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By Frederick W. Breaks, Andrew G. Tindle, Julie B. Selway

"Abstract - Rare-element pegmatites may host several economic commodities, such as tantalum (Taoxide minerals), tin (cassiterite), lithium (ceramic-grade spodumene and petalite), and cesium (pollucite). Key geological features that are common to pegmatites in the Superior province of Ontario and Manitoba, Canada, and in other large tantalum deposits worldwide, can be used in exploration.An exploration project for rare-element pegmatites should begin with an examination of a regional geology map. Rare-element pegmatites occur along large regional-scale faults in greenschist and amphibolite facies metamorphic terranes. They are typically hosted by mafic metavolcanic or metasedimentary rocks, and are located near peraluminous granite plutons (A/CNK > 1.0). Once a peraluminous granite pluton has been identified, then the next step is to determine if the pluton is barren or fertile. Fertile granites have elevated rare element contents, Mg/Li ratio < 10, and Nb/Ta ratio < 8. They commonly contain blocky K-feldspar and green muscovite. Key fractionation indicators can be plotted on a map of the fertile granite pluton to determine the fractionation direction: presence of tourmaline, beryl, and ferrocolumbite; Mn content in garnet; Rb content in bulk K-feldspar; and Mg/Li and Nb/Ta ratios in bulk granite samples. Pegmatite dikes with the most economic potential for Li-Cs-Ta deposits occur the greatest distance (up to 10 km) from the parent granite.Metasomatized host rocks are an indication of a nearby rare-element pegmatite. Metasomatic aureoles can be identified by their geochemistry: elevated Li, Rb, Cs, B, and F contents; and by their mineralogy: presence of tourmaline, (Rb, Cs)-enriched biotite, holmquistite, muscovite, and rarely garnet.Once a pegmatite dike has been located, the next step is to assess its potential to contain Ta mineralization. Pegmatites with the highest degree of fractionation (and thus the most economic potential for Li-Cs-Ta) contain blocky K-feldspar with >3,000 ppm Rb, K/Rb < 30, and >100 ppm Cs; and coarsegrained green muscovite with >2,000 ppm Li, >10,000 ppm Rb, >500 ppm Cs, and >65 ppm Ta. Pegmatites with Ta mineralization usually contain Li-rich minerals (e.g., spodumene, petalite, lepidolite, elbaite, amblygonite, and lithiophilite) and may contain Cs-rich minerals (e.g., pollucite, Cs-rich beryl). The ore minerals of Ta are commonly manganotantalite, manganocolumbite, wodginite, and microlite; Ta-rich cassiterite is also commonly present. Tantalum mineralization tends to occur in albitic aplite, mica-rich (lepidolite, cleavelandite ± lepidolite), and spodumene/petalite pegmatite zones."

Jan 1, 2005

By Robert A. Creaser, David R. Lentz

Abstract - The Moss molybdenite deposit, which was mined during both world wars, is hosted in late Grenvillian granitic pegmatite dikes. These dikes are locally aplitic, and intrude the late tectonic Onslow syenite (probably correlative with the ~1090-1070 Ma Kensington suite), which is in turn intrusive into the 1170-1155 Ma Chevreuil intrusive suite of southwestern Quebec. A Re-Os model age of 1053 ± 4 Ma (8.3 ppm Re) was obtained for molybdenite from a pegmatitic veinlet within an aplitic phase of the dike. A much younger Re-Os date of 860.9 ± 9.2 Ma (6.9 ppm Re) obtained previously from a pyrrhotiteand pyrite-rich metasomatic vein might reflect Os diffusion during slow cooling of the Grenville province, because this age is consistent with K-Ar dates reported from the region. Alternatively, the similarity between these younger dates may be fortuitous, and may instead relate to sampling issues for molybdenite. The Mo-rich granitic dikes at the Moss deposit are similar to other Mo-rich A-type pegmatite-aplite granitic dike systems that formed immediately after the peak of the Ottawan orogeny (1070-1090 Ma), and possibly are more closely related to the Kensington suite than previously thought.

Jan 1, 2005

By Yongfeng Jia

Lime neutralization and co-precipitation of As(V) with iron(III) is the most widely used and most economical method for the removal of arsenic from mineral processing solutions and effluents. However, the arsenate fixation mechanism in the coprecipitated solids is not fully understood. It was suggested by various researchers to be a ferrihydrite precipitation process during which arsenate is removed by adsorption on ferrihydrite. In this study, XRD, EXAFS and microprobe were employed for the speciation of arsenic and the effect of various factors on arsenic solubility was also investigated. The results indicate that coprecipitation is a more complicated process than simple adsorption resulting in lower arsenic solubilities. Poorly crystalline ferric arsenate was observed for the first time to be present in the coprecipitated solids. In case of lime as base, there exists some type of Ca-Fe-arsenate association. A general term ?coprecipitate? is suggested to describe the precipitated arsenic-bearing solids instead of those widely used specific terms ?arsenical ferrihydrite? or ?arsenic-bearing ferrihydrite?.

Jan 1, 2005

By J. P. Nicoud

"The Frog&apos;s Leg project is located in the Kundana mining centre 22 kms West of Kalgoorlie, in Western Australia. The Mines and Resources Australia (MRA) Dioro Exploration Joint Venture has had considerable exploration success centred on the high grade Frog&apos;s Leg discovery. A gold resource of 930,000 ounces has been defined. At Frog&apos;s Leg there have been three discrete resource domains recognised - Supergene, Contact, and Quartz Lodes. This paper describes the metallurgical test work undertaken.The selection of the drill core was a joint effort by the MRA Senior Geologist and Mineral Engineering Technical Services (METS) to ensure the samples were representative of the ore body. Optimisation of gold recovery was essential as both the Contact and Quartz Lodes have exceptionally high percentages of free gold as well as significantly higher grades than the typical open pit ores found in Western Australia. The metallurgical scope of work included documenting all of the metallurgical test results, establishing the comminution characteristics, determining the percentage of gravity recoverable gold, evaluating the cyanide leach characteristics and determining the tailings characteristics. These studies were used as the basis of flow sheet design to treat both ores and to discuss the advantages and disadvantages of alternative flowsheets. Investigations also included toll milling options at various plants as well as second hand and transportable plants. Considerable technical effort has been put into ore characterisation by way of test work aimed at managing the process risk at each stage of project development, including mitigation. MRA also carried out detailed mineralogical analysis of the ores."

Jan 1, 2005

By T. Y. Chong, J. A. Folinsbee

Since milling began in 1909, the PJV Dome mill has been expanded several times, to the current throughput of 11,500 tonnes per day. PJV recovers free gold using crushing and grinding followed by gravity concentration. The remaining gold in the gravity tails is recovered by cyanide leaching followed by Carbon-In -Pulp processing. Prior to 1993, cyanide tailings were impounded in the tailings pond where cyanide was allowed to degrade naturally. Effluent was discharged seasonally during the summer and early autumn to maintain the water balance. In 1993, an Effluent Treatment Plant (ETP) was designed and constructed for the purpose of removing dissolved metals and suspended solids. In 1997, an INCO SO2/Air cyanide destruction process was added to the ETP. Even though the ETP was successful in meeting the cyanide, metals and total suspended solids (TSS) discharge limits, often the treated effluent failed to pass toxicity tests. Following successful laboratory and plant scale testing, the addition of the chelant EDTA (ethylene diamine-tetra-acetic-acid) was commenced in the 1999 operating season. To date, discharged effluent has passed all toxicity tests. This paper describes the evolution of the ETP from its early conception to the various phases of upgrade needed to meet the MISA discharge limits.

Jan 1, 2005

By R. Narendrula, S. P. Singh

The productivity of a loading machine is affected by several factors. One of the most significant is the characteristic of the muck being loaded. A study was conducted to examine the effects of the looseness, angle of repose, size distribution and moisture content of the blasted material on the efficiency of the loading machine. The study was conducted in the following stages: (a) controlled experiments in the lab, (b) tests with loader simulator and (c) field work in an operating mine. It was found that looseness (%void) in the muck increases with the increase in the value of the mean particle size and index of uniformity of the fragmented rock. Looseness and angle of repose affect the fill factor and the digging cycle time of a loader and in turn the productivity of the equipment. Moisture content affects the angle of repose as well as the stickiness of the material to the loader’s bucket. It was observed that the angle of repose increased with the increase in the mean particle size and the moisture content of the muck. It was also found that the bucket full factor and rate of scooping decrease with the increase in the values of mean particle size and index of uniformity. This was also conformed during fieldwork that bucket fill factor decreases with the increase in the mean particle size as well as the index of uniformity.

Jan 1, 2005

By Richard T. Stain

"In 2001, a pile trial site was established at Limelette in Belgium consisting of 25 displacement screw piles and 5 driven pre-cast piles. Interested parties were invited to participate in a pile prediction event, whereby they would submit predicted static load test behaviour in the form of load settlement plots. These predictions could be based on soil investigation results supplied by the organizers, or dynamic load test measurements.Following the submission deadline, the organisers released the results of static load tests for comparison.Of all the six participants, including Statnamic, the SIMBAT method was independently accredited with achieving the best predictions.This paper examines at the differences between SIMBAT and other systems, and presents the correlations from the Limelette trial.INTRODUCTIONThe Belgian Building Research Institute (BBRI) initiated an ambitious research programme involving the construction and testing of some 60 trial piles spread between two sites, a clay site at Sint Kateline Waver and a sandy site at the BBRI headquarters at Limelette. The project was financed largely by the Belgian Ministry of Economic affairs. (ref 1.) This paper refers only to the second site.At Limelette, six different types of displacement pile were installed: one driven pre-cast and five cast in place screw piles - Atlas, DeWaal, Fundex, Olivier and Omega. A detailed site investigation was carried out including in-situ and laboratory tests.An international pile capacity prediction event was publicised, participants being invited to predict static pile behaviour. Predictions could be based on:"

Jan 1, 2005

By J. R. Donald, K. Scholey

"Nickel has been mined and processed from the Sudbury basin for over 100 years. During this period, the process has evolved into what is one of the largest and most complex mining and metallurgical facilities in the world. This paper will describe the geology and mining of the Sudbury basin as well as the Copper Cliff metallurgical flowsheet circa 2005, including:•,Clarabelle Mill,•,The flash smelting furnaces,•,The bulk converters,•,Matte casting, separation, and processing•,The carbonyl refineries•,Carbonyl residue processing•,Copper processing•,Sulphur productsThe challenges of today and the opportunities for the future are discussed."

Jan 1, 2005

By K. Fagerlund, L. Rosenback, T. Mäkinen, Y. Anjala

This paper deals with the nickel smelter and refinery concepts Outokumpu has applied at Harjavalta and several other plants. Also other process routes and modifications developed and tested by Outokumpu during the recent years are highlighted. Outokumpu started nickel production in Harjavalta in 1959. Until 1995 the Flash Smelting - Peirce-Smith (PS) converting route was applied. High grade nickel matte from the converting step was further refined by means of leaching and electrowinning to produce cathode nickel. In 1995 the nickel production capacity was increased from 17 000 t/a to 52 000 t/a based on the Direct Outokumpu Nickel Smelting Process (DON). In the DON process PS converting is eliminated and high grade nickel matte with low Fe-content is directly produced in the flash smelting furnace (FSF). Metal values from the smelting slag are recovered in the electric furnace (EF) as iron containing Ni-matte. The DON process can be operated with either two matte concept, where high grade FSF matte and EF matte are produced, or a single matte concept, where EF matte is recycled to the smelting furnace and thus only one type of high grade matte is obtained. The additional refinery capacity at Harjavalta is based on hydrogen reduction producing.

Jan 1, 2005

During the past 10 years, research work to improve the survey of stope limits after mining supplied useful information, particularly for large open and sub-level stopes, regarding waste dilution caused by differences between final production limits and planned stope limits. However, the efficiency of this information to improve the overall efficiency of the mining process is limited, given that the impacts of inaccurate ore limits leading to dilution (sensu stricto) and ore losses haw not been considered adequately. Geological/sampling information should be optimized in terms of quantity and/or quality for the deposit characteristics and the constraints of the mining method used. As industry practice regarding the definition and recording of dilution is flexible and as ore losses frequently am poorly doc-umented, the use of these terms is reviewed. Simulations were carried out on two typical narrow gold deposits, based on an earlier study at Inco&apos;s Thompson mine regarding the impacts of wide to narrow delineation grids using recorded variations of vein geometry. Vertical to sub-vertical deposits of 3 m and 6 m widths mined by long-hole open stopes were considered. Deposits delineated by 7.5 m (25 ft) grids were taken as a base case and the impacts of less accurate limits in conjunction with long hole mining based only on a 15 m (50 ft) delin¬eation grid. The impacts of overestimation (dilution) and underestimation (metal losses) were considered separately, using the average error of +/-0.62 m recorded in the Inco study. The impact of less accurate information was much stronger on the narrower deposit: both dilution and ore losses diminished the net present value of the 3 m wide deposit by 39.27% and 45.41%, respectively, and that of the 6 m wide deposit by 12.84% and 11.55%. As the impacts of ore loss and those of dilution on the net present value am almost identical in these simulations, we could, in practice, assume a 50/50 split between dilution and ore losses in such a case. These results do no take into account the effects of local optimization measures taken at the mine production level (blasthole sampling near stope limits, etc.) The potential impacts of geological and sampling uncertainties in terms of lower NPV justify and require more systematic efforts to ensure that deposit appraisal work and feasibility studies are adequate to optimize company revenue and competitive returns to investors from mine production activities.

Jan 1, 2005

By Robert Yobou, Jacques Naho, Benjamin A. Allou, Jacques Carignan, Huan-Zhang Lu, Jayanta Guha, Koffi Pothin

"Résumé - Les seules productions de columbo-tantalite en Côte d&apos;Ivoire sont effectuées dans les éluvions, colluvions et alluvions d&apos;Issia, au Centre-Ouest de la Côte d&apos;Ivoire. Même si un lien direct avec les roches granitiques est suspecté, aucune attention particulière n&apos;a été accordée à l&apos;étude de la minéralisation primaire en relation avec l&apos;évolution de ces granites et des pegmatites associées. Ces granites, qui sont en intrusion dans les roches sédimentaires du Protérozoïque inférieur, comprennent: le granite orienté à deux micas (type Lobo), le granite orienté à muscovite dominante (type Bitapia) et le granite porphyroïde non orienté à muscovite dominante (type Issia). Les résultats de cette étude indiquent que les pegmatites à Nb-Ta-Be-Li sont liées au granite de type Issia. Les observations de terrain et les analyses sur roche totale montrent que: (1) les trois principaux granites de la région sont de type-S et peralumineux dans leur composition, (2) ils ont été formés pendant la période tardi- à post-Éburnéenne, (3) le granite de type Issia fut le dernier à se former.Les pegmatites liées au granite de type Issia ont été classées en quatre types : A- pegmatites stériles; B- pegmatites à Be; C- pegmatites zonées à Nb-Ta-Be; et D- pegmatites zonées à Be-Nb-Ta-Li. Les pegmatites zonées comprennent les zones suivantes: I- zone à aplite; II- zone graphique; III- zone à albite, microcline, béryl et columbo-tantalite; IV- zone à microcline massive; V- zone à quartztourmaline. Ces pegmatites présentent une zone d&apos;altération métasomatique externe.La minéralisation de Ta, Nb, et Be est liée à la zone III des pegmatites de types C et D, la minéralisation de Li est associée aux greisens qui peuvent être observés n&apos;importe où dans les pegmatites de type D. Les données de terrain et de laboratoire indiquent que le granite de type Issia est la roche parentale des pegmatites à éléments rares de la région. Les pegmatites minéralisées sont distribuées seulement autour du granite de type Issia et les patrons des terres rares des granites et ceux des pegmatites à éléments rares sont très similaires. Les analyses de la composition totale montrent un lien génétique entre le granite de type Issia et les pegmatites à éléments rares. Il est suggéré que les pegmatites ont été formées durant le transport et la cristallisation fractionnée du magma. Les éléments rares sont restés dans le liquide résiduel jusqu&apos;à ce que les conditions favorables à leur précipitation soient atteintes.L&apos;établissement de ce lien génétique ouvre des voies pour des nouvelles stratégies d&apos;exploration."

Jan 1, 2005

By Amanda Verno, Danilo Coppe, Andrea Reggiani, Adolfo Bacci

The methodological example that comes from the demolition of the Genoa grain silos, should not been considered as an auto-celebration of a difficult project successfully executed, but should serve as an example of a new generation of demolitions where different technologies, often in competition, come together to obtain the optimal solution of a problem. Dynamite, diamond wire and hydraulic excavators overcame the most impressive building in town, working in very little spaces and on a geotechnically difficult site; moreover, a study on the dynamics and the effects of the impact of the structure, an analysis of the presence of potentially explosive dusts and an extensive vibrometric monitoring supported the design and the development of the operations.

Jan 1, 2005

The lignites of Otago and Southland offer a potentially viable future feedstock for electricity production and possible conversion to petrochemicals or liquid fuels. The deposits, when combined, represent New ZealandÆs largest energy inventory; equivalent to about 74 000 petajoules û or approximately 35 times current natural gas reserves. Too often dismissed as irrelevant to New ZealandÆs energy future because of adverse perceptions of the value of low rank coals, the strategic value of this resource is in fact huge. &nbsp; Investigations of the lignites extend back over more than 50 years (LFTB various, CRL Energy Ltd). Whilst it is not the intention of this paper to review this work, these investigations have confirmed the suitability of the resource as a feedstock for thermochemical conversion. Current estimates of South Island lignite mining costs are NZ$1.0 - 3.0/GJ (Natusch 2005), making these resources amongst the most competitively-priced energy sources available world-wide. &nbsp; This value, however, will only be captured if we as a country begin to envisage a world-scale, long-life, integrated and multi-faceted development sized to supply world markets for chemicals or fuels. Recent CAE studies (Hooper and Riddolls, 2005) have emphasised the vital importance of ensuring that any exploitation of this resource maximises their value to New Zealand. The question that thus must be applied is how might large-scale utilisation of the resource fit with New ZealandÆs primary energy supply, and its potential for the export of high-value commodities. &nbsp; From the broader perspective of New ZealandÆs total energy supply equation we need to examine other supply options beyond just the generation of electricity. We face in this country a situation wherein almost all our liquid fuels feedstock has to be imported with projections for an increasing dependence on imported oil. In addition NZ has a natural gas reserves-to-production ratio of less than ten years, and dwindling supply from local production. Without further natural gas discoveries, New Zealand has only a window of approximately five years before we will need to commit to imported LNG or some other thermal fuels option. &nbsp; In other words, New Zealand is facing an uncertain future unless we can restore energy inventories to cover an adequate strategic reserve capacity as well as enable long-term investment in alternative sources. Within this context the South Island lignite resources are thus deserving of more attention. The extent of the resource is well known, its suitability for conversion reasonably assessed, and its magnitude such that there is little doubt that lignite conversion could adequately meet NZÆs future energy needs for many years out. &nbsp; This paper reviews coal gasification technology, its application to lignite and the possibilities for future development of the lignite resources. It is argued that the strategic imperative for this country is to secure the lignite resources as a primary energy source for this country well into the latter half of this century.

Jan 1, 2005

By S. Gregory

Many gold treatment plants have sulphides and coarse particle gangue components that contain gold in their tailings (cyanide leach residues and flotation tailings). Coarse and very fine liberated gold may also be present in some tailings streams. Two issues usually govern the economics of recovering additional gold from gold occluded in sulphide and gangue particles. The liberation characteristics of the gold in the sulphide and coarse gangue (gold liberation versus grind size) is the first and most important of the two. If fine grinding can liberate a reasonable amount of the gold, then the next important issue is how effectively these two constituents can be concentrated. Flotation will achieve high sulphide recovery but is usually costly. Selectivity is also an issue because of entrainment. Continuous centrifugal gravity concentration offers a viable solution to the recovery of both sulphides and coarse gangue however selectivity is also likely to be a problem. The possibility of improving concentrate grade by using a Falcon B separator was investigated. This paper describes a program of test work carried out on a gold leach tailings using a laboratory Falcon &apos;13&apos; separator. The program involved three different bowl angles: 10, 12 and 14 degrees and two bowl speeds (giving 250 and 350G accelerations). A number of tests were also performed on samples that had free gold present to ascertain the size-by-size recovery of gold in these samples.

Jan 1, 2005

By Ali Yalçin

The study area is located in the NW of Uluborlu (Isparta). Massive limestones and alluvial deposits form the lithological units of the study area. The average thickness of the alluvium deposit consisting mainly of light brown - red colored and fine grained clastic sediments which derived from the limestone is about 10 meters. The aim of this study to investigate the uses of this alluvial sediments as tile - brick material. For this aim, disturbed and undisturbed samples have been taken from different depths in the alluvial deposits. Mineralogical compositions have been determined by XRD and major oxide contents by XRF. Laboratory experiments have been carried out to determine the technological properties of the samples. The selected major oxide contents of samples vary between A12O3 (24.6 - 24.12 wt %), CaO (0.76 - 4.27 wt %), Fe2O3 (10.21 - 10.29 wt %), MgO2 (1.25 - 1.51 wt %). CaCO3 and MgCO3 values calculated from the geochemical analyses, are between 1.55 - 1.62 and 2.62 - 3.17 respectively. The ratios of grain size of the samples are 82 % for < 0.2 mm and 5 % for > 3 mm. Geochemical analyses and technological features of the samples indicate that these fine grained sediments of alluvial deposit are suitable in terms of uses as tile - brick material. The potential reserve of this tile - brick material has been determined as 40 million tones.

Jan 1, 2005

By P. D. Kondos, J. R. Goode

Given the global inventory of low grade and refractory gold deposits, processes that could turn these challenged deposits into mines are of considerable interest. Such gold deposits have low value and potentially high operating costs and so they pose special challenges for the mining engineer and metallurgist. Conventionally, refractory gold ores have been processed by whole ore pressure oxidation and roasting, or flotation followed by roasting, pressure oxidation or bio-oxidation of the concentrate. Halide-based processes have recently been developed that might be applied to concentrates. Low grade refractory gold ores have been processed using heap bio-oxidation followed by cyanide heap leaching or milling. Other processes are emerging. Barrick has completed an inventory of emerging technologies (1). A summary of the current status of these developments will be presented with the view that, with additional development, some of these technologies or a combination thereof may unlock the value of these deposits.

Jan 1, 2005

By A. I. Collins, D. Danninger

Newmont has installed advanced control and online optimization on the dry grinding circuit and both roasters on its Carlin Trend refractory ore treatment plant. Subsequently, Newmont has developed a master plan for institutionalizing advanced control and optimization on all its processing units. Newmont is committed to a program of applying advanced control and optimization from crushing of ore to pouring of gold. This paper describes Newmont&apos;s experience with implementing advanced control and optimization and the benefits received. In addition, identification of advanced control and optimization opportunities and their economic justification is discussed.

Jan 1, 2005

By J. Chenier, M. Boissoneault, D. Ducharme, R. Schonewille

The operation of Falconbridge&apos;s Sudbury nickel smelter has undergone significant change since the production was consolidated to a single electric furnace in 1994. In the late 1990&apos;s a capital program of about $100 MM (Cdn) was undertaken to expand and modernize the smelter. This project, known as Smelter 2000, was mainly driven by the need to process the new concentrate produced at Falconbridge&apos;s Raglan operation in northern Quebec. Included in the scope of the project was the installation of dry concentrate handling facilities, modifications to the roaster feed preparation system, installation of a matte granulation system and modification of one of the converters. Improvements to in-plant hygiene were also an important part of the Smelter 2000 project. Over the past 5 years much has been learned about the challenges in treating two significantly different concentrates. More recently, the introduction of a third concentrate from Falconbridge&apos;s new Montcalm operation near Timmins, Ontario has added another dimension to the operation. This paper will describe how the main challenges from the past 7 years have been overcome and discuss the path forward for the Sudbury Smelter Business Unit.

Jan 1, 2005

A novel, low-pressure adaptation of Praxair?s coherent jet technology utilizing CoJet lances was developed for application at Inco&apos;s Copper Cliff Smelter where oxygen is available in large tonnage quantities but only at relatively low supply pressures (< 193 kPa header pressure). The project objectives were to evaluate the effect of coherent jet technology on controlling oxygen lance accretion (?horn?) formation and to increase oxygen efficiency in the Inco Oxygen Top-Blowing Nitrogen Bottom Stirring (TBBS) MK Reactor used for converting nickel- contaminated chalcocite to semi-blister copper. This paper describes the development and subsequent implementation and testing of two CoJet lances in this application.

Jan 1, 2005

Good morning and thank you for the opportunity to address this yearÆs New Zealand Minerals Conference. &nbsp; As you have already heard from the Associate Minister of Energy, the Government believes that the minerals industry is an important part of our economy. In particular, our coal and lignite resources have the potential to play an important role in New ZealandÆs energy sector as both a primary fuel and as a means to produce electricity. &nbsp; The Government has taken a keen interest in the primary fuel sector given the declining reserves of natural gas sector. The energy sector is a key driver of economic growth and it is therefore critical that we have a reliable supply of primary fuel as part of the energy mix. &nbsp; In a global sense, New Zealand is like many other countries regarding the need to secure energy for the future. Natural gas will be a key bridging fuel in the transition from an energy market based on fossil fuels to one based on renewables over the next century. &nbsp; However, natural gas as a solution to this energy transition has some pragmatic limitations for New Zealand. There is uncertainty as to when new domestic reserves of gas can be discovered and developed. And the alternative of imported LNG poses a number of costs and risks to the economy. &nbsp; New ZealandÆs coal resources are vast-estimated to be enough to last hundreds of years at the current rate of extraction. The main question is can extraction be increased and sustained to meet the demand of domestic power producers and at the same time meet commitments to lucrative international markets? &nbsp; At this point it is appropriate for me to place coal into context with Governments overarching policy objectives for energy. The Government has stated objectives for the energy sector emphasising energy efficiency and an increased focus of renewable energy, while still ensuring security of supply and certainty as to energy costs and risk. Coal certainly can make a contribution to these objectives going forward.

Jan 1, 2005