MINING ENGINEERS ASSOCIATION OF INDIA

GoLDEN JUBILEE SEMINAR ( zw\' . /

PRESENT STATUS OF MINING AND FUTURE PROSPECTS

TIIEME

..TO REVIEW T}M LATEST TRENDS IN EXPLORATION MINERALS ANDREVISE THE RESERVE POSITIO\T'

BY

IAN WOLLFF

Introduction.The introduction to this Mining Engineers Association of India seminar refers to acommon perception that easy to find high grade deposits are being depleted, and thatadvances in technology provide the means to finding and developing the next generationof deposits. This same theme has been expressed for many years, and at each stage of ourindustrial world the professionals working in these fields have met the challengesuccessfully. It is now the tirne for some spectacular growth in Asia, later it will besomewhere else, for commercial prosperity and the increase in quality of life has come todepend on the development of rnineral resoruces.

Our Starting Point.All forms of progress are based upon the work of those who went before us. I place greatemphases on a fundamental understanding of our specialized areas of science. Thegeologist who can record and understand an outcrop, the miner who understands minelife sequencing, the mineral processor who understands sizing and the economist whounderstands cash flow are constantly working up from sound principles derived fromthose who went before us.

o How well we do in the future for developing resources thus starts with oureducation programs for earth sciences.

Industry Advances.In my 40 years of being a geologist I have seen the most wonderful advances in ourindustry. From the practical side of ore genesis, geotechnics, survey, imagery, drilling,geophysics, statistics, modeling, assay techniques, and so on. From the procedural sidewe have seen the development of national and international standards to define resources,reserves, assay techniques, and to establish safety practices From the evaluation side we

have seen the development of financial models, sensitivity analysis, and the profiling ofkey personnel.

There is a greater interconnectivity within the industry, as resources are converted intoreserves through an economic appraisal to the final sold product. Thus similar advancesin mining, processing, transport and finance aspects all play a roll in the determination ofreserves.

There have also been advances in our appreciation of the environment, safety, social andpolitical factors that places further sets of criteria on our industry.

o How well we do in the future will depend on how research is undertaken to thewider range of disciplines that can be applied or adapted to the development ofreserves and the mining industry.

Other Influences.There has come an increased public awareness from people who want to impose theirinfluence upon the interlinked reserve, mining, transport and process industies.

National government policy is a changing mixture of free and public enterprise, withlocal government and procedures further influencing the industries approach to reserveand mining development programs. Communities and non government agencies havemore specific project by project influences. These influences tlpically relate to the sizeand place of the exploration target, the budget and schedule for evaluation, commitmentto operational aspects, and finally to royalties and tax.

Finance and corporate industry places further influences of ethics and accountabilityrequiring stringent procedural documentation and justification at all stages of reservedevelopment.

o How well we do in the future will depend on our professional affiliations andindividual companies in lobbying and developing a public image.

Fluctuations in our Industry.The exploration, mining and associated indushies have experienced a history of boomand bust cyclic development. This is a part a reflection of the success of our industry -that we can find enough resources to fill demand. This has made it hard to get acontinuous flow of graduates and the development of research.

ln many products, world production, and prices are strongly influenced by a few bigplayers in each field. Once again this is in part a reflection of the success of our industryto find & develop such resources. However word growth continues, and the very natureof resources being consumed means that more need to be found & developed.

The production of mining products will be influenced by recycling, alternative materials,efficiencies, new products and changes of life styles.

o How well we do in the future will depend on how successful we are at finding andmanaging new resources, and new markets.