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By R Justa Cámara, J María Bertrán Llop

"The need for suitable geotechnical characterisation of the rock mass for underground construction is evident. The enlargement project of Railways of the Generalitat of Catalunya (FGC) in Sabadell is a patent example.In general, it is uncommon to encounter problems in the identification and characterisation of certain relevant weak rock formations, which affect project designs. However, all materials should be properly studied, as mischaracterisation can lead to a suboptimal design, resulting in construction problems during the course of the work.Good quality rock is generally not difficult to characterise, but this is not the case for Quaternary or Tertiary cemented soils. Geotechnical investigations based on boreholes do not provide enough information because samples are often badly damaged during the drilling process, if appropriate techniques are not taken. The samples can be altered and may not be representative of the in situ?material.The design and construction of the extension to the FGC line in Sabadell highlighted the importance of the characterisation of Quaternary and Tertiary cemented soils, in particular their rigidity and its underestimation. The twin tunnel project had a total length of 5.1 km, including five stations with 3.5 km excavated by tunnel boring machine (TBM). The remaining 1.6 km was constructed using cut and cover methods. The TBM portion of the tunnel had a bored diameter of 6.83 m with an internal radius of 3 m and 0.25 m thick precast concrete segments. Much of the tunnel alignment passed through and was affected by the presence of certain stiff layers of Quaternary cohesive materials.In this paper the TBM challenges faced will be discussed in detail. In particular:  TBM excavation rate reductions and overheating problems due to the required excessive thrust and torque floating problems in the lining due to nil earth pressure over the rings and the development of an improved, controlled setting time mortar to address this issue block-in and block-out methodology for each station, in some cases with internal blocks to prevent earth pressure drops and soil scouring the relevance of performing simpler solutions, for example, hyperbaric interventions to examine the cutter wheel tools when it has been shown that interventions under atmospheric conditions were equally feasible the implementation of conventional bivalve machines as standard procedure for excavation of diaphragm walls in stations, where in fact, hydrocutter machines or pile boring machines may have been required, given the mechanical characteristics of the materials to be dug out.CITATION:Justa Cámara, R and María Bertrán Llop, J, 2014. Underground extension of the FGC line in Sabadell through cemented soils, in Proceedings 15th Australasian Tunnelling Conference 2014, pp 161–170 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Sep 17, 2014

By Hendon G. W, Carr F, Jiang Y

A vast majority of the operating longwall sections use shield-type face supports to provide ground control in the United States. As a co-operative research program between the University of Alabama (UA) and Jim Walter Resources, Inc.(JWR), a joint research program is underway to study interaction of shields with surrounding rock masses. A series of analyses on the response of shields are performed using monitored data at a longwall face in a deep coal mine. In this paper, various effects of parameters, such as leg pressure, setting load, developing load, maximum loading rate, pressure in capsule, and convergence between canopy and base, are discussed and recommended as stability indices. A microcomputer program is being developed for instantaneous interpretation of the shield monitored data, and for giving warnings of potential problems. The preliminary results define the effects of the setting load, developing load, and rate of developing load or leg closure rate. The objective of the study is to understand the shield characteristics and their interaction with surrounding strata in real time, then develop a reliable program for maintaining longwall stability.

Jan 1, 1992

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

Jan 1, 1997

By S J. Schafrik, E S. Gilliland, E C. Jong, J Waynert, C W. Weiss

Two commercially available through-the-Earth (TTE) communications systems were evaluated at an active underground longwall mine in West Virginia. One system utilises magnetic field (H-field) antennae while the other system utilises electric field (E-field) antennae to achieve communication. A large portion of this mine is overlain by an inactive gas-oil field composed of densely spaced wells. This feature provided a unique opportunity to determine the impact of cased wells on both TTE technologies. The following communication modes were investigated: surface to underground, underground to surface, underground to underground and real-time two-way communications. Standard deployments of the TTE systems using the manufacturer’s recommended procedures were able to achieve clear communications between underground and surface locations under certain circumstances. As a result, the design and deployment that will optimise TTE transmissions are unique to each system and to the specific area of the mine. This field study was conducted as a part of a larger multisite evaluation of available TTE systems in an effort to determine their operational sensitivity. The performance of these two TTE systems suggested that one may be preferable over the other depending on the conditions present during deployment.CITATION:Jong, E C, Schafrik, S J, Gilliland, E S, Weiss, C W and Waynert, J, 2015. Pairing magnetic and e-field through-the-Earth communication systems based on mine site conditions, in Proceedings Third International Future Mining Conference, pp 245–252 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 4, 2015

By A Gustafson, G Shekhar, P Boeg-Jensen

The amount of material extracted from each blasted ring in sublevel caving mines is vital when deciding the overall mine production target. The orientation of the production drifts is normally perpendicular to the strike of the orebody, and rings are blasted from the hanging wall side to the footwall side in a retreating manner. For an inclined orebody, a given ring will contain different amounts of material based on its relative position along the production drift. This layout creates a distinctive problem with respect to the extraction ratio optimisation along the axis of the production drift. This paper describes the current drawpoint control strategy practiced at LKAB and presents the variation of drawpoint performance parameters along the production drifts. It uses automatically generated data from a bucket weighing system that measures tonnage drawn per bucket, and it classifies the blasted rings into four zones based on their relative position along the production drift. It considers the loading procedure for blasted rings at Kiirunavaara mine and analyses the variations in drawpoint performance along the production drift. The paper finds that although the current draw control strategy is sensitive to ring position along the drift, it could be modified to optimise the final extraction ratio.CITATION:Shekhar, G, Gustafson, A, Boeg-Jensen, P and Schunnesson, H, 2016. Draw control optimisation along the production drift in sublevel caving mines, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 241–250 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By M D. Melville, B C. T Macdonald, J Dixon

The acidic and metal rich waters that are generated from acid sulfate soil (ASS) drainage can have damaging impacts upon ecosystems. The most obvious impact has been the discolouration of water and occasional fish kills. ASSÆs produce these acidic and metal rich waters when pyrite in soil is oxidised. Land management techniques are an essential long-term requirement to minimise the amount of pyrite oxidation. Acidic water that cannot be prevented through land management can be neutralised by other techniques. Powdered lime is the most common material in agriculture that is applied directly to soils and waters. Powdered lime can be expensive and if applied dry it may aggregate. Since the aggregated particles of lime are larger they could sink rapidly in the water column and not react. In waters with high concentrations of dissolved iron and aluminium the lime particles may become coated with a metal oxy-hydroxide precipitate, which will decrease its reactivity. A unique lime-dispensing machine, the Waterways Lime Spreader, has been developed to neutralise acidic waterways. The Waterways Lime Spreader can produce a solution rich in fine lime from larger limestone fragments. The current size of the machine means only 3.5 grams per second of limestone can be emitted. This output will neutralise low acidity waters, however, for high acidity waters the time for neutralisation can be long. More reactive chemicals such as hydrated lime or increasing the size of the machine will reduce this neutralisation time. The Waterways Lime Spreader is also capable of producing slurry mixtures if powdered materials are required. Trials with the Waterways Lime Spreader were undertaken in part of the Clothiers Creek catchment located in northeast NSW, Australia. A small drain with a water volume of 4 m3 was neutralised with crushed limestone to pH 6.9 from an initial pH of 2.6 and an acidity of 902 mg/L CaCO3 in 160 minutes. In comparison a drain with a slightly larger volume of 6 m3 that had an initial pH of 3.2 and an acidity of 753 mg/L CaCO3 was neutralised with hydrated lime to pH 11.8 in five minutes. The Waterways Lime Spreader has been used successfully to neutralise water from acid sulfate soils. It is expected that future applications of the machine may be for the neutralisation of acid rock drainage or acidified lakes.

Jan 1, 2003

By F Owusu-Mensah, F Nsarko

The Obuasi Mine has been in operation for the past 100 years. Within this period a host of mining methods have been employed during its various changing phases. The causes for the changes are multiple, ranging from orebody capability, dynamics, technology, safety, economics, production levels, geotechnical, etc. Mining methods applied have also ranged from timber square setts, conventional cut-and-fill, shrinkage stoping, sublevel caving, mechanised cut-and-fill, longitudinal and transverse open stoping, and lately longitudinal retreat mining method (LRMM).The Obuasi Mine has a world class underground resource potential of about 27 million ounces. A third of this is in reserve. The orebody is subvertical, with multiple lodes and with widths ranging from 1.5 - 40 m. It stretches along 8.5 km N/S strike. A cursory statistical analysis on the various resource ore widths show a higher percentage (60 per cent) of the resource being within the range of about 1.5 - 10 m. Thus a high proportion of the resource is amenable to narrow vein mining methods. This has enhanced the choice of LRMM as an alternative method. Also, with the increasing cost of mining over time, LRMM, which eliminates expensive and time consuming footwall drives, will become far more advantageous as compared to the transverse/longitudinal open stoping methods which currently constitute about 40 per cent of the total underground production.The LRMM currently delivers about 20 per cent of the Obuasi Mine production. Plans are underway to improve total underground production from the current average of 160 000 tpm to about >180 000 tpm in the next few years and about 20 - 40 per cent more in the foreseeable future. Recoverable ounces will also increase from 26 000 to about 34 000 ounces per month. The proportion of LRMM in the business plan is also expected to increase from the current modest level to about 50 per cent. Despite its tremendous advantages in terms of economics and productivity, the method is facing some challenges during its inception. The objective of this paper is to highlight some of the emerging challenges and their effect on production and offer possible remedies that could mitigate the current and possible future challenges.CITATION:Nsarko, F and Owusu-Mensah, F, 2012. The Obuasi mine - longitudinal retreat mining method application and challenges, in Proceedings Narrow Vein Mining 2012 , pp 59-70 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Mar 26, 2012

By G Swayn, J Harpley

Spent Pot Lining (SPL) is an unavoidable waste product of the electrolytic process in the smelting of aluminium. SPL is considered to be a hazardous waste in various countries because it contains significant quantities of absorbed fluoride along with traces of cyanide. The disposal of SPL has been primarily in landfill because of difficulties in the development of a successful techno-economic SPL treatment process. Increasing concern about SPL landfilling practices is resulting in regulations in some countries to ban this form of disposal. As a consequence stock piling of SPL is occurring in an increasing number of countries pending the development of a successful treatment process. In 1992 Portland Aluminium investigated a SPL treatment process based on pyrometallurgical technology and approached a company called Ausmelt in Dandenong, Victoria, Australia, to ascertain if their submerged lance technology furnace process would be suitable to treat SPL. This approach resulted in Portland Aluminium, Alcoa and Ausmelt personnel working together on trials during 1992 - 1994 in Ausmelt's demonstration furnace to produce a slag and off gases containing hydrogen and sodium fluoride. The trials also evaluated the effect of oxygen enrichment to increase the concentration of hydrogen fluoride and the ability to recycle sodium fluoride particulate produced as the furnace off gases cooled. Other separate developmental work by Portland Aluminium, using CSIRO, resulted in the production of aluminium fluoride from the offgases from the pyrometallurgical process. The results of these projects influenced Portland Aluminium and Alcoa to authorise up to $A26 400 000 in December 1995 to construct a Research and Development processing facility to treat SPL at Portland. The Portland Aluminium unique gas treatment process converts hydrogen fluoride in the furnace offgases to aluminium fluoride in a multistage fluidised bed reactor, designed by Portland Aluminium. The aluminium fluoride produced in the reactor has been trialed successfully in Alcoa's aluminium smelting process as a replacement for imported aluminium fluoride. The installation in mid-2001 of a slag granulation system has enabled the production of a granulated vitreous slag having leachability qualities that conform to Victorian EPA criteria for the unrestricted use of the granulated vitreous slag from 'The Alcoa Portland SPL Process'. The unrestricted use of the granulated slag successfully completes 'The Alcoa Portland SPL Process' which treats the hazardous waste material SPL and converts it into non hazardous useful products.

Jan 1, 2002

By D Thornton, R Hodson, D Sprott

Blast fragmentation size distribution and thus blast design have been found to have a direct impact on the load and haul cycle through excavator dig time and bucket payload. Previous studies have demonstrated that by reducing the excavator dig time and increasing bucket payload, significant improvements can be made in both productivity and unit cost. Simulation work reported in the literature indicates that a 20 per cent improvement in dig time may result in only a three per cent improvement in load and haul productivity and unit cost. At the same time, a ten per cent improvement in bucket payload will directly translate to a ten per cent improvement in load and haul productivity and unit cost. Based upon these findings, extensive laboratory and field work have been undertaken in the past to correlate blast fragmentation distribution to bucket payload. In contrast, the literature reports limited studies quantifying the impact of blast fragmentation on excavator dig time. Field work was conducted at Placer Dome Asia PacificÆs Granny Smith Mine (Wallaby Pit) in Western Australia, concentrating on quantifying the impact of blast fragmentation on the dig time of a Liebherr 994 hydraulic excavator (shovel attachment with 14 m3 bucket). Fragmentation was assessed for each truck load of material using the Split Desktop system, while the excavator cycle analysis was conducted manually. Measured fragmentation P80 (fragment size at which 80 per cent of material passes) values ranged from 200 mm to 1200 mm. The field study investigated the impact of various fragmentation parameters (P20, P50, P80, cumulative per cent passing 250 mm size fraction, and uniformity index) on the average and total dig times. The results indicate that the fragmentation P80 provides the best correlation to average dig time (total dig time divided by the number of bucket passes to load a truck). The total dig time was found to be dependant upon the fragmentation P80 and the number of bucket passes to fill a truck. Monte Carlo simulation results, based upon these relationships, indicate a 26 per cent improvement in average dig time and a 12 per cent to 46 per cent improvement in total dig time (bucket passes ranging from 4 to 8), with a change in fragmentation P80 from 600 mm to 200 mm.

Jan 1, 2003

By C J. Moran

Given that the mining industry is committed to sustainable development principles and that Australia is experiencing changes to the regulatory environment that aim to modernise the water sector and encourage adoption of consistent approaches, there is a well defined need for the Australian minerals industry to develop a water accounting framework. This requires: key terms and definitions for water metrics for use in the Australian minerals industry that is consistent with the wider water sector, a suite of metrics representing key components of an operationÆs water balance, a calculation method for some of the metrics, and a reporting protocol. This paper presents the methodology that was used to derive these four components. Existing accounting frameworks were reviewed and key terms and definitions that were consistent with current requirements were proposed. A calculation methodology was developed to obtain some of the key indicators and variables that cannot be easily measured directly (water loss through evaporation is an example). The adopted terms and definitions dictated model development, with the conclusion that a systems approach was the most effective calculation process. To test the proposed definitions and calculation methodology, values for water metrics were derived for eight sites. The proposed framework and definitions could deal with the specific situations selected as case studies. The associated calculation methodology produced complete accounts at various levels. Some elements of the accounts could be directly checked against available data and simulations. The framework captured well variations in the reuse efficiencies; reuse efficiency could even vary for similar processes. It is concluded that this preliminary accounting framework provides a consistent language and metrics for quantifying and communicating water management, both at the intersection of the site with the surrounding landscape (through detailed reporting of site inputs and outputs) and within operational activities. Using this consistent framework for quantifying and documenting water use within an operation will provide a platform for compiling and comparing minerals industry water use with other sectors. This may support benchmarking activities within regions or companies and help demonstrate leadership amongst water users in water resource stewardship. The approach presented here is applicable to a wide variety of mining and processing activities, and biophysical environments, and can be adopted as the first step towards developing national water accounts for the Australian Minerals Industry.

Jan 1, 2009

The Mount Isa mine in North West Queens- land produces a total of nearly 10 million t/yr from separate copper and silver lead zinc orebodies. Sampling information is mainly obtained from diamond drilling on 30 to 40 metre centers in both types of orebodies. For the copper orebodies the majority of the core is analysed for copper content using a non-destructive bulk analyser developed by the Australian Atomic Energy Commission. The diamond drill core in the silver lead zinc orebodies is usually sam- pled as sawn half core and assayed in the com- pany laboratory using a variety of methods dependent upon the level of metal content and/or the elements required. Underground development is sampled where additional information is required to improve the ore reserve estimate. The copper areas are sampled using a standard 2.0 m by 2.0 m chip sample of the wall. The chips are taken on a 250 mm spacing. Lead areas are sampled using a 100 mm wide by 4 mm deep channel over intervals determined by the area geologists. The massive, irregularly shaped copper ore bodies are mined as large sublevel open stopes and pillars. Ore reserve estimation on both a production unit and global scale is routinely carried out using a geostatistical system developed in-house and running on a Sperry 1100 mainframe computer. Copper grade, tonnes and the Kriging var- iance are estimated at points on a user defined grid. The Kriging program uses 10 m assay composites from diamond drill core and underground chip samples. One average (rela- tive) variogram is used throughout the main copper orebodies. The validity of using an average variogram was verified by the original geostatistical study undertaken in the late 1970's.

Jan 1, 1987

By T J. McGavin

This paper examines the fire life systems implemented in two existing tunnels and discusses whether the standards used were appropriate. It focuses on the Terrace Tunnel as this upgrade and refurbishment is complete.The New Zealand Transport Agency (NZTA) manages six tunnels on the State Highway network with two of these built in the last seven years. The Terrace Tunnel, opened in 1978, was refurbished with modern fire life safety systems in 2010–2012. An interim upgrade of the Mt Victoria Tunnel, opened in 1931, was also carried out at this time.In present times, few existing tunnels have undergone significant upgrades and refurbishments. The Terrace Tunnel required: new power supplies, control buildings, lighting, wall panels and jet fans, a deluge system, emergency exit lights and way-finding lights, a public address (PA) system, a radio rebroadcast system, lane control sign (LCS) and variable message sign (VMS), an over-height detection system (OHD) and a new tunnel management system.In the absence of suitable guidelines, various standards were used to carry out the refurbishment. The Austroad Guide to Road Tunnels and AS4825 Tunnel Fire Safety, although designed for new tunnels and not specifically intended for existing tunnels, provided a framework. A multi-criteria assessment of risk (MCAT) was carried out to determine the systems to be provided.The Terrace Tunnel has perhaps set a benchmark for refurbishing existing tunnels as few projects of this type have been completed recently. This paper examines the process and the outcomes.CITATION:McGavin, T J, 2014. The refurbishment of the Terrace and Mt Victoria Tunnels, Wellington, New Zealand, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 87–94 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

By T A. Short, P L. Brown

Kestrel Mine co-disposes around 1.5 Mt of fine (2SO4/t and to date around 9 Mt has been deposited. The mine plans to co-dispose of approximately 39 Mt of material, creating a dump with a maximum height of 35 m and a disturbance footprint of 260 ha. Benign materials suitable for rehabilitation are severely limited and no successful rehabilitation strategy has yet been demonstrated. A rigorous measurement and modelling program is resolving outstanding issues associated with acid rock drainage (ARD). The objective of the program is to develop and validate a strategy for dump rehabilitation that will control ARD and allow for mine closure. The strategy includes using a soil cover to reduce water flux into the dump to control the overall oxidation rate and to control effluent release. Monitoring of the oxygen distribution and water flux in the uncovered material commenced in February 2001 and monitoring in waste under a trial cover commenced in February 2002. Carbonaceous and sulfidic oxidation rates have been measured. Initial modelling indicates that the carbonaceous material has the general effect of slowing the rate of pyrite oxidation, lowering the maximum sulfate production rate and extending the time to oxidise all the sulfides. The combined approach of measurement and modelling provides a sound basis for assessing the performance of the trial cover and predicting the long-term quality and quantity of effluent at the base of the rehabilitated waste dump.

Jan 1, 2003

By van der Walt TJ, van Deventer JSJ, Reuter MA

Owing to their complexity, many metallurgical processes are difficult to model fundamentally, and as a result more attention has been focused on the use of artificial intelligence techniques to simulate these processes. In this paper recent advances in the use of neural nets to model processes not amenable to conventional methods are discussed. These include the application of a new modelling methodology based on the use of neural nets for the dynamic simulation of metallurgical processes, the use of conventional techniques in conjunction with neural nets to simulate gravity separation circuits, as well as the detection of gross errors in variable measurements by means of a neural net representation of the relation between measurement and constraint residuals.

Jan 1, 1993

By M Heidari, M Ataei

Today, the selection of a mining method is a multi-criteria decisionmaking process, with many factors in this process connected to each other. These trends do not have a high degree of confidence. In this study the analytical hierarchy process was used to select the suitable mining method for anomaly No 3 of Gol-Gohar iron mine of Iran. The results of this study show that gathering all existing information from the exploration stages and using AHP technique, the open pit mining method is the mining method for this anomaly.

Jan 1, 2003

The paper reviews the majority of associations and institutions which operate in support of the Australian mineral industry. The review covers historical aspects of each organisation and the current activities and management structure. The linkages between the organisations through membership are briefly discussed. The paper comments on the evolution of the formation of the organi- sations and the networks between them that do exist and operate regu- larly. Rationalisation or a process to consider formation of new groups to fill gaps in the network are recommended for further research.

Jan 1, 1988

The advancements achieved in rapid tunnelling in the 60's and 70's have been notable. It is unfortunate that shaft sinking has not enjoyed equivalent advances and there are many good reasons why this is so. Technical and commercial considerations have held back development and continue to do so despite the increasing urgency in the search for minerals and energy. By the careful selection of an appropri- ate project and the application of specialist engineering the Bdard took advantage of a unique opportunity to apply a mechanised shaft borer in field conditions.

Jan 1, 1981

By L Neems

In conjunction with Orica Explosives, Worsley Alumina have managed a program of continuous improvement to their cap rock blasting over the last two years. Blasting conditions are challenging because of the hard and shallow nature of the material. Blasting costs must be controlled and the environmental consideration of noise and dust is critical. Worsley have sought to determine the optimum balance between drilling and blasting costs and fragmentation. As the cap rock has few inherent weaknesses, loader productivity is strongly controlled by the degree of fragmentation from blasting. The optimum blasting solution is also constrained by maintaining airblast levels at the surrounding residences below 115 dBL . The major blast design parameters optimised during the program were stemming type, stemming length, powder factor and blasthole diameter. A series of carefully managed trial blasts were fired during 1997 and 1998 to quantify the effect of these parameters. Fragmentation was digitally measured using OricaÆs Powerseive G technique. Shovel productivity, airblast levels and blasting costs were also quantified. As a result of the project, Worsley now have an increased knowledge of the key parameters driving blast performance, and their consequent impact on downstream processes, the environment and total mining cost.

Jan 1, 1999

By J M. Galvin

History attests to the catastrophic consequences that fire, explosion and contaminated, noxious andirrespirable atmospheres can have for workplace health and safety in underground coal mining. It also confirms that fires and explosions present the greatest risk of partial or total loss of underground mines and equipment and that this risk continues to materialise. The design, implementation, operation and maintenance of the mine ventilation system are core controls for managing the hazards associated with these risks, both for preventing them from materialising and for mitigating their consequences if they do materialise. These are most effective when embedded in a risk management approach.

Oct 12, 2022

Since the early 1990s it has been evident that electricity demand has outstripped investment in generation and transmission. At the same time, concerns were being expressed about the risks associated with the run down of the Maui gas field. It is axiomatic that the necessary investments firstly require a stable and supportive regulatory and fiscal environment, and secondly that such investments have long lead times. A unwillingness by successive Governments to fund the necessary infrastructure, however, lead to the profound restructuring of the electricity with the ultimate objective of transferring the investment risk from Government to the private sector. Successive power crises since 1992 result from a failure to put in place a regulatory framework necessary to provide the environment to allow the private sector to make the needed investments within the necessary timeframe. The electricity sector has now stabilised to the extent that the regulatory risks associated with generation investment have been reduced. This does not mean that risk has been eliminated, however, and both economic and environmental issues will continue to constrain investment in some power proposals particularly those in the South Island and especially any South Island coal or gas thermal proposal. This is firstly because of several very simple economic issues:  1. while the South Island may have significant coal resources it lacks a significant electricity market; 2. except for a six to ten week period in a dry year, low cost hydro will price any large-scale South Island thermal out of the market which will restrict any large scale thermal station to a dry year and/or peaking load; 3. except for a six to ten week period in a dry year, export capacity on the HVDC link to the North Island is constrained to around 964 MWe (and 482 MWe from North to South in dry years); and 4. construction of any new thermal plant in the northern half of the North Island will price any South Island thermal station out of the market. There are also significant environmental issues associated with the establishment of a large scale thermally based power station in the South Island. Because the South Island lacks any large scale economically proven gas reserves, the environmental constraints considered are those associated with coal production. A coal mine dedicated to power generation will have significant on-site impacts associated, in particular those associated with disposal of opencast overburden and visual impacts. These will, however, be partially offset by the relative remoteness of such sites to population centres. What cannot be offset, however, is the off-site impacts, in particular, CO2, SOx and NOx emissions, water disposal and acid mine drainage.

Jan 1, 2003