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By N Boughen, K Moffat, L Brooks, A Zhang

In 2015, Ernst and Young (EY) ranked socio-political license to operate (SPLTO) as the fifth greatest challenge to the mining sector (EY, 2015). The EY report asserts that SPLTO will continue to present a risk to the mining sector in the context of ‘increased activism, digitally connected stakeholders and politicians who need to respond to general consensus’. While there is no consensus on a definition, SPLTO is commonly regarded as the ongoing acceptance or approval of an operation by affected stakeholders (Moffat and Zhang, 2014; Thomson and Joyce, 2008) as well as those stakeholders that can affect the operation (Graafland, 2002). Warhurst (2001) relates the process of stakeholders granting SPLTO to the establishment of meaningful partnerships between operations, communities and government based on a variety of factors that build trust between stakeholders.From these accounts, we can see that understanding stakeholder attitudes about company performance and impacts on stakeholders directly affected by an operation are important in any attempts to measure SPLTO. Understanding the level of acceptance of an operation within these stakeholders provides a good proxy or outcome measure of SPLTO. Moreover, trust seems to be a central variable in the translation of these experiences of an operation into acceptance. What the mine or company does, its behaviour, degrades or builds trust with stakeholders, and this then affects acceptance (Moffat and Zhang, 2014).In addition, a strong emphasis is placed on the nature of the relationship between companies and stakeholders as influenced by inter-group interactions. It is not just what companies do well or poorly with respect to environmental impacts, for example, that will determine trust and acceptance, but how the company relates to its stakeholders at personal and group levels.These relationships between communities of stakeholders and extractive companies are dynamic. Brown and Fraser (2006) recognised the importance of industry being able to respond to the changing nature of societal approval and acceptance, arguing that ‘business must have regard for evolving social attitudes and expectations if it is to maintain its ‘social licence’’.This paper will describe a series of five pilot projects conducted by CSIRO with Anglo American in Australia and South Africa to generate a real-time understanding of SPLTO to guide more reflexive and effective social performance strategies.CITATION:Moffat, K, Boughen, N, Brooks, L and Zhang, A, 2016. Social licence in real-time – using dynamic methods to support a new kind of community relationship, in Proceedings Life-of-Mine 2016 Conference, pp 191–194 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 28, 2016

By M Spiteri, S Woth, J Caratti, K Henley

Blasting is an essentially violent process aimed to disrupt and loosen rock for productive excavation and downstream processing. Dilution of the orebody to some extent is the inevitable result, particularly in narrow vein gold mines. A small change in gold recovery is usually a strong lever on revenue generation. As a result blast designs are carefully engineered to both minimise and control the direction of rock movement. Traditionally blast designs in gold mines have used the minimum powder factor that will still permit rock excavation. This now conflicts with the recent industry trend to optimise the total process flowsheet from the mine to the mill. Numerous mines have achieved success in reducing total mining cost by increasing powder factors. Not only is explosive energy cheaper than mechanical comminution energy requirements, the increased blasting effect may deliver benefits across all downstream processes of digging, hauling, crushing and milling. Kalgoorlie Consolidated Gold Mines (KCGM) Fimiston operation is the largest gold mine in Australia, located in the heart of the Kalgoorlie Goldfields. Blast dilution has been reduced at KCGM by managing location of blast boundaries and by firing along strike to choked faces. Significant economies of scale have resulted from application of a bulk mining methods. The bench height of 10 m is the largest in the Western Australian Goldfields, and is typically mined in a single pass with large face shovels. Recent increases in production rates in both the mine and mill has been partly attributed to a 30 per cent increase in powder factor. KCGM then examined the benefit of a further 18 per cent increase in powder factor to 1.0 kg/BCM. A concern though was the impact of very high powder factors resulting in excessive blast movement and subsequently ore dilution. This was the subject of a project conducted with Orica Explosives. OricaÆsDMC(Distinct Motion Code) blast model was applied to understand the effect of not just further increases in powder factor but also blast geometry and explosive type. The modeling work demonstrated that high powder factors may be applied with minimal increase in ore dilution provided the combination of blast geometry and explosive type is optimised. These results are currently being implemented to achieve further reductions in total mining costs without a significant impact on recovery.

Jan 1, 2001

By R Durchholz, A-J Heiertz, R Schmitz

Mining of lignite is the largest bulk materials handling activity in Europe. In order to mine this lignite, with an average calorific value of only a third of bituminous coal in an economical way, highly efficient opencast mining technology is mandatory. The total continuous mining of overburden and lignite was introduced more than 60 years ago and was subsequently developed stepwise into the largest mass transport system of the world. In 2011, the Inden Mine, one of three RWE Power mines, stripped 90 Mbcm of overburden to produce 22 Mt of lignite. In total, nearly 100 Mt of Lignite was produced from the three mines of RWE Power in Germany. Beside bucket wheel excavators (BWE), several high-performance in-pit crushing and conveying (IPCC) systems, which allow the adoption of continuous mining systems, even for typical shovel and truck (S&T) operations, are available today. RWE Power assists operators considering a change from the S&T to IPCC technology, both in the planning process involving large-scale belt conveyor systems and later with operational know how transfer. In a number of cases, the challenges associated with this system change have been addressed and solved successfully. One key challenge is managing the development of skills for operating the belt conveyor systems efficiently. This paper compares the effectiveness of S&T to different configurations of continuous mining operation for an up to 170 m deep mine with a total annual output of 117 Mbcm. From the mine operatorÆs point-of-view, the quantity and skill level of staffing required for operation and maintenance are discussed in detail. The main conclusion of this paper is the larger the operation becomes and the longer the mine life is, the earlier fully continuous mining systems should be planned and implemented.CITATION:Schmitz, R, Durchholz, R and Heiertz, A-J, 2012. Change challenges for large open pit mines, in Proceedings Eighth Open Pit OperatorsÆ Conference , pp 103-110 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 18, 2012

Ventilation challenges are often encountered when an underground mine expands to new zones and it often is the case to make a thorough review of the existing system and assess immediate and future airflow needs at the desired quantity and quality. An unexpected mine plan change that calls for increased development and production from new areas can impose a strain on the existing ventilation system. Budgetary constraints can also demand creativity in design on the mine ventilation engineerÆs part. Since the addition of several mining horizons it had become obvious at the Meikle mine that something had to be done to increase airflow quantity and quality in the old main zones because most of the ventilation resources had been channelled for development in the new mining horizons. An airflow assessment of the existing system had to be performed and it was determined that the airflow quantity had to be increased by at least 30 per cent and the quality of the air had to be improved by reducing nuisance and respirable dust and at the same time reducing the airflow temperature before it was used in a few mining zones. At the conclusion of the airflow assessment it was determined that a third centrifugal fan would be installed on a new 3.05 m diameter borehole from surface to underground. By a careful study of temperature conditions over time it was determined that an evaporative cooling spray chamber would be sufficient to cool the airflow down from the high dry bulb temperatures observed down to saturation at the wet bulb temperature. At the same time excessive nuisance dust generated as a result of the airflow travelling a long way in a haulage drift will be knocked down in the spray chamber resulting in cool, clean air in the mining districts. Expansion of the existing surface ammonia refrigeration plant was out of the question for several reasons. The fact that the airflow was hot and dry meant that evaporative cooling spray chambers could achieve lower working temperatures at a very low cost compared to the expansion of the chilled water plant. The expansion of the ventilation system at Meikle mine and the use of evaporative cooling spray chambers were demonstrated to be very successful and the information presented in this paper can be of benefit to other mines experiencing the same ventilation problems as was the case at the Meikle mine.

Jan 1, 2005

By L E. Krause

This paper discusses the considerations for optimum maintenance of critical ore handling infrastructure in order to minimise the cost to the business of maintenance periods. As maintenance periods are a direct interruption to production, time is of the essence and careful management of shutdown periods is essential. The ore pass systems currently in use at Xstrata Copper û Mount Isa Copper Operations are up to 30 years old and have had significant wear over the years. The maintenance of these passes and their brows and chutes in a production situation is a challenge as it can potentially expose personnel to high risk situations in addition to the production interruptions. Some alternatives for mitigating the risk of working in ore passes including plugging and ballooning are described. Criteria are included for selecting a method for the safe entry into a given ore pass. Experience in adapting the method of ore pass plugs and some lessons learnt in the process are also discussed.

Jan 1, 2005

By R G. Barker, N Mortimer

In New Zealand, platinum group metals (PGM) occur in three main geological environments of economic interest: layered mafic igneous complexes, the Dun Mountain Ophiolite Belt, and in association with placer gold deposits. Most of the layered mafic complexes with PGM potential occur in the Median Batholith. These include the Longwood (Permian), Bluff (Permian), Riwaka (Devonian) and Rotoroa (Jurassic) igneous complexes. Exploration of the Longwood Complex discovered PGM associated with gabbroic rocks. Best assays to date include a 1 m drill intersection of 1 g/t Pt + Pd and float rock with 3.0 ppm Pt and 3.3 ppm Pd. The Greenhills complex at Bluff consists of basal dunite overlain by wehrlite and gabbro. PGM occur with chrome spinel in the basal dunite and Pt geochemical anomalies have been identified associated with the wehrlite-gabbro contact zone. The Greenhills complex has some similarities to Alaskan-Ural type complexes.Reconnaissance exploration in the Dun Mountain Ophiolite Belt has identified PGM geochemical anomalies, but no follow-up work has been carried out. During the late 1800s and early 1900s, PGM were recovered as a byproduct of placer gold mining in Southland. Placer gold prospects with PGM potential include the Waiau River, deposits flanking the Longwood Complex and some Southland beaches.

Jan 1, 2002

By P J. Sack, L V Danyushevsky

"An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation. Regional-scale exploration for sediment-hosted gold deposits is hampered by the challenge of evaluating the fertility of ancient sedimentary sequences that host these deposits. Recent developments in laser ablation inductively coupled plasma mass spectrometry allow for the evaluation of the gold fertility of sedimentary sequences using chemistry of early-formed sedimentary pyrite. We present a case study from the Selwyn basin area of Yukon, Canada, where significant sediment-hosted gold exploration has been ongoing for the last five years. Data from sedimentary pyrite in some Neoproterozoic shales are anomalous in Au and As compared to a global data set of unmineralised sedimentary pyrite. If at least some of the gold and associated trace elements in sediment-hosted gold deposits are derived from recrystallisation of early sedimentary pyrite, it follows that strata containing anomalous sedimentary pyrite should be more prospective. Based on this premise, our data clearly show that Yusezyu Formation Neoproterozoic shales in the Selwyn basin area of Yukon are a fertile source rock for sediment-hosted gold deposits, while pyrite from Nadaleen formation shales are strongly anomalous in Hg and Tl, but not Au. We suggest that the area warrants continued exploration for sediment-hosted gold.CITATION:Sack, P J, Gregory, D D, Large, R R and Danyushevsky, L V, 2015. Using sedimentary pyrite chemistry to inform regional exploration for sediment-hosted gold deposits – a gold fertility case study from the Selwyn basin area, Yukon , in Proceedings PACRIM 2015 Congress, pp 69–76 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 18, 2015

By R A. Eggleton and, P de Caritat, K M. Scott

The Portia Au and North Portia Cu-Au-Mo prospects are located on a magnetic structure called the Benagerie Ridge Magnetic Complex, comprising varying pyrite-bearing Proterozoic albitite, phyllite and carbonaceous phyllite. The prospects are covered by up to 75 m of Cainozoic sediments, which comprise from top down, surface soils, Quaternary sediments, the Miocene Namba Formation and the (Late-Oligocene?) Portia Unit.The Portia Unit is dominantly clay-rich with local sand-rich base and it fills palaeo-topographic lows and a palaeo-valley that incised into the weathered basement rock (saprolite). This sedimentary unit hosts the majority of the Au grains found at Portia, with additional Au grains also present in the underlying saprolite. The North Portia prospect comprises saprolite hosted Cu-Au-Mo, with elevated concentrations of As-Pb-V present in the northern part of the prospect. These two groups of elements are delineated using factor analysis, and are regarded as the pathfinder elements for the North Portia mineralisation.Secondary Cu minerals including covellite and native Cu are present in the lower saprolite, and are stable under reducing conditions in the saturated zone.In the upper saprolite (unsaturated), Cu, Au, As, Mo and Pb are associated with Fe-oxides, mainly goethite and hematite. Saprolite leached of Fe generally contains low pathfinder elements concentrations.

Jan 1, 2004

By Singh RN

The Bulli Coal Seam, located in the Illawarra Coalfield of New South Wales, has a long and varied history of sudden outbursts. From available information this problem has resulted in twelve fatalities over the last one hundred and one years, with over five hundred separate outburst incidents being identified. These incidents have varied in severity and intensity from the discharge of 1 to 2 tonne of coal, with a slight increase in gas emission, to the discharge of 200 to 400 tonne of coal with some 6,000 m3 of gas being liberated and large items of mining equipment being pushed 1 to 2 metres down the roadway.Geological features associated with these outbursts can be mapped on a regional and mine by mine basis, to provide some indication or warning. Similarly changes in gas content and gas composition can also be determined on a regional and mine by mine basis. However sudden geological changes (such as a 6.5 metre seam displacement within 15 metres) variations in gas content (such as 6 m3/tonne to 15 m3/tonne) and changes in gas composition (from 95% CH4 to 90% CO2) all within one mine does make the prediction or forecasting of outburst incidents exceedingly difficult.

Jan 1, 1998

Pyrite is one of the principal Au-bearing minerals in refractory gold ores. Significantly high Au concentrations of up to 5200 ppm are present in pyrite. Pyrite hosting high levels of Au is also enriched in As. Pyrite as an unwanted mineral ends up in wastes and constitutes one of the primary sources of As in the mining and metallurgical wastes. Arsenic can be readily released to the environment due to rapid oxidative dissolution of the host pyrite under atmospheric conditions. In order to determine the form and occurrence of arsenic in pyrite, micro-X-ray absorption fine-structure spectroscopy (XAFS) spectra were collected from a range of arsenical pyrite grains having different morphologies and a range of arsenic and gold concentrations. All the pyrite grains are characterised by the dominant edge aligned with As-1 valence state. In pyrite, arsenic atoms substitute for S atoms that are in six-fold coordination about each Fe atom. XAFS data suggest that As atoms occur in clusters within the pyrite structure. In addition to As-1, fine-grained, inclusion-rich and framboidal-type pyrite grains have a second As species at ~11 875 eV corresponding to As5+. This As5+ species in pyrite is highly variable and attributed to the oxidation of arsenic exposed on the surfaces of pyrite.

Jan 1, 2008

By W A. Peppin, D N. Riley, N W. Schulenburg

In June 2008, a joint airborne collection using hyperpspectral systems was tested on a single Twin Otter aircraft. This experiment was designed to incorporate two airborne hyperspectral sensors for geological and environmental projects. Mineral exploration and environmental impact statements are two areas where full spectrum hyperspectral data can document the mineralogy at the surface prior to mining operations. Many previous hyperspectral remote sensing collections were collected on a single aircraft with a single sensor. Mineral mapping using hyperspectral sensors that measure in complimentary regions of the electromagnetic spectrum is cost effective as it allows for the mapping of clays, sulfates, carbonates, feldspars, quartz, garnets and many other minerals. This report describes the experiment using the following two hyperspectral sensors: ProspecTIR, a visible near and shortwave infrared (VNIR-SWIR) sensor with 356 channels and spectral range of 0.4 to 2.5 ¦m, along with a spatially enhanced broadband array spectrograph system (SEBASS), a midwave and longwave infrared (MWIR-LWIR) sensor with 128 channels from 2.5 to 5.3 ¦m and 128 channels from 7.6 to 13.5 ¦m. SpecTIRÆs ProspecTIR system and The Aerospace CorporationÆs Spatially Enhanced Broadband Array Spectrograph System (SEBASS) are pushbroom sensors, have high signal to noise ratios, have similar swath widths and instantaneous fields of view. Examples of data collection experiment will be shown with a focus on mineral/lithologic identification and mapping along with environmental assessment in the western United States. An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation.

Jan 1, 2008

By D Wallace, H Guo, B Shen

Appropriate management of the ground subsidence induced by coal mining activities is essential. To assess the effectiveness of grout injection for mining subsidence control, time-lapse ground penetrating radar (GPR) imaging data were collected before and after grouting. The pregouting subsurface responses were interpreted to have changed after grout injection. The changes were caused by injecting the grout materials (flyash and water) into the delaminated strata and permeable fracture zones. The largest distance of the observed GPR event changes at the right end of the main profile is 132 m away from the injection borehole. Although the GPR images could not easily tell if the image changes were caused by the injected ashes or the water, it does suggest that the injection materials had been pushed at least 130 m away from the injection borehole. This is consistent with the borehole scan monitoring, which confirmed that the grout has travelled more than 90 m from the injection borehole.

Jan 1, 2006

By A Vakili

Dilution is associated with considerable direct and indirect costs in underground open stoping operations. As shown in previous works, an improved ability to predict dilution enables the economic risks associated with unplanned dilution to be reduced. Depending on the width of the orebody and depth of mining, the economic performance of an open stoping operation can become even more sensitive to dilution. It is shown in several well-documented studies that as little as 1 per cent of additional dilution can impose millions of dollars of lost profits per annum. Optimisation of a stoping operation is therefore largely dependent on the ability of the operation to minimise dilution. This can only be achieved through sensible analysis of past and future performance of mined stopes using the most appropriate recent available technologies and tools. This article presents a new design process that utilises advanced geotechnical numerical modelling and various other analytical tools to assist with a more robust mine design of open stoping operations. The focus of this design process is on geotechnical factors affecting dilution during the life-of-mine. A recent application of this optimisation method for a mining operation is presented in this paper as a case study. Through the application of this method and various other operational improvements, the mine was able to deliver more consistent production and lower operating costs over its life-ofmine outlook and was able to reduce dilution by up to 50 per cent and achieve sustainable record high production rates.

Mar 29, 2023

By J Player, K Braddon

High productivity mining is the key to the financial success and stability of modern mines. This can be achieved through the use of new technologies, the development of innovative work practices andoptimisation of the mining method to suit the mining environment.Big Bell Mine is a 1.7 Mtpa longitudinal sublevel caving operation at a head grade of 3.14 g/t. Annual production is 170 000 ounces of gold. The selection and implementation of bulk emulsion explosives was seen as the logical progression from blow loaded ANFO for the high tonnage rate required from the longitudinal sublevel cave.Prior to the implementation of bulk emulsions an investigation wasrequired to examine the technical and financial benefits available with the introduction of bulk emulsion. This paper examines the review process and the successful implementation of bulk emulsion explosives at Big Bell.

Jan 1, 1999

By A Holmgren, W Forsling

In the present study infrared attenuated total reflection (IR-ATR) was used to monitor the rate of in situ adsorption of heptyl xanthate on a layer of zinc sulfide synthesised on a germanium ATR crystal. The zinc sulfide surface was characterised using x-ray photoelectron spectroscopy (XPS). The absorbance of heptyl xanthate measured increased with increasing bulk concentration of the adsorbate up to an equilibrium plateau value corresponding to a fractional coverage of the surface sites of the substrate. For the adsorption from solutions of concentrations between 10-3 and 10-5 M, the rate of adsorption increased with increasing bulk concentration. At higher concentrations the measured absorbance should be corrected for the absorbance due to the concentration of xanthate in bulk solution. The present work provides a discussion of this correction. Assuming the adsorption stage to be rate-controlling and proportional both to the concentration of the adsorbing species in solution and unreacted surface area, a rate law governing this type of transient adsorption kinetics was derived. By means of absorbance data for the concentrations 0.1 and 0.01 mM, the rate constant of adsorption was calculated. From the initial part of a Langmuir adsorption isotherm, the absorbance at monolayer coverage and the equilibrium constant of adsorption could be estimated.

Jan 1, 2005

By D P. Blair

The theme of this conference is blasting productivity. This article only considers the technology aspect of this theme, and in particular, the collection and analysis of experimental data. In many cases, field trials are set up to collect data on variables such as fragmentation and vibration with the aim of comparing different explosive products and/or blast designs. An important aspect of such trials is the collection of sufficient data to draw sound conclusions. In this regard, there is no doubt that the scatter in real data is the root cause of all problems of obtaining misleading results due to an insufficient number of trials. This article shows that the typical one-off trial has a high probability of producing misleading information, which could be considered to be worse than having no information at all. Assuming that sufficient data has been collected, this article also highlights the methods that can be used to make the most of that data. These methods include the application of appropriate statistics that are dependent on the nature of the scatter in the data, and the use of some of the more recent filtering and spectral approaches that can be used to reduce the noise in measured blast signals and increase the resolution of their spectral characteristics.

Nov 8, 2011

By C Fricke, R Wood, P Velletri

"In a climate characterised by an ever increasing focus on cost reduction and maximising the utilisation of existing assets and infrastructure, understanding the uncertainty associated with alternative investment and operational choices becomes paramount to minimising the risk of making an ineffective decision. To assist in this process, TSG Consulting has developed an analytic framework to capture the underlying complexity of a mineral supply chain, and then quantify the impact of the uncertainty associated with the key drivers of business productivity. The technical basis of this approach follows three distinct steps: analyse the current system and identify the major factors that drive value build detailed models that can measure the response of the system to potential changes in the factors identified quantify the sensitivity of financial and capacity forecasts to these factors.Each of the above steps draws on a different area from the field of applied analytics, namely: data analytics dynamic modelling and designed experimentation meta-modelling and optimisation.Following the three-step approach described above ensures a rigorous modelling and analysis process is executed to support strategic mine planning decisions. The approach is equally applicable to the analysis of fully integrated system supply chains (pit-to-port), the evaluation of incremental capital investments to targeted areas of a supply chain, or when considering revisions to the operating philosophy of a system in the short term. The basis of each of the three analytic steps is explored in detail in this paper. The result is the definition of a structured mechanism for a business to actively manage risk and drive productivity as a component of the strategic mine planning process.CITATION:Fricke, C, Velletri, P and Wood, R, 2014. Enhancing risk management in strategic mine planning through uncertainty analysis, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014, pp 275–280 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Nov 24, 2014

By J Howard

Following discovery in October 2004, commencement of development in February 2007 and first ore production in mid 2007, the Trident gold deposit, located in the Eastern Goldfields of Western Australia, has now been successfully mined for over three years. Three years of operational history has enabled the performance of the Trident underground mine to be reconciled against the mine plan and strategy proposed for the original feasibility study.The Trident deposit, initially based on two lode systems known as the Eastern Zone and Western Zone, has been continuously drilled, interpreted and re-interpreted over the period and as a result the addition of the Athena, Apollo and Artemis lode systems as well as numerous smaller scale lodes has been realised. The first three years has seen the Trident underground mine quickly move up to its 1 Mtpa design production rate. The mine plan and strategy used in the initial feasibility study and subsequently implemented, required sufficient flexibility to enable modification and optimisation to mine plans as ore zones were further defined. The ability to modify the mining plans has enabled Avoca to achieve its mining targets at Trident. With over 250 000 ounces gold produced to January 2010, the company is well positioned to achieve its ten year vision associated with the Higginsville Gold Project.This paper offers an account of operational experiences whilst providing comparison to assumptions and methodologies used in the original feasibility study. The paper is a sequel to a paper presented at the Tenth Underground Operators’ Conference held in Launceston, Tasmania titled Development Strategy of the Trident Underground Gold Mine.

Mar 21, 2011

By Y Li, L Zhang, G Li, S C. Dominy

Qiagong skarn iron (copper) deposit is located in Xietongmen County of Tibet, China (N 29¦52Æ14.9ö, E 88¦24Æ10.3ö). It is situated at the middle-western Gangdese porphyry copper-belt. Mineralisation is related to a Himalayan porphyry intrusion, with the mineralised body occurring at the contact zone between the Tertiary Takena Formation carbonate rocks and Himalayan monzonitic granite porphyry. The melt, melt-fluid and fluid inclusions were observed in early quartz, with most abundant fluid inclusions in quartz, calcite and garnet from the skarn. The geology and inclusion assemblage show a close relationship between iron (copper) mineralisation and a Himalayan porphyry intrusion. Based on preliminary inclusion studies, this paper discussed the characteristics, evolution of ore-forming fluid and affiliation to the Himalayan porphyry intrusion. An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation.

Jan 1, 2008

By M R. Lane, M L. Cramer, N P. Wines

Increasing attention is being focused by regulators and industry on the residual environmental liabilities associated with mining projects following site relinquishment (termed surrender in Queensland). Even sites that have been rehabilitated to a high standard and to the satisfaction of the regulator are not completely risk free and may require some degree of ongoing management. As well as ongoing monitoring and maintenance costs, considerations should include how costs associated with potential risk event occurrence can be quantified and, if considered material, how provisioning should be undertaken to minimise the risk to the state and to taxpayers. In Queensland for example, once a resource site is fully rehabilitated and meets its environmental authority conditions or rehabilitation completion criteria, the tenure and environmental authority can be surrendered. During the surrender process any ‘residual risks’ resulting from the use of the site for the resource activity must be considered, and, if requested, a payment given to the government to cover any ongoing management and risk costs. Accent Environmental, in conjunction with Lane Associates, was engaged by the Queensland Government as part of the government’s financial assurance framework reforms to develop an innovative, ‘one-size fits most’ Residual Risk Calculator for the Queensland resources industry. The calculator is an Excel-based tool that uses detailed user inputs to estimate post-surrender management requirements and liability at resource sites. If residual environmental risks associated with rehabilitated mine sites can be identified, quantified and managed through pragmatic regulatory tools and effective provisioning, site relinquishment/surrender can be achieved without compromising environmental and social outcomes or exposing the state to unreasonable financial risk. The effective management of residual risk can also help facilitate operations as well as relinquishment/surrender of sites where a ‘walkaway’ solution may not be otherwise technically feasible.

Aug 2, 2023