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By P. B. Baxendell

The appraial of producing properties and profitability ntzalysis of a proposed capital expenditure are based on the same principles. In both problems a projection of future cash income is. cornpared to one or more capital expenditures. Several different methods have been in use either to compute a price to obtain a given earning power on the investment or to compute the earning power which will result from a given capital expenditure. One of these, the "Average Annual Rate of Return" method, computes in a simple manner the ratio of the present value of the future earnings after amortization to the present value of the undepreciated balances of the investment over the life of a project. This method, not well known generally, appears to have some rather unique advantages in reducing the computation work required, eliminating trial-and-error solutions, and providing a more accurate answer when applied to oil industry investments subject to the unit-of-production basis of amortization. Its derivation is given and its versatility demonstrated in the solution of certain everyday investment problems. A number of charts, useful in applying this method to profitability analysis and appraisal work, are provided. The current trend in the market values of producing properties is shown. INTRODUCTION Making sound capital expenditure decisions requires an objective means of measuring the productivity of individual investment proposals. Since the best measure of the economic worth of such proposals is their ability to produce profits, it is common practice to grade proposed capital expenditures according to their annual earning power as a percentage of the outstanding capital. The same principles which govern the determination of the rate of return of proposed capital expenditures also apply generally to the problem of determining the appraisal value or purchase price of income-producing oil and gas properties. Both problems are of prime importance in the producing phase of the oil business, where management is faced daily with decisions to drill or not to drill certain development wells, or with the determination of the appraisal value of producing properties. The common feature in both problems is that a projection of future cash income is compared with a known or estimated capital investment to determine itsiearning power or annual rate of return. In the case of development drilling, the cost of the proposed well can usually be estimated with a fair degree of accuracy and the problem consists of finding the rate of return on the invested capital. In the case of appraising producing properties, on the other hand, the desired rate of return is usually known in advance and the problem consists of determining the purchase price which, for the given income projection, results in the fequired rate of return. Certain accounting procedures common to the oil and gas producing business make these two problems and their solutions somewhat different from corresponding problems in other industries, and, in certain ways, simpler. The main difference is in the amortization policy which, for oil and gas production, is frequently on a unit-of-production basis, compared to the amortization on a time basis used in many other industries. The purpose of this paper is to discuss briefly the various methods currently in use for the measurement of productivity of invested capital in producing properties and, in more detail, the derivation and application of what will be called the "Average Annual Rate of Return Method". This rather interesting and not too well known method has some very definite advantages in the solution of many problems common to the oil industry. For the sake of simplicity, federal income tax considerations have been disregarded in the examples used, since they do not affect the principles involved. The use of the production payment route in the sale or purchase of producing properties, which has been amply covered in many other publications, has also not been included in this analysis. METHODS FOK MEASUKING THE EARNING POWER OF INVESTED CAPITAL, Of the many different methods used to measure the earning power of invested capital, four are applicable to oil or gas production ventures. Depending on whether these four methods utilize one or two interest rates, and whether a fixed amortization pattern is used, they may be classified as follows.

By Jon A. Hummer, Emanuele Cauda, George H. Schnakenberg, Aleksandar D. Bugarski, Samuel J. Janisko, Larry D. Patts

A series of engine/dynamometer tests was conducted to assess the effects of three types of uncatalyzed diesel particulate filters (DPFs), a diesel oxidation catalytic converter (DOC) and three types of high temperature disposable filter elements (HT DFEs) on the concentrations and size distribution of diesel aerosols and concentration of nitric oxides in underground mine air. Tests were conducted in the NIOSH Diesel Laboratory at the Lake Lynn Laboratory experimental mine, a facility developed to allow evaluation of these and other control technologies directly in an underground environment. The aforementioned technologies are evaluated by comparing the aerosol and gas measurements in the mine air 60 m downstream of the exhaust from a naturally aspirated, mechanically controlled engine fitted with the tested systems or muffler and operated at four steady-state engine speed and power modes. The tested DPF and HT DFE systems caused a 10-fold reduction in total mass concentrations of aerosols. The size distribution and number concentration measurements showed that all tested DPF systems and HT DFE elements effectively removed accumulation mode aerosols (D50>30 nm) for all test modes. An increase in peak number concentrations of nucleation mode (D50>30 nm) diesel aerosols is evident for some of tested DPF systems when engine was operated at high-load modes. The effects of uncatalyzed DPFs on nitric oxide (NO) and nitrogen dioxide (NO2) concentrations are found to be minor. A four-fold increase in percentages of NO2 in total nitrogen oxides (NOx) over baseline case was observed for the DOC when the engine was operated at high-load modes. The findings from this study should contribute to better understanding the potential for various control technologies to reduce exposure of underground miners to nano and ultrafine aerosols. In addition, detailed physical characterization of diesel aerosols made directly in occupational setting should foster a better understanding of the health risks associated with exposure to nano and ultrafine diesel aerosols.

By C. M. F. Vieira

In the county of Campos dos Goytacazes, north of the State of Rio de Janeiro, Brazil, there is a large production of red ceramic, mainly perforated bricks. A percentage of these bricks are damaged during the firing processing and become a red ceramic waste. This work investigates a possible solution to this environmental problem through the mixture of fired brick wastes, up to 20 wt.%, with clay bodies to produce red ceramics. Cylindrical pressed bodies were fired at temperatures varying from 500 to 1100ºC. After firing, samples were then tested for linear shrinkage, water absorption and mechanical strength. The results showed that brick waste addition did not changed the workability of the clay and that up to 5 wt.% of waste no detrimental effect occurred on the fired properties at all temperatures.

Jan 1, 2010

By Tom Olsen, Tom Ohrling, Peter Taggart, Chris Martin

"North American Palladium commissioned the new concentrator at the Lac des Iles mine in the summer of 2001. The 15,000 tonnes per day mill replaced the existing 2,400 tonnes per day facility, as part of a major mine expansion.At Lac des Iles, the grain size distribution of the platinum group minerals (PGM) is bi-modal. Roughly two-thirds of the PGM are relatively coarse-grained, and often associated with fast floating copper and nickel sulphides. The remainder is ultra-fine, and locked in silicates, which poses a special challenge to the metallurgist. The previous mill typically recovered just the fast-floating mineralisation, but to achieve target recoveries, the new mill has to recover a substantial amount of the ultra-fine PGM. The metallurgical challenges associated with the recovery of fine-grained PGM in the talcous Lac des Iles ores, are described.The paper describes the approach used in circuit optimisation, and how metallurgical and operational optimisation raised palladium recoveries by more than 6% in six months, by tuning the circuit to recover some of the ultra-fine PGM mineralisation.BACKGROUNDThe Lac des Iles mine, owned and operated by North American Palladium Limited, is located about 115 kilometres north of Thunder Bay, Ontario. The mine originally opened in December 1993, and prior to 2001 included a mill capable of handling 2,400 tonnes per day of ore delivered from the nearby Roby pit.Following an intensive exploration programme conducted in 1999, and a detailed feasibility study, conducted in 2000, North American Palladium initiated a mine expansion project, the objective being to expand milling throughput from 2,400 tonnes per day to 15,000 tonnes per day. This required construction of an entirely new mill, which was commissioned in May 2001."

Jan 1, 2003

By J. A. Hayes

For over a decade the Osterberg Load Cell has been successfully used to determine the shear capacities of drilled shafts. Since the test method measures side shear directly, analytical complications due to the influence of end bearing resistance are removed. The data suggest that the side shear component of a drilled shaft's capacity is often more significant than end bearing. Given the interest in the use of side shear in drilled shaft design in compressible materials, it is important to examine factors that can influence capacity. We have found that some factors widely believed to influence capacity, such as slurry type, are not as important as commonly thought in most materials. Factors that are not usually considered as important, such as casing use, hoop spacing, concrete slump, concrete additives, spacers and rebar clear cover, seem to be more influential with respect to side shear capacity. For example, substantially lower than predicted shear resistance can occur when the rebar clear cover is small with respect to the cage diameter. We observe this most often in fine-grained cohesive soils. This effect can be exaggerated if the rebar cage has tight hoop spacing, if the concrete has low slump and if the hole is not straight. We have also noted that improper use of temporary casing can have a dramatic effect on side shear resistance. In some cases we have observed tested shear capacities reduced to less than 5% of either predicted or available shear values.

Jan 1, 2003

The United States continued to depend on imported bauxite during 1995. Domestic bauxite mine production remained at about the same level as in 1994. It amounted to less than 1% of total world production. All of it was used for nonmetallurgical products, such as abrasives, chemicals, proppants and refractories. Metallurgical grade bauxite was imported from 12 countries. Principal suppliers for this 10 Mt (11.1 million st) of ore were Guinea (39%), Jamaica (35%), Brazil (17%) and Guyana (8%). The average value of imports, c.i.f. US ports, was $31/t ($28/st). Calcined refractory-grade bauxite imports totaled235 kt (259,000 st). It had an average value of $112/t($102/st) c.i.f. US ports. China supplied 61%, Guyana30%, Hong Kong 4% and France 3%. Imports of other grades of calcined bauxite, primarily for the abrasives market, totaled 259 kt (286,000 st).They were supplied by China (59%), Greece (20%), Brazil (14%) and Australia (6%). The average value was$74/t ($67/st) c.i.f. US ports.

Jan 1, 1996

By B. Pewkliang, K. Ehrig, E. Macmillan, M. Smith, V. Liebezeit, Y. Li

The Olympic Dam iron-oxide copper-gold (IOCG) uranium-silver deposit is the largest publicly declared uranium, fifth largest copper and third largest gold resource. Currently, the operation consists of an underground mine and integrated processing plant. Uranium is produced from leaching of flotation tailings and is a co-product to copper cathode with by-product gold and silver bullion. The Olympic Dam geometallurgy team began studying ore from the Southern Mine Area (SMA) in 2006 and soon discovered uranium behaviour was far more variable than the behaviour in the Northern Mine Area, which had been mined from the start of the operation in 1988. The primary objective of Olympic Dam geometallurgy is to develop metallurgical performance predictors that reliably describe the process performance of different ore types and distribute these into the resource block model for use as a fundamental input into mine planning. The nature of the uranium mineralisation (compositionally and texturally complex and highly variable) meant that classic mineralogy techniques alone could not provide the resolution required for prediction of uranium extraction. However, the combination of quantitative mineralogy, results from laboratory-scale leach tests and modelling within the geometallurgy program has enabled prediction of both uranium flotation recovery (via association with sulphides) and uranium leach extraction, including at variable leach conditions. These stope-based predictions have supported trade-off decisions between operating costs and uranium revenue, and have predicted the changing recovery as the mining operations have moved into the Southern Mine Area in recent years.

Jan 1, 2020

By Stephen C. Tadolini, Thomas M. Barczak, Paul McKelvey

A new generation of hydraulic mine support prestressing devices has been developed. These thin-walled steel shells are machine-welded and can be inflated with water or any liquid to provide prestressing for a wide variety of roof support products ranging from Can supports to props and cable bolts. With an expansion capability of several inches, depending on the geometry and size of the unit, they can also establish roof contact eliminating the need for wooden wedges or crib blocks that are commonly employed with several standing roof support products. Capable of withstanding pressures from 1,000 to 6,000 psi, these cells are able to transfer roof loading into the support structure without rupturing. A recent development has been the addition of an inexpensive yield valve that provides control of the maximum pressure and load development on the support. This paper examines the performance capabilities of these inflatable prestressing units and the impact they have on the performance of various support systems, including an evaluation of the overall stiffness of the support system and the load control during yielding of the prestressing unit. Recommendations are made regarding the design requirements of the prestressing unit to optimize the support performance. A summary of mine applications using this technology is provided with general comments regarding their impact on ground control.

By Phil Thwaites

"The mining industry uses many types of mineral and metallurgical plants to produce saleable product from ore mined. Plant design history has left current operations with a mixture of manual operation and various forms of automated process controls. Consequently, we typically see high variability in the continuous operations together with a shortfall in the attainment of full capacity, or higher utilization of consumables.At a level of best practice, “Operational Performance Excellence” focuses on process control, using automation and control systems to deliver process optimization. This more sophisticated delivery is a great deal more difficult than the first stage of equipment selection / installation. It includes the appropriate selection of the right instrumentation, control system, key process knowledge, individuals with a solid control engineering background/experience, and the essential backing/ support of the operations management team together leading to higher value delivery. Robust solutions can be realized, considerably minimizing process variation, thus leading to process optimization. This approach results in an easier, efficient and safer process while providing considerable returns for the plant owners.How variable are your processes, and do you maintain optimized process performance with dedicated resources, modern instrumentation, ‘best practice’ control systems and performance monitoring tools? In this lecture, these questions and their possible answers are discussed.357"

Jan 1, 2013

By K. E. Barnes

"The IsaMill was developed for fine-grained ores that required at least double the grinding efficiency of ball or tower milling to be economic. This was achieved, but in practice, the benefits of using inert media (eg sand, slag, ore, ceramic) have proven to be at least as important as the higher grinding efficiency. Flotation selectivity and rate was improved for all particles, particularly fines. This allowed a dramatic simplification of the Mount Isa lead zinc flotation circuit – adding 6 MW of ultrafine grinding power reduced reagent addition and flotation volume and increased plant energy efficiency. This was quite unexpected.This paper examines four orebodies that were enabled by inert grinding – McArthur River, George Fisher and Black Star Open Cut Mines (complex fine-grained lead zinc orebodies in Australia), and the Western Limb Tailings Retreatment plant (a PGM operation in South Africa). In a unique case history, the operating performance of the Mt Isa lead zinc concentrator is explained by size-by-size mineralogical data collected over 25 years, systematically explaining the impact of declining ore quality, and the effects of additional conventional grinding, inert grinding, and circuit and reagent redesign.The mineralogical case histories are so compelling that it is argued that the advantages of inert grinding should not be confined to difficult, fine-grained orebodies. The availability of largescale efficient inert grinding mills could have profound impact on circuit design for many orebodies.INTRODUCTIONThe IsaMill was developed by MIM (now Xstrata) to enable the development of the McArthur River Orebody in the Northern Territory of Australia. This ultra-fine grained ore needed a grind size of 80% passing 7 microns to produce a saleable concentrate. Such a fine grind was not economic with conventional ball or tower milling. Below about 25 microns the low energy efficiency and high media consumption of these mills is prohibitive. Critically, the high steel consumption and associated change in pulp and surface chemistry also seriously affects flotation metallurgy."

Jan 1, 2006

By Richard C. Moore

The U.S. Bureau of Mines contracted a study to estimate what effects the underground mining of thick coal seams in the western United Slates would have on the surrounding water resources. Potential coal fields in the western United States where this type of mining might occur were identified. The foreign literature was searched for studies of effects on hydrology from thick seam underground coal mining. Based on the limited information obtained from the foreign literature, estimates of the effects of this type of mining on the ground and surface water in the western states were made.

Jan 1, 1980

By L. M. Sekhukhune

The atmospheric leaching of copper-bearing matte by acidic ferric chloride solution was studied at the laboratory scale. The aim was to achieve maximum copper and nickel recovery by investigating the mechanisms of leaching, as well as identifying the effect of temperature, and concentration of ferric chloride and oxygen. Djurleite (Cu1.96S), hazelwoodite (Ni3S2), and Ni alloy were the primary phases detected in the matte. The quantitative composition of the matte was Cu 31%, Ni 50%, S 13%. Fe and Co constituted 2%, with platinum group metals (PGMs) accounting for 0.5%. A maximum nickel extraction of 98% was achieved using two-stage oxidative leaching at 90°C and 11 g/L Fe3+ as compared to 65% under non-oxidative conditions. A copper extraction of 99% was achieved in the first 45 minutes using two-stage non-oxidative leaching, and copper was recovered from solution by cementation. Three processes took place simultaneously throughout the leaching process, namely: dissolution, cementation/ metathesis, and oxidation. The leaching process was found to be diffusioncontrolled.

Jan 1, 2014

By Jacolien P. Wyethe

Zincor uses a Roast-Leach-Electrowinning circuit to process zinc sulphide concentrates. It also processes zinc oxide fume, originating from a slag smelting operation in the Democratic Republic of the Congo (DRC). Zincor achieved an average zinc recovery of 90.3% during the period January 2006 to May 2007. The bulk of the losses occurred in the iron and lead silver residues, both as soluble and un-dissolved losses. The un-dissolved losses in the iron residue constituted around 33% of the total zinc lost from the circuit, and were largely attributed to the presence of zinc-ferrite in the calcine used for neutralization during iron removal. As part of Zincor?s continuous improvement programme, the un-dissolved zinc losses in the iron residue were targeted by: the partial replacement of calcine with zinc oxide fume (from the DRC); and the preferential use of ?low-ferrite content calcine? as neutralizing agents in the iron removal circuit. These initiatives, coupled with other operational factors, resulted in a marked improvement in recovery to 92.6% during June to December 2007. The zinc oxide fume, directly fed to the circuit, required investigation of the halide rejection capacity of the Zincor circuit. Rejection of chloride via the magnesium bleed operation was considered adequate. Fluoride was mainly rejected via the iron (~70%) and lead silver (~27%) residues. Fluoride rejection via the lead silver residue varied significantly, probably as a result of variations in the sparingly soluble CaF2 content in the feed. The mechanism for fluoride rejection in the iron residues is uncertain. The fluoride rejection capacity of the Zincor iron residue (comprising of mainly jarosites, schwertmannite and ferrihydrite) at 2 ? 4 mg/L F in solution, was estimated at 0.14 ? 0.19 kgF/tFe residue.

Jan 1, 2008

The Southwest Pacific is a region of active volcanism and geothermal systems. Only in New Zealand have the geothermal systems been exploited for electricity generation and industrial processing. At present, approximately 280 MWe of geothermal electricity is generated in New Zealand. A considerable amount of further exploration work is required before the total geothermal potential of the region can be assessed and before the significance of these resources can be judged against other local energy sources.

Jan 1, 1990

By W. H. Ode

Because trade increased among various nations after World War II, the Coal Committee of the Economic Commission for Europe established a Classification Working Party in 1949 to develop an International system for classifying coal. Although national classification systems existed, they had been developed in accordance with characteristics of domestic coals without reference to coals of other countries. Terms for describing similar or identical coals differed in each nation. This caused confusion in evaluating coals shipped in international trade and also hampered exchange of technical information on problems of coal utilization. Experts4/ participating in the classification project early in their work agreed that two systems should be formulated, one for the higher rank coals or so-called "hard" coals in European terminology and the other one for the lower rank coals, the latter designated mainly as brown coals and lignites in the various countries. Rank refers to the degree of metamorphism (progressive alteration) in the natural coalification series from lignite and brown coal to anthracite. The system for classification of hard coals was published late in 1956 as a document of the United Nations.5/ Results of a study for applying this system to American coals were published in 1958.6/

Jan 1, 1960

By Raja V. Ramani, Robert L. Frantz

"The House/Senate Joint Conference Committee has instructed the Bureau of Mines to have the Advisory Committee on Mining and Mineral Resources Research review on an annual and simultaneous basis each generic mineral technology research center (GMTC). In order to accomplish that review promptly and uniformly, committee members have revised and approved an in-depth questionnaire. That document formed the basis of their review. The information provided by that questionnaire was an important factor in their recommendations concerning the future direction of the program; a presentation was made at the last National Plan Update.The comprehensive nature of the questionnaire and the scope of the information contained therein make it an excellent retrospective of the Center. Having a clear vision of where the Center has been and knowing where it is now will help guide it into the future. It is felt that such a detailed view of the Center's facilities and research program will be of value to Center personnel and Advisory Committee members.Each aspect of the questionnaire has been examined, answered in detail, and documented throughly. With the completed questionnaire as a guide, this volume examines the research program, Center personnel presently active on GMTC projects, number of graduate degrees granted with GMTC support, GMTC publications, degree of individual interaction, technology transfer, the reference center, GMTC equipment and facilities, and any envisioned plans for future research. It is hoped that this volume will serve as a review of the years 1984-1988, the first four years of the Center's operation."

Aug 31, 1989

By J. Chilton

The fact that methane ignitions continue to occur at the mining face indicates that monitoring with machine-mounted methanometers does not always indicate the presence of high methane concentrations. Methane concentrations at the face change quickly due to changes in airflow. By measuring these changes in airflow, it may be possible to predict changes in face methane levels more quickly. Currently there are no techniques or instruments to accurately measure airflow inby the mouth of the ventilation curtain or tubing. Tests conducted in the NIOSH ventilation test gallery compare the data provided by one-, two-, and three-axis ultrasonic anemometers. The effects of changes in airflow direction and turbulence on instrument readings are discussed, and guidelines are given for selecting the type of instruments to be used for monitoring airflow near the mining face.

Jan 1, 2007

By Radford B. Langston, John A. Marjerison, Graham C. Howell, Hendrik A. D. Kirsten

Probabilistic design is gaining wider acceptance in the rock engineering community since it allows more rigorous determination of risk relating to ground fall or excavation instability. Risk analysis can be conducted by various means, but the basis is formed by either objectively or subjectively determining probability of occurrence of an event. In the case of rock engineering, this event is either instability or excavation failure. Rock mass classification systems provide objective analysis of data collected on a typically subjective basis that also relate closely to excavation stability. A probabilistic analysis technique is presented that uses statistical distributions of rock mass and material properties, ground support fixture specifications, stress conditions, opening geometry, and ground support installation quality to more rigorously determine probability of failure for an underground opening and the subsequent risk to personnel.

Jan 5, 2007

By Seung-hoon Lee

The use of piled raft foundations has been considered as an economical alternative to conventional piled foundations because a portion of the applied load is carried by the raft in the design of piled raft foundation. In analyzing the behavior of a piled raft foundation as a settlement reducer, an accurate estimate of settlements of the system should be made on the basis of the understanding of nonlinear behavior of piles in layered soils as well as the interaction between the raft, soils, and piles. Although the 3-dimensional finite element method and simplified analysis methods have been used for the design of piled raft foundations, these methods were found to be inadequate for the practical purpose or could not consider the interactions properly. This study developed an approximate hybrid method of analysis to be used for the practical design of piled raft foundations considering pile-soil, raft-soil, pile-soil-pile and raft-soil-pile interactions. In the presented method of analysis, the settlements of the system are estimated satisfying the compatibility of two separate models which are the flexible raft model consisting of 2-dimensional finite elements supported by springs representing soils and piles, and the group-pile model embedded in layers of soil having different properties. Comparisons with other analytical methods as well as a 3-dimensional FEM program were made to verify the sufficient capabilities of the proposed hybrid model for application to practical design and analysis of piled raft foundations.

Jan 1, 2008

By D. H. Horswill

The paper point out considerating how mining activities contributed to sustainability, it is important to consider how exploitation of a finite resource can be regarded as sustainable. The now well–recognized concept of sustainable development holds that society’s pursuit of development that meets current needs should not compromise the ability of future generations to meet their own needs. Sustainability, then, contemplates multigenerational enjoyment of a quality of life that includes social and economic benefits and a healthy environment in which to live. In this sense, the benefits of our activities must always exceed the risks. Many other companies are also making significant inroads along the path to sustainability.

Sep 13, 2001