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By H M. Ahmed, W S. Dunbar

Construction of cave mining systems requires significant capital expenditure and long-term commitment of human, equipment and material resources before production commences. Risks and uncertainties of these large-scale mining projects are significantly higher than for small-scale projects. This is due to the complexity and interactions of the construction schedule components and the large scale and uniqueness of such projects. One way to successfully manage construction uncertainties that would lead to schedule delays is to include a reasonable cost contingency in the budget estimation. A real options approach based on the least-squares Monte Carlo (LSM) method is used to estimate cost contingency associated with schedule uncertainty in mass mining projects. Cost contingency is estimated as the cost of potential project crashing (acceleration) decisions, which pays for not extending the schedule. While such a significant undertaking is expected to be subject to some delays, these can have an enormous impact on the economic value of such projects. The value of the crashing option was explicitly formalised into the process of valuation, as it is assumed to be a single option being considered in the valuation at every decision point prior to the construction completion date. As a part of the proposed method, a stochastic function for the percentage of remaining scope of work for the remaining duration of the entire project was integrated into a framework of numerical simulations. This ensured that this function can implicitly account for sources of schedule uncertainties for projects represented by multiple and overlapping work packages. The LSM method was applied to a real case scenario in an operating block cave mine, with modified scale and features. The results yielded by the LSM method indicated that significant changes in capital budget allocation stem from variation in a contractor’s risk perception and confidence level of estimated delays.CITATION:Ahmed, H M and Dunbar, W S, 2016. Budget estimation and contingency allocation of block cave construction using least-squares Monte Carlo real options, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 801–808 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By R. G. Gillies

The pipeline transport of paste, backfill or thickened tailings slurries is an important component of the tailings disposal process in many mines around the world. These mixtures contain significant fractions of fine (clay) and coarse (sand) particles, causing them to exhibit non-Newtonian flow behaviour and high frictional pressure gradients. There is often economic incentive to operate these pipelines in the laminar flow regime. Irrefutable evidence has shown that coarse particle settling can occur during the laminar flow of these slurries even when static settling tests show no indication of such behaviour. Previously, a ?rule-of-thumb? minimum frictional pressure gradient of ~1.5 to 2 kPa/m was suggested to ensure effective sand transport, based on the results of tests conducted using viscous Newtonian oils. In this paper, we examine the results of laminar flow tests of non-Newtonian, coarse-particle laden slurries conducted with pipeline loops of 50, 100, 150 and 250 mm in diameter. The results indicate that the ratio of the mean wall shear stress to the mean surficial particle stress is a better indicator of laminar flow settling tendency than frictional pressure gradient.

Jan 1, 2007

By Kanchan K. Sen

The North Shore Connector (NSC) project will extend the Allegheny County Port Authority?s Light Rail Transit System from downtown Pittsburgh below the Allegheny River to the North Shore via twin bore tunnels. Jet grouting, diaphragm walls, and soil mixing were selected as cost-effective technically viable ground improvement and support of excavation techniques. Jet grouting was specified to provide break-out (egress) and break-in (ingress) block sections at the tunnel boring machine (TBM) launching and receiving pits. Jet grout treatment was also used adjacent to buildings with shallow foundations and below retaining walls along the tunnel alignment. A new method for measuring jet grout column diameter based on electrical resistivity was employed on the project. New equipment was introduced in the U.S for constructing soil mix temporary support of excavation using a soil-mix technique termed Cutter Soil Mixing (CSM) due to the use of two vertical cutting wheels that have evolved from diaphragm wall trench cutter technology. The system allows for continuous water tight soil mix panel construction including steel beams. This paper highlights some applications of jet grouting and various support of excavation systems (e.g. slurry walls, cement bentonite walls and CSM walls), including new innovative techniques (e.g. Cyljet and CSM) used under the constraints of an urban environment.

Jan 1, 2010

By R. V. Ramani

One area of study in the Coal Mine Injury Analysis project was to illustrate and enhance the ability o mine safety management personnel to apply analytical techniques to Injury experience data and to justify requests for funds for safety enhancement actions on a cost/benefit and other quantitative basis. Four volumes of this final project report detail (1) the objectives and scope of the mine safety management research, (2) the results of literature review, and case studies, and (3) models developed for mine safety management. The four volumes are titled as Volume III: Mine Safety Management, Volume IV: Analytical Techniques for Mine Safety Management; Volume V: Mine Safety Management Case Studies and Volume IX: Training Cost Model. In this volume, the application of the quantitative procedures to mine-specific accident/injury experience data is discussed in detail in the form of case studies. The accident data from three mines are analyzed, and recommendations for training are proposed for each of the mines on the basis of this analysis. The procedures to apply cost-benefit analyses are described along with the cost benefit ratios for the training program/policies for the mines.

Jan 1, 1993

By Zephaniah Varley, Satoshi Akai, Richard Sage, Steve Redmond, Mike Murray, Rohit Shetty, Gerald Skalla

One would be hard pressed to find another project as complex as this one given its configuration, the variety of issues to address and the required construction techniques. Contract C710 is currently under construction as part of Sound Transit’s Link Light Rail, connecting downtown Seattle with Sea-Tac Airport. The paper describes the construction-to-date of the deep mined station under Beacon Hill using the Sequential Excavation Method (SEM). This deep “binocular” station is being mined through some of the most challenging soft ground conditions in the USA. The excavated volume of the station is approximately 60,000 cy (46,000 m3) and the station comprises a variety of geometries and cross sections ranging from 235 sf (22 m2) up to 1,670 sf (155 m2). This underground complex includes platform, concourse, cross-passage and emergency ventilation tunnels together with station egress and ventilation shafts. Various excavation sequences are in use for the different tunnels including the twin-sidewall drifts for the impressive45 ft (13.7 m) wide by 42 ft ( 12.8 m) high concourse cross adits. This station has two train platforms approximately 165 feet (50m) below the surface. This station, constructed in highly variable glacial deposits including water bearing sands and silts approximately 50 ft below multiple perched water tables in an urban setting, creates a very unique and challenging situation. The ground is being managed with various types of ground improvements such as jet grouting and vacuum assisted deep dewatering wells from the surface, and from underground by use of “SEM Tool-box Items” such as barrel vault canopy, grouted pipe and rebar spiling, chemical grout,

Jan 1, 2007

By P M. Ashley, M Muller

Massive sulphide ZnPbCuAg deposits in the Halls Peak district of north-eastern NSW are of the submarine volcanogenic type. They occur as a number of small lenses enclosed in shale and epiclastic rocks, in association with felsic volcanics of early Permian age. The deposits crop out in steep terrain near the eastern edge of the New England plateau. Local relief of 700 m and slopes up to 50¦, coupled with an average annual rainfall of about 1000 mm has led to local severe land sliding in previously mined areas. Mining from the 1890s to the 1960s has also resulted in unconstrained drainage of heavy metal-bearing acid waters and physical dispersion of finer grained metalliferous sediments into the Chandler River. Waters emanating from the main landslide area, from underground workings and draining scattered unconfined stockpiles of massive sulphide ore have pH values of 3 to 4 and contain elevated contents of Zn, Cu, Pb, Cd and Fe. Chemical mobility of heavy metals into streams occurs under low pH conditions with Zn exhibiting the greatest dispersion. Increasing pH conditions downstream cause precipitation of Fe phases and coprecipitation of heavy metals. Physical dispersion of secondary metal-bearing minerals into the surrounding creeks results in wt% levels of Cu, Pb and Zn in the stream sediments thereby exceeding the regional background values by one to three orders of magnitude. Areas disturbed by mining are characterised by lack of vegetation, biomagnification of heavy metals into algae and lower plants, and partial recolonisation by metal-tolerant grass species (Snow Grass, Poa sieberana; Blady Grass, Lomandra longifolia). Rehabilitation measures will have to include landslide stabilisation, impervious sealing or removal of sulphidic materials, import of topsoil and revegetation by metal-tolerant, slow-growing native grass and shrub species.

Jan 1, 1995

By Berger

A detailed description is given of radio apparatus for controlling a coincidence outfit for relative gravity measurements. This is probably of little interest, since many types of apparatus could be used. The general method employed is the interesting thing about this paper. As long ago as 1883 von Sterneck made a proposal to control two coincidence boxes with the, seine, clock, and many persons have suggested the use of radio for this purpose. In accomplishing this it would appear to the reviewer that this method is probably inferior to that used by the Marland Oil Co., but Berger and Brückner must be given the credit for important advances in the coincidence method. In their apparatus a clock at a central station actuates a relay, which operates a short-wave transmitter (40 m.). At the receiving station the amplification is accomplished at low frequencies... The signal operates a relay which moves a slitted screen in a coincidence apparatus. This screen has been improved considerably, to decrease the mean error in observing a coincidence. As usual, a telescope is used to observe the flashes of light. It has a scale in its focal plane and positions of successive flashes are easily read off and recorded by a second observer. This makes possible' a: higher accuracy in determining the exact instant at which coincidence would have occurred at the zero point on this scale. This method obviously depends on the constance of the mechanical and electrical lag inn both sending and receiving apparatus, and may be adversely criticized from this standpoint. -- A. E. Ruark.

Jan 1, 1929

By Axel Preusse

For the last 150 years, subsidence damage to the surface has been an unavoidable phenomenon associated with underground coal mining. In particular, the mechanization of mining methods in multiple seam mining and the concentration of mining activities in densely populated European metropolitan areas (e.g., Ruhr, Upper Silesian industrial region) have led to mining having a very strong influence on the earth?s surface. In both these regions, surface subsidence of more than 20m has been reported up to now in comparison to the original state. Underground coal mining in these regions strongly impairs all kinds of surface use, such as urban and industrial development, infrastructure (roads, waterways, and railways) and pipelines?without restricting the functionality of those objects to a greater extent. Demanding and, in some cases, globally unique engineering solutions have been developed and implemented for this purpose. The previously mentioned mining and industrial regions are still very strongly characterized by the (increasingly declining) coal industry and will remain dependent to a large extent and for an indefinite period on artificial drainage measures because subsidence that has already occurred is irreversible. This paper will primarily discuss the prediction of subsidence that is caused by intensive multiple seam mining and its influence on surface objects (e.g., underground pipelines). However, an approach for predicting ground uplifts due to rising mine water as a consequence of mine closures will also be described.

Jan 1, 2012

By J. Kruttschnitt

This paper, describing the mining operations at Mount Isa Mines, is one of a series covering mining methods and costs being published by the United States Bureau of Mines. The Mount Isa property has been in operation since June 1931; during this period operations have changed from the production and treatment of carbonate ores to the mining, milling, and smelting of sulphide ores. This change involved revision of ore-extraction methods. Stoping methods have been designed to apply to parallel lodes ranging from 10 to over 100 feet in width and dipping at 50° to 60°. The hardness and strength of the ore and enclosing wall rocks, together with the strength and thickness of the country rock between lodes, have permitted the selection of a sublevel stoping method for mining the sulphide ores.

Jan 1, 1937

By Clair Murdock, David Heath

The 1,280 MW Sir Adam Beck II Hydroelectric Project was constructed in the1950s, at Niagara Falls, Ontario, Canada. The twin intake tunnels total over 17 kilometers in length and pass deep below the City of Niagara Falls. The tunnels were excavated using drill and blast methods, with a top heading and bench approach. The shot rock was loaded with electric shovels and transported to the five shafts with off-highway trucks. The tunnel muck was hoisted to the surface by skip and transported by truck to disposal areas. The volume of underground excavation for the 15.55 meter diameter tunnels and the shafts exceeds 3,500,000 cubic meters, then and now the largest underground civil works excavation by drill and blast in the Western Hemisphere. The lining required over 900,000 cubic meters of concrete. All of this work was completed in three years, remarkable progress, considering the technology of the day, comparing very well with the rapid excavation and tunneling methods of the twenty-first century. Big, fast, and deadly—at least 20 lives were lost in construction accidents.

Jan 1, 2007

By Robert B. Parsons

"The Canadian mining industry is not off to a good start in the 1993/94 budget season. Of the five provinces and territories to table budgets as of March 31, 1993, the industry's scorecard shows: one win, one tie, and three losses.IntroductionBy the end of March, five of Canada's twelve provincial and territorial governments had tabled their 1993/94 budgets. The mining industry is off to a bad start. The industry's scorecard shows one win, one tie, and three losses. Only Newfoundland appears to be paying any attention to the industry's concerns about the impact of taxation on competitiveness. It is particularly disconcerting to see that non-profit based taxes continue to increase, at a time when these taxes are the focus of a united attack by the entire industry.NewfoundlandFirst, the good news. On March 18, 1993, Finance Minister Winston Baker announced the following changes to the province's mining tax regime:"

Jan 1, 1993

By Robert Vergie

Like most of you, I would rather work on a job than talk about it. But it is fruitful to spend some time taking stock of important developments in the heavy construction field. One of the strongest recent movements affecting the industry has been the push for safety. I regret that it is a recent development. Not that builders were against safety. Too often though, it was easier to continue with dangerous old work methods than to try something new. Too often, it was easier for equipment manufacturers to build production tools with little consideration for worker safety. And too often, accidents and gruesome disasters occurred. The ultimate result of on-the-job injuries in construction and other industries was the Federal Government's Occupational Safety and Health Act of 1970. Individual states were required either to accept OSHA or pass updated regulations at least as stringent as the Federal requirements. These new rules must be strictly obeyed -- not just because they carry civil and criminal sanctions -- but because they correct unsafe conditions and reduce hazardous acts. Though some OSHA measures have been criticized as superfluous, most of them do in fact save lives and limbs. Equally important, the tunneler who follows the new safety regulations can be fairly certain of an efficient, uninterrupted operation. Regulations do sometimes bring rewards.

Jan 1, 1974

How the Australasian and Canadian Codes (VALMIN and CIMVal) approach mineral property valuation is described. Brief comment is also made on the International Valuation Standards CommitteeÆs interest in a global valuation standard for Mineral (Extractive) Industries and the South African SAMREC initiatives to adopt a VALMIN-like Code. The conventional tripartite classification of valuation approaches into those that are Market-based, Income-based and Cost-based is outlined. It is best practice to use as many of these approaches as possible (and as many methods as reasonable in the particular circumstances), given the quantity and quality of the data available on the Mineral Asset (which depends upon the state of development of the mineral property). The use of specific methods must satisfy the basic considerations of logic and reasonableness and the purpose of the valuation. The competence, judgement and repute of the valuer are critical factors, since all valuations are time and circumstance specific. What constitutes æMarket ValueÆ in the different jurisdictions is discussed and definitions are given. Challenges facing the globalisation of a VALMIN-type Code for the international Minerals Industry are the influence of real estate valuers and the US jurisdictional idiosyncrasies. This is mainly due to a fixation on real property rights with a preference for using real estate-like comparative sales techniques (Market Approach) to the exclusion of Income-based approaches; a regulatory reluctance in the US to accept that Resources have considerable value; and the International Accounting Standards BoardÆs preference for Historical, rather than Current Value, accounting.

Jan 1, 2002

By L. E. Cardwell

This publication contains routine analyses and related source data for 475 natural gas samples from 17 States and two foreign countries. Of this total, 454 samples were collected during calendar year 1971. The remaining 21 samples were collected during previous years, but releases granting permission to publish the analyses were not received until 1971. All samples were collected as part of a continuous survey of the free world for occurrences of helium in natural gas. This survey has been conducted in the United States by the Bureau of Mines since 1917. In late 1965, the survey was expanded to include foreign gasfields. The analyses published herein were made by mass spectrometer and a special helium analysis apparatus, which are described in Bureau of Mines Bulletins 4863 and 576.4 Thirteen previous publications have presented the results of 9,427 gas analyses prior to 1971. The first three, Bulletins 486,5 576,6 and 617,7 contain analyses and related source data on 5,218 gas samples collected from

Jan 1, 1972

By F. P. Haver

Primary lead is produced in the United States by the pyrometallurgical smelting of lead sulfide (galena, PbS) concentrates, which poses sulfur dioxide and lead air pollution control problems. The Federal Bureau of Mines has investigated an alternative hydrometallurgy procedure that does not generate gaseous sulfur oxides and diminishes the potential for the escape of lead into the atmosphere. The procedure involves leaching galena flotation concentrates with ferric chloride (FeC13) solution to obtain lead chloride (PbC12) and elemental sulfur as expressed by the following chemical reaction: PbS + 2FeC13 ? PbC12 + 2FeCl2 + S°. At 100° C, over 99 pct of the PbS in the concentrate is converted to PbCl2 in less than 15 min. The leach solution, composed of brine (NaCl) containing slightly more than the theoretical required amount of FeC13, dissolves the PbC12 as it is formed, leaving a residue of elemental sulfur plus gangue. High-purity PbC12 (>99.9 pct) crystallizes from the leach filtrate on cooling and is electrolyzed in a low-temperature, fused-salt cell to obtain corroding-grade metal (>99.94 pct Pb). Spent leach solution (FeC12) is regenerated for further use by reaction with the chlorine obtained in the electrolysis of lead chloride. Other values, such as Ag, Cu, Zn, and S°, are recovered by additional treatment of either the leach solution or leach residue.

Jan 1, 1976

By Philip E. Niebuhr

A procedure, which can be performed in the field by nonanalytical personnel, is given for sensitive spot tests for detecting tellurium or selenium. The expressed need of a field test for detecting small amounts of tellurium, which may be accompanied by relatively large amounts of selenium, has led to the development of this method. Tellurium search has been impeded by the lack of a satisfactory test from the standpoint of sensitivity and specificity. A quantitative laboratory method exists, but it is expensive and relatively laborious. Several other qualitative tests are known, but they require unstable solutions, which must be freshly prepared for use, and a greater variety of laboratory equipment. The particular advantages of the test described are its simplicity and the stability of the reagents required, there-fore is is well adapted for field use. Also, this test was found to be of practical use in the analytical laboratory when screening samples, thereby reducing analytical costs. The roughly quantitative interpretation of the results can save time by indicating the approximate size of the sample taken for a quantitative determination.

Jan 1, 1962

By R. L. Mazza

This final report on methods of reducing and controlling methane in coal mine gob areas indicates that vertical degas holes are beneficial to the mines of northern West Virginia working the Pittsburgh Coal. The USBM funded project involved the drilling and testing of eight vertical holes (four over longwall panels and four over room and pillar panels) based on a review of 13 previously in existence. Areas of observation included gas production history, flow entry profile, underground methane reductions, strata separations, and casing loads (accompanying subsidence). Observations led to the drilling of successful holes drilled short of the mine. Eleven gas production response to applied vacuum tests were conducted at nine degas holes under the contract. Significant production responses were recorded over longwall gobs.

Jan 1, 1977

By J. D. Dixon

This Bureau of Mines report describes a technique for determining the confining pressures that must be provided for stabilizing underground openings in incompetent rock. The technique is adapted for use with a nonlinear finite-element computer code, NONSAP, to obtain stabilization pressures for linear or nonlinear stress distributions in the rock media around the excavation. This analysis permits a point-wise calculation of active rock pressures that depend on the values of shear stress and strength along the excavation surface. The approach is applied to the solution of several sample problems. The results show that both the magnitude and the distribution of stabilizing confining pressures are significantly influenced by rock and joint strengths, joint orientation, and biaxial nature of the load field.

Jan 1, 1976

By Robert Vinson

This article examines the spatial variability of dust concentrations within a coal miner?s breathing zone and the impact of sampling location at the cap lamp, nose, and lapel. Tests were conducted in the National Institute for Safety and Health Pittsburgh Research Laboratory full-scale, continuous miner gallery using three prototype personal dust monitors (PDM). The dust masses detected by the PDMs were used to calculate the percentage difference of dust mass between the cap lamp and the nose and between the lapel and the nose. The calculated percentage differences of the masses ranged from plus 12% to minus 25%. Breathing zone tests were also conducted in four underground coal mines using the torso of a mannequin to simulate a miner. Coal mine dust was sampled with multi-cyclone sampling cans mounted directly in front of the mannequin near the cap lamp, nose, and lapel. These four coal mine tests found that the spatial variability of dust levels and imprecision of the current personal sampler is a greater influence than the sampler location within the breathing zone. However, a one-sample t-test of this data did find that the overall mean value of the cap lamp/nose ratio was not significantly different than 1 (p-value = 0.21). However, when applied to the overall mean value of the lapel/nose ratio there was a significant difference from 1 (p-value < .0001). This finding is important because the lapel has always been the sampling location for coal mine dust samples. But these results suggest that the cap location is slightly more indicative of what is breathed through the nose area.

Jan 1, 2007

This report summarizes a study conducted by The Service Bureau Corporation for the Bureau of Mines. Evaluations reflected herein are the result of an independent investigation by The Service Bureau Corporation of methane considerations during coal mining. The study is oriented toward a systematic analysis of methane control problems during coal mining. Throughout this study an attempt has been made to ensure considerations consistent with the recently enacted Federal Coal Mine Health and Safety Act of 1969. References to reports by The Bureau of Mines and others are made for the purposes of establishing identification between the evaluations contained in this report and on-going research efforts.

Jan 1, 1970