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By Nickolas J. Themelis

Nearly thirty two million tons of municipal solid wastes (MSW) are combusted annually in over one hundred U.S. Waste-to-Energy (WTE) power plants, thus reducing the use of fuel oil by about 1.6 billion gallons of fuel oil One of the advanced WTE processes is the 0.9-million ton/y SEMASS facility at Rochester, Mass. Most of the combustion in the three giant combustion chambers occurs while the injected shredded wastes are in suspension, i.e., in flash combustion mode. The velocity, temperature, and concentration profiles in the SEMASS combustion chamber were simulated by representing the combustible fraction of MSW by the simplified formula C6HIO04 and using the CFD program Fluent to solve the turbulent energy and mass transport equations. After validation against plant data, this model will be used to examine options for increasing the productivity of WTE combustion chambers, such as optimum distribution of primary and secondary air and oxygen enrichment.

Jan 1, 2003

By F. A. Camisani-Calzolari

The latter half of the 20th century has seen the proliferation of a series of codes to address commodity needs which were brought about by rapidly advancing technologies and the globalization of markets and consumerism. This paper addresses the specific needs and the origin of this surge and presents these codes in the context they were developed. It also compares the main codes or groups of codes and elaborates upon their strengths and weaknesses. Three main categories of codes are identified, namely: codes for reporting to international agencies, codes addressing government needs and, finally, codes for the investors and the stock market. Codes governed by international agencies usually relate to strategic commodities which have highly specialized fields of usage like nuclear power generation where international cooperation is eventually the only viable approach for both the development of technologies and their applications. Codes for reporting to governments address the necessity of each state to exploit their mineral potential profitably and to secure the preservation of wealth for future generations. Reporting to investors is experiencing a considerable popularity as of late because of globalization in mining and the growing need for outside financing of mining projects, whose capital requirements are getting out of reach for the average mid-cap mining company. All these codes have advantages and shortcomings dictated by the specific circumstances under which they were developed, therefore necessitating the definition and implementation of some kind of international standard whereby investments and the spread of information across political boundaries would be facilitated. Though none of these codes might ever become international in the true sense of the word because of significantly different legislations at national level, a step that would greatly contribute to the cross-border disclosure of information would be the reciprocal recognition of competent persons by the major mining countries, including China and Russia. It is also becoming essential that financial institutions and investors be properly advised on mining projects by reporting reserves and resources in a transparent and responsible way with the relevant public disclosures being compiled by professionals who take full responsibility for their submissions. Keywords: reporting codes, mineral resources, mineral reserves, competent person, UN Framework Classification, IAEA classification, JORC Code, SAMREC Code and CRIRSCO.

Jan 1, 2003

By Asmo Vartiainen

Background of Direct-to-Blister Flash Smelting is discussed; especially slag chemistry relating to copper solubility, slag fluidity and impurity behavior. In December, 2000, Mini-pilot Flash Smelting test runs were carried out at Outokumpu Research Oy to produce blister copper from Chilean concentrate and white metal and from a mixture of them. Tested slag types were iron silicate slag, ferrous calcium silicate slag and calcium ferrite slag with different slag compositions and different concentrate/white metal ratios. The test runs were successful. The fluxing effect of copper oxide was clearly demonstrated and ferrous calcium silicate slags remained fluid on a very wide liquidus range. The distribution of arsenic between ferrous calcium silicate slag and blister copper is much higher than between iron silicate slag and blister copper. This successful test run with the new slag type offer new possibilities in Direct-to-Blister process design.

Jan 1, 2003

By Chris A. Bennett, Glenn S. Dobby, David A. Bulled

Establishing reagent dosing strategies for new ore bodies has traditionally involved a combination of experience and empirical experimentation using standard laboratory tests. The grade and recovery data resulting from these lab tests have historically been used as direct indicators of plant performance despite the obvious differences between the flotation environments. A reagent scheme selected in this way would subsequently be employed to generate the grade and recovery information for the geometallurgical model which in turn was used for metal production and cash flow forecasts. If the reagent scheme was sub-optimal then so too would be the forecasts and the resulting cash flow.

Jan 1, 2003

By I. V. Lunkin, E. B. Rakishev, B. R. Rakishev

In mining the method of statistical tests is used by solving of problems, exposing to influence of random factors. Such problems are: rational selection of equipment set; co-ordination in time of different processes; interaction between some processes and kinds of works. Usually it is considered that Monte Carlo method proves its value in the first place in that problems, which allow theoretical-probabilistic description. Analysis of numerical solution of mining-economic problems shows that the method of statistical tests may be used successfully by solving of determinate problems, which are solved usually analytically or by the methods of mathematical programming. We are talking about the problems of optimal use of resources, expedient placing of equipment, effective use of investments, rational planning of stripping and extracting works, groups of mining enterprises and about different variants of transport problem. In the report possibility of the method use is studied at an example of typical technical-economic problems solving. By solving of these problems the variant of the method with uniform distribution of random quantity had been applied and built-in random number generator of visual modelling system VisSim had been used. By algorithms elaboration it seems very perspective to use combination of the Monte Carlo method with traditional methods of numerical solving of the problems (methods of linear, nonlinear and dynamic programming and so on). Keywords: method of statistical tests, mining-technical problems, diapason of random number sample, efficiency function and its extremum.

Jan 1, 2003

By L. Linzer, J. Oelofse, T. Rangasamy

Extraction of isolated blocks of ground with elevated levels of stress and/or seismicity is a common occurrence in South African gold mines. Isolated blocks of ground that are divorced from the main orebody and are bound by complex, dip and strike parallel, non-persistent geological structures dominate the Klerksdorp gold fields. No quantifiable methods exist to assess the risk associated with mining these and other classes of remnants. A case history, from a gold mine that planned to extract three remnant blocks hosted in a large complex fault system, is used to illustrate the decision making process based on a combination of underground observations, numerical and seismic techniques. Simple risk estimation matrices were developed and used to estimate remnant-mining risk and finally to quantify the decision on which of the three remnant blocks could be extracted at the lowest possible geo-mechanical risk. Il est courant dans les mines aurifères sud-africaines d’extraire des blocs de terrain isolés qui possèdent des niveaux élevés de contraintes et/ou sismicité. Les régions aurifères de Klerksdorp sont dominées par des blocs de terrain isolés qui sont séparés du gisement principal et qui sont retenus par des structures géologiques non continues, à parallèle de pendage et direction, et complexes. Il n’existe pas de méthodes quantifiables pour évaluer le risque associé à l’extraction de ce genre et autres genres de résidus. Une observation de cas, celle d’une mine d’or qui avait l’intention d’extraire trois blocs de résidus qui se trouvaient dans un grand système complexe de faille, est utilisée pour illustrer le processus décisionnel basé sur une combinaison d’observations souterraines, et de techniques numériques et sismiques. Des matrices simples d’estimation de risque furent développées et utilisées pour estimer le risque lié à l’extraction des résidus et finalement pour quantifier la décision sur lequel des trois blocs de résidus pouvait être exploité au moindre risque géo-mécanique. Die Extraktion isolierter Gesteinsblöcke mit erhöhtem Spannugsniveau oder Seismizität ist in südafrikanischen Goldminen üblich. Isolierte Gesteinsblöcke, die von der Haupterzader getrennt und durch komplexe, parallele abfallende und horizontale nicht persistent geologische Strukturen gebunden sind, beherrschen das Klerksdorp Goldfeld. Es gibt keine quantifizierbare Methoden die das Risiko welches mit dem Abbau dieser und anderer Klassen verbunden ist beschreiben. Eine Fallstudie einer Goldmine, welche die Extraktion von drei in einem großem komplexen Verwerfungssystem eingelagerten Einschlußblöcken plante, wird verwendet um den Entscheidungsprozeß zu illustrieren, der auf einer Kombination von Untertag Beobachtungen und numerischen und seismischen Techniken basiert. Einfache Gefahreinschätzungsmatrizen wurden entwickelt und angewendet um das Abbaurestrisiko abzuschätzen und letztendlich die Entscheidung zu quantifizieren, welcher der drei Einschlußblöcke unter dem niedrigst möglichen geo-mechanischen Risiko extrahiert werden konnte .

Jan 1, 2003

By P. Randall, J. Ickes, S. Chattopadhyay

This study was undertaken as a part of developing treatment alternatives for waste materials, primarily waste rock and roaster tailings, from sites contaminated with mercury (Hg) mining wastes. Leaching profiles of waste rock over a range of different pH and oxidation-reduction (Eh) conditions were performed. Since iron (Fe) is present in large quantities in mining wastes, the effect of Fe on leaching of Hg was also determined. Results show that the Hg concentration increased as the pH of the suspension increased until a pH value of 10.65. Thereafter, the Hg concentration decreased sharply. The Hg concentration, in presence of Fe decreased significantly (1/10thto 1/100th). Kinetics results show a relatively slow rate of leaching in presence of ferric ions. The results obtained from the present study are being used to predict the fate and stability of Hg present in the environment, and will therefore, be useful in dictating the nature and suitability of any remediation treatment.

Jan 1, 2003

By F. Kongoli

Nonferrous and ferrous smelting industries have recently faced the unavoidable necessity of changing and/or improving the smelting technologies as a result of the use of new raw materials which are becoming available from different geographical areas. These new feed materials usually contain different ore composition and higher level of minor components, which adversely affect the smelting process. Due to the problems encountered in several processes as a result of this feed diversification some work has been undertaken in order to make uniform the feed and avoid later surprises in the smelting process. However this has proven to be very difficult and sometimes almost impossible. In this work a more viable approach is undertaken to deal with this problem. It consists of controlling not the cause of the problem i.e. the feed composition but instead the results of this feed change, i.e. the end-point of smelting technologies. It is shown that this approach, when carried out through advances physicochemical modeling and simulation tools is not only easier and less costly but it also helps the control optimization and automation of the smelting processes. Several examples are given and future work is underlined.

Jan 1, 2003

By Q. Lui, J. Oxenford

The occurrence of heavy minerals in the oil sands of Alberta has long been known and has been well documented in the literature. Unfortunately most of the researchers working on this resource have been unable to produce products that meet acceptable market specifications. This has resulted in many misconceptions about this resource. Recent efforts have shown that with some innovative approaches, marketable material can be produced and as a result it might finally be possible to realize the potential of this immense resource that, some have estimated, could contain in excess of 20% of the world demand by 2010. This paper highlights the uniqueness of this mineral assemblage and the mineral processing challenges it presents. It shows the most recent work that has resulted in the production of marketable titanium and zircon products. This paper also focuses on some of the special problems resulting from the variability in the heavy mineral suite. Of special interest is the occurrence and removal of bitumen and pyrite without adding to the sulphur dioxide loading in the regional airshed. The trend by the mining industry to develop various positions on ‘sustainable mining’ has some significance for the heavy mineral industry. Although the industry generally has an excellent track record of eventually rehabilitating disturbed ground in an acceptable manner, heavy mineral mining operations tend to have a relatively large footprint of disturbance and the industry is under considerable pressure to develop options that are more environmentally acceptable. In addition, as operators move to exploit deposits that are lower grade and/or are further from a port site, the emissions per unit of sold product will also rise and the industry will be under pressure to address this issue as well. Because heavy minerals from oil sands are by-products of existing operations, there are virtually no incremental disturbances or emissions that would be associated with heavy mineral production. All mining and tailings remediation issues are accounted for by the oil sand operation. The only incremental emissions would be those associated with the mineral processing operations and transport of finished products to a port site. This paper discusses the environmental and cost implications of this situation.

Jan 1, 2003

By N Bezuidenhout

The performances of ten field-scale experimental final covers were evaluated over an eight-year period. The covers were evaluated as part of the rehabilitation of acid generating coarse coal reject dumps and opencast coalmines in the Northern KwaZulu Natal province in South Africa. The main purpose of the experimental covers was to restrict rainfall infiltration into acid generating coal discard. The mean average rainfall over the monitoring period was 839 mm with 84 per cent occurring between October and April. The average evaporation was 2100 mm. The site is described as a ædry siteÆ since the evaporation exceeds rainfall by a significant margin. Approximately 30 per cent of rainfall infiltrated the uncovered cells. Rainfall infiltration into the fine coal discard was reduced to 20 per cent and 15 per cent for a 300 mm and 500 mm cover respectively. Infiltration was reduced to ten and 12 per cent of rainfall for fine coal discard provided with a 1000 mm double soil cover and a compacted bottom layer. This relatively high infiltration was probably caused by moisture being entrapped in the bottom retentive layer, and not being released by evapotranspiration. The best performing cover comprised 1000 mm single soil with a compacted bottom layer and infiltration was reduced to four per cent of rainfall. Rainfall infiltration into sloped cells varied between seven per cent and 14 per cent of rainfall. The computer software, SoilCover, was used to predict infiltration and moisture content in the cover. Predictions of rainfall infiltration were accurate, but were less accurate for covers where the hydraulic properties of field compacted soils were not adequately characterised. Oxygen ingress was significantly reduced for cells provided with a 1000 mm cover. Oxygen concentrations were generally below one per cent, with the exception during exceptionally dry periods when the cover dried out, resulting in increased oxygen ingress. For other covers, and the uncovered cells, oxygen concentrations were close to atmospheric concentrations. During the eight-year monitoring period, acid breakthrough occurred in five of the cells, including three uncovered cells, one cell with a 300 mm cover and one sloped cell. In contrast, cells covered with 1000 mm, bottom compacted soils shows a marked improvement of leachate quality, indicating that sulfide oxidation processes have been slowed. There was a distinct relationship between oxygen ingress and leachate quality for all of the cells. No cover degradation was evident over the eight-year period, except for some erosion observed on a sloped cell. The results indicate that the onset of acid drainage can be delayed by perhaps hundreds of years and salinity loads can be reduced by more than 90 per cent, if coarse coal reject dumps in the KwaZulu-Natal provinces in South Africa are provided by an adequate cover system. These research outcomes can be extrapolated and applied to other dry site regions where similar materials are being considered.

Jan 1, 2003

By S. Sakurai

We discuss the mechanical characteristics of underground structures that are subjected to vertical oscillations. Under such circumstances - expected when an earthquake rupture occurs very close to highly developed urban areas - the conventional seismic analysis, which mainly considers horizontal shear oscillations, may not be fully valid. Our analysis, based on the elastic wave theory, shows the effects of vertical disturbances and the generation mechanism of the unique damage patterns observed on the occasion of the 1995 Hyogo-ken Nanbu (Kobe) Earthquake. Wir diskutieren über die mechanischen Eigenschaften der unterirdischen Strukturen, die sich vertikalen Schwingungen aussetzen. Unter solchen Umständen - erwartet, wann ein Erdbebenabbruch sehr nah an hochentwickelten städtischen Bereichen geschieht - kann die herkömmliche seismische Analyse, die sich hauptsächlich horizontale Schubbewegungen überlegt, möglicherweise nicht völlig gültig sein. Unsere Analyse, basiert auf der elastischen Wellentheorie, zeigt die Effekte der vertikalen Bewegungen und den Erzeugungsmechanismus der einzigartigen Beschädigungsmuster, die anläßlich des 1995 Kobe Erdbebens beobachtet wurden. Nous discutons les caractéristiques mécaniques des structures souterraines qui s’exposent aux oscillations verticales. Dans ces conditions - s’attendent quand une rupture de tremblement de terre se produit tout près des secteurs urbains fortement développés - l’analyse séismique conventionnelle, qui considère principalement des oscillations horizontales de cisaillement, peut ne pas être entièrement efficace. Notre analyse, qui est basée sur la théorie des vagues élastiques, montre les effets des mouvements verticaux et le mécanisme de génération des modèles uniques de dommages, que nous avons observés à l’occasion du tremblement de terre 1995 de Kobe.

Jan 1, 2003

By W. Robert, J. Wirth, G. Grasselli

ABSTRACT: Strength, deformability and fluid flow properties of rock joints are to a great extent controlled by the surface roughness. The hydraulic conductivity of a rock fracture depends on the aperture distribution, the surface roughness and the contact area, each of which depend on the stresses that act on the fracture plane. However, despite much recent work, a complete understanding of the relationship between void space geometry, contact areas, applied stress, and hydraulic conductivity has yet to be achieved. Moreover, although in situ rock joints are subjected to both normal and shear loading, few studies have been conducted to investigate the effect of shear displacements on fluid flow through a single rock fracture, and which have addressed the issue of flow anisotropy induced by shearing. Experimental flow tests show that with increasing shear displacement, the fracture becomes heterogeneous and anisotropic, and becomes more permeable in the direction parallel to the displacement (Yeo et al., 1998). On the other hand, dry shear tests show that the surface fails in areas facing the shear direction (Grasselli and Egger, 2003). Moreover, the experimental results confirm that the shear strength of rock joints is direction-dependent. In this paper, a three-dimensional morphological description of several a natural fractures that have undergone shear displacement were generated using the Automated Topographic System at the University of Basel. The data analysis method of Grasselli (Grasselli et al., 2002a) is used to determine the surface parameters that are known to control the shear strength. Simulations of fluid flow through this fracture, in various directions relative to the direction of shear, are conducted using an FEM flow simulator. The results constitute the most detailed analysis yet undertaken of the relationship between shear displacement, shear strength, and fracture transmissivity. RESUME: La rugosité des joints en roche joue un rôle primaire sur la réponse hydromécanique du massif fracturé. En effet, la conductivité hydraulique des discontinuités en roche est influencée par la rugosité, et par la distribution des ouvertures et des zones de contact, dont chacun dépend de l’effort normal et du cisaillement qui agissent sur la surface du joint. Les essais d'écoulement en laboratoire montrent que si cisaillée, la fracture devient anisotrope, et plus perméable dans la direction parallèle au déplacement (Yeo et al., 1998). D'autre part, les essais de cisaillement indiquent que seules les zones de la surface qui font face à la direction de cisaillement sont impliquées dans le cisaillement (Grasselli et Egger, 2003). D'ailleurs, les résultats expérimentaux confirment que la résistance au cisaillement des joints de roche est dépendante de la direction. Dans cet article, plusieurs fractures en roche ont été analysées en utilisant un système de mesure topographique à l'Université de Bâle. La méthode d'analyse de données proposée par Grasselli (Grasselli et al., 2002a) a été employée pour calculer les paramètres de la surface qui déterminent la résistance au cisaillement. Plusieurs simulations du coulage, dans diverses directions relativement à la direction du cisaillement, ont été faites à l’aide d’un programme de calcul à éléments finis. Les résultats constituent une des analyses les plus détaillé sur le rapport entre le déplacement pendant le cisaillement, la résistance au cisaillement, et la transmissivité spécifique de la fracture. ZUSAMMENFASSUMG: Die Festigkeit, Verformbarkeit und Hydromechanik von geklüftetem Fels wird hauptsächlich von der Oberflächenrauhigkeit der Bruchflächen bestimmt. Die hydraulische Leitfähigkeit einer Kluft hängt von der Verteilung der Rissbreiten, der Oberflächenrauhigkeit und den Kontaktflächen ab, die ihrerseits von dem auf die Bruchfläche wirkenden Druck beeinflusst werden. Obgleich in letzter Zeit viel in dieser Richtung geforscht wurde, kann der Zusammenhang zwischen Porenraumgeometrie, Kontaktflächen, wirkendem Druck und hydraulischer Leitfähigkeit noch nicht vollständig erklärt werden. Obwohl Klüfte in situ sowohl Normal- als auch Schubspannungen ausgesetzt sind, wurde der Einfluss von Scherverschiebungen auf den Kluftwasserfluss und die daraus resultierende Fliessanisotropie in einer einzelnen Kluft bisher kaum untersucht. Experimentelle Untersuchungen des Durchflusses zeigen, dass die Kluft für größer werdende Scherverschiebungen heterogen und anisotrop wird wobei die Permeabilität parallel zur Verschiebungsrichtung ansteigt (Yeo et al., 1998). Andererseits zeigen trockene Scherversuche, dass die Oberfläche an Stellen versagt, die gegen die Verschiebungsrichtung anstehen (Grasselli und Egger, 2003). Des weiteren bestätigen die experimentellen Ergebnisse eine Richtungsabhängigkeit der Kluftscherfestigkeit. In diesem Artikel wird eine dreidimensionale morphologische Beschreibung mehrerer natürlicher, durch Scherspannungen verschobener Klüfte vorgestellt, die vom Automated Topographic System der Universität von Basel erstellt wurde. Das von Grasselli (Grasselli et al., 2002a) entwickelte Datenanalyseverfahren wird zur Feststellung der die Scherfestigkeit bestimmenden Oberflächenparameter herangezogen. Mittels einer FEM-Simulation wird der Durchfluss durch eine solche Kluft in verschiedenen Richtungen simuliert. Die Ergebnisse stellen die bisher ausführlichste Analyse des Zusammenhangs zwischen Scherverschiebung, Scherfestigkeit und Durchlässigkeit (Transmissivität) einer Kluft dar.

Jan 1, 2003

By José Carlos Abreu

This work presents a kinetics study covering the effects of temperature over the reduction rates of a carbon composite briquette, aiming its use as burden in some of the new alternate ironmaking technologies, such as the Tecnored process. It is reported that increases in the temperature increases the reaction rate. Additionally, the morphology of the iron phase generated during the reduction of these briquettes is presented. It was possible to verify that three types of iron morphology occurred during the process: an external, dense and continuous iron layer, the presence of iron globules at the center of the briquettes and whiskers at the briquette's core. The measurement of the carbon content on the globules and the external iron layer is also presented

Jan 1, 2003

By E. B. Kroeger

One of the problems encountered when constructing a roadway is the planned route often needs to cross soils that are soft and highly compressible. An approach to dealing with soft and compressible soils is to construct the fill from lightweight materials, thereby reducing the stresses on underlying soils. Most lightweight fills have approximately the same cost, so the most important consideration when choosing a lightweight fill is that the material properties of the lightweight fill match the conditions existing at the site. Expanded polystyrene (EPS) has been used as a lightweight fill material for more than 30 years. The EPS used for road fills is typically in the range of 0.5 to 2 lb/ft3, and has a compressive strength of in the range of 10 to 30 lb/in2. If a higher strength material is needed, then the material density is increased, which also adds to the cost of the material. Another type of lightweight fill material that is commonly being used is lightweight aggregate (LWA). LWA can be created by passing slate or shale through a rotary kiln or reheating coal fly ash with other materials to form pellets or aggregate. Several companies throughout the U.S market these materials under a variety of names. LWA can have a unit weight from 45-80 lb/ft3. For sites where trucking granular fill does not pose a problem, this material may be an alternative to EPS. One of the drawbacks to using LWA is the availability of the material. Only a few companies are manufacturing LWA, so it may not be available or may be cost prohibitive in certain areas of the country. Lightweight flyash blocks have been produced which may fill the gap in unit weight between the EPS and LWA. Blocks have been produced with a unit weight as low as 30 lb/ft3. They are relatively inexpensive, easy to handle, and have a moderate compressive strength. Although the unit weight is dramatically higher than EPS, the strength is also higher. If lateral stabilization of the fill is a problem, then geofabrics or grids can be incorporated into the design to add lateral strength.

Jan 1, 2003

By E Werner, J J. Donovan, A J. Morris

Coal mining in the Pittsburgh coal seam, in the eastern United States, began in the late-1700s. Since that time numerous mining technologies have been used throughout the basin. Environmental concerns, particularly mine discharge quality, have only been considered since the early-1970s. During the last 20 years, many of the larger underground mines have closed and are now either flooding or already flooded. In order to understand the consequences and potential future effects of this flooding, mine mapping of the basin has been compiled utilising a geographic information system (GIS) with an emphasis on locating barrier pillars between mines. Mine flooding has been monitored at numerous sites utilising pressure transducers and data loggers. These data have been combined with historical data from mining companies and structure contour maps to yield chronological flooding maps of the basin from 1980 to present. Utilising these maps and the indicated flooding rates, future discharge locations have been identified along with estimates of when these discharges are likely to occur. Related work has identified barrier pillar hydraulic conductivities and vertical infiltration rates as a function of overburden thickness. All of this information has been integrated into a groundwater flow model that simulates mine flooding. This model is useful in defining mine to mine interactions as the various mines fill with water, and the testing of various flooding scenarios. The model will be used in evaluating mine discharge rates and evaluating the options for regional mine drainage treatment.

Jan 1, 2003

By Sri Sawmliana, P. Pal Roy

Blasting Gallery (BG) method was introduced in India for higher production and low cost of excavation to substitute conventional hand section and stowing methods for thick coal seam. The Singareni Collieries Company Ltd. (SCCL) adopted this method in the year 1989 and since then successfully operating at GDK-10, GDK-8 & VK-7 Incline mines in Andra Pradesh, a southern state of India. It is also successful at Chora 10 Pit Colliery of Eastern Coalfields Ltd. (ECL) in West Bengal whereas at East Katras Colliery of Bharat Coking Coal Ltd. (BCCL) in Jharkhand State, the method has been partially successful due to some geological constraints of the area.

Jan 1, 2003

By Robert T. McKnight

"Traditional techniques for valuing resource projects companies have been primarily based on discounted cashflow methods (DCF) or by comparison to similar projects with an apparent market capitalization. Many resource projects are really forms of options to invest rather than a future cashflow stream. Employing the DCF method to value a resource project which is really an option to invest, can dramatically underestimate the real value of the project. The analytical tools required to evaluate options, while more complicated than the usual spreadsheets used for DCF, are becoming more easily available and usable by managers. This paper will discuss the background of options valuation and some of the tools which will make it easier for managers to estimate the value of projects and companies which have significant real option values.ResumeBob McKnight is a graduate of the University of British Columbia in Geological Engineering, supplemented by an MBA from Simon Fraser University. Following several years in the oil patch with Cities Service and Brascan, Bob returned to Vancouver in 1979 to work for Wright Engineers. He subsequently went on to work for Cassiar Mining, Getty Resources and Endeavour Financial before joining Pincock Allen & Holt Ltd. in 1998. His experience ranges from exploration to feasibility studies, financial evaluations of mining and oil & gas projects, due diligence, project finance, valuations and mergers and acquisitions. He has extensive international mining experience pertaining to such countries as Chile, Mexico, Uruguay, Thailand, Indonesia, Angola, Papua New Guinea, Kazakhstan.What are Options?Options have been around for centuries. They were familiar to Roman and Phoenician traders who were shipping cargoes from Mediterranean seaports. In the financial world, options are types of contracts that generally include the right, but not the obligation, to buy or sell a share, currency or commodity. The underlying commodity price or share price changes are assumed to be lognormally distributed. In this context, options are of two general types, ""call"" options and ""put"" options. Call options have the characteristic of having the right to buy a tradable commodity or currency at a predetermined price for a specified period of time. For the owner of call options, they become more valuable as the price of the underlying commodity increases. For the seller of call options, these options become an increasing liability as commodity prices rise, since there is the obligation to sell the commodity at a predetermined (perhaps lower-than-market) price. This characteristic of call options recently became high profile with the sharp rise in gold prices last year. The value of gold call options sold by certain producers increased their associated liabilities to the point where margin calls were made."

Jan 1, 2003

By Fumito Tanaka

The Mitsubishi process is the sole pyrometallurgical process for the continuous production of blister copper from Copper concentrates and has been successfully operated around the world. The development of calcium ferrite slag (CaO-FeOx-Cu10), the so-called "C-slag", has enabled continuous converting from matte to blister copper in the commercial scale operations. Commercial interests in the slag led to many papers over the CaO-FeOx slag. However, Cu2O bearing slag has not been studied well due to experimental difficulties. The authors have quantified the thermodynamic properties of the CaO-FeOX-Cu2O system. The results have been utilized to analyze various issues related to the converting furnace, such as the magnetite precipitation from the slag or from blister copper and to develop better controlling criteria for the continuous converting operation. -

Jan 1, 2003

Limnological processes are often overlooked when trying to assess the long-term water quality of pit lakes. It is essential to deal with these aspects, since they determine the geochemical and redox conditions around the submerged reactive rocks. Underground mining at East Sullivan (northwestern Quebec, Canada) stopped in 1966. Two adjacent stopes, 91 and 106 m deep, were left open to the surface, with roughly circular apertures of about 7700 and 18 000 m2. Water filling of the two glory holes went on over three decades and overflow began in 1999. Surface water pHs values were near neutrality as late as 1994 (6.3 - 7.0) but had become acidic by 1999 (2.6 - 3.5). Limnological processes were investigated in late-1999 and early-2000, with temperature measurements at 1 m intervals and sampling of the water columns before and after the late fall density inversions. A strong chemocline-thermocline was observed at 15 m. Above the chemocline, the water had low pH (3.2), no alkalinity, and low Na, Ca and sulfate. Below the chemocline, the concentrations of these parameters and the pH increased, with pH at 5.5 - 6. Consistent with the low pH values present in the upper 15 m, the concentrations of Al, Cd, Cu, and Zn were high near surface, and decreased below the chemocline. Dissolved oxygen concentrations as well as Eh decreased with increasing depth. Alkalinity integrated over the entire water column below the chemocline was at least six times larger than the acidity inferred from Fe2+ and Fe3+ concentrations. The temperature survey showed that seasonal density inversions do occur in the water column. The inversions do not involve the entire water body, since the surface to depth ratio is too small for a complete overturn. Oxygen from surface waters is carried to the bottom where it oxidises sulfides, until its depletion. Residual Fe2+, stable under anoxic conditions, is displaced upward by the next dense water incursion. It eventually reaches the thermocline, but only after many successive incursions. There, its oxidation to Fe3+ allows hydrolysis, which consumes dissolved and wall-rock alkalinity. It is only in 1999 that alkalinity was finally exhausted and that the pH shifts to acid values. The low pHs in the surface waters allow a build up of Fe3+ and Al3+, and desorption of metals from colloids. Buffering is assumed to be controlled by wall-rock oxyhydroxides in surface waters, and by carbonate minerals in the bottom waters. Because the seasonal overturns are far from being complete, the large amounts of alkalinity acquired from the wall-rock in the bottom waters cannot balance the acidity of near surface waters. Hence the surface water is acidic.

Jan 1, 2003

By D. R. Tesarik, F. M. Jones, J. B. Seymour

As part of safety and stability studies at three underground mines in the United States, researchers installed earth pressure cells and embedment strain gauges in cemented rockfill to measure stress and strain changes as mining progressed and the rockfill was loaded. Data from these instruments were used to calculate the in situ modulus of the rockfill for two of the mines. A three-dimensional numerical model of a cemented rockfill cap was validated with data from extensometers anchored in the mine roof and sill; this model was then used to estimate deformation modulus at the third mine because the earth pressure cells and embedment strain gauges recorded negligible changes. Rockfill binder used at these mines ranged from 4 to 8 per cent of the dry components by weight, the water-to-cement ratio was from 0.42 to1.0, and the largest aggregate size in the three mixes ranged from 5 to12 cm (2 to 4.7 in). The range of the calculated in situ deformation modulus values was large, but as expected, it was bracketed by modulus values for cemented tailings and roller-compacted concrete with similar cement contents and water-to-cement ratios. Dans le cadre d’études sur la sécurité et la stabilité de trois mines souterraines situées aux États-Unis, les chercheurs ont installé des palpeurs de pression des terres et des extensomètres d’encastrement dans les remblais cimentés afin de mesurer les variations relatives à l’effort et à la déformation des terrains durant l’exploitation minière et le chargement du remblai. Les données recueillies à l’aide de ces instruments ont servi au calcul du module in situ du remblai dans deux de ces mines. Le modèle numérique tridimensionnel de la semelle d’un remblai cimenté a été validé à partir des données recueillies par les extensomètres ancrés dans la voûte et dans la semelle de ces mines; ce modèle a ensuite été utilisé pour estimer le module de déformation à la troisième mine, étant donné que les palpeurs de pression des terres et les tensiomètres enfouis avaient relevés des variations négligeables. La matière d’agrégation de l’enrochement utilisée dans ces mines comportait entre 4 % et 8 % des composantes sèches par poids; le rapport eau-ciment se situait entre 0,42 et 1,0; et la taille des agrégats les plus gros dans ces trois mélanges était de 5 cm à 12 cm (2 po à 4,7 po). L’écart entre les valeurs calculées des modules de déformation in situ était grand, mais comme on s’y attendait, cet écart a été compensé par les valeurs modulaires des résidus cimentés et du béton tassé au rouleau avec des teneurs en ciment et des rapports eau-ciment semblables. Als Teil der Sicherheits- und Stabilitätsstudien an drei Bergwerken in den Vereinigten Staaten von Amerika installierten Forscher Erddruckgeber und Einbindungsdehnungsmesser in zementierter Steinschüttung, um Spannungs- und Dehnungsveränderungen während der fortlaufenden Bergarbeiten und der Belastung der Steinschüttung zu messen. Daten von diesen Instrumenten wurden dazu verwendet, das In-Situ-Modul der Steinschüt-ung für zwei Gruben zu berechnen. Ein dreidimensionales numerisches Modell einer zementierten Steinschüttungsschwelle wurde mit den Daten von den im Grubendach und in der Schwelle verankerten Extensometern validiert; dieses Modell wurde dann dazu eingesetzt, um das Deformationsmodul in der dritten Grube zu schätzen, da die Erddruckgeber und Einbindungsdehnungsmesser nur geringfügige Messabweichungen feststellten. Das in diesen Gruben verwendete Steinschüttungsbindemittel variierte zwischen vier und acht Prozent an Trockenkomponenten nach Gewicht, der Wasser-Zementfaktor betrug zwischen 0,42 und 1,0 und die größte Zuschlagstoff-größe in den drei Mischungen schwankte zwischen fünf und zwölf Zentimetern. Die Reichweite der berechneten Werte des In-Situ-Deformationsmoduls fiel etwas breit aus, aber es fand erwartungsgemäß eine Klammerung der Modulwerte zwischen den Zemen-trückständen und dem durch Walzen verdichteten Beton mit ähnlichem Zementanteil und Wasser-Zementfaktor statt.

Jan 1, 2003