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By Bruce D. Hansen

The complexity of large geographically diverse or multicommodity mining companies requires a corporate structure, which provides the maximum long-term effectiveness. Structure models exist along the spectrum of centralization to decentralization. This paper examines the trade-offs of flexibility, cost, decision making, consistent strategies, and corporate control associated with different structural models as applied to mining companies. The mining industry typically lends itself to a business unit model. However, the degree of decentralization depends on size, proximal operations, technical complexity, product mix, geographic spread, mining methods employed, and the inherent capabilities of an organization.

Jan 1, 2001

By Dwane K. Johnson

INTRODUCTION The small mining company faces the dilemma of how to finance the development of its properties because it doesn't have the financial resources to pay for the development costs from its own funds and doesn't have the financial strength which will enable it to borrow the money needed for development. However, with a little imagination and the right set of circumstances, a financing can be arranged for the small mining company. This paper is an attempt to describe the fundamental steps on how such financing can be obtained --in other words--what is required to provide ad- equate capital at a low cost for developing and bringing a mining property into production. Innovative financing follows from this. The basic keys for building and maintaining a successful mining company are "the four M's": Management, Market, Mine, and Money. The writer believes their order of importance is as presented and each is a building block required in order to obtain the type of financing that best suits the borrower and lender. MANAGEMENT Management must be experienced, highly organized, realistic, able to take advantage of opportunities and fulfill promises. Mine financing requires a variety of skills and concentration on the part of management. Management should have a thorough understanding derived from experience in geology, construction, mining and metallurgy and environment, marketing, and financial matters. Management must realistically visualize what will be produced at what cost and truly evaluate the risks associated so the proper security can be correctly designed. Since risk cannot be eliminated, the objective of management is to identify the risk which will be present in a given venture and assess the level of that risk which will be acceptable to the firm. Generally the risk which is present is subject to little or no modification. After management identifies and measures the acceptable risk the firm will proceed in a way that it will be least exposed. Management must determine its long-term objectives and strategies within the context of a constantly changing world. This question must be addressed before examining the sorts of risk which affect the development and operation of a specific property. The compilation and interpretation of "hard data" by competent people is good to a point but the experience and instinct of seasoned individuals are the important factors in management choosing a long-term direction for the corporation. The attitude towards risk greatly affects the goals of the corporation. Major risks in a mining project can be placed in four categories: 1. Market - Price, demand, substitution. 2. Costs - Capital, operating, financial. 3. Regulation. 4. Taxation. The feasibility study for a project is the fundamental tool used in the management of risk. Management should employ an experienced team with an established and well-understood set of ground rules for the preparation and assembly of a feasibility study. The necessary degree of realism is built into all levels of the study and if the project is technically feasible, the company's hurdle rate is then used to discount the base-case project cash flow in order to determine its financial viability. Understanding the geological significance of the mineral deposit is critical. There should be strong interplay among the pure regional geologist, the detailed mine geologist, the mining engineer, and the metallurgical engineer. The collaboration among these different disciplines will yield a feasibility study that is more reliable. The essence of this work must be appreciated and understood by the executives planning the financing. It is vital that they thoroughly understand the risks and make the proper risk assessments to cope with our rapidly changing market environment. Projecting future revenue values is paramount and is subject to much estimation. One way to mitigate fluctuations and the risk of falling prices is by selling production for future delivery. MARKET Since mining is a worldwide industry it is mandatory that bankers be aware of what is occurring in the marketplace, both foreign and domestic. The marketing of the production is a very important facet when considering financing for the small

Jan 1, 1987

By Hans von Michaelis

This paper examines the process options available for treatment of "refractory" gold ores. As more and more of the easily leached oxidized gold ore zones are exhausted, the pressure is on to find more economical ways of treating refractory gold ore deposits. Historically, refractory ores were generally concentrated, e.g. to make a flotation concentrate that could be roasted. A major development is taking place in the USA in which ores from which gold cannot be concentrated well by flotation are being treated using whole ore oxidation processes prior to cyanidation. Refractory gold ore treatment processes are generally expensive to install and operate. Thus, for a refractory gold ore project to be economically viable, the grade must generally be higher than for free milling gold ores.

Jan 1, 1993

By Bruce W. Cavender, Brian L. Granger

The leaching characteristics of non-homogeneous ores have traditionally been difficult to assess in laboratory tests. A result of the large sample size necessary to ensure representativity, this difficulty is most acute for ores containing nuggets or other irregular occurrences of precious minerals. Consequently, small-scale leaching tests are often regarded as indicative rather than conclusive. The predictive nature of leaching tests can be improved by applying the experimental design concepts of blocking and randomization. In the case of column leaching, experimental 'blocks" are constructed with the same number of columns as there are separate test conditions. These blocks are treated identically throughout the test, with differences between columns within each block being the variables of interest. To maximize the uniformity of the blocks, randomization procedures are employed in the preparation of the sample and conduct of the test. The initial ore sample is screened and individual column charges composited from randomly selected increments from each size fraction. The leaching order, daily solution analyses, and processing of leach residues are similarly randomized. The observed differences in leaching performance between the columns in each block are compared to determine the over-all outcome of the test. A statistical analysis using t distributions gives a quantitative measure of the reproducibility of the outcome.

Jan 1, 1995

By Paul Clifford

The Florida Institute of Phosphate Research (FIPR) is an independent, state of Florida research agency. It was created in 1978 to conduct research to enhance the competitiveness of the Florida phosphate industry. The institute also conducts research to prevent, minimize or rectify environmental impacts caused by the industry. And it helps educate the public concerning phosphate-related technology and issues. FIPR is funded by a severance tax on the industry and is governed by a five-member board of directors appointed by the governor. FIPR's research is playing a role in enhancing the competitiveness of the Florida phosphate industry. Its technology research program seeks to improve surface mining and pipeline transportation while reducing the energy cost for pumping phosphate matrix. It is developing new and improved methods of beneficiation and fertilizer production. This includes new process flowsheets and on-line analyzers and process control methods. FIPR is also developing uses for the phosphogypsum byproduct of phosphoric acid production and evaluating the risks associated with its uses.

Jan 1, 1998

By J. D. Morgan

Demand for nonfuel minerals depends in large measure on economic activity, which rose in each quarter of 1985. However, despite 1.7 million new housing starts and a 7% increase in motor vehicle production, many domestic metal mining operations experienced continued difficulties as a result of import competition, greater use of newer engineered materials, emphasis on multi-unit housing, and downsizing of motor vehicles. Recognizing the continued difficulties of the domestic metal mining industry, many corporations made major efforts to retrench and rationalize - selling, closing, or spinning off less profitable operations, renegotiating labor contracts, and inviting increased participation by foreign firms. About 15% of US energy was imported in 1985. This included $52 billion worth of crude oil and refined products, adding significantly to the overall merchandise trade deficit of $149 billion. With the exception of a few large-bulk, low-value raw materials, most minerals move relatively freely in world trade. The strong dollar encouraged imports and made exporting more difficult US nonfuel minerals trade deficit totalled $17 billion. The US continued to rely on imports for many important strategic minerals in 1985 (see accompanying Table). Increased pressures for protection included major mineral products such as steel, ferroalloys, and copper. But President Reagan, in his Feb. 1986 "Economic Report to the Congress" stated: "Our international trade policy rests firmly on the foundation of free and open markets." He also stressed the need for fair trade and more open markets internationally. The National Critical Materials Council, created by law in the latter part of 1984, was activated in the latter part of 1985. Its first public hearing was held in January 1986. The Council is to review the nation's materials posture and advise the President on such matters. Compared with 1984, the value of US raw nonfuel mineral output rose 2%, to $24 billion. This supported the production of $244 billion worth of processed materials of mineral origin. Raw steel production - a major indicator of both material use and mineral production - fell 4% to 81 Mt (89 million st). Consequently, domestic iron ore production fell to 49 Mt (55 million st), about 97% pelletized. Iron ore imports fell 7% to 16 Mt (18 million st). Raw steelmaking capacity fell 4% to 117 Mt (129 million st). Pacts with 16 leading steel exporting nations have been negotiated in an effort to reduce import penetration of the domestic market. Domestic producers of bulk ferroalloys of chromium, manganese, and silicon operated at about 40% capacity. The US mined no manganese or chromium. Only a small quantity of ferronickel was produced from domestic laterite mining in Oregon. Molybdenum production increased slightly to 49 kt (54,000 st). Mine shipments of tungsten, another mineral tied to steel production, also fell slightly to 1.1 kt (1200 st) of contained metal. Even the domestic aluminum smelting industry suffered reverses as high stocks and low prices reduced production 16% to 3.5 Mt (3.8 million st). Similarly, imports of bauxite fell 7% and alumina 10%. Production of magnesium metal fell 6% to 136 kt (150,000 st), while titanium metal production remained unchanged at 22 kt (24,000 st). Copper mine production was unchanged at 1.1 Mt (1.2 million st). Copper refinery production fell slightly to 1.1 Mt (1.2 million st). Lead mine production rose 24% to 400 kt (440,000 st). Zinc mine output was down 10%, to 225 kt (250,000 st). Refined lead production increased 28%, to 510 kt (560,000 st). Primary slab zinc production fell 5% to 240 kt (260,000 st).

Jan 5, 1986

By Dan B. Kivari

A key operation of any milling circuit is grinding. Over the last two decades, large diameter semiautogenous grinding (SAG) mills have become the preferred primary grinding mills. The drive systems became more complex as the size of the mills became larger, during which time operating and design experience for SAG mill accumulated. Considerable reliance is now placed in power electronics to provide flexibility in SAG mill operation to meet the demands of lower operating costs. Most earlier SAG mills were designed to operate at fixed speeds. Present day SAG mills can operate at a fixed speed or variable speed through the use of an ac synchronous motor or dc motor. This flexibility, however, comes with an increase in capital and operating costs. Since the capital and operating costs of a project directly affect the project's rate of return, the selection of a SAG mill and its drive system should depend, in part, on the impact that the extra cost makes on the project. This impact can be measured by performing an economic analysis based on net present cost (NPC) calculations. Although the NPC calculation is an important factor in the grinding mill selection, other factors, such as reliability of mill drives and power source, are important elements in the decision making process. This article examines how the NPC calculation, plus reliability and power source, influence SAG mill selection.

Jan 1, 1992

By James M. Reichman

Waterjet assist of mechanical cutters has been demonstrated in a variety of laboratory studies as well as on field equipment. As this technique becomes more widely accepted, it will be necessary to develop methods of minimizing the horsepower and water requirements. In machines such as roadheaders, continuous miners, and longwall shearers, the use of waterjet assist can be optimized through the development of phasing valves. Phasing valves will allow only the cutters in contact with the rock to be assisted. Since only 30 - 40% of the cutters are in contact with the rock, the saving power is significant. Flow Industries has developed a phasing system for use on roadheading machines. This system allows the operator extensive control of the angle of assist as well as the quadrant being assisted. This system could be greatly simplified for production machines and adapted for use in continuous miners and longwall machines.

Jan 1, 1985

By A. Bumanis, K. S. Bawa

INTRODUCTION A rail rapid transit system called the "Metro" system is presently under construction in the Nation's Capital area. The agency responsible for the design and construction of the Metro system is the Washington Metropolitan Area Transit Authority, an independent tristate organization set up under an Act of Congress and financed by federal, state, and local public funds supplemented by revenue bonds. When completed, the Metro system will comprise nearly 100 route miles. About fifteen percent of this mileage is now under construction, while designs for the-remainder are in progress. The system is scheduled for completion in about eight years at a cost of approximately 3 billion dollars. The Metro system will involve nearly all types of construction generally used for rapid rail transit projects. About half of the mileage will be underground, comprising approximately 16 miles of rock tunnels, 10 miles of earth tunnels, and nearly 21 miles of cut-and-cover construction in earth (see Figure 1.). The remaining 51 miles of the system is planned to be constructed on the surface as at-grade or elevated structures. The system includes 86 passenger stations, 53 of which will be underground structures. Twelve of the underground stations will be large size chambers in rock while other underground stations will be constructed in earth as cut-and-cover structures. Thus, about one-fifth of the system will be designed as underground structures, namely tunnels and stations, in rock. Such designs in rock resulted from the existence of bedrock (schistose gneiss) at reasonable depths generally in the north and northwest

Jan 1, 1997

By J. E. Taylor

A detailed planning and design project has been undertaken at Callide Coalfields, as the first step towards implementing a fully integrated mine graphics system. The system, when fully installed, will support applications ranging from business graphics through to terrain modelling and computer-aided design. The conceptual design which will accomplish this is presented. The problems of retrospectively applying graphics standards to existing applications are discussed, and a practical solution outlined.

Jan 1, 1986

By C. V. Deutsch, J. B. Boisvert, J. L. Deutsch

Data used to build geostatistical models come from a wide variety of sources with potentially differing sample errors and volume supports. Typically all available sample measurements are pooled together for statistical analysis irrespective of the quality of the data. The sample data is used to assess spatial continuity, make local estimates and assess uncertainty. A new methodology is proposed to simplify accounting for samples of differing quality. The result is improved estimates with higher weights assigned to high-quality samples, while low-quality samples receive less influence in resource estimation. A new dimension, d, is introduced and calibrated to account for sample error and/or volume during estimation. The addition of an extra dimension can be easily incorporated in existing kriging or inverse distance workflows. The only additional parameters required are the sample error and volume for each datum. The methodology is demonstrated and the improvement in local accuracy is documented. Extending the dimensionality of the domain to four (three spatial dimensions and the additional d dimension) requires a valid 4D variogram model; therefore, the spherical variogram model is generalized to arbitrary n-dimensions.

Jan 1, 2011

By James J. Fallen

In this paper we are going to look at some things that may happen to the industrial minerals industry in the next decade. First, some concepts and definitions. What are industrial minerals? Not everyone agrees on an answer to this. So let's look at some of the opinions. Some say that industrial minerals are non-metallic minerals. As you well know, metallic minerals are used as a source material for metals. Copper, lead, and zinc are extracted from metallic minerals. But, some metallic minerals are also used for other reasons. Bauxite is used as a source of alumina and aluminum. It is also used as proppant in well drilling, as an abrasive, as a refractory material, and as a source of aluminum-based chemicals. So bauxite is both metallic and nonmetallic. There are other examples, too. Bastnasite is a source of rare earth metals and alloys but its concentrate is used in fluid cracking catalysts. Phosphate rock is an industrial mineral when used for fertilizer, but it is also the source of phosphorus. Ilmenite and rutile are sources for titanium dioxide pigments as well as titanium. So the nonmetallic designation is not adequate to define industrial minerals. Some say industrial minerals are called such because they are consumed in industry. How about your cat's litter box? Is that industry? Huge amounts of montmorillonite, attapulgite and other sorbtive minerals are pelletized and calcined to make animal litter. Doctors are trying to get people to cut down on their salt consumption. They are against people eating industrial minerals. When diamonds are a girl's best friend, they are not industrial minerals; when they are grinding and polishing media, they are. These examples show that industrial minerals are not exclusive to industry. Regardless, here is my list of industrial minerals: Abrasive Materials - Bentonite Antimony (Oxide) - Borates Asbestos - Calcium Carbonate Attapulgite - Diatomite Ball Clay - Dolomite Barite - Feldspar Bauxite (and Alumina) - Fire Clay Fluorspar - Pyrophyllite Fuller's Earth - Rare Earths Graphite - Salt Gypsum - Sand and Gravel Kaolin - Silica Sand Kyanite - Soda Ash Limestone - Sodium Sulfate Magnesite - Spodumene (Lithium) Magnetite - Sulfur Mica - Talc Nepheline Syenite - Titanium Dioxide Perlite - Vermiculite Phosphates - Wollastonite Potash - Zeolites Pumice There is some overlapping. Fuller's Earth takes in some attapulgite, bentonite, and other minerals, depending on the market. Some would like to distinguish industrial minerals by the market emphasis they receive compared to fuels, metallics, and precious metals. But even there, strict logic fails. Some industrial minerals are commodities. They are sold on a price basis against industry product specs, usually in large volumes. Phosphate rock, potash, sulfur, salt, soda ash, and other materials fit this category. Some are almost custom-designed for end-use and meet performance specs. These are sometimes called functional or specialty industrial minerals. Examples of these are ground calcium carbonate, water-washed kaolin, cosmetic grade talc, filtration grades of diatomite, perlite, and vermiculite. To determine prospects for the decade ahead, regardless of our

Jan 8, 1984

By J. Paul

Mining engineers in charge of open pit mine planning very often face decision making situations dealing with the selection of the most economical method for the removal of overburden. Ripping versus conventional drilling and blasting are the options considered. The choice of a particular overburden removal method depends upon the physic-mechanical properties of the overburden material as well as the various cost factors involved in the process. The analysis of techno-economical factors involved in different methods of overburden removal needs detailed study and investigation by a technical expert. But the expert system "Fragmentation System Design" has been created in a way such that it will help and expedite the decision making process relating to overburden removal in surface mines. Furthermore, this expert system can be used for detailed design aspects of overburden removal in open pit mines.

Jan 1, 1988

By Leonard Sargeant

The Pocahontas Coal Field consists of eight mineable seams of low-volatile coal in southern West Virginia and Virginia. The deeper seams, especially the Pocahontas No. 3 and No.4 Seams, under heavy cover and below drainage are notoriously gassy. Methane in the Pocahontas Field is generally thought of as being confined in the coal itself, rather than in mud slips or clay veins. Furthermore, it is characteristic of Pocahontas coal to retain its gas until the coal is broken and removed from the solid. Because of this inability for gas to escape from unmined coal, entries developed around large blocks are seldom of significant value in bleeding off methane before pillar extraction begins. This is evidenced by the fact that it is not uncommon to find gas liberated during the mining of chain pillars and barriers which have been developed for several years. The Pocahontas Fuel Company develops almost all solid coal by conventional methods with shuttle car haulage. To provide the maximum productive capacity without compromising ventilation and safety requirements, the Company has adopted standards for ventilating 5, 6 and 7-entry sections.

Jan 1, 1960

By William H. Schiffbauer

Research is being conducted toward making underground mining equipment autonomous. This will facilitate improvements in safety by relieving workers of dangerous tasks and will increase production by providing more accurate control with less down time.. A Bureau of Mines developed microcomputer network has enhanced this research by permitting a group of diverse computers to interact with a mining machine as well as with each other over a common data link. The network is composed of specially integrated off-the-shelf hardware and industry-standard operating system and programming languages. Using the network, researchers can conduct various experiments with the mining machine using a diverse group of intelligent sensors, computers, and microcontrollers. Descriptions of the mining machine, the mining machine control computer, control algorithms, -the microcomputer network architecture, and communication protocols are discussed.

Jan 1, 1989

By Terrence J. Stobbe

On the job injuries to the musculoskeletal system are probably the oldest of the industrial safety problems. Long before we had pinchpoints to guard, chemical vapors to ventilate, and noise to enclose, people were getting strains, sprains, and sore backs from their work activities. In spite of the age of the problem, it remains a long way from being solved. The past ten years have seen a significant commitment by the sci¬entific community to understanding the problem. Engineers, scientists, doctors, and epidemi¬ologists have been involved, and as a result, today we have a much better understanding of the problem. The first step in understanding a problem such as this is to explore its history and epidemiology. The research done by Chaffin (1977), Snook (1970), Ayoub (1978), the ILO (1962), and others, led NIOSH to publish its Work Practices Guide for Manual Lifting in 1981. The guide was based on research carried out in general industry, but subsequent research by Stobbe (1983) and Peters (1983) has suggested that the nature of the problems producing injuries in underground mining is the same as in general industry. The problems are more intense in the mining environment.

Jan 1, 1984

By Jerome C. Neyer

Within most of Canada and the northern third of the United States, the soils overlying bedrock are of glacial origin. Tunnelling in glacial soils presents numerous challenges to the contractor, including abrupt changes in soil type, boulders and glacial erratics, water bearing fine sands and silts, toxic or explosive gases, and glacial till. This paper examines the available techniques for geotechnical exploration in glacial soils; the relationship between subsurface conditions predicted by various techniques and conditions actually encountered during tunnel construction; and potential improvements in the planning and implementation of geotechnical explorations. Case histories of geotechnical exploration and tunnel construction in glacial soils are also reviewed.

Jan 1, 1985

By Rob Dorey

The disposal of mine waste continues to be one of the main controlling factors in the economics and feasibility of project development. Particular to gold and precious metal mining, waste disposal is further complicated by the environmental and political implications of the use of cyanide. Regulatory compliance criteria have partially dictated and can be anticipated to further dictate the approach and methods of tailings disposal. To develop practical, economic, and environmentally acceptable tailings disposal systems within these criteria requires the use of common sense approaches and the application of available technology. Waste disposal is typically considered during the pre-feasibility stages of project evaluation. At this time, the main emphasis is on the economics and practicality of extracting the metal values from the ore. Frequently, the result of this is that the nature of the tailings and the ability to dispose of the tailings is prejudged. It is also frequently the case, however, that during the feasibility stage and project permitting, the requirements for tailings disposal become paramount.

Jan 1, 1998

By Osamu Shoji, Mamoru Kato

In order to continue improving the quality of telecommunication services to meet the expectations of the people and to increase reliability in the case of emergency such as disasters, Nippon Telegraph and Telephone Public Corporation (NTT) is now constructing cable tunnels which connect main urban telephone offices. However, almost all the large cities in Japan are built in river deltas, so that their chief underground features are low strength fluvial deposit and a high ground water level. In this saturated soft ground, the ground surface at an installation site has occasionally subsided through deep excavations for cable tunneling construction. As these settlements have sometimes caused accidents, especially in densely populated large cities, NTT has made much effort to avoid such accidents. These accidents have occured mainly in flexible sheeting due to its inward movement. Therefore, after the investigation into forecast method of sheeting deflection with accuracy, NTT has reserched a system which forecasts ground surface settlements. This paper describes an outline of the ground settlement forecast system and practical example on the site.

Jan 1, 1979

By Richard Lovat

INTRODUCTION Soft ground tunnels may be above the ground water table or they may be subaqueous. The ground may be clays, silts, sands, gravels, glacial deposits, boulder tills, and any of these in any combination. Because of the relatively low strength and deformability of soils, difficulties often arise in soft ground tunnelling. These soil characteristics and resultant tunnelling difficulties, have had a direct influence on the development of "Lovat" Tunnel Boring Machines. We have been required to recognize and adapt to unusual ground conditions and to follow through with design, fabrication, and field maintenance to ensure dependable, trouble-free operation. The basic "Lovat" machine is a fully shielded, wheel-type with the cuttinghead driven by a monorace type bearing with gear drive incorporated in the bearing. Mechanical innovations have been added to the basic machine which complement the resources of manpower, equipment, and materials available to the contractor for a specific operation. FULL FACE SUPPORT The installation of hydraulically operated closure doors or flood control doors, at the cuttinghead, is one of the early "Lovat" technical innovations. Flood control doors provide full face support in running or flowing ground. In water bearing sands and silts the excavated material can

Jan 1, 1981