Contemporary Issues in Mining Leading Practice in Australia

Provides case studies, commentary and analysis on the mining sector from international experts in business, across the four key focus areas of strategic, operational, financial and disclosure perspectives on mining. Invaluable to executives, managers and

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Also by Nigel Finch BEST PRACTICES IN MANAGEMENT ACCOUNTING (with G. N. Gregoriou) FUNDAMENTALS OF CORPORATE FINANCE (with Jonathan Berk, Guy Ford, Peter DeMarzo and Jarrad Harford)

Contemporary Issues in Mining Leading Practice in Australia Edited by

Nigel Finch

The University of Sydney, Australia

Selection and editorial content © Nigel Finch 2012 Individual chapters © the contributors 2012 Softcover reprint of the hardcover 1st edition 2012 978-1-137-02579-1

All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No portion of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6–10 Kirby Street, London EC1N 8TS. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The authors have asserted their rights to be identified as the authors of this work in accordance with the Copyright, Designs and Patents Act 1988. First published 2012 by PALGRAVE MACMILLAN Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS. Palgrave Macmillan in the US is a division of St Martin’s Press LLC, 175 Fifth Avenue, New York, NY 10010. Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. Palgrave® and Macmillan® are registered trademarks in the United States, the United Kingdom, Europe and other countries. ISBN 978-1-349-66894-6 DOI 10.1057/9781137025807

ISBN 978-1-137-02580-7 (eBook)

This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. Logging, pulping and manufacturing processes are expected to conform to the environmental regulations of the country of origin. A catalogue record for this book is available from the British Library. A catalog record for this book is available from the Library of Congress. 10 9 8 7 6 5 4 3 2 1 21 20 19 18 17 16 15 14 13 12

Contents List of Tables

vii

List of Figures

viii

Acknowledgements

ix

Notes on Contributors

x

Overview

1

Part I Strategic Perspectives 1

2

An Overview of the Business History of the International Mining Industry Simon Mollan and David Kelsey The Role of Mining in the Australian Economy Nigel Garrow and Tom Valentine

9 27

Part II Operational Perspectives 3

Transportation Issues of Australian Coal and Iron Ore Elizabeth Barber

4

MRO Procurement: Best Practices Framework for Capital Equipment Ananda S. Jeeva

47

69

Part III Financial Perspectives 5

Practical Problems in Mining Valuations Wayne Lonergan and Hung Chu

6

The Tax Accounting Interface in the Mining Industry in the Context of IFRS Les Nethercott

7

Carbon Tax: Econom