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By E Wargem

The conventional method of underground mining involves a process known as drilling and blasting to excavate valuable ore bearing minerals through the load and haul process. Drilling and blasting processes are completed for both the development of the tunnels used to access the orebody and for mining out the orebody itself. The former being called development drilling and blasting, and the latter production drilling and blasting. In either development or production drilling and blasting, the effective recovery will be largely reliant on the extraction of the initial void created in each blast cycle. In development tunnelling, the initial void is commonly known as a Burn Cut. The initial void created in production drilling and blasting has many names such as a Slot, Winze, Rise or Raise. There are drill patterns and charge designs used to create these initial voids in the production cycle. This paper discusses common slot or winze designs for production drilling and blasting; and various critical design criteria for these. The document also aims to provide a process for completing desktop reviews of current patterns employed on-sites and provides an initial guide in a process for improving the recovery of a slot, winze, rise or raise in underground mines.

Mar 29, 2023

By C S. Kelsey, J R. Kelly

Australia is presently enjoying the fruits of a booming iron ore market. Expectations are that market strength will be supported in the short to medium term by increasing feedstock demands from steel mills, as world economies rebuild post-Covid-19. However, as cost and environmental pressures increase the longer-term market outlook will be dominated by product quality. The ‘flight to quality’ will place increasing demands on direct shipping ore miners as they compete to maintain their standing in the iron ore marketplace. China will progressively disengage from its dependence on Australian imports, leaving miners under increasing pressure to boost product quality and diversify outlets globally. Australia has vast deposits of low-grade magnetite ores located mainly in remote and arid regions of the continent. This paper proposes a dry grinding and magnetic separation process to produce premium concentrate grades from the low-grade ores, to assist in meeting future product quality demands. The premium grade concentrates could be either blended with lower quality direct shipping ores or marketed separately. The proposed dry concentration process involves the pairing of Vertical Roller Milling (VRM), a mature technology widely used in the cement industry, and Planar Magnetic Separation (PMS), a new methodology, which has been developed to the threshold of commercialisation by the private Australian company Cyclomag P/L. Two laboratory prototype planar magnetic separators with field strengths of 1800 gauss and 6000 gauss have been built and tested on a range of magnetite ore types over the past three years. In each case, following grinding to liberation sizes, a combination of roughing and cleaning operations has produced pellet grade concentrates. Vertical roller milling has competed successfully with conventional media milling in grinding cement clinker, limestone and blast furnace slags. A key advantage of dry VRM/PMS processing is its potential adaptability to stepwise modular development, which can minimise initial capital investment, while generating early revenue streams to cope with unpredictable market volatility.

Nov 8, 2021

By K Devencorn

The development of robust, economical transport infrastructure has been identified as a key driver to sovereign economic growth. Notwithstanding the value of undeveloped mineral resources, unless they can be brought to market they are of little value. Within a global context, the continent of Africa probably faces one of the most significant transport driven economic development programs as countries strive to unlock their much sought after resources.The UN’s Africa Review Report on Transport (United Nations Economic and Social Council, 2009) provides an excellent context for the issue facing African countries and the potential for investment in transport to solve many of the intrinsic problems they are confronted with. With little exception, economic development in Africa is very likely to be driven ‘off the back’ of transport development – and more specifically from heavy-haul rail as a means by which economic wealth can be derived from export of the continent’s vast natural and mineral resources to the world. The report found:transport is a key driver of economic development and poverty reduction;road transport is the most dominant mode in Africa;the ‘Cost to Market’ of African goods is hampered by the reliance upon road transport;the cost of road transport is not just economic – 19 per cent of the world’s road fatalities were recorded on African roads;African railways are seen to be disjointed and under-utilised;Africa’s ports are key to export trade - yet only six ports (three in Egypt, and three in South Africa) handle about 50 per cent of the continent’s total container traffic;the cost of transport is increasing making African trade even less competitive; andsignificant negative impacts of Africa’s reliance on road transport – health, and greenhouse emissions.We understand that mining the resource is only part of the solution – it has to be put to market at a competitive landed cost.Most African countries face huge costs associated with transport development and ongoing operation – in many cases beyond their available resources.The Australian rail industry has faced and solved many of these challenges.

Nov 22, 2011

By H Kurth

Mining geologists utilise many technologies to map, sample, measure, model and plan before and during the mining process. Predicted ore quality rarely corresponds with feed quality determined by process operators. Objectively measuring conveyed material quality accurately in real time avoids disagreements over mined ore quality and generates opportunities to improve mill feed quality.This paper discusses the well proven PGNAA (prompt gamma neutron activation analysis) technology used in the GEOSCAN-M elemental analyser that is ideally suited to measuring composition of primary crushed conveyed material in real time. Representative, continuous, fully penetrative measurements are unaffected by particle size, belt speed, mineralogy, dust or layering on the conveyor. Material can be directed to processes or stockpiles by utilising measurement increments of typically one to five minutes and then activating diverters to direct increments to the correct location. Waste, low-grade or deleterious material can be rejected to waste dumps or stockpiled for later processing. Material meeting a product specification can bypass unnecessary processing. Paybacks in weeks have been achieved for such applications. Process operators are able to control the blend of ores fed into the mill to improve processing performance and use measurements for ore reconciliation and metal accounting. Utilising the technology to upgrade ore quality after mining and before processing is beneficial in improving plant economics.The technology has been successfully utilised in base metals, ferrous metals and industrial minerals. Mining geologists can determine ore quality being produced in real time and modify the ore quality prior to milling. Ore feed quality measurements are also used by process operators in optimising plant performance. The elemental content can help identify geometallurgical domains as well as other major changes in quality, which may affect processing. This paper outlines proven applications and case studies and proposes some innovative applications.CITATION:Kurth, H, 2017. Measuring ore quality using real-time on-belt elemental analysis – more than grade control, in Proceedings Tenth International Mining Geology Conference 2017, pp 213–220 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 20, 2017

By S Graskoski

The allocation of boggers and trucks at Telfer’s sublevel cave mine is currently assigned by manual techniques, with decision-making primarily dependant on the judgement of the operators and mine control. Field observations indicate that allocation decisions could be improved by establishing a systematic approach to dispatch. An investigation into the current state of technology determined that no currently available solution would provide a tool to make optimal decisions for the Telfer dispatch challenge.In an underground sublevel cave (SLC) environment, the destination decision is fixed and the source is variable, so open pit and block cave solutions are not relevant. Newcrest underwent a development venture with an external vendor to develop a novel production dispatch algorithm and user-friendly software program to make allocation decisions in a systematic way with consideration given for the true complexity of the operation.This new production software, nicknamed Dingo (for Dispatch ‘n’ Go), is a smart way to assist forepersons and mine control operators in their day-to-day roles of planning shifts and allocating trucks and loaders to optimal locations during shifts.CITATION:S Graskoski, 2017. Dingo – an optimisation tool to solve complex short interval control at Telfer underground mine, in Proceedings 13th AusIMM Underground Operators’ Conference 2017, pp 261–266 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 16, 2017

By N Madani

Linear interpolation of geo-related variables is important to different aspects of mining engineering such as long and short-term mine planning. The ore deposit description attained from spatial modeling of blast hole datasets has been widely taken into account, particularly, for short-term mine design and grade control, so as to define the ultimate destination of a mined block. It is approved in practice that making the wrong decision leads to losing a huge amount of money for choosing the destination of a mined block. In the case of complex ore deposits, the issue of estimation of variables in the region is questionable and somehow tedious. Due to this fact, modeling those complications in the co-spatial behavior of the grades in multi-element deposits prompts one to employ enhanced geostatistical techniques. Traditional approaches of this purpose such as polygon, inverse distance weighted and even (co)-kriging approaches, are incapable of reproducing those complexities such as non-linearity, heteroscedasticity and geological constraint that frequently exist among the variables of interest in those deposits. Another difficulty in employing those linear interpolations in grade estimation is smoothing effect, in which the estimated grades are over and under estimated. CITATION: Madani, N, 2018. 3D estimation of variables with complexity in cross-correlation structures, in Proceedings Complex Orebodies Conference 2018, pp 49–52 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 21, 2018

By A Lyon

The minerals industry, as many other industries, has a wealth of indicators and a thriving æindustryÆ in their development, measurement and reporting. It is natural for this to occur for a new endeavour. However, perhaps it is time for the community concerned with minerals industry indicators to ask whether we have achieved a certain maturation whereby proliferation of indicators may be replaced by a more disciplined and constrained approach. In many natural and engineered systems, thermodynamics provides well-understood and tested constraints. Indicators that are uninterpretable in this framework are not considered acceptable. This paper provides initial evidence that such a formalism may be possible for mine sustainability. The formalism developed does not claim to have the rigour of thermodynamics. However, it does provide a first step towards formalising selection of indicators on the basis of their true comprehensibility. A set of simple equations is developed that represent the conventional five capitals (actually we use six because we separate renewable and non-renewable natural capital) and how they are linked. This is coded into a simulation model. The base equations are then used to develop a system level indicator of sustainability performance, which is asserted to be a reflection of the mineÆs reputation. We define a least sustainable state, termed æmaximum revenue mining (MRM)Æ in the system and define the degree of system sustainability as how far the system is from the MRM. We then introduce a simple mechanism whereby different actors can express differing views on the emphasis for the distance from MRM. Sustainability thereby becomes a non-unique thing that is defined by a distance from MRM and a set of preferences across the capitals.

Jan 1, 2009

Metallurgical accounting can be defined as the monitoring of the valuable metals from the time the ore is broken at the primary crusher until the time that we have the saleable products and residues. The overall purpose of metallurgical accounting is to provide management with up-to-date inform- ation that can be used to control mining and metallurgical oper- ations. The decisions that are taken on the basis of the information that the metall- urgical accounting system provides should result in improved control and, ultimately, increased revenue. The current state of accounting is a result of an extended evolutionary process and will continue as process plants bec- ome more sophisticated. Differences in mine æcall factorsÆ and grade control reconciliation can lead to frustration between the siteÆs geoscie- ntists and its metallurgists leading to a level of distrust in the mill grade. Metallurgical accounting is not included in sufficient detail in undergraduate courses and the acceptable industry standards have developed based on what is considered acceptable to industry personnel and consultants. There is now the AMIRA P754 Metal Accounting, Code of Practice and Guidelines Handbook or reference manual. Computer based databases and spreadsheets have transformed tedious bookkeeping into an important management tool. Over time these standards have improved with developments in analytical procedures, weighing technology and sampling. This paper provides anecdotal examples of problems and improvements observed over a number of years within the gold industry in Australia and overseas.

Jan 1, 2009

By T Alexieva

Since the early 1900s the geotechnical community has investigated every significant failure of a tailings dam, improved our knowledge of the behaviour of the tailings storage facilities, developed analysis methods, compiled lessons learned, and committed to zero failures. The rate of occurrence of tailings dam failures has reduced since the 1980s, however, failures continue to occur and continue to surprise us. At BHP, we have decided to take an approach to the tailings management that is similar to the approach to safety. We are looking at ways to eliminate, substitute, separate or engineer around the hazard (tailings dam failure). As such, our ultimate long term goal would be to eliminate the need for new tailings facilities. Unfortunately, we have not developed yet technologies for extracting many of the common metals and minerals without producing tailings. Our shorter term goal is to substitute the current conventional slurry tailings facilities with less risky dryer facilities. We are working with vendors and research organizations to develop technologies that can be efficiently applied on a large scale. At the same time, we are committed to using the best available engineering to reduce the risks associated with our existing and new conventional tailings facilities. The best engineering can be achieved by people with the appropriate education, experience, attention to detail, discipline and authority. We have implemented a system of governance to make sure, we have the best engineering applied to all our facilities, considering the specific conditions at each site.This paper presents the current tailings governance process at BHP, and the initiatives that were undertook towards achieving a zero failure goal. CITATION:Alexieva, T, 2018. Tailings governance, in Proceedings Mine Waste and Tailings Stewardship Conference 2018, pp 2–7 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 23, 2018

By R Bearman

The importance of crushers in the mining industry declined with the introduction and resultant dominance of AG and SAG based circuits, but the recent move to consider more energy efficient circuits has caused the industry to re-consider the role of crushers.Different types of comminution equipment have different efficiency in the way the energy is applied in the size reduction process. Because of the general trend towards more sustainable production processes and emission of carbon dioxide, energy use has become more important. To fully understand how crushers can contribute to optimising the energy application in comminution circuits, detailed models of process performance are required. Such models need to take into account the mechanical design factors and how the crusher performance changes in response to feed conditions, the control strategy utilised and the wear of the crusher liners.It is also critical to analyse the total circuit, not just the individual crushers. To fully understand the performance of the entire circuit, dynamic simulation should be applied. Without the holistic understanding of the total circuit and the incorporation of transient effects, the full circuit performance cannot be adequately determined and the true energy picture will not be quantified.Based on detailed mechanistic modelling of crushers by the authors and the application of dynamic simulation, the opportunities to optimise the use of crushers for energy efficiency are examined.

Aug 8, 2011

By C Katonga

Mindola mine is currently the deepest mine in the Zambian copper belt. Stoping is currently active to 1330 m below surface with long range plans indicating future production from 1590 m level. The orebody is tabular and dips between 55o to vertical. The thickness varies from 8 to 14 m. The vertical crater retreat method of mining was first introduced at Mindola mine in the late-1980s following several trials that helped define the design criteria for its application. Over the last ten years the method has been continually modified to improve safety and maximise ore production. For example, due to the weakness of some rock units within the orebody formation and the instability of the hanging wall, the last VCR slices are usually between 8 - 10 m thick, and efforts are being made to strictly apply shrinkage method in order to reduce dilution. Recent advances in mining technology in the areas of equipment, blasting techniques, rock mechanics and materials handling have been employed to increase the overall productivity of the mine. Large down-the-hole machines capable of drilling 165 mm diameter blast holes, up to 80 m long are used in stoping. Each stope produces up to 20 000 tonnes of ore per month and can last for three months. Heavy systematic ground support of VCR development has significantly enhanced safety for mining crews and equipment. Crater mining has not only improved productivity and enhanced safety, but also overcome various problems associated with conventional sublevel open stoping previously employed at the mine. This paper discusses the technical and operational aspects of vertical crater retreat mining at Mindola mine during the last ten years. The changes in mining method are often accompanied by changes in mine design, blast design, mining equipment, ground support and operating practices.

Jan 1, 2000

By G Haywood

This paper presents the evolution of the planning, scheduling and mining practices at the Yilgarn Star underground. The paper will concentrate on the principals of æjust in timeÆ and the impact of such practices on mine planning and scheduling and subsequent development and production. The principals of æjust in timeÆ were developed to minimise the impact of creep and time dependent failure of the ground in the ore and hangingwall zones. These zones are characterised by altered schistose material with inherent weak rock strengths compounded, at depth, by the maximum principal stress of the virgin stress field approaching the UCS of the rock mass. Yilgarn Star underground has and continues to develop the æjust in timeÆ methodology to ensure the continued viability of the mine. The mine continues to use longhole open stoping mining methods to ensure high levels of productivity with minimal dilution and at an acceptable cost of production.

Jan 1, 2002

By J Loeb, D Thornton

Blast movement measurement is a key component of grade control, enabling mines to carry all of the precision involved in locating ore blocks, through a chaotic blast, to production. A monitoring system was developed about ten years ago so that mine operation personnel can measure three dimensional movement in every production blast. Research has shown that blast movement is always highly variable with a significant non-deterministic component. The consequence is that modelling will be inaccurate and therefore optimal ore recovery can only be achieved by direct measurement of blast movement.Three dimensional movement vectors are measured at discrete locations in the blast. If blast movement is only measured at one location in a blast pattern, data is severely limited and has all of the inherent inaccuracies of modelling a variable population. It is intuitive that the accuracy of defining the post-blast ore block mark-ups are proportional to the number of movement measurement locations, however increasing the number of monitoring locations causes increases to the direct operating costs of the mine.A cost-benefit analysis is used to explore the optimal number of monitoring locations. Using the method described in this paper, an automated selection of the number and location of blast movement monitors are analysed against the value of recovered ore compared to the control, for each trial.CITATION:Loeb, J and Thornton, D, 2014. A cost benefit analysis to explore the optimal number of blast movement monitoring locations, in Proceedings Ninth International Mining Geology Conference 2014 , pp 441–450 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 18, 2014

By T A. J Hopper, S Mukkisa, M L. Johns, K T. O’Neill

Technological advances the sensor design and performance for logging while drilling (LWD) instrumentation offer considerable opportunities in iron ore exploration. Here we focus on the development of a nuclear magnetic resonance (NMR) LWD tool. NMR is an advanced geotechnical logging technology capable of providing in situ measurements of the porosity, pore size and permeability of the formation of interest. The ability to provide real-time characterisation of iron-ore systems is beneficial to both drilling operations as well as real-time formation evaluation. The development of an NMR LWD tool for mineral exploration drilling has previously not been achieved due to the significant technical and environmental challenges associated with the design and operation of such a tool. The tool outlined in this work is designed to work in reverse-circulation (RC) drilling systems. As such, the tool needs to be compatible with the RC drill-string, as well as being highly robust to survive the shocks and vibrations experienced during RC drilling operations. The magnetic physics of the probe must be capable of measuring at the appropriate depth into formation whilst being subject to the array of motions experienced during drilling operations. Furthermore, conducting accurate NMR measurements in an iron ore formation is challenging and the measurement methodology must be tailored to characterise the magnetic environment. The tool also requires high-powered electronics capable of operating the necessary pulse sequences for excitation and acquisition. The resultant tool design must therefore optimise the inherent trade-offs which exist between the physical components (ie mechanical structure, magnetic components and electronic hardware) in order to operate appropriately whilst not hindering RC drilling operations. Current experimental analysis of the prototype indicates that the current probe design exhibits the required measurement specifications and is nearing field testing. Future work will look towards commercialisation of the instrument.

Nov 8, 2021

By J P. Burr

The Waterview Connection will complete a strategic Auckland motorway route linking the south, west and north. The project will include 2.1 km of ‘undrained’ driven tunnels, 500 m of drained cut-and-cover tunnel and tunnel portals.The project is aligned beneath a stream valley of Oakley Creek, which is incised through alluvium and in places overlain by landfill, between Mt Albert volcano and a ridge formed in alternating sandstones and siltstones. The resulting topography, geology and hydrogeology of the tunnel alignment are complex.The Assessment of Effects required estimation of the likely settlements resulting from the tunnel construction and assessment of their effects on the buildings, services and other features. A conservative approach was taken when estimating settlements in order to provide an upper bound estimate of the consequent effects. There are three sources of these settlements: mechanical settlement from the tunnel excavation, mechanical settlement from the displacement of retaining walls and consolidation settlement from the groundwater drawdowns during construction and, in some cases, in the long-term.The settlements from these sources were calculated independently and then combined to identify the most critical effects. These combined settlements were used to assess the potential damage to the buildings, services and other features above and around the tunnels. The combined settlement results generally followed the anticipated trough shape centred on the underlying tunnel but with some noticeable effects relating to the underlying geology and hydrogeology.The effects on buildings were typically assessed as negligible with some areas of very slight to moderate damage predicted. Effects on services are anticipated to be minor but some large and older pipes will require specific monitoring during construction. A monitoring programme is proposed to allow the actual settlement and effects to be compared to those estimated with appropriate responses should those effects significantly differ.This paper describes the methods used to calculate and combine the settlements and assess their effects.

Mar 8, 2011

By J A. M Luz, A T. Bernardes

HukkiÆs law is an empirical law, which does not take into account several events of energy loss during the fragmentation processes. Since experimental results are very difficult to obtain, for a large range of fragment sizes, the verification of the law is very difficult. The relation between fractures and fragmentation processes with fractal geometry was proposed some decades ago. Empirical laws known in this context show basic features of fractal geometry, mainly self-affinity and power law behaviour. Thus, in this work a model was developed to simulate the fragmentation process and to check the relation between energy consumption and fragment sizes. The model is represented on a regular lattice. Links can represent pathways for fracture processes. The events of fragmentation have energy given by a probability distribution function. In the model there is no mass loss. Propagation of fractures occurs as self-avoiding random walks on the regular lattice.

Sep 26, 2011

By N Power, A D. Costar

There has been significant growth in mining and energy exploration in South Australia, which has identified new major potential opportunities. This sector generates significant economic value to the state and their support remains a priority for the state government. The delivery of this economic and associated community value to the state is dependent on the mining and energy sector being able to access reliable water supplies.The vast majority of priority areas for the mining and energy sectors are located in areas that have traditionally been of low priority from a water-use perspective and hence, data and knowledge levels are generally low.Recent studies have identified a potential increase in demand for water in the mining and energy sector for potential developments from approximately 40 GL to over 170 GL over the next ten years. The studies found that water and water infrastructure is the second highest proportion of planned infrastructure capital investment by resource companies. The South Australian GovernmentÆs Plan for Accelerating Exploration (PACE) initiative (PACE 2020), also identifies addressing the issues of location, use and management of South AustraliaÆs water resources as a key priority for the growth of the mining and energy sector.The Department of Environment, Water and Natural Resources (DEWNR) has developed the facilitating long-term outback water solution (FLOWS) initiative. DEWNR is currently undertaking a suite of programs to provide groundwater information at the regional scale to better target water supply options for mining and energy developments and community water supplies.The Goyder Institute for Water Research has leveraged significant research investment of $3 M to develop methodologies to interpret airborne geophysics to map groundwater sources.The FLOWS Initiative will provide key content for the PACE Water Program and will also assist in the development of water supplies for remote far north communities by identifying alternate groundwater sources to improve water supply security.This paper will discuss how developing an appropriate science and knowledge base will encourage and secure development where appropriate, enable prudent decision-making and policies regarding water allocation, accounting and licensing, whilst ensuring the protection of environmental assets.CITATION:Power, N and Costar, A D, 2013. Finding long-term outback water solutions, in Proceedings Water in Mining 2013 , pp 191-196 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 26, 2013

By M J. Pejovic, S BoÜevski, I Miljanovic, M Hudej, A Milutinovic, A Petrovski

The paper deals with the problem of managing the supplies of consumables (energy resources, lubricants, explosives, explosive supplies, tires, spare parts, etc) in mines. After the introductory remarks and comments, a general stochastic model of supply, relating in general to the dynamic programming method is presented. A selection of stochastic supply model for experiments and research by the authors of this paper is not a coincidence, based on of their long experience, showing that this type of model is the most suitable to provide support for decision-making and management of supplies of consumables in mines.In order for the problem?of?consumables?supply?management to be reviewed, in whole and objectively from the aspect of risk, experimental tests of the stochastic model in real conditions were performed at the limestone open pit mine æZelenikovecÆ near Skopje, the capital of Macedonia. The scope of the experimental research enabled reliable analysis. The results obtained confirm the efficiency and reliability of the stochastic model and two separate manipulative-operational positions regarding its application, which may have an important influence on the optimisation of supplies.

Sep 26, 2011

The current economic climate and demand for iron ore has resulted in mine operators being prepared to accept aggressive slope designs and associated failures provided that they can be quantified (ie volume of failure and clean up costs, etc) and incorporated into the mining costs, at a feasibility study level. This has numerous implications for pit slope design/geomechanics. Typically when geotechnical engineers conduct slope stability modelling a single value, usually the average or mean value for model input parameters (ie structural orientations, material properties and hydrological conditions) are chosen. The implications resulting from using a single value for model input parameters will vary depending on how the modeller has chosen the value, ie should the modeller choose a mean value from a log-normal distribution of material strengths an optimistic representation of the stability may eventuate, consequently if the designer decides to conservatively downgrade the values by a nominal factor, a pessimistic representation of slope angles may occur, which would result in excessive stripping and mine development costs. A more realistic and representative way to model the inherent variability of geological/geotechnical conditions would be to do so probabilistically. Whereby the modeller can assess the variability of the geological structure as observed/recorded during the core logging process and a similar approach for the material strength properties. The final model output would be a distribution of factors of safety in relation to overall slope angles, ie probabilities of failure for individual slope angles could be determined. This output (graph) could be modified by the mining engineer to incorporate mining costs as well as clean up costs for the respective slope angles and associated failure volumes, ie probabilities of failure. The author intends to provide a detailed overview of the processes involved in deriving a geotechnical design, ie; starting from the data collection phase (core logging/face mapping), through to the data interpretation and formulation of slope parameters; determining the variability and uncertainties associated with each of the process; ensuring that it is adequately captured in the model input parameters; and how the mining engineer could utilise this information to derive final feasibility study mining costs.

Jan 1, 2009

Valuers of mineral properties should be aware that accountants are a major user of their opinions of value. Reliance by accountants can range from obtaining comfort that book values in balance sheets are not overstated to establishing values by which to assess the fairness of a takeover offer. Accountants using mineral property valuations clearly can't be expected to have the same level of expertise as the valuer and ""second guess"" the valuation. But they do have an obligation, under the ASC guidelines and their own professional standards, to'check the logic and reasonableness of the valuation before being able to rely on it. This means reviewing the valuation report for general sensibility, discussing the methodologies and assumptions with the valuer and being satisfied as to his competence and independence. This paper outlines how accountants use mineral property valuations, the level of scrutiny applied to such valuations and the problems commonly encountered in practice by accountants seeking to rely on them. The paper also explains how values of-mineral properties are established in company balance sheets and why these often differ, quite validly, from fair market values.

Jan 1, 1994