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By H. M. Park

Risk is a major factor in all mining activities, arising from many internal and external variables. The authors? research has resulted in a systematic method for the quantification of risk in mining projects (Park, 2012), and this research is being presented in a series of papers. The first paper (Park and Nelson, 2013a) identified the variables associated with risk in mining projects, and their effects and was published in the October issue of Mining Engineering magazine. The second (Park and Nelson, 2013b) discussed methods of assessing the overall risk associated with those variables (published at www.me.smenet.org), and presented a statistical model based on a survey of 31 experts. This paper will present an evaluation of the statistical model, using data from previous mining investment decisions in which the authors have been involved.

Oct 1, 2013

By H. M. Park

Risk is a major factor in all mining activities, arising from many internal and external variables. The authors? research has resulted in a systematic method for the quantification of risk in mining projects (Park, 2012). This is the second part of a three-part series. The first part was published in the October 2013 issue of Minining Engineering magazine and can be found here at www.me.smenet.org. This paper discusses methods of assessing the overall risk associated with those variables, and presents a statistical model based on a survey of 31 experts. The third paper, to be publised at www.me.smenet.org on Oct. 14, presents an evaluation of the statistical model, using data from previous mining investment decisions in which the authors have been involved.

Oct 1, 2013

By H. M. Park

Risk is a major factor in all mining activities, arising from many internal and external variables. The authors? research has resulted in a systematic method for the quantification of risk in mining projects (Park, 2012). This research will be presented in a series of papers, this one and two more that will be published on Mining Engineering?s web site, www.me.smenet.com. This paper identifies the variables associated with risk in mining projects, and their effects. The second paper discusses methods of assessing the overall risk associated with those variables, and presents a statistical model based on a survey of 31 experts. The third paper presents an evaluation of the statistical model, using data from previous mining investment decisions in which the authors have been involved. There are several major competing entities, including BHP Billiton, Rio Tinto, Anglo American, Xstrata, Freeport-McMoRan, Chinese government- run companies and Japanese trading companies, that have large foreign holdings, controlling deposits in most of the world?s established and productive mining districts. In general, the mining industry considers the United States, Canada, Australia and the European countries to have good mining investment environments, but because the major companies have already achieved market dominance in those countries, large investments are required there. Newcomers seeking to enter the industry, either as producing companies or as investing partners, often have difficulty breaking into these established markets. Thus newcomers are increasingly turning to new areas like South America and Africa, which are relatively less developed. The competition among businesses to secure a share of the new market is intense, but there are still good investment opportunities. However, because most of the countries in these areas are not well developed, several additional risks are associated with participation in mining projects in those areas.

Oct 1, 2013

By Emmanuel Henry

Few industries are more challenged by technical, political and market uncertainty than the mineral industry. Technical uncertainty in mining projects concerns the volume and quality of the resource, the processing and metallurgical parameters, the production efficiency, etc. Political uncertainty can take diverse forms and includes possibilities of change in the taxation system, risk of expropriation and risk of social instability or war. Market uncertainty depends on the market structure of the commodity; price and demand volatilities are the most common sources of market uncertainty. Intensive feasibility studies including these uncertainties and risks are required before investing up to billions of dollars in the development of a new mine. Current feasibility studies are often based on a single (or very few) mean geological scenario and simplified price profiles along the life of the project. Yet, strategic decisions, for example, the level of investment in exploration and metallurgical studies, adoption of a flexible, but more costly, mine design and risk-sharing strategies are made at an early stage. Over the last twenty years, Real Option theory has emerged as a unifying framework enabling strategic planning under uncertainty (technical, political and market). Geological and market variances (second order statistics) are pivotal for proper uncertainty quantification. The present study explores the possible benefits of combining modern geostatistical tools and financial techniques for project management. More precisely, the following questions are examined: Is geological uncertainty really an issue? Can we combine geological and price uncertainties in a unifying Real Option framework? A simple example aimed at illustrating the concepts involved is presented.

May 1, 2003

The mineralised members of the Brockman Iron Formation mined at Mt Whaleback are overlain and underlain by shale horizons. To maximise resource recovery, waste movement within the life of mine plan includes mining of the:unmineralised banded iron formation (BIF), Mt Whaleback Shale, Mt McRae Shale, Mt Sylvia Formation, and parts of the Wittenoom and Jeerinah Formation. With the exception of BIFs, all other units contain zones with varying amounts of sulphides and carbon û æreactive shaleÆ. Reactive shale has a propensity to self-heat and can react with some explosives, resulting in spontaneous explosion. Sulphide rich zones also have the potential to generate acid rock drainage (ARD). Mining reactive shale at the Mt Whaleback mine must be undertaken in a safe, efficient and environmentally responsible manner. Key tasks in the mining process include:100 per cent identification of blastholes that may contain reactive shale; 100 per cent correct loading of blastholes with specified blasting products; 100 per cent of reactive shale mined, hauled and dumped in designated overburden storage areas; 100 per cent containment and treatment of ARD water onsite; and ongoing research into ARD, self-heating and spontaneous combustion. Successful mining of reactive shale requires constant co-ordination between the geology, mine planning, mining and environment departments.

Jan 1, 2002

By Ray E. Williamson

One of the prime objectives of the mine industry is to develop a low cost way to clean up what has been called "The Rape Of Mother Nature". The project falls under the broad umbrella of reclamation, which is now considered an essential part of the mining cycle. As such, it is being given full consideration in the initial planning of all surface operations. In most areas, if a proposed mining system does not lend itself to proper reclamation, it is not an acceptable system. By combining mining and reclamation plans, a producer not only can minimize reclamation costs, but can also restore the land to usefulness and insure continuing profits after a deposit is depleted. As long as fifteen years ago, many of the larger mining companies were already deeply involved in this extra cost work. Even then the involved companies were projecting a great need for a bigger bulldozer, Bigger than anything commercially available. At that time, the D9 tractor weighed about 60,000# bare weight.

Jan 1, 1975

By J J. Grobler

The George Fisher Underground Mine at Mount Isa applies the long hole open stoping methodology. During the reconciliation process of transverse stopes in the George Fisher North mine it was identified that excessive underbreak was regularly experienced, with the major contribution coming from the toe area inside the stope.While over break and the resultant dilution was well investigated and well understood, limited work was done on underbreak improvement. It was decided that a re-engineering process would be followed in an attempt to improve results. The prevailing stoping practices were scrutinised and the possible causes were listed.Some of the identified causes were design, drilling accuracy, equipment condition, mucking practices and direction of firing. It was identified that in most instances the underbreak was initiated in the slot area of the stope during the first firings. Once this happened, it was impossible to get good recoveries on the rest of the stope. The slot area was carefully scrutinised and the blasting practices were changed individually.During the following two years several different strategies were trialled to increase the toe recoveries. The results indicated an overall improvement of six per cent reduction in underbreak on average, by ensuring drilling accuracy and changing the direction of firing. The economic significance of these results outweighed the time and additional work load expended to establish the cause of the problem. This paper outlines the continuous improvement process undertaken to identify and rectify the major contributing factors to the problem. It also presents a set of recommendations to be followed in order to achieve positive results.

Mar 21, 2011

In-Country Business Development Agenda ?Siting/Permitting/Operational Planning ?Securing, maintaining, enhancing social license to operate ?Biodiversity conservation and ecosystem services ?IFC Performance Standards ?Environmental, Social, Risk Governance (ESG) ?Climate change plan

Aug 1, 2013

By D Thomas

Geochemical data related to AMD for the West Coast and Southland regions have been collated into a relational database and GIS system. The types of information include; rock geochemical data, water chemistry data and aquatic macro-invertebrate abundance data. This information will be combined with eco-toxicology experiments to determine impact thresholds on aquatic ecosystems. Ultimately these datasets will be combined with remediation investigations to produce a Framework to assist decision making related to mine planning, consent and compliance.   Current geochemical research examines the controls on As concentrations downstream of gold mining areas and the variability of AMD from Brunner Coal Measure rocks. Assessment of factors that control the chemistry of Brunner Coal Measure AMD such as mine type, hydrogeology, geology, geochemistry and climate is in progress. Minerals that control the concentration of aluminium downstream of AMD point sources include alunite, jurbanite and various forms of Al(OH)3.

Jan 1, 2005

By C. M. EYE

IN the spring of 1905 I was employed by Messrs. Bradley and Requa, under our fellow member, Thomas Cox, on the mill plans for the Nevada Consolidated, when an opportunity came to go to the Philippines to erect a small mill on the property of the Benguet Consolidated. This I accepted, expecting to be away eight months or so, but it was seven years before I got back. .I sailed in May, on the Coptic, having as room-mate as far as Kobe, A. E. Drucker, who was going out to Korea for the Oriental Consolidated. It was the first trans-ocean trip for either of us, and we had some rather unusual experiences. This was toward the close of the Russo-Japanese war and the Russian fleet was known to be on the way from Suez to Asiatic waters, but it was a matter of doubt whether they would risk a passage between Japan and the mainland, or take the longer but obviously safer route outside of Japan. The Coptic carried much contraband of war for Japan, so naturally did not care to meet this fleet. No definite word being available at Honolulu, we went to the Midway Islands, but the cable station there had very little information to offer, so we proceeded cautiously toward Japan. On the last afternoon out, we steamed due north at half speed for several hours, and finally sneaked into Yokohama at night, to learn that ' the Russian fleet had met the Japanese the day before and had been annihilated. We sailed over the spot in the Sea of Japan a week later, and when we got to Manila we found three of the Russian boats interned and being guarded by the monitor Monadnock and a cruiser. This was only a matter of form, as the Russians were only too glad to be there for the rest of the war, and the boats could not have gone far anyway, for they were literally shot to pieces. The Admiral's flagship had a hole within 3 ft. of the water line, for ward, through which a man could enter by stooping.

Jan 1, 1929

By Ferri Hassani

Some future challenges ? People ? Shortages of HQP (e.g. engineers, scientists, geologists) ? Environment ? Regulatory standards - GHGs and air pollutants ? Mine waste management and rehabilitation ? Downstream processing (e.g., alternatives to cyanide) ? Climate change adaptation ? Lowering costs and improving productivity ? Energy efficiency ? Mine automation ? Health and safety ? Deep mining

May 1, 2008

By Richard Stewart

There are highly competitive world markets in most of the minerals being mined today. The high standard of living we enjoy in North America results in ever increasing productivity through mechanization and automation. Conventional underground and open-pit mining practices throughout the world are constantly changing to reflect the engineering advances of our technology. New records in tunneling, shaft sinking and excavating are being established. Larger and faster equipment is in production. Mining operations are being studied in detail to improve materials, methods and machines. Standards and controls are being established to measure the performance of people and equipment. These steps all tend to improve our present performance. In addition to these short-range improvements, however, there are the basic research and applied research studies which are aimed at developing entirely new approaches to our mining problems. Basic research in rock mechanics is coupled with applied research in rock penetration, fragmentation and stabilization.

Jan 1, 1963

By Alan Galley, Tom Hynes, Michel Plouffe

"Mining in Canada’s economy• Employs 320,000+ workers; Wages 30-60% above other sectors• Operates 220 producing mines, 33 smelters and refineries• Paid $8.4B in taxes and royalties to governments in 2010• Invests about $30B in capital projects annually • Largest private employer of Aboriginal Canadians 2• Core supplier to clean-technology sectors• Attracted 18% of world exploration spending in 2010• Efficient TSX processes - 1400 mining companies listed, ~50% of mineral projects are outside Canada• Estimated 1000 Canadian companies in 100 countries• Minerals account for 21% by value of Canada’s goods exports• Top 5 World Producer in uranium, potash, nickel, platinum, aluminum, diamonds, zinc, met coal"

Jan 1, 2012

Since its creation in 1910, the Department of the Interior's Bureau of Mines has pioneered in the development of mineral technology, through research. From the very beginning, research on mine health and safety has been a dominating concern, and a responsibility that expanded markedly as a result of the Coal Mine Health and Safety Act of 1969. Until the mid-1970's research on fuel technology and coal production also was an important part of the Bureau's work. But in the four years following the 1973 oil crisis, Congress established a reorganized Federal energy research apparatus in which all fossil fuel research-encompassing extraction, use, and conservation-was centralized. Today, the Department of Energy houses Federal research on coal mine production technology, while research on coal and noncoal mine health and safety and environmental technology, and on noncoal mine production technology, remains in the Interior Department as a continuing responsibility of the Bureau of Mines. In carrying out its authorized research programs, the Bureau conducts both short- and long-term re-

Jan 1, 2012

By John C. Nixon

In 1959, The Australasian Institute of Mining and Metallurgy (Aus. I.M.M.) was asked by the Federal Government of Australia and the State Government of South Australia to join in the formation and management of a new contract research organization which was subsequently named The Australian Mineral Development Laboratories (Arndel) ? This body was formerly the Research and Development Branch of the South Australian Department of Mines which had been set up to develop the Radium Hill uranium deposit. It had then gone into contract R&D and the State felt that it would be more appropriate for the Branch to become a separate national organization. The Aus. I.M.M. decided that a professional institute could not participate directly in Arndel and, as there was no other suitable industry group to do so, it formed the. Australian Mineral Industries Research Association Limited (AMIRA). AMIRA held its first Annual General Meeting in September 1959 when the first Council was elected and the Memorandum and Articles of Association were adopted. The initial task of AMIRA was to raise guarantees of work or cash from its members to underwrite Arndel for the first five years of operation. The Federal and State Governments also provided guarantees and Arndel commenced operations in January 1960.

Jan 1, 1977

By Lloyd M. English

During the past 30 years, the research arena has changed significantly in all fields, mining included. The relative representation of the topics of research, how the research is performed and who has performed the research have all changed. Although there are a lot of subjective ideas and anecdotal "analyses" concerning these changes, there has been no actual study of these trends to verify the facts. This study was divided into six five-¬year periods for the purposes of comparison. Some of the trends analyzed are co-authorship, research areas, research sponsors and cooperative efforts. In today's research arena, 30 years is a long time. Technology has advanced more rapidly than in any time previously and that pace continues to increase. There are more researchers, more tools for research and an increasing number of companies, agencies and institutions engaged in research. The pace of change and its impact is often discussed and debated at professional meetings and in institutions that engage in research. These conversations will often influence the research decisions of the participants in directions to take or subjects to pursue.

Jan 1, 1995

By Crosby N. R

The design of mine openings and the assessment of their reserve are processes ihicl, require the routine manipulation of considerable amounts of data. A number of computer programs have been assembled to operate in a mini computer in order to provide some mechanical assistance for these processes. The system responds to plain language commands. which allows mining engineers to compute the reserves for a number of possible mining outlines, on an interactive basis. Methods of numerical analysis were used in preference to statistical or qeostatistical techniques.

Jan 1, 1977

Minerals are fundamental to the U.S. economy, contributing to the real gross domestic product (GDP) at several levels?mining, processing and manufacturing finished products. The estimated growth rate for the real GDP of the United States was 2.1 percent and the nominal GDP was about $13.8 trillion in 2007 (Table 1). The prime interest rate decreased to 7.25 percent in December from 8.25 percent at the beginning of 2007, reflecting actions taken by the Federal Reserve Board to counter financial difficulties surrounding subprime mort-gages. Delinquencies on subprime mortgages increased throughout the year, affecting not only the delinquent home owners but also financial instruments invested in mortgage-backed securities. The average contract mortgage rate for the purchase of previously occupied homes in the United States was 6.35 percent in November; a slight decrease from 6.37 percent in January but still greater than 5.34 percent reported in July 2003, the lowest rate in the past five years. With the tightening of credit, the seasonally adjusted annualized rate for new privately owned housing starts declined 27 percent from December 2006 to November 2007. The loss in the residential market was balanced by a 9-percent increase in nonresidential construction between January and August 2007, during which slight increases occurred in nearly all

Jan 1, 2008

By Staff

"In 2014, the estimated value of total mine production of nonfuel minerals in the United States increased. The quantity of production increased for most mineral commodities mined in the United States, as did prices. Notable exceptions were the declines in prices for most precious metals. Minerals remained fundamental to the U.S. economy, contributing to the real gross domestic product (GDP) at several levels, including mining, processing and manufacturing finished products. Following the reduction in construction activity associated with the 2008- 2009 recession that continued through 2011, the construction industry continued to expand in 2014, with increased production and consumption of cement, construction sand and gravel, crushed stone and gypsum, mineral commodities that are used almost exclusively in construction. Other segments of the nonfuel minerals industries increased as well. Trends in other sectors of the domestic economy were similar to those for industrial mineral production (Table 1).Discussion of mine production is frequently segmented according to the type of materials produced within the broad categories of metals and industrial minerals. Industrial minerals can be further subdivided as construction aggregates and other industrial minerals. The materials with the highest unit values, usually metals, tend to have very low production rates compared with those of many low-valued materials, such as crushed stone or construction sand and gravel. Therefore, for discussion and analysis of the performance of the minerals industry in general, the value of production is used rather than tonnage produced. Although the value of metals and industrial minerals mined in the United States are similar, if tonnages are compared, construction aggregates dominate, dwarfing the production of all other minerals combined.Mineral industry performanceThe estimated value of nonfuel mineral raw materials, including metals and industrial minerals, produced at mines in the United States in 2014 was $77.6 billion, a 3.5-percent increase from $75 billion in 2013 (Table 2). Net exports of mineral raw materials and old scrap were $15 billion (Fig. 2). Domestic raw materials, along with domestically recycled materials, were used to process mineral materials worth $697 billion. These mineral materials, including aluminum, brick, copper, fertilizers and steel, and net imports of processed materials (worth about $41 billion) were, in turn, consumed by downstream industries with a value added estimated to be $2,530 billion in 2014.In the United States in 2014, mine production of each of 14 mineral commodities was worth more than $1 billion. These were, in decreasing order of value, crushed stone, copper, gold, cement, construction sand and gravel, iron ore (shipped), industrial sand and gravel, molybdenum concentrates, phosphate rock, lime, salt, zinc, soda ash and clays (all types)."

Jan 1, 2014

By Staff

"In 2018, the total estimated value of nonfuel mineral production in the United States increased by 3 percent from 2017 to $82.2 billion. The estimated value of metals produced domestically decreased by 4 percent, and the estimated value of indusrial minerals produced domestically increased by 7 percent (Table 1).Some idle U.S. metal mines and processing facilities restarted in 2018, including two primary aluminum smelters in Indiana and Missouri, a rare-earths mine in California and a zinc mine in New York. In contrast, four iron ore mines in Minnesota and a pelletizing plant in Indiana were shut down. Increased oil and natural gas drilling activity in 2018 led to increased production of some industrial mineral commodities that are used for oil and gas drilling, including barite and industrial sand and gravel. Production of industrial minerals primarily used in infrastructure and residential construction — including, cement, construction sand and gravel, crushed stone and gypsum — increased in 2018. Overall, mining activity trended upward for the second consecutive year because of increases in oil and gas extraction and industrial mineral mining (Table 2).Mineral industry performanceDiscussion of mine production is commonly segmented according to the type of materials produced within the broad categories of metals and industrial minerals (also known as nonmetallic minerals). Industrial minerals can be further subdivided as natural aggregates and other industrial minerals. Metals tend to have higher unit values but very low production quantities compared with those of industrial minerals, such as crushed stone or construction sand and gravel, which have higher production quantities but are lower-valued materials. Therefore, for discussion and analysis of the performance of the nonfuel minerals industry, the value of production is used rather than the tonnage produced. Tonnages of natural aggregates are orders of magnitude larger than those for most other mineral commodities, thus making direct comparisons based on weight meaningless (Fig. 1)."

May 1, 2019