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The transition from exploration to feasibility is a stage in the development of mineral resource projects that is frequently not handled well. The transition marks a point in the project development process where resource evaluation priorities change significantly from the discovery of mineralisation and the rapid assessment of the potential tenor of the mineralised system, to the detailed assessment of the deposit.   Information used in the exploration process tends to be of a qualitative or theoretical nature initially, but gradually becomes more quantitative in character as geological knowledge relating to individual prospects grows.   The transition from discovery and rapid exploration of a new deposit occurs at a relatively early stage in project development, coinciding with the first attempt to prepare a resource estimate for the deposit. Fundamental assumptions regarding both structural and grade continuity and uncertainty inherent in existing information need to be made so that they themselves may be addressed during the collection of additional data.   The effective commencement of feasibility studies involve the introduction of new accountabilities either as a result of appointment of a project manager, and through needing to be able to quantify: ò     the quality of data being collected for resource evaluation purposes; ò     confidence associated with resource estimates; and ò     the need to develop an audit trail for the project, required to make the resource evaluation decision-making process as transparent as possible.   Quality assurance is a concept to which exploration geologists have frequently had little exposure. Being able to demonstrate the quality of data used in feasibility studies is, however, a crucial component of the overall risk management and reduction.   Development of a transparent audit trail for data assists in demonstrating the quality of data which is frequently perceived to translate directly to confidence inherent in resource estimates.   Establishing procedures for geological data collection and management also provides a more reliable framework for making decisions that impact on project execution, again resulting in improved confidence in resource estimates and associated geoscientific data.   Regular, independent technical audits, in principle similar to audits conducted for the ongoing certification of standards compliant quality assurance systems, are a major, positive factor in effective project management and execution.   Information used in project evaluation, feasibility and development must be based on facts. Facts are effectively observations that are ideally made systematically, recorded in a systematic manner, and by being collected effectively are not subject to change.   Effectively managing the transition from exploration to resource evaluation, feasibility and project development involves recognising the nature of changes in the nature, detail and scope of geoscientific data required at each stage of project development. In doing so it is essential to: ò     recognise when the change occurs (as early as preparation of the initial resource estimate for a project); ò     accept that the change may not be gradual; and, ò     ensure that the project evaluation team is adequately resourced.   These objectives require recognition of the value of previous experience and the need to instill a true team approach amongst both staff and contractors associated with the project. Regular formal and informal communications between staff, contractors and other stakeholders in the project are an essential tool in ensuring personnel are aware of factors affecting their role in the project.

Jan 1, 2004

The offshore Maui gas/condensate field was discovered by Shell BP and Todd on Services Limited in 1969. Subsequent appraisal drilling and negotiations with the Government led to a development agreement, æThe Maui White Paper' being concluded in 1973. Part of this agreement provided for the Government to take a 50 per cent shareholding in the field. The field is comprised of a double domed anticlinal structure containing two gas reservoirs at depths ranging from 2700 - 3000 m. Water depth is 110 m. The development plan called for two standalone steel platforms to be installed sequentially over a period of some years depending on gas demand. The first platform (MPA) was put in place in 1976 but difficulties were experienced with piling and drilling of the 12 (later increased to 14) wells did not start until 1978. First gas was piped ashore late in 1979.

Jan 1, 1994

By Armstrong M

The Clermont Coal Mine will export steaming coal from the Wolfang Basin in Central Queensland, Australia. It is expected to be developed in the mid-1990s.The majority of the reserves lie in the 30 m thick Wolfang Seam. Overburden depth varies from 80 m at the subcrop line to 190 m in the centre of the basin.

Jan 1, 1992

The increased cost of imported oil fuels, coupled with our understandable reluctance to commit ourselves to the use of nuclear energy, has resulted in a renewed reliance on coal as a primary source of energy. New Zealand is fortunate in being fairly well endowed in its coal resources, but their exploitation until now, has been on a relatively small scale. Future exploitation, whether from underground or open cast mines, must be on a very much larger scale. This paper outlines some of the factors which should be considered in planning large open cast mines.

Jan 1, 1976

By P Davidson

For many years, in numerous settings, the need for a language-fair and culture-fair assessment test has been identified as a significant issue for employment and selection for training of remote indigenous community members. Pivotal to the successful implementation and application of such a test is for it to gain the acceptance and trust of the local indigenous communities as a fair assessment and for it to provide organisations with an accurate predictive tool. However, when western tests have been used with indigenous groups, inherent language and cultural bias have had a significant negative impact in terms of community acceptance. These have also affected the accuracy of performance predictability. The Queensland Test was developed to overcome these problems. Originally developed for use in Papua New Guinea, it reduced training failures by 20 per cent. Later refinements were made and it was used with Aboriginal Australians. Since 2002, assessment tests have been used by the Freeport mine in West Papua to support their recruitment, selection and training processes for the local indigenous community, the Seven Suku Tribes. The initial process included the application of standard æwesternÆ assessment tests, which did not provide valid selection predictions, with community members and elders describing these tests as unfair and the organisation being concerned that the results were not accurate. A trial of the Queensland Test was conducted and a high correlation was established between the performance of FreeportÆs current Seven Suku employees as assessed by their managers and their Queensland Test results. Based on the results of this pilot the Queensland Test was successfully implemented as the primary selection tool for potential employees from these local indigenous groups. The testing materials and method gained community trust and support, with tribal elders describing the Queensland Test as a fair and suitable selection tool for their community members. Such results have sparked an interest within the Australian Mining industry, with similar results being reported from a recent trial. The Queensland Test has been implemented at a major site in Queensland and is being investigated for use elsewhere.

Jan 1, 2006

By D J. Alchin

Most of South AfricaÆs high-grade iron ore resources are hosted within a fault-controlled structural basin in rocks of the Palaeoproterozoic Transvaal Supergroup in the Northern Cape Province of South Africa. Iron mineralisation occurs as individual orebodies in fault-bounded basins or as fold-controlled concordant lenses around an unconformity plane above the Kuruman Banded Iron Formation. The Sishen mine near Kathu and the beeshoek mine and Sishen South deposit near Postmasburg lie on the northern and southern border of a major domal structure known as the Maremane dome, respectively. The effects and structural constraints of at least three orogenic compressive episodes and several intermittent extensional episodes on the formation, erosion and preservation of iron mineralisation on the Maremane dome and surrounding environs were investigated. Ventersdorp impactogenal rift basin development at ~2.78 - 2.64 Ga, finalised with the deposition of the volcano-sedimentary Vryburg Formation during the thermal subsidence stage at ~2.64 - 2.6 Ga, and was followed by tectonic quiescence/stability and an extensive marine transgression across the entire Kaapvaal craton. The drowning event led to the formation of a carbonate platform with the deposition of the Schmidtsdrif and Campbellrand subgroups conformably above the Vryburg Formation at ~2.6 - 2.52 Ga. The initiation of distal (to the west of the Kaapvaal craton) off-craton oceanic rifting, causing submarine volcanism and associated hydrothermal activity, led to the deposition of initially manganiferous chert (Wolhaarkop Formation) followed by banded ironstone formations (Manganore Iron/Kuruman Formation) of the Asbestos Hill Subgroup at ~2.52 - 2.46 Ga. Initial passive margin rifting along the N-S oriented western edge of the Kaapvaal craton, initiated at the end of Ghaap Group time (during Koegas Subgroup deposition) at ~2.46 - 2.35 Ga, formed a prominent system of N-S striking, westerly dipping normal faults. Easterly directed crustal compression in post-Ghaap Group time in response to the Kalahari Orogeny (accretion of Rehoboth craton along western edge (Kalahari suture zone) of the Kaapvaal craton at ~2.35 - 2.24 Ma led to the formation of large-scale regional, N-trending F1-folds. Partial to complete inversion of the Koegas passive margin rift system (ie reverse dip-slip reactivation of the N-S striking normal fault system to high-angle reverse faults and dextral strike-slip reactivation of the Ventersdorp rift system developed in the Archaean basement), was followed by uplift, erosion and formation of a regional angular unconformity (Postmasburg unconformity). Uplift was accompanied by deposition of fluvio-glacial sediments of the Makganyene Formation (Lower Postmasburg Group) within an intracratonic peripheral foreland basin setting unconformable above Ghaap Group strata at ~2.35 - 2.24 Ga. Post-orogenic crustal relaxation and rifting caused extensional reactivation of the N-trending Palaeoproterozoic passive margin rift system and NE-trending Neoarchaean Ventersdorp impactogenal rift system, forming a fault-controlled depository for the volcano-sedimentary Upper Postmasburg Group at ~2.24 - 2.1 Ga. Deceleration in rifting was succeeded by thermal subsidence of the Upper Postmasburg Group rift, erosion, formation of a regional angular unconformity and deposition of clastic sediments of the Lower Olifantshoek Supergroup unconformable above Postmasburg Group strata at ~2.1 - 1.93 Ga. Renewed rifting led to the deposition of volcano-sedimentary units of the Upper Olifantshoek Supergroup within a rift system superimposed on the Postmasburg Group rift depository at ~1.93 - 1.83 Ga. Easterly directed crustal compression during the Kheis Orogeny at ~1.83 - 1.73 Ga led to renewed inversion of rift structures of the Postmasburg Group and Olifantshoek Supergroup depository, N-trending F2 folding and thin-skinned thrusting of older rock units eastwards over the cratonic cover, thereby utilising planes of weakness in the strata such as prominent unconformities and lithological contrast boundaries as principal dTcollements. NNW-directed crustal compression in response to Lomanian (Namaqua-Natal) Orogeny at ~1.15 - 1.0 G along the southern margin of the Kaapvaal craton, resulted in minor sinistral strike-slip reactivation of the N-S striking fault system, the formation of extensional NNW-SSE striking fracture/fault zones and the development of ENE-trending F3 folds forming a F2/F3 fold interference pattern. Post-Lomanian tectonic events (eg the Pan-African Orogeny at ~650 - 500 Ma, the Cape Orogeny at ~310 - 240 Ma, and the Gondwana breakup at 205 - 120 Ma), caused only comparatively minor extensional reactivation of the pre-existing fault systems. Iron mineralisation was ultimately preserved from erosion by Kheis Orogeny-related N-trending F2 synclines and Lomanian Orogeny-related ENE-trending F3 synclines, in particular areas of interference between F2 and F3 synclines representing comparatively deep semi-circular trough- like depressions, as well as in half grabens formed adjacent to reactivated westerly dipping N-S normal faults. Support for relating the iron and manganese mineralisation to structurally controlled hydrothermal fluid flow during the Kheis orogenic event has also been found, and ongoing research is aimed at confirming and refining the hydrothermal model for iron ore mineralisation in the Northern Cape.

Jan 1, 2007

Gold has been known and mined in Australia for over 150 years. It occurs and is mined in all States and the Northern Territory. In the past 30 years approximately 8300 t of gold has been mined and gold exports have contributed over $106 billion to the Australian economy. In the first three quarters of the Australian financial year 2006 - 07 (ending 30 June 2007) gold exports were valued at $7.3 billion, which was 13 per cent of the value of all minerals exported and five per cent of AustraliaÆs total goods and services exports over the period. Clearly gold has been and remains a very important component of the Australian economy.

Jan 1, 2007

By G Le Juge, K Waldock

The current suite of bulk mining explosives has been available to the industry for over 20 years. The flexibility and performance of ammonium nitrate based emulsion blend explosives were accepted by the mining industry in the early 1980s. These water resistant explosives rapidly displaced the water gels and slurries developed during the previous two decades. However, since the 1980s there has been no equivalent step change to the basic formulation or application of bulk explosives, although there has been a continuous process of refinement with respect to stability, handling characteristics and most significantly, cost. In the 1980s explosives supply contracts were awarded based on technical evaluations, usually accompanied by field trials. Technical personnel from both mining companies and explosives suppliers dominated the negotiations and there was a strong focus on explosive energy and blasting requirements. Today, explosives from alternative suppliers are difficult to differentiate on the basis of energy so the focus has shifted to aspects of service and price û bulk mining explosives are now largely treated as a commodity and the negotiations are dominated by commercial personnel. Commercial pressures from large mining companies have seen a substantial reduction in the real price of explosives. However, this has come at a cost. In order to reduce manufacturing costs, emulsion formulations have changed. In general they are not only cheaper, but also less energetic. Powder factors have had to increase to achieve the same blasting results, especially in hard ground. It is debatable whether the mining companies have achieved all of the economies they were seeking. This paper discusses these issues and argues that the mining industry would benefit from taking a more technically driven approach to meeting their blasting requirements. Recent trends towards more open contracts between the mining companies and their suppliers can be extended to explosives. To achieve this, mining companies will need to acquire sufficient technical knowledge to take a more pro-active approach to specify the characteristics of the explosives required to maximise the economic performance of their operations.

Jan 1, 2004

Mineral Processing Education in China

Sep 13, 2010

Underground mine planning is characterised by a series of designs, starting with prefeasibility and culminating in operational. Information on the mineralisation and geotechnical conditions is available in increasing levels of detail, as development occurs. In the recently completed AMIRA Planning and Rapid Integrated Mine Optimisation (PRIMO) project, a methodology for producing good strategic and then tactical designs using new optimisation tools, was developed. At the strategic level, fundamental decisions must be made such as those relating to cut-off grade, bench heights, mining methods, access and haulage systems, properties of the mill, etc. The inputs are the block and financial models, geotechnical data, infrastructure and production costs, etc. Stope definition for strategic designs includes bench RLs (relative levels), orebody envelopes, and design and placement of amalgamated or simplified stopes. If multiple mining methods are under consideration, then stopes need to be associated with these. Access design must take into account decisions such as declines versus shafts, a template for level layouts and the topology of the access network. Some of the geotechnical and physical constraints are relaxed for strategic design stages. Strategic scheduling is high level, from a month to a year at a time. In the PRIMO project, software tools have been developed enabling the mine planner to rapidly produce a large number of such strategic designs. After the designs have been evaluated, the highest value designs are chosen and a small number of these can then be further refined at a tactical level. For these designs, the first step is determination of all stopes meeting physical and geotechnical requirements and constraints, allowing for complex stope shapes. Next, detailed layout of the mine access network is obtained, satisfying all operational and geotechnical constraints. Finally, more detailed scheduling is performed, over shorter time periods. The Melbourne University group has focused on optimal access design. In particular, the access network is optimised for minimum cost, taking into account the cost of haulage and development over the lifetime of the mine. Costs vary over the different parts of the network depending on the quantity of haulage and so a weighted network optimisation problem has to be solved. We have developed two software tools for this task, decline optimisation tool (DOT) and planar underground network optimiser (PUNO). DOT produces an optimal network of declines and crosscuts connecting access points on the levels to a portal or break-out point from existing infrastructure. PUNO designs the level layout, including footwall and hanging wall drives, development drives and connections to vent raises. A survey will be given of the capabilities of DOT and PUNO when used on some recent case studies. Our current goals include incorporating some aspects of ventilation design and modelling the development costs when additional ground support is required. This is an abstract only. A full paper was not prepared for this abstract.

Dec 6, 2010

Pressure Oxidation of Sulfide Gold-Bearing Concentrates with Double Refractoriness

Sep 13, 2010

By T Higuchi, T Yamamoto, K Takehara

Iron ore fines are used as raw materials for sintered ore for blast furnaces in the world. Since the production and quality of sintered ore have a great influence on the stable operation of a blast furnace, many technologies were developed for controlling the heat profile in the sintering machine, which largely affect the sintered ore properties. In particular, the influence of oxygen in the suction gas, which plays an important role in combustion, was investigated over the years. It is known that increasing the oxygen ratio by about 30 per cent not only significantly improves the combustion rate, but it also increases the strength and yield of sintered ore. However, the details of the mechanism for improving these qualities are unknown. In this study, we investigated the influence of oxygen enrichment at higher ratios (O2: 21–40 per cent) and tried to understand the sintering behaviour enhanced by oxygen. The effect of oxygen enrichment on sintered ore quality and the heat profile were evaluated by sintering tests using a quartz glass pot. From the results, sintered ore yield had a maximum value for O2 = 30 per cent, but strength was increased for O2 = 40 per cent. From heat pattern analysis, it is clear that the high temperature holding time also reached a maximum at O2 = 30 per cent. Furthermore, we found that with increased oxygen ratio, the combustion speed (flame front speed) was increased, but the area of combustion was enlarged. It is considered that there could be a maximum oxygen ratio value for the yield from the balance of these positive and negative effects on high temperature holding time. To clarify the reason for strength improvement, thermodynamic calculations were performed and it was found that melting behaviour could be improved by changing the oxygen ratio.

Sep 18, 2023

By J Jeffrey, G W. Wilson, L Gilbert, C

Prior to the commencement of mining, the acid rock drainage (ARD) potential of the waste rock to be produced by an open cut mining operation is assessed by a variety of techniques carried out on drill-hole samples. These include, among others, acid base accounting (ABA), net acid generation (NAG) testing, and kinetic testing. Based on the results obtained, a strategy for the identification, separation and selective placement of waste rock having different potentials to form ARD is developed. During the course of mining, the waste rock classification scheme will be re-assessed periodically to confirm that it is appropriate. This re-evaluation may result in a change in classification scheme, and waste rock dump samples may be obtained for ARD assay purposes to confirm the appropriateness of the revised scheme. The paper describes the evolution over time of the scheme used to classify waste rock at a major open pit gold operation in New South Wales, Australia, including the development of a hydrological model. To confirm the appropriateness of the revised scheme, ARD assay testing was carried out on drill-hole samples collected from dumps having different ARD potential designations, including Non-Acid Forming (NAF), Potentially Acid Forming (PAF), and Low Grade Ore stockpiles. The results of the ARD assay testing and water quality monitoring confirmed the appropriateness of the ARD potential designations and the revised classification scheme, which has been adopted.

Jan 1, 2003

By D Craw, N Newman

Previously published stream quality data and AMD (acid mine drainage) analyses have been collated into a database (DAME û Database for Assessment of Mine Environments) and additional samples including NMD (neutral mine drainage) have been collected from coal mine drainages on the West Coast. Variations in the chemistry of mine drainage samples can be related to four factors: 1.       regional geology (Brunner Coal Measures or Paparoa Coal Measures) 2.       mine type (open cast or underground) 3.       hydrogeology 4.       local geology   In general mines hosted in Paparoa Coal Measures produce NMD whereas mines hosted in Brunner Coal Measures produce AMD with highly variable chemistry. Differences in coal mine drainage chemistry between mines hosted in Brunner and Paparoa Coal Measure sequences can be measured with acid-base accounting geochemistry. Correlation of ANC (acid neutralising capacity) and MPA (maximum potential acidity) analysis of rocks with mine drainage samples is substantially better than correlation of NAG (net acid generation) analysis with mine drainage chemistry.   It is likely that NAG analysis over estimates acid generation potential of some samples due to release of organic acids that are not released under environmental conditions. In general, differences in mine drainage chemistry between Brunner and Paparoa hosted mines are attributed to the effect depositional environment and diagenesis on coal measure composition. Exceptions to generalisations relating mine drainage to Paparoa or Brunner host rocks are likely where local geological conditions cause increased deposition of pyrite in Paparoa rocks and additional analyses are required to confirm interpretations.   Based on the interpretation of these results a mine drainage chemistry hazard model has been constructed. The hazard model predicts likely variations in mine drainage chemistry based on the four factors listed above. The hazard model has implications for mine related water quality risks. For example, ecotoxicity, human health affects and selection of remediation techniques are all sensitive to mine drainage chemistry.

Jan 1, 2006

Hydraulic mining shovels can be successively used at open-pit mining operation in severe climatic zone with air temperature interval from -700C to +450C typical for some northern region of the world particularly of Russia, Canada and Sweden, if they would be equipped by special preheating facilities for their diesel engine, water, hydraulic oil and lubrication systems. All shovels manufactured by the Komatsu Mining Germany GmbH for operation at ambient air temperatures down to -50¦C have cast and forged structural design elements, bolted connections made of special steel grades, electric cables with special insulation, flexible high-pressure hoses manufactured by ICE-Champion with connectors made of special steel grades.Generally at the temperatures below -25¦C the ordinary machine has to be stopped, the attachment should be placed in the parking position, the generator should be switched on, or the external electrical power supply connected, for the preheating equipment. For rapid start-up in winter after a long shutdown of a hydraulic shovel, there is a procedure for preheating of the main systems. It is applied for the following systems: engine cooling system, engine oil, hydraulic oil, pumps and drive motors of the propel gears, electric cabinets, machinery house, especially near the ventilation inlets and outlets.Start-up of the main drive engine is permitted at a hydraulic oil temperature of -20¦C, when it has a viscosity of 1000 cSt. In this case the rotation speed of the diesel engine crankshaft is lower by two times than the nominal value and this is the most favourable condition of start-up of the engine and hydraulic pumps and motors, which work with half of their rated rotation speed until the hydraulic oil reaches a viscosity from 100 to 10 cSt. After that the hydraulic system and the entire shovel begin to operate under normal conditions.

Dec 6, 2010

By C Mark

Coal bursts involve the sudden, violent ejection of coal or rock into the mine workings. They are a particular hazard because they typically occur without warning. During the past two years, three US coal miners were killed in two coal bursts, following a six-year period during which there were zero burst fatalities.This paper puts the US experience in the context of worldwide research into coal bursts. It focuses on two major longwall mining coalfields that have struggled with bursts for decades. The Utah experience displays many of the ‘classic’ burst characteristics, including deep cover, strong roof and floor rock, and a direct association between bursts and mining activity. In Colorado, the longwalls of the North Fork Valley (NFV) also work at great depth, but their roof and floor strengths are moderate, and most bursts have occurred during entry development or in headgates, bleeders or other outbye locations. The NFV bursts also are more likely to be associated with geologic structures and large magnitude seismic events. The paper closes with a brief discussion of how US longwalls have managed the burst risk.CITATION:Mark, C, 2014. Coal bursts in the deep longwall mines of the United States, in Proceedings AusRock 2014: Third Australasian Ground Control in Mining Conference , pp 33–40 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 5, 2014

By N J. Beukes, J Gutzmer, C Reinke, M Bau

In this study the light sparse phase search (SPL_Lt) mode on the Mineral Liberation Analyser (MLA) was successfully used to identify and quantify the abundance of rare earth element (REE) phosphates in Precambrian iron formations. Monazite (light REE phosphate) and xenotime (Y and heavy REE phosphate) are identified and data from the MLA combined with the mineral chemistry of the two minerals are used to calculate and model the expected REE concentration and distribution in these two REE phosphates. The REE phosphates account for up to 31 per cent of the REEs in the banded iron formations (BIFs) and excellent correspondence is observed between the modelled REE patterns and the whole rock geochemical data available for the same samples. Except for quantifying the mineral weights, the sparse phase search also allows for the localisation of REE phosphate grains and the observation of their association with other minerals using backscatter electron (BSE) imaging. These observations are used to conclude that the REE phosphates were most likely of diagenetic origin, with REEs and phosphate remobilised from primary chemical precipitates. It is demonstrated that automated mineralogical techniques can be used to qualitatively and quantitatively describe the influence of a rockÆs trace mineralogy on its geochemistry.

Jan 1, 2008

By D R. Swinbourne, T Lehner

Study of the distribution of minor elements between copper matte andfayalite slag is important in determining appropriate methods tomaximise the recovery of valuable metals and the rejection of harmfulelements. Boliden Mineral AB operate a large copper smelter in northern Sweden, where they had noted that the loss of silver to the slag in the settling furnace appeared to be a direct function of the tin content of the slag. This work was aimed at determining whether or not this was a cause-and-effect relationship. Copper matte containing approximately 50 wt per cent copper and small amounts of silver and tin was equilibrated with silica-saturated fayalite slag at 1250¦C, then quenched. The matte and slag were then analysed for their silver and tin contents. It was found that there was no relationship between the silver distribution and the tin distribution. The silver matte/slag distribution ratio had a value of 120 ¦ 40 while that for tin was 2.8 ¦ 0.3. It is suggested that the most likely cause of the relationship observed at the Boliden smelter was matte entrainment in the slag.

Jan 1, 1999

By J Vann

Mineral Resource and Ore Reserve estimation is a challenging and demanding field, requiring application of professional knowledge, skill and experience of the highest order. If the many potential pitfalls are to be avoided, however, there are two other requirements which are of equal, if not greater, importance:good communication, and common sense. Estimation of Mineral Resources and particularly of Ore Reserves is almost always a team effort, involving a number of disciplines. Good teamwork requires good communication, both between team members and between the team and other parties having an interest in the process. Breakdown in these lines of communication can have far reaching effects on the project under consideration. The need to use common sense during a Resource or Reserve estimation exercise would seem to be self-evident. It is surprising, however, how often rigid adherence to procedures and methods prevails at the expense of clear thinking, usually with adverse and sometimes fatal effects on the project under consideration. This has become increasingly true as computerised methods have assumed a central role in Resource/Reserve estimation. The critical question that estimators should ask themselves at all stages of the process is: æIs what is being done sensible given the data available, what is known of this deposit and the purpose of the exercise?Æ

Jan 1, 1999

In a modern economy there is a compelling case why governments should not own property rights to mineral deposits. Assuming they do, however, governments will use these constitutional rights to raise revenue. They have two basic instruments to achieve this; a royalty charge on price or a rent tax on income/profits. On the one hand, a royalty charge creates a 'deadweight loss' to society by increasing cut-off grades and decreasing the life-of-mine. They are also regressive. However, they are easy to administer. On the other hand, a rent tax avoids the problem of 'deadweight loss'; it does not impact on the life-of-mine because the tax structure is neutral. But, they are difficult to administer correctly, particularly in the determination of rents and the definition of mining per se. If rents are incorrectly determined capital markets are distorted. And, if mining activities are incorrectly defined, downstream activities could be adversely affected.

Jun 1, 2010