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By G Lumley

Gold miners have been underperforming the price of gold for a number of years. So why has the æmarketÆ undervalued our gold miners relative to what they have been mining? The low valuation ascribed to gold mining companies is largely attributable to their profit performance. In the period since 2006 the price of gold in A$ has risen about $900/oz, but the real cash margin (operating cash costs + cost of finding and/or acquiring deposits + the cost of bringing them into production) has only risen about A$100. Rising operating costs are a major part of this reduction in real margin. Energy and labour costs have risen more than the inflation rates across a number of countries as have taxes, royalties, etc. There are however, more significant contributors to the rising cost base. Firstly, in 2006 the average gold grade was 2.0 g/t; today it is 1.3 g/t. Secondly, strip ratios (for surface mines) have increased by 19 per cent during this time. Open cut mining equipment unit output across the world has dropped by 26 per cent during 2006 - 2012. Finally, costs have risen by 55 per cent during this time period. Consequently, there is now 3.8 times more mining cost required to produce an ounce of gold from surface mines compared with 2006. The decline in gold grade looks to be a permanent trend as does increasing strip ratio if output is to be maintained. Costs will continue to rise although cost control will be necessary. Reversing the decline in equipment performance and closing the gap between median and best practice provides the hope for a sustainable reversal of cost increases. The current gap between best practice and median performance has grown to 112 per cent for mining trucks, 168 per cent for excavators and 169 per cent for front end loaders. Closing this gap is the potential for a more profitable future. For most gold mining companies improving mining efficiency is not an option; it is an imperative.CITATION:Lumley, G, 2013. How many gold mines will inefficiency kill?, in Proceedings World Gold 2013 , pp 267-276 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 26, 2013

By H. Allenius

Today, most requests for quotations force all bidders to follow the bid document to the letter. The choice is then made based on price since it is the only difference in technically identical offers. However, clients allow and even encourage suppliers to come up with alternatives. Overall economy again, is much more than low investment costs. Operation costs may affect the economy of a project far more than a million saved in investment. There is almost always the choice: Should we go for the cheapest solution or should we go for the most economical solution? We strongly recommend the study of the long-term effects on investments as they often surpass any apparent savings in capital expenditure. With high operating costs, time is never on our side. Almost all relevant inputs and outputs in a concentrator have a value that can be expressed in a suitable currency. Unit prices may differ substantially from one operation to the other, but everything has a price tag and globalization has made it possible to move both goods and services to almost any place in the world. Even a rather simple exercise can give a good indication on which process improvements are worth pursuing when investing in new systems or equipment. The ones that do not qualify, as money earners, will naturally appear as clearly. No ?rocket science? is required, just process knowledge, practical experience, an open mind and some common sense and the reward may be the difference of having a good or an excellent project. The model we have developed can be made as detailed as required, but we do not recommend too much detail, as it sometimes tends to distract work and obscure the important issues. Two different process solutions compared in a simplified example illustrate the importance of evaluating a project based on its long-term effects rather than focusing on the investment costs only.

Jan 1, 2014

By M Pyle, R Ch, T Vizcarra, ramohan, G Lane, G Ballantyne

Preconcentration, through gravity separation (Wallace et al, 2015), magnetic separation and particle size (Clout, 2013), has been used in many historical projects to convert low grade material into ore. More recently, pre-concentration technologies such as bulk sorting (Kurth, 2017), screening (Bearman, 2014) and coarse particle flotation (Vollert et al, 2019) have also demonstrated their ability to progressively reject waste through the value chain. These technologies can not only deliver stepchange improvements to the economics of mining operations, but can transform the environmental and social aspects by minimising water and energy consumption and significantly reduce the quantity of fine tailings produced. However, implementing progressive waste rejection requires technologies and approaches to be combined and applied in the right way to capture the value. From a technical perspective, progressive waste rejection introduces challenges related to the orebody, equipment performance, engineering and understanding the value chain from the resource through to final product. From a management perspective, the key issues are related to people and processes, in particular; motivating the business, challenging the paradigms, and introducing new ways of operating within the constraint of existing management structures to manage risks and minimise lost opportunity costs. This combination of technical and management issues means that progressive waste rejection is a complex undertaking for mining companies, yet the reward for the business and other stakeholders is potentially high and should not be ignored. This paper presents how progressive waste rejection can offer step-change improvements to the business case for high and low grade greenfield and brownfield projects based on case studies completed by Ausenco. The paper then outlines different implementation approaches from concept studies to execution to address the various technical and management challenges outlined above.

Nov 10, 2020

By W. R. Middagh, R. M. Garvey

"Phosphate rock is shipped by boat from Florida to Vancouver, B.C., where it is unloaded and stored in a 50,000-ton silo. It is shipped from Vancouver in 100-ton hopper cars in 80-car trains to Fort Saskatchewan. Both the ship and the hopper cars are on a back-haul with potash. The rock cars are unloaded at Fort Saskatchewan at a rate of approximately 4 cars per hour. The rock is stored in three concrete silos, 40 ft in diameter by 110 ft high, which hold 18,000 tons of recoverable rock with 2,000 tons dead space. The rock is reclaimed from the silos by gravity and fed to the phosphoric acid plant by remotely operated conveying equipment.Problems encountered in the operation include scheduling the rock shipments, contamination of the rock with potash, and handling the 80-car trains both in Vancouver and Fort Saskatchewan."

Jan 1, 1968

By J-M M. Rendu

Geostatistics are increasingly recognized as powerful tools for reserve evaluation and grade control. It is also generally accepted that geologic input is required for the results of a geostatistical study to be meaningful. The role of the geologist is significant at all stages, whether it be to oversee the creation of the database, to assist in the statistical and semivariogran studies, to ensure appropriate block evaluation and kriging, or to review the results obtained. However the link between geology and geostatistics is often complex and not well understood. A presentation is made of the areas where geologic input is needed, and of the tools which the geologist should have at his disposition to ensure that his role is fulfilled. Organization of a Geostatisticel Study To be acceptable as the basis for financial investment, a geostatistical reserve estimation should be composed of four phases, the last phase being optional: Phase 1 - Background discussions, Phase 2 - Computation, Phase 3 - Reserve reporting, Phase 4 - Reserve audit. During the background discussions (Phase 1) the role of the geologist is primordial, as it is then that most decisions will be made concerning the geologic factors to be included in the geostatistical model.

Jan 1, 1985

By Alan Diaz Butron, Eng. Thierry Bernard

"In tunnel blasting the most challenging objective is definitively obtaining the maximum advanceassociated to a minimum overbreak. Achieving 100% of advance with no overbreak is the targetchallenge by Chavimochic Consortium. Chavimochic Special Project is an irrigation system that extends throughout much of the coast of the La Libertad Region, on the north coast of Peru. In 2012, it began management for construction of the third and last stage of CHAVIMOCHIC to irrigate lands of Chicama Valley, North of Trujillo. This project of 13 Km (8 mi) of various tunnels, it's a combination of technology and daily optimization by experienced people, which allow to accomplish the objective. Achieving this advance with no overbreak provide a huge saving on time. This paper describes the method, technology used, and the results obtained on more than 600 blasts done with conventional initiation system on the first 3 km (1.86 mi)."

Jan 1, 2017

By Mark Colwell

As per most other earth science engineering problems, the underground coal geotechnical environment and the way in which roof and rib support interacts with the rock mass are complex issues. While the problem should not be oversimplified (i.e., the dominant failure mechanisms or critical data input parameters should not be ignored), without question judicious simplification is at the heart of all good engineering design. Engineers play a vital role in supplying the world with solutions and products; however it is crucial that engineers make practical and readily useable contributions. One way to ensure this is to employ simplification in the engineering process.

By C. J. H. Brest van Kempen

The techniques developed should provide a useful tool, not only during the initial formulation of a suitable bolting plan for a new section, but also for periodic check¬ing on the utilization factor of hardware installed in the roof. Indications are that with present practice, utilization seldom exceeds 507.. Retro-fittable bolter equipment now available (FCBS?) allows doubling of the utilization factor in many cases. We are also introducing a computer pro¬gram based on the material outlined in this paper. This program can save a great deal of time in examining the real effect of implementing alternate bolting plans or using different installation techniques. It allows fine-tuning of bolt lengths, spacing and installation tension to mini¬mize roof support cost, while maximizing safe life of the mine opening. We have developed a procedure which allows easy, site-specific quantification of the need for reinforcement of a mine roof. The concept is based on the forma¬tion of a direct link between theory and empirical data to custom-fit each mine section. In its simplest form, the proce¬dure requires only recording of roof bolt torques in a sample working place (16 to 25 bolts) several times during the first week or so after initial bolting. The way in which the torque pattern changes during this time can reveal whether or not the bolts carry enough tension to maintain stability in that specific roof. From the same data, the nature of the anchorage horizon is derived. Specifically, shale or limestone can be distinguished from sandstone. If the procedure is repeated a few times (within the same mine section) with different bolt installation tensions, we can numerically characterize the roof in terms of one single value: an "effective angle of internal friction". This number can then serve to calculate trade-offs in bolting plan design, such as bolt length, bolt spacing and optimum bolt tension. Additional refinement is possible if a sagmeter is installed in the sample work¬ing place being monitored and if bolt anchorage capacity is determined. The lat¬ter can be done automatically on each bolt as it is being installed, using a system we developed and patented. Alternately, a number of pull tests could be performed. Using the sagmeter, bolt torque and anchor¬age data, it is possible to project the safe life of the supported opening. The details of the procedures described apply specifically to tensioned roof bolting, but a brief discussion paints the way for a similar analysis of full-column resin bolting also.

Jan 1, 1986

By Edgar F. Cruft

It is sometimes said that "mines are made, and not found". I rather doubt that the exploration geologist would be overly sympathetic to that statement, and, of course, like most one-liners it is only partly true. As an explorationist who has been involved in building his own company over the last ten years, and by necessity has become a financier, I can appreciate what real grains of truth are in that statement, however. Because technical people are seldom taught financing in their basic training, and because they are usually not involved in it until at quite a senior level in their careers, the whole field often acquires a certain mystique. The engineering professions have too often believed financing is the province of the accountant or financial executive and just as we in the technical world are often too quick to bristle if the latter try to tread on our domain, the opposite can just as easily be true. Unfortunately, this is another example of a compartmentalized individual, and that is one thing the successful financier cannot be.

Jan 1, 1979

By Delbert L. Keenon

The principal concepts of computer control and automation have been successfully applied in industries world-wide, The enthusiasm generated by the proponents of computer control, and the apparent mystery enveloping the techniques of computer control, have caused attention to be focused on this infant industry from all quarters. Consequently, the motivation to "computerize" may be the hope that computers will solve all economic problems. The truth remains that not only have there been monumental successes, but there have been some colossal failures. This paper will attempt to outline a generalized guide to computer control and present methods for avoiding some of the major pitfalls. Since the investment required for computer control systems has been drastically reduced in the past year, small operations will likely find that computerized process control is attractive in areas where it has never been considered before, The discussion presented here is intentionally non-technical and directed towards those who may soon find they have a possible application for a control computer. The primary purpose of computer control is to reduce expenditure and increase profits by improving the quality of product, increasing the efficiency of operation, reducing the materials and man hours required or a combination of these. Success or failure to reach the desired goal depends, to a large degree, on a well-planned approach. This includes recognizing a possible computer application, properly defining the job which is to be accomplished, evaluating computer systems, selecting a capable manufacturer, and following through with sound systems engineering and programming.

Jan 1, 1965

By AIME AIME

HEREWITH is presented a preliminary report of a special committee, consisting of Erle V. Daveler, Paul D. Merica, and C. H. Mathewson (chairman), dealing with sundry matters of which many are of vital interest to all members of the American Institute of Mining and Metallurgical Engineers. As the report states, the initial purpose of the investigation was to determine ways and means to stimulate "the welfare and growth" of the Institute of Metals and Iron and Steel Divisions. However, it soon became apparent to the committee that most of the problems and possible correctives were of no less vital concern 1o members of the other Divisions and to the "unattached" group of members. Consequently, the Committee has authorized publication of the report and invites written comment from any member on the specific recommendations or on any other phase of the broad subject.

Jan 1, 1943

By Robert W. Greene

Next month, American Commercial Barge Line Company will begin moving coal from mines on the old Camp Breckinridge property in Western Kentucky to TVA's new 2600 MW steam plant at Cumberland City, Tennessee. By April of 1973, this movement will reach a level of 7,000,000 tons per year. TVA bought the coal rights to this property from the General Services Administration in 1965 for approximately $7 million. The reserve contains about 120 million tons of recoverable No.9 coal, and about the same recover-able amount of No. 11 coal. TVA then contracted through competitive bidding with Peabody Coal Company to mine the No.9 seam through two slope shafts. The mines are about 300 feet deep and are separated by the one major fault on this property. The mine portals are approximately 3-1/2 miles apart, with the northern portal being over nine miles distant from the Ohio River (see Figure No.1). In 1969 TV A took bids on alternate methods for transporting 120 million tons of coal to Cumberland City at seven million tons per year. These alter-natives included overland transportation to the Ohio River by rail or conveyor, water transportation from Union County, Kentucky to Cumberland City, and total transportation packages from Camp Breckinridge to Cumberland City. The latter could be a joint land/water package, or all land (rail). Ultimately American Commercial Barge Line was awarded an $88 million package transportation contract to convey the coal from Camp Breckinridge to Uniontown, Kentucky; to store it at Uniontown in a quantity sufficient to allow ratable delivery to the steam plant; and to barge from Uniontown to Cumberland City via the Ohio and Cumberland Rivers.

Jan 1, 1971

By R. W. M. Lai

The study of flotation kinetics was first reported by Garcia-Zuniga1 in 1935. Since then, literature on the subject has grown with the time. 2-19 Although there is an abundance of flotation kinet¬ics models available in the literature to describe flo¬tation systems, they are mostly of academic interest and are seldom applicable for use in the industrial environment. Several reasons contribute to the wide gap in the industrial -application of the academic models. These include: 1) the lack of generality in the model, e.g., the model is limited to certain size ranges; 14 2) the academic models involve complicated mathematics; 5,6,10,11 3) confusion about the order of the flo¬tation rate, e.g., several authors proposed a first order rate model, 1,15,16 whereas the others propagated a second order rate model: 2,17,18,194) the use of an unrealistic rigid value, such as the use of a maximum recovery of 100%, 5,8,19 which is unrealistic in industrial operations; and 5) the use of graphs that confuse the reader rather than interpret information. 2,3,10 This paper intends to introduce a simple and easy to understand empirical flotation kinetics model along with a way of presenting the model in an informative graphical form, which should stimulate the interest of other practical engineers to become concerned with practical application within the mineral industry.

Jan 1, 1982

By Howard H. Fields

Any mining engineer with a desire to operate independently, with some financial backing, and with no fear of heavy responsibility and long hours, should be able to make a comfortable living in Mexico. Barring a few inconveniences such as a lack of satisfactory liability or accident insurance, the difficulty of obtaining repair parts or vehicles, and the length of time required to receive returns from shipments, the operation of small mine is not at all difficult. It is, in fact, a little easier to find a good prospect in Mexico than in the U.S.

Jan 1, 1950

The dust exposure of the longwall shearer operator is usually determined by his position relative to the cutting drums. The dust generated during cutting may travel up-wind, against the primary airflow, and be carried out into the walkway where it can contaminate the intake air for as much as 10 feet outby the shearer operator's controls. Thus, both head and tail drum operators are exposed to un-acceptably high levels of air-borne respirable dust. One Solution The latest generation of long-wall shearers has features that make the use of radio remote or umbilical (hard wire) remote control relatively easy to implement. Remote control can enable shearer operators to control machines from positions that are less dusty than normal control stations. With either type, the head-drum operator can now control the shearer from a position up to 20 feet on the intake-air side of the shearer, while the tail-drum operator's station is now located across from the head drum.

Jan 1, 1984

By d&apos, I. J. Agati

The stockpiling and reclaiming of bulk materials can be a challenging task for engineers seeking the optimum solution for plant needs, reliability, and at lowest unit cost. The objective of this paper will be to expose advantages, disadvantages and limitations of many storage and reclaiming systems to the responsible engineer and management. The paper will emphasize the practical aspect of stockpiling and reclaiming methods. Many valuable and interesting papers are available dealing with the theoretical viewpoint and application of a particular manufacturer's machine. Several of these are mentioned in the bibliography. As many practical parameters as possible will be given. After twenty years in the field of designing and selling bulk materials handling systems, the needs of the user and the plant are recognized and reasonably understood. This paper cannot give solutions to all problems In this vast field but will stress practical applications and examples of various installations. The evolution of advancements in materials handling is based upon not only technological innovations, but learning from many experiences of others and utilizing them as stepping stones to improved installations.

Jan 1, 1969

By A. Ross Rornmel

ABILITY to speak effectively is one of man's most longed for and coveted abilities. It is the ability to stand on one's feet, transfer knowledge and thoughts to others, to reach an objective professionally or otherwise by leading groups through a channel of planned thought. Each day group speaking plays an important part in making or marring success, and the engineering profession often provides this opportunity and requirement. An ability to speak effectively develops courage, poise, confidence, and prestige for the speaker. The technical man cannot be reluctant to face an audience. He is often called upon to do this in presence of employees, supervisors, and other groups. His ability to speak effectively is as much a requirement as the fundamentals of his profession. The three fundamentals of effective speaking are: (1) Enthusiasm and Confidence. These are joined because of their close relation. (2) Preparation. This includes knowledge of the subject. (3) Presentation. By this is meant the features of delivery.

Jan 1, 1946

By Lysle E. Shaffer

TEACHING engineering students how to write and speak effectively -is one of the greatest problems facing the technical schools today. No phase of engineering education has received more criticism, and rightly so, for the criticism is justified. Year after year we continue to graduate men that are indifferent to the use of a tool they will need every day of their lives. Our young engineers cannot write a clear, concise report, and their business letters are a disgrace to the profession that takes pride in precision. The problem is not new. The remark ascribed to Sir James Barrie, that "The man of science appears to be the only man who has something to say, just now-and the only man who does not know how to say it" is as uncomfortably true today as it was thirty years ago. The records of meetings of engineering educators and the transactions of the engineering societies show that the inability of the engineer to communicate his ideas has been discussed for years. Engineering educators, prodded by industry, have recognized that the problem exists, but they have not solved it. Instead they continue to expose the student to composition and rhetoric, hustle him through English and American literature, and then blame his high school because he does not know enough English grammar to write a clear sentence. We must face the fact that the graduate is not going to reflect on the high school, but on his college. If the high school has shirked the job, the responsibility for correction rests on the faculty of the professional school.

Jan 1, 1948

By Leo F. Reinartz

It was with humility that I accepted the invitation of the Board of Directors of our Institute to deliver the Twentieth Howe Memorial Lecture. Many previous lecturers could speak from personal experience of the great work done by Professor Howe. It was not my privilege to be one of his students but, indirectly, I came under the influence of his work many years ago. My mentor in Metallurgy at Carnegie Institute of Technology, Prof. Fred Crab tree, was an ardent admirer of Professor Howe and his work. Professor Crabtree taught me early to appreciate Professor Howe's love of truth and keen desire to find a scientific reason for every metallurgical phenomenon. In this early search, Professor Howe encountered many unexplainable facts. Nevertheless, in the classic text, "The Metallurgy of Steel," published in 1891, he indicated that he believed Research could light the way. Under the heading of "The Treachery of Steel" he said: "In the early use of Bessemer and Open Hearth Steel, many then unexplained and hence mysterious failures occurred. With our present knowledge, an easy explanation of most of them would probably have been seen. But even today certain unexplained and apparently inexpli- cable failures occur in steel; inexplicable in spite of full and intelligent investigation." Then Professor Howe continued to talk about "the trustworthiness of steel" in the following manner: First, the steel-maker has learned by experience. He knows today far better the effects of a high percentage of carbon or of phosphorus; of cracks, pipes and blow-holes; of segregation and imperfect mixing; of over-heating; of finishing too hot or too cold. Knowing, he guards against them more effectually, and keeps at home much steel that he would formerly have sent into the market. Those who would not, or could not learn and do, have been driven out of the business; the conditions necessary for producing good sound steel by the acid Bessemer and the acid Open Hearth processes have been mastered. By and by, the basic process came along with new conditions, new liabilities to unsoundness, a great hue and cry about mysterious fractures followed, and Lloyd's register provisionally forbade the use of basic steel. Much basic steel was irregular and brittle throughout; too much carbon, too much phosphorus, too cold teemings—imperfect mixing. Still there was little doubt that, with further experience, these difficulties of the basic process would be mastered as those of the acid process had been. This shows that Professor Howe could not take anything for granted. Believing that careful research would find the answer to all mysterious phenomena, he was several generations ahead of the practical acceptance and adoption of this principle.

Jan 1, 1943

By Leo F. Reinartz

It was with humility that I accepted the invitation of the Board of Directors of our Institute to deliver the Twentieth Howe Memorial Lecture. Many previous lecturers could speak from personal experience of the great work done by Professor Howe. It was not my privilege to be one of his students but, indirectly, I came under the influence of his work many years ago. My mentor in Metallurgy at Carnegie Institute of Technology, Prof. Fred Crab tree, was an ardent admirer of Professor Howe and his work. Professor Crabtree taught me early to appreciate Professor Howe's love of truth and keen desire to find a scientific reason for every metallurgical phenomenon. In this early search, Professor Howe encountered many unexplainable facts. Nevertheless, in the classic text, "The Metallurgy of Steel," published in 1891, he indicated that he believed Research could light the way. Under the heading of "The Treachery of Steel" he said: "In the early use of Bessemer and Open Hearth Steel, many then unexplained and hence mysterious failures occurred. With our present knowledge, an easy explanation of most of them would probably have been seen. But even today certain unexplained and apparently inexpli- cable failures occur in steel; inexplicable in spite of full and intelligent investigation." Then Professor Howe continued to talk about "the trustworthiness of steel" in the following manner: First, the steel-maker has learned by experience. He knows today far better the effects of a high percentage of carbon or of phosphorus; of cracks, pipes and blow-holes; of segregation and imperfect mixing; of over-heating; of finishing too hot or too cold. Knowing, he guards against them more effectually, and keeps at home much steel that he would formerly have sent into the market. Those who would not, or could not learn and do, have been driven out of the business; the conditions necessary for producing good sound steel by the acid Bessemer and the acid Open Hearth processes have been mastered. By and by, the basic process came along with new conditions, new liabilities to unsoundness, a great hue and cry about mysterious fractures followed, and Lloyd's register provisionally forbade the use of basic steel. Much basic steel was irregular and brittle throughout; too much carbon, too much phosphorus, too cold teemings—imperfect mixing. Still there was little doubt that, with further experience, these difficulties of the basic process would be mastered as those of the acid process had been. This shows that Professor Howe could not take anything for granted. Believing that careful research would find the answer to all mysterious phenomena, he was several generations ahead of the practical acceptance and adoption of this principle.

Jan 1, 1943