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The need to estimate the block size distribution of a jointed rock mass is of great importance in the design of blasting rounds to attain a pre- established fragmentation. Other Geomechanics topics, such as ,hydraulic behavior of rock-masses, as well as the determination of their strength properties, also require the accurate prediction of a rock-mass composition in terms of block size taking in due account the three dimensional interference of joints and other geologic discontinuities. In this paper, a method for computing the block size analysis of a jointed rock mass is described, using as input the common geologic data (dip and strike) of fracture planes existing in a rock bench prior to blasting.

Jan 1, 1977

By J Ta’ala, M Handyside

Mechanical sampling from conveyors has historically been a staple in the iron ore industry when information related to chemistry, sizing and moisture is required. In order to comply with ISO 3082:2009, samples can be taken either on a mass or time basis provided no bias is introduced by periodical variation in quality or quantity. With the introduction of mechanical sample carousels, you also have the opportunity to collect samples on a mass or time basis. In order to optimise automatic sample stations in a changing production environment, BHP Billiton Iron Ore (BHPBIO) has developed a simulation model that enables the various combinations of mass–mass, mass–time, time–time and time–mass to be investigated.The sample station model can utilise actual (variable) feed rates to achieve high resolution and enables the simulation of sample size variation. Cutter speeds and other settings can then be adjusted to better optimise the performance of the sample station with regards to optimal sample size as well as ensuring the sample station is in compliance with ISO 3082. The model can also assist process engineers in adjusting settings to better optimise the sample station and reduce unwanted events such as blockages. The model can be easily modified to conform to various sample station designs. This paper demonstrates the use of the model and the benefits that can be achieved.CITATION:Handyside, M and Ta’ala, J, 2014. Simulating time versus mass basis?sampling, in Proceedings Sampling 2014 , pp 155–164 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 29, 2014

By R Wedmaier

Henty Gold Mine is an underground operation producing 100 000 ounces of gold per annum. The original mining method used was flatbacking with paste fill. However, a non-entry method û uphole benching û was introduced in 1998 to recover the deteriorating crown pillars. Initial challenges were encountered, including poor drilling accuracy, difficulty in charging holes and poor rise performance. These challenges were overcome by a Continuous Improvement Team, consisting of mining engineers, supervisors and miners. Following this, the Team implemented further changes aimed at reducing ore loss and dilution. A second area addressed by the Team was development blasting, where innovative detonator technology known as the ExelTM DevelDetTM was introduced and rapidly accepted by the operators. Continued use of the ExelTM DevelDetTM resulted in a number of benefits, such as easier bogging, less perimeter damage, faster charging and hook-up and decreased wastage. Finally, improvements were made in the area of explosive handling, where competency-based training of operators was conducted and manual handling of ANFO has been significantly reduced by the introduction of the MiniMoverTM into the underground magazine.

Jan 1, 2001

By I Grewal, M Lundt

Dense medium separation (DMS) is one of several preconcentration methods used for early waste rejection from run-of-mine ores at relatively coarse particle sizes prior to additional milling and beneficiation. DMS has been used extensively in the coal, diamonds, mineral sands, base metals and iron ore industries to produce either a final product or as a preconcentration step. Laboratory scale and pilot test work at the Met-Solve laboratory in Canada has demonstrated successful separation and upgrading of other minerals such as lead, zinc, copper and lithium based ores using DMS.This paper reviews historical dense media systems, results from the pilot-scale multi-stage DMS Separator “Condor” system, as well as production plants and associated laboratory heavy liquid separation (HLS) test work on various minerals. The mineral systems tested included a lithium bearing ore and a fluorspar ore. Other minerals were tested but are not reported in this paper.Pilot plant test work on a fluorspar ore showed that 41.6% of the mass could be rejected to the tailings stream while 95.3% of the CaF2 was recoverable to the product stream. On a spodumene sample that was tested, it was possible to reject 55% of the mass to tailings while recovering over 90% of the lithium.In recent market conditions and with the decreasing grades in existing ores, preconcentration should be a consideration to maximise the value of certain operations.CITATION:Lundt, M and Grewal, I, 2017. Dense media separation – a valuable process for preconcentration, in Proceedings MetPlant 2017, pp 122–130 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 11, 2017

By C Bartle

In many operations the use of less electrochemically reactive grinding media in the first grinding stage (for example, rod milling and high aspect ratio SAG milling) is rarely considered. Therefore, in reality a plant may inadvertently be using a 'mixed' media charge. That is, whilst employing inert grinding media during secondary grinding, electrochemically active forged steel grinding media may be used in the primary grinding stage. This paper discusses the impact of such a circuit on the pulp chemistry and flotation response of a refractory gold ore. The Wiluna concentrator has two grinding circuits operating in parallel. Line 1 operates a single ball mill in closed circuit with cyclones, and utilises high chrome grinding media, while the second circuit (Line 2) consists of a rod mill (with forged steel rods) in series with a ball mill, which also utilises high chrome grinding media. The cyclone overflows from both circuits are combined to feed a sulfide flotation circuit. Pulp chemistry surveys were completed around both grinding circuits, and laboratory flotation tests were conducted on the cyclone overflows. The results demonstrate clearly that the rod mill/ball mill circuit operated at significantly lower Eh and dissolved oxygen values, while the percentage EDTA extractable iron was considerably higher, when compared to the single stage ball milling circuit. These variations in pulp chemistry had a marked negative impact on the laboratory rougher flotation response, and suggests that plant performance may be affected.

Jan 1, 2008

MIM Holdings Limited has acquired a reputation for the successful application of R&D to develop break-through technologies for the mining industry. The Isa Process tank-house technology has been licensed to copper refineries throughout the world, and almost 40 per cent of the worldÆs copper is refined using this technology. Isasmelt copper and lead smelting technology is either in use, or is currently being installed, by eight companies in eight countries around the world. Jameson Cell technology is widely used in the coal mining industry and increasingly in the base-metal industry. The IsaMills developed at Mount Isa and McArthur River made it possible to develop the McArthur River and George Fisher orebodies. This paper will address the need for innovation and then discuss the development of the IsaMill and Isasmelt technologies. It will conclude with some comments about why MIM has been so successful in developing such technologies.

Jan 1, 2002

By M Barker, H Li

The total number of tailings accidents has reduced from over 50/decade in the 1960s-1980s to less than 30/decade in the 2000s to 2010s. However, the rate of significant tailings dam failures has not been reduced. The significant tailings dam failures the mining industry experienced in the recent history include: Merriespruit, South Africa, 1994; Los Frails, Spain, 1998; Kolontár, Hungry, 2010; Mount Polley, Canada, 2014; and Samarco, Brazil, 2015. The conventional Factor of Safety approach itself may not be enough to further reduce the rate of significant tailings failures due to its limitations such as uncertainty. For example, the same factor of safety could have a vast range of annual probability of failure for different tailings dams, and insufficient consideration of failure consequence. This paper presents a risk based approach for design with the objective being to minimise tailings dam failures, especially those significant tailings failures with high consequence and low probability. This approach includes risk based design and risk management using bowtie tools. In the risk based design, quantitative analysis will be used to estimate the annual probability of failure and the tolerable failure criteria is linked to the consequence category. Bowtie analyses will be used to understand hazards and risks and identify and select independent controls that are effective in preventing and mitigating catastrophic failures. In this paper, examples of risk based design and bowtie analyses are presented and discussed. CITATION:Li, H and Barker, M, 2018. Risk-based approach for minimising tailings dam failures, in Proceedings Mine Waste and Tailings Stewardship Conference 2018, pp 397–414 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 23, 2018

By D Pienaar, B McFadzean, C T. O’Connor

Collector and frother molecules in sulfide mineral flotation are thought to have separate roles in the flotation process, where the collector selectively hydrophobizes the mineral surface and the frother adsorbs onto the bubble surface, inhibiting bubble coalescence. Molecular interactions have been observed between these molecules which allow them to co-adsorb at each of the respective interfaces, improving pulp phase recovery. This study investigated the molecular interactions between sodium diethyl dithiophosphate (SDEDTP) and hexanol, and the mechanism by which these interactions improve the recovery of galena. In this study each of the respective interfaces were investigated for the adsorption of SDEDTP. The adsorption of SDEDTP on galena was measured by UV-Vis spectrophotometry and isothermal titration calorimetry. At the air-water interface foam stability and pulp bubble coalescence was used to quantitatively discern if there are interactions between SDEDTP and hexanol. Microflotation and induction time experiments were performed to determine the effect of SDEDTP, hexanol and their mixtures on mineral recovery and bubble-particle attachment. The results of all these tests were collated to determine if SDEDTP-hexanol mixtures synergistically improve sulfide mineral recovery. It was found that SDEDTP reduced bubble coalescence in the pulp demonstrating activity at the airwater interface. Together SDEDTP and hexanol synergistically enhanced foam stability. This indicated that there are attractive molecular interactions between these reagents. Even though DTP did not adsorb onto galena, DTP-frother mixtures synergistically improved the recovery and attachment probability of this mineral. Adsorption studies with aeration showed that DTP in the presence of a frother transfers from the air-water interface to the galena mineral-water interface during bubble-particle collision. It was proposed that the transfer of hexanol through the thin film enhanced the kinetics of film thinning between the bubble and the particle by destabilising the thin film thus improving pulp phase mineral recovery.

Aug 24, 2022

By J Bean

Iluka Resources Ltd developed the Jacinth-Ambrosia Mine (Jacinth) in the Eucla Basin during 2009 and 2010. In this arid climate the operation relies on hyper-saline groundwater from a palaeochannel for process and potable water supplies. The water is hyper-saline, acidic and mildly reducing, with high ferrous iron concentrations. Ferrolysis commences on exposure of water to oxygen, resulting in increased acidity and the conversion of dissolved ferrous iron to insoluble ferrihydrite. The unstable groundwater forces a careful balance between interventions relating to maintaining pipeline efficiency, corrosion protection and processing aspects. Providing an oxidising environment at the head of the pipeline will result in the precipitation of akaganenite and goethite in the pipeline, which over time reduces pipeline efficiency. However, sending too much ferrous iron forward may reduce processing performance.The processing plant experiences changes in water chemistry in response to the variability of iron concentrations and pH within the pipeline, and the spatial and chemical variability of ore. As the main orebody at Jacinth contains little buffering capacity a source of carbonate in the overburden is carefully used to allow the cost-effective control of process water pH.This paper highlights the importance of understanding the chemistry of saline make-up water, ore, and overburden when designing water treatment facilities and heavy mineral processing facilities.

Oct 5, 2011

By N Yarahmadi

Characterization of pore pressure is critical for appropriate design of tailings dams. Furthermore, if seepage rates through tailing embankments increase unexpectedly or become uncontrolled, undesirable conditions may prevail to progress piping or internal erosion that could lead to the dam’s instability or ultimate failure. A three-dimensional seepage analysis was performed on a tailings dam using finite element method to find the rate of seepage and pore water conditions in the embankment and foundation. The results were then compared to a conventional two-dimensional seepage analysis carried out on the typical cross section of the embankment and the field data acquired from the instrumentation system. Considering the monitoring data, comparison of seepage analyses results for the two and threedimensional models, showed that the results of the conventional two-dimensional seepage analysis are significantly underestimating reality. Relying on two-dimensional seepage analyses might result in underestimation of seepage rates and impact the safe operation of tailings dams. Similarly, unrealistic prediction of pore water pressure conditions, based on simplified seepage analyses, can lead to overestimation of the rate of strength gain of material and consequently safe embankment raising rates.

Jul 1, 2021

During operations, mining and metallurgical processes may generate effluents such as tailings water, acid mine drainage (AMD) and seepage and process acid streams. Depending on the type of ore and the metallurgical process, these effluents may contain one or more toxic compounds (eg acidity or alkalinity, cyanide, ammonia and/or nitrate, heavy metals, total suspended solids (TSS), sulfate) in elevated concentrations requiring treatment before their discharge to the environment or recycle/reuse in the process. Natural oxidation of sulfide minerals present in mining wastes (eg tailings and waste rock) at mining sites may generate AMD, which is characterised as a low pH, high acidity effluent containing heavy metals and sulfate. If generation of AMD cannot be controlled and/or prevented, AMD needs to be collected and treated for neutralisation of acidity and reduction of metals and TSS to meet regulated water quality standards. It is important to note that some of these compounds may persist in run-off from mine sites, even after the mine and processing facilities are decommissioned. Treatment of mining and metallurgical process effluents can be accomplished by means of various physical, chemical and/or biological methods. The mode of process application may vary from the use of either specifically designed, controlled and automated facilities or passive systems. Lime neutralisation and precipitation is the most common method used in the mining industry to treat AMD. To reduce the problems associated with disposal and long-term storage of the resulting sludge, the use of a high-density sludge process (HDS) has become a preferred option. The use of other chemical reagents, waste or by-products from other industries, and biological sulfate reduction methods can also be considered as viable options for site-specific situations. Recently, several passive treatment systems have been designed and successfully operated, even in the cold North American climate. This paper will discuss available options and provide insights for selecting a suitable method for a given situation using case studies from projects conducted by Golder Associates around the world over the last decade.

Jan 1, 2006

Vertical retreat open stoping (VROS) is a variation of sublevel open stoping (SLOS) that has been introduced at Cannington to minimise the influence of subvertical geological structures during stope extraction. The first application of VROS is described, where structures within the stope resulted in a change in firing sequence and the extraction of two complete sublevels in a single blast. The use of electronic detonators is critical to the success of VROS and their application is described. Numerous benefits of using VROS have been identified and are described. To date, eight stopes have been successfully mined using VROS. In addition to the first application of VROS, two further case studies are described.

Jan 1, 2005

By D T. Ribeiro, J F. C L Costa, J C. Koppe

Drilling and sampling are responsible for most of the costs during mineral exploration, especially in multi-elements and polymetallic deposits, such as iron, manganese and bauxite deposits. On these deposits, often it is necessary to estimate multiple attributes at several granulometric fractions, ie distinct particle sizes. This paper investigates the effect of sampling at a close spacing grid only the head grades for the multiple chemical species in iron ore deposits. The remaining required data at the various grain sizes are sampled at a sparse grid. The derived geological model is checked for precision and accuracy comparing the output obtained against a model obtained using a complete isotopic data set including head grades and chemical analysis at each granulometric fraction analysed at all sampled positions. Among the several tested alternatives, the best procedure for dealing with the posed problem involved utilising the correlation coefficients between the grades at distinct fractions to obtain an isotopic database prior to interpolation. Cokriging was the method used, based on the intrinsic coregionalisation model. Estimates were obtained with the quality needed for the proposal of the study. Results showed that at least 50 per cent of the blocks were estimated with errors less than ten per cent relative to the grades obtained at the reference model, using only 15 per cent of the granulochemical data employed to obtain the reference model. The methodology also preserved the correlations between the attributes in their several granulometric fractions on the estimated model.

Sep 26, 2011

By M Gasparon, J Harris, T Baumgartl, D J. Williams, M Edraki, P A. Kirsch, D Rowe

RISKGATE, an Australian Coal Association Research Program-funded (ACARP) initiative, has been designed to assist the Australian coal mining industry in improving minimum standards for safety performance, efficiency, operating practice and training. The online system is innovative in that it is built upon a foundation of industry expert knowledge gathered through action research workshops, which is further supported by a broad array of industry, academic and technical resources. In operation, RISKGATE offers a continuum for knowledge transfer and communication of current practice in risk identification, assessment and management in the coal mining industry. The primary mission of RISKGATE is to focus industry attention on prioritising control management as a way to achieve acceptable risk.A Coal Mine Tailings Dam Module has recently been added to the RISKGATE suite. The key risk, or initiating event, associated with coalmine tailings dams is catastrophic failure of the dam, leading to the release of tailings and water. This can occur due to geotechnical instability of the dam itself or of its foundation, overtopping and erosion of the dam, and piping failure of the dam itself or of its foundation. Coalmine tailings dams are also prone to seepage into the foundation and through the dam, particularly during operation when large volumes of water are discharged with the tailings. The most significant risk associated with seepage is the release of potentially contaminated water to the environment. Contamination can take the form of elevated salinity, acidity and dissolved metals. Run-off from coalmine tailings can cause erosion and can also potentially contain contaminants. Desiccation of the tailings surface can result in dust generation and dispersion.The paper presents the background and context of the RISKGATE project, the need for the addition of the RISKGATE Coal Mine Tailings Dam Module, and a description of the developed module, including the five initiating events considered, their causes and associated preventive controls, and their consequences and associated mitigating controls. This paper concludes with a discussion of the ways in which Australia’s coal mining companies are starting to apply the RISKGATE body of knowledge at their sites, which will flow onto the management of their tailings dams.CITATION:Williams, D J, Kirsch, P A, Gasparon, M, Baumgartl, T, Edraki, M, Rowe, D and Harris, J, ?2014. Application of RISKGATE to coal mine tailings dams, in Proceedings Life-of-Mine 2014 , pp 219–230 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 16, 2014

By S G. Gemell

"The financial model is an integral component of any project evaluation based on mineral resources, ore reserves and (at least internally) exploration targets. Given the unity of purpose for preparing financial models for project evaluation purposes, the diversity of both format and content of the finalised models is surprising. Many models are prepared by staff or consultants who are comfortable with a particular format that may be used for other purposes, such as budget preparation or financial reporting. It is natural in these situations that the practitioner will take these models and adapt them to the purpose. The end result may or may not succeed in providing a clear, accurate and sufficiently detailed view of the project’s economic viability.When preparing a model, the practitioner should be cognisant of the interpretation and review, or audit, process. The auditor may be a consultant or employee of a bank, potential equity provider or of the project sponsor itself. Depending upon the scale of the project and the level of participation of the entity that the auditor represents, the financial model will be interrogated more or less rigorously. In any event, the end user will require the model to permit easy change of inputs and will wish to confirm that such change is appropriately and thoroughly transmitted throughout.Accordingly, there are some ‘dos and don’ts’ that can be readily applied in the creation of the financial model that will greatly assist the end user, not just in the change of inputs, but also in reviewing the model’s integrity. The less time and effort required by an auditor in this regard is reflected directly in the cost of the review process.CITATION:Gemell, S G, 2016. Financial modelling with the auditor in mind, in Proceedings Project Evaluation 2016, pp 172–180 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By R Lachenicht, J Player, A Thompson, E Villaescusa

Kanowna Belle Gold Mine is a deep, high-stress, sublevel open stoping mine located near Kalgoorlie. Seismic activity during the development cycle presented problems, including concerns regarding the exposure of personnel. A number of seismic management systems were developed and tested to monitor seismicity and control the risk. It was recognised that a dynamically capable reinforcement and support system was required to be installed as part of the development cycle to reduce the risk of exposure of the underground workforce to uncontrolled movement of rock. The performance of a new Garford Dynamically capable bolt was measured in tests performed by the Western Australian School of Mines (WASM) at their Kalgoorlie Dynamic Test Facility. Detailed descriptions of the facility and data processing were reported by Player, Villaescusa and Thompson (2004) and Thompson, Villaescusa and Player (2004). The development of the Garford Dynamic bolt is described and dynamic testing results are presented and evaluated. This bolt was implemented in the mining cycle following the testing program; the observed performance is described and assessed in this paper.  

Jan 1, 2008

By M Morey

Ok Tedi Mine is located eighteen kilometers from the Irian Jaya border in the Star Mountains, Western Province, Papua New Guinea. Sequential flotation concentrators produce a copper / gold concentrate for market, and a pyrite concentrate for environmental containment, with low sulphur tailings from the pyrite flotation sequence being discharged to river. Strict sulphur assay targets are set for the riverine discharge. Current porphyry and skarn ore blends from open pit operations at Mt. Fubilan will cease by 2017. However, drill cores indicate an economic ore body in the skarn ores surrounding and below the current pit limits. With proposed mining from a western pit wall ‘cut back’ and an eastern pit wall underground operation, potential for ore ageing in sub level cave underground stockpiles is apparent. With little information in the literature, Ore Ageing test work at prefeasibility level consisted of multiple one tonne stockpiles of -50 mm crushed rock. For the bankable feasibility study, a successful test work program was implemented utilizing 40 tonne ROM ore stockpiles composed of exposed pit extensions of future ores. Realistic ageing profiles of Skarn ores were obtained from one tonne monthly samples subjected to laboratory testing. Test work outcomes included:• Similar ore ageing profiles from both the pre feasibility study (PFS) and feasibility study (FS) programs, suggesting ore susceptibility to oxidation has greater effect in ore ageing than rock size for Ok Tedi skarns. • Laboratory rougher flotation of pyrite showed significant variation in sulphur recovery rate, suggesting three classes of pyrite floatability.• Laboratory rougher flotation of both copper and pyrite for up to 19 months ore ageing from 11 stockpiles, suggested three stages in the ore ageing process.

Aug 8, 2011

The 3.5 million tones per annum Enterprise mine is the newest underground copper mine at Mount Isa in northern Australia. At a depth of up to 2000 metres, it is the hottest and deepest mine in Australia. In situ rock temperatures sometimes exceed 60¦C requiring the installation of substantial amount of refrigeration to provide safe working conditions for mine workers. The latest refrigeration project at the mine, R67, required the design and installation of the worldÆs largest bulk air cooler and AustraliaÆs largest chilled water plant. The plant is mounted on the surface of the mine and provides 25 MW of refrigeration to cool some 580 kg/sec of ambient air to 11.4¦C. This is equivalent to the production of 6300 tonnes of ice per day. The plant was designed for high availability, as any downtime would result in substantial production losses to MIM, and also had the potential to quickly result in unsafe levels of heat stress within the underground workplaces. The bulk air cooler has been designed for a capacity of 34 MW(R), the expected ultimate carrying capacity of the 7 m vertical intake shaft. Being located well inside the tropics, technical issues such as control of thermal pulldown required special consideration. Also, the bulk air cooler had to be designed to handle whatever demand for fresh air was imposed by the mine below, with over 100 per cent variations in airflow expected, and without loss of thermal efficiency. A substantial program of risk assessment and HAZOP studies was used to protect underground miners from leaks of ammonia into the air or water circuits. Fully automatic control systems result in a totally unmanned plant that is supervised remotely. To improve efficiency, the plant is controlled by the outlet air temperature from the bulk air cooler û the first in the world to be controlled in this fashion. Engineering solutions to address environmental considerations were incorporated at the design stage through features such as the use of ammonia (a greenhouse-friendly gas) as the refrigerant, zero atmospheric discharge and a wastewater collection and re-use system.

Jan 1, 2002

By T Baumgartl, D Mulligan, R Haymont

Mining at the Mt Leyshon Gold Mine in semi-arid north Queensland stopped in 2002. Newmont Australia has recently initiated a thorough post-closure water management study of the site by revisiting the existing information and conducting new water-related investigations. The focus of this paper, which is the first publication on post-closure environmental management of the site, is an overview of the site water quality in view of the sources and spatial distribution of polluted mine water, and also the performance of cover systems in controlling water flux though mine wastes. Since the mine closed the rehabilitation of waste rock dumps and tailings dams have significantly improved water quality in the surface receiving waters. However, the Scats Stockpile, the Heap Leach and Old Plant areas, which can potentially produce acidic waters, enriched with heavy metals and arsenic, are the top management priority. Modelling of the potential transport of contaminants in groundwater needs further investigations. A detailed examination of the waters in seepage sumps showed high concentrations of manganese, cobalt, nickel and selenium, which were previously overlooked. The study also showed distinctive chemical signatures for waters at different locations: the waters draining from scats, supergene materials and waste rocks have distinctly lower pH and higher concentrations of dissolved iron, sulfate, heavy metals, Mg, Mn, U, Se and As. While, the tailings sumps are more alkaline, and are enriched in Na and Cl. The southern tailing sump is characteristically As rich. The waters draining from the supergene materials have higher Cu concentrations. Assessment of the cover monitoring systems showed that although covers pass the design criteria, automated recording of data may ignore any failure of the monitoring system. Recalibration of the moisture sensors not only showed realistic moisture values compared to rainfall data but also showed that the permanently installed system records values that are higher than those of the mobile system. Event-driven recording of data overlooks infiltration events. Besides, with a higher time resolution (daily measurements) the breakthroughs could be clearly detected. Modelling of the water balance in covers is underway and an example is given here. Newmont is currently reviewing water management options and is willing to share the lessons learned.

Jan 1, 2006

By McMahon D

The approach to valuations at the Normandy Poseidon Group is a measured and methodical process that utilises skills sourced from a number of different disciplines. Whilst being subject to a strict set of guidelines, it is also sufficiently flexible to be able to cope with the considerable variety across the resources industry. The group uses Discounted Cash-Flow (DCF) techniques extensively in order to develop a base valuation. Other external factors (eg the market) are, however, also taken into account when forming a view on value. Other methods of valuation are used in tandem or as alternatives depending on the task. DCF techniques are an important tool but would never be used in isolation. Considerable care must be given to developing the DCF analysis as its components (eg discount rate) are prone to misuse. Whilst the valuation process is quite detailed and scientific, it is really only as good as the inputs or assumptions (technical, financial, etc) that are used. The methodology used remains consistent whether the group is undertaking the corporate planning process or making an acquisition.

Jan 1, 1994