of fancy mathematical algorithms and computer programs. The advent of artificial intelligence and expert systems in the computer industry combined with recent technological innovations in mathematical and economic problem solving is sure to change this perception. PARETO OPTIMALITY is an economic and a mathematical optimisation concept applied to solving real life operational problems; and one that the current volatile economic forces would require managers to employ because it is virtually real. REALISMM is a computer software package developed using the principles of Pareto optimality, dynamic programming, optimal clustering of information and decision maker interaction to generate decision maker preferred solutions. REALISMM has scope for artificial intelligence and expert systems application for cases where the decision maker is unsure about his objective preferences.

Jan 1, 1993

By B C. Sarkar, D Ray, V Sarkar, P K. Sinha, R K. Singh, A Kumar

Estimation of iron ore grade distribution has been attempted using geostatistics and artificial neural network (ANN) based models for a banded iron formation (BIF) type iron ore deposit of East India. Geologically, it is a supergene iron ore formation through an enrichment process of parent material (BIFs) by gradual leaching of impurities, namely SiO2 and Al2O3. As the degree of leaching differs spatially, distribution of Fe varies depending on local controls of ore formation. While geostatistical methods work on models based on spatial correlations of mineralisation parameters, ANN models a non-linear distribution and is widely used as a global approximator. Spatial distribution modelling of Fe values has been carried out employing ordinary kriging (OK) and sequential Gaussian simulation (SGS). Non-linear modelling has been performed using hybrid neural networks (HNN) that provided an alternative option for grade estimation. Classical statistical modelling revealed a negatively skewed 3-parameter lognormal Fe population having a mean of 60.49 per cent with a skewness of -0.08 and a kurtosis of 2.60. Semi-variography and geostatistical estimation employing OK procedure led to block-by-block kriged estimates with associated kriging variance, which provided an overall mean kriged estimate and kriging variance of Fe as 60.29 per cent and 7.76 (per cent)2 respectively. SGS procedure revealed a mean of 60.71 per cent and a standard deviation of 5.89 per cent with minimum and maximum values as 45.12 per cent and 68.70 per cent respectively in respect of Fe. HNN model provided values of mean squared error (MSE) and correlation coefficient (R2) as 12.33 and 0.61 respectively, thereby exhibiting the robustness of the model to sustain maximum heterogeneity within the target domain. A comparison of Fe grade estimates obtained by kriging, simulation and HNN models more or less maintain similar distribution patterns that are close to the sample data. It is thus opined to carry out the grade prediction exercise employing all these three modelling approaches to obtain alternative scenarios for improved mine planning and design exercises. The techniques provide a foundation for cogent grade modelling leading to improved iron ore reserve estimation procedures.CITATION:Sarkar, B C, Singh, R K, Ray, D, Kumar, A, Sinha, P K and Sarkar, V, 2017. Iron ore grade modelling using geostatistics and artificial neural networks, in Proceedings Iron Ore 2017, pp 431–438 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 24, 2017

Significance of the body of iron oxide, which in part overlies as its hanging-wall the rich chalcocite ore-body at Mount Oxide, Queensland, has been variously interpreted by engineers and geologists who have inspected the deposit.Among the interpretations offered is the one that the body represents the residual of an original medium to low grade...

Jan 1, 1939

The term geochemistry - chcmbtry' of the earth - is almost limitless in its implied subject, but of recent years a major trend of research in this field has been towards economic application in the search for mineral deposits, and in particular for those of some ofthe less common elements for which a demand now exists.Geochemistry is in a state of slow transition from a purely descriptive subject to a fundamental science concerned with the relationships that exist between the distribution of the elements in the earth's crust and the physical characteristics of the atoms of those elements. The progress achieved promises a set of basic principles which will relate the atomic characteristics of an element to the physico-chemical conditions that make for its dispersion or concentration. This means that, given a geological map of an areasufficiently detailed for the physico-chemical conditions existing in past geological eras to be deduced, there is the possibility that the relative distribution throughout that area of any element present, and its likely mode of occurrence, could be predicted from a consideration of its atomic characteristics.Since the atomic characteristics of the elements are becoming increasingly well defined by physical research, the attainment of this ideal of prediction depends upon:(a) the strengthening of geochemical theory; and(b) the development of petrological and mineralogical methods of assessing the conditions of temperature and pressure prevailing in geological formations at various stages in their history.The other prime requirement is a d.etailed geological map - a requirement that is all too often lacking.The fact that there has been very little "geochemical approach" to problems of economic geology in Australia should not be taken to mean that there is little point in trying to develop such an approach here in as active and as rigidly scientific a manner as possible. The degree of success that has attended the attempts so far made, to which reference is made below, suggests the reverse, particularly in view of the relatively slight cost involved if the investigations were properly organised on a centralised basis. There are three aspects of geochemistry that are directly applicable to the search for economic minerals.(a) The classic technique of the prospector can be made more sensitive and reliable by the use of modern equipment coupled with the application of geochemical theory to geological and structural data. The case of the rare alkali elements (see below) is givenhere as an illustration of the way in which the distribution of elements can be predicted from the first principles of geochemistry, thereby replacing the prospector's dependence on his "sixth sense" that enabled him to suggest that a certain area of formation was"favourable" for the occurrence of a certain type of mineral deposit.At its best, this sixth sense amounted to an almost subconscious correlation of all relevant associations and typical occurrences of the particular mineral experienced by the prospector during his...

Jan 1, 1950

Author's Note: Since the paper on "All-Flotation at North Broken Hill Limited" was read and discussed, the metallurgical results obtained have conclusively justified the adoption of the All-Flotation treatment.At present the shipping grades of lead concentrate produced from North mine ore range between 74% and 75% Pb, carrying approximately 43 oz. Ag and 4.5%-5% Zn. The lead recovery in lead concentrate is recording 95%-96% of the lead content of crude ore, and the milling and treatment cost on 6400 tons crude ore perweek of 96 hours has dropped to 6s. 3.6d. per ton on ore. With an increased ore tonnage, and with a new mill, considerable further reduction in costs is certain.New flotation machines, with 30 in. vertical depth of overflow (instead of 42 in. depth), are now being tried for the secondary granular treatment, with advantageous results. The treatment to-day is practically the same as that outlined in the paper, excepting that additional concentrate is returned for retreatment in the existing units.(Signed) A. LOWRY.Mr. T. A. READ: The author states (page 356 of Proceedings, No. 79), "The sulphide ore itself was then comparatively coarsegrained, a fact which permitted ready concentration of the galena contents by means of jigs, tables, vanners, etc."

Jan 1, 1931

Ore sorting is a high capacity, low cost method of pre concentrating ores and in some cases of producing a marketable concentrate. In most cases it is applied to run of mine material, immediately after primary crushing and screening in sizes ranging from 10 mm to 150 mm. Recent developments in bulk sorting of friable uranium deposits have resulted in machines capable of handling fine materials with sensing and separation being achieved on a zone by zone basis. Modern ore sorting machines rely on the synchronous operation of four internal subsystems, feed presentation, sensing, data processing and separation. A variety of different sub systems is available which can be combined in various forms to produce sorters capable of handling a wide variety of mineral types. The benefits in using ore sorting cover a wide range of situations and are applicable to both established mines as well as new mining ventures. Reduced operating costs, increased productivity, capital savings, energy and resource conservation and environmental issues are all part of the reason why ore sorting is finding rapid acceptance in today's mining industry. The suitability of different ore types for pre-concentration using anyone of the variety of ore sorting systems can be quickly established using computer based techniques which require only small samples of the materials under investigation.

Jan 1, 1980

A study of the electrolysis of PbS in molten PbCl2 showed cathode efficiencies which increased with current density at fixed sulphide concentrations, and decreased with increasing sulphide concentration at fixed current densities. The anodically produced sulphur dissolved rapidly in the melt, the rate increasing with temperature and sulphide concentration. Experiments with diaphragm cells, made to determine the relative effects that dissolution of lead and sulphur have on the cathodic current efficiency, demonstrated that dissolution of sulphur was the major contributor to the lowering in efficiency.

Jan 1, 1973

By H Firdausi, I Pasek, T Chenier

The Grasberg Block Cave (GBC) Mine is one of the future underground mines of PT Freeport Indonesia (PTFI). Located in the remote highlands of Papua, Indonesia, the GBC mine is scheduled to start production in 2017 reaching its peak production capacity of 160 000 t/d in 2023.In order to reach planned production capacity, the GBC mine will utilise an ore handling system consisting of rail haulage, crushing and conveying. The rail haulage system will utilise over 20 km of track while crushing is accomplished by way of three gyratory crushers each with a capacity of 3300 t/h. Nine conveyors operating in two parallel systems, each system over 3 km in length, will move the ore from the crushers to the stockpiles. These systems require a network of larger tunnels and mass excavations to accommodate the planned production facilities.This paper will describe the ore handling system, tunnel and mass excavation methodology as well as some of the challenges encountered with ground conditions and excavation quality during the execution of the project. A combination of lateral and vertical development methodologies and equipment, including drill jumbos, mechanised raise climbers and specialised ground support equipment, have proven successful in the development of a quality ore handling system.CITATION:Pasek, I, Firdausi, H and Chenier, T, 2016. Development of the ore handling system at the Grasberg block cave mine, Indonesia, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 599–608 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

Bioleaching of Weathered Saprolite - Heavy Metal Adaptation Mechanisms of Aspergillus foetidus Nickel laterite ores remain important to the future supply of Ni and Co as they contain the bulk of known nickel and cobalt reserves (80 per cent and 90 - 95 per cent respectively). Current commercial extractions of Ni and Co from nickel laterite ores are energy intensive and operational costs are high. Microbial leaching of oxide ores has the potential to offer a much needed step-change in the technology for processing laterite ores. Biological leaching of low-grade nickel laterite is based on a non-traditional leaching of oxide minerals using heterotrophic micro-organisms. The organisms solubilise metals by excreting organic acids; these acids then form complexes with heavy metals. Optimisation of the process in in-situ application, however, has been hampered by the toxicity of the heavy metals that are being leached by the organisms. Our recent study has shown that organisms are able to develop tolerance towards heavy metals by adaptation. This study examined the extracellular metal detoxification mechanisms of A. foetidus in 0.2 per cent (wt/v) to 0.7 per cent (wt/v) of weathered saprolite ore. To support our analysis, FTIR, CHNS and microscopy were used to confirm the participation of specific functional groups in the extracellular detoxification process.

Sep 13, 2010

By S Thomson, M Lovitt, T Purvis, C te Kloot, T Nguyen, Z Liu

Ernest Henry Mine (EHM), located in north-western Queensland, is an underground copper/gold sublevel caving operation currently producing over 6 Mt/a of ore. The mass mining method of sublevel caving (SLC) used at EHM involves systematically blasting a series of uphole rings in parallel ore drives and drawing the broken ore using a top-down approach. Each ore drive contains multiple precharged rings to prevent having to charge in close proximity to the brow of the previously fired ring; however, the current initiation system still involves ‘hooking up’ all detonator lead cords of the first precharged ring. The unstable nature of a rill and working close to a brow presents hazards to personnel completing the hook-up process. There is also a business risk of ore loss when damaged ground support completely prevents access to the next precharged ring. If the hook-up step could be eliminated, the risk to personnel and the business would be significantly reduced.EHM engaged Orica Mining Services in 2016 to trial their WebGenTM 100 – wireless electronic blasting system (WEBSTM) for the first time in an underground mining environment. Having successfully signal-tested the equipment, two test holes were initiated, followed by a single production ring and then multiple production rings. In total, 30 production rings were successfully fired underground at EHM in 2017. To do this, WEBSTM was successfully integrated into EHM’s current charging and firing process, resulting in no business delays or loss to production. None of the 30 rings required hooking up and all were initiated from the surface with no personnel underground. A high level of ownership from all personnel involved ensured the trial was a success, and provided scope for wireless detonators to be used successfully on a large scale – both at EHM and other sublevel caving operations. WEBSTM is now a proven example of technology that can be used to improve safety in the mining industry, through eliminating the need for personnel to work in hazardous areas.CITATION:te Kloot, C, Liu, Z, Purvis, T, Thomson, S, Lovitt, M and Nguyen, T, 2017. Improving safety through technology – Orica wireless electronic blasting system trials at Ernest Henry Mine, in Proceedings 13th AusIMM Underground Operators’ Conference 2017, pp 39–50 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 16, 2017

This technical note describes a problem with WANG82, a ventilation network analysis programme. The problem was highlighted by Renison Ltd when using the programme on large, complex networks. Under certain circumstances the programme produced incorrect results or failed to converge to a solution.

Jan 1, 1986

By Greaves M. C

X-ray fluorescence spectroscopy used for the analysis of mill samples results in improved control of flotation concentrators.Techniques and equipment for sampling pulp streams, filtration and drying, grinding, briquetting and X-ray fluorescence analysis of samples have been developed.The current methods in use permit the analysis for lead and zinc in six pulp samples within 30 min total elapsed from the start of sampling. The X-ray method gives a precision at least equal to the former routine wet-way assay methods.The equipment is used also for pilot plant control, as a means of solving complicated analytical problems and in the rapid qualitative analysis of exploration samples.INTRODUCTIONIn milling and concentrating operations, classical methods for the assay of lead and zinc have been mainly of use for accounting purposes and for the post-mortem examination of plant operations, but have been of little value for rapid mill control. Where attempts have been made to apply these methods to control assaying, it has been necessary to modify the procedures and introduce short cuts which have tended to reduce their reliability.Even with these shortened procedures, the time taken to obtain a limited amount of information rendered them of little value for the control of milling operations where sudden, large fluctuations can occur. In recent years, a number of new and rapid analytical techniques, based on physical rather than chemical principles, have been introduced.These include direct reading emission spectroscopy, x-ray fluorescence spectroscopy and atomic absorptionspectroscopy.

Jan 1, 1964

By G Tripp, G Lorusso

The Velvet gold orebody (153 Koz Au) is located near the Kanowna Belle gold deposit in the Boorara Domain of the Kalgoorlie Terrane, a subdivision of the Archaean Eastern Goldfields Superterrane (Swager et al, 1990). Gold mineralisation at Velvet is hosted within an intrusion of intermediate composition that broadly follows a sub vertical hanging wall splay of the Fitzroy Shear Zone.Velvet was discovered in 2003 during an underground exploration drilling program targeting potential strike extensions to the Kanowna Belle deposit. Diamond drill hole KDU1595 returned a downhole intercept of 36 m grading 4.6 ppm Au approximately 500 m west of the deposit and at a vertical depth of 700 m below surface in the immediate hanging wall of the primary Kanowna Belle host structure, the Fitzroy Shear Zone. Subsequent drilling completed following the initial discovery, from both surface and underground collar positions, failed to replicate this result.In 2014, KDU1595 was resurveyed gyroscopically and the mineralised intercept correctly located. Additional drilling was undertaken to follow-up the repositioned discovery hole. Challenges included poor drilling angles through the Fitzroy Shear Zone, excessive deviation during drilling and the unknown geometry of the target. Navigational drilling helped to successfully penetrate the Fitzroy Shear Zone and in April 2015, drill hole KDU3234 returned a significant downhole intercept of 45 m grading 5.6 ppm Au.Additional drilling success resulted in a decision to develop a 600 m drive to serve as a dual-purpose access for further exploration and mining. This was a potential risk considering that the orebody geometry was unknown and all significant drilling results were clustered within a 50 m × 50 m panel. Development commenced in June 2015 and the first ore cut taken in April 2016. Geological mapping and structural interpretation, together with multi-element and spectral analysis of drill samples has enabled several other target areas to be identified for exploration. The Velvet mining area is critical to continued production at Kanowna Belle. Geological understanding must advance as mining progresses to ensure continued resource growth and optimal extraction of reserves.CITATION:Lorusso, G, Rogers, J and Tripp, G, 2017. Velvet underground exhumed – discovery and development of a new mining front at the Kanowna Belle gold mine, in Proceedings Tenth International Mining Geology Conference 2017, pp 169–174 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 20, 2017

A BRIEF DESCRIPTION OF TELPHER HANDLING AND BLAST FURNACE EQUIPMENT.The various sections will be described in the following order:(a) Telpher Handling and Storage Bins.(b) Blast Furnaces.(c) Slag Disposal.(d) Bullion Handling to Drossing Kettles.(e) Copper Drossing.(f) Copper Matte Furnace.(g) Bullion Delivery to Refinery.(h) Fume Handling.(a) TELPHER HANDLING.The telpher installation is an all-steel structure designed to carry out the work of assembly and delivery of charge materials to the blast furnaces.To simplify description, the primary telpher installation will be divided into three (3) sections:-No. 1 Section. 395 ft. long, running north and south, parallel to the water front, and so located that coke, which...

Jan 1, 1937

By N Rivera, A Music, C Cisternas

In an underground mine operated with panel caving and subjected to high stresses, geotechnical events such as collapses or rock bursts are fairly recurrent. Both situations can involve risks for people, considerable production losses and increasing operational costs.This paper discusses an operational methodology for the recovery of the undercutting front carried out at El Teniente mine, which uses panel cave mining with post-undercutting, after the occurrence of severe damage due to a seismic cluster. The main objective of the recovery of the undercutting front is to prevent the spread of the collapse to the production level, risking the operational continuity. The methodology is the result of repairs that were carried out in the year 2014 at the North Reserves sector from El Teniente mine. Its characteristics are an undercutting front of almost 1000 m long, with the presence of relevant structures and faults, high stresses and high seismic activity.The practical implementation of the proposed methodology was successful since it prevented the spread of the damage, completely recovered the undercutting front and avoided production losses during the execution of the repairs. Also, considering the origin of the damage and the operations associated to the subsequent recovery of the undercutting front, in this paper we discuss the main control variables to be measured. These variables should allow any operator and short-term planner to take action in mines operated with conventional panel caving in a complex geotechnical environment.CITATION:Rivera, N, Music, A and Cisternas, C, 2016. Recovery of the undercutting front in a mine with conventional panel caving – case study at North Reserves sector, El Teniente Mine, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 713–722 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By P González, J Videla, E Córdova, I Gottreux

Currently, underground mining of deeper massive deposits with lower grades, harder rock conditions in high strength environments, entails difficulties in caving, fragmentation and seismicity of the orebody.So far, the use of preconditioning (PC) with hydraulic fracturing (HF) has shown positive results in terms of seismic response and caving performance, while PC combined with explosives aims to weaken the rock mass, causing an additional effect on fragmentation.In particular, mines commonly referred to as ‘supercaves’, operated by caving methods, have the need to integrate mine to plant processes, where rock fragmentation appears as a key tool. In fact, it implies making mining and comminution processes more efficient to the plant and for mines, it justifies the search of innovative solutions in drilling and blasting techniques to precondition the rock mass. The following paper aims to show the feasibility of numerical blast modelling to weaken the rock mass using explosives, mainly through sensitivity analysis applied to designs to minimise bias and uncertainty in the results. It is shown how the presence of structures, their geometry and in situ stresses influence or interfere with the PC method being used.From the work, it is concluded that better knowledge on the application of explosives weakening allows specialists to strengthen numerical models associated with every design and therefore previously validate their applicability, helping to understand complex phenomena such as the propagation of mechanical waves in non-elastic heterogeneous media. In this sense, it is understood that while there are studies (Sanchidrián, Segarra and López, 2006) showing that the transfer of energy in the rock mass could be even greater in a confined environment, the more competent rock mass and higher in situ stresses interfere mostly on the effectiveness of a technique using explosives.CITATION:Gottreux, I, Córdova, E, González, P and Videla, J, 2016. Preconditioning modelling and explosives effectiveness in block caving, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 683–688 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By A Paz, H Lehto, M +stholm, I Roitto

Nowadays, the demand for a finer grind in minerals processing has set new challenges within the industry, particularly for grinding technology. Apart from a finer grind, energy efficiency is also a key driver in optimising comminution technology.Stirred milling technology, already proven in many other industries, delivers a modern, sophisticated, flexible and energy efficient grinding solution for fine and ultra fine grinding in minerals processing. Fine grinding technology is utilised particularly in concentrate regrinding to complete the liberation of valuable minerals after the first stage of concentration. Maintaining the correct particle and particle size distribution of the regrind product is crucial for downstream process performance. Stirred milling technology offers the unique possibility for online control and optimisation of the regrind product particle size. This paper describes the basis of this online control possibility and discusses the implementation of stirred milling technology in minerals processing, particularly in regrinding applications. The paper will also outline management and control of fluctuations in feed rate tonnages as well as particle size fluctuations in concentrate regrinding.CITATION:Roitto, I, Lehto, H, Paz, A and +stholm, M, 2013. Stirred milling technology - A new concept in fine grinding, in Proceedings MetPlant 2013 , pp 190-201 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 15, 2013

By A M. Sherwood

The Otago and Southland lignite deposits represent by far the largest known fossil energy resources in New Zealand. Despite their size they have remained virtually untouched since exploration in the 1970s and 1980s defined their extent. In total there is an estimated 10.9 billion tonnes of lignite in 13 defined fields in Otago and Southland. Much of the exploration work only targeted seams at shallow depth and it is highly probable that there are further resources at depth in the fields that have been explored to date.   L&M Lignite Limited (L&M) holds exploration permits over a number of lignite deposits and is currently engaged in pre-feasibility studies to investigate the potential of the lignites for gasification. L&M is focussing its studies on the Hawkdun and Ashers-Waituna deposits. Coal quality in these deposits, particularly Ashers-Waituna, is highly suitable for gasification. In total the two deposits contain 1647 Mt of potentially recoverable lignite. L&M has engaged a variety of consultants to progress this project. The Hawkdun and Ashers-Waituna deposit databases have been re-evaluated and the resources remodelled. Further drilling has been carried out and the coal quality database has been expanded. The baseline project is to develop a mine to feed a plant that will produce liquids, specifically low-sulphur diesel and naptha, using the Fischer-Tropsch process. The project anticipates a staged development of 10 000 barrel per day units, each requiring mining at the rate of 12 700 tonnes of lignite per day. The production of other products including ammonia-urea, methanol, hydrogen and electric power is also under study.

Jan 1, 2005