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By Stephen Semeniuk

Discussion by Stephen Semeniuk Discussion As a valuator and SME member, I view Ross D. Lawrence's position as based on unproven and faulty assumptions made with regard to the pragmatic evidence presented in his paper. Moreover, his call for the inclusion of all mineral resources in discounted cash flow valuations is redundant, if not irrelevant, as there are procedures that already take all classes of mineralization into consideration for valuation purposes. In my experience as a valuator, I find that Canadian securities regulators are more than accommodating in allowing any valuations of mineral properties to be based on cash flow calculations. In other business areas, the same regulators usually reject discounted cash flow valuations of projects or businesses with no operating history. Instead, the regulators prefer valuations to be based on other transactions tested in the marketplace. Valuations based on actual market transactions are less subjective than discounted cash flow calculations and/or the capitalization of arbitrary, untested or undemonstrated earnings projections. In the mining and minerals sector, such projections may be made by persons not qualified to make such projections. In support of this statement, I direct readers to the article "Valuation of mineral properties which do not contain exploitable reserves" by Lionel C. Kilburn, which appeared in the August 1990 issue of the CIM Bulletin. To quote from the article: "Value of a mineral property depends basically upon metal prices, recoverable grades, mining and metallurgical practices, commodity supply and demand, and political-economic conditions, all of which vary with time. Five fields of expertise influence the value of a mineral property: •geological engineering, •commodity markets, •financial markets, •stock markets and •mineral property markets. The skills of geologists and engineers properly apply to the first field of expertise. Knowledge and consideration of the other four fields is important, but such advice is more properly sought from marketing experts, economists and stockbrokers." Securities regulators have created no hardship for valuators by excluding unsubstantiated resources in discounted cash flow valuations. In the field of engineering, best design practices apply. A margin of safety is built into the design criteria for any new equipment or structure that will exceed normally expected load levels and stresses, even though such considerations imply higher front end costs. In accounting, the comparable operating principle is conservatism. It explains why, for balancesheet presentation purposes, inventory is stated at cost or market, whichever is the lowest value. Similarly, when the engineering or geoscience-based valuator plays in the field of finance, the rules of accounting and applied economics apply. Regulators in their skepticism of income-based valuations are in tune with similar views already expressed in mining literature. To quote H. Van Tingley, in Mining Magazine, July 1996: "... the DCF method has inherent dangers when applied to undeveloped resources. Firstly, it presents an often-undeserved aura of accuracy. A DCF value is no more accurate than the least accurate of the assumptions incorporated into the calculation - and assumptions

Jan 1, 2003

By Nellie E. Guernsey

The Call for Papers described the session as "Top down applications; management tools for decisions, planning, investment/finance, and negotiations." In order to attract papers, and know which ones to include as well as those to reject, it was necessary to (1) define the executive suite, (2) review what had been done in previous APCOM symposia, and (3) find out what's happening now, what isn't being done, and what can be predicted. To accomplish this, especially the third task, senior managers throughout the mineral industry were generous with their time in telephone and personal interviews. Five papers were selected for presentation at the symposium and inclusion in the proceedings; the content is divided between the Executive suite in the mineral industry and those elements which apply to any Executive Suite. The Executive Suite is the top portion of the organizational tri- angle (I), those to whom the managers of functional areas such as exploration, production, finance, and marketing report. The make-up and specific activities within an executive suite reflect the organization and culture of its corporation. As there is no typical corporation, there is no typical executive suite; however, those who work within the executive suite typically do not have day to day operational responsibilities and either are, or report to, the Chief Executive Officer.

Jan 1, 1989

By Christopher Haycocks

Subsidence induced innerburden shearing and stress fields, whether active or passive, frequently contribute to significant ground control failures in overlying seams. In this paper proven multi-seam technology is used on upper seams to forecast and quantify the magnitude and severity of damage and the increased mining risk due to interaction. Increased upper seam ground control problems are demonstrated using hazard mapping which provides a viable technique for utilizing damage predictions in design.

Jan 1, 1986

By R. C. Guimareãs

Serrana's deposit contains three types of ore: oxidized, micaceous and silicate-carbonate. The results presented refer to characterization and fundamental studies performed on fractions resulting from the purification of five samples from the silicate-carbonate type collected in the mine. Each type was purified and submitted to mineralogical characterization, zeta potential determinations, and microflotation experiments. The samples, with exception of the barite, are mineralogically complex and the selectivity between apatite and gangue minerals is poor. Under the current state of art, it is impossible to feed the plant with the silicate-carbonate ore, unless it is blended with the standard oxidized ore.

Jan 1, 2002

By José Salim, T. V. Subrahmanyan

The occurence of primary stratiform and vein gold deposits in the Precambrian rocks of Northeastern Brazil is discussed. The stratiform deposits are related to clastic sediments (quartzites and conglomerates). The veins are associated with quartz and sulfides and are structurally controlled by shear zones. The gold was recovered for a long time by small miners. Developmental programmes for large scale mining are now envisaged. The recovery problems and gold economics are also discussed.

Jan 1, 1988

By Irwin H. Reiss

Gentlemen, the title of my paper is Surface Mining An Interim Land Use. Surface mining has become one of the major controversies of our time. This has happened in spite of the fact that all surface mining to date has involved only 6 million acres out of a total of 2300 million or approximately one-fourth of one percent of the total land area in the United States. I'm not going to dwell on whether peoples' perspectives are out of focus in light of the area involved, the energy crisis, national security, or the international balance of payments problem. While these things are all critically important, it is not the function of this paper to relate to them. Maybe the amount of attention attracted to surface mining is out of proportion to a lot of other things, but I don't feel that we should use that as a basis for procrastination. However, let me categorically state that anything that affects the surface of the earth is a form of land use --- be it an interstate highway, a power plant site, a golf course, a corn field, a strip mine, or the plot of ground on which your house is located.

Jan 1, 1974

By D. A. Huggins

Column flotation is finding increasing use in the flotation of copper, molybdenum and other heavy metals and coal. Columns have proven operational, cost and metallurgical advantages which caused us to investigate their use in the proposed Escondida flowsheet. A comparative pilot plant test with 35 tons of ore showed that one column can replace three stages of cleaning and result in a significantly higher concentrate grade with no loss in recovery.

Jan 1, 1987

By Thornton L. Neathery

A small area in the Alabama Piedmont was studied to determine if metallic enrichment was associated with local magnetic anomalies. Cores from two holes in these magnetic anomalous areas have sulfide (pyrite, pyrrhotite, chalcopyrite) film on slicken-side and fracture surfaces. Two hundred and fifty soil samples were collected from the top of the "B" horizon on 1, 000 foot centers over the general trend of magnetic anomalies. Soil samples were leached with a 1:2. 7 mixture of HF and H2SO4 and the dilute filtrate analyzed for Cu, Pb, Zn, Ni, Co, Cr, Mo, and Cd, using atomic absorption methods. Concentration-value maps were prepared for each element. Small areas of anomalous concentrations were defined for Cu, Pb, Zn, Mo, and Ni. Some of these areas generally coincides with magnetic anomalies. Concentration values (ppm) range from: Cu 165.0 - 0. 5; Pb 265. 0 - 0.0; Zn 1386.0 - 43. 0; Ni 187.0 - 10.0; Co 207.0 - 6. 5; Cr 117.5 - 2.0; Mo 95.0 - 0.0; and Cd 32. 5 - 2.0. Studies of other magnetic anomalies appear warranted.

Jan 1, 1972

By Tracy E. Chantson, Brian R. Green, Kenneth G. Ashurst

Work that has culminated in the manufacture and testing of a old-selective resin on a pilot-plant scale is dcscribed. Following a brief discussion about the nature of commercially available resins which identifies them as poor candidates for a gold extraction application, the improved properties of the new type of resin are illustrated using results from comparative loading tests. Further results from continuous countercurrent extractions using synthetic leach liquors and elution work using thiourea as the eluant demonstrate the superiority of the new resin over commercial resins and hence, its potential for use in a resin-in-pulp process for gold.

Jan 1, 1989

By E. Topuz, J. Mastoris

The problem of defining the optimum final limits of an open-pit mine has challenged the mining industry for the last three decades. The difficulty results mainly from the great number of variables involved and from the sheer computational effort required in real-life applications. An actual lignite deposit is used in this study to introduce and apply a new methodology that can be used as a basis for surface-mine design optimization. A geologic-reserves model of the deposit is first developed with the use of an integrated geostatistical-modeling package. The model is transformed into an economic one through the use of flexible objective function formulation(s). The final open-pit limits are then optimized using a competent commercial optimizer, and comparative-sensitivity analyses are performed to study the effect of some basic mining and economic parameters on the optimal pit design. The conclusions drawn can develop useful guidelines for decision making by the mine operator.

Jan 1, 1996

By Ralph Bernstein

The processing of earth observation sensor data by digital technology is almost two decades old. Only recently, however, has this technology become practical and economical. The reasons for this are interesting to analyze, and they provide some insight into what the future may bring. Some of the earlier activities and their limitations, current systems and their applications, and future technology direction are summarized.

Jan 1, 1979

By Bruno C. Boik

INTRODUCTION Cost Management is the evaluation and control of project scope, budgets, and costs with the objective to minimize costs and maximize the benefits to be derived from the use of project resources in conformance with Criteria stipulated or approved by the Owner. In order of importance, Cost Management is one of the most prominent Project Management functions because of its impact on the financial success of the venture. Cost Control and Cost Accounting are essential parts of Cost Management. The principal objectives of Cost Control are to monitor project commitments and expenditures, and measure performance for the detection of variances from acceptable standards and from control budgets so that timely action can be initiated to minimize costs. Cost Control is evaluation of current costs and projection of future costs, rather than the reporting of actual costs. Cost Control is not Cost Accounting. The primary objectives of Cost Accounting are the determination, classification, analysis and reporting in useful detail of actual costs. Following are some considerations on Cost Management and Cost Control as practiced by Owners and Contractors of industrial projects, Mining and Metallurgical projects in particular. COST MANAGEMENT Functions Conforming with the requirements of Owner's Criteria, the principal Cost Management functions are to • evaluate estimates of project costs and establish budgets for a scope of work and schedule; conversely, evaluate the scope of work that can be executed most effectively within a budget and schedule. • promote investigations and comparative evaluations of alternate designs and plans to find the most cost effective way to execute a project and minimize its operating costs. • based on Cost Control and Cost Accounting input, evaluate and initiate appropriate actions to correct deviations from approved budgets. assess project economics, the effect of changes on project economics and, if necessary, revise Project Criteria to modify their impact on costs.

Jan 1, 1986

By S. D. Van Nort

Editor’s note: This is the first of two MINING ENGINEERING articles about the Grasberg deposit. The second, focusing on open pit mine development, will appear in the April issue of the magazine. The Grasberg porphyry copper-gold deposit of Freeport Indonesia Inc. lies within the Ertsberg Mineral District in central Irian Jaya, Indonesia. The Grasberg deposit was discovered during a drilling campaign initiated in the mid-1980s. Production at the open pit de- posit commenced in December 1989. The Grasberg copper-gold ore body is contained within a young igneous complex of dioritic composition that intrudes limestones of the Tertiary New Guinea Group. Alteration is typical of porphyry copper deposits worldwide except that higher grade primary chalcopyrite with significant gold values is associated with a centrally located zone of strong quartz stockwork. Irian Jaya comprises the western half of the island of New Guinea. The Ertsberg District lies 70 km (43 miles) inland from the Arafura Sea at an altitudeof3500 to45OOm (11,480to 14,764 ft). It straddles the Papuan fold belt. This belt forms the east-west trending chain of mountains that extend the entire length of New Guinea and is the site of numerous mineral districts.

Jan 1, 1991

By G. S. Dobby, N. J. Contini, S. W. Wilson

Scale-up and simulation of flotation columns requires construction of mathematical models which employ, as a minimum, rate constants for quantifying particle recovery in the collection zone as well as split factors for quantifying froth zone performance. To date, measurement of these rate parameters has proven to be difficult, due to the interdependent nature of the collection and froth zones. This paper describes a technique for making these measurements. The method requires recovery data from two modes of operation: countercurrent and cocurrent. In cocurrent flow slurry is fed at the bottom of the column and tailings are withdrawn a short distance below the froth interface. Countercurrent mode is conventional operation. The critical difference is that particles which are dropped out of the froth in cocurrent mode are immediately lost to tailings, while in countercurrent mode the particles are subjected to recollection. Fitting of the measured recoveries to the equations that describe flotation in the two modes yields rate constant or recovery values for both the collection and the froth zones.

Jan 1, 1988

By Martin L. Smith, John M. Kemeny

In blasting, an optimal muckpile size distribution can be found in terms of mining and milling productivity and cost. Fragmentation control requires a means of modeling and evaluating blast results. A principle problem in the practical application of empirical blast fragmentation modeling is the evaluation of the muckpile's size distribution. Image analysis of video and photographic records of production size blasts at Cyprus's Miami and Thompson Creek mines is being used to provide data for estimating parameters relating fragmentation to blast design, energy factor and rock quality. The application of image analysis to the estimation of particle size distribution is reviewed with regards to the problem of fragmentation modeling.

Jan 1, 1993

By Raivo Maripuu

The Boliden Group encompasses Sweden's foremost operations related to the mining and production of copper, lead, zinc, precious metals and metallic by- products. It is also the dominant swedish producer of sulphur-based heavy inorganic chemical products and fertilizers and has an international trading organization covering, in adition to the group's basic products, industrial minerals and oil. Boliden's activities in- clude the marketing of proven Boliden technique and know-how. Boliden Metall - the mining and metallurgical company within the Boliden Group - produces about 13 million mtpy of ores at mines in northern and central Sweden. Boliden has, over the years, become a specialist in processing poly- metallic sulphide ores and its eight concentrators presently serve 15 mines. Boliden has a long history of close cooperation with Swedish and foreign manufacturers in developing new products and processes.

Jan 1, 1979

By M. L. Nave, R. E. Melley

DC motor drives are available technology for belt conveyors. The success of the application in mining depends on adequate and timely consideration of DC drive features. The purpose of this paper is to familiarize and inform possible mining users of DC drive attributes.

Jan 1, 1996

By G. Davey

High speed stirred milling is a relatively new method of grinding in the metalliferous process industries. However it has been it has been in wide spread use in the industrial mineral field for over 30 years for various minerals. Many existing metallurgical operations are looking to maximize economic return from existing deposits, requiring new thinking and technologies. The operating experience of two existing copper operations will be covered to show the effect of the introduction of the Metso Stirred Media Detritor (SMD) a new type of high speed stirred mill. Both operations have derived significant metallurgical benefits from the introduction of this new technology. The benefits and process difficulties are covered and explained.

Jan 1, 2003

By M. Josick Comarmond, John J. Jeffery, John W. Bennett

Oxidation rates of sulfidic mine wastes measured at a range of size scales have been collected from a number of sources. The results suggest that well-designed laboratory columns, under controlled conditions, provide comparable information on oxidation rates to that obtained from field test piles. It has been found in the cases presented that laboratory measurements of oxidation rates of a particular material type can be applied with confidence to the same materials in the field. It is recommended that a further study be undertaken to measure the time-dependence of the oxidation rate for a range of particle sizes and different materials. This study would provide measurements against which models of oxidation rate as a function of time and particle size can be tested, to give confidence in the use of models to describe dump behaviour in the longer term.

Jan 1, 2000

By Richard M. Bennett

Twelve linear test foundations were constructed over an advancing longwall panel in southern Illinois, six were located along the centerline, and six in the maximum tension zone. One footing in each set was a control foundation constructed according to conventional practice. It suffered severe damage. Footings with reinforcing bare and post-tensioning had much smaller elongations, with the post-tensioning preventing cracking of the footing. Footing-soil interface treatments of plastic-on-sand and plastic-on-soil served to reduce damage. The addition of steel fibers to the footing had about the same effect as an interface treatment. Sill plate construction (butt-jointed versus lap-jointed) appeared to significantly affect the behavior.

Jan 1, 1986