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A n n u a l R e p o r t

2001-02

A u s t r a l i a n R e s o u r c e s R e s e a r c h C e n t r e

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The new Australian Resources Research Centre(ARRC) has brought together leadingresearchers from CSIRO and Curtin Universityof Technology, with the vision of creating apetroleum and minerals centre of expertise forthe South-East Asian region.

With over 200 scientific and technical staff, theconcentration of capability at ARRC provides afocus for enhanced collaboration withCooperative Research Centres, universities, resource companies and suppliers todeliver world-class research solutions, services, technologies and highly trained peopleto the resources industries in Australia and around the world.

Located in Western Australia’s Technology Park, ARRC is a major initiative of theWestern Australian Government, CSIRO and Curtin University which has beenestablished in conjunction and consultation with the petroleum and mining industries.Its location in Western Australia’s Technology Park is highly appropriate, given that theState produces two-thirds of Australia’s metalliferous products and about half of itspetroleum.

With access to a vast global research network, ARRC represents a new environment inwhich scientists interact, exchange information and explore new ideas in partnershipwith industry to ensure the ongoing sustainability of our resources industries, ourenvironment and our way of life. In working to achieve a number of shared objectives,CSIRO and Curtin University have already appointed three joint research chairs in theareas of geophysics, isotope geoscience and drilling engineering. Through CurtinUniversity, ARRC is producing world-class graduates and new ideas for the future of theindustry.

Mineral exploration and mining research at ARRC is concentrating on technologies thatcontribute to the discovery and extraction of new world-class, high quality mineraldeposits at the lowest possible cost, with emphasis on safety and the environment.

Research for the oil and gas industry is focusing not only on improving oil explorationperformance but also on preparing Australia and the region for the transition to newenergy sources in the future. As domestic production of liquid transport fuels declines,ARRC researchers are developing technologies that will enable us to utilise Australia’srich gas reserves and convert gas to liquid fuels. A longer-term objective is to developthe new technologies needed to position Australia to enter the hydrogen age in around25 years time.

Of great importance at ARRC will be research strategies designed to minimise theresource industry’s impact on our marine and land environments and limit greenhousegas emissions.

ARRC – setting the stage for a new way of working together in the 21st century

ARRC overview

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ContentsForeword 4

Executive summary 5

ARRC commissioning 5

Research activities in support of the Australian minerals industry 6-9• Research focus 6-7• CSIRO Exploration and Mining 8• CRC LEME 8• pmd*CRC 9• Research highlights 9

Research activities in support of the Australian petroleum industry 10-15• Research focus 10-11• CSIRO Petroleum 12• Research highlights 12-13• Curtin University of Technology 14-15• Research highlights 15

IVEC 16

State funded ARRC start-up projects 17-20• “Spectral mine sight” 17• Automated Horadiam mining equipment 18• Seismic applications for Western Australian conditions 19• Simulation systems for predictive exploration and resource extraction 20

Finance 21

Research support and human resources 21

Awards, achievements and community sponsorships 22-23

Committees: 24-25• ARRC Steering Committee 24• ARRC Construction Committee 24• ARRC Advisory Committee 25• ARRC Directions Committee 25

Industry clients and partners 26

ARRC contacts 27

CSIRO:• Exploration and Mining• Petroleum

Curtin University of Technology:• Department of Exploration Geophysics and the Centre of

Excellence for Exploration & Production Geophysics• State Centre of Excellence in Petroleum Geology1

• Department of Petroleum Engineering and the WesternAustralian Petroleum Research Centre (Curtin node)

IVEC (Interactive Virtual Environments Centre)

Cooperative Research Centres for:• Landscape Environments and Mineral Exploration (LEME)• Predictive Mineral Discovery (pmd)• Australian Petroleum

ARRC occupants

1The activities of this Centre have now been merged into the Department of Petroleum Engineering.

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ForewordWestern Australia’s resource industries make a significant contribution to the economies ofboth the State and the nation. During 2001, the value of production from the State’sresources industry was $26.8 billion, and exports from this sector made up 70% of the totalmerchandising exports from Western Australia.

As the producer of two-thirds of Australia’s metalliferous products and about half of itspetroleum, the decision to establish the Australian Resources Research Centre (ARRC) inWestern Australia was an easy one. It places Western Australia as the national and regionalcentre for minerals and energy research. Research at ARRC aims to improve thecompetitiveness of established industries and facilitate the development of new ones.

ARRC is a major initiative of the Western Australian Government, CSIRO and CurtinUniversity of Technology. The State Government’s funding contribution of $35 millionrepresents the largest single allocation of State funding for technology infrastructure evermade in Western Australia.

Successful modern economies require well-developed and internationally competitivetechnology infrastructure to contribute to sustainable industry development. Anothersignificant factor in generating successful new knowledge-based industries is the level ofintegration between such infrastructure and the various research and academic institutions.The establishment of ARRC at Technology Park, adjacent to Curtin University, provides acornerstone in the State’s development of strategic technology infrastructure of a globalstandard.

The State’s funding contribution for ARRC start-up projects has already seen significantprogress made in the areas of spectral mine imaging, automated mining techniques,advanced seismic technologies, and computer simulation systems for predictive mineral andpetroleum exploration.

I would like to congratulate all staff at ARRC for their contribution to a progressive andsuccessful first year of operations. The continuing results of your endeavours will strengthenWestern Australia’s and the nation’s ability to successfully compete in the global economy.

The Hon. Clive Brown, MLA

Minister for State Development

The Hon. CliveBrown, MLA

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Executive summary

Dr Adrian Williams (Chair)Chief, CSIRO Petroleum (until July 02)

Professor Neil PhillipsChief, CSIRO Exploration & Mining

Professor Paul RossiterDeputy Vice Chancellor (R&D),Curtin University of Technology

ARRC is a purpose built centre forpetroleum, minerals and miningresearch and development. Establishedat a cost of $37 million, the facility is ajoint venture between the WesternAustralian Government, CSIRO andCurtin University of Technology.

The Centre was commissioned in August2001 and officially opened by the Hon.Dr Geoff Gallop MLA, Premier ofWestern Australia, on 14 November,2001.

Construction began in October 1998and was completed in July 2001. Thedesign philosophy of the Centre was toportray a practical research andcommercially orientated image to attractvisitors and stakeholders to a facility inwhich they feel comfortable and whereARRC residents can project a positive,progressive face dedicated to serving theindustry and community in general.

The building itself is 18,239sqm,housing 210 offices, 66 laboratories and

process bays, plus meeting rooms,teaching facilities, an auditorium, libraryand canteen. The builder, Multiplex, wasannounced the overall winner of the2002 Master Builders Excellence inConstruction Awards for construction ofARRC. The architects, Design Inc Perth,received commendations in two sectionsin the Royal Australian Institute ofArchitects awards.

Some 230 staff are now resident withinthe ARRC building.

ARRC commissioning

The official opening of ARRC on 14 November 2001 by the Hon.Dr Geoff Gallop MLA, Premier of Western Australia, was amomentous occasion not only for CSIRO and Curtin University ofTechnology, but for Australia’s energy and minerals industries, theresearch community and the State of Western Australia.

As founding members of ARRC, CSIRO and Curtin University arepleased to embrace the vision of making Perth and WesternAustralia a world centre for energy and minerals research. It is animportant part of the agenda for Australia’s success in theknowledge age, for our ability to find new energy and mineralresources and for the management of our fragile environment.

This new way of working together is designed to attract and nurturethe very best scientists with a common purpose, providing themwith world-class facilities for their journey of investigation anddiscovery. ARRC is also designed to be an integral part of theenergy and minerals industries that are so critical to Australia,bringing the focus of researchers into the commercial environmentand creating a source of new ideas and challenges.

As home to two CSIRO research divisions, five departments andCentres of Excellence from Curtin University, Cooperative ResearchCentres (CRCs) and the new Interactive Virtual Environments Centre(IVEC), an impressive range of capabilities can be accessed atARRC and the opportunities for collaborative research are endless.The groups operating within ARRC are now embarking on an ever-increasing number of joint projects.

While the petroleum and minerals industries have enjoyed thegreat successes of past decades, the future looks to be muchmore challenging. For example, Australia’s oil production isforecast to fall from 85 per cent of needs to about 50 per centby the end of this decade, unless there are major newdiscoveries. In addition, the petroleum and minerals industriesmust adapt to meet greenhouse gas responsibilities. However,we see major opportunities through our rich endowment ofnatural gas and minerals such as nickel and titanium. Scienceand technology will provide us with the capability to meet thesechallenges in the best possible way.

In this, the first ARRC Annual Report, we provide a snapshot ofthe Centre’s current and future research activities directed at thepetroleum and minerals industries, describe the capabilities andexpertise of the groups who now reside here and give a summaryof the significant effort undertaken on four major researchprojects funded by the Western Australian Government as part ofthe agreement to establish ARRC.

Australia’s success in the knowledge age, our ability to find newenergy and mineral resources and the management of our fragileenvironment are inextricably entwined. They provide thenational imperative for ARRC and for the vision of Perth as acrucial international centre for energy and minerals research.

ARRC Directions Committee 2001/02

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Research activities insupport of the Australianminerals industry

Over the next decade, the Australian

minerals industry will continue to

experience increasing pressure to

maintain its international competitiveness

in response to:

• Low commodity prices (at least in

real terms).

• The discovery of world-class ore

bodies overseas.

• The diminution of many of Australia’s

more easily accessible deposits

forcing exploration and mining

activities into deeper, more difficult

environments.

• The emergence of major mining

economies in the Asia Pacific Region.

In response to these pressures, the

industry will need to continually increase

the efficiency of existing operations and

develop new technologies if it is to

maintain its current position as a major

player on the international minerals

exploration and mining scene. Research

conducted at ARRC in support of industry

clients is aimed at addressing the

following key issues.

Understanding the Processes Leading tothe Formation of World-Class Ore Bodies

A comprehensive knowledge of the

geological properties that characterise

world-class ore deposits, and the

provinces that host them, is a crucial

prerequisite to any successful

exploration program. Such information

is vital to the whole exploration

program from area selection, through

target search and identification to

deposit delineation.

World-class ore deposits have the

ability to significantly influence

company profitability and a nation’s

economic performance. But what are

the unique combination of geological

events that led to the formation of

deposits such as Olympic Dam, Argyle

and Escondida and why are these

deposits so large?

Understanding and identifying the

geological, geophysical and

geochemical signatures associated with

these world-class deposits can provide

Australian mining companies with a

critical competitive advantage in their

exploration programs both here and

abroad. This advantage manifests itself

in reducing the time to make new

discoveries, increasing the probability

of discovery and finding deposits of

outstanding size and grade.

Much of the research undertaken in

this area is conducted through the

Predictive Mineral Discovery CRC

(pmd*CRC). See details under the

pmd*CRC section of this report.

Exploration in Regolith DominatedTerrains

Much of Australia has a long, complex

landscape history. The presence of ore

deposits is often masked by extensive

areas of thick soil, deep weathering and

cover of continental and marine

sediments and transported overburden

– collectively referred to as the regolith.

Increasingly Australian mining

companies are being forced to explore

for ore deposits concealed beneath a

landscape that has been subjected to a

wide range of climatic conditions. The

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reporting has gained increasedacceptance within the industry overrecent years.

In response to this heightenedcommunity awareness, ARRCresearchers are looking at issues suchas mine site emissions (gas, water,dust, pollutants and noise), drylandsalinity, provision of water, wasteminimisation and disposal, structuraldamage (blasting and subsidence) andmine site rehabilitation and siteabandonment standards.

ARRC’s geophysics capability is

significant, given the co-location of

geophysicists from CSIRO and Curtin

University. Geophysics research carried

out for the exploration and mining

industry at ARRC is also linked with

environmental and petroleum

geophysics research.

Mining Processes and Equipment

The processes of excavating, loading

and hauling rock materials within and

from a mine, and the equipment used

to perform these tasks, accounts for a

major share of mine production costs.

Improvements in the handling and

haulage of fragmented materials are

necessary, since current operations

(particularly in underground

environments) are complex and include

significant re-handling. To this end, the

development of productive,

autonomous or semi-autonomous

equipment is a high priority for the

industry and a focus of new research

projects at ARRC in collaboration with

researchers at the Queensland Centre

for Advanced Technologies (QCAT).

Finally, alternative extraction methods

are a long-term goal with current efforts

focusing on safe, low cost, remote

controlled mining methods (Remote

Ore Extraction Systems). Automated

Horadiam mining is the first of these

methods being addressed.

The Environment

Increasing community concern over the

social and environmental impacts of

mining have forced the industry to

accept that it must play a proactive role

in ensuring the sustainability of the

community and physical environment

in which it operates. Triple bottom line

resulting regolith has complex and

overprinted geochemical and

mineralogical characteristics that are

not generally amenable to

interpretation using traditional

geophysical and geochemical

techniques. Understanding the

behaviour of elements under these

changing weathering conditions is a

problem of direct relevance to the

discovery of buried ore deposits, and a

major challenge facing the Australian

mining industry.

Much of the research undertaken in

this area is conducted through the

Cooperative Research Centre for

Landscape Environments and Mineral

Exploration (CRC LEME). See details

under the CRC LEME section of this

report.

Geophysical and GeochemicalTechnologies

Over the next ten years an array of new

exploration technologies that may change

exploration practices and the basis of

competition will become available. The

most important will be those that

contribute to regional and tenement scale

exploration based on a three-dimensional

view of the structure of the crust and the

upper mantle, and of the processes at

play in these regions. Of these, research

at ARRC will include interactive and

integrated three-dimensional forward and

inversion modelling and hyperspectral

imaging spectroscopy from both aircraft

and satellites to identify the mineralogy of

the ground surface directly, together with

its detailed chemistry.

Other advances such as data

manipulation, modelling and visualisation

procedures will facilitate the exploration

and interpretation process.

With over 250 scientific, technical andsupport staff, CSIRO Exploration andMining is Australia’s largest supplier ofstrategic R&D to the Australian miningindustry. The Division has a majorpresence in Brisbane (QueenslandCentre for Advanced Technologies),Sydney and Perth (ARRC) and a smaller,but expanding, presence in Melbourne.

The Division’s research activities spanthe full spectrum of the exploration andmining process from explorationconcepts, exploration technologies,deposit delineation through to coal andmetalliferous mining. Occupationalhealth and safety and minimising theenvironmental impacts of mining arealso key research themes.

CSIRO Exploration and Mining hasidentified three core science areaswhich underpin all of its researchactivities:

• Earth dynamics – the study ofprocesses that operate from deep inthe Earth’s mantle through tosurface interactions with thehydrosphere and atmosphere.

• Geo-Infomatics – understandingprocesses from whole-of-Earth downto the nanometer scale whichrequires the gathering, integration,visualisation and assessment of vastamounts of data.

• Mechatronics – the development oftheory and practice for intelligentmachine systems.

A current focus for the Division’sresearchers at ARRC and aroundAustralia is on ‘seeing’ into the topkilometre of the Earth’s crust to aiddiscovery of major new depositsconcealed below the surface. The “GlassEarth” portfolio of projects will developnew technologies to recognise ore-bearing systems and new ways ofintegrating and visualising explorationdata to produce exploration models forprospective areas. It also providesvaluable scientific information foragriculture and land use programs.

In parallel with Glass Earth, the Divisionis developing the science andtechnology needed for safe, economicand sustainable access to new andexisting mineral resources. A majorthrust is the automation of miningsystems to optimise efficiency, safetyand economic success.

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CSIRO Exploration and Mining

CRC LEME

The Cooperative Research Centre forLandscape Environments and MineralExploration (CRC LEME) is anunincorporated joint venture betweenCSIRO, Curtin University of Technology,Australian National University,University of Adelaide, University ofCanberra, Primary Industries andResources South Australia, New SouthWales Department of Mineral Resourcesand Geoscience Australia. The Centre isdedicated to developing breakthroughsin mineral exploration andenvironmental management through

knowledge of Australia’s regolith – thelayer at the Earth’s surface that is theresult of weathering, erosion anddeposition. Over time, such physicalactions distort the landscape, alter theenvironment and disguise the existenceof valuable ore bodies. By generatinggreater knowledge of such processes,the minerals industry is better able todevelop effective exploration tools fordetecting world-class ore bodies andland use management groups to addresskey environmental issues such asdryland salinity.

Cost-effectiveExploration for Nickel

Working with Black SwanNickel, researchers fromCSIRO have developed anew understanding and

knowledge of the eruptive processesresponsible for the formation of volcanicsequences and associated nickel depositsin Western Australia’s Black Swan area.

The project has involved petrographic,mineralogical and geochemical studies onsurface and sub-surface samples, allowingthe team to gain an insight into lavaemplacement mechanisms and develop avolcanological model for the evolution ofthe Black Swan sequence.

Using the model and their improvedunderstanding, researchers were able toprovide specific recommendationsregarding the continued prospectivity ofthe Black Swan area and the possiblelocation of further mineralisation. Theresearch results provide some crucialpieces of the nickel jigsaw which addconsiderable knowledge to the formationof nickel deposits and the development ofenhanced industry-wide more cost-effective exploration strategies.

Regolith Geology of the Yilgarn Craton

The Earth’s surface layer (known asregolith) contains important chemicalsignals about mineralisation which canlead to the discovery of concealed oredeposits. However, because the regolithand landscape constantly develop andevolve, the application of certainexploration techniques can prove difficult.Effective geochemical exploration canonly be achieved by understanding howthe regolith evolves and by determiningwhich sample and data-interpretationtechniques are appropriate to the targetbeing sought. A research team led byCSIRO has been successful inestablishing the origin of the regolith, thegeomorphological processes and theregolith-landform relationships for manydistricts of the Yilgarn Craton in WesternAustralia to help devise effective samplingand data interpretation strategies.

The work, which has involved miningcompanies, Curtin University ofTechnology, The University of WesternAustralia and Geoscience Australia, hasresulted in the production of a regolith-landform map of the Yilgarn Craton and

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publication in the Australian Journal ofEarth Sciences (Thematic Issue: RegolithGeology of the Yilgarn Craton). The usersof this new reference material include thescientific community, mining companies,earth scientists and tertiary students. Thematerial summarises the distribution andcharacteristics of regolith materials,presents models of the landscape andregolith evolution, looks at implications formineral exploration – including choice ofgeochemical sampling media, datainterpretation and application ofgeophysical techniques – and presents animproved understanding of landscape andregolith impacts on agricultural andenvironmental issues.

This new knowledge of the Yilgarn Cratonwill reduce exploration costs, leading tomore economical mining.

“Congratulations on the publication ofyour magnum opus in the latestAustralian Journal of Earth Sciences. Itis an excellent overview which I’m surewill become widely cited.”

- Peter A. Cawood, Tectonics Special Research Centre

and Centre of Excellence in Mass Spectrometry,

Curtin University of Technology, Perth, Australia

The Predictive Mineral DiscoveryCooperative Research Centre (pmd*CRC)is an unincorporated joint venturebetween CSIRO, University of Melbourne,Monash University, James CookUniversity, The University of WesternAustralia, AMIRA International andGeoscience Australia. The Centre wasconceived by industry in partnership withthe research community to focusgeological research on issues of critical

importance to ore discovery. The aim ofpmd*CRC is to maximise the impact ofresearch outcomes on explorationstrategies by direct delivery of theresearch results to active explorersemployed by the participating companies.The pmd*CRC will develop a vastlyimproved understanding of mineralisingprocesses and a four dimensionalunderstanding of the evolution of thegeology of mineralised terrains. Efforts are

focused on resolving key areas ofuncertainty in current models for theformation of major economic mineraldeposit types; building 3D and 4D imagesand histories of well known mineralisedsystems; and creating a computationalenvironment to simulate the 4D evolutionof mineral systems with the goal ofdeveloping predictive capabilities forlocation and quality of superior oredeposits.

pmd*CRC

Research highlights

“The model CSIRO has developed isimportant and when we select an area forexploration we are usually guided by thatmodel. The model was used, forexample, in the selection of the BlackSwan project area where we subsequentlydiscovered the Silver Swan ore body.”

- David Burt, Mining Project Investors (MPI), Perth,

Australia

Western Australiashowing the locationof the Yilgarn Craton.

Mt Joel.

CRCLEME

Perth

Yilgarn Craton

Kalgoorlie

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The energy sector is a key component ofthe Australian economy, heavilyinfluencing domestic economicperformance, international competitive-ness and export earnings, directlythrough energy commodity exports, andas embedded energy in downstreammanufactured products.

The world energy system is on a path oftransition with:

• World oil supply expected to peakwithin the next two decades, whiledemand continues to rise.

• An abundance of gas withincreasing market penetration.

• Declining market share of coal.

• Increasing concern forenvironmental issues (greenhouse,clean air) driving increased interestand growth in renewable energy.

Australia’s transport sector consumessome 41 per cent of the nation’sdemand for energy, with 90 per cent ofthe sector reliant on liquid fuels. Whileour overall demand for oil is forecast toincrease to 50 per cent above year 2000levels by 2020, it is predictedAustralia’s oil production will declinesharply during this period.

Research for Australia’s oil and gasindustry needs to focus on increasingreserves through more successfulexploration and recovery rates,particularly for oil, whilst developing thetechnologies needed to addressAustralia’s declining liquid fuelsoutlook. As a regional hub for oil and gastechnology development, research atARRC in support of the petroleumindustry covers the following areas.

Exploration and Appraisal Technologies

Increasing exploration success throughbetter understanding of all the elementsof the petroleum system from sourcerock characterisation and thermalmaturity studies through migration andentrapment will attract continuedexploration activity and investment.

Research capabilities at ARRC appliedin this area include:

• Isotope chemistry techniques fordetermining the age of mineralformations; and reservoircharacterisation using NuclearMagnetic Resonance (NMR)imaging to determine rockproperties.

• Investigating fluid history ofpetroleum reservoirs and petroleum

systems to evaluate hydrocarbonoccurrences and oil migration andentrapment.

• Fault seal and basin hydrodynamicsresearch looking at present andpalaeo fluid flow and transportprocesses in sedimentary basins,fault seal potential and CO2

geological sequestration.

• Modelling of fluid in porous media

• New methods for incorporatingsub-surface and surface geophysicaland well-test information intodetailed descriptions of hydrocarbonreservoirs, involving thecombination of high resolution andlow-resolution data in an advancedgeostatistical framework.

• Seismic physical modelling

• Computer-based stratigraphicmodelling to simulate the processof sedimentary basin fill over timein order to predict reservoir qualityand better understand where oilmight be trapped.

• 3D visualisation using IVECfacilities.

CSIRO has already developedtechnologies and techniques in many ofthe above areas. Co-location with CutinUniversity researchers is now creating

Research activities insupport of the Australianpetroleum industry

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even greater opportunities to furtherdevelop technologies relevant toexploration in Australia and aroundthe world.

Geophysics research in this area iscarried out by CSIRO and CurtinUniversity’s Department of ExplorationGeophysics who work together closely onprojects and have jointly appointed aChair of Petroleum Geophysics. Togetherthe two organisations are carrying out aresearch program funded by the WesternAustralian Government dedicated todeveloping seismic applications for theminerals and petroleum industries.

Drilling and Drilling Fluids

Wellbore instability is an industry wideproblem with global annual costsestimated at more than $2 billion.Research directed at these problems isfocused on drilling fluid design,development and optimisation to tackleproblems of wellbore stability, sandproduction and waste management.Success will see further adoption by oilcompanies of CSIRO’s state of the artwellbore stability technologies and newwater-based environmentally friendlydrilling fluids.

Research directed at drilling is alsoconducted in close association withoil companies to develop technologiesthat will cut drilling and wellcompletion costs. Knowledge management(learning, case-based reasoning,statistical analysis, artificial intelligence),as demonstrated through the recentcommercialisation of CSIRO’s Genesis2000 technology, is a particular strengthof the research group. Furtherdevelopment of the Genesis software isunderway and a new Hard-to-Drill Rockproject aimed at improving drillingperformance in hard and impermeableformations through controlled vibrationsof the drilling system has begun.

High Quality Decision-Making andFast Learning

Decisions within the oil and gasindustry are particularly vulnerable touncertainty. Decisions are made at

every level of a company and rangeacross technical, economic,commercial and political issues. Yettraditional science offers little whenissues of judgment, interpretation andchoice of action arise.

Research into decision-making underrisk and uncertainty is focused on keyenhancements of existing softwaretechnologies to deliver newtechnologies for decision support toindustry. These include probabilityand statistics, and techniques tomanage the qualitative/human sideof decision-making. This tacklesboth the intellectual problems ofinterpretation, analysis and synthesisinvolved in conceiving ideas foreffective decision-making, and thepractical problems facilitating theresultant actions and change processitself.

Sustainable Energy Development

Research into alternative energy sourcesto address Australia’s declining liquidfuels outlook is a priority for CSIROPetroleum scientists throughoutAustralia. Effort is concentrated ongas-to-liquids and geothermal energy.

Gas research is looking at thedevelopment of new and noveltechnologies for the exploitation ofAustralia’s stranded gas reserves and othergas reserves world-wide. Current effort isfocused on the development oftechnologies for the conversion ofAustralia’s abundant gas to transportfuels, particularly clean diesel.Exploitation of the technologies developedwill see commercialisation focused onAustralia’s remote location gas.

Geothermal energy is potentially a largevolume, emission-free, renewable,energy source for Australia that couldsignificantly reduce dependency onfossil fuels and their associatedgreenhouse gas emissions. Australiahas the hottest rocks in the world(outside volcanic regions), as well asthe easiest to access. The currentresearch effort and new initiativesproposed are focused on provingthe viability of energy from “hot dryrocks”, and directed at reservoircharacterisation and managementtechnologies, well stimulationstrategies, heat transfer and energyconversion, drilling technologies andrisk assessment.

CSIRO scientists Mr Leo Connelly (left) and Dr Bailin Wu (right) set upa rock strength test in the Autonomous Triaxial Cell.

Green Drilling

Worldwide, the oil industry suffers anestimated $2 billion loss every year dueto collapsed and sidetracked holes, losttools and abandoned wells. Researchersfrom CSIRO in conjunction with US firmHalliburton Energy Services’ BaroidDrilling Fluids, have developedenvironmentally friendly drilling fluids toalleviate this industry headache and atthe same time help the energy industryto meet its green commitments.

Drilling fluids help transport cuttings tothe surface, clean and cool the drill bit,lubricate the drill-string, maintain thestability of the wellbore, protectformation productivity and controlpressure in the rock formation. Mostcurrent drilling fluids for maintainingwellbore stability in shales are either oilor synthetic-based and, because they areusually disposed of at sea, do not meetenvironmental compliance obligations orare costly to use in a way that meetsthese obligations.

CSIRO’s new water-based drilling fluidsovercome environmental and costdrawbacks and have similar performancecharacteristics to oil and synthetic-based fluids in maintaining shalestability. The formulations are beingcommercialised by Baroid as theBarOmega drilling fluid system.

“With worldwide environmentalrestrictions becoming increasinglystringent on the use of synthetic-basedand oil-based drilling fluids, thesuccessful introduction of the highperformance BarOmega drilling fluidsystem will provide the needed answerfor the industry to mitigate shalestabilisation problems and at the sametime, to meet stringent environmentalcompliance.”

- Mike Cropper, Senior Drilling Engineer, ApacheEnergy Limited, Perth, Australia

“After years of research we have beenable to identify a chemistry that willprovide the inhibition and shalestabilisation characteristics which, untilnow, are only seen with ‘oil based’invert emulsion fluids. At the BaroidProduct Service Line of Halliburton,we’re looking forward to seeing theperformance of the BarOmega systemrealised in the field in the near future.With environmental restrictionsgoverning the discharge of oil based andsynthetic based fluids increasing aroundthe world, the introduction of theBarOmega system will provide theanswer for high performance waterbased fluids.”

- Mr Tom Carlson, Technology Leader (SolutionsTeam), Halliburton Energy Services, Houston, USA

Research highlights

CSIRO Petroleum provides R&D andtechnical services to the petroleumindustry in Australia and around theworld. The Division has 150 staffoperating across three sites: Perth headoffice (ARRC), Sydney and Melbourne.

The Division’s research is currentlyfocused on increasing explorationsuccess, improving appraisal anddevelopment efficiency, improvingdrilling and completion performance,CO2 sequestration, geothermal energy,gas to liquids technologies, coalbedmethane, management of gas-in-coal formining and new tools for managing riskand uncertainty.

The Division’s science base is made upof three core capabilities:

• Geosciences – organicgeochemistry; organic petrology;geochronology and isotopegeochemistry; carbonate geology;geochemical modelling; structuralgeology and fault analysis;hydrodynamics and fluid history inpetroleum reservoirs; seismicgeophysics; mathematical modellingof geological processes; rockphysics and petrophysics; andgeostatistics.

• Geo-engineering – petroleumgeomechanics; reservoirengineering; hydraulic fracturemechanics; mathematical modellingassociated with non-linear coupledprocesses; wellbore mechanics,drilling fluids hydraulics andmultiphase flow; drillingperformance; data management;drill string mechanics; and riskassessment and decision making.

• Gas Process Engineering – gas toliquids; energy transformation;nanotechnology at surfaces;production, distribution and storageof hydrogen; catalysis;environmental control; and fuelsprocessing.

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CSIRO Petroleum

CSIRO Petroleum’s Aileen Boudeville(left) and Dr Chee Tan (right) monitor

mud filtrate flow rate in CSIRO’sMembrane Efficiency Screening

equipment.

mature over time, as gut feel, intuitionand judgment develop in the light ofbetter information and improvedprocesses. Juniper provides a snapshotof the state of health of a process thatcan prompt action to be taken. As thoseactions lead to better evidence or clarity,it can be updated and become a living,repeatable and auditable guide formanagers. Because the underpinningtechnology stores all the reasons behindthe judgments being made, it has bigimplications for corporate learning andallows companies to tap the wisdom andexperience of managers who may haveleft, retired or been promoted into otherjobs.

In a recent independent market testexercise carried out for CSIRO byNightingale Consulting, initial responsesto the new decision-making approachfrom the oil and gas industry have beenextremely positive. Three companieswish to trial the new process on pilotprojects.

Making the Good Oil Decisions

CSIRO’s risk and uncertainty researchgroup have been working with UK’sBristol University to come up with apowerful new way to ease the difficultyand uncertainty of critical decisions inthe oil industry.

Designed to equip junior and mid-levelexecutives with the judgment ofexperienced senior managers and tobalance clear objectives, resources,team motivation and monitoring, thenew Juniper software could potentiallysave the oil industry millions of dollarsby providing improved decision-makingprocesses. It provides a simple, powerfulvisual representation of evidence andbelief for any management challenge.

The new approach captures valuesrepresenting the user’s strength of beliefand the reasons behind them, turning itinto an audit tool. It recognises thatmanagement is a process – not an event– that decisions don’t just happen, but

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“You can use it to manage the question ‘do I develop this field?’ There areenvironmental issues, there is due diligence.... You need to be able to work outyour risks and whether you’ve mitigated them. The risks are typically in what youdon’t know rather than what you do know.”- Keith Spence, Director, Woodside Energy Ltd, Perth, Australia

“Two things look really good. The first is the social aspect of this. The second isthe trail it leaves which is really important.... This is a very clever way of attackingpart of that process.”- Chris Wright, VP Exploration, Houston, USA

Faster, Cheaper Drilling

CSIRO drilling and completionsresearchers have successfully teamed upwith Noble Engineering andDevelopment Ltd to commercialise anew generation oil-drilling tool with theability to help slash the costs and boostthe success of drilling for oil.

Offshore exploration wells typically costup to $10 million – but unforeseensnags can blow this out to nearly $30million. The Genesis 2000 softwarepackage allows easy analysis of existingoil well data which can be used as aplanning tool for improving new wells.The technology gives drilling engineers,rig staff, asset managers and financialcontrollers the ability to assess risks andcosts, and amend plans on the basis ofexperience gathered from previous oilwell developments.

Under the alliance, CSIRO retainsownership of the intellectual propertyused in the original $12 million project tocontinuously develop the technologythrough its internal and external scientificnetwork. Noble has the exclusive right tocommercialise the product. Over the nexttwo years, Completion and Workovermodules will be coupled into Genesis tooffer oil companies a complete system forenhancing well quality over the life-spanof the well.

Dr Edson Nakagawa (left) and Dr ThomasGabler (right) of CSIRO Petroleum discussfuture enhancements to the Genesissoftware package.

The Curtin University of TechnologyDepartments which form part of ARRCinclude Petroleum Engineering andExploration Geophysics. These groupsare part of the Curtin Division ofResources and Environment, which willsoon be headquartered in TechnologyPark, directly opposite ARRC.

Each department has been recognisedby the Western Australian Governmentwith Centre of Excellence status – theWestern Australian Petroleum ResearchCentre and the Centre of Excellence forExploration and Production Geophysics.ARRC also housed the Centre ofExcellence for Petroleum Geology during2001/02.1

Research at the Department ofExploration Geophysics and the Centreof Excellence for Exploration andProduction Geophysics is directed atimproving recovery of hydrocarbons andminerals from known sources by the useof advanced geophysical imagingtechniques. It is also involved in mineraland groundwater exploration research.The development of future geoscientistsfor industry is also one of theDepartment’s major roles.

The Centre of Excellence in PetroleumGeology1 has expertise in areas such aspetrophysics, basin modelling andseismic interpretation. Researchprojects are geared at developing abetter understanding of the North WestShelf and other key reservoirs,improving the predictability of reservoirquality and improving petroleumrecovery.

The Department of PetroleumEngineering and the Western AustralianPetroleum Research Centre (Curtinnode) is a supplier of top qualityteaching, research and consultancy tothe oil and gas industry. Its industry-focused research and developmentprogram offers novel, cost-effectivesolutions to complex engineeringproblems. Staff have a proven trackrecord in academia as well as manyyears of experience in the petroleum

industry. This combination of talentprovides a strong theoretical basecoupled with a practical approach tosolving real-life industrial problems.

The Woodside Research Foundation isanother arm of the Department ofPetroleum Engineering. Locatedopposite ARRC in Technology Park,facilities include:

• Hydrate Facility – natural gashydrate production to establish theviability of utilising a synthesisednatural gas hydrate as acheaper/alternate form to transportnatural gas other than LNG.

• LNG Microcell – The LNG Micro-cell technology enables theconversion of natural gas to liquidnatural gas in small-scaleproduction by means of aninnovative transportablerefrigeration system. It has the

potential to make small andisolated gas accumulationseconomically viable.

Each Curtin group has an industryadvisory committee and total funding ismainly from sources external to thenormal DETYA funding flow. TheWoodside Foundation, Curtin ReservoirGeophysics Consortium and the CurtinMinerals and Environmental GeophysicsConsortium are industrial sponsor groups,in addition to individual project sponsors.

Degrees offered

• Bachelor of Science, with Honoursin Applied Geology and inGeophysics

• Graduate Diplomas in Geophysics

• Postgraduate Diploma inGeophysics

• Master of Science degrees inGeophysics, Applied Geology andGeoscience Exploration

Curtin University of Technology

141The activities of this Centre have now been merged into the Department of Petroleum Engineering.

Course Geophysics Geology Petroleum TotalEngineering

• Master of Petroleum Engineering

• Master of Engineering (PetroleumEngineering)

• Doctor of Petroleum Engineering

• Doctor of Philosophy in Geophysics,Applied Geology and PetroleumEngineering

• Double degree in Geophysics andComputing, jointly offered by CurtinUniversity and University of WesternAustralia

In addition, the three groups areparticipants in the Master of PetroleumTechnology based at the Miri Sarawakcampus of Curtin.

Staff

Professors: ......................................8

Associate Professors: ........................4

Senior Research Fellows/Senior Lecturers: ..............................7

Lecturers/Research Fellows: ..............3

BSc 40 40BSc Hons 17 2 19Grad Dip 0Postgrad Dip 2 2 4MSc 3 5 8M Pet Eng 19 19Doc Pet Eng 1 1PhD 18 5 5 28Extension 5 5

• Seismic processing centre withLandmark/Promax software

• Seismic physical modelling system

• Hydrate processing pilot plant• Cryogenic PVT• Small scale LNG processing equipment

Students based at ARRC 2001/02

Continuous Seismic Monitoring ofOperating Oilfields

Investigations into the use of time

reversed acoustics as a tool for

geophysical processing has led Curtin

researchers to develop a methodology for

using time reversed acoustics to image

changes in the sub-surface, allowing

better monitoring of reservoir changes.

This has resulted in a technique for

continuous monitoring of oilfield

production. Using a multi-source, multi-

receiver seismic system, it is also ideal

for monitoring CO2 injection in oil and

gas wells. A provisional patent for the

technique has been granted.

The interest of Shell International hasbeen secured for a field trial of thisconcept of continuous seismic

15

monitoring of operating oilfields.Researchers at the University of Pariswould also like to participate and assistin laboratory tests and contacts havebeen established with the University ofManitoba and the University of Calgary,as field tests may also take place inCanada.

Metal Grade Results inthe Palm of Your Hand

Curtin University’s Dr Anton

Kepic has worked in

conjunction with an

Honours student to help

develop an instrument

designed to directly measure the nickel

and copper content of ore and drill

samples using field portable X-ray

fluorescence analysis.

The pair evaluated a prototype fieldportable instrument, commonly used formeasuring lead content in paint, todetermine its effectiveness in measuringmetal grade. With some known difficultiesand differences compensated for, theywere able to advise the equipmentmanufacturer on the necessarymodifications needed to adapt the existinginstrument for use in the mining industry.

The resulting instrument, the hand heldNITON XL-500 Prospector, now means ageologist may know within minutes thegrade of mineralisation rather than waitdays or up to a week for chemical analysisfrom a laboratory. Anaconda Nickel hasadopted the instrument for mine gradecontrol and other companies are nowevaluating the instrument for rapid andeffective exploration.

Research highlights

Specialised facilities

Officially opened on 10 May, 2002, bythe Hon. Dr Geoff Gallop MLA, Premierof Western Australia, the InteractiveVirtual Environments Centre (IVEC) is ahigh performance computer visualisationcentre focussing on the application ofinteractive virtual environments intomajor industries such as: mining andpetroleum, medical training andresearch, architecture and construction,multimedia, education and urbanplanning.

IVEC is a joint venture between CSIRO,Curtin University, Central TAFE and TheUniversity of Western Australia. Thecommissioning of IVEC’s highperformance fibre optic network atARRC links fast computers and excitingvirtual reality devices at IVEC’s threePerth nodes and connects IVEC’sresearchers to Australia’s fastest supercomputer, the Australian Partnership forAdvanced Computing National Facility,in Canberra.

Virtual environments are particularlyeffective when they allow users to tackleproblems in areas of high capital orsocial cost. Three-dimensional virtualenvironments are being increasinglyused to visualise mineral and petroleumreserves that may be hundreds and eventhousands of metres below the surface

of the earth or the sea. Imagine takinginvestors through a computer-modelledgold mine — before mining has started!Imagine engineering safe mines, withfewer mine failures and more efficientexploration and production of oil and gasreserves. This tool is of greatsignificance to CSIRO and CurtinUniversity researchers who can now viewthese resource deposits using speciallydesigned computer-models in thecomfort of IVEC’s 3-D visionarium atARRC. Using such techniques willreduce exploration costs, increaseextraction efficiency and increase thecompetitive edge of the Australianresources industry.

Also located at ARRC is a hapticworkbench, which is an amazing force-feedback robotic device providing userswith 3-D virtual reality viewing, andIVEC’s super computer capable of

making 10 billion calculations persecond. This super computer is at oneend of the fibre optic network whichlinks IVEC’s other two nodes – CentralTAFE in Perth and The University ofWestern Australia (UWA) in Nedlands –where additional 3-D screen systemsand haptic workbenches are operated byexperts recruited from around the world.

IVEC has funding of $4 million from theState and Federal Governments andjoint venture partners.

16

Interactive VirtualEnvironments Centre (IVEC)

The Premier officiates the opening of IVECwith IVEC Chairman Alex Allan.

The Premier tries out IVEC’s haptic work bench.

Iron ore mining in Western Australia is amajor source of export income forAustralia, but with falling reserves ofhigh-grade ore, companies are underincreasing pressure to provide consistentchemical and mineralogical ore grade. Totackle this problem a revolutionary mine-based imaging system called “SpectralMine Sight” has been developed byCSIRO Exploration and Miningresearchers at ARRC. Spectral Mine Sightis based on visible-near-infrared – short-wave-infrared (VNIR-SWIR) reflectancespectroscopy which provides informationabout ore types, their chemistry andmineralogy. The new technology allowsmineral images of the mine face to begenerated.

The capability has already beendemonstrated by spaceborne andairborne imaging systems as well ashand-held instruments. The aim of theproject has been to fill the gap and bringthis technology to the mine-scale level toproduce new mineralogical maps that willhave major impact on ore gradecharacterisation and ore recovery. Thenewly developed Spectral Mine Sightsystem comprises a field portablespectrometer, adouble axis rotatingstage, a one-degreefield of viewtelescope andcustom software.

Project deliverables

• A prototype mine-based system –Spectral Mine Sight.

• Documentation of operationalmethods and software for SpectralMine Sight data validation.

• A number of case-history reportsdetailing the successful applicationof Spectral Mine Sight to iron andgold ore mining in Western Australia.

• Spectral Mine Sight derived 3-D oregrade maps.

• Technology transfer to the State’sminerals industry through reports,conferences and workshops.

• Specifications for an end-to-endoperational Spectral Mine Imagingsystem.

Potential benefits and progress to date

In addition to improved ore grademodels, other benefits of the SpectralMine Sight technique include: improvedunderstanding of mine design andgeotechnical issues; improvedunderstanding of ore forming processes;and safety (away from the high walls).Beneficiaries of the research will includeState-based mining companies such asHamersley Iron, Robe River, BHPBilliton, Anglo-American, KCGM andWestern Mining Corporation. The ironore, gold, talc and nickel industries willbenefit from Spectral Mine Sight as itwill help them to enhance depositdelineation and ore gradecharacterisation as well as improverecovery. Better deposit delineation willalso lengthen the life of the mine and has

obvious impact on preserving regionalemployment levels.

Communication of project results to datehas taken place through case historyreports, conferences, industry workshopsand through a feature article in theAustralian Institute of Mining andMetallurgy’s Bulletin magazine(March/April 2002).

Funds were provided by the StateGovernment for this project until June2002. The team are now seeking fundingfrom iron ore companies to furtherdevelop the existing technique andproduce customised software for mines.

Contact: Erick RamanaidouPh: + 61 8 6436 8810Email: Erick.Ramanaidou@csiro.au

State funded ARRCstart-up projects

“Spectral Mine Sight”– mineralmapping technologies forenhanced mining applicationsin Western Australia

CSIRO’s Erick Ramanaidou sets up the SpectralMine Site System to use in feild trials.

Pack Saddle road cut, 130km NW of Newman.

Same location as above showing a hematite:geothiteratio generated from spectral analysis. Hematite-richis purple, geothite-rich is yellow, vegetation is greenand sky is blue.

According to AGSO (Geoscience

Australia), Australia currently has a large

“para-marginal” resource that could

easily become economic with the

introduction of new mining technology.

An analysis of AGSO figures and known

orebody characteristics shows the

potential exists for more than $100

billion of contained metal in this

resource to become economic using

Automated Horadiam – a new technique

being developed by CSIRO and Curtin

University. Automated Horadiam is part

of CSIRO’s long-term research into

Remote Ore Extraction Systems (ROES).

Existing horadiam methods require

miners to drill blast-holes from within

a shaft and radially outward in a sub-

horizontal plane. The holes are filled

with explosives and then blasted. The

confinement of the shaft and the risk

of rock falls make the task hazardous,

and therefore it has limited

application. Automation or remote

control of this process will allow

miners to work from the safety of

remote control rooms without the

associated hazards. Automated

Horadiam mining can be applied to a

wide range of orebody types and

replace existing techniques such as

open-stoping. It has potential to

deliver significant cost savings and

safety improvements to make many

sub-economic orebodies viable

(expanding the economic resource).

Ultimately the Automated Horadiam

machines will safely drill, load

explosives and initiate blasts.

Project participants include CSIRO,

Curtin University (Western Australian

School of Mines), mining companies and

equipment suppliers.

Project deliverables

• Design and fabrication of a basic

automated mining platform to be

used for testing automated drilling

and robotic manipulators from within

a raise bore hole.

• Included in this equipment will be a

level of survey/guidance technology

required for testing.

• Comparative feasibility and cost

studies for comparison with

conventional techniques.

• A report covering preliminary

laboratory test work of the

equipment and recommendations for

the complete mining system design.

Potential benefits and progressto date

• Reduced injury and severity rates for

underground hard-rock mining due to

reduced exposure.

• Increased profitability from bulk

mining with reduced costs for

existing mines.

• Increased ore reserves with greater

conversion of resources into reserves.

• Improved business for the

manufacture of heavy mining

equipment in Western Australia.

• Increased royalty revenue to the

State Government with increased

mine life as a result of the increased

reserves.

During the first phase of the project (July

2000 – June 2002) a comparative

feasibility study for four ore bodies in

Western Australia has indicated cost

reductions of between 6 per cent and 20

per cent. A feasibility study of a

Queensland and South Australian ore

body also indicated significant saving.

Initial mine designs have been prepared

and at least three of the ore bodies

previously considered sub-economic are

now considered economic. The basic

concepts of the proposed equipment

have been developed further and

costings obtained. Expressions of

interest have been received from mining

companies and further CSIRO funding to

continue the project has been confirmed.

Risk assessments, industry consultation

and an independent review have also

been completed. The project is expected

to evolve into full-scale trial mining in 2

to 3 years with a possible first site in the

Western Australian Goldfields. Success

of the technique will depend on the

ability to operate drilling and explosive

placement equipment without access by

operators and this will be the focus of the

next stage of research beginning 1 July

2002.

In addition to direct consultation and

communication of findings to industry,

the Automated Horadiam technique was

featured in the May 2002 issue of

Australia’s Mining Monthly.

Contact: Jock Cunningham

Ph: + 61 7 3327 4699

Email: Jock.Cunningham@csiro.au

18

Automated Horadiam mining equipment

Horadiam stoping platform

Seismic methods used for explorationare the most powerful of all thegeophysical imaging techniques due totheir depth of investigation, directivityand structural resolution. However,there still remain some technicalimpediments to seismic methods inboth the minerals and petroleumindustries. Seismic imaging in areas ofthe North West Shelf can be hamperedby energy scattering processes andfundamental research to understandand develop the technology to addressthe problem is needed. In the miningindustry, more research into applyingseismic technology and petroleum-based ideas to the hard-rockenvironment is also required.

Advances in our ability to model thecomplexities of seismic responses bothnumerically and using scaled physicalmodels will greatly improve theapplication of seismic methods. The co-location at ARRC of CSIRO Explorationand Mining, CSIRO Petroleum andCurtin University’s Department ofExploration Geophysics, along with thejoint appointment of a researchprofessor in petroleum geophysics, hascreated an integrated centre ofexpertise for geophysical research withthe ability to understand and developsolutions to fundamental seismicproblems in Western Australia in orderto develop a suite of effectivetechnologies.

This first ARRC seismic project hasbeen driven by the need for newsimulation and visualisation tools, andrevolves around the development of adistributed software architecture toaccess many forward modellingcapabilities from a single user interface.This capability will provide a platformfor interpretation based upon multipledata sets, of which seismic data is one.

Project participants include CSIRO,Curtin University and The University ofWestern Australia.

Project deliverables

• Development of numerical modellingcode using finite difference methods.

• Analog modelling of synthetic rocksto recreate reservoir processes.

• Time reversed acoustics to apply toreservoir imaging problems.

• Diffraction based imaging to stackscattered seismic energy in mineralexploration.

The broad research strategy for thisproject consists of three phases: researchof the concepts, development of thetechniques and transfer to industrialproduction processes.

Potential benefits and progressto date

Improved and refined seismic techniquesto explore and delineate petroleumreservoirs and hard rock ores have a directimpact on the discovery and the efficientrecovery of these resources. Improvementof even 2 per cent in the recoverability ofan oil reservoir and the reduced number ofwells to delineate a discovery has anenormous impact on the economics of thereservoir, while the addition of thereconnaissance ability of seismic to themining industry as an analog of what hasrevolutionised the petroleum industrywould have immediate impact onexploration success and risk reduction inthe mining sector. With a decrease in thediscovery of shallow mineral deposits, thismakes the development of viable seismicexploration methodologies critical to thefuture of the minerals sector.

To date, considerable progress has beenmade in numerical modelling, with thebuilding of sophisticated code that canhandle 3-D isotropic and anisotropicresponse in a heterogeneous media. It canalso handle 2-D viscoelastic response withplans to develop to 3-D response. There ishigh recognition that this code is superiorin flexibility and complexity than mostcodes currently available in the industry.The analog modelling research is based on

recent advances in physical modellingwhich combines sandbox experimentswith a synthetic cementation technique(CIPS) developed by CSIRO Explorationand Mining. Initial work established theviability of this technique to constructingsynthetic rocks, with a high degree ofcontrol on the properties such ascementation strength, velocity, porosityand permeability. The effort on timereversed acoustics has involvedestablishing the application of thetechniques for focusing on multiplegeneration and looking at imagingchanges observed in 4-D seismics.

Research findings are being continuouslycommunicated to the industry throughconference papers and direct meetings.Future work is planned to further developthe viscoelastic components of thenumerical modelling code and jointdevelopment of the web modellinginterface. Efforts will be concentrated onestablishing the analog modellingtechniques to a multiple set of problemsin partnership with the petroleum industryand in support of research efforts in theproposed CRC in CO2 sequestration.

Contact: Kevin DoddsPh: + 61 8 6436 8727Email: Kevin.Dodds@csiro.au

19

Development of seismic applicationsfor Western Australian conditions forthe mineral and petroleum industries

Artificial sandstones made from quartzsand and cemented with calcite using CIPS(Calicte In-situ Precipitation System).The rocks reproduce the acoustic andmechanical properties of naturalsandstones and individual physicalproperties such as porosity, permeabilityand strength can be precisely controlled forlaboratory experiments. The rocks haveapplications in geophysical, petrophysicaland geomechanical research.

Geologist preferred solution

The mining and minerals industries make

a fundamental contribution to the wealth

of all Australians, however the mining

industry in Australia is now facing a series

of challenges. The spectacular growth

experienced over the past decade in the

real value of Australia’s subsoil assets is

the result of a series of impressive

exploration successes in the 1970s and

1980s. It’s now 25 years since the

discovery of Olympic Dam – the last

mineral deposit discovered in Australia

with a Net Present Value (NPV) of greater

than $1 billion.

The next round of significant discoveries

in Australia will depend on the

development of far better conceptual

targeting procedures based on a generic

understanding of ore systems and the

ore forming process, together with new

geophysical and geochemical

technologies. To address this, a research

team at ARRC has been developing

computer simulation systems for

predictive exploration and subsequent

resource extraction. The outcomes

include a set of predictive exploration

and engineering tools which form the

basis for a set of models which simulate

the origin and evolution of sedimentary

basins and collisional mountain terrains.

Project participants include CSIRO,

IVEC, The University of Western

Australia and students from Curtin

University of Technology and the

University of Western Australia.

Project deliverables

• 3D and 4D geodynamic modelling

codes which simulate the geological

and geo-engineering conditions

within which petroleum and

minerals systems form and from

which they are extracted.

• Interactive software systems which

enable users to consider “what if”

scenarios associated with the 3D

thermal-chemical-fluid flow-

deformational history of a specific

region of the Earth’s crust, from

basin scale through to engineering

scale.

• Advanced interactive visualisation

systems for exploration-friendly

software. These are being developed

through the Interactive Virtual

Environments Centre (IVEC) and

focus on geologically realistic

numerical procedures.

Potential benefits and progressto date

A new world-class discovery would make

a significant contribution to Australia's

economy and mean an increase in the

per capita wealth of Australians. The

major beneficiaries of this Predictive

Systems research program will be the

Australian petroleum and exploration

industries (and in turn the Australian

community).

Principal activities in this project during

the 2001/02 financial year were in the

area of ‘inversion in geology’ – a

technique used in the computer

simulation of earth processes associated

with ore body formation. In the past, a

geologist conducting numerical models

would vary a number of input parameters

such as stress and heat at the boundaries

of the model (a 2-D or 3-D “box”) to test

which combination of variables would

produce the geologically sensible

outcomes they were attempting to

reproduce. Given that each test can take

hours to weeks to run in the computer,

the process is slow and inefficient if

done in a sequential manner. This

slowness is a major impediment to the

application of numerical modelling to

many practical mineral exploration

problems. A major step forward in

addressing this difficulty is the inversion

in geology algorithm developed by

CSIRO. This provides a mathematical

tool for changing a number of parameters

simultaneously, meaning that many

modelling runs can be undertaken at the

same time to more rapidly produce

geologically sensible outputs. Results

can be selected for closeness to reality by

an experienced geologist and the

algorithm can then select starting

parameters using the information gained

from the geologist’s visual inspection.

Therefore, this work will allow rapid

selection of parameters to produce

realistic outputs in known geological

environments. Exploration geologists will

then be able to use these parameters to

apply to their geological prospects to

determine if mineralisation is possible

and, if so, what form it might take.

Contact: Paul RobertsPhone: + 61 8 6436 8758Email: Paul.A.Roberts@csiro.au

20

Simulation systems forpredictive explorationand resource extraction Self organising map: 2D representation of multi-dimensional input parameter space

mapping various model runs used by geologists in the modelling process.

Total 2001/02 investment in research and support services atARRC by CSIRO and Curtin University is summarised in thefollowing table.

Research support and human resources

Finance

ARRC staff numbers as at 30 June 2002ARRC houses some 230 staff from CSIRO Exploration andMining, CSIRO Petroleum and Curtin University of Technology.CSIRO Petroleum, as the service provider for ARRC, isresponsible for the building and its environment. This ismanaged through the ARRC Operations Team, who hasresponsibility for all aspects of this service provision – HumanResources, Finance, Information Technology and Operations,including the Library.

Staff have been recruited and relocated from CSIRO and thepetroleum and minerals industry locally, from the easternseaboard of Australia and overseas. In addition, a number ofstudents, fellows and visiting scientists work within theresearch groups at ARRC.

Prior to staff moving in to ARRC, Information Technology (IT)staff worked around the clock to commission and configurenew IT facilities, resulting in a smooth transition and minimaldisruption to daily operation as the site became populated.ARRC’s computing, telephone and video conferencingfacilities are ‘state-of-the-art’, with the facility being the firstCSIRO site to deploy a total IP telephony system with noreliance upon legacy PABX systems. This means that insteadof having traditional separate data and voice circuits, ARRChas a converged voice, video and data network in which voiceand video is treated simply as data, similar to the way in whichemail is treated. ARRC has also implemented a wireless datanetwork that enables staff with suitably equipped laptopcomputers to roam freely within the building with no loss ofnetwork connectivity.

ARRC’s professional Records Management staff develop,coordinate and implement records management proceduresfor participating CSIRO divisions on site. Staff gather andmaintain scientific, corporate and commercial records inaccordance with CSIRO policy and best practice procedures.

The ARRC Library is a gateway to a powerful suite ofinformation services which enable CSIRO divisions on site,CRCs, Curtin University of Technology and Centres ofExcellence to take advantage of sophisticated electronicinformation delivery options to realise ARRC’s world classresearch vision.

21

CSIRO Petroleum

Geophysics

Drilling Fluids & WellboreMechanics

Decision Systems

Predictive Geoscience

Geofluid Dynamics

Drilling & Completions

NMR & Isotope Chemistry

Marketing & BusinessDevelopment

Research Support

10 2 3 4 5 6 7 8 9 10 11 12 13

CSIRO Exploration and Mining

Computational Geoscienceand pmd*CRC

Regolith and EnvironmentalGeoscience and CRCLEME

CRC LEME HQ

Visual Resources Unit

Magmatic Ore Deposits

Analytical Facilities Group

Mineral MappingTechnologies

Ore Deposit Processes

Executive/Support Services

CSIRO Corporate

10 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

Curtin University Staff and Students

Petroleum Engineering

Petroleum Geology

Exploration Geophysics

50 10 15 20 25 30 35 40 45 50 55 60 65

ARRC Centre Management and Operations staff have beeninstrumental in guiding the Centre through the building set-upand the warranty and defects period of the first twelvemonths. The Research Support Infrastructure provides avariety of administrative services for all ARRC staff.

* Direct Government funding to CSIRO and Curtin University

Expenditure Staff Operations Infrastructure TOTALCategory ($ ‘000) ($ ‘000) & Support ($ ‘000)

CSIRO 8,872 5,783 5,630 20,285Curtin University 2,055 2,294 464 4,813Total 10,927 8,077 6,094 25,098

CSIRO 11,741 8,544 20,285Curtin University 2,021 2,792 4,813Total 13,762 11,336 25,098

Funding Institutional* External TOTAL($ ‘000) ($ ‘000)

The “Performed by Schlumberger2001 Silver Award”

The “Performed by Schlumberger 2001Silver Award” was presented to theintegrated team of CSIROPetroleum, Chevron (formerly WAPET) andSchlumberger for work titled ProspectRisk & Uncertainty Management. Thiswas a project to evaluate the overpressurerisk for a drilling prospect by integratingtechnical studies with the drilling decisionprocess using Juniper-based integratedprobability decision trees. The technicalstudies involved geological modelling,velocity-pressure transform generationand mapping onto a 3-D velocity cube.The whole process provided an explicit,transparent decision process whichchanged the perception of risk in the area,with consequent reduced explorationcosts per well, increasing its apparentprospectivity.

2002 Gibb-Maitland Medal

CSIRO Exploration and Miningscientist Dr Charles Butt has beenawarded the 2002 Gibb-MaitlandMedal by the Western AustralianDivision of the Geological Society ofAustralia. The medal is awarded yearlyfor contributions to geoscience inWestern Australia, particularly ineconomic geology. Dr Butt receivedthis year’s medal for the developmentof geological and geochemicalexploration procedures for deeplyweathered terrains.

2001 Lindsay Ingall Award

Curtin University’s Greg Street receivedthe 2001 Lindsay Ingall Award fromthe Australian Society of ExplorationGeophysicists for his efforts in thepromotion of geophysics to the widercommunity. Greg played a significantrole in expanding the application ofgeophysics into the environmentalfield. From encouraging fellowscientists to pursue environmentalcauses and identify solutions, toeducating parliamentarians, Greg’sactive role in the fight againstsalinisation and other environmentalhazards has resulted in numerouspublic appearances and contributionsto all forms of media.

Awards, achievements andcommunity sponsorshipsCSIRO, Curtin University of Technology,

Edith Cowan University, Murdoch

University and The University of Western

Australia have established a fund for

new postgraduate research scholarships

that aims to enhance research into

minerals and energy exploration,

extraction and processing.

WACUPS are awarded for a two year

period for Masters by Research and a

Western Australian CSIRO University Postgraduate Scholarships (WACUPS)

ARRC’s most important asset is its diverse and highly talented mix of staff,a claim that is backed up by the awards and recognition they receive.

three year period for a Doctoral degree,

and are open to both local and

international applicants. Current

WACUPS students and their research

areas include:

• Damian Leslie, Curtin University/

CSIRO Petroleum, Geophysics

• Affonso Lourenco, Curtin University/

CSIRO Petroleum, Drilling and

Completions

• Wolfgang Prassl, Curtin University/

CSIRO Petroleum, Drilling and

Completions

• Jasmine Rutherford, University of

Western Australia / CSIRO

Exploration and Mining,

Environmental Geoscience

• Chris Wijns, University of Western

Australia / CSIRO Exploration and

Mining, Structural Controls on

Mineralisation

22

Dr Charles Butt,winner of the 2002Gibb-Maitland Medal.

Greg Street (left)receiving theLindsay IngallMemorial Awardfrom ASEGPresident TimPippett.

Kevin Dodds, one ofthe members of theCSIRO Petroleumresearch team thatwon the “Performedby Schlumberger2001 Silver Award”.

23

Karawara Community Project

On moving in to ARRC, CSIRO donated$5,000 to the Karawara CommunityProject’s Go Kart Program. The Programis offered to local children considered“at risk” as well as those who would notusually have the chance to enjoy suchactivities. It aims to instil an improvedsense of self-worth as well as increaseproblem solving and social skills in itsyoung participants. The Go Kart Programteaches new skills such as driver safetyand cart maintenance, and is facilitatedby an experienced youth worker who isalso a qualified mechanic. Karawara is aneighbouring suburb to Kensington, inwhich ARRC is located.

Young Achievement Australia

ARRC is supporting the YoungAchievement Australia Business SkillsProgram. This gives student participantsexposure to the business world through a16 - 24 week structured program whichallows them to form their own company,raise capital and develop a product tomanufacture and sell. Studentscompleting the program gain aCertificate II in Small BusinessManagement. ARRC’s contribution issponsoring students at Mt Lawley SeniorHigh School.

Curtin Entrepreneurs Challenge

CSIRO Petroleum is sponsoring theInnovation and Creativity award in the2002 Curtin Entrepreneurs Challenge.The aim of the competition is tocultivate entrepreneurship in students inall subject areas at Curtin University ofTechnology. Participants are learningabout entrepreneurship, identifyingbusiness opportunities, forming teams,writing executive summaries andbusiness plans and building successfulnetworks.

Schools Information Program

The Schools Information Program is runby the Petroleum Club of WA and theAustralian Petroleum Production andExploration Association (APPEA). TheProgram organises excursions for year10 science classes to visit variousresearch organisations and companiesinvolved in petroleum to learn moreabout the industry. During May 2002,ARRC hosted students from DuncraigSenior High School, Rossmoyne SeniorHigh School and John Curtin College ofthe Arts. ARRC will continue to supportthis program each year.

“Me No Hair Day”

In March 2002 ARRC staffenthusiastically became involved inorganising an event for “Me No HairDay”, with 5 staff members shavingtheir heads for charity. A total of $1,700was raised for the Cancer Foundation ofWestern Australia.

ARRC is also conscious of its responsibility to the community in which it islocated and the general public. During 2001/02, ARRC has supported itscommunity through a number of initiatives.

Students from Rossmoyne Senior High Schoolwon Best Project for Semester 2 of the PetroleumClub of WA’s ‘School’s Information Program’.

CSIRO staff members David Gray, CatherineDurrant, Tony Gray and Greg Hitchen shavedtheir heads to raise money for Cancer researchon “Me No Hair” day.

ARRC Steering CommitteeThe ARRC Steering Committee was established to provide a forum for high level liaisonbetween CSIRO and the Western Australian government in regard to the operational andresearch objectives of the Centre and other relevant issues. Its role was also to appointall members of the ARRC Advisory Committee. The Steering Committee met three timesa year.

Membership for 2001/02:

• Hon Clive Brown (Chair) - Minister for State Development

• Mr George Harley - General Manager, CSIRO Corporate Property

• Dr Bruce Hobbs - Deputy Chief Executive, CSIRO

• Dr Adrian Williams - Chief, CSIRO Petroleum

• Prof Neil Phillips - Chief, CSIRO Exploration and Mining

• Mr Greg Thill - Principal Adviser, Resources, CSIRO

• Emeritus Prof John de Laeter - Curtin University

• Dr Paul Schapper - A/Director General, DoIT*

• Mr Quentin Harrington - Executive Director, DoIT

• Mr Richard Muirhead - Chief Executive Officer, DCT**

• Mr Simon Skevington - Team Leader, Infrastructure, DoIT

• Mr John Thompson - Chair, TIAC

The Steering Committee was disbanded after the commissioning of ARRC as per theformal agreement to establish the Centre.

ARRC Construction CommitteeThe ARRC Construction Committee was responsible for overseeing the constructioncontracts for establishing ARRC and consisted of members from CSIRO and theWestern Australian Government. The Committee met every six weeks during theconstruction period.

Membership for 2001/02:

• Mr Trevor Moody (Chair) - Assistant General Manager, CSIRO Corporate Property

• Dr Steve Harvey - Deputy Chief, CSIRO Exploration and Mining

• Mr Peter Bosci - General Manager, CSIRO Petroleum

• Mr Simon Skevington - Team Leader, DoIT

• Ms Lesley Smith - Executive Director, DCT

• Mr Bob Gadsdon - Client Manager, CAMS***

• Mr Arthur Lyons - Project Officer, DoIT

• Mr Roy Chapman - Project Leader, DoIT

As the Construction Committee’s function was to see the building through theconstruction, completion and defects period, its role has now ceased.

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ARRC Committees

* State Department of Industry and Technology** State Department of Commerce and Trade*** State Department of Contract and Management Services

ARRC Advisory CommitteeThe role of the ARRC Advisory Committee is to ensure ARRC operates in a manner thatprovides maximum benefit to Western Australian industry, research organisations andthe community. Additionally it oversees the research plans for the Centre and reviewsthe activities of the Centre against objectives annually. The ARRC Advisory Committeemeets twice a year and is selected from representatives of appropriate institutions,government agencies and industry.

Membership for 2001/02:

• Mr Lee Ranford (Chair) - A/Executive Director, DMPR****

• Dr Bruce Hobbs - Deputy Chief Executive, CSIRO

• Mr Jeffrey Gresham - General Manager – Exploration, Homestake Gold

• Mr Rob Male - Principal Development Engineer, Woodside Energy

• Prof. Michael Barber - Pro Vice Chancellor (Research), UWA

• Prof Paul Rossiter - Deputy Vice Chancellor (R&D), Curtin University

• Mr Geoff Suttie - Counsellor, DMPR

• Dr John Barker - Team Leader, DoIT

ARRC Directions Committee The ARRC Directions Committee consists of one senior representative from each of theCSIRO Divisions on site, one representative from Curtin University of Technology, ARRCCentre Manager and a representative from CSIRO Minerals in an observer capacity.The Committee’s main functions are to:

• Provide advice and input to the ARRC Advisory Committee on the strategicdirection of the Centre.

• Ensure the operations of the site are consistent with the ARRC Charter.

• Approve annual and out year ARRC budgets to meet current and futurerequirements.

The Committee delegates responsibility for the day-to-day operations of the Centre toCSIRO Petroleum line management, who have established an Operations Team forthis purpose.

Membership for 2001/02:

• Dr Adrian Williams (Chair) - Chief, CSIRO Petroleum

• Prof Neil Phillips - Chief, CSIRO Exploration and Mining

• Prof Paul Rossiter - Deputy Vice Chancellor (R&D), Curtin University

• Ms Anne-Marie Cook - ARRC Centre Manager

• Dr Len Warren (Observer) - Senior Manager, CSIRO Minerals

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**** State Department of Mineral and Petroleum Resources

CSIROAlberta Research CouncilAMIRAAnglogoldApache Energy LimitedAUSIndustryBHP Billiton Iron OreBHP Billiton PetroleumBoral Energy Resources LtdBP Chevron TexacoCodelcoConocoCoparexCRC Program (DISR)Esso Exxon MobilFalconbridge Nouvelle Caladonie SasFalconbridge LimitedFractal GraphicsHalliburton Baroid Product Service LineHamersley IronGeotechGeoTrack InternationalInpexJapan Australia LNG (MIMI) Pty LtdJapan National Oil CorporationLemigasMagellan Petroleum Australia LimitedMERIWAMetal Mining Agency of JapanNipponNoble DrillingNorsk Hydro ASOil Search LimitedOMV AustraliaPacific PowerPanCanadian Petroleum LimitedPDVSAPetrobelPetrobrasPETRONAS Phillips Petroleum CompanyPhillips Oil Company AustraliaPremier OilRobe River MiningRoger Townend & AssociatesSantos LimitedSaskatchewan Research CouncilSchlumberger TiwestShell South Pacific Chevron CompanySumitomo Metal MiningSydney GasTap OilTNOWoodside Energy Ltd

Curtin University of TechnologyAAPG FoundationAGIP Australia LimitedAnaconda Nickel LtdAnglo American Exploration (Australia) Pty LtdAnglogold Australia LimitedApache Energy LimitedAttaka CFT, Unocal Indonesia Co.Australian Society of Exploration GeophysicistsResearch FoundationBHP Billiton Iron OreBHP Billiton PetroleumCGG Australia Pty LtdChevron Australia Pty LtdChris DBFConsolidated Minerals ñ Pilbara ManganeseDe Beers Australia Exploration LtdEncomER MapperFractal TechnologiesFugro Survey Pty LtdGeosoftGiant Reef MiningHeron ResourcesJCOAL - Japan Coal Energy CentreKevron Pty LtdLandmark Graphics CorporationMetals Quest Australia LimitedM.I.M. Exploration Pty. Ltd.Minerals and Energy Research Institute of WA(MERIWA)Origin Energy Resources LimitedParadigm Geophysical CorpParis University VIIPGS Australia Pty LtdPlacer Dome Asia Pacific LimitedSantos LimitedSouthern Geoscience Consultants Pty LtdTanami Gold MLTexaco Australia Pty LtdThales GeoSolutions Veritas DGC Australia Pty LtdWesternGecoWMC Resources LtdWoodside Energy Ltd

Industry clients and partners

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Australian Resources Research Centre26 Dick Perry AveTechnology ParkKensingtonPerth WA 6151Australia

PO Box 1130Bentley WA 6102Australia

Ph: + 61 8 6436 8500Fax: + 61 8 6436 8555Web: www.arrc.net.au

CSIRO Exploration and MiningDr Steve Harvey Deputy ChiefPh: + 61 8 6436 8610Email: Steve.Harvey@csiro.au

CSIRO PetroleumGreg Thill Acting Chief Ph: + 61 8 6436 8701Email: Greg.Thill@csiro.au

Curtin University of TechnologyProfessor Paul RossiterDeputy Vice-Chancellor (R&D)Ph: + 61 8 266 3045Email: p.rossiter@curtin.edu.au

Head of Department Department of Exploration GeophysicsC/- Deirdre HollingsworthPh: + 61 8 9266 3565Email: deirdre@geophy.curtin.edu.au

Professor John McDonald Centre of Excellence for Exploration and ProductionGeophysicsPh: + 61 8 9266 7194Email: mcdonald@geophy.curtin.edu.au

Professor Raj Rajeswaran Department of Petroleum EngineeringPh: + 61 8 9266 7857Email: rajr@peteng.curtin.edu.au

Professor Mike MiddletonDepartment of Petroleum EngineeringPh: + 61 8 9266 7980Email: middlem@lithos.curtin.edu.au

Cooperative Research Centres for:Landscape Evolution and Mineral ExplorationPaul WilkesPh: + 61 8 6436 8695Email: wilkes@geophy.curtin.edu.au

Predictive Mineral DiscoveryPaul RobertsPh: + 61 8 6436 8758Email: Paul.A.Roberts@csiro.au

IVEC (Interactive Virtual Environments Centre)Dr Rod ThieleIVEC DirectorPh: + 61 8 6436 8831Email: Rodney.Thiele@csiro.auWeb: www.ivec.org

ARRC Centre Management Anne-Marie CookPh: + 61 8 6436 8511Email: Anne-Marie.Cook@csiro.au

ARRC Public Relations OfficePh: + 61 8 6436 8707

ARRC contacts

A u s t r a l i a n R e s o u r c e s R e s e a r c h C e n t r e