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By M. P. Adamson, Bryson D. Trexler, R. V. Ramani, Mark L. Koenig, V. Rajaram, Alan Burton, C. S. Crocker, Kim. Y. C., A. G. Law, William C. Larson

Another record year vas experienced by the mining industry as the value of nonfuel minerals production soared to $23.5 billion-up 15% from the previous year. Based on preliminary estimates by the Bureau of Mines, US mine output was the basis for about $225 billion worth of minerals-derived materials. Metal mining accounted for $8.5 billion, or 36%, of the total. Of the 22 metals produced in the US, 11 showed quantity increases, while 16 had value increases. Business Week's survey of 1200 companies (Mar. 17, 1980, pg. 81) revealed that 21 metals and mining companies had sales increases of 30% with earnings up 104%. Higher prices and increased demand for metals were primary factors behind the improved performance. The steel sector reported a 30% decrease in earnings for the year, but the slump was primarily the result of a $383-million loss for US Steel coupled with a 17% decrease in earnings at Inland Steel. Other firms did well in 1979, with earnings up 279% at Interlake and 269% at Kaiser Steel. Major obstacles facing the steel industry included substantial tonnages of dumped and subsidized imports, environmental expenditures, runaway inflation, and price controls. Turning to nonmetallic production, of the 49 commodities reported by the US Bureau of Mines, 29 had higher outputs and 39 had increased values. While production statistics may seem encouraging, government regulations continued to stifle industry efforts to develop needed new capacity. A case in point may be publication of the Environmental Protection Agency's simplified procedure to streamline five permit programs by consolidating them into one. The five included: hazardous waste management, national pollution discharge elimination, dredge and fill, underground injection control, and prevention of significant deterioration. The new procedure, published by EPA in the Federal Register, took 149 pages. AMC's J.A. Overton, Jr., noted that (MCJ, Nov. 1979, p. 39) to visually depict the complexity of the proposed regulations, Sell Oil Co. developed a flow chart mapping a path through one section. The chart required 10 days to map and two weeks for two draftsmen, using computerized drafting techniques, to plot the results. Overton said, "Perhaps the greatest service EPA has performed in preparing its proposal is to demonstrate again that federal regulations have become a complexity compounded by confu¬sion that culminates in a conundrum." While regulatory agencies promulgate new regulations, the lack of a cohesive government minerals policy remained a matter of significant importance to mine management. A non-fuel minerals study to provide input to the Administration for a national minerals policy program was a dismal shock, according to Rep. Jim D. Santini (D-NV). He said the first phase of the program, which was to identify industry problems, failed to come to grips with the hard decisions necessary regarding these problems, their impact, and their interrelationship. Santini said the report failed to acknowledge government's role in the process and absolved the government of any adverse influence on the domestic minerals industry. In response to the phase one report, eight senior mining executives testified before Santini's House Subcommittee on Mines and Mining concerning mineral supply, access to foreign sources, environmental protection, conservation and recycling, national security, and capital formation. By year's end, Rep. Santini promised to prepare a hard-hitting committee report on problems affecting the non-fuel minerals industry to provide a better base for subsequent policy recommendations (MCJ, Jan. 1980, p. 34). On the technological front, interest again centered on mechanization, automation, and scaleup to improve and expand production. Computer use increased for calculation of ore reserves, mine planning, operations research, and mineral processing.

Jan 5, 1980

By William Hustrulid

INTRODUCTION The Idarado mine lies high in the San Juan Moun¬tains on the divide between the Uncompahgre and San Miguel Rivers and consists of a consolidation of a number of old and prominent mining properties through which course some famous and very produc¬tive veins. Among the better known are the Smuggler, Tomboy, Montana-Argentine, Black Bear, Liberty Bell, Virginius, Flat, Barstow, and Japan, as well as many others. Most of these veins have been extensively mined over the past century and in the last three decades the Montana-Argentine and Black Bear veins have been the backbone of the Idarado mine; therefore, the descrip¬tion of the veins is limited to them. Access to the mine is through either the Treasury tunnel, whose portal is below Red Mountain Pass on US Highway 550 at an elevation of 3244 m (10,643 ft), or the Mill Level tunnel entrance 3.2 km (2 miles) east of Telluride, CO, at an elevation of 2761 m (9060 ft). The Treasury tunnel intersects the Black Bear vein 2643 m (8670 ft) from the portal and the Mill Level tunnel intersects the Argentine vein 2179 m (7150 ft) from the portal. Mining is by shrinkage stoping from slusher sublevels. The size of the scope blocks varies somewhat, but the standard size is 67 to 76 m (220 to 250 ft) long and 61 to 76 m (200 to 250 ft) high. The mine ranks either first or second in Colorado in yearly production of gold, silver, copper, lead, and zinc. It is 9.6 km (6 miles) from the Red Mountain plant to the Pandora plant, via interconnecting drifts and raises. There are engineering offices at both plants as a matter of convenience. The Red Mountain plant in¬cludes the company general offices, warehouse, carpen¬ter and machine shops, and mine change room. The Pandora plant consists of the mill and assay office, ma¬chine shops, and mine change room. The flotation mill has a capacity of 1632 t/d (1800 stpd), making a bul¬lion product and separate concentrates of lead, copper, and zinc. HISTORY OF THE MINE The Montana-Argentine vein was first extensively worked by the Tomboy Gold Mines Co., Ltd., a British concern. This company mined the stoped areas above the Ophir level between 1910 and the late 1920s and most of the stoped areas above the 2100 level between 1900 and the late 1920s. Gold was the principal ore metal mined. The area between the Revenue and Ophir levels was mined chiefly by the Revenue Mines Co. between 1900 and 1910. The ore was worked from the Revenue tun¬nel, which portals in Canyon Creek. Gold and silver were the chief metals recovered. The stopes between the 1700 and Revenue levels, as well as some higher stopes, were mined by Telluride Mines Inc. during the 1940s. The Mill Level tunnel was driven by that company from 1945 to 1948. Lead and zinc then became economically more important than the precious metals. In 1953, Idarado purchased Telluride Mines, which merged with the parent company in 1956. The Black Bear vein was first extensively worked by the Black Bear Mining Co. in the 1900s and by the Colorado Superior Mining Co. from about 1914 until snowslides at the mine camp [altitude 3750 m (12,300 ft)] terminated the company's operations in 1924. Leasers operated at intervals until 1934. The Treasury tunnel, formerly the Hammond tunnel, had been started before 1900 and reached the 1646-m (5400-ft) mark early in the 1900s, at which time activity lagged until the late 1930s. In the early 1940s, Idarado extended the Treasury tunnel from its heading at 1646 m (5400 ft) to the Black Bear vein and established a raise connec¬tion with the 600 level, the lowest level in the old mine. Since completion of initial work in the mid-1940s, systematic development of the mine, both in the driv¬ing of new headings and the utilization of older open¬ings, has resulted in the present extensive network of workings. GEOLOGY Introduction The oldest rocks of the area are the Precambrian metamorphic rocks, the Uncompahgre formation which are massive quartzites, some phyllites and slates, and dolomitic or limestone beds. West-dipping Paleozoic and Mesozoic strata lie on the Uncompahgre formation. These units are separated by a major angular uncomformity from overlying, essentially horizontal, Tertiary formations that include the basal Telluride conglomerate and several thousand feet of overlying volcanic rock. Intrusive rocks, mostly Tertiary in age, are common in the area, and are in the form of dikes, stocks, and sills. Dikes are very closely associated with some of the ore veins (Mayer). Description of Veins The Black Bear and Argentine veins range from 0.6 to 7.6 m (2 to 25 ft) in width, but in most places are 1.5 to 2 m (5 to 7 ft) wide. They vary in character from a well-defined tabular structure between sharp "frozen" walls, or gouge seams, to an irregular zone of quartz and quartz-sulfide stringers. Many gouge seams within the veins make the veins blocky and loose. Common gangue minerals in the veins include quartz, pyrite, rhodonite, chlorite, sericite, clay minerals, epidote, calcite, adularia, rhodocrosite, fluorite, and specularite. Quartz constitutes 60 to 70% of the veins and varies widely in character, ranging in color from clear through white, gray, and green, to amethyst. Chlorite, sericite, the clay minerals, and fine-grained quartz are common alteration products of the vein walls and of wall rock fragments in the veins. Epidote is an altera¬tion of the dike or, less commonly, of tuff-breccia. Calcite, adularia, fluorite, and rhodocrosite, which are wide¬

Jan 1, 1982

By D. F. Malott

The Michigan Department of State Highways makes extensive use of geophysics for subsurface surveying which would be applicable for uses in other fields. Examples of resistivity surveys are given which include a proposed large volume excavation with suggestions for land use after excavation, subsurface evaluation for engineering design, and a subsurface survey for land appraisal. An example of a combined refraction seismic and resistivity survey is shown where the resistivity is used for outlining the unconsolidated soils, while the seismic method Is used to outline bedrock and to evaluate it for rippability. A refraction seismic survey at the bottom of bridge caissons for evaluation of bedrock uniformity and a relative aid In assessing rock strength is reported.

Jan 1, 1968

By Victor E. Archer

INTRODUCTION Man is exposed to many agents which induce mutations in germ cells and/or cancer at work, at play, and at home. In this total mix of mutagenic and carcinogenic agents, how important are radon and its daughters? Before man moved into caves and other permanent dwellings, the principal mutagenic and carcinogenic agent to which he was exposed was natural background radiation--cosmic rays, radium and potassium-40 in his food, plus gamma rays and radon from the soil and rocks. When man moved into caves, captured fire, and began to preserve and store foods, his exposure to carcinogens and mutagens took a quantum leap. Carcinogens and mutagens appear to act in the same way, that is, by altering the DNA or nuclear proteins of cells. Most mutagens are carcinogens, and vice versa, so when I say mutagens from here on, I will be referring to both. The relationship of the two is emphasized by the fact that administration of a carcinogen to a group of animals not only increases cancer rates among the exposed animals, but also among their progeny (Tomatis 1979). Environmental Mutagens Smoke from man's fires, overheated foods, and foods preserved by smoking, resulted in ingestion and inhalation of many polycyclic aromatic hydrocarbons--many of which are mutagens. Caves and houses with tight windows and doors tend to collect the radon which is constantly emanating out of soil, rocks and concrete, so man's exposure to the radon daughter component of background radiation increased several fold. Preserving food by salting or pickling with material that contained nitrites and nitrates led to increased ingestion of nitrosamines, which are potent mutagens. When his grains and other foods were stored in slightly damp rooms, fungi or mold would grow on them. Several of these fungi are now known to produce very potent mutagens. The best known of these is aflatoxin B (Ramachandra 1979). It may seem strange that a living organism would produce a mutagen. One might think that it would scramble its own genetic heritage. The reason it does not is that it produces the mutagen in an inactive form. It can be activated only by an animal's enzyme systems after being eaten. When man moved into cities, the collective smoke from wood and coal fires further increased his exposure. That particular smoke has now mostly disappeared, but has been replaced by smoke from automobiles and industry. When man moved into the age of technology, his exposure to mutagens again increased dramatically. Many mutagenic chemicals, from benzene and beta naphthylamine to a long array of pesticides and tobacco products have been added to our environment. Excess deaths from cancer are now being observed among chemists in most industrialized nations. Mutagens are even found in much of our wine, beer, and whiskey (Keller 1980). Some of the chemical mutagens were widely used in food or in other commercial products before their potential was discovered. Striking examples of this is the original butter coloring agent and the polychlorinated biphenyls that have been widely used in brake fluids and electrical transformers. Large quantities of them have been discarded or disposed of in a careless manner--in such a way that many of them have contaminated our food, our ground water and air (Landrigan 1981). In this nation, with the help of several recent laws, we were just beginning to get control of the industrial chemical mutagens. With the relaxing of these laws that is currently going on, it appears that it will be many more years before we really bring chemical mutagens under control. Many nations have yet to come to grips with this problem. On top of this massive array of chemical mutagens we have now added radiation from many artificial sources. For most of us this means medical X-ray and fallout from nuclear weapons testing. Ionizing radiation is one of the most potent mutagens, so it has caught the public eye, and its contribution cannot be ignored. Fortunately, by the time we started using radioactive materials in quantity with the Manhattan Project, we had experience with radium and X-ray (some of it bad); we knew enough radiobiology and enough about methods of radiation protection so that most nuclear laboratories have had a phenomenal record of radiation safety. Radiation is one new technology with great potential for harm that has not exhibited that potential except for a few isolated situations like that of radium dial painters, uranium miners and atomic bomb victims. Uranium miners slipped into this list almost by accident. We could have protected our uranium miners just as well as we did the workers in nuclear laboratories; but we failed to do so. Why didn't we? The reason is simple. The Atomic Energy Commission was charged with protecting the health of their workers. They did not wait for a pile of bodies before they introduced controls. Congress appropriated the money, and taxpayers were willing to pay for the protection against radiation. Miners unfortunately did not work for the Atomic Energy Commission. Although mine operators were ignorant about radiation, the key item was that in the 1950s nobody was willing to pay the extra costs of adequate ventilation to control the high levels of radon and radon daughters in uranium mines. Control was not achieved until new laws and regulations were passed which made it compulsory. BIRTH DEFECTS AND CANCER

Jan 1, 1981

By Ashish Kumar Vishwakarma, Vivek Kumar Himanshu, Kaushik Dey

The accurate prediction of blast-induced ground vibration due to underground ring blasting is a prominent need for ensuring the safety of structures. Different site-specific empirical equations are available for the prediction of ground vibration. These empirical equations are best suited when the monitoring and blasting locations are present in the same medium. The change in the medium alters the behavior of wave propagation. Hence, existing empirical equations have limitations in peak particle velocity (PPV) prediction when the blasting location is an underground hard rock mine and the monitoring location is ground surface. This is because the underground metal mine comprises different levels having void in the form of excavated stope or paste-filled stope. It is very difficult to predict the magnitude of PPV on the surface in such instances. Therefore, this study has been carried out to predict the PPV at surface due to underground blasting. In this paper, PPV data was recorded at surface for 207-ring blasts. Furthermore, the PPV has also been measured at different underground locations for 47-ring blasts. Different empirical equations along with k-nearest neighbor (KNN) and random forest (RF) model of machine learning technique were developed for the prediction of PPV. Most of the empirical models have higher accuracy in the prediction of PPV at an underground location. This shows that scaled distance-based empirical predictors are best suited when the monitoring and blasting media are the same. However, the empirical models do not predict PPV accurately when the monitoring location is ground surface and the blast is conducted underground. The machine learning models are better suited for PPV prediction in such cases. Based on the analysis performed for the case study site, RF model predicts PPV at surface with the highest accuracy. The coefficient of determination and root mean square error for RF model used for predicting PPV at ground surface are 0.94 and 0.438 mm/s respectively. The RF-based model is also the best suited among all the models for predicting PPV at underground locations as well.

Apr 20, 2024

By Frank E. McCall, Michael A. Trevits, Fred Garcia

The U.S. Bureau of Mines investigated the influence of atmospheric pressure changes on methane gas migration through mine seals at a mine site located in the Pittsburgh Coalbed. The mine gained access to a coal reserve through part of an abandoned mine and constructed nine seals to isolate the extensive old workings from the active mine area. Underground problems were experienced when atmospheric pressure fell, causing methane gas to migrate around the seals and into the active workings. During mining operations, methane gas levels exceeded legal limits and coal production was halted until the ventilation system could be improved. When mining resumed with increased air flow, methane gas concentrations occasionally exceeded the legal limits and production had to be halted until the methane level fell within the mandated limit. To assist the ventilation system, a pressure relief borehole located in the abandoned workings near the mine seals was proposed. Preliminary estimates by a gob gas simulator (computer model) suggested that a 0.76 m (2.5 ft) diameter pressure relief borehole with an exhaust fan would be necessary to remove enough methane from the abandoned area so that the ventilation system could dilute the gas in the active workings. However, by monitoring methane gas emissions and seal pressure, during periods of low atmospheric pressure, the amount of methane gas that migrated into the active mine workings was calculated. Researchers then determined that a relief borehole, 20.3 cm (8-in) with an exhaust fan could remove at least twice the maximum measured volume of migrating methane gas. Because gas concentrations in the abandoned workings could potentially reach explosive limits, it was proposed that the mine eliminate the exhaust fan. Installation of the recommended borehole and enlarging two other ventilation boreholes located in the abandoned area reduced methane gas leakage through the seals by at least 63%.

Jan 1, 1995

By V. Rajaram, D. P. O’Connor, L. Sakamoto

In 1988, the Metropolitan Water Reclamation District of Greater Chicago (MWRD) imposed a no-blasting specification (blasting is restricted to the construction shaft and shaft bottom or boot) on the Deep Tunnel project. This was prompted by numerous complaints from residents in the vicinity of the project and controversies experienced on previous projects from blasting the rock overlying the tunnel. This paper will describe the methods used by two major contractors driving 20 km (12.5 miles) of tunnel, and drilling more than 36 shafts under this restrictive specification. The impacts are detailed on design, construction, schedule, cost and the environment.

Jan 1, 1993

By J. Lorosch

Improvement of current leaching technology was found necessary when processing ores which are more difficult to leach because they generate highly viscous, air-rejective pulps. Cyanidation of these pulps has to run at low oxygen concentrations if the conventional aeration technique with compressed air is used. Since the dissolution rate of precious metals mainly depends on the concentration of dissolved oxygen in the pulp [1, 4, 5], the kinetics of the gold extraction become slow in such cases, which in turn often leads to a significant decrease in the overall gold output within the conventional leaching time of up to 48 hours.

Jan 1, 1988

By E. J. Mayhew

Bentonite and newly discovered deposits of sepiolite, saponite, and hectorite are now being processed and marketed from the Amargosa Valley of Nevada. All of these deposits are large. The bentonite has been known for decades and is the whitest known. The only other sepiolite deposit is in Spain. The only other commercial hectorite deposit is at Hector, California. No other saponite deposit is known. All the components except bentonite are hydrous magnesium silicates. The bentonite is mixed layer Na-Ca. All the materials have characteristics unique to their locale and type, such as high yield point for drilling muds and liquid suspending agents. The sepiolite has geothermal stability. Figure 1.

Jan 1, 1979

By W. H. Wilson, G. Bjarnholt, D. C. Holloway

This paper describes the results of field tests conducted on a 5x25m bench face to evaluate several new concepts for improving smooth wall blasting. These ideas involved the use of notched boreholes to direct the fractures and unconventional types and placements of explosives. The notches were made with a mechanical broaching tool, a water jet and with shaped charges. Borehole pressures were measured with an inexpensive and expendable pressure transducer developed for this program. The testing showed that at hole spacings 38% greater than normal practice, notched holes with half the normal loading density produced equivalent results.

Jan 1, 1986

By ANDREW HOBERT, Maoming Fan

Low-cost and environmentally friendly green froth flotation modifiers of plant origin, such as guar gum, carboxymethyl cellulose (CMC) and starch, have been used in the flotation of some sulfide and nonsulfide minerals. This paper discusses the fundamentals, current applications and potential new applications of guar gum, CMC and starch in minerals flotation. In this study, improved flotation performance was achieved using some green modifiers in flotation columns.

By James E. Friant

The technology applied to shaft sinking has lagged far behind other construction activities. While surface oriented construction and mining have made great strides with new processes and equipment, the majority of shafts sunk currently still follow a drill, blast and muck-out cycle developed in the 16th century. Today, in 1979, the shaft sinking industry is in the midst of its own private industrial revolution. Millions of dollars are being spent annually by industry and government alike to spring the art of shaft sinking into the 20th century. The objective of this paper is to review a few of the newest mechanized schemes for shaft sinking. This is not a theoretical review, however, but a practical one, and deals only with hardware and projects which are currently on jobsites. Figure 1 shows the equipment. On the left is the 241SB 184, a 24 foot diameter blind shaft borer. This machine is currently at about 200 feet, constructing a coal mine shaft in Alabama. It is built and utilized in a manner similar to a tunnel borer. In the upper center is the 1211SR, a 12 foot diameter blind shaft reamer. This machine follows a 6 foot pre-drilled blind pilot hole, and is at work in Chicago. On the upper right is the 121BR, a powerful new blind drill. Just below it is the conical drill head for the 121BR which can utilize either carbide or standard disc cutters. At the center bottom is an expandable back reaming head which can be used to enlarge a drilled shaft up to a maximum of 16 feet diameter, or can be used to produce a shaft having several diameter changes. This equipment is also in use in Chicago.

Jan 1, 1979

By Dan Swidrak, Bill Zietlow

Halfway through a 17,770-ft long stormwater tunnel, an 11-ft diameter TBM encountered a karst void below the Mississippi River in Missouri, resulting in significant inflow. It was decided that the TBM could not safely advance without external intervention. Low-mobility grout was pumped from the surface. A rescue shaft was constructed and a conventional tunnel with spiling support was mined back to the machine. The TBM was removed and a 14-ft diameter TBM equipped with probing drills was relaunched. Probing from the new TBM encountered one additional karst feature but the machine advanced after grouting and successfully completed the tunnel.

Jun 23, 2024

By J. R. Heberger, B. H. Ngo

The Safety Pays in Mining v2.0 web application, developed by the National Institute for Occupational Safety and Health (NIOSH) Mining Program, helps mines determine the potential costs associated with mining injuries. This web app categorizes injury cost by part of body injured, by the cause of the injury, or by the nature of the injury. When the user selects one of over 150 common types of mining injuries, the app provides information on the distribution of costs of workers’ compensation claims for that type of injury. Based on other user inputs, Safety Pays in Mining v2.0 will estimate the total costs of the selected injuries and the estimated impact of total injury costs on mining company profits and will provide some examples of services and personal protective equipment on which companies could spend the savings that result from the prevention of injuries. This paper reviews the Safety Pays in Mining version 2.0 web application by discussing the development and updates to the app, how it is used to show the true costs of mining injuries, and how mines can benefit from using this app.

Feb 1, 2024

By Lewis L. Oriard

The authors outline the development and application of blasting methods put into use 11 years ago at the Berkeley Open-Pit Mine, Butte, Montana. The blast design uses a very short delay (5 milliseconds) between detonation of explosives charges, a feature challenged several times in principle despite its success for Anaconda. Concern is expressed over the categorical rejection of very short delay blasting which can make the difference between success and failure of major mining operations. There is ample evidence to show that the method can be used successfully and not violate the concerns of the public.

Jan 1, 1980

By Robert W. Burns

Gentlemen, my subject today is glass reinforced plastics. By definition, this encompasses a wide variety of materials: at least a half dozen basic varieties of polyester, epoxy, and phenolic; virtually infinite compounding variations within the basic groups: literally limitless variations in the amount and the nature of the glass reinforcing. Complicating all of this is the fact that different modes of application of the same material fall appreciably alter' the product's general strength and suitability. These many, many differing materials are what we conveniently call "glass reinforced plastics" or, more simply, fiberglass". This common name is actually a large part of the problem when dealing with fiberglass materials. Far too often a specification is written calling for simply "fiberglass reinforced polyester', based on successful prior use of a polyester laminate. Such a specification is very nearly worthless since such tremendous variation is possible under it. Success of a laminate furnished under such a specification is entirely dependent on good fortune

Jan 1, 1962

By S. D. Thompson

Several discrete-event simulation models have been developed for designing the conveying system capacities of underground coal mines. Most of these models require the use of a step-function approach to mimic the loading process at each conveyor loading point. Over the years, practitioners have generally employed one of three versions of the step-function approach. An important issue is how these three versions compare to each other in terms of simulated capacity requirements for belt conveyors. Another is-sue is how they compare to peak capacity design. This paper addresses these issues by statistically and quantitatively comparing their simulation results. The consequences and problems associated with using each version are also discussed and summarized.

Jan 1, 1997

By C. C. Jobes

Operating large face equipment, such as continuous mining machines, is one of the most basic and most dangerous elements of an underground coal mining operation. The operator usually performs cutting and tramming tasks in a restricted workspace with reduced visibility. During the execution of these tasks, operators often cannot see all of the locations needed to safely operate the continuous mining machine (CM ), which has sometimes resulted in accidents. In an effort to prevent these accidents, researchers at the National Institute for Occupational Safety and Health (NIOSH), Pittsburgh Research Laboratory, examined the continuous mining machine operator?s current information cues, or visual attention locations, so that risk of injury relative to the task, equipment and workplace environment can be evaluated in the future. The eventual goal is to develop interventions to enhance the information cues, and thereby increase the safety and health of machine operators. This paper details the operator interview process, determination of visual attention locations (VALs) and simulation of various mining scenarios.

Jan 1, 2011

By P. Saunier, S. Fourmont, R. Stafford, A. Jung, J. Mlynarek

The safe and economical storage of tailings generated by modern day mining operations is possibly the single largest challenge faced by miners today. By nature, tailings are a waste product that have little to no economic value. Yet, their physical and chemical contents can pose incredible environmental hazards if not stored correctly. The variety of factors that are met when designing Tailing Storage Facilities (TSFs), means that in most cases, a low-cost solution is sought to accomplish storage, meet environmental regulations, and adhere to industry best practices. TSFs can be large dam face structures or smaller structures like retention/evaporation lined ponds. Water management is potentially the single largest factor that miners and designers must contend with when constructing a TSF. Water is a necessary component in the process of extracting ore but can be difficult and expensive to remove once it is mixed with solid tailings particles. As a result, the most common disposal of these water containing tailings, called a slurry, is to simply discharge into an embanked TSF (Vick, 1990). These structures, just like any other water retaining dam, can breach releasing contents downstream. Despite modern advancements in TSF design, there have been numerous dam failures that have resulted in tragic loss of life and ecological devastation. Most notably in the last decade, the Brumadinho and Mariana Dam disasters in Brazil killed 278 people in downstream communities when TSF dams failed in 2019 and 2015, respectively (Rotta at el., 2020). Similarly, in 2014, the Mount Polley tailings spill in British Columbia was the second largest tailings spill on record and caused extensive damage to adjacent watershed ecosystems when the TSF embankment was breached (Byrne at el., 2018). While there were indeed numerous unique and underlying factors present in each of these structural failures, a shared element in the devastation was the large-scale release of unstable liquefied tailings

Mar 2, 2022

By D. M. Sloan

While surety capacity for the mining industry continues to shrink, States are demanding greater financial certainty for closure/post closure obligations. To combat these demands, larger mining companies are pursuing a Mining Surety Reinsurance Program that requires a significant up front capital contribution. This paper outlines an alter-native program for middle market mining organizations. The program utilizes a “Blended Finite Risk” environmental insurance solution with surety acting as the “front” in states where insurance is not an acceptable form of collateral. Marsh proposes creating separate programs for each State requiring surety. The reason for separate programs stems from each states’ different surety rules. Insurance companies typically require at least $5 million in future value remediation liabilities for finite risk programs. Since most middle market mining companies have obligations that fall below this threshold, the Blended Finite Risk Program contemplates combining several companies closure/post closure liabilities to accomplish the minimum amount required by the insurance company. Why use a Blended Finite Risk Program? One of the primary benefits is the financial assurance that funds will be available for planned remediation. For example, the financial assurance may be required by a government agency. The certainty may help facilitate a merger or acquisition. Additionally, the funds may be part of a CER-CLA PRP settlement. In all cases, the insurer providing coverage would be a secure independent 3rd party. A Blended Finite Risk Program also provides a long-term solution – up to 30 years and in some select cases longer. The benefit to a state or the BLM is the removal of financial uncertainty. An insurance company writing the policy would have an AA or AAA balance sheet. The hardening of surety markets coupled with the tightening of financial assurance requirements in many states have necessitated the posting of 100% collateral. This program substantially reduces these collateral requirements.

Jan 1, 2004