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By R. J. Pindred

Discussion by R.J. Pindred In his paper, Davis presents an overview of risk. He also introduces the Capital Asset Processing Model (CAPM) as a foundation for selecting the appropriate discount rate for a mining project. While applying portfolio theory is more defensible than the ad hoc adjustment of discount rates, the CAPM is not a panacea. CAPM shortcomings [The CAPM, as Davis stated, is expressed in the equation: ri=rf+pi4) where ri is the project discount rate rf is the risk free interest rate (3i is the project beta, and 0 is the market risk premium (rm - rf)] Application of the CAPM is more difficult than Davis indicates. Valuation is prospective, while the CAPM parameters are historical. Beta is determined from a regression analysis of historical data, while the beta needed for valuation is the expected beta. Betas are known to be unstable and the regressions that generate them often have low explanatory power. The difficulty of estimating a "project" beta must also be considered. Thus, the beta that is used in the CAPM will be based on the analyst's judgment. Like Cavender's discount rate, this judgment can lead to different project NPVs. Subjectivity in valuation cannot be avoided by a mechanical application of the CAPM. The risk-free rate, which Davis identifies as a short-term real rate of 4%, is also subject to scrutiny. A mining project is not a short-term investment and no single risk-free rate is appropriate for all of the cash flows. The hypothetical mine discussed in Cavender's paper is a six-year project. One might argue for the application of a risk-free rate from the Treasury yield curve at the duration of the project (in a bond-duration sense). This, too, is inappropriate. The risk-free rate should be matched to the timing of the cash flow. These rates can be determined by calculating the implied forward rates from the yield curve using a procedure known as "bootstrapping." It is likely that each of the project's cash flows would be discounted at a different rate. Commodity prices Davis criticizes the "ad hoc adjustment to the discount rate." Yet, in his discussion of the value of stochastic simulation, he suggests that the gold price be modeled as a "random walk, with or without a trend." This is essentially an arbitrary modeling of price risk. Consider that a liquid market in gold futures exists. The futures' price curve, which is closely related to the market's estimate of future spot gold prices, should be used to provide inputs to the model. This is especially true of a relatively short six-year project. Alternatively, as Davis correctly points out, a risk-averse investor can sell the commodity short to hedge price risk. Is it any more correct, in the portfolio sense, to account for price risk at all ?? References Cavender, B., 1992, "Determination of the optimum lifetime of a mining project using discounted cash flow and option pricing techniques," Mining Engineering, Vol. 44, No. 10, pp.1262-1268 Fabozzi, F.J., 1993, Bond Markets, Analysis and Strategies, Second Edition, Prentice Hall, Inc. Higgins, R.C., 1992, Analysis for Financial Management, Third Edition, Richard D. Irwin, Inc. Solnik, B., 1991, International Investments, Second Edition, Addison Wesley Reply by G.A. Davis Pindred discusses two issues related to my paper, the shortcomings of the Capital Asset Pricing Model (CAPM) and which commodity price values to use in the valuation exercise. Even though these topics are not directly related to the use or misuse of Monte Carlo simulation, they are important points to take into consideration in valuation exercises. Since I do not appear to have addressed these issues satisfactorily in my original paper, I will comment on each here. Pindred agrees with me that applying portfolio theory, and specifically the CAPM, to the selection of project discount rates is more defensible than ad hoc methods. But he then points out that the application of the CAPM to project valuation is more difficult that I indicate. It is true that the CAPM is a difficult tool for project valuation in general,. But the application of the CAPM to mining projects is one of the easiest I can think of. The biggest problem with using the CAPM for project valuation is coming up with an expected project beta. I suggest a project beta for gold projects of 0.45. The "true" value might be 0.35, 0.55 or whatever. Pindred correctly notes that the selection of the appropriate project beta is based

Jan 1, 1996

By Jack J. K. Daemen

A wide variety of subsidence prediction methods exist. They can be classified into empirical methods and mechanistic models. The empirical methods include profile functions and influence functions (Brzuner, 1973a,b; Kratzsch, 1974; Berry, 1978; Hood et al., 1981), the two empirical approaches of most practical value, if only be- cause they are readily programmed on calculators or computers. The profile functions have the advantage that they allow for ready determination of the necessary empirical parameters from field observations. They have the disadvantage of being restricted to subsidence calculations at a very limited number of points or lines above very simple (rectangular) mine geometries. This reduces greatly their practical applicability for damage predictions, which usually require estimates of strains, slopes or curvatures at structures that have arbitrary position and orientation with respect to planned mine excavations. Influence functions can be used to calculate subsidence at any point near an excavation of any in- seam outline. The main difficulty associated with empirical influence functions is the lack of uniqueness in the relation between subsidence and its cause, the convergence distribution over a mined excavation and its immediate surroundings. A secondary practical difficulty is the need for fairly arbitrary adjustments near the excavation edges, usually in the form of compensation zones (e.g. Brsuner, 1973; Hood et al., 1981). Determination of the appropriate empirical constants in influence functions is facilitated greatly when a direct mathematical connection exists between influence and profile function (several examples are given by Brauner, 1973 and by Hood et al., 1981), so that field data can be used to determine the parameters through backfitting of the profile functions, which is considerably simpler and more direct than backfitting of influence functions.

Jan 1, 1982

By BEN WANG, HAORAN LI, YALI FENG, JINRONG JU

Acidic wastewater is at present directly neutralized with lime or limestone, which wastes resources such as titanium, scandium and iron and generates a great deal of solid waste. This study proposes a novel approach for the separation and recovery of titanium, scandium and iron from acidic wastewater, and utilization of red gypsum. The proposed process not only recovers valuable metals from acidic wastewater but also treats the red gypsum that has previously been dumped.

Aug 1, 2022

By J. Loredo

Asturias, in northern Spain, emits 18 Mt CO2/year to the atmosphere, which supposes the biggest industrial CO2 emissions in the country. In order to avoid CO2 emissions to the atmosphere, keeping the availability of energy from fossil fuels, background studies focussed to the selection of favourable sites for CO2 geological storage are necessary. In Asturias, the options for CO2 geological storage are sequestration in deep saline aquifers or sequestration in unexploted coal beds. In the area, there is the biggest coal basin of the country and a great Palaeozoic sedimentary basin with appropriate silicoclastic or carbonated reservoirs and impermeable caprock for CO2 geological storage, located in proximity to thermoelectric power plants and other sources of CO2 emissions. All evidences suggest that CO2 storage in deep aquifers is the most interesting option but a legal planning and a technical regulation are still to be done. The possibility for CO2 sequestration in coal beds is modest and associated to the CBM commercial exploitation. It is necessary to have in mind that the feasibility of CO2 geological storage in Asturias apart of technical factors will depend on price of CO2 ton, legal conditioning and possibility to apply emission rights to projects.

Jan 1, 2006

INTRODUCTION Automatic controls are devices that assist operators by performing routine tasks faster and better than they could alone. Great strides have keen taken in the development of new processes and bigger machines to improve productivity, but these developments created the need for increased protection of machinery and labor. The new production-line techniques, or continuous processes developed, resulted in routine and, frequently, demoralizing jobs. The human race is not constituted mentally to perform routine operations. Devices were needed also to gather information automatically and perform routine functions. High-capacity plants incorporating large equipment

Jan 1, 1985

By G. A. Kosick, L. Kuehn

The design of an information management system (IMS) for a mineral processing plant requires prior consideration of many factors, which can be broadly categorized into two domains, process plant considerations and IMS considerations. The process plant considerations include: plant characteristics, management and personnel issues, existing organizational standards and policies, and the level of existing hardware and software systems. The IMS considerations include: system functionality, system sizing and desired performance, hardware components, software components, and system support issues. All of these aspects must be addressed in order to achieve a functionally successful and cost effective system. The purpose of this paper is to lay out these design issues and, in doing so, to provide process engineers with a guideline with which to tailor a system that is best suited to their specific application. The paper is completed by presenting an approach that has been used in two Canadian concentrators. Both of these plants have incorporated MillEX, a software system designed specifically as the central component of a mineral processing IMS.

Jan 1, 1993

By W. J. Halvorsen

Means for minimizing the disadvantages of thermal drying are suggested. The other ap¬proach of substituting other techniques in place of thermal drying is also discussed. Recent devel¬opments in fine coal screening dry down to 3.2 mm (0.125 in.) and 2.0 mm (10 mesh) offer an econom¬ical means in certain cases.

Jan 1, 1988

By Michael Karmis

This paper reviews the fundamental concepts involved in the development, application and validation of ground movement predic¬tion methods developed by Virginia Polytechnic Institute and State University (VPI&SU) over the past 12 years. Prediction techniques have included empirical or semi-empirical methods, such as the profile function, influence function and zone area methods, as well as numerical methods, based on a finite element formulation which utilizes field subsidence data. The former techniques have been integrated in the Surface Deformation Prediction System (SDPS) software package for personal computers, which allows for the calculation of any component of ground movement in any direction. Comparisons between measured and predicted subsidence and strain values are presented for a selection of case studies, which demonstrate the applicability, accuracy and regional validity of these methods for predicting surface deformations due to underground mining.

Jan 1, 1986

By R. Hogg

The factors which control the dewatering of fine coal by gravity/centrifugal drainage and by gas displacement (vacuum/hyperbaric filtration) are evaluated. A generalized model is presented and used to describe dewatering kinetics and to establish dewatering limits. Applications to the design of dewatering systems for fine coal dewatering are discussed.

Jan 1, 1995

By Vanessa M. Torres, Renato S. Costa

This work presents the experience of Cia. Vale do Rio Doce in using Diagnostic Leaching tests to characterize refractory ores and CIP tailings. With the diagnostic leaching results of the highly refractory gold ore from Maria Preta Mine (Brazil), a process flowsheet was defined for a feasibility study of possible process modification on the existing plant. With CIP tailings from its Fazenda Brasileiro and Caué operations the amount of cyanidable gold was determined to aid plant optimization.

Jan 1, 1995

Maptek I-Site laser scanning expertise and software technology is being used to map the geology and layout of the deepest underground laboratory to be established in the U.S. The Deep Underground Science and Engineering Lab (DUSEL) in the former Homestake gold mine in Lead, SD, will provide for scientific studies in particle and nuclear physics, geology, hydrology, geo-engineering, biology and biochemistry. The project, funded by the National Science Foun¬dation (NSF), will allow geoscientists and engineers to research the behavior of subsurface rock, minerals, water and energy sources

Jan 1, 2010

By R. Gerling

A computer program has been developed for finding a near-optimum schedule of the mining sequence for flat lying, tabular orebodies. The deposit is divided in blocks with equal areas and definite grades, thicknesses and ore contents. Mining is done by room and pillar method and trackless haulage to surface. Access from surface is by adits or ramps with additional vent raises. In total eight different general concepts for access and development can be realized. The optimum mining sequence is found by a heuristic method. Criterion is the maximization of the net present value over the lifetime of the mine. Specific stoping costs per t of ore are taken for con¬stant, whereas development and haulage costs for individual blocks and also sequences will be different. Correct ventilation and a technically sensible sequence are guaranteed. Beginning with a single block, neighbouring blocks are tested and an optimum stoping sequence is generated. The net present value of the total mining operation for the planning period is calculated, taking into account ore, which is mined during development. The program can also be used to investigate given mining sequences.

Jan 1, 1986

By R. K. Devala

In this paper, numerical approximation schemes, for solution of the mass transfer problem in mine ventilation have been developed by using three implicit finite difference schemes. Results from these schemes have been compared with the analytical solution for spatial and time increments, using the concept of Root Mean Square error. For implicit finite difference schemes, in general, the modified central difference scheme is better than the two other schemes at lower velocity. Also, at lower air velocities, implicit schemes underpredicted the concentration values. At higher air velocities, the Crank-Nicholson and Laasonen schemes provided better results than the Modified Central Difference scheme.

Jan 1, 1994

By G. P. Saseen, R. A. Haney

The US Mine Safety and Health Administration (MSHA) developed a model to estimate diesel particu¬late (dp) exposures in underground mines. The estimator uses in-mine measured dp concentrations or engine manufacturers' standardized emission data. Through a series of calculations, full-shift dp concentrations are estimated by applying standard engineering principles of ventilation, control technology and work cycle. This model, in the form of a computer spreadsheet, provides the mining industry with a method for estimating dp levels and determining the impact of various diesel particulate controls on occupational exposures to dp in underground mines. A detailed description of the estimator and several examples demonstrating the results are provided.

Jan 1, 2000

By N. D. Cristescu

An analysis of the interaction between a creeping rock and a yieldable lining is presented. The following cases are considered: an elastic lining, a lining made of circular shaft rings that may slide at their joints, a lining made of circular reinforced concrete panels with wooden compressible strips inserted between the longitudinal joints and a yieldable support that has a compressible broken-rock stratum between the support and plane rock. By formulating a mathematical model for the rock-lining interaction, one can optimize the sequence of excavation-lining application. To keep costs to a minimum, one can also choose the most appropriate lining for the corresponding rheological properties of the rock.

Jan 1, 1997

By D. S. Holmes

Biological processes for metal solubilization and ore beneficiation are in widespread use today. There are also some promising new applications of biotechnology in the areas of metal concentration and toxic metal cleanup. Recent progress in genetic engineering promises both to revolutionize the existing biological process and to expedite the adoption of the new biological applications. But before it can do so effectively, progress must be made in many areas of fundamental research and in biochemical engineering. These issues are addressed with special reference to the biotechnology of semi-enclosed containers (bioreactors), dumps, heaps, in situ and under- ground leaching, and with respect to the biotechnology of metal concentration. Finally, certain biological considerations for bacterial strain improvement are discussed.

Jan 1, 1987

By S. E. Phillipson

Underground mine mapping is a critical component of understanding the controls on ground instability. Many relatively localized examples of ground failure are associated with geologic features, such as faults, joints, compaction zones, or sedimentological transition zones. In contrast, long-running, directional roof falls are associated with regionally directed horizontal stress fields, which are induced by tectonic plate interactions in the earth?s crust. When stress-related features are distinguished from geological features, underground mapping can be an effective method for inferring the direction of horizontal stress at individual mines. Comparisons with data compiled in the World Stress Map confirm that underground mapping can be a valid method for determining the orientation of maximum principal horizontal stress at a variety of scales, ranging from individual mines to an entire mining district or coal basin. Comparisons are presented between the maximum horizontal stress directions inferred by MSHA?s Roof Control Division through underground mapping and the azimuths of maximum horizontal stress in the World Stress Map database for North America?s Pennsylvanian-aged Appalachian, Illinois, Black Warrior, and Arkoma Basin coal fields. The comparison indicates that azimuths are similar for both data sets, even where variations in the direction of horizontal stress are present. It is interpreted that inconsistencies in direction are attributable to near-surface affects such as deeply incised stream valleys, or to fault zones that represent heterogeneities in the crust.

Jan 1, 2009

By M. P. Meehan

The purpose of this paper is to present the key elements in a system; study of the electrical system for a timing and/or tilling operation. The ability of an electrical system to function in a reliable fashion at its proper levels is essential for an operation to be successful. A system study consists of a load study for determining the capability of the electrical network to provide power to the various loads and a short circuit study for determining the capability of the electrical protective equipment to properly protect against fault conditions. The sequence of events in a system study is data acquisition, determining the electrical parameters and analyzing the ability of the system to meet these requirements. If the system is small, herd calculations will be the manner in which the study will be conducted; if it is large then commuters will be used. A load study has as its objectives the determination of the capability and reliability of the source of power, transformers and conductors to satisfactorily deliver power to the loads at an acceptable voltage level. The Information required is a single line diagram showing the source, transformers, conductors and loads.

Jan 1, 1980

By M. V. K. Reddy

A differential flotation process for recovery of molybdenite from chalcopyrite concentrates produced at Rakha Copper Concentrator, Bihar, India has been developed. The flowsheet is simple, and relatively inexpensive and yields a concentrate assaying not less than 45% Mo at a recovery of minimum 65%, starting from chalcopyrite concentrate assaying 0.4% Mo. The consumption of the main depressant used, sodium sulphide is not more than 25 kg/t of copper concentrate processed without steaming; and with steaming the consumption was brought dorm to less than 12 kg/t of concentrate. Further reduction is possible by optimization of steaming parameters. Based on laboratory experimental results, further tests were conducted on concentrator site and process design parameters were established for design of commercial plant.

Jan 1, 1982

By R. V. Ramani, S. Tan

In this paper, several commonly used computer truck-dispatching criteria are evaluated. A computer-oriented truck-dispatching and production simulator was developed to provide data for comprehensive cross comparison among the dispatching criteria. The definitions, primary considerations, characteristics and performances of these dispatching criteria were investigated. From the simulation results, it was concluded that, in general, no one criterion can dominate all others. However, several dispatching criteria that have good potential to increase performance can be identified. All basic dispatching criteria, including minimizing truck waiting time, waiting shovel with minimum waiting time, minimizing truck saturation, maximizing truck momentary productivity or optimization of truck routes, provide local optimal solutions. To obtain a direct global optimization solution for this complex stochastic process does not appear to be likely Therefore, the search for an optimal dispatching criterion that will fit all conditions may not be realistic. It may be necessary to search for a hybrid combination of the several truck dispatching criteria that have good potential for a given situation. An approach to selecting such a hybrid dispatching criterion is presented.

Jan 1, 1993