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By C Jia, J Graindorge, L M. Olssen

Picking up abandoned mining tenements and looking to recover remnant resources around old operations is an opportunity that comes with its own challenges and risks. Reliance on information released to government departments (such as the Department of Mines and Petroleum (DMP) in Western Australia) by the previous owners, can compound the risk.This paper explores Alto Metals Ltd’s Lord Nelson and Lord Henry deposits and surrounds near the town of Sandstone in Western Australia. The Lord Nelson and Lord Henry open pits produced around 2 Mt of ore for over 250 koz of gold during production between 1999 and 2010. There has been no further work carried out in the area between 2010 and 2016. The deposits are open at depth and along strike.Alto Metals picked up the tenements in 2016 and has subsequently re-estimated remnant resources around Lord Nelson and Lord Henry, and publicly reported updated Mineral Resources in accordance with the JORC Code 2012.All of the information was manually compiled from data released to the DMP and annual reports. This paper highlights the challenges and risks arising from this data compilation, geological interpretation, re-estimation and classification process, together with future opportunities and challenges for further developing the area.CITATION:Olssen, L M, Graindorge, J and Jia, C, 2017. Starting from scratch – defining remnant resources from publicly available data: a case study from the Lord Nelson and Lord Henry gold deposits, in Proceedings Tenth International Mining Geology Conference 2017, pp 175–188 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 20, 2017

By Ian Thomson

OBJECTIVES OF EXPLORATION ? Prove/Disprove presence of potentially economic mineralization ? Keep on budget ? Minimize negative environmental impacts ? Gain a ?Social License to Operate? (SLO) WHAT IS A ?SLO? ? Granted by the local community ? Intangible, informal, non-permanent ? Has to be earned and then maintained ? Defined as ? Ongoing Approval (BSR and AccountAbility) ? Ongoing Approval, broad social Acceptance (Joyce and Thomson) ? Ongoing Acceptance (Nelson, and many others) ?Expression of the quality of a ?relationship?

May 1, 2010

By Paul Harvey

Following initial discovery in 1991, BHP Billiton Diamonds Inc opened Canada?s first diamond mine, the Ekati Diamond Mine TM (Ekati) in the Northwest Territories on October 14th, 1998. Four short years later on November 29th, 2002, saw the opening of North America?s first underground diamond mine - the Koala North mine. Nestled between the original Panda open pit and the new Koala pit which is in the early stages of production, Koala North represents the only underground kimberlite mining venture in arctic conditions outside the new underground mines being developed by ALROSA in the Yakutsk region of eastern Russia. Extensive underground kimberlite mining has been practiced in the Republic of South Africa for much of the 20th century and continues today. Underground mining represents a key component of the long term business plan for the Ekati. As various open pits reach their economic limit, continued recovery of high value ore at depth is dependent upon the ability to productively mine the kimberlite pipes by underground methods. As a function of its location, size, and value, the Koala North pipe is ideally positioned to host the first underground mine at Ekati . In addition to being a production source for the operation, Koala North is designed as a learning mine, from which to gain valuable experience in preparation for the potential mining of other larger, higher value pipes by underground methods in the future. Fortuitously Koala North was available for development so the learnings could be integrated into the Panda mine design prior to completion of the Panda pit. Establishing our first underground diamond mine, and applying the open benching mining method in arctic conditions brings a unique combination of mining challenges together in a harsh climate and remote environment. This paper examines the design and establishment of the Koala North mine. Discussion includes experiences gained from the first year of development, production start-up, and provides a brief overview of our potential underground future at Ekati .

May 1, 2003

By P. Harvey

"Following initial discovery in 1991, BHP Billiton Diamonds Inc. opened Canada’s first diamond mine, the EKATI Diamond Mine (EKATI) in the Northwest Territories on October 14, 1998. Four short years later, on November 29, 2002, saw the opening of North America’s first underground diamond mine, the Koala North mine. Nestled between the original Panda open pit and the new Koala pit, which is in the early stages of production, Koala North represents the only underground kimberlite mining venture in Arctic conditions outside the new underground mines being developed by ALROSA in the Yakutsk region of eastern Russia. Extensive underground kimberlite mining has been practiced in the Republic of South Africa for much of the 20th century and continues today.Underground mining represents a key component of the long-term business plan for EKATI. As various open pits reach their economic limit, continued recovery of high-value ore at depth is dependent upon the ability to productively mine the kimberlite pipes by underground methods. As a function of its location, size, and value, the Koala North pipe is ideally positioned to host the first underground mine at EKATI. Koala North is designed and approved as a learning mine, from which to gain valuable experience in preparation for the potential mining of other larger, higher value pipes by underground methods in the development, the Koala North mine is well into its production ramp-up phase and currently producing at around 1,200 t/day from the first two production levels."

Jan 1, 2005

My first regular job nearly fell through. My parents were spending the summer in California and I joined them at Lake Tahoe where we were guests at the lovely summer home of the Reids of Belmont. The time went quickly but I was eager to start work so I left for Bisbee a few days earlier than I had arranged. This was lucky, as just after I left a letter came from Gene Whitely, chief engineer of Calumet and Arizona, saying that because of the depressed copper industry there would be no job. I reached Bisbee on a Saturday morning, a day or two before my 23rd birthday, July 27, 1907. The brown plastei four-story Copper Queen Hotel was only a few steps from the station where the branch railway ended. I rented the cheapest room on the top floor and, of course, there was no elevator. I soon learned how to walk up the mile of switching tracks to the Calumet and Arizona office at the Irish Mag mine. I was horrified when Whitely told me about his letter telling me not to come, but since I had not received it he relented and said I could work for a short time anyhow. I was to start at 7:30 the next Monday morning, "holding the ignorant end of the tape”-in other words being surveyor's assistant, at $100 a month. Hours were from 7:30 to 5: 00, seven days a week. I spent Sunday walking around the town. I rented a room at the Royal Lodging House, which was cheaper than the hotel. It smelled strongly of carbolic acid but that meant no bugs. Compared with Cobalt or Cripple Creek, Bisbee didn't seem unattractive. The main street, with one or two-storied stores and saloons, followed the bottom of the canyon with high steep hills on both sides. My lodging house was on a rock in a narrow spot in the canyon, discouragingly called Tombstone Canyon. Chihuahua Hill, opposite the

Jan 1, 1976

By M Norbert, D O’Connor

The mainline running tunnels for Legacy Way comprise two tunnel boring machine (TBM) driven tunnels. Both TBM drives commenced at the Launch Portal adjacent the Mt Coot-tha Road. Excessive surface settlement arising from tunnelling would have had a significant impact to the road infrastructure. The geological structure above the tunnel springline is a mixture of fill, residual soil and weak rock. Given the combination of low ground cover and weak ground materials, along with the use of an open face TBM, an oversize pipe umbrella system has been installed above the tunnels. This pipe umbrella system is similar to that commonly adopted in conventional mined excavation support in soft ground except that the steel pipes are substantially larger in geometry and filled with concrete. It is acknowledged that similar systems with oversize pipe umbrella have been adopted elsewhere in the world in other projects. These systems often comprise of a full arch formed by conjoining oversize steel pipes (in contact only). By aligning the pipes in contact, the arching behaviour of the steel pipe would have been enhanced. However, this poses a degree of construction difficulty due to excavation and installation method of the pipes. The Legacy Way pipe umbrella system only consists of a partial arch at the tunnel crown and each pipe is spaced approximately 1200 mm apart with 900 mm diameter pipe, leaving a gap of approximately 300 mm between pipes. A reinforced concrete portal block was used to support the exposed ends of the pipes.This paper reviews the design analysis, the recorded deflections from the pipe umbrellas and surface monitoring during TBM launch and revisits the analysis using the newly available RS3 program, from Rocscience for 3D analysis of geotechnical structures.CITATION:Norbert, M and O’Connor, D, 2014. Starting the journey – launching of the Legacy Way open face tunnel boring machines in mixed face ground conditions, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 307–314 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

By O van Baalen

The Ernest Henry Mine is a copper-gold open pit operation situated in northwest Queensland, Australia. It is owned and operated by Xstrata Copper, with a current throughput of 11 Mtpa, however, open pit operations are scheduled to cease in mid 2011. The deposit dips approximately 45º and extends for at least another 400 m vertically below the final 530 m deep pit design.Construction and development of a sublevel caving (SLC) operation beneath the open pit was approved in December 2009. The feasibility design requires 39 km of development to be completed prior to production, which will commence in the fourth quarter of 2011. Initial ore production will be trucked and will increase to 3 Mtpa by the end of 2012, after which a hoisting shaft will be used. Ore production will then increase to 5 Mtpa in 2013 and ultimately to 6 Mtpa in 2016.Two 3000 kilo watt of refrigeration (kW(R)) modular refrigeration plants will be installed, as well as two 1600 kW mixed-flow fans capable of a combined flow rate of 780 m3/s at a total pressure loss across the mine of 2000 Pa. The main fans will be installed underground and will exhaust into the base of the pit.The following challenges were faced in the development of the ventilation and refrigeration network:•a relatively steep geothermal gradient,•tropical ambient conditions,•working under a wide pit shell, and•a large underground trucking fleet prior to shaft commissioning.A considerable number of ventilation studies were conducted with later studies extensively using Ventsim Visual™ mine ventilation software to complete the design process of the ventilation and refrigeration networks, including the comparison of several alternative designs. The paper focuses on design challenges prior to the commissioning of the hoisting shaft, and discusses resistance optimisation and occupational hygiene-related design parameters, such as heat and diesel emissions, production level ventilation, main fan selection and location, and refrigeration requirements.

Mar 21, 2011

By B. H. Johnston, B. N. Doyle

Introduction In 1983-84 Kidd Creek Mines Ltd. in Timmins, Ontario, started up the second commercial zinc pressure leaching plant based on the Sherritt Gordon Mines Ltd. direct pressure leach process. The first plant using this process was that of Cominco Ltd. at Trail, B.C. (Parker, 1981; Martin and Jankola, 1985). The Kidd Creek plant was constructed to take advantage of the extra capacity that the existing purification, cell house, and casting sections had in comparison to the roasters and acid plant. In addition, pressure leaching offered flexibility in other areas such as treatment of low grade concentrates. The process design package and the detailed design of the autoclave system was carried out by Sherritt. The detailed design for the rest of the plant was done by Cambrian Engineering Ltd. under the direction of Kidd Creek. The construction and commissioning of the plant has been described earlier (Johnston, 1983). This paper describes, briefly, the application of the direct pressure leaching process for zinc concentrates and the integration of the pressure leaching plant into the main zinc plant at Timmins. It discusses some of the startup problems and changes made to the plant. The damage following a fire inside the autoclave is also described. The subsequent repair and recommissioning of the autoclave has enabled Kidd Creek to demonstrate the originally sought advantages of pressure leaching and to take advantage of their extra cell house and casting capacity to produce more zinc. Process principles The development of the direct pressure sulphuric acid leach of zinc sulphide concentrate at temperatures above the melting point of sulphur and at elevated oxygen pressure has been described in detail in a number of papers (Martin and Jankola, 1985; Johnston, 1983; Veltman and Bolton, 1980; Kawulka et al., 1975; Veltman et al., 1977). The most significant aspect of the process is that sulphidic sulphur is converted to elemental sulphur in reactions that can be simply described as follows. ZnS + H2SO4 + 1/2 O2 ZnSO4 + S° + H2O (1) FeS + H2SO4 + 1/2 O2 FeSO4 + S° + H2O (2) The rates of these reactions increase with temperature. However, at temperatures above the melting point of sulphur, 12°C, the presence of a surface active agent is necessary to prevent the occlusion of the sulphide particles by elemental sulphur and the consequent termination of the leach. The zinc that is dissolved according to reaction (1), after purification of the zinc sulphate solution, is recovered by electrowinning. The iron that is put into solution according to reaction (2) is further oxidized to the ferric state and subsequently, as the acidity decreases, precipitates as hematite or as complex basic sulphates. MINERALS AND METALLURGICAL PROCESSING Examples of this are shown below. 2FeSO4 + H2SO4 +1/2O2 - Fe2(SO4)3 + H2O (3) Fe2(SO4)3 + 6H2O - Fe2O3.3H2O + 3H2SO4 (4) 3Fe2(SO4)3 + 14H2O - 2(H3O)Fe3(SO4)2(OH)6 + 5H2SO4 (5) (hydronium jarosite) The conventional zinc process involves concentrate roasting to produce zinc oxide and sulphur dioxide. The zinc oxide is leached in spent electrolyte and the sulphur dioxide is converted to sulphuric acid. The pressure leaching process can, therefore, be used to replace conventional concentrate roasting, sulphuric acid manufacture, and atmospheric leaching with one unit operation. Integration of pressure leaching into the Kidd Creek flowsheet A block flowsheet of the Kidd Creek zinc plant, with the new pressure leach plant integrated, is shown in Fig. 1. The original plant, which was constructed in 1972, is based on standard electrolytic zinc plant technology. Concentrates are dead roasted to remove sulphur. Sulphur dioxide is treated to produce sulphuric acid. Calcine is leached in two stages using cell-house electrolyte. Iron is precipitated as jarosite and solutions are purified to remove copper, cobalt, nickel, and cadmium to provide feed for a partially mechanized cell house. Zinc is plated from solution, and the resulting cathode is melted, cast, and sold (Johnston, 1983). The integration of the pressure leaching plant into the main zinc plant is relatively simple. As shown in Fig. 1, a fraction of the zinc concentrate and spent electrolyte are fed to the pressure leach autoclave, while part of the calcine from the roaster is used as a neutralizing agent in the oxidation step along with. the jarosite leach solution. The main exit stream from the pressure leaching plant is the slurry discharged from the oxidation step, consisting of neutral zinc sulphate solution, unreacted calcine, and precipitated iron oxides. This slurry is transferred to the neutral leach step in the main zinc plant. The leach residue from the pressure leaching step, consisting of basic iron sulphate and elemental sulphur, is washed and impounded along with the jarosite residue produced in the main plant.

Jan 1, 1987

By Finlay Campbell

Nickel laterite pressure acid leach plants and reduction roast plants have had a checkered history in their engineering, construction, startup and operational reliability. Many potential projects have been the subject of detailed studies over the last thirty to forty years but relatively few have advanced to commercial production. Four reduction roast plants are currently operating, an additional one was partially constructed but never completed, and another was started up in 1974 and shut down after 12 years operation. Three acid leach plants have been built and commissioned in the last five years, trying to follow the example of the Moa Nickel plant in Cuba. An additional acid leach plant project is currently on hold, following limited construction work, its future subject to review by the owner because of potential cost over-runs. This paper attempts to discuss difficulties that may be encountered as a project is developed and will address factors which may affect production ramp-up schedule, long term production performance and overall production success. Comparisons are made with ramp-up performance at other large metallurgical plants that employ some comparable unit operations. Keywords: Caron, PAL, nickel laterite ore, ramp-up, reliability, process development, equipment design, step-out, commissioning, startup.

Jan 1, 2004

By Dale C. Matthews

The Getchell Gold Hine is located about 40 miles northeast of Winnemucca, Nevada. Gold was discovered at the mine in 1934 and production was started in 1938 and ended in 1967 for its first phase of operation. Gold production during this period was about 800,000 ounces. In 1983, FirstHiss Gold Inc. purchased the property and initiated an exploration program that proved minable reserves of about 1,300,000 ounces of gold remained in the mine. During the exploration period, metallurgical testing was conducted to determine the most economical process that could be utilized for recovery of gold from the very refractory ore. After extensive investigation, pressure oxidation of the ore was selected, Engineering for the new plant commenced in 1987 and construction was completed in 1989 at a cost of about $87,400,000.00, not including financing cost.

Jan 1, 1990

By A. Rajan

"Drawing upon the experiences of a gold extraction plant startup in the Southern Pacific, this paper will describe the importance of the commissioning phases to the project outcomes to achieve early target production despite an overall time compression to attain full plant production. Some of the highlights of the paper include: impact of roles played by the Owner’s construction and operations representatives during project commissioning, the formation of a capable and competent “Mod Squad,” availability of trained operating personnel, control over work priorities and the scope of work needed to bring the plant to safe initial operations. The commissioning team comprised subject matter experts skilled in process technology supported by “generalists” thoroughly conversant in overall plant operations. The merits of a structured team approach to brainstorm and resolve commissioning challenges as opposed to direction from individual subject matter experts is discussed. IntroductionStartup or commissioning is a unique period in the life of a project. Each stage of a project-exploration, feasibility, design, construction, commissioning, initial operations and continuing operations-requires special talents, know-how, and practices. Each stage makes particular demands of the people involved. Initial operations are no exception.Having experienced the 1997 startup phases of oxide and sulfide facilities for a gold extraction plant at a remote island in the Southern Pacific, I can attest to the many challenges and rewards. Commissioning for both facilities was extremely successful and brought the entire project on line well ahead of the targeted completion dates. Using this specific project as an example, this paper will highlight some of the key features of project commissioning. In this paper, the term “pre-commissioning” denotes all activities that lead to mechanical completion; “commissioning” occurs when feed is introduced; and “initial operations” are defined as the duration when operations accepts the system/facility and takes over."

Jan 1, 2000

By G. J. Skoronski

The training school program for operation of a Grate-Kiln System is a comprehensive, detailed presentation of equipment design and maintenance combined with operating philosophy and procedures. An outline is presented relating the sequence of required instruction. The program is initially concerned with acquainting personnel with terminology unique to pelletizing and the Grate-Kiln System. Depending on the scope of each individual contract, a discussion describing process equipment and the process flowsheet is conducted. The process flowsheet discussion describes preliminary unit operations. Grate-Kiln System unit operations, process gas flow and gas flow control philosophy, and system pressure relationship.

Jan 1, 1977

By Stuedel J

Starting from comprehensive programme systems for monitoring tasks of any kind, this paper follows the steps of the programme system hierarchy from top to bottom. The monitoring and control centres for entire production units, the subordinate centres, i.e. district control centres, the microcomputer based autonomous control systems, and data input by mobile terminals are discussed. To an increasing extent, the main emphasis is shifted from monitoring and control of individual machinery to optimized operation of extremely complex comprehensive systems. Network displays, for instance displays of production, transport, supply- and evacuation-networks as well as of safety systems, gain increasing importance. Personnel deployment systemsand planning networks as well as stocktaking and accounting are more and more closely linked with the above-mentioned networks. In order to keep development and application (purchasing) costs low, and to assure compatibility, the use of standard modules is to be assigned particular importance. New module developments are introduced, and the design of standard interfaces for computer and module coupling are discussed.For conclusion, a short view is given on the opinion of the line manage-ments on how future hierarchic systems should be featured in terms of individual units and overall systems, and used.

Jan 1, 1985

The object of this talk is to bring before members the importance of the prospector and the' State Battery system to the wealth and prosperity of the mining industry in particular and the State of Western Australia in general, and to touch on the more important features.Customs plants of any sort are usually subject to a good deal of critioism, usually on the large profits made at the expense of the customer, etc., and this often clouds the real value of the work being done.Prospectors, on the whole, are a good class of men; they work under conditions and difficulties which would deter those less spirited. Food, water and mining supplies are often difficult to obtain and frequently have to be transported great distances. Their mining tools are usually of the most primitive type, yet during last year over 109,000 tons of prospectors' ore were handled by the State Battery system for 73,250 fine oz. valued in Australian currency at over £587,000, the value being 57/- per long ton at par.This production brings the State Battery system into fourth position amongst the producers of the State, the yield being exceeded by the Lake View and Star, Wiluna and the Great Boulder.In passing I might mention that these notes were written at the end of the year 1940, and the above figures were for the previous period. The figures for last year, 1940, were not quite so good, being 101,000 tons for approximately 60,000 fine oz., valued in Australian currency at £572,000.In spite of this drop the State Battery system maintained its position as fourth in order of gold output for the State.The extractions, as a whole, throughout the system, were 92·54%, made up of 68·86% by amalgamation and 23·68% by cyanidation. These figures, for a group of 20 plants treating widely different classes of ore, must be considered satisfactory. The total production since inception is over £11,000,000 in Australian currency.State Batteries are usually more or less of a standard design. Ore is reduced to about 2i in. maximum size before being sent to the bins. Challenge automatic feeeders control the feed to each mill unit, amalgamated copper plates collect the free gold. Corduroy strakes are used with some ores after amalgamation, but in only a few cases has this been found of any advantage to the customer.The pulp from the battery is sampled, after leaving the tables, with a "Tazewell" sampler and pumped to dams for subsequent cyanide treatment.The "Tazewell" sampler is a machine driven by the moving pulp; and takes about fifteen dips per .minute from such pulp through a slotted...

Jan 1, 1941

The Industrial Minerals Division met jointly with the Materials and Equipment Division of the American Ceramic Society at State College, Pa, Sept 24-26 Headquarters were at the Nittany Lion Inn Thurs- day afternoon was devoted to a tour of inspection of the Bell Mine, American Lime and Stone Co , Bellefonte, Pa The party returned to State College for dinner and in the evening the Division's executive committee held a brief session There were four technical sessions Friday morning, Mining, afternoon, Beneficiation, Saturday morning, Industrial Minerals and Beneficiation There was an informal banquet at the Nittany Lion Inn Friday night with 93 present Edward Steidle was toastmaster Brief talks were made by President F C Flint and Secretary Ross Purdy, of the American Ceramic Society, Oliver Bowles, Chairman, Industrial Minerals Division, Adrian Morse, assistant to the president, Pennsylvania State College, and George Otis Smith, past president A I R'I E

Jan 1, 1937

By A. M. Radigan, W. G. Prast

Various industrial minerals that are traded internationally receive support from governments, enabling these materials to be more competitive. The role of government in encouraging nonmetallics exports ranges from the ownership of an integrated mining company to partial or selective government ownership, to the sponsorship of exporter organizations. In certain cases, regional governments have a direct stake in the industrial minerals industry. This paper assesses the commercial impact of these involvements.

Jan 1, 1984

By W. G. Prast

The role of governments as a factor in the international non-metallic minerals industry can take several forms. Classically, the government acts as a taxing agent, collecting part of the economic rent on behalf of the country from private-sector mine operators. In addition to its taxation policies, the state can and does provide the practical commercial framework of regulatory and fiscal incentives and restraints that shape the activities of the mining firms. In addition to its functions as an agent of the public interest, the government can choose to take a more direct stake in the mining industry, and has done so in the instance of several industrial minerals that are actively traded on world markets. In this paper, the actions of three governments are reviewed and the consequences of their actions are examined.

Jan 1, 1981

Researchers, medical organizations, statisticians, and others often use data on the nature and rate of occurrence of occupational diseases in directing their efforts and plans. Very often this information is developed from the reports of the States which describe the nature of work¬men's compensation claims and awards and the frequency with which they are made. To be meaningful, the statis¬tical information must be viewed in the context of the State laws involved. There is considerable variation among the laws of the different States. The Bureau of Mines has responsibilities for protecting the health of persons employed in the mineral industries and for the development of useful mineral products. To assist the Bureau in the accomplishment of its objectives, this compilation has been undertaken. For the benefit of the mineral industries, and any others who may have a similar interest, this volume is made available. An earlier compilation of the Bureau of Mines on this subject was published in 1952.4 However, during the intervening years, sufficient changes have been made in State laws to warrant completely recompiling the information. This publication includes the laws of the States, the District of Columbia, Puerto Rico, and the Virgin Is¬lands through 1964. Only those portions of the workmen's compensation laws which apply to or as ' related to occupational diseases are presented, and in each case enacted additions to and deletions from the basic law have been incorporated into the text of the law, thus snak¬ing it unnecessary to search out the various amendments made each year.

Jan 1, 1967

By William Gilman

IN the past five years, and without much fanfare, Turkey has emerged as a significant figure in the world mining picture. This has been accomplished by a five-year plan now in its last year. A second five-year plan is already under way, ahead of schedule. It will concentrate even more than the first in developing Turkish mines in order to increase present exports of coal, chrome ore, and copper, and to develop new mineral exports as well. To be fully understand the republicic?s mining program should be considered as something more than merely tapping rich resources in the East along the Aegean Sea, in the North among the mountains descending to the Black Sea, and in the West at the foot of the Taurus Mountains. It should also be viewed in the light of a strong nationalist policy with many aspects of state socialism. Turkey declares frankly that all mineral re- sources belong to the nation and all exploitation should be by the state for the twin purpose of modernizing the state and securing foreign exchange for the state by exports. Accordingly, the principal mines are state-operated and a few lesser enterprises, although not state-owned, have at least been put in the hands of Turkish capital.

Jan 1, 1938

The Mining Act (1992) and the Petroleum Act (1980) provide for the Government of Papua New Guinea (PNG) to take up equity holdings in mining and petroleum projects. The price the Government pays for its share is based on the historical cost of exploration and development on the project to the date of government equity acquisition. The equity level to be acquired is not fixed and ranges up to 30o for mining and up to 22.5s for petroleum at the discretion of the Government of the time.The objective of this paper is to examine the pros and cons of State equity holdings in PNG from the point of view of both the State and the developer. Using an economic model of the PNG mining taxation system an assessment is made of the effective return on investment received by the State from such equity holdings. The results are compared with government revenues from other taxation measures.

Jan 1, 1994