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By P. McGrath

From the mid-1980s through 1997, Echo Bay Alaska evaluated reopening the historic Alaska-Juneau (AJ) gold mine. Their original proposed project underwent numerous modifications in order to minimize the potential for significant environmental impacts. One of the major modifications involved changing .the tailings disposal method from a conventional tailings impoundment to submarine tailings disposal (STD). In 1995, the U.S. EPA began work on a Supplemental Environmental Impact Statement (SEIS) to assess the impacts of the STD proposal. Key features of the STD impact assessment included fate and transport modeling to determine the extent of tailings deposition and the use of ecological risk assessment to predict marine impacts during deposition and ecosystem recovery following STD. A key feature of the SEIS regulatory process included a rulemaking proposed by EPA to exempt the AJ tailings from effluent regulations. Critical to success in moving the project forward was early development of an interactive working relationship with other regulatory agencies and the public.

Jan 1, 1998

By R. L. Zick, J. D. Byars, T. P. Mucho

Recently, a large Pittsburgh seam longwall mine was nearing depletion of a major portion of its current reserves and had begun to develop in a different direction from its original portal area to access additional reserves. This meant that a large area of the mine would be abandoned and sealed. However, continued use of the original mine portal area required that the water accumulating in the abandoned mine would eventually need to be pumped to the surface. This would be in addition to the discharge water associated with the new portion of the mine. Several pumping and sump options were investigated to handle the quantity and quality of the anticipated discharge water. This paper describes some of these options, their advantages and disadvantages, and the final engineering decisions. Some problems and unanticipated outcomes, as well as the eventual solutions are discussed, including: (1) estimates of pump requirements, (2) water pool size, (3) eventual water quality, (4) anticipated inflows, and (5) integration into the overall mine water system.

This publication is provided on an "as is" basis without warranties of any kind, either expressed or implied including, but not limited to warranties of title or implied warranties of merchantability of fitness for a particular purpose. The information contained in this publication is for general information purposes only. It does not constitute professional, technical, financial or other advice to the user of this publication and must not be relied upon as such by any person whatsoever. The use of this publication is at the users own risk. The authors/creators of the information contained in this publication have tried to ensure that the information contained herein is correct, but errors or inaccuracies may exist or the information may be incomplete, unreliable or no longer up to date. Therefore, no warranties of any nature whatsoever are given and any liability to any person in respect of anything and in respect of the consequences of anything done or omitted to be done, wholly or partly in reliance upon the whole or any part hereof, are disclaimed, including and without limitation any contractual, dialectal, direct, consequential or financial damages or losses. On no account will Organisers and/or any of the contributors or any person or entity involved in creating, producing or distributing the information and or software available in this publication be liable for any such damages arising out of the use of or inability to use this publication. Copyright Reserved The South African Institute of Mining and Metallurgy P O Box 61127, Marshalltown 2107, South Africa www.saimm.co.za All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical photocopying, recording or otherwise without the written permission of the copyright owner. Although the greatest care has been taken in the compilation of the entire contents, the editors and publishers do not accept responsibility for errors or omissions. First Edition Copyright February 2004 Proceedings ISBN: 0-9584663-5-1 (1 volume and CD-ROM)

Jan 1, 2004

The equity market is now very much within a global village environ- ment, with various exchanges acting as agencies for the big casino. In this predicament, mining companies, who provide the most extensive, but relevant risk assessment information, will be best placed for favoured treatment by potential international investors: But what risk assessment information in summary form can be provided to support a resource/reserve statement? Even more importantly, does "objective" data exist, whose trends will support a resource/reserve state- ment? A prime need of the informed mining investor is to determine whether or not the resource/reserve statement is believable? But more importantly will it be realised? While the implications within the text of the majority of reports on resource/reserves suggests that the estimates are conservative, the record indicates that very few estimates are. In fact, to date, reports claiming to be conservative in respect of the overall grade estimate at a specfic cutoff have not reflected the realised grade at the stated cutoff; it has been more common for the realised grade to be lower than implied by the resource/reserve statement. Further, it is not uncommon for penalty elements to be understated and these components are rarely incorporated within resource/reserve statements.

Jan 1, 1988

By Christoph Czettl, Christian Storf, Gregor Kücher, Stefan Luidold

The purpose of this investigation is to provide a basis for the semidirect recycling of hard metals. The present investigation focuses on revealing the fundamental chemical kinetic aspects during cemented carbide leaching in hydrochloric acid media. The kinetic relations of cobalt binder leaching from WC-Co cemented carbide are studied using a central composite face-centered design of experiments with temperature, acid concentration, and hydrogen peroxide as variables.

Mar 1, 2017

By G. Schriever, H. Thiel, E. J. Foell

A long-term, large-scale, disturbance-recolonization experiment with relevance to the environmental effects of deep seabed mining is described. The study is funded by the German government and was launched in the abyssal eastern tropical South Pacific Ocean in February-March, 1989. After obtaining pre-impact baseline environmental data, a 10.8 km2 (4.2 sq miles) circular area of seafloor was disturbed using a specially designed "plow-harrow" device. An initial post-impact sampling series was carried out immediately after disturbance followed by a second post-impact sampling series six months after the disturbance. Plans call for repeated visits to the site at two year intervals to monitor the anticipated slow recolonization process until the area is inhabited by a new, stabilized community.

Jan 1, 1993

By Saeed Salehi Malekshah

In hybrid foundation system or piled raft foundation (PRF), the raft has adequate bearing capacity and piles are usually required to ensure overall stability of foundation and also to act as settlement reducer for high rise structures. When piles are connected to the raft, a high axial stress may develop and one alternative is to disconnect the piles from raft and consider them as stiffeners for supporting soil. This system is known as disconnected piled raft foundation (DCPRF). Cushion, a compacted coarse grained soil layer, can be used beneath the raft to redistribute and adjust the stress ratio of piles to subsoil and plays an important role in mobilizing the bearing capacity of subsoil and modifying the load transfer mechanism of piles. In this study, finite element method (FEM) has been employed to investigate the effect of different parameters such as cushion stiffness, gap height, raft thickness and piling configuration on the behavior of disconnected piled raft foundation. The analysis is performed on different foundations of hypothetical and real case histories. Results indicate that increasing the raft thickness reduces the differential settlement and pile head axial stress. Concentrating the longer disconnected piles similar to connected ones beneath the central area of raft, decreases settlement of raft. With increasing cushion stiffness, vertical stress ratio of piles to subsoil increases, but settlement decreases. Increasing gap height from 0.1 m to 1 m decreases the vertical stress ratio of piles to subsoil.

Jan 1, 2011

By Fowler T. J

Examples are provided of discontinuity analysis at selected sites in central Victoria. Discontinuities are rock fractures of low tensile strength, including bedding, foliations and joints, which are analysed during rock excavation design, to quantitatively determine the defect orientations, spacing and lengths. Their analysis can reduce the cost of mining operation and improve safety. Extrapolation beyond the exposed face is required, although difficult without an understanding of the regional geology. For rock engineering purposes assumptions are commonly made that discontinuity characteristics are uniform throughout the rock mass, however this is often invalid, as rock masses have usually undergone large-scale deformation, exhibit anisotropy and inhomogeneity. Structural geologists are able to interpret large-scale deformation responses for the purposes of structural correlation and extrapolation. Examples of discontinuity analysis linked to regional geological assesment from sites in central Victoria, reveal that discontinuities exhibit similar characteristics in a range of rock types of different ages and composition. Spacing variations between individual sites are believed to be a result of local rock type differences.

Jan 1, 1997

By C. Yanqui

"Discontinuum Mechanics is based on two foundations: the idealization of the internal structure of substances, and the principle of the arithmetic mean value. For a linear discontinuum, the methods of Crystallography are used to describe their structure, in which nodes stands for the position of the homologous points such as molecules, grains, or any other motif. The principle of the mean value states that the value of any discrete function at a node is equal to the arithmetic average of the values of this function at the neighboring nodes. This principle leads to an elliptical linear differential equation of the second order, with coefficients given by the statistical second moments of the Cartesian components of the metric vector. As long as those coefficients are components of a symmetric second-order tensor, there are three mutually perpendicular directions, in which the variances reach their extreme values and the covariances are zero, showing that the mean value principle transforms the discontinuum into a statistically equivalent orthotropic continuum.The application of Discontinuum Mechanics to linear rock masses is simple and direct. It is sufficient to define the motif as the plane of geological discontinuity, and the metric vector as the normal vector to this plane, whose magnitude is the spacing between two consecutive planes belonging to the same set of discontinuities. Furthermore, heterogeneities of rock masses can be also included in this description by substituting the plane of discontinuity by a zone of weakness. In this way, the magnitude of the normal vector results from the product of the spacing and the RQD or the RMR. In going further in this theory, at least three conclusions show up. First, in the evaluation of rock masses, it is necessary to determine the orientation, spacing, and RMR for each set of discontinuities. Second, the conventional method of finding the principal families from the contours of equal concentration of poles on the stereographic projection excluding the spacing does not have any physical meaning. Third, any problem of rock mechanics can be solved in a rigorous and reliable way by integrating the differential equation of the mean value."

Jan 1, 2015

By Lawrence Devon Smith

"The concept of risk is well established in the mining industry. It is acknowledged when estimates of reserves are expressed as proven or probable, when mining and metallurgical recoveries are applied to the ore, and when contingencies are added to costs. However, it is difficult to provide a quantitative assessment of risk. The significant sources of risk in a mineral project and how these are addressed in project evaluations are discussed.The discount rate is examined as a fundamental means of reflecting risk in discounted cash flow evaluations. Current industry practice is discussed, and a methodology for the analysis of risk levels is proposed that assesses the constituent components of the discount rate: real interest, mineral project risks, and country risk.IntroductionThis paper examines the components of the discounted cash flow discount rate and proposes a method of estimating project-specific discount rates. The motivation for this work comes from experience of project evaluations in which owners and purchasers had agreed on virtually every aspect of the evaluation except how much the project was worth. Agreement was reached on reserves, grade, recovery, capital costs, operating costs, taxes, and, by combining these components, even on the final cash flow values. The only difference in opinion concerned the discount rate to be used in the calculation of the net present value. Depending on the life of the project, such differences of opinion can cause a variation of more than 50% in the value placed on a project! This is illustrated in Figure I."

Jan 1, 1995

By Lawrence Devon Smith

"The concept of risk is well established in the mining industry. It is acknowledged when estimates of reserves are expressed as proven or probable, when mining and metallurgical recoveries are applied to the ore, and when contingencies are added to costs. However, it is difficult to provide a quantitative assessment of risk. The significant sources of risk in a mineral project and how these are addressed in project evaluations are discussed. The discount rate is examined as a fundamental means of reflecting risk in discounted cash flow evaluations. Current industry practice is discussed, and a methodology for the analysis of risk levels is proposed that assesses the constituent components of the discount rate: real interest, mineral project risks, and country risk.IntroductionThis paper examines the components of the discounted cash flow discount rate and proposes a method of estimating project-specific discount rates. The motivation for this work comes from experience of project evaluations in which owners and purchasers had agreed on virtually every aspect of the evaluation except how much the project was worth. Agreement was reached on reserves, grad~, recovery, capital costs, operating costs, taxes, and, by combining these components, even on the fmal cash flow values. The only difference in opinion concerned the discount rate to be used in the calculation of the net present value. Depending on the life of the project, such differences of opinion can cause a variation of more than 50% in the value placed on a project! This is illustrated in Figure 1."

Jan 1, 2003

By H. K. Taylor, B. Denby, L. D. Smith

Contributions by H.K. Taylor and G.A. Davis discuss the three papers published in Transactions IMM A, vols. 103 and 104, with responses by Smith and Dowd

Dec 1, 1995

By Christopher R. Lattanzi

"Discounted cash flow analysis provides a means of relating the magnitude of expected future cash profits to the magnitude of the initial cash investment required to purchase an asset or to develop it for commercial production. The objectives of discounted cash flow analysis are to determine:.. The net present value of a stream of expected future cash revenues and expenditures... The rate of return which the expected future cash flows will yield on a given level of initial cash investment.In the case of mineral properties, discounted cash flow analysis is generally accepted as the preferred method of valuation, whenever sufficient data are available to permit its reasoned application. Sufficient data are required to support estimation of all of the individual elements of cash revenue and cash expenditure which will be associated with the development and operation of the property, up to the end of its estimated life. It is the accuracy of these input estimates which determines the validity of the resulting determinations of profitability and rate of return on invested capital.In undertaking any discounted cash flow analysis, it is important to recognize certain fundamental attributes of the mining industty:.. The basis of any mineral development is the existence of an ore reserve... Costs are determined by the number of tonnes mined and processed, while revenues are determined by the number of pounds or ounces of metal produced. The two are related by the recovered grade of the ore... Profit is typically more sensitive to changes in revenue than it is to changes in cost... Commodity price is a principal determinant of revenue, but it is also the factor with which is associated the greatest level of financial risk.In the end, of all of the factors which must be considered in the discounted cash flow valuation of a mineral property, the most significant are the reliability of the reserve estimate, particularly with respect to recovered grade, the price at which the product is to be sold, and the risk of not maintaining the projected level of price."

Jan 1, 2003

By Lawrence Devon Smith

"This paper examines the impact of the various assumptions that go into an economic evaluation, and shows how these can be combined to show an exciting result that may not really exist. An example of an embellished case (the kind that one frequently sees when projects are being promoted) is developed and the cumulative impact is analysed to show the actual project underneath. The paper also points out some areas to watch for overly optimistic assumptions such as prices, inflation, and debt. The concept of a ""bare bones"" base case is proposed (constant metal prices, constant dollars, no inflation, no debt, no interest, on a project basis, after tax) as a common reference point.As well, the discount rate is examined as a fundamental means of reflecting risk in discounted cash flow evaluations. Current industry practice is discussed, and a methodology for the analysis of risk levels is proposed that assesses the constituent components of the discount rate: real interest, mineral project risks, and country risk.INTRODUCTIONOften, the first time that all of the technical and economic data for a mineral project comes together in one place is when the economic evaluation is developed. This typically happens when work on the project has progressed to a sufficient level of detail that the effort to produce a year-by-year cash flow is justified, usually at the pre-feasibility or feasibility study stage. The data involved will include:• production; tonnes waste and ore mined, ore grade, mining recovery, metallurgical recovery, metal sold• revenue; metal price, smelting & refining charges, marketing costs• operating Costs; mining, milling, administration, fees, royalties• capital Costs; exploration, development, construction, indirect costs (engineering, management), contingencies, start-up, inventories, working capital, replacement and sustaining capital, closure costs• taxes and royalties• exclusions; depreciation (this is not a cash item), sunk costs (only costs going forward)."

Jan 1, 2003

By L. D. Smith

"This paper examines the impact of the various assumptions that go into an economic evaluation, and shows how these can be combined to show an exciting result that may not really exist. An example of an embellished case (the kind that one frequently sees when projects are being promoted) is developed and the cumulative impact is analyzed to show the actual project underneath. The paper also points out some areas to watch for overly optimistic assumptions such as prices, inflation, and debt. The concept of a “bare bones” base case is proposed (constant metal prices, constant dollars, no inflation, no debt, no interest, on a project basis, after tax) as a common reference point.As well, the discount rate is examined as one of the fundamental means of reflecting risk in discounted cash flow evaluations. Current industry practice is discussed, and a methodology for the analysis of risk levels is proposed that assesses the constituent components of the discount rate: real interest, mineral project risks, and country risk."

Jan 1, 2002

By Sorentino C

Mineral valuation may appear to be a special field of financial valuation when in fact it is a subset of general investment decision theory. The only significant difference in mineral valuation is that in the case of valuing an on-going mineral asset, ie a mine, often there is no initial capital outlay involved. One is required to determine what the mineral asset as it stands is worth. But this is the same problem as determining the maximum one could pay today and not incur a loss over the life of the asset. In other words one needs to determine the Net Present Value (NPV) of the asset. The two most widely used discounted cash flow methods, NPV and Internal Rate of Return (IRR) came of age with the rapid adoption of the personal computer and spreadsheet programs. The two methods are directly related as the IRR is a special case of NPV. NPV measures the absolute increase in real wealth that can be expected from a certain investment, which makes it particularly suitable for mineral asset valuation, but ignores the efficiency of the investment. In contrast, IRR gives the expected efficiency of the investment but ignores the increase in wealth aspect. IRR has two serious theoretical weaknesses; multiple IRR's and a very rigid assumption about the rate of return of reinvested proceeds, plus if no initial equity expenditure is involved there is no IRR. The choice of the ""hurdle"" rate can also be a problem and in certain circumstances one can obtain different rankings of mutually exclusive projects using IRR and NPV. Although NPV and IRR supposedly measure financial risk, in fact they only address a very narrow area of risk, namely the time value of money given the real discount rate. They side step the issue of what the real discount rate should be and varying degrees of risk. The classical way to establish the real discount rate is to use the weighted average cost of capital.

Jan 1, 1994

INTRODUCTION The after-tax rate of return that properly discounts future cash flows is usually referred to as the "discounted cash flow-rate of return" (DCF-ROR). The method is also referred to as the internal rate of return, true rate of return, and investor's rate of return in some literature. According to Stermole (1974, p. 188) industry polls indicate that the DCF- ROR method is the number one economic evaluation decision method used by more than 90% of the industrial companies that use for- mal economic evaluation procedures. Other economic evaluation methods that have been used in the past, such as payback period, accounting ROR, etc., have largely given way to DCF-ROR analysis because they fail to account properly for the time value of money. DCF-ROR is generally defined as that rate of return that makes the present worth of future generated cash flow over the life of the project (including after tax salvage value) equal to the present worth of all after-tax investments. The "present worthing" of future cash flow involves discounting future cash flow to a present value according to the mathematics of compound interest at some interest rate. The determination of the interest rate that equates the present worth of future after-tax earnings with the present worth of all after-tax investments necessary to create such earnings is properly called the discounted cash flow rate of return analysis. Although present worth calculations are usually used for determining the DCF-ROR, the same results can be obtained by comparing income and costs of any equivalent point in time, i.e., future worth, etc.

Jan 1, 1980

AVING started to tell you of working potter's clay for making crucibles and shells, the wish came to me to tell you of the practice of this art also. Although it may seem at first glance to be outside the order and purpose of my writing, he who considers well will see that it is not unrelated to it but proper, since it is wholly dependent on the agency and power of fire if it is to be brought to its perfection. Moreover, the potter's glazes and colors are all substances of various metals or impure minerals and therefore belong to fire. Since it is my intention to treat of fire, minerals, and metals for you, I surely should not have omitted this, particularly because it is a necessary art which enriches and is greatly praised both for its ingenuity and its beauty. The art of the potter has two sources as its principal basis. One comes from the art of design, the other from various alchemical secrets and elemental mixtures. In regard to these, I find that, in my opinion, all this art depends in the last analysis on four things: on good judgment in general, and on the art of design so as to be able to make the vessels beautiful and of good shape, as well as to ornament them with painting; after baking them well the first and second times, the next thing is to know how to make and apply the glaze well and to paint them with varied and appropriate colors. The fourth is to see that you have good, fine clay without small stones or lumps-indeed this is to be considered as the first thing. Now this that I have called clay is what many call cretaceous earth and some call argil. It is found and dug up when the masters wish to make use of it and is put in a container to be moistened. When it is moistened, it is beaten on a bench with an iron rod and very well prepared. Mixing it carefully, every small stone, lump, or other hardness that it contains is removed and cleaned away. Then a shaft [145V] of iron is fitted as the journal in a large wheel. On the other end of the journal a small wheel is made which forms an instrument for working that is called a lathe. Having put some clay on this, it is made to rotate by pushing with one foot, and, by rotating it, vessels are worked into a pleasing shape and size. Then they are taken off and put on a board to dry. After drying artificially or naturally they are painted red,

Jan 1, 1942

By John Stubbs

Sub-Surface Shaft excavation Mine development Headframes Surface Production facilities Product storage and loading Tailings area Infrastructure Discovery Lodge Utilities Operations complex Port Marine loading Rail unloading and storage

May 1, 2013

While SME is hosting its Annual Meeting at the Phoenix Convention Center, Feb. 28 to March 3, one of the finest collections of mining history will be on display just 15 blocks away at the Arizona Mining and Mineral Museum. Inside the museum, visitors will be treated to a treasure trove of minerals, gems, me¬teorites, rocks, fossils, mining artifacts, historical exhibits and interactive displays on modern mining. The museum is located at 1502 West Washington. For SME Annual Meeting attendees, this is a free, eight-minute Dash bus ride 15 blocks west of the Phoenix Convention Center.

Jan 1, 2010