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By John S. Carman

Our industry is in trouble. Real trouble. It has never been an easy, secure business. But to-day it is engulfed in revolutionary currents. No longer can there be reliance upon the checks and balances of market forces. Supply and demand largely dictated the economics of business enterprise in simpler days. To-day politics, in particular nationalism become increasingly dominant. And as governments expand and put out tentacles of interference in the direction of the mining industry, far too little understanding is evidenced as to how that industry works. Then there is something which is relatively new -stagflation. As the prices of minerals falls, the capital investment required for new extractive facilities soars at rates which far outdistance those which are cited by governments to indicate the magnitude of inflation. To illustrate; 1) In 1971 it was calculated that $355 million would be required to bring the Cuajone property in Peru into production. Five years later that stage was reached at a cost of $680 million. 2) With the Caridad mine in Mexico, estimated capital investment doubled between 1971 and 1976. 3) The requirements calculated for Cerro Colorado in Panama have risen in two years from $560 to $800. 4) The budget of $240 million for Sar Chesmeh in Iran in 1971 had become $500 million by 1976.

Jan 1, 1977

By Jim McKinley

With a growing number of mines reaching closure and seeing closure costs materialize, regulators, lenders, and banks are observing projects that fail economically by miscalculating these costs. Mine closure costs are often categorized as a type of liability which is defined as the money owed by the company to offset effects from the project, and the money available to pay for those debts (e.g., bond). Often, decisions made before Day 1 of mining (e.g., co-disposal, dry stack tailings, waste segregation) can significantly change the bond calculation. Once the bond is calculated and funded, operators are encouraged to conduct closure research and use applied science for progressive bond release prior to final closure. However, this author has observed few instances of financially significant progressive bond release, as there are typically no robust procedures for bond return, either before or during closure activities. As a result, many companies decide that entering a state of Care & Maintenance (C&M) is less risky than attempting to fund closure activities with an unknown bond return mechanism. Although perhaps less risky in the short-term, the primary long-term risk with entering C&M is that it increases the chances of the bond not covering the cost of closure and the chances of the government/regulatory agency inheriting the mine closure. Bonds are typically reevaluated on a regular cycle (e.g., five years) so every mining company goes through this financing challenge eventually.

Feb 22, 2026

By T. R. Ellis

Many appraisers/valuers believe that the only valuation method available within the Cost Approach category for Real Property appraisal is the depreciated replacement cost method. Some valuation and financial reporting standards setters also believe the same. This paper introduces the minerals appraiser to a number of useful methods for mineral property appraisal that are based primarily on the principle of contribution to value, the predominant economic principle in the cost approach. Most of these cost approach methods discussed are primarily for use in valuation of exploration tracts and resource properties that have no defined reserves. However, the powerful rural cost method can be used to calculate the contribution of categories of resources, reserves, and other property components to the value of a mineral property. This method can be applied to mineral properties at all stages of development, including producing properties.

Jan 1, 2011

By J. S. Y. Wang, R. C. Trautz

A 9-meter-long drift was constructed in the unsaturated-fractured tuff at Yucca Mountain to evaluate the potential for water seeping into an underground opening. Forty seepage tests were performed by releasing a finite volume of water at a constant rate into short test intervals located in boreholes positioned above the drift. The seepage threshold flux, defined as the liquid-release flux at and below which water will not drip into the opening, was determined for 10 test intervals. The seepage data, observations, and model results indicate that a seepage threshold exists because a capillary barrier diverts water around the opening.

Jan 1, 2000

By Ian Farrell, Josh Stowe, Eric Wingeard

Tailings transport system design is generally based on identifying the minimum and maximum process boundary conditions for pump selection and pipeline sizing. The approach is robust and well-proven. However, the approach has the potential to skew selections to operating scenarios that have a very low likelihood of occurring, such as the combination of high solids throughput and low tailings solids concentration. The approach can result in a tailings transport system design that is overly conservative. A probabilistic method-based approach captures the independent variability of design inputs and the combined likelihood of outcomes. This approach identifies the process conditions that have the highest likelihood of occurrence and are most applicable to equipment and pipeline selections. An outline of a probabilistic-based approach to tailings transport system design and the resulting selections is provided in this article. The probabilistic-based system design is compared to the outcomes from the traditional approach. The benefits and challenges to this approach are discussed and recommendations for utilizing this approach for tailings transport system design are provided.

Mar 31, 2021

By Ian Farmer, Nigel Glossop, Philip Garritty

Performance of tunnel boring machines - usually expressed in terms of penetration per revolution - is determined by relations between machine thrust and torque, head diameter and rock strength. It can be shown that for a given machine power and head diameter there is only one rock strength at which the machine performs optimally. In weaker rocks the available torque limits performance and in stronger rocks, the available thrust. Performance data shows that, historically, machines have been designed to cut weaker rocks. Optimization of thrust is required to improve performance in stronger rocks.

Jan 1, 1987

By Lynn B. Hales

There is a large economic opportunity associated with improving metallurgical performance in mineral processing plants that use process control. Thus, future control systems will be developed towards more sophisticated user friendly, computer-based systems that use powerful software analysis and control techniques. Auto-tuning, adaptive control and process models will gain expanded use because of their transparent availability to the system designer. Control of individual unit operations will be optimized and coordinated through expert systems that monitor economic conditions and management directives and direct operations accordingly. Plant areas, once considered cost centers, will be integrated into plant-wide control systems for economic control and optimization. This article looks at new control hardware, process sensors, control strategies and software development tools. It also looks at the economics driving the continued development of advanced process control systems. Process control systems routinely used in the mining industry were born when the microprocessor was invented. They have continued along an evolutionary path from vendor specific processing hardware and proprietary operating systems to computer industry standard "open architecture" systems. The many economic forces that drive the development and functionality of these process control systems will cause this evolutionary process to continue. Two of the broadest categories are the needs of the end users and the desire of the system manufacturers to distinguish their products from one another. More

Jan 1, 1994

By D. Malhotra

The economic viability of a mining operation depends on continuous process improvements. Diagnostic testing and plant auditing are essential useful tools to improve performance and reduce operating costs. Case studies are discussed to illustrate benefits of these techniques to improve plant efficiency.

Jan 1, 2001

By M. B. Haggerty, Joe Welna

The Minnesota Department of Transportation is constructing a stormwater storage facility (SSF) along Interstate 35W (I35W) south of downtown Minneapolis, MN. The project will provide storm surge capacity reducing the frequency with which major precipitation events result in flooding of I35W. The design consists of six, 42-foot diameter, 90-foot deep, adjacent underground shafts providing 14.7-acre feet of storage. Construction challenges include high groundwater with variable glacial outwash deposits. Constructability and ground variability were managed using construction manager general contractor (CMGC) project delivery. CMGC provides an environment for collaboration and innovation starting in the design phase and carrying through construction. This paper provides an overview of key efficiencies and collaboration examples implemented on the I35WSSF project which were aided by CMGC delivery.

Jun 13, 2023

By K. Holmberg, D. Herriot

This paper by Mr Mclvor is yet another contribution to the eternal controversy surrounding the benefits, or otherwise, of high circulating loads in closed circuit grinding. Throughout the paper it is difficult to establish whether the author is referring to effects relating to the mill, classifier, or to the overall circuit. Table 1 is put forward as indicating the advantage of operating at high circulating loads. From the two (it would be interesting to see more) product sizing points provided in each case, the conclusions to be drawn are that cases one and two have very similar size analyses. The third case, however, indicates a much flatter curve, that is to say, higher fines production and a very wide spread of size ranges. If the objective of this circuit is to provide a closely sized product with minimum overground slimes to the downstream process, then it would appear to be the less "efficient" by far. No data is given for product pulp densities either. The term "efficiency" should never be used without a careful and clear definition. In this case, "efficiency" is used to express an apparent percentage reduction in operating work index (Bond) from the measured "standard" at 250% circulat¬ing load operation. The Bond calculation is itself based upon

Jan 1, 1989

By S. A. Abdel Sabour

Conventional methods for selecting a production plan for an open pit mine is based on the assumption that ore grades throughout mine life as well as market variables are known with certainty. Another important issue that is also being ignored in the conventional procedure is the value of management flexibility to revise operating policy with time according to the arrival of new information. Based on this oversimplification of reality, an optimum mine plan that is thought to be maximizing net present value (NPV) of the project is selected. Given the multiple sources of risk affecting the estimated NPV, there is a high probability that the actual value will be different from that estimated. This could mislead decision making process regarding selecting an optimum mine plan. This paper proposes a multi-criteria ranking system for selection between alternative mine designs under both geological and market uncertainties. The system is based on integrating multiple market and geological uncertainties as well as the operating flexibility to revise the ultimate pit limits using a Monte Carlo-based real options valuation (ROV) model. To compare the methods, the article applies the proposed system, along with the conventional NPV-based method, to rank possible mine designs for a copper and a gold mine. It has been found that, considering multiple risk analysis measures while integrating uncertainty and operating flexibility results in selecting a mine design that is different from that selected by the conventional method.

Jan 1, 2009

By D. Bernabe

The mine scheduling process defines a mining sequence across the life of the mine and stipulates the amount of ore, waste, and specific blocks to be mined each year so that the highest economic return can be obtained under a number of constraints. There are a number of mine scheduling software packages available. Each claims to be the best scheduler by maximizing Net Present Value (NPV) or by minimizing overall mining costs. These mine scheduling programs follow different procedures and scheduling philosophies based on either mathematical or heuristic principles. There was no study in which the mine production scheduling procedures applied by these packages were discussed and compared. This paper evaluates four open pit mine scheduling programs recently developed and compares them in order to determine if significant differences exist among them. The same input data, which consist of a 3-D block model, an economic set of parameters, and the initial surface topography for a operating copper mine in Southern Peru, was used to test each technique. The following programs were investigated with respect to their ability to optimize the NPV for the case study. 1) M821V1 Scheduler by Mintec; 2) NPV Scheduler by Earthworks; 3) Milawa Scheduler by Whittle Programming; and, 4) Fundamental Tree Scheduling Method (FTSM) developed at the Colorado School of Mines. The results from this case study demonstrate that the scheduling software packages, Mintec, Earthworks, and Whittle obtained similar NPV’s, while FTSM scheduler gave a six percent higher NPV than the other schedulers.

Jan 1, 2002

By T. S. Bomar, C. J. Wood

Heavy media cyclones (HMCs) are efficient, high-tonnage devices suitable for upgrading run-of-mine coal in the 50 to 0.5 mm size range. Unfortunately, industrial HMC circuits are often not optimized due to problems such as incorrect operating pressures, poor feed distribution, excessive media contamination, mismatched components, and improper density control. To avoid these problems, operating guidelines have been provided in this article that are useful for optimizing the performance of HMC circuits. The validity of these guidelines has been assessed by means of density tracer tests carried out at several coal preparation plants.

Jan 1, 2002

By T. H. Eyde

Worldwide production of natural zeolites during 2001 was estimated to be about 3.5 Mt (3.85million st). Construction and agriculture continued to be the major consumers. Estimated production in North America during 2001, including the United States, Canada and Mexico, was about 40 kt (44,000 st). In the United States and Canada, the zeolitic tuffs are ground, extruded or modified for use as adsorbents, desiccants, ion-exchange media and carriers. In Mexico and the rest of the world, the zeolitic tuffs are cut into dimension stone that is used in construction. Zeolitic tuffs are usually composed of the minerals clinoptilolite, mordenite or both. They occur in a variety of colors and are easy to cut and shape. And they have low thermal conductivity. This construction application is classified with dimension stone rather than with chemical and agricultural uses.

Jan 1, 2002

By W. X. Wang

In the mining and quarry industries, rock fragments are often transported by conveyor belt. To estimate the qualities of the rock fragments (i.e., size distribution and shape), an operator must take samples from the conveyor and manually perform a sieve analysis, which is time-consuming and tedious. Alternatively, an image-analysis system can be used to monitor the fragment quality on a fast moving conveyor belt. However, images of fragments on a fast moving belt vary to such a degree that the quality of any two successive images are not the same, and some of the images are of such poor quality that they are unrecognizable by human eyes. If poor-quality images are directly analyzed by a segmentation algorithm, the analysis will not be satisfactory. To resolve this problem, it is necessary to use an image-classification pro-gram for the automatic selection of fragment images with good quality. Because of this need, an image-classification program was developed and tested both in the laboratory and in the field. Testing of the system on different types of fragments showed that the system works reasonably well.

Jan 1, 1996

By C. Chamberlain

The mining industry continues to underpin the regional economy. Australia, benefiting from a weak currency, receives 27% of the total goods export value from non-energy mining lead by aluminium, iron ore, gold and nickel. Consolidation has eliminated CRA, Comalco, North, Savage, Acacia, Ashton, Great Central, Aberfoyle, Placer Pacific, Plutonic, Normandy and RGC leaving Rio Tinto, BHP-Billiton, WMC, MIM and, increasingly, the South African companies Anglo, Gold Fields and Harmony as dominant players. Exploration stagnates with expenditure dropping 40% in Australia and 80% in PNG from peak levels. Major new regional developments include Rio’s West Angles iron ore project, Newcrest’s Ridgeway gold-copper mine and Inco’s Goro nickel-cobalt project in New Caledonia.

Jan 1, 2002

By N. M. Levine

This work defines and systematizes the physical factors of the problem of leaching and demonstrates for the first time the utility of macropore volume, micropore volume, specific surface, pore size distribution and permeability as parameters of leaching based on a study of the recovery of uranium from the Top Black member of Chattanooga Shale.

Jan 1, 1962

By Michael J. Miller

In the design of a modem mill, a stockpile storage system for raw and/or semi-processed ore has become almost indispensable. This paper discusses the benefits of such stockpile storage as well as the various types of belt conveyor stockpiling units available. Particular attention is given to large radial stackers since they offer the greatest flexibility. Stacker control systems and accessory equipment are briefly discussed. Various alternative reclaiming arrangements for stockpiles are reviewed and a discussion of the advantages and drawbacks of each arrangement is included.

Jan 1, 1979

Ceremonies for the induction of five mining industry pioneers into the National Mining Hall of Fame are scheduled for Saturday, Sept. 25, 2004 at the Las Vegas Hilton in Las Vegas, NV. The 17th Annual Mining Hall of Fame Induction banquet will begin with a reception at 6 p.m., followed by the dinner and program at 7 p.m. The five inductees are Georgius Agricola, David William Brunton, Herbert E. Goodman, David Ray Mitchell and Robert Peele. Georgius Agricola (1494-1555) wrote De ReMetallica, an original and valuable work that discussed everything known about mining during the first half of the 16th century. In De Re Metallica, Agricola reviewed practical means of finding ores, methods of surveying and mining, the assaying of ores, types and uses of mining machinery, smelting, mine administration and more. David William Brunton (1849-1927) is best know

Jan 1, 2004

By Carsten Rühlemann, Thomas Kuhn, Cornelia Kriete

"Any economic calculation with respect to potential submarine mining activities requires reliable analytical data on the contents of valuable metals in these ores, including trace metals such as rare earth elements as well as Ti, Mo, V, Zr and Li. Due to the very special matrix of ferromanganese nodules (30% manganese oxides, 10-20% iron oxides, silicates; see Kuhn et al., this volume), their geochemical analyses pose a real challenge. Available ferromanganese nodules reference materials, e.g., NOD-P1 and A1, JMn-1, GBW07249, SDO-4 to -7 and NM2388, generally have only a few certified values for trace elements. Published data for these reference materials, collected in the GeoReM database (http://georem.mpch-mainz.gwdg.de/) are either rare for high technology metals or widely scattered for certain elements, especially the PGEs. Since most of these materials were released in the 1990s, many analytical procedures have seen significant advancement.In order to facilitate analytical quality assurance during exploration and potential future mining activities, the German Federal Institute of Geosciences and Mineral Resources (BGR) has contracted the Central Geological Laboratory of Mongolia (CGL) to produce a certified reference material for nodule analytics. Certified reference materials provide the highest level of reliability in geo-analytical measurements currently available and the CGL has a long-term experience in producing geological reference materials. Recently, the CGL was accredited as a reference material producer according to ISO Guide 34 by the American organization ACLASS (Assured Calibration and Laboratory Accreditation Select Services). Furthermore, it has been accredited as a testing laboratory according to ISO 17025."

Sep 1, 2014