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By Bruce D. Hansen

For many years, Newmont has focused on improving its operations. After the merger between Newmont and Santa Fe Pacific Gold, Newmont created synergies of more than $50 million a year in Nevada. This was done primarily through optimal ore movements and consolidation of various functions. During the current period of low gold and copper prices, Newmont has refocused its efforts on efficient operations worldwide. At its mine facilities in Nevada, Newmont has used a combination of several strategies to decrease the costs of operations and to increase profitability. These include computer technology, optimal use of infrastructures, procurement strategies, functional consolidation, enhanced mine planning and several available metallurgical processing options.

Jan 1, 1999

By A. Duerksen

"Surface coal mining in West Virginia has supplied energy to the eastern coast of the United States for over a century. Over the years, the coal mining industry has been forced to adapt as societal demands regarding health, safety, and environmental impacts have changed. More recent pressure has called for another iteration of change: long-term post-mining sustainability. The research discussed in this paper investigates one potential solution - or component of a solution - to improve the sustainability of surface coal mining in West Virginia: post-mining wind power. The paper begins with an introduction to the Appalachian region of the U.S. and the role that mining has played in its history, followed by a discussion of the need for sustainable mining and how post-mining wind power may help fulfill it. Data processing methodology of field data from monitoring locations is then explained. The results are then used to estimate the electrical output of a wind turbine. This data is then utilized in a case study discussion of one of the monitored sites. The paper concludes with an analysis of the broader implications of the research and a discussion of future work."

Jan 1, 2011

By J. Chai, H. H. Sedarat, Gary J. E. Kramer, A. Kozak

Precast concrete segmental lining systems have been gaining widespread use in seismically active areas and a single-pass version of such a system has been developed for use on the Silicon Valley Rapid Transit (SVRT) Project in San Jose, California. The response of tunnel linings to seismic shaking is often predicted using engineering judgment, elastic closed-form solutions and numerical modeling. Such analyses generally assume a continuous structural system and hence do not explicitly model the behavior of the jointed segmental lining. A number of analyses were performed to predict radial and circumferential joint behavior during seismic ovaling and wave propagation. These analyses included a complex, three-dimensional finite element based ground-structure interaction model that incorporates inelastic constitutive soil behavior, cracked concrete properties and no-tension, frictional segment joint surfaces. The paper discusses the results of the analyses and provides guidelines for the design of precast systems in zones of high seismicity.

Jan 1, 2007

Using mines in Canada, Boart Longyear, a leading provider of drilling services and products, has put its Stage 3 Coring Bit to the test and each time the bit has passed the test with great success. After more than a year in the field at a major mine operation in Sudbury, Canada, the Stage3 coring bit broke life records to become recognized as the most productive design in the industry. In addition to the proven advantage seen in regular bit life increases of as much as 300 percent in some cases, the design is quickly being recognized for its cost-saving operational impact. In Sudbury, the mine operation realized actual cash savings of more than C$45,000 within an eight-month period by making the switch to Stage3 bits. For years, the Sudbury Basin team has relied on the Alpha Extended Crown bit with the Express Waterway geometry option, ordering approximately 500 units per year. This 07 COM ECEX configuration performed well in medium-hard, non-abrasive to ultra-hard, non-abrasive formations with an average bit life of 150 m (490 ft). While satisfied with the performance of the Alpha Ex-tended Crown, the team agreed to put the new Alpha Stage3 to the test. Boart Longyear?s field engineers supplied five drill sites with Alpha Stage3 bits in a 07 COM configuration. After thoroughly testing the Stage3, the results were clear. Even with the well-known performance and versatility offered by the previously preferred configuration, the Stage3 set a new standard of bit performance. The new bit maintained its cutting edge for up to three times longer than the Alpha Extended Crown, a significant performance increase when compared to the 07 COM ECEX.

Jan 1, 2009

By R. Adsero

The analysis of equipment trends in AUSIMM?s Revision of Monograph 19; Australasian Mining and Metallurgy Operating Practices (AMMOP) in the paper by Dight et al (in press) raised some interesting and in parts disturbing trends in the Open Cut Mining Industry. According to the US Bureau of Labour Statistics the US mining and petroleum industries? productivity is down by 12% since 2004 while the Australian Bureau of Statistics shows the productivity of the Australian mining industry is down by 34% since 2001. In terms of open cut equipment median output for draglines is down by 15% since 2003; electric rope shovels are down by 41% since 2003; hydraulic excavators are down by 39% since 2008; front end loaders are down by 39% since 2007 and trucks are down by 41% since 2006. Clearly the boom has not been good for the efficiency of the mines. During this same time, best practice (defined as the average of the top 10% by annual output per unit of input) has declined but not by as much as the median (eg. shovels down by 8%, excavators down by 19% and FEL?s down by 5%). This paper will build on the analysis of AMMOP to understand the differences occurring between median and best practice and identify the factors contributing to the decline in performance. As the industry enters a period of potentially lower prices for commodities and reduced margins pressure will be brought to bear on mine sites to start moving more with the equipment they have. An understanding of where efficiency has been lost will be a key component in that. The information contained in AMMOP, and the subsequent analysis of that information in papers such as this one will be crucial to reversing the decline in open cut equipment performance.

Feb 27, 2013

By Duane A. Smith

They are gone now. Gone like that long ago generation that gave them birth. The Homestake Mine, nestled in the northern Black Hills, closed in 2001 after 125 years, the longest run of any major American gold mine. The Homestake Mining Co., which guided its destiny for those many years, is gone too. It merged with Barrick Gold. The Hearst family, which guided the early destiny of both, has long since gone beyond its mining heritage and into the national and even international spotlight. The mine and the company passed from the scene with as little fanfare as heralded their birth, amid the Black Hills gold rush of the 1870s. They both grew into American mining legends, as did the town they sired and nurtured, Lead. In a real sense, the mine and the company symbolized one of the last links to a vanished world and a mining era.

Jan 1, 2003

By J. Pesl, R. Hurman Eric

Metal-slag phase compositions of molten iron and ilmenite smelting slags or solid titanate phases were determined between 1500° and 1700°C. The influence of oxygen partial pressure and impurity oxide additions including Al2O3, Cr2O3, MgO and SiO2 were investigated along with amount of reductant-carbon. The XRD revealed that the quenched slag crystallized as pseudobrookite (M3O5) solid solution in equilibrium with iron. Silica additions formed separate silicate phases because of its immiscibility in the titanate phase. Under strong reducing conditions iron oxide was almost completely reduced and the slag phase solidified as a consequence thereof. Cr2O3. SiO2 and MnO were also reduced to a high degree. Under weak reducing conditions the slag was fully molten and non of the impurity oxides were reduced. A significant portion of manganese, some magnesia and silicon, in the form of SiO gas, were removed via the gas phase due to their considerable vapour pressures. Alumina was not reduced under the applied conditions. A comparison of the experimental results with industrial data clearly suggested that industrial ilmenite smelting process operated under non-equilibrium conditions.

Jan 1, 2005

By C. Keefe, O&apos

Measurements of the quantity of entrained air within processes have challenged instrumentation developers for years. This is particularly true in the unique and demanding operating environment and applications seen in minerals processing. In minerals processing applications, entrained air plays a role in errors seen within nuclear density gauge measurements and in pumping efficiency. It is also the major component of flotation processes. The measurement of the quantity of entrained air, known as the gas void fraction, can now be performed from the outside of a process pipe through CiDRA?s patented passive sonar array-based technology. Within column cells, the need for a robust, no maintenance, accurate means of measuring the entrained air, known as gas holdup, has resulted in a submersible version of this technology. CiDRA?s meter technology calculates the gas void fraction by first measuring the speed at which naturally occurring sound in the process slurry propagates past an axial array of sensors. These sensors are incorporated in a band that is wrapped around the outside of the pipe, resulting in no process downtimes for installation and unprecedented reliability. A known relationship between this speed of sound and the entrained air captured in the form of bubbles within the slurry is then applied in CiDRA?s meter to calculate the gas void fraction. This paper will present the measurement technology, its operation, its calibration and its application in a variety of gas void fraction and gas holdup measurement situations such as pumping efficiencies, hydrocyclone operation, external sparging, and column cells.

Jan 1, 2008

The largest investment in mining equipment in Caterpillar?s history ? The F series mechanical and electrical drive trucks ? is rapidly advancing. Caterpillar showcased the 793F and 797F mechanical drive trucks and the 795F ac electric drive truck at MinExpo in 2008 and have continued testing since then. The 793F and the 797F have accumulated more than 75,000 hours of field testing and have proven their performance capabilities and their durability. The new Cat C175 engine that powers them has racked up 130,000 hours of field testing in mining trucks and more than 120,000 hours in power systems. Because of the success of these field-follow programs, the 793F is targeted to go into full production within a few months and the 797F late this year. Caterpillar engineers have been testing two 795F ac prototypes at the Tucson Proving Grounds in Arizona. The development program has provided input for the construction of a new 795F ac in Decatur, IL. The new truck recently shipped to a copper mine in North America where it will serve as the first field-follow 795F ac as it works at the mine. The 313-t- (345-st-) capacity 795F ac will enter a new size class for Caterpillar, and, as a result, the primary focus of the Caterpillar ac electric program has been on the 795F ac. The commercial launch date will be defined as the field-follow program progresses. ?It?s fitting that soon after producing the 50,000th Cat off-highway truck, we are now shipping our first ultra-class ac electric drive truck to a mine,? said Chris Curfman, president of Caterpillar Global Mining. ?Our new trucks further solidify our position as the one manufacturer to provide unparalleled options and unmatched customer support.?

Jan 1, 2009

By Bruce Clements

The Bagdad mill, located near Bagdad, AZ, was built in 1977 with a designed mill capacity of 36.3 kt/d (40,000 stpd). An autogenous mill-ball mill crusher (ABC) grinding circuit was chosen. The original mill contained three independent grinding circuits. Each contained one 9.75m-diam x 4-m-long (32-ft-diam x 13-ft-long) fixed-speed autogenous mill, a4.7-m-diam x 6.7-m- long (15.5ft-diam x 22-ft-long) ball mill and one 2. 1-m-diam (7-ft-diam) short head cone crusher. Total installed power per grinding circuit was about 8.4 MW (11,350 hp), with 5.9 MW (8000 hp) in the autogenous mill, 2.2 MW (3000 hp) in the ball mill and 261 kW (350 hp) in the crusher (Fig. 1). The autogenous mills were designed to be able to operate semi-autogenously. However, they were never converted to semiautogenous grinding (SAG) mills. As a result of this design, only about 4.1 MW (5450 hp) of the designed power is used in the autogenous mills. The grinding circuits are closed, with 2.4 x 6 m (8 x 20 ft) double-deck vibrating screens. A series of conveyors re- turn screen oversize underneath the mill coarse ore stockpile to feed the crushers. Variable speed belts feed the crushers and control power draw. Crusher product reports directly to the tail end of the autogenous mill feed belt (Fig. 2). A magnetic sensor detects tramp iron in the autogenous mill-crusher circuit.

Jan 1, 1992

By R. Mensah-Biney

The NC State University Minerals Research Laboratory (MRL) and Waste Reduction Partners (WRP) of the Land of Sky Regional Council joined efforts in 2000 to initiate a technically sound and practical program for the management of high-volume coal combustion by-products (CCBs) in North Carolina. The accumulation of CCBs from coal burning boilers throughout the state of North Carolina posed a substantial storage problem, and the area was overripe for an effective management program, which would be environmentally sustainable. In particular, the public utility generators had filled storage ponds on their properties, and the storage overload had grown to critical proportions. Much the same situation existed for paper mill biosolids, which were stored on site in landfill cells along with daily output of CCBs from the mill boilers. A conversion process via the patented pyro-process12 (US Patent No. 5,342,442) to produce synthetic light weight aggregates (LWA) from CCBs and paper mill sludge was conceived to process large quantities of both these waste materials. MRL and WRP initiated and formed a consortium that brought together academia, private industry and state agencies to evaluate the production of LWA by the pyro-process. The industry partners included representatives from the power companies, industrial ash generators, expediters for coal ash products, as well as concrete block manufacturers. It was important to welcome interested parties from not only the western North Carolina area and other parts of the state but also from neighboring states including Tennessee, South Carolina and Georgia. Membership of this consortium evolved during the intervening years to include the following participants and supporters: Progress Energy Carolinas; Duke Energy; Santee Cooper; Full Circle Solutions; Land-of-Sky Regional Council; NC Department of Pollution Prevention and Environmental Assistance; Ecusta Business Development Center; Blue Ridge Paper Products; Jackson Paper and Manufacturing Company; Miller Perlite; Appalachian Products; General Shale Brick; Metromont Materials; Small Business Technology Development Center of the University of North Carolina system and North Carolina State University The initial development program conducted at the Minerals Research Laboratory (MRL) was to formulate an acceptable LWA product, which fulfilled user specifications for light weight concrete block and structural concrete application. Support work and program coordination efforts were furnished by retired technical volunteers in WRP. The work advanced steadily, using proven technologies well established in the mineral industry, to generate a very satisfactory LWA. The consortium then concluded that a more comprehensive CCB conversion program would have more appeal for full scale manufacture and commercialization, if a variety of products from CCB separation were generated. This product assortment would include bottom ash, low carbon fly ash, recovered carbon of high purity, as well as the synthetic LWA. The bottom ash would serve the concrete block market, the fly ash was in demand for ready-mix concrete, and the high carbon product could be pelletized and used as a fuel for reburn or by the steel industry, and the LWA was a sought-after component for light weight concrete applications. After scouting all these potential markets and finding them to be viable, the consortium then inaugurated an integrated pilot plant program for the CCB separation and conversion. The plan was organized in three (3) parts: (1) Phase I ? bench scale evaluation studies (2) Phase II continuous pilot plant evaluation and (3) Phase III ? conceptual commercial plant design including marketing efforts and attraction of business entrepreneurs to build a full scale manufacturing plant. Phase II would serve to validate the process in a continuous mode and produce substantial quantities of products for preliminary marketing efforts and for demonstration-of-use purposes. The consortium agreed to the name, CAROLINA ASH PRODUCTS, (CAP), for the integrated pilot plant program. The products generated might be designated with the CAP label as: bottom ash would be named CAP Granules, low carbon fly ash would become CAP Ash, recovered high carbon product would be CAP Carbon, and LWA would have the name CAP Stone. Phase II of the program processed 20 tons (18 t) of ponded ash from Progress Energy storage at a rate of 600 lb (271 kg) of raw ash per hour with favorable results. PRELIMINARY STUDIES Prior to committing laboratory research and development effort as well as support and coordination activities to this program, it was necessary to determine (1) the level of need for a freshly launched CCB reutilization program in this state and (2) what degree of versatility was necessary for such a process. State agency records and a survey of recent boiler operations indicated that in the state of North Carolina at least 77 facilities manage CCBs from their boiler operations. Despite continuing development efforts in more eastern parts of the state, the use of CCBs for commercial applications has not increased to a level which alleviates the need to store vast quantities in private monofills on the generator?s property. More than 1.25 million tons (1.13 million t) of CCBs are landfilled in NC annually, with 300,000 tons (271,985 t) per year generated in western NC alone. Many different boiler types, which span both very old units and those that are modern and efficient, were to be found. These included stoker-fired units, pulverized coal boilers, slag-tap furnaces, and fluidized bed combustion boilers covering a range of sizes. Any systems designed to separate CCB components from all these sources and convert them to useful secondary products would need broad processing latitude and flexibility. Up to the present there has been a paucity of research done in the western part of the state to find productive alternatives to storage in landfills. With tipping fees in our largest landfill now approaching $40 per ton ($44 per t) and escalating transportation fees (about $200 per truckload up to 40 tons, traveling a distance of 25 miles), the problem has become urgent both economically and ecologically. A well-designed, integrated wet process for CCB separation into value-added products had much potential to be less expensive than landfilling as well as to provide saleable materials with acceptable profit margins. These preliminary investigations also revealed that other major waste streams, in particular paper mill sludge and municipal and animal waste biosolids were important candidates for priority attention. Since these biosolids could furnish the organic component of a synthetic LWA product, they could be consumed as part of the same program. This added interest value to a growing list of partners to support and participate in the program.

Jan 1, 2009

By Chris Bennett, Drupad Desai, Kirit Mevawala

INTRODUCTION The design/build (D/B) philosophy of contract delivery is neither new nor unusual when it comes to at-grade, elevated or high-rise structures. But when it comes to constructing underground facilities, there were no examples to be followed in early 90sin the continental United States or its territories. When DMJM+HARRIS was selected as general architectural and engineering consultant for the Tren Urbano (TU) project in Puerto Rico, one of the requirements of the Federal Transit Administration (FTA) for funding commitment was to use TU as a demonstration project utilizing design/build contract delivery method. Now fifteen years later, New York City Transit (NYCT) has instituted a similar requirement for their first Tunnel Boring Machine (TBM) contract for the Second Avenue Subway. As with most construction mega-projects, lots of things have happened and there were several lessons learned from the TU experience that are now being applied to Second Avenue. Both of these projects require building tunnels and underground transit facilities in heavily traveled corridors of an urban city, in the vicinity of active business and commercial enterprises. To enhance the challenge, there are noise and vibration sensitive and historic urban receptors either over or along both the transit corridors. Column free Tren Urbano station caverns over18 m (60 ft.) wide were built in soft ground conditions within 3.6 m (12 ft.) of the surface under an aging heavy utility corridor, while NYCT tunnels with station structures stretching the limits of rock caverns to 34.8 m (100 ft.), were planned in rocky geology with the presence of shear and fault zones and some mixed face conditions. BACKGROUND During the early period of design/build experimentation, the speed with which the contract procurement packages could be put together enabled the owners to take advantage of the major efforts underway to rebuild the infrastructure that was suffering from post-World War II neglect. Use of design/build for new starts was unheard of and most of the projects were smaller in nature in order to allow the methodology to be tested. Development of functional design packages with the understanding that the D/B

Jan 1, 2005

By Christian Maguire

Tunnel contracts in New York have in recent years had few bidders with the bids received being much higher than anticipated. Since 9/11, security has become a key issue in planning key infrastructure projects in New York. This is especially true in the case of large water supply tunnels. Striking the right balance between cost and security was the major factor in determining the best configurationfor the Kensico-City Tunnel. This paper outlines the efforts made to determine realistic probable bid costs for the tunnel contracts, and the innovative approaches taken to deal with security issues.

By P. Schmieder

"The close vicinity of mining companies to other sites that are used for commercial and residential purposes or to areas under conservation as well as the fact that the people become more and more sensitive to emissions have led to a negative attitude towards mining operations in the neighborhood. It is above all the use of drilling and blasting techniques that give rise to objections, in the course of which demands for more environmentally-friendly production methods have been voiced. It is in this context that production methods without the use of explosives are considered as an option. After all, the use of such production methods is the only alternative for some quarry operators. The question is what are the true benefits of these techniques and what is the relation between a possible improvement of the environmental effects on the one hand and the technological potential as well as the costs on the other. It is intended to assess the mining techniques for solid rock in their entirety. This paper will therefore look at the aspects for assessing mining techniques in the context of their environmental impact and the costs."

Jan 1, 2005

By Desiree Willis

One of New York City?s largest subway projects is under way 43 m (140 ft) beneath the surface of downtown Manhattan. The East Side Access project, more than 30 years in the making, was halted after a partial excavation in the 1970s due to a lack of funding. The project, once dubbed the ?Tunnel to Nowhere,? has been revitalized into a groundbreaking subway line that includes unique tunnel boring machines (TBM), construction methods and muck removal systems. Project overview The East Side Access project involves construction of a new 6.7-km (4.2-mile) subway line needed to relieve heavy traffic congestion between the boroughs of Queens and Manhattan. The line will serve approximately 160,000 commuters daily between Grand Central and Sunnyside rail stations. Manhattan and Queens will be connected under the East River by the 63rd Street tunnel, a submersed double-decker tube. The submersed tube consists of reinforced concrete sections barged in place on the riverbed. The tube contains operational subway lines on the top deck, while the bottom deck (the ?Tunnel to Nowhere?) will become operational when the East Side Access project is completed in 2013.

Jan 1, 2008

By Claude Deveau, Stephen R. Young

Introduction Tanco History Tanco is sometimes known as the Bernic Lake Mine. It is located about 180 km east-northeast of Winnipeg close to the Manitoba-Ontario boundary. Tanco operates an underground mine employing ramp access, room and pillar mining and shaft hoisting for the production of tantalum, lithium and cesium minerals. Tantalum recovery employs conventional gravity and centrifugal concentration methods along with a flotation process which recovers ultra-fine tantalum. All tantalum concentrates are shipped to Cabot Supermetals, Boyertown, Pa., for the production of tantalum chemicals and metals. Tanco also produces lithium products from spodumene ore. The lithium concentrates from Tanco are shipped worldwide for use in ceramics, specialty glass and mold powders. Cesium processing involves the dry grinding of pollucite as feed stock to the on-site chemical plant dedicated to the production of cesium formate, a high density drilling fluid. Tantalum milling operations commenced in 1969. In the early years of the operation, feed grades were three to four times as high as they are today. Coarse-grained tantalum mineralization with complete tantalum liberation at sizes of 300 µm allowed for easy recovery with conventional equipment such as spirals and shaking tables. Over the years, the process and feed material to the plant have drastically changed. Due to drastically reduced liberation sizes, efforts have been made to try to recover as much of the liberated particles as possible in order to maintain acceptable recoveries.

Jan 1, 2005

By S. C. Sun

Pennsylvania has ample reserves of high-alumina clays which are potential sources of alumina, but many of these clays contain large amounts of iron, which makes them unsuitable for treatment by acid processes(1). The purpose of this investigation was to determine the optimum conditions for the selective hydrochloric acid leaching of iron (2-4) prior to the sulfuric acid extraction of alumina from Pennsylvania ferruginous high-alumina clays. This was accomplished by first testing the iron-bearing minerals and the clay minerals most often encountered in Pennsylvania clays to determine their rate of dissolution in hydrochloric acid solutions. The results of individual minerals were then based for leaching Pennsylvania clays with a 19% hydrochloric acid solution at the boiling point of the acid for approximately 30 minutes to achieve as high as 90% iron removal and only 2-5% alumina losses.

Jan 1, 1968

By R. Steele

In addition to compliance with government emissions and reporting requirements, mining and mineral processing companies are increasing energy efficiency to reduce costs and become more competitive in the global marketplace. One of the major obstacles to identifying opportunities for increased energy efficiency is the lack of readily available data on energy use, and more importantly the energy use linked to production data, that identify energy reduction opportunities. As well as energy reduction, mining and mineral processing companies often struggle with the prediction of energy use, and are often penalized for under or over forecasting. Once again, it is the lack of timely information that makes this prediction difficult. This paper looks at expanding the use of a Manufacturing Execution Systems by integrating with Energy Solutions. This will provide automatic, timely information, at a granularity that makes it easier to identify energy reduction opportunities, reduce energy costs, and better predict energy use in a mining and mineral processing operation.

Jan 1, 2011

By Russell Barr

Strategic alignment throughout a mining organization is critical to effective strategic execution and good business performance. The alignment of strategic goals and objectives in the different operations and functions in a large global operation is a challenge facing executive management in light of legacy organizational structure and processes. An additional confounding factor in strategic alignment of acquisition and new project expansion is that mining projects and operations are frequently multi-cultural in terms of country origin as well as organizational culture. This brings together many cultures to accomplish the project or complete an acquisition (Financial Times, 2006). The mining industry presents numerous challenges to executives and mine management by the nature of the operation and organizational processes used in running it. For example, there seems to be an inherent conflict between the individual goals of the components that constitute a mineral processing operation (the mine, the mill, the smelter and the refinery), and lowest cost production of the final product. Managers of these component operations have specific objectives passed down from the corporate executives. Those site managers tend to be compensated based on throughput and perform to this main metric. This tendency to maximize throughput for an individual operation can contradict the general process flow of a best-fit solution to producing the final product at the lowest cost. In an effort to become more aligned, firms are increasingly using balanced scorecard derivatives at great cost and effort (whether internally or externally sourced) in an attempt to help with strategic alignment. Balanced score-cards have been effective in providing a good strategic scorecard to companies with some measure of strategic alignment. Many firms make this effort of using balanced scorecards. However, most firms are not strategically aligned or, at best, are sub-optimized, in terms of strategic alignment (Kaplan and Norton, 2006). The tendency in mining operations is to focus on operating individual components as optimally as possible and stretching existing assets to the best possible production rates. ?Making tons? is the common operational focus. Numerous factors underpin this focus and can affect the ability of the operation?s ability to align properly with the corporate strategy and strategic goals. Critical factors are legacy organizational structure, culture, processes and performance measurement systems. Changing anyone of these factors to affect better strategic alignment requires significant attention to managing change.

Jan 1, 2008

By M. J. Ramos

Without an exclusive definition of administration in business, we could propose to define it as performance by management to adopt or implement established business formulas. Administration could also be defined as a universal process that organizes people, and achieves, through efficiency, common objectives and goals. Humanity developed some form of this process from the beginning of civilization. To imply that something is new in administration might be considered specious or naïve. Moreover, what is new in management? Administration of business is not new to the world. To prove this statement, we need only ask this question: Does the architecture and monumental workmanship of the past civilizations of ancient Egypt, Rome, and the Incas demonstrate management without administration and without definition of objectives? The answer must be a resounding ?NO!? In spite of this acknowledgment and for the purposes of this presentation, I will use the word ?new? in business and hope that the reader will follow my reasoning. The mining industry has unique characteristics in respect to other industries. It is multi-disciplinary, has a single purpose (majority for one metal), has two players (man and nature), and it involves high risks for generating environmental imbalance. Mining exploits non-renewable and finite resources, creates an unstable job market (work hard to have no work) and a speculative economic market with unpredictable prices ? a one-time payment for a finite resource with multiple recycling. On top of all that, the industry still operates within obsolete petroleum-based technology, utilizing practices that were designed two centuries ago. Today, we confront the challenges of the millennium with outmoded practices and management. Ordinarily, several styles of administration are standardized into a FRAGMENTED vertical system of organization. Mining has rigid objectives in production, with profitability as the focus from the beginning to the end. Citing the concept of safety, as an important facet of production is bombastic since, in truth, mining is an experimental industry that consistently reports high numbers of fatal accidents. In mining, we designed a process to work according to our objectives, demanding attention and supervision of all levels of management with a halo of parameters that are not assimilated into the design. We continue to perform a rigid style of management in an industry that is still not responsive to variations of the market ? losses in particular. The existing design process generates loss without capitalization and without response to said loss. This perception is reflected in a mindset that is only too ready to ignore mining liabilities. The reality of the enterprise has created an immense pressure from top to bottom in the hierarchy to do more with less. It is for all of these reasons that I propose to set forth a new essence for administration that encompasses an alternative vision and style in mining: Management by Loss. MANAGEMENT BY LOSS Management by Loss (MBL) is a systematic, integral process organized to quality control operation and the human profitability within the industry. It permits focus on achievable goals by utilizing the best practices (Mining Open-closing). Identification and characterization of loss in the process determine how objectives are defined, controlling the time limits to execute based on constant balance of mass, energy, water, and ?wastes? in each stage of the industry, in order to reach final objectives. The concept of loss can be defined by various criteria. Generally, it is the mass that could not make or arrive at its destination from a designed process or simply, it could not maintain balance. Otherwise, the design of the process describes the final point of the resource. However, those resources could not make their destination because of failure to use the best design, resources and TIME. The loss has typical characteristics such as Identifiable, classifiable, measurable, manageable, controllable, valuables, negotiable, avoidable, reportable, and monitoring. In the traditional scheme, these losses are not registered; they are made exclusions. We are trapped within a system, which was designed to obtain objectives of the industry in a specific timeframe. In the present style of administration, the focus is total - our emphasis in this treatise is in the loss. The current traditional report form contains only the most positive achievement of objectives, only the best of the exercise, humanizing numbers, without touching what we left behind or what we were waiting for to assimilate as a ?surprise account?(new account of liabilities). Management by loss is a method that redefines the concept of waste (waste zero) for controlling the mine operation under the equilibrium of the ecosystems. This method confronts the problems that impact our industry in this millennium. Understanding and quantifying losses (reserves, resources, time, energy, water, soil, materials, equipment, tasks, labor, ecosystems, etc) is a priority mandate for the industry and demands the application of a ?new ? style of administration by seeking to maintain balance instead of the disequilibrium that mining now creates in nature. It is necessary to answer questions such as: How can we minimize loss? How can the loss be assimilated during the life of the mine? What is the vision of mining in respect to the generation of waste? How can we convert liabilities into assets? In addition, the control of loss is determined in the achievement of the plan. Loss occurs because of a failure of the process in the original plan. Still we do not plan to fail but we fail to plan appropriately. It is a remarkable thing to accomplish and compel those objectives described in the original plan when that plan is designed with a determined budget. If not, we lose time and, of course, capital. Moreover, in Management by Loss (MBL), we can find answers to the following questions: What is the multiplier of productivity in mining? What are the influences of identification and characterization of loss and what is the level of efficiency of energy in order to achieve waste zero (effective cut off grade)? The challenges of mining in this millennium validate this new style of administration. Finally, it is important to point out that mining is entering into an era that has different rules, but the industry is still run by companies functioning with objectives from two centuries ago. They are trying to confront issues with concepts that are not designed for new tasks. Therefore, I ask you to consider this new style of administration of business under a vision of how the industry should be organized and managed, with an attitude of balance toward nature and social responsibility.

Jan 1, 2009