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By Sabry A. Sabour

Metal price is among the key variables in the open pit optimization and the economic evaluation process. The common approach to handle metal prices in open pit mine planning is to optimize the ultimate pit and the mining schedules using a fixed, flat metal price. In this respect, metal price is assumed to be known with certainty throughout the entire mine life, which in some cases can reach 80 years. Given the volatile nature of metal markets and the metal price cycles, the conventional pit optimization approach may generate sub-optimized mining plans, which results in either extra costs to mining projects or lost revenues, or both. Long-term operational decisions such as future pit expansions, beyond the currently optimized limits, cannot be handled using the pit optimization approach based on flat metal prices. There is a growing interest in the mining industry to model and manage such market uncertainty in the pit optimization as well as the project evaluations in order to maximize the value of mining operations. In this paper, the author will outline a practical approach to optimize the ultimate pit taking into account the volatility and variability of metal markets. The proposed approach uses a combination of the pit optimizer of the commercial MineSight package and a simulation-based economic modeling real options valuation approach employing the least-squares Monte Carlo algorithm. MineSight pit optimizer employs both the floating cone for initial optimization exercise and the standard Lerchs-Grossmann algorithm. In this paper, Lerchs-Grossmann option will be used to generate the pit shells. Real options valuation approach used in this study is based on generating multiple metal price scenarios. Metal price uncertainty is modeled using stochastic metal price models such as the geometric Brownian motion and the mean-reverting process. The mining operational scenarios corresponding to the simulated metal prices are then optimized using the least-square Monte Carlo approach. The objective is to maximize the discounted cash flow value of the project while incorporating the operating flexibility to revise the operating status of the open pit with time as new information becomes available. The focus of this work is on the practicality of the proposed uncertainty-based pit optimization approach and the difference it can make to the technical operational mining decisions. A case study of a hypothetical open pit poly-metallic mine is provided. The deposit contains copper, gold and silver grades. The run of mine ore is sent to the process plant that produces copper concentrate with copper as the main metal and gold and silver as the by-products. Four uncertain variables are considered here include copper, gold, silver prices and foreign exchange rate. Both copper price and exchange rate are modeled using the mean-reverting process while gold and silver prices are modeled using the geometric Brownian motion. The case study is performed using both the conventional flat price pit optimization approach and the proposed uncertainty-based one to compare results.

Aug 1, 2013

By Margaret Anne Stephenson

Today, in Australia, it is increasingly common to see agreements between Indigenous peoples and resource companies being achieved generally as Indigenous Land Use Agreements or agreements pursuant to the ?right to negotiation? process under the Native Title Act 1993 (Cth). Despite progress in this area, resource development on Indigenous lands is not without its challenges for both the resource proponents and the Indigenous parties. History demonstrates that resource development on Indigenous lands has produced struggles between the traditional owners of the land and the resource proponents. In Australia their relationship is generally defined by issues of access to land and assuring continued access to the land for the life of the project. In this context, divisions in Indigenous communities often emerge. The proposed resource project can have the effect of polarising members of an Indigenous community. It may be regarded by some traditional land owners as an advantageous opportunity for the community and by others as a hazard to country and culture. The process of agreement making has proved not only a test for the Indigenous community but also for the resource proponent. In this paper we undertake a contemporary case study of a proposed Australian resource related-development project on Indigenous lands. This project involved a multi-billion gas hub precinct proposed at James Price Point in the Kimberley region in Western Australia. The James Price Point proposal produced a litany of challenges for all parties. The traditional owners faced fundamental social and human rights issues, including a minority opposition to the project, the project's potential cultural heritage impact, the threat of compulsory acquisition of their native title interest by a State government due to an initial failure to settle an agreement, a fracture of their unsettled land claim and a minority rejection of the agreement ultimately reached. Additionally, the ?green? lobby also rejected the proposed gas hub on environmental grounds bringing the green lobby into direct conflict with both the traditional owners in favour of the project and the resource proponent. Ultimately, Woodside announced its decision not to proceed with the proposed gas precinct at James Price Point, in April 2013. In this paper we analyse the complexity of the James Price Point gas hub negotiations with the traditional owners which resulted in an Agreement that promised to deliver substantial benefits for the Indigenous communities. We question why such a favourable and beneficial agreement for the Indigenous community also produced the plethora of challenges and concerns and we consider how future negotiation processes could be better structured to avoid the difficulties that have confronted Indigenous land owners and resource proponents alike.

Aug 1, 2013

By C. A. Ingram

The Cigar Lake ore body is a high-grade uranium deposit situated within water-saturated sandstone. In order to extract the uranium ore remotely, ensuring minimal radiation dose to workers, and also to access the ore from stable ground, the Jet Boring System (JBS) was developed. This method of mining involves drilling a pilot hole up through a frozen ore body and utilizing a high-powered water jet to mine out cavities. During the mining process an ultrasonic sensor will be used to provide feedback to the operator, who is located beneath the ore body, as to the dimensions of the cavity. However, more precise data is required to determine final shape, volume, and location of the cavity for mine planning purposes. Selecting a device that will provide sufficient range data in the challenging environment will be vital to optimizing the mining process. Major issues include fog build up and flying debris during mining, and an environment that is wet, dark, and cold A test cavity has been designed and constructed at the Saskatchewan Research Council (SRC) so that a study comparing three different technologies, as prospective candidates for the survey system, can be conducted. The devices being evaluated include a Senix ultrasonic sensor, an MDL Cavity Auto-Scanning Laser System (C-ALS), and a MESA Time of Flight (ToF) camera. The ultrasonic sensor is known to provide range data in foggy conditions but has low accuracy. The C-ALS has been developed for surveying remote cavities but is expensive and does not provide reliable data in fog. The ToF camera provides a high volume of data in a short time period, with potential to provide accurate information in extreme conditions, but has not been tested in a mine cavity application. Iterative closest point (ICP) registration is applied in an attempt to create a 3D point cloud from the scan data and to also compute rotation and translation of the ToF camera. This paper presents an overview of the challenges involved in conducting a survey within a JBS mined cavity, the analysis used to determine the suitability of each device, and the data collected from the test cavity.

Aug 1, 2013

By O. Moselhi

The purpose of this research is to evaluate the impact of Building Information Modeling (BIM) on Just-In-Time (JIT) material delivery, with a focus on how the use of BIM can help improve efficient implementation of JIT and reduce the cost of material management. Previous research and a number of case studies have addressed the positive impact of BIM on construction at large but none focused on JIT in construction. This paper presents a methodology for selecting reliable material vendors. It also utilises the integration of BIM and scheduling software to generate quantities of material and its required delivery time to improve the flow process and improve its reliability to minimise related delays and productivity losses arising from idle and non-productive time of equipment and labour on jobsites. 4D visualization is utilized to support coordination and timing of JIT material deliveries in an effort to minimize congestion on job sites. Case studies on JIT material deliveries are presented and the impact of BIM implementation on reducing the cost of material management is evaluated. The joint effect of BIM and JIT on quality control, elimination of waste, reduction of inventory buffers, and on relationships with material vendors are evaluated by analysing and comparing data from case studies. The paper also presents a methodology based on multi-attribute decision criteria for modelling the selection criteria for material vendors. The model can assist in ranking vendors not only based on cost and quality but also on their reliability in delivering material on time.

Aug 1, 2013

By J. Manchisi

This study has investigated the use of blast furnace slag as functional adsorbent for metal ions in acid mine drainage treatment. This opportunity has not yet been developed into a practical process partly because of limited understanding of rates and mechanisms of adsorption process and inconsistency in interpretations of adsorption data. The overall objectives were to determine the efficiency and mechanisms of sorption process of metal ions in a multiadsorbate system. We employed standard materials characterisation techniques to analyse composition, structure and surface morphology of the slag. Batch adsorption experiments were then conducted to study the mechanisms, kinetics and efficiency of metal sorption as a function of pH, phase ratio, mixing time, mass and particle sizes of slag. Both XRF and adsorption data suggested the slag to possess acid neutralising capacity. This slag is non-crystalline based on XRD pattern, has adequate porosity and pore volume comparable to similar commercial adsorbents but it has inferior pore structure, pore size distribution and BET surface area to be effective under wide applications. Metal sorption increased with decrease in slag particle diameter, decrease in initial metal concentration and increase in the mass of slag. Although slags have demonstrated to efficiently treat low concentrations of single and multiadsorbate effluents using fine particle sizes, they have limited capacity to treat multiadsorbate systems for some metal ions. This is probably due to low affinity, competitive adsorption or limitation in material?s adsorptive properties. Sorption mechanisms probably involve precipitation and ion exchange on the basis of alkaline pH and exchangeable slag surface ions. Sorption preference is proposed as Fe2+>Cu2+>>Cd2+>Co2+>Mn2+. Despite these limitations, deeper understanding of sorption behaviour of metal ions by slags for application in dilute and large volumes of effluents is necessary where precipitation and other standard techniques are either inefficient or uneconomic. Thus, this study has established that sorption capacity of slag to remove metal ions from acidic effluents is selective, limited to certain metal ions and for other ions only at low concentrations. Further adsorption studies in multiple solutes under various experimental conditions or those that can propose an economic slag activation process are needed that improves or widens adsorption window.

Aug 1, 2013

By S. Jain

Construction industry is considered as labour intensive, having shortage of skilled labour, unsafe with large number of industrial accidents. Construction industry requires high technology automation products (Robots) for improving productivity, safety, quality etc. Robots are developed by various countries in different areas like demolition, earthwork, bridge, tunnels, road work, underwater works, trenches and piping, maintenance etc. however they are still not used to their full potential by construction industry. Hence in this paper, the authors propose a ?model for adoption? of robots in construction industry. This model considers how a construction firm will adopt full scale robots like manually controlled machine, tele-controlled machines, computer controlled machines and cognitive robots and assimilate them through various stages.

Aug 1, 2013

By M. Uszko

The climatic area in which Poland is located requires heating the ventilation air at intake shafts during the winter season. Air heating of the intake shaft should ensure safe operation of hoisting devices; while at the same time it also affects the conditions of the mine environment. The paper presents the issues of shaft heating in coal mines in terms of the mining law, the effect on the conditions of the mine environment and heating technology solutions used in the mines of Kompania Weglowa S.A. (KWSA).

Aug 1, 2013

By Martin Grenon

This paper presents two case studies where fracture set orientation was quantified using three methods: a simple fracture pole grouping, a Fisher distribution and a Kent distribution. The three fracture orientation representations were then used as inputs for kinematic slope stability analysis. Differences showed up in the probability of sliding for all instability modes considered.

Aug 1, 2013

By K. Tarr

Acid-producing mine tailings are present at many active and inactive mine sites and pose an environmental liability due to the potential for acid rock drainage. Acid rock drainage originating from a tailings pile, a waste rock pile, or exposed sulfide-rich rock, can cause discoloration and turbidity in receiving waters, and the loading of ions mobilized by the acid can cause a decrease in aquatic flora and fauna, and reduction in the quality of groundwater. The primary cause of acid generation is the oxidation of sulfide minerals, predominantly pyrite and pyrrhotite. Considerable mine tailings are being stored on surface in vast tailings impoundment areas across Canada. In the tailings within this study, from the Sudbury, Ontario area, the sulfide mineral of primary concern with respect to acid generation is pyrrhotite. Different tailings types show varying and progressive degrees of oxidation correlating to their specific sulfur contents. The degree of oxidation is determined by the relative extent to which the sulfides have reacted as well as the depth of oxidation within the tailings. Natural Resources Canada, CanmetMINING is dedicated to research supporting the Green Mining Initiative, a program reducing business risks by demonstrating practices that reduce environmental impacts. In cooperation with the Canada Mining Innovation Council (CMIC), applied research aims to reduce land disturbance, waste volumes, and releases to the environment. By reutilizing tailings from vast impoundment areas as a component in backfill, the potential environmental impact would be lessened considerably, due to the reduced tonnage stored on surface long-term. From an operating perspective, there is a need for supplemental feed for backfill from time to time. The reclamation of old tailings for use in backfill is also driven by the fact that old tailings ponds may not be structurally stable, and it may be more cost effective to remove the tailings than to upgrade the impoundment structure. However it is imperative that these old tailings be fully characterized to determine their suitability for use underground, in order to ensure the long-term integrity of the resulting backfill matrix. A study was conducted to investigate the feasibility of tailings reclamation from old impoundment areas as a significant component in backfill. The materials were first physically and chemically characterized, followed by preparation of samples to determine optimal mix proportions for strength development for both paste and hydraulic fill compliance. It was found that the amount of oxidized tailings included in the backfill material had a profound effect on both the segregation and settling properties of the backfill matrix, as well as the mechanical properties of the samples. The strategies for decision-making, based on the criteria for material characterization, mining plan, and cost effectiveness are discussed.

Aug 1, 2013

By Zoë Mullard

Just as a mine has a lifecycle, employees working within the mining sector also make several transitions throughout their career, from initial recruitment to retirement from the industry. Throughout the employment lifecycle, employees bring skills and knowledge that significantly contribute to the global economy. These skills are developed through education, professional training, coaching and through hands-on experience. Despite the current economic conditions and the demand for minerals, the mining industry is facing a substantial skills shortage due to the disparity between the number of new workers entering the mining industry and a largely ?graying workforce?. Although educational programs continue to evolve to attract people with a wide range of skills, the diversity of jobs and the strains of working in remote mining operations continue to present challenges for recruitment and retention of employees. This gap also presents challenges around knowledge transfer at a corporate and mine-site level; employers will require cultural and techno-sociological approaches to ease through these transitions. At the same time, there has been an explosion of social media tools that facilitate information sharing, cross-organizational collaboration, distance learning and knowledge capture. These tools have become increasingly popular in the last few years and their applications vary widely. The mining sector has started to adopt these tools for a number of purposes, including opportunities to harness social media to enhance human resources interactions, outreach and oversight. This paper will outline several case studies that explore leading practices for how the application of new media can assist organizations and individuals as they progress through their careers. This paper will illustrate how new social media communication technologies can be used to increase employee engagement and build organizational capacity in the mining industry. The paper will also include strategies for how to implement social media to enhance human resources applications and will cover ideas for monitoring and evaluation.

Aug 1, 2013

By E. Onal

Mining operators are faced with complex information delivered by technology-centric rather than user-centric systems. The ability to achieve high situation awareness (SA) in the face of this data overload is a key challenge for effective decision making and information exploitation. Incidents that result in loss of revenue and even life, and compromise safety that are attributed to human error are often the result of system designs that overload human cognitive capabilities. This paper focuses on defining SA as it relates to mining operations and presents methods for improving SA through a scientific approach for electric shovel operator user interface development.

Aug 1, 2013

By Yu-Min Cheng

Over the past two years, the construction industry has increasingly recognized the benefits and capabilities of building information modeling (BIM) for information integration, visualization and parametric design, reducing the duplication of work and complexity of interface integration, while significantly saving both time and cost. However, due to the variety of participants in engineering projects, the differences between data definition, data format, and data storage increase the difficulty of integrating data from diverse sources. Therefore, buildingSMART has developed a common data schema, called Industry Foundation Classes (IFC), that makes it possible to hold and exchange relevant data between different software applications, to increase the efficiency of BIM work and to ensure a consistent and high-quality output. This paper presents a novel methodology that assists in facilitating the import and export process for parametric BIM objects between heterogeneous BIM systems. This methodology is based on the IFC data schema and includes graphical and non-graphical description data. The objective is to retain the geometry, parameters, unit, texture and links of an object during exchange and sharing to ensure that data integrity is maintained. To sum up, this research addresses the issues of transferring parametric BIM objects between heterogeneous systems to increase data integrity and reduce transfer and integration times.

Aug 1, 2013

By M. J. A. Ruszala

Aggregates production is a huge global industry which uses an enormous amount of energy and produces a massive amount of unsalable fines. Reducing the amount of energy used per tonne of product and/or the amount of fines produced, would make a quarry more efficient. This reduction would make the quarry more environmentally friendly and profitable. This research looks at modelling Mountsorrel Quarry, a granite quarry in the United Kingdom (UK), using JKSimMet and Split-Desktop software packages in conjunction with the European Union (EU) project, EE-Quarry. Samples submitted to drop weight tests confirmed Mountsorrel Quarry granite as an extremely hard granite. Rock fracture data (t10) and energy of comminution (ECS) data were obtained from analysing the results. Split-Desktop image analysis software was utilized to determine the particle size distribution (PSD) of the primary crusher feed, as it contains particles too large to screen manually. It was also found that <1% of the feed is fines, which at Mountsorrel Quarry are classed as particles smaller than 5 mm, and that no particles were larger than 3,810 mm. JKSimMet was used to create a flowsheet of Mountsorrel Quarry. The crusher product PSDs were simulated and found to have strong correlations with experimental data, calculated by screening samples from conveyor belts, especially in the fines region, with a mean difference of 1%. The simulated primary crusher product PSD showed that it contains ~6% fines. A simulation over the entire quarry showed the product to be within the size range produced at Mountsorrel Quarry, and with a simulated fines content of 13%. When the CSS on the primary crusher was altered from 165.1 mm (the operating size on site) to 100.0 mm, it increased the overall percentage of fines produced by 3%, increased the power draw by 140.6 kW, but reduced the overall plant production percentage of fines by 2%. Two blasts were analysed on adjacent rock faces. They had identical blast designs, but the order of deck detonation varied; the first blast detonated the bottom deck before the top and vice versa in the second blast. For each blast, measurements of the feed PSD to the primary crusher, the number of particles that required secondary breakage on the quarry floor, acoustic levels and vibration readings were measured. No significant difference was identified between the two blasts in any of the parameters measured. In conclusion, a working model of Mountsorrel Quarry has been made in JKSimMet that has been validated against data from site and Split-Desktop has been used to simulate the primary crusher feed PSD, something that was previously unknown. The effect of reversing the order of deck detonation in a two deck blast was also analysed but with no significant difference between the two blasts found.

Aug 1, 2013

About MAC ? The national organization of the Canadian mining industry ? Mining, smelting and refining of base and precious metals ? Mining of iron ore, diamonds, uranium, oil sands, coal and industrial minerals ? Many associate members ? www.mining.ca

Aug 1, 2013

By Mohammed Sakr

The empirical relationship between torque measured during installation and pile capacity has gained a wide acceptance in the helical pile industry in the last few decades. This paper presents a theoretical model developed to estimate torsional resistance of cohesive soils to helical pile installation. The proposed torsional resistance model was then used to establish torque factor, Kt, a factor that is widely used in the industry. The results of the study indicated that the Kt factor is a function of the load path (i.e. tension or compression), pile geometry and soil properties. The assessed Kt factors in tension and compression were validated by the results of 74 installation records and full-scale helical pile load tests. A parametric study was also performed to qualitatively assess the relative importance of different parameters that affect the Kt factors.

Aug 1, 2013

By Zhen Lei

In Alberta, Canada, heavy industrial projects are constructed using a prefabrication approach: spools and pipes are produced in the factory, and are assembled into modules that are transported to the industrial plants for installation by mobile cranes. Planning the onsite mobile crane operations is critical to the project budget and schedule. However, due to the large magnitude of industrial projects, manual heavy lift planning is tedious, and the results are not particularly responsive to site changes. This paper introduces an integrated mobile crane management system developed by PCL Industrial Management Inc., in collaboration with the University of Alberta, which investigates crane location selection and path checking for field module assembly. The project information is stored in a database, and the proposed system retrieves data, performs the calculations, and records the results back to the database; the calculations involve automatically selecting locations for the mobile crane, considering the crane capacity, lifting range and utilization. Lift paths for modules are checked for feasibility based on selected locations, satisfying the site and crane configuration constraints, and crane walking paths are planned if needed. The designed system is tested in an industrial project to validate the effectiveness of the system.

Aug 1, 2013

By E. G. Baltuch

Natural Ventilation in mining and metallurgical processing applications is key to proper operation function. There are number of ventilator designs available to a project team or design engineers, the selection of which will affect both the type of building structure required, project costs and design performance which is difficult to rectify or re-engineer once implemented. Research and applied results, such as that performed by Air-Therm Inc., demonstrates that computational fluid dynamic simulation allows for 5 dimensional observation, analysis and optimization at significantly lowered cost than previously possible. These results have been fully implemented on a number of mining and metallurgical applications and the company continues to study, optimize and innovate as new tools become available to provide the best possible engineered solutions for particular applications.

Aug 1, 2013

By Saba Gharedash

In this study the results of a series of numerical simulations which are conducted for one of the tunnels of the Mashhad metro line 2 project are presented to evaluate the role of tunnel face support pressure and soil strength parameters on deformation of tunnel lining and face deformation. To achieve this goal, comparative numerical simulations of a mechanized tunnel advance in soft non- homogeneous soil on top of the ground water table and beneath the building are conducted and sensitivity analysis is performed. Development of a step by step tunnel construction process is modeled using a three dimensional finite difference model (FLAC3D) taking into account all the relevant components of shield tunneling. In order to understand the mechanism of the effects of a variety of support pressures on face deformation and lining stresses, numerical simulations are conducted. It is found that the use of different face supports causes a considerable influence on the forces of tunnel lining. In addition, it is revealed that building weight help to change the stress paths and the stress distributions in the tunnel lining.

Aug 1, 2013

By Son Hye Jin

Abstract ? KHNP is participating in the construction of Nuclear Power Plant both in Korea and UAE. ? We want to improve our construction project management process. ? So we are now developing the process model on nuclear power plant construction management. ? For the effective adoption of this process, we are planning to develop IT system. ? For the first step, we were established the Information Strategy Plan

Aug 1, 2013

By J. Someehneshin

Nowadays along with population growth, industry development, consumption of mineral resources and the fact that the reserves on hand are running out, the depth of surface and underground mines for further exploitation are increasing. During recent years, in underground mining, the block caving method for low-grade and large-scale deposits has shown a growing rate of application. This method is very cost effective and economically affordable. The dimensions of blocks are one of the most important parameters which should be taken into account since it has been proved to have a great deal of effect on technical issues such as commencement of caving and mine design. Proper calculation of the length and width for a block in this method leads to proper caving and discharging which are the most important stages. Therefore, in this method, the calculation of the optimized dimensions (length and width) of blocks is not only important but also directly helps the productivity of extraction. In this study, firstly for the purpose of facilitation, some assumptions were considered and having used these assumptions for estimation of optimized length and width of block, a relationship based on rock mechanics and physics was explored. Furthermore, some necessary details were added to the said relationship and finally, it was transformed into an inequality. Solving this inequality provides us with the optimized length and width of the block. The explored relationship was analyzed with MATLAB software and the graphs thereof were drawn. In these graphs, each time one of the input parameters has been drawn up in a logical range so that it could be compared with previous states.

Aug 1, 2013