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Accidents in open pit mining have a high cost in lost time of person- nel, damage to equipment and installations, and lost production. The realities of export competition require that Mine Management sig- nificantly reduce the costs associated with accidents and workplace ill-health. Newer management approaches are proving effective in reducing the Total Cost of Risk through a strucured Occupational Health and Safety Programme exhibiting the following features: ò Formal Company Policy ò Accountability for OH&S performance clearly designated to each level of management and supervision ò Effective utilisation of a Mine Occupational Health and Safety Co- Ordinator and a Mine Occupational Health and Safety Adviser ò Development of realistic OH&S Objectives ò Training of Management, Supervision and Workforce in Occupa- tional Health and Safety ò Development and adoption of Safe Work Practices and Procedures ò Effective employee selection procedures, control of Contractors ò Monitoring of the health of the workforce ò Collection, recording and distributing information on all Mine inci- dents, accidents, injuries and damage ò Ensuring that the Mine environment is healthy and safe ò Effective Emergency Procedures to deal with injury, fire, rescue and other situations of risk ò Controlling those Mine hazards which cannot be removed ò Adopting a high standard of Occupational Rehabilitation ò On-going visible Management participation in the programme to ensure that momentum is developed and maintained. This approach requires that Occupational Health and Safety be given equal status with product quality, maintenance of plant and output per- formance; its implementation is rewarded with improved morale and major cost reductions.

Jan 1, 1989

By B Cooper

During the design of a new production facility for a greenfields or significant brownfields expansion many design decisions are made driven by an unquestioning objective to achieve 'lowest cash-cost' production costs. In many cases this translates to a design and operating philosophy based on largest-available, single-line equipment. Although acknowledged as an approach that is efficient from an operating cost perspective does this approach always maximise shareholder value? There is an increasing awareness in the mining industry of the value of project flexibility, robustness and value options. The design of a new production facility creates a window of opportunity which should be structured to ensure that project value options and robustness are understood and exploited. This requires the use of emerging valuation methodologies, such as Value-at-Risk and Real Options, as well as tried and trusted NPV/IRR approaches. The paper provides an overview of the basis and application of these less well known techniques in the context of metallurgical plant design. Design guidelines that demonstrate how value options and flexibility can be quantified from both a risk and value perspective are presented. Issues such as use of single versus multiple line equipment, optimum cut-off grade and improved exploitation of the inherent variability of the orebody are also examined. Finally the management issues and approaches to achieving this will be briefly discussed; for example it is common during project development to drive towards increasing certainty as rapidly as possible to facilitate 'accurate' estimation of costs. Understanding and exploiting value options requires a project culture that tolerates, and revels in, ambiguity and uncertainty û something that would make many project teams uncomfortable!

Jan 1, 2008

Welcome to this 13th Congress of The Council of Mining and Metallurgical Institutions. It is twenty one years since The Australasian Institute of Mining and Metallurgy last hosted this congress and it is a privilege and a pleasure for The AusIMM to have that responsibility once more. The theme of this congress "The Twenty-First Century - Mining for Mankind" stimulates many thoughts. The first thought that it generates in me relates to the reference to the 21st Century. We are still 14 years away from it and already consideration of the beginning of the next millenium is becoming something of a cliche. If we feel like that about it now, how will we feel at the 14th Congress of the CMMI in 1990, or the 15th in 1994 or the 16th in 1998? If we do all the crystal ball gazing about the 21st Century this week, those poor devils in the 1990s will in fact have nothing to talk about. Of course that is not the case. This is a very appropriate time for those of us concerned with mining and metallurgy to contemplate the next century. Fourteen years is about the extent of forward planning necessary in the mining business. I sometimes feel that most people do not take seriously the need for long range planning in our industry. Politicians, investment fund managers, and others under severe short-term pressure to perform in our hyperactive world may nod in apparent appreciation of our long term plans but their actions in the interests of expediency often betray-them.

Jan 1, 1986

By J J. Cilliers, K Hadler

Froth structure and stability are known to play important roles in determining mineral flotation recovery and selectivity. However, measuring froth stability in a consistent manner remains a significant challenge, especially at an industrial scale. Following preliminary tests on a copper concentration plant, a quantitative dynamic stability measure is investigated in this study in order to extend the results over a wider range of conditions and on a different orebody. The technique is based on the Bikerman foam test and uses a non-overflowing froth column to quantify froth stability. Experiments were carried out using an automated version of the froth stability column under different operating conditions. Air flowrate was the key operating variable. Tests were reproduced on a single flotation cell of a Platinum Group Metals concentrator. The froth stability factor, , was measured for each operating condition, and compared with the air recovery in the cell, , which was measured using image analysis. The froth stability column results gave the same trends as image analysis. In particular the froth stability factor was found to be linearly related to the actual fraction of air overflowing the cell. The metallurgical results clearly indicated that changes in air flowrate result in variations in flotation performance that can be attributed to changes in froth stability. The results showed that high froth stability conditions occur at intermediate air flowrates, and result in improved flotation performance. It is found that the froth stability column is a simple, cost-effective and reliable method for quantifying froth stability, and for indicating changes in flotation performance.

Jan 1, 2005

Coal mining in the Bulli seam in the Southern Coalfield in New South Wales has experienced the dangers of outbursts of coal and gas. These incidents present a major risk to the safety of mine workers and consequently a threat to the overall viability of the mining operations. Since the occurrence of a major outburst incident in the South Bulli Colliery in 1991 involving three fatalities, the primary contributory factors associated with coal/gas outbursts in the Bulli coal seam have been identified and a strategy for the management of the outburst risk has been formulated by the cooperation of mine operators, mine workers and the Department of Mineral Resources. Utilisation of risk management techniques in combination with modern gas drainage technologies and geological control methods have led to the formation of this effective outburst management plan. Clause 15 of the Coal Mines (Underground) Regulation 1999 in NSW has made it mandatory in an area of outburst to carry out mining in accordance with a code or guidelines developed for mining in outburst prone areas (DMR, 1999). In this paper an outburst management system is discussed which was developed for collieries in the Southern Coalfield that brings together all the available information including past experiences and risk management techniques in a documented form in order to maximise safety of mine workers. It is concluded that since the introduction of the outburst risk management systems in the Southern Coalfield in 1994 considerable reduction in outburst incidences have been experienced.

Jan 1, 2003

The purpose of this paper is to explain the basic structure of how minerals are marketed, whilst highlighting the essential factors that mine management needs to be confident are incorporated into a mineÆs marketing strategy. The traditional mine management approach to marketing has been to defer its scrutiny to the marketing manager and take a largely passive role. It is this paperÆs assertion that mine management needs to become more proactive and provide greater strategic input into the marketing process. Irrespective of what mineral your mine produces, the key marketing principles remain constant and need to be understood and managed to extract the full benefit on behalf of the mining asset. From a mine management perspective, success is ultimately linked to understanding these marketing principles and ensuring that they are effectively addressed by your mineÆs marketing strategy. This paper will unashamedly attempt to simplify marketing by explaining how the basic fundamentals of supply and demand set market direction, the importance of a comprehensive marketing strategy, the importance of customer relationships and how contracts and prices are typically negotiated. This paper will use examples from the metallurgical coal (met coal) industry to highlight these points. The paper will also provide a template for developing the critical mine interaction that needs to exist between the marketing department and management to develop a æwhole of mineÆ approach to marketing. It is this core group that will be strategically responsible for delivering the commitments your mine has made to your customers. For mine management not to be actively involved in this process puts at æriskÆ the hard won production and cost efficiencies achieved at your mine and ignores the opportunity to maximise your current and future revenue streams. And whilst this paper recognises that is arguably unreasonable for mine management to become æmarketing expertsÆ, it also argues that it is unreasonable for a mine management to divorce themselves from the process.

Jan 1, 2006

DIVERSITY There are plenty of examples to show that diversity has been the fundamental downfall of many organisations, particularly when you consider the international position. What about core business, the return of companies to key competence directions and market focus. The stockmarket for instance defines groups and companies in key groups of core business. The expectation is that companies toe the line and do not diversify across their areas of defined expertise. In essence, the market has given notice that the requirements are to focus and stick to our core business. So what right does the conference have to suggest that diversity is the key to prosperity. Hasn't the organiser read the book, studied the history, listened to the market - obviously not. Have they got it wrong, My feeling and belief is no - the organisers have got it right. However, the matter is not as simple as first perceived. What is Diversity, or Diversification as I would prefer? Is it a product position? Is it a geographic position? Is it an expansion or change in services offered? Does a gold mining company diversify into copper or diamonds or aluminium or nickel? Does a gold miner in Australia diversify into China or Kazakhstan or West Africa? How do the two relate? They don't. A successful company will always possess a 'core competence' not so much a 'core business'. The best example of this is the service company extraordinaire - McDonalds. They don't sell hamburgers or french fries, they sell a service, a convenience, a lifestyle. The core business is hamburgers and if McDonalds were to diversify further into new styles of hamburgers, I suggest to you they would fail. But if McDonalds were to diversify into other products based on their 'core competence', provision of service, then I would suggest to you they would be very successful. The service procedure, service machine, service system, the formula, stava the rnnetant the nrnrlnrte -

Jan 1, 1996

By Broome A

In a technologically oriented industry, it is important to understand and apply technology very consciously to create competitive advantage. Technology is not an activity which is simply restricted to CSIRO or the research and technology department. Technology improvement is a part of everyone's role. It is a way of life - the technology facet of continuous improvement. For this reason, The AusIMM has organised this Travelling Technology Forum - a series of presentations about automation in mining. To make the message more accessible, The AusIMM had originally planned to take the Forum to four regional mining centres: Mackay/Townsville, Singleton, Burnie and Kalgoorlie, but only one seminar was held, ie at Singleton in March 1997. Seminars at other locations were cancelled because of insufficient registrants. The presentation by Andrew Logan of BHP Cannington was not available for the Singleton forum. The aims of the forum were: ò to heighten awareness of the key technologies and their impact in the minerals industry in the medium term; ò to foster creative thinking; ò to encourage people to broaden their technical and commercial skills and develop individual networks and linkages based on an interest in these key technologies; ò to share information on the application of these technologies in the industry; ò to promote an enhanced appreciation of the need for an innovative culture; and ò to encourage staff to consider post graduate courses in technology management. The AusIMM wanted to not only raise awareness about `automation in mining' issues, but also to get technology in a more general sense back onto `centre stage'. The Forum was generously supported by CSIRO, Western Mining Corporation Ltd, BHP Coal Ltd, Aberfoyle Limited, Goldfields Ltd, Novacoal Australia Pty Ltd, Pasminco Ltd, and RGC Limited. The program was endorsed by the Centre for Mining Technology and Equipment (CMTE). Copies of the full papers are available from the authors, see `References'.

Jan 1, 1997

The Inglewood Gold Project consists of several titles in and around the Inglewood and Wedderburn Goldfields which were purchased from Strata Mining Corporation (now Excalibur Mining Corporation). The Inglewood goldfield has a historical production of approximately 160 000 tonnes at 23 grams per tonne. The company has reopened and developed the Maxwells reef, picking up a high-grade shoot (Max Shoot) identified and worked by Goldquest et al up until 1994. Production ceased on a low gold price, rapidly reducing vein size and a requirement for further development. Greater Bendigo Gold Mines Ltd (GBM) has undertaken the development and encountered the mineralised vein in an increasing size setting with high grades and the existing mine development has access to a further shoot to the north (Max North Shoot). The Maxwells reef also contains the Woolf shoot south of the Maxwells shaft and an inferred resource of ~20 000 ounces is contained from 60 m below surface. Best intersection 2.9 m at 50 g/t. The Maxwells reef area produced approximately 20 per cent of the Inglewood goldfields production and GBM is preparing to increase its exploration efforts across the rest of the field. A processing plant has been constructed at the Maxwells mine site, which is capable of treating tailings, hard rock and alluvial material utilising gravity recovery. The existing Maxwells tailings have been excavated and treatment commenced. It is intended to produce a sand product from the tailings for resale and to reduce the storage requirements per tonne. Several large water dams constructed by Goldquest in the 1990s are being re-engineered to enable storage of significant tonnages of tailings. A level of surface and underground production is planned for 2008 and this is to be expanded into 2009 and beyond. The long-term future at Inglewood is envisaged as structural repeats at depth below the current workings and a project plan to gain deep access will be prepared on successful drilling results.

Jan 1, 2008

THE reduction of iron from the ferric to the ferrous state prior to its titration by permanganate or dichromate may give erroneous results in the presence of other reducible metals such as titanium. Stannous chloride and metallic zinc both reduce tetravalent titanium to a lower form, and so increase the consumption of the oxidizing standard: solution. Sulphuretted hydrogen and sulphurous acid do not reduce titanium, but are slow in action and troublesome to manipulate.Sulphuretted hydrogen is considered to be the best reducing agent for iron in the presence of titanium.* In the method to be described the advantages of the H 2S reduction are retained without the disadvantages of using the gas. The reduction is carried out by the action of a metallic sulphide having a solubility product of such a value that the sulphide iom, are utilized as fast as they are formed, and but little free sulphuretted hydrogen is given off.Cadmium sulphide was the first to be tried, but its solubility product (3.6 x 10 - 2~)t was apparently too low. The reduction was satisfactory, but the excess was very difficult to remove. Zinc sulphide (S.P. = 1.2 x 10 - 23) was found to be quite satisfactoryin both respects. The zinc sulphide is preferably used in the form of an emulsion prepared from pure zinc sulphate as follows: About 100 grm. of ZnS047H20 is dissolved in 2 litres of water. H2S is passed until no further precipitate is obtained, the acid formed being barely neutralized from time to time by the addition of ammonia. The precipitation of the sulphide in a slightly acid solution gives a finer emulsion than that prepared in an alkaline solution, and any iron present remains dissolved. The precipitate is allowed to settle and the clear liquid decanted. The precipitate is then shaken up with more water, acidified with a little sulphuric acid, allowed to...

Jan 1, 1922

By S Brochot

In cases where coarse gold is present in a deposit, it is usual to use the screen fire assay (SFA) method to analyse the samples. There is no doubt that this method is more accurate than the standard fire assay (FA) and reduces the risk to have a systematic bias. Nevertheless, the difference between the analytical errors of both methods can be glossed over when the overall sampling error is added to obtain the measurement error. In that case, the advantage of the SFA cannot justify its higher cost.The current paper attempts to address this question in the case of a gold ore deposit with visible coarse gold in various sampling situations (drill core sampling in exploration, blasthole or chip sampling in mining exploitation). The overall measurement error is estimated taking into account the analytical error and all the sampling error components following the Pierre GyÆs theory of sampling.Firstly, only the last sampling stage is considered when the pulverised sample is processed either to obtain one analysis sample for a FA or to be screened and subsampled for a SFA. The calculated measurement error clearly shows the advantage of the SFA specifically in presence of coarse gold. Secondly, the half core sampling is studied to explain the observed discrepancies when controlling the second half core. Finally, the blasthole sampling is treated using in situ heterogeneity models to show that the relative advantage of the SFA is hidden by the large overall sampling error.In conclusion, the choice of the assaying method is discussed at the light of the overall measurement error and in accordance to the analysis objective.CITATION:Brochot, S, 2012. Standard fire assay or screen fire assay? Application of the overall measurement error approach to choose the most appropriate method, in Proceedings Sampling 2012 , pp 135-142 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 21, 2012

At the outset I want to thank you for inviting a representative of the Chamber of Mines of South Africa to address you on the subject of mining and its future at this, the 13th Congress of the Council of Mining and Metallurgical Institutions. It is indeed a pleasure and an honour to be here. As many of you will recall, four years ago I, as the then President of the South African Institute of Mining and Metallurgy, had the privilege of hosting and welcoming you to the 12th Congress, the third such congress hosted by South Africa. The late Sir Ernest Oppenheimer, President of the 1930 Congress - the first to be held in South Africa - in his opening address foresaw the mining industry as "the most potent factor in spreading the benefits of civilisation over the sub-continent." We have come a long way since those halcyon days but, as I noted four years ago, it still remains true that mines have been, and will continue to be, the missionaries of development in many, if not most, of the Third World countries. I have been asked to address you on the subject of "mining" and to let my imagination roam widely so that delegates can leave the congress with a broader vision than they brought on arrival. It is a tall order and in my attempt to fulfil it I ask you to cast your minds back 120 years to a sultry, rustic day when the first diamond was discovered in South Africa at the now famous town of Kimberley. At that time the South African economy, predominantly pastoral, was still at subsistence level. Almost overnight the ensuing diamond rush turned the then British- owned northern Cape Colony's semi-desert scene into a hive of mining activity, every prospector bent on making his instant fortune. It was very little different, I am sure, to the gold rushes that hit California in 18+8, Australia in 1851, New Zealand in the 1860s. and the Yukon in the 1890s.

Jan 1, 1986

By D C. S M, J Skudder, R F. Sandenbergh

Metallic sulfide minerals present in most gold ores, Morila gold ore included, often decompose under typical gold leaching conditions. The reactions and their products consume oxygen and sodium cyanide, consequently competing for oxygen and cyanide used in gold dissolution. The resultant effect is to reduce both the kinetics of gold dissolution and overall extraction efficiencies. The present paper discusses results obtained from plant data analysis and laboratory work investigating the problem of higher than expected consumption of sodium cyanide at Morila Mine Gold Plant. Cyanide consumption at the Morila Mine Gold Plant had been consistently running at 46 per cent higher than the expected value without any corresponding increase in gold recovery. In fact, plant data analysis showed an inverse relationship between cyanide consumption and grind, as well as cyanide consumption and gold recovery. Experimental and plant data analysis indicated that better control of the [CN-]/[O2] ratio is necessary for the efficient use of reagents and achievement of higher gold recoveries. Careful control of this ratio at a minimum of eight enabled the reduction of sodium cyanide consumption by 200 g/t, that is, from 650 g/t to 450 g/t. Coupling these experimental conditions with the addition of lead nitrate at 100 g/t improved the overall gold recovery to 93 per cent compared to the average plant recovery of 90.2 per cent over a six-month period. This improvement was also reflected in the leaching kinetics where 70 per cent gold extraction was achieved after four hours, as compared to 59 per cent in the absence of lead nitrate addition. Also of great importance is the fact that the combination of hydrogen peroxide and oxygen gave inferior performance relative to either of the two reagents used separately. This scenario presents an opportunity for excluding hydrogen peroxide, an expensive reagent, and focusing on improving the oxygen addition system to boost dissolved oxygen concentration in the plant.

Jan 1, 2007

The complete life cycle of a production facility has many phases requiring many different skills and many different personalities. It is not unlike the life cycle of a person and many parallels can be drawn from it. I leave some of these analogous situations to your fertile minds. The author, having worked in operations, plant design, plant commissioning, marketing and many other interesting situations through the industry has drawn from this experience and examples given by many associates in the industry.The phases seen are as follows: Concept Studies û someone has a bright idea of how to make a dollar. Scope Studies û what possible processes/options that could make a dollar. Prefeasibility Study û the æviableÆ scope options are studied to develop feasible options. Feasibility study û defines the concepts that should be designed to make a viable project thus enabling financing and project commitment to be made. Detailed Design û an intermediate step that consolidates the inputs to give a robust plant that can be constructed.Construction û people can see what they thought was going to occur and start to understand the plant. Commissioning û the hand-over of æownershipÆ from the conceiverÆs to the operators. Operations û the ætoyÆ has become reality and money must be made. De-commissioning û the plant has seen out the useful life of the ore deposit, it now goes through a further process required by society.Across these phases of plant design run several countervailing management requirements that can influence the outcome of the plant design. Some of the management rigours that have to be applied to the various phases are as follows: costing basis of the various phases; operational and maintenance reviews; sustainable development; risk assessment; reliability reviews; equipment availability; commissioning time; and environmental review.This paper endeavours to awaken people to the phases that projects require for a successful outcome and the management rigour that has to be applied throughout the phases to ensure the correct intellectual horsepower is applied at the right time to ensure the best outcome.Many of you would be parents and realise this is not unlike the development of children, teenagers, adults, retirees and ongoing.

Jan 1, 2002

By D B. Donato

Gold mining cyanide-bearing solutions can pose a risk, cause significant wildlife deaths and adverse public relations and result in non-compliance with regulatory conditions. The International Cyanide Management Code for the Manufacture, Transport and Use of Cyanide in the Production of Gold (the Code) was developed as a voluntary code to encourage industry-wide improvements in managing cyanide responsibly. The Code requires design and implementation of robust monitoring programs for compliance under the following standards of practice: 4.1, 4.4 and 4.9. A robust monitoring regime can be complicated as each processing and tailing system is different. The following systems are commonly used in Australia: carbon-in-leach (CIL); carbon-in-pulp (CIP); heap leach process ponds; tailing waste disposal systems; peripheral discharge, central discharge and in-pit disposal. Some terrestrial wildlife can be denied access by fencing tailing storage facilities (TSFs) or other physical barriers, therefore limiting wildlife interaction with cyanide-bearing tailing and solutions to mainly birds and bats. While wildlife monitoring programs for processing and TSFs contain similar core attributes, it is necessary to adapt monitoring to take into account the site-specific features of each system. These core attributes are discussed in this paper, with reference made to cyanide concentration and associated methodologies. The issue is considerably complicated if tailing solutions are deemed or discovered to be toxic to wildlife. Essentially cyanides are required to be measured to gain an understanding of the concentrations to which wildlife may be exposed. This usually equates to measuring the cyanide concentration of solutions entering and leaving a tailing system. To assess the risk to wildlife presented by tailing and heap leach systems it is necessary to monitor both the hazard (cyanide concentrations) and the exposure (live wildlife species, presence and interaction). These tasks need not be arduous and a system of simple frequent monitoring has been developed and implemented for Code compliance. The wildlife monitoring developed by Donato Environmental Services (DES) and used at mining operations departs from the industry norm. It documents observer effort, live wildlife presence, habitat and behaviour in a tailing system, as well as deaths and carcasses. A greater understanding of wildlife cyanide toxicosis associated with this monitoring approach will enable mining companies to adopt a proactive approach to significantly reduce, or preferably eliminate, the impact on wildlife and assist in gaining Code compliance.

Jan 1, 2007

By W van der Westhuizen

Mining professionals recognise the need and application for reconciliation and value tracking. It is necessary however to examine our current reality, and evaluate the following. Do our reconciliations really balance correctly, and are we able to track value effectively throughout processes? If we are honest, in most operations the answer is a resounding no. This means that we are surrounded by fluctuation and deviations that we do not account for and do not understand. This is astounding, because given our level of scientific knowledge and the technological tools at our disposal we should have a good understanding of our environments and be able to manage them effectively. How do we manage effectively if we are surrounded by so much uncertainty? The purpose of this paper is to describe, at high level, the principles of reconciliation and value tracking, to highlight some areas where deviations are introduced into the mining process, and to propose a different approach to the apparent reconciliation and value tracking conundrum. The paper also poses several questions that need to be critically addressed at most operations. Instead of making the same mistakes each month in reconciliations, mining professionals need to acknowledge two facts. Firstly there will be uncertainty that we need to accept, since all our estimates are based on sampling, an orebody is not homogeneous and peopleÆs behaviour will influence the process, etc. Variability will always exist and lead to uncertainty. What is the current approach in the reconciliation process when a deviation occurs and how do we use reconciliation and value tracking to manage and improve our business? The second fact is that we need to stop using reconciliation and value tracking to only measure and report. We need to adopt a new approach to manage mining throughput, where reconciliation and value tracking are enablers to the success of the business. In most mining operations, significant effort goes into planning and measurement for the purposes of reconciliation and value tracking. The importance of accurate and effective reconciliation and value tracking should be to ensure the maximum utilisation of the resource, maximising throughput and enabling the business to deliver a product to its client, of the correct quality and in a timely manner.

Jan 1, 2002

By C Berglin

Is the Northern Territory different? Certainly it is more remote, has less people and relies more heavily on two or three industries for its survival. On the other hand, its mining industry is governed by Acts not dissimilar to those of the major States - a Mining Act provides the basis for acquisition of tenure, a Mine Management Act provides regulatory control, a Mineral Royally Act collects revenue in return for the right to utilise the land's bounties, an Environmental Assessment Act provides the public face to rehabilitation and environmental safety, and the Aboriginal Land Rights (NT) Act purports to give development criteria for inalienable land use. With the exception of the latter, at least until the advent of Mabo, all these are simply variations on a theme, and are common to most States. This paper will show how the Department of Mines and Energy works in relation to the Northern Territory mining industry.

Jan 1, 1994

Solid EnergyÆs project evaluation process utilises a standard staged gate approach, with five levels leading ultimately to project execution (level 6). For a project to progress through each level, specific financial criteria need to be satisfied. Solid Energy primarily use value based (discounted cash flow) metrics to support investment decisions. Within this approach Solid Energy utilise a number risk-based techniques to quantify project uncertainty. This includes the use of risk-based probabilistic analysis using Monte Carlo simulation and probability-based scenario analysis. Figure 1 shows the net present value (NPV) cumulative probability. Project risks are identified through comprehensive risk workshops. The output of these workshops (list of key risks, ranges of uncertainty and probability of occurrence), is quantified within the financial models. Incorporating this risk information on a probabilistic basis allows an investment decision to be made with a robust knowledge of the range of possible project outcomes along with the likelihood (probability) of those outcomes occurring, for example 80 per cent confidence that the project value will be greater than NZ$10 M, 50 per cent confident it will be greater than NZ$50 M and ten per cent confident it will be greater than NZ$70 M. Incorporating risk implicitly into the financial analysis allows the business to easily evaluate/measure projects with different risk profiles. The detailed risk analysis does away with the complexity of arbitrary risk-based hurdle (discount) rates, as projects can be evaluated based on their specific risk characteristics. Whether a project will progress to the next level of investment and ultimately into implementation depends firstly on the value assessment in comparison with the associated risk/uncertainty, and secondly matching this with the businesses appetite for risk. At Solid Energy standard criteria are used for specific project evaluations, but in addition projects are considered on a portfolio or strategic basis also. Solid Energy attempts to maintain a mix of low risk (low value) projects with some high risk (high value) opportunities. The mix of projects must remain in line with the shareholdersÆ risk appetite. One of the keys to a successful investment decision is ensuring that the appropriate information is available to decision-makers so that they may proceed with a comprehensive understanding of the risks and impacts associated with the decision.

Jan 1, 2007

By I Haine, J Penm, T Waring

During 1999 there was a considerable turnaround in world prices for most minerals and energy commodities, except for the bulk commodities (coal and iron ore). The main reasons for this turnaround were: improved prospects in demand for most minerals and energy commodities in the Asian region following a return to both economic and industrial production growth in key economies in that region; continued moderate growth in demand in Europe and North America; substantial production cutbacks in a range of minerals and energy industries; effective reductions in the supply of oil by OPEC nations; and an announcement by European central banks that they would cap the amount of gold they sell and loan in the next five years. Most of these influences are expected to be sustained into the first years of the new millennium. In 2000, with exception of coal, average world prices of minerals and metals are forecast to rise significantly. Gross domestic product and industrial production is expected to grow in some European countries and most Asian countries in 2000 and, with moderate growth expected to be sustained in the United States, demand for minerals and energy is expected to increase. AustraliaÆs main bulk commodities, iron ore and coal, saw prices set for 1999 - 2000 at substantially lower levels in negotiations in early-1999. Double digit price cuts were locked in. However, similar falls appear to have been avoided for coal in Japanese Fiscal Year 2001, while increases of between four and six per cent were achieved for iron ore. Forecast modest recovery in economic growth in Japan and increasing demand elsewhere in Asia are expected to lead to tighter market conditions in 2000. Beyond 2000, world minerals and energy markets will be influenced by the expected robust global supply responses of minerals and energy companies, against a background of sustained economic growth and industrial production growth in major consuming countries. Over the medium-term, a return to declining real prices which have been evident for most commodities in the recent past, is expected as exploration, mining and processing technological change and associated productivity growth continues to reduce industry costs. While lower rates of exploration and mining investment in Australia between 1998 and 2000 will modestly constrain the rate of future industry expansion, Australia remains an important contributor to expected growth in global minerals supply over the medium-term. Australian mine production is forecast to grow between 1999 - 2000 and 2004 - 05, boosted by production from recently commissioned mines and minerals processing facilities and comissioning of other projects at advanced stages of planning.

Jan 1, 2000

By Derham DW, Newcombe LA

The operations of the Mount Morgan gold tailings retreatment plant were significantly improved in 1984 by the desliming of the CIP plant feed, which reduced cyanide consumption and increased percent gold dissolution. Subsequently, the development of slimes treatment, incorporating gold leaching from slimes solids by copper cyanide complexes in the process water, and gold adsorption on to carbon in an environment lacking free cyanide was successfully implemented. Mount Morgan was initially mined for gold commencing in 1882 on the auriferous ironstone cap to the sulphide ore body. During the history of mining and processing at Mount Morgan the operations have developed through numerous phases of gold and copper production, operating almost continuously through until the final closure in late 1990. The final phase of processing was the retreatment of tailings, predominantly flotation tailings accumulated since the 1930s, for the recovery of gold and minor silver. Tailings retreatment commenced in 1982 with the commissioning of a 10 000 tonnes per day CIP plant to treat some 40 million tonnes of tailings at an average grade of 1.08 g/t Au. The initial operations were hampered by high cyanide consumption and poor gold dissolution on the mixed siliceous/pyritic tailings. The successful development and implementation of the desliming of the CIP plant feed in 1984 (as described by Parsons and Hampshire, 1986) reduced cyanide consumption by 40 per cent, and raised gold extraction by 13 per cent points by virtue of significantly higher dissolved oxygen levels. The finer portion of the reclaimed tailings were deslimed by eighty 100 mm diameter AKW cyclones, with the desliming cyclone overflow thickened in a Warman 30 in diameter thickener for water recovery and slimes disposal. Operation of the desliming plant involved the discarding of a slime fraction representing about 15 per cent of the reclaimed feed. Although gold-bearing, the high content of cyanicides and oxygen consumers within the slime negated any conventional treatment of this stream with free cyanide for gold recovery. The natural lixiviant behaviour of the soluble copper cyanide complexes for gold, which was extremely evident at Mount Morgan, directed efforts in this area. Enhancement of gold leaching with a deficiency or near absence of detectable free cyanide, but with significant levels of copper cyanide complex from recycled process water were examined. Adsorption of this solubilised gold onto carbon in a similarly difficult environment required close examination.

Jan 1, 1993