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Rare-earth permanent magnetic roll separators, pioneered by our group a few years ago, have distinctly different operation characteristics compared to prior art electromagnetic separators of various types. Many new applications for dry high-intensity (or better: high-force) magnetic separation have been developed in a short time period. It has also been found that the new generation of separators generally are more efficient with regards to removal of weakly magnetic contaminants in glass and ceramic raw materials with minimum loss of valuable product compared to induced magnetic roll (lMR) separators. The latest development is in the area of production of clean magnetic concentrates at high recoveries. It is likely that the PERMROLLR magnetic separator will replace cross-belt and lift-type magnetic separators as a result of this most recent advance.   The paper will review the features of the PERMROLLR magnetic separator in comparison with other types of magnetic separators on the market and give examples on applications.

Jan 1, 1990

By M Castello, P Bouchard, M Sabsabi, A Blouin, B Nguegang Kamwa, M Constantin, K Fytas, M Laflamme, K Rifai, F Vidal

Canada’s Quebec province operates 26 metal mines, 19 of which are producing gold and generating over C$1.8 billion (US$1.3 billion) annually. In all those mines, numerous samples of rock are collected and analysed daily in laboratories in order to determine their gold content. However, laboratory results are generally available within 48 hours of sampling (depending on the number of samples received by the laboratory and the priority of the results), thus potentially slowing down mining activities. In an attempt to find a solution for delayed laboratory results, Laval University, in partnership with the National Research Council Canada (NRC), the National Institute for Scientific Research (INRS) and four mining companies (Agnico Eagle, Canadian Malartic, Hecla Québec and Iamgold) have launched the Laser-Induced Breakdown Spectroscopy (LIBS) project for in situ real-time mining sample analysis. This work aims to minimise the amount of LIBS point sampling necessary to be representative of a full scan of the analysed area. Eight sampling patterns are investigated. A statistical analysis of the data was performed by varying the pattern steps. Results show that two of the patterns, 1 and 5 (single diagonal crossing the stratification of the samples with opposite slopes) minimise the amount of point sampling while remaining representative. The most successful results are obtained from steps which are greater than 6. In terms of the type of material, pattern 5 and steps 9 are better for core sampling, while pattern 1 and steps 8 are better for rock sampling. The geological explanation for these results is the heterogeneous distribution of gold in the sample which seems to be more homogeneous in the rocks than in the core sample due to the small rock size. In terms of the mineralisation, pattern 5 is better for mixed sulfides and quartz veins, and steps 8 and 9 are better for quartz veins.CITATION:Nguegang Kamwa, B, Rifai, K, Laflamme, M, Constantin, M, Castello, M, Vidal, F, Bouchard, P, Fytas, K, Blouin, A and Sabsabi, M, 2017. Sampling strategy by statistical analyses of LIBS data in the context of a portable gold analyser, in Proceedings Tenth International Mining Geology Conference 2017, pp 221–232 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 20, 2017

By Larkin F, Farrer E, McGhie R. R

The Electrolytic Zinc Company of Australasia Limited commenced productive operations during February, 1936, at the- Rosebery and Hercules mines, which are situated near Rosebery, Tasmania. At this time it was decided that before re-organizing the steel sharpening shop a test should be made of the relative merits of conventional drill-steel and detachable bits. For this purpose Ingersoll-Rand type"I" thread centre hole.jackbits were selected and seventy-two of these were tested against conventional steel. Results indicated that, under the conditions pertaining at these mines, j ackbits should prove more economical than conventional drill-steel bits, and that a large-scale test, under working conditions, should be made. This was done by gradually replacing conventional drill-steel with jackbits at the Rosebery mine. Results were satisfactory and by the end of 1936 both mines were using only the jackbits.

Jan 1, 1939

The ore milled from the Lead Lode of The Zinc Corporation leases consists of a fairly granular mixture of galena, marmatite, chalcopyrite, tetrahedrite, pyrrhotite, pyrite, and lollingite with a gangue association of calcite, quartz, bustamite, rhodonite, mangan-hedenbergite, garnet, fluorite, mangal1o-calcite and apatite. The silver content of the ore occurs in three minerals-tetrahedrite, dyscrasite, and pyrargyrite, the last two mentioned occurring in microscopic association only. Other metallic and gangue minerals are also present in this complex mineralogical association, but do not influence the milling operations. Fortunately, the silver minerals favour the galena and chalcopyrite as their host minerals, thus facilitating the recovery of both copper and silver in the lead concentrate. The ore from the Lead Lode assays from 14-18% lead; 3·0-4·5 oz. silver per ton, and 9·5-12·0% zinc.A parallel lode, known as the Zinc Lode, is well developed in The Zinc Corporation leases. This lode assays from 6-8% lead, 1·5 oz. silver per ton, 18-25% zinc with a siliceous gangue. The common Lead Lode gangue minerals-ealcite, rhodonite, bustamite-are very rare in present underground exposures. No metallurgical work was done on this ore during the pilot plant operations.The aim in the milling process is to produce: 1. A lead concentrate with the maximum economic recovery of lead, silver, gold, copper and antimony, and minimum zinc content.2. A zinc conc,entrate with the maximum economic recovery of zinc, cadmium, and cobalt, and minimum iron, arsenic and fluorine content.3. A waste residue containing sufficient granular material to be utilized as underground fill.In considering the economics of the milling practice the above three requirements plus consideration of the tariffs submitted by the purchasers of concentrates were the deciding factors in the evolution of the present milling practice.Towards the end of 1924 The Zinc Corporation Limited added to and adapted the old zinc tailings plant for the treatment of 5,000 tons of crude ore per week. This plant, which operated until January, 1936, was in general principles similar to the standard Broken Hill methods of ore concentration, whereby the galena was recovered by the gravity concentration methods of Hgging and tabling with selective flotation concentration of the residual galena and marmatite. One important difference from other Broken Hill plants was that the primary grinding of the jig tailing was performed with flint-loaded mills operating in closed circuit with revolving screens. Two primary grinding sections were installed, each...

Jan 1, 1941

TSL Concepts and Practical Examples of the Non-Reactive System - Meyco TSL 865 Thin Spray-on Liners (TSLs) have been intensively investigated by mining and chemical industries within the last decade. Apart from the basic concept of spraying thin liners, expectations of the product's performance vary, eg immediate active strata support is seen as a key to control the ground permanently. For many coal mines this is an important factor to reduce maintenance in their roadways and enable permanent production from the long wall. In opposition to a passive mesh system this technology offers immediate active support to the strata. But not only coal mines are interested in TSL technology, there are potential applications in hard rock mines, during shaft sinking, pillar support and as an anti-weathering sealant. This paper will explain the advantages and disadvantages of TSL concepts; it will give examples of successfully applied TSLs with a main focus on the non-reactive and flexible system MEYCO TSL 865 by BASF. Furthermore, it will indicate the limitations and discuss briefly the bearing capacity and reasonable lab testing of such systems.

Nov 25, 2010

Comparison of Industrial Cyanide Destruction Processes

Sep 13, 2010

By P Paredes, T Leaño, D Gajardo, C Tramón, S Peñaloza

The definition of an ore handling system and its consequent layout design is of crucial importance in cave mining projects. It not only represents the main driver in the production capacity and reliability of the mining system, it is also a fundamental variable in the footprint’s development time and cost.In recent decades, load-haul-dump (LHD) tramming distance optimisation through the allocation of several orepasses inside the footprint has been the most common practice in ore handling system layout definition at Codelco’s operations. Today, the improvement of existing technology, such as higher-capacity LHDs and jaw-gyratory crushers, and intensive preconditioning techniques to improve fragmentation allow the conceptualisation of simple and highly productive ore handling system layouts for wide caving areas that avoid the complexity and high cost of developing numerous orepasses inside the footprint.The initial macroblocks of the Chuquicamata underground mine project (PMCHS) consider an ore handling system layout in which LHDs dump into orepasses located inside the footprint area. The ore is then transferred into crusher chambers located below the production level, where it is crushed by jaw crushers and then conveyed to surface. In an effort to reduce development time and costs, a new ore handling system layout for the PMCHS experimental macroblocks was engineered using improved technologies and techniques in a simpler mining system. This paper compares the new ore handling system layout for the project’s experimental macroblocks with the traditional LHD-orepass layout in terms of production capacity, reliability, development time and cost.CITATION:Paredes, P, Gajardo, D, Leaño, T, Peñaloza, S and Tramón, C, 2016. Simplifying the ore handling system through the use of current technology at Chuquicamata underground mine project, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 571–584 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

Solvent extraction has recently been introduced into Australian hydrometallurgical practice for the production of a high grade uranium concentrate from El Sherana ore by a sulphuric acid leach and solvent extraction process. The solvent is a 5 per cent solution of tri(iso-octyl)amine in kerosene modified with 4 per cent of a long chain alcohol. The stripping reagent is a molar solution of sodium chloride.Preliminary testing for the development of the process showed that the leach liquor was quite amenable to the solvent extraction process and that the equilibrium and rate considerations of both the extraction and stripping steps were very favourable.The industrial plant contains four stages of extraction, three stages of chloride stripping and one stage of secondary carbonate stripping. An internal type of mixer-settler is used for the stagewise contact, the design being based on tests with model equipment.The performance and control of the industrial plant is satisfactory; 99·7 per cent of the uranium is recovered for a loss of 0·3 gallons of kerosene and 0· 4 pounds of amine per 1,000 gallons of liquor treated.INTRODUCTIONThe processing of El Sherana uranium ore from the South Alligator River valley commenced in April, 1959, and thereby introduced into Australian hydrometallurgical practice the unit operation of solvent extraction on an industrial scale. Although there are now some twelve mineral processing plants in the United States and Canada using solvent extraction, its application to the field of primary hydrometallurgy is quite new. Prior to 1956 none of these twelve plants was operating and hydrometallurgical application waslimited to the refining of comparatively high grade uranium compounds and fission products from nitrate and nitric acid solutions.

Jan 1, 1961

By Shepherd J

Megascopic and microscopic studies of cleats and mining induced cleavage in Ihe first workings at Leichhardt Colliery reveal the presence of four distinct fracture sets. Microscopic studies confirm underground observations of the fracture sets.The most likely order of formation of the fractures is (i) "butt" cleats (ii) facc cleats (iii) shallow dipping faults (iv) mining induced cleavage. Three fracture sets apparently formed by tensiIe failure. Microscopy shows that the mining induced cleavage surfaces have preferred starting or lerminating points at the extremity of a "butt" cleat and a vitrite-dull coal band boundary. It is postulated that the induced cleavage begins at 'butt' cleats which behave as Griffith flaws under high compression around Leichhardt Colliery faces. Instantaneous outbursts of coal and gas are associated with only those workings which are affected by mining induced cleavage and occur at or adjacent to working faces.

Jan 1, 1981

By J Ramezani, K Faure, N Mortimer

Western New Zealand can be regarded as a rifted continuation of eastern Australia. Detailed studies of units previously considered to have trans-Tasman correlations are being undertaken within the FRST Programme Mineral Wealth of NZ and its EEZ to test specific connections, and thus add to the exploration framework of NZ. Correlation of two major episodes of granitic magmatism are currently being investigated. These represent the oldest (mid Paleozoic) and youngest (Early Cretaceous) magmatic events that conjoined Australia and New Zealand are believed to have in common.

Jan 1, 2007

By Miller F. S

The famous Golden Mile of Kalgoorlie in Western Australia was, between 1888 and 19ft, one of the richest and most important gold camps in the world. Annual production, which reached a peak of nearly 1,300,000 oz. in 1903, however dropped to below 400,000 oz. after 1920.Depression seized the camp, and many mines closed down. The output from this old field is now steadily mounting under the stimulus. of a higher price for gold. In 1935 300,000 oz. of precious metal were recovered and the future is bright. Total production from the field is 21,400,000 oz., whereas something like £23,600,000 have been paid in dividends.The Golden Mile has been studied by many geologists. Their somewhat diverse findings were published for the most part in the Australian technical press which, unfortunately, is not sufficiently represented in foreign libraries.The following article is based on an eighteen months' study in the district for Gold Mines of Kalgoorlie Ltd., preceded by four years' experience with almost identical rock types in the, Porcupine district of Ontario. The excellent record of observed fact left by previous invesigators, augmented by talks with observant mining men...

Jan 1, 1937

By P Maillet, A J. Crawford, S M. Eggins

TheFiji Islands are remnants of a once continuous Solomon-Vanuatu-Fiji-Tonga volcanic arc (the Vitiaz arc), located at the boundary between the Indian-Australian and Pacific plates. They record a history of: (i)                  arc volcanism the late Eocene to late Miocene, (ii)                an extensive magmatic response to arc rifting (5.5 - 3.0 Ma) during which volcanism was dominated by shoshonitic to tholeiitic basalts, and as rifting continued, (iii)               a transition from arc to intraplate volcanism.   The Hunter Ridge-Hunter Fracture Zone separates the inactive South Fiji Basin from the actively spreading North Fiji Basin, and has been considered to be a transform zone, almost parallel to the motion vector of the Australian plate. However rocks dredged during the 1993 æAlizeÆ cruise, from along the northern part of the Hunter Ridge are typical arc tholeiites, and therefore demand that subduction has occurred beneath the Hunter Ridge sometime during the last ~5 Ma. The Kadavu Island group, south westernmost Fiji, lies at the north-eastern end of the Hunter Ridge-Hunter Fracture Zone, and possibly results from oblique subduction of South Fiji Basin oceanic crust, which may have accompanied the anticlockwise rotation of Fiji during opening of the North Fiji Basin. These islands consist dominantly of 3.4 - 0.5 Ma old medium-high K andesites and dacites, with many traits typical of subduction-related volcanics, ie predominance of intermediate members (55 - 65% SiO2) no Fe enrichment, TiO2<1%, and negative Nb-Ta anomalies. These features contrast strongly with volcanics from elsewhere in Fiji around this time, where volcanic centres produced Om-like intraplate olivine basalts. The Kadavu Islands become gradually younger to the southwest, and show a significant decrease in K2O with time. The north easternmost islands (Astrolabe islands) containing the oldest rocks (~3 Ma) have shoshonitic affinities and are considered to be of similar age and composition to the youngest shoshonites found elsewhere in Fiji.

Jan 1, 1995

By D Atheis, S Williams, A Dance, D Taplin

"Resurrected from its former life at the Big Bell operation, the grinding circuit at Evolution Mining’s Edna May operation in Western Australia has many a story to tell. The task of optimising a plant designed for another orebody provides as many challenges as opportunities. Initially faced with a blend of primary and oxide ore, the circuit achieved in excess of 320 t/h until the oxide was depleted, leaving only the much harder primary feed.The 2.0 MW semi-autogenous grinding (SAG) mill and 3.7 MW ball mill were assisted by a 150 kW pebble crusher, but the power limitation of the SAG mill resulted in a drop in throughput. Edna May personnel have been involved in a number of progressive improvements to restore the design capacity of the concentrator and work towards 3 Mt/a or even higher ahead of the gravity and leach recovery circuits.These improvements include: a crush forward configuration of the SAG mill scats partial to full secondary crushing variable speed drive upgrade of the SAG mill lifter and grate design changes ball mill circuit grinding efficiency.This paper summarises the chronology of events that has resulted in significant improvements in throughput by conventional (and in some cases, novel) methods of reconfiguring the existing grinding mills. Lessons learned and hindsight perspectives will be summarised, sharing this educational experience with other operations in a similar situation.CITATION:Dance, A, Atheis, D, Williams, S and Taplin, D, 2014. Grinding circuit improvements at Evolution Mining’s Edna May operation, in Proceedings 12th AusIMM Mill Operators’ Conference 2014, pp 63–70 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Sep 1, 2014

By H Aral

A rotating magnetic field can be produced in a magnetic separator by using a magnet rotor fitted with alternate north-south magnetic poles, similar to the rotors currently used in modern eddy current separators. Rotation of the magnetic field causes ferromagnetic particles to rotate during magnetic separation. The particle rotation can then be used simply to remove entrapment during a conventional attraction magnetic separation (RMF lift separation), or it can be used to roll particles away from non-rotating particles, and to move them out of the separator under their own rotation (RMF rotation separation). RMF (rotating magnetic field) separation is a separation for ferromagnetic particles. These particles have a very ordered magnetism that is locked into directions of easy magnetisation in the crystal. As a result, if the external field rotates, the particles attempt to rotate with it. RMF separation uses this fact to rotate the ferromagnetic particles in a rotating field. In contrast, paramagnetic particles have a magnetism that can point in any direction with almost equal ease, and these will not rotate in a rotating field. By making use of this difference in magnetic properties, RMF rotation separation can separate ferromagnetic particles from paramagnetic, even when the particles have similar susceptibilities. Some particles such as both chrome spinel and ilmenite can contain ferromagnetic regions within a paramagnetic matrix. These ferromagnetic regions can vary from very small regions dispersed throughout the crystal, through thin lamellae, to larger more bulky regions. Although most natural ilmenite is ferromagnetic and generally has a higher magnetic susceptibility than paramagnetic chrome spinel, the susceptibility ranges for the two minerals overlap considerably (Allen, 2000a) due to the presence of these ferromagnetic elements, frequently making the conventional magnetic separation of these two minerals impractical. It is known that roasting a mixture of ilmenite and chrome spinel particles increases the magnetic susceptibility of the ilmenite while leaving the spinel susceptibility substantially unchanged. This makes the use of conventional (susceptibility attraction) magnetic separation more practical for the separation of these two minerals. However, very little is known about the effects of roasting on the response of ilmenite and spinel particles to a rotating magnetic field. For example, although the optimal ilmenite roasting conditions for conventional magnetic separation are quite well established such conditions may or may not be optimal for RMF rotation separation. Low intensity conventional magnetic separation on the basis of magnetic susceptibility can be made more accurate if it is carried out in a rotating field, because the rapid spinning of the separating particles prevents the formation of magnetic flocs, and reduces entrapment and entrainment. Medium intensity RMF rotation-only separation (no attraction component) has the ability to separate rotating (ferromagnetic) from non-rotating (paramagnetic) particles, irrespective of their relative magnetic susceptibilities. RMF rotation separation is of particular interest in this case because ilmenite particles generally rotate much better than the mainly paramagnetic chrome spinel particles, and roasting could enhance this difference further. Further information on the use of RMF to separate minerals can be found in Allen (2000a; b and c). The aim of this series of tests on a number of Australian ilmenites was to compare some different oxidising and reducing roast methods and to establish whether the use of RMF rotation separation improves the chrome spinel rejection.

Jan 1, 2001

The term slag has been used to define a wide variety of material including mine spoil and slag produced at steel plants. The present paper is concerned only with the non-metallic alumino-silicates developed simultaneously with iron in blast furnaces.The control of iron quality by slag has long been appreciated but here aspects of slag control based on concurrent iron production are indicated. Consideration is given to the basic composition of slags relative to the type of allotrope required. Up to a point, the plant conditions, under which a particular slag type is processed, have some effect, but these conditions only widen the range of a given allotrope.They do not convert one slag type into another. The nature of the slag types and experiments with additives to convert one slag type into another are discussed.The various uses for allotropes of blast furnace slag are considered.Their use in air cooled slag, foamed slag, slag wool, cements, soil stabilization, glass bottles, and building bricks and blocks, is explored in some detail.INTRODUCTIONWithin recent memory, blast furnace practice has been solely concerned with the production of iron. The slag make at this time had not reached embarrassing proportions. In Britain, unlike Germany, no legislation existed to prevent the growth of unsightly slag banks. Generally slag found limited use as fill and road material in the immediate plant vicinity. This is broadly the case in Australia today. In Europe and America, where the slag make is of the order of several million tons annually, the room problem and the cost of dumping slag has stimulated commercial and scientific research on the disposal problem. Currently, most iron plants in Europe can profitably dispose of at least 95 per cent of their slag make.

Jan 1, 1964

By W Polkowski, M Tangstad, M Wallin, J Jiao

Fe-26Si-9B (wt per cent) alloy has been identified as a potential high-temperature phase change material (PCM) due to its attractive properties, such as its high latent heat of fusion and low volumetric change during solid/liquid transition. For the successful utilisation of this alloy into thermal energy storage (TES) systems, the development of a cost-effective production method is essential. Presently, the Fe-26Si-9B alloy is produced by mixing FeSi alloys with either pure boron element or FeB alloys. However, the use of pure boron is financially prohibitive, and the carbothermic reduction results in high greenhouse gas emissions and high energy consumption in the production of FeB alloys. In this regard, our study proposes a silicothermic reduction method to produce Fe-26Si-9B PCM by using FeSi alloys and B2O3-based oxides. Accordingly, the influence of various parameters on the production process was investigated, including operating temperature, holding time, B2O3 content in the added oxides, and initial Slag/Metal (S/M) ratio. Based on the experimental results, the optimal parameters for producing FeSiB alloys with over 9 wt per cent boron were determined. Consequently, it was documented that the FeSi alloys and the added oxides enriched with 50– 65 wt per cent B2O3 should be subjected to temperatures ranging from 1550–1650°C, maintain an initial S/M ratio exceeding 1, and ensure a holding duration beyond 1 hr. Moreover, the energy consumption of this process was estimated to be ~1.86 MWh/t metal and the mass loss was lower than 7 per cent. Therefore, silicothermic reduction offers a sustainable approach for producing FeSiB alloys with a boron content above 9 wt per cent.

Jun 19, 2024

By J D. St George

In this paper a laboratory investigation into the effect of confining stress, water content and gas desorption on coal permeability is presented. Of major significance is the effect of coal permeability on outburst occurrence and methane production, which is influenced by changes in stress. Test results indicated that the shrinkage of the coal matrix associated with desorption is greater than the coal matrix compressibility which will cause a reduction in the effective stress, hence increasing coal permeability.

Jan 1, 1998

By S S. Kanchibotla, E J. Sellers, L Julian, A Musunuri

Fume events in coalmines are typically associated with wet conditions, soft ground and deep holes. An ACARP research project used laboratory and field testing combined with literature reviews, numerical models and field investigations to characterise the influence of these conditions on the propensity for fume. This paper highlights the results for soft ground and wet conditions and proposes a proactive fume mitigation methodology. A simple numerical model is used to show how fume arises in soft rock that yields more under the loading of high-pressure, water-resistant explosive blends than for ANFO. The blends cool more rapidly after detonation into the lower temperature zone favourable for NO2 production. Low-pressure, high detonation temperature explosives are loaded or charged into soft ground. Water resistance must be considered because soft, faulted and fractured ground can lead to fume from degradation by water flow and non-ideal detonation of product in cracks.A suite of tests were developed to quantify ANFO and emulsion blend performance over time that can be carried out in a mobile laboratory on-site. Index tests such as viscosity measurement and water resistance in beakers are proposed to quantify long-term product performance because small components, such as surfactant, prill impurities and prill fines, contribute to inconsistent product performance. Water ingress experiments and detonation tests aligned with field investigations identified and characterised the role of groundwater in damaging ANFO and causing fume.Fume risk management is achieved using a proposed proactive fume mitigation methodology to characterise influences such as seasonal rain variation, groundwater flow hydrogeology, rock mass strength and structure well ahead of blast design. The design of blasts and selection of explosive products to consider expected conditions will reduce fume, improve efficiency in the mine and offer cost advantages.CITATION:Julian, L, Musunuri, A, Sellers, E J and Kanchibotla, S S, 2015. Mitigation of post-blast fume in soft ground and wet conditions, in Proceedings 11th International Symposium on Rock Fragmentation by Blasting, pp 511–518 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 24, 2015

By I Hustwick

New Zealand Steel Mining Limited operates two independent sand mining operations on the West Coast of the North Island of New Zealand. Waikato North Head 30 km south of Auckland supplies ironsand concentrate as the raw feed for New Zealand Steel's works at Glenbrook and Taharoa 70 km further south, exports ironsand concentrate to Japan.   Taharoa uses two sets of six low pressure Warman centrifugal pumps in series to load bulk ore carriers 3 km off shore through two underwater pipelines. Waikato North Head delivers the ironsand to Glenbrook 18 km through a 200 mm ID buried pipeline using two stages of high pressure positive displacement (HPPD) pumping.   A high level of operating and maintenance expertise has been developed since commissioning the two systems which are proving to be reliable, efficient and of minimal impact environmentally.

Jan 1, 1990

By R Razanatsimba, A Galli

A mining company has entered into contractual commitments to supply certain quantities of its product to clients in each time period. Failure to fulfil its obligations would damage its reputation as a reliable supplier. The planned production would normally be sufficient unless major problems such as highwall failures, roof falls, natural disaster, or strikes that interrupt production or delays in obtaining environmental permits, occur. To overcome these difficulties, the company may be able to obtain more of the commodity: from its strategic stockpile (if there is sufficient there); by buying it on the spot market; or for some commodities such as gold and uranium, by leasing it. Two sources of uncertainty, the spot price of the commodity and the occurrence of serious incidents that interrupt production, are considered. For simplicity it is assumed that the commodity price follows a geometric Brownian motion, that productions incidents have a binomial distribution, that they are independent from one time period to another and that they do not affect prices. A branching tree structure is used to model the joint evolution of prices and production incidents. The aim of this research project was to evaluate the companyÆs options for fulfilling its contractual commitments. When evaluating these options, multi-stage stochastic programming with recourse was used to solve this problem because in addition to providing the dollar value of the project, it gives decision-makers the æroadmapÆ to reach the optimal value. That is, how much material should be bought/sold on the spot market, how much to add to/subtract from the stockpile, how much to lease and in the worst case what the shortfall would be, for each time period as a function of the current spot price and breakdown status. A case-study over a five-year period is used to illustrate the proposed procedure. In this study the production would be sufficient to cover the companyÆs contractual commitments unless production incidents occur. Focus is on evaluating the impact of the quantity initially in the stockpile on the value of the project when the commodity market is tight, that is, when only small quantities can be bought on the spot market or by leasing.

Sep 26, 2011