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By John C. Calhoun, Frank T. Bethel

Glass beads have been surface treated with Dri-film to render them oil wet by n-octane to varying degrees, and capillary desaturation curves have been determined by the restored state method. The desaturation curves show a regularity of increasing displacement pressures as the oil wetness increases. This has been used to compute apparent contact angles between n-octane and water on glass. The family of desaturation curves also shows a regular crossover, such that the residual wetting liquid saturation values are in reverse order to the displacement pressures. A semi-logarithmic variation is shown between the apparent contact angle and the residual saturation. The desaturation data are interpreted to mean that the wetting liquid ceases to be a continuous phase within individual pores before the capillary pressure can be raised sufficiently to force out the wetting phase completely. The saturation of wetting liquid at which this break in liquid continuity occurs is higher as the oil wetness decreases. INTRODUCTION The petroleum industry has for some time been using measurements of capillary pressures on porous media for research correlations and engineering calculations. It has been generally recognized that the capillary desaturation curve reflects the character and arrangement of the pores within the media and the distribution of fluids within the pores. Methods have been proposed for computing pore size distributions, tortuosity factors. and relative permeabilities from capillary desaturation data.' There is little doubt that the interactions between porous rocks and their contained fluids resulting from surface forces play a dominant role in determining the magnitude and direction of capillary pressure measurements. There have been attempts to introduce as variables two quantities — inter-facial tension and contact angle — generally used to char- acterize surface forces, but in spile of the wide interest in these quantities as important variables, few definite conclusions have been drawn concerning their qualitative or quantitative significance. INTERFACIAL TENSION The interfacial tension appears in a capillary pressure function given by Leverett for correlating capillary desaturation type curves. Use of the interfacial tension in this function seems to be justified by other experiments reported. Apparently, interfacial tensions have little bearing on wetting phase residual by desaturation. CONTACT ANGLE The contact angle was utilized as a variable by Bartell and co-workers"." in tests on displacement pressures, later recognized as the initial point of capillary desaturation. Although Leverett did not include contact angle in his original formulation of the capillary pressure function, later workers suggested its addition. Few reports are available to show variation of residual liquid with contact angle as a result of capillary desaturation.' The problems attendant to measuring contact angle within a porous medium are great. As a consequence of the lack of a concrete approach to a measurement. the workers in this area of research have adopted the general expression of "wettability" to indicate the relative position of two liquids saturating a porous body. It has been shown that gross measurements on porous systems, including capillary desatura-tions, are sensitive to wettability. Attempts at giving a scale to wettability in terms of contact angle through capillary desaturation curves have been made and these apparently are steps in the right direction. In these attempts presence of many other variables precludes attainment of exactness. Also, as a result of other variables, it has been impossible to correlate changes in apparent contact angle with changes in other physical measurements of the systems in question. The present work is an attempt to eliminate as many variables as possible in measuring capillary desaturations resulting from changes in contact angle within a porous medium.

Jan 1, 1953

By G. A. Croes, N. Schwarz

This paper reports the results of a series of model displacement experiments carried out for measuring the efficiency of the water-drive process. This series forms a continuation and extension of that described by Engel-herts and Klinkenberg. Detailed information has been obtained on the influence of the oil/water viscosity ratio. The results are represented in the form of a diagram from which both the oil recovery and the water/oil ratio can be easily read off as a function of the total production (oil plus water) for all values of the viscosity ratio M between I and 500. These resu1ts are viewed in the light of the two existing theories on water flooding, viz. that of Buckley and Leverett and that of Dietz. It is shown that if the Buckley-Leverett theory applies, the relation between the relative permeability ratio and saturation, which plays a major role in this theory, (.an be calculated with a high degree of accuracy from the results of the model experiments. Dietz's theory is found to be in agreement with the experimental results in a certain range of circumstances. A discussion of the physical background of the Buckley- Leverett and Dietz theories makes it clear why the latter fails to agree with some of the experimental results. INTRODUCTION For an economical exploitation of oil fields both a rational control of natural (primary) recovery processes and a proper application of artificial (secondary) recovery methods are essential. These require detailed information upon the dependence of the relevant flow processes on the variables by which they are governed. Three methods are available for obtaining this information: (1) (statistical) analysis of actual field data; (2) appropriately scaled model experiments; and (3) mathematical analysis of the physical problem. If sufficient data were available, the first method would, in principle, be the most reliable one, although it has the drawback that the basic relationships between the variables involved are to a large extent obscured by the natural inhomogeneities of most reservoirs. The most profitable procedure seems to be: (a) determining the fundamental relations for idealized reservoirs by methods (2) and (3); (b) checking the consistency of the results obtained by these two methods; and (c) establishing the range of applicability of these methods to actual reservoirs by comparison with the data accumulated under (1). In this paper items (a) and (b) are dealt with for the case of homogeneous loose sands initially saturated

Jan 1, 1956

By K. Burke, G. Zhan, A. Mayer

A cover with capillary barrier effects (CCBE) is being constructed on the AA Leach Pad at the Barrick Goldstrike Mine site near Carlin, Nevada. The purpose of the cover is to eliminate/minimize infiltration of meteoric waters into the leach pad. Laboratory and numerical analyses indicate that Carlin Formation siltstone (TCS), a locally available material, has the necessary hydrologic characteristics when placed on the leach pad to act as a CCBE. A pilot study has been conducted on a small-scale test cover placed on the AA Leach Pad to examine the cover performance under irrigated conditions. The preliminary test results demonstrate that the designed cover is capable of preventing meteoric water infiltration.

Jan 1, 2001

By Frederick G. Tickell

Petroleum engineers are displaying considerable interest in those fundamental properties of matter and energy that control the phenomena of oil and gas production. The subject is a difficult one to investigate by laboratory experiments for two reasons: (1) it is impossible to reproduce in the laboratory the scale of forces and dimensions that exist in the underground reservoir; (2) if we attempt to scale down the dimensions we are unable to reduce all proportionally. It is as if we tried to construct a model blast furnace for the reduction of iron ore, and reduced all lineal dimensions. We should find that the interstices between the miniature chunks of ore would not permit rapid transfer of gases, that combustion and heat transfer would not take place as in the full size furnace and that, in short, the contraption would not work. Just so, when we attempt to make a reduced scale oil field we find we must have, not only miniature reservoir and miniature wells, but "miniature" sand, 011, gas, etc. Much valuable work, however, has been done along these experimental lines and more will no doubt follow, but investigators should bear this point in mind and strive to attain dimensional homogeneity and dynamical similarity in order that their conclusions may be translated into terms applying to the oil reservoir. As Gibson says,' "These conditions are attained when all terms of the physical equation have the same dimensions, . . . when all corresponding particles of the two systems trace out similar paths and when the velocities are such as to make all corresponding forces acting on two such particles in the same ratio." It is the purpose of this paper to discuss the mechanics of fluid movement as it pertains to the oil pool and to point out the complexity of the laws of fluid delivery under the conditions often found. We have to do, fundamentally, with confined fluids, possessing potential energy whose expenditure is restricted by certain properties of the confining media and of the fluids themselves. The equation of motion and time is completely stated when we can assign values to the propulsive

Jan 1, 1929

By John K. Hammes

This paper has been written as one of a group of papers dealing with the subject "Cost Elements in Mining". What are cost elements in mining? The mine operator thinks of direct mining costs in terms of labor, materials, supplies and power, and we might define cost more generally as the price paid to acquire or produce something. Economic theory also has its concepts of cost. From one point of view, that of the consumer, the cost of mineral commodities might be viewed as the total price industry pays for mine output. Similarly, the mining company engaged in the on-going business of finding, developing and operating new mines is concerned very much today with the distribution of all the revenue paid for mine output and not just with its direct or controllable cash costs. In other words, what will the labor force, the supplier of energy, explosives, and reagents, and the supplier of government services, management, capital and the ore reserves receive for their contribution to production.

Jan 1, 1974

By Leo Wolrnan

IN the relations that exist between capital and labor in this country, there is a bright as well as a dark side. After many years of distressing conditions of labor and a plentiful supply of propaganda, it is doubtful that the doctrine of the class struggle, however defined and stated, has been embraced by any influential and numerous elements of our population. Extreme and uncivilized methods of conflict, whether they be the labor spy as used by the employer or the sit-down strike by organized, labor, have come to be abandoned as the result of the pressure of sober and distinterested public opinion. Unwise terms of our law of trade unions and the unbridled zeal of its administrators show some slight signs of being revised in the light of 'experience and the protests of the law's own beneficiaries. At the point where labor policy touches economic conditions, the two powerful factions in the American labor movement appear to look with a less friendly eye on the bewildering succession of economic experiments and to have a deep nostalgia for a simpler and more prosperous economy.

Jan 1, 1938

Background information, formulae and a systematic set of procedures for estimating capital and operating costs for open pit mining equipment are presented in this paper. Firstly, equipment capital costs are required. These can be obtained from either suppliers, contractors or from first principles. The equipment is then divided into cost elements. Typically these are fuel and power requirements, spare parts consumption, wear items such as tyres, teeth and drill bits and finally repair and operating labour requirements. By consideration of the cost and life of each element a base cost can be derived. The base cost is then adjusted to suit specific site conditions such as the proximity to spare parts suppliers, the duty or ground conditions and the management and operator skills specific to the site. Hence, the same item of equipment can be costed to reflect different operations. Included are tables and data for typical plant items. Several examples are also given to illustrate the methodology being presented. The intention is to provide a set of procedures to allow costs to be built up from base level in a systematic and repeatable way. Applications for these costs include feasibility studies, budgetting and data for economic analyses.

Jan 1, 1990

The United States Bureau of Mines is establishing a computerized mineral inventory system to help the Federal Government appraise its mineral position and prepare programs insuring against critical shortages of materials. This system, called the Minerals Availability System (MAS), is a component of the Bureau's minerals intelligence function designed to conduct and maintain an inventory of minerals important to the Nation. The MAS defines the physical and commercial availability of the mineral resources. Known resources are evaluated and classified by deposit for entry into a computer storage and retrieval system. An integral concern of these evaluations is the cost of mining and beneficiating the ore contained in specific deposits. To meet this concern, a cost handbook was developed as an aid to preparing feasibility-type estimates for capital and operating costs of mining and primary beneficiation of various types of mineral occurrences. Cost data, obtained from U.S. and Canadian companies, were used as the basis of this handbook. The handbook presents cost curves and equations for each component of the mining and beneficiation process. Factors for each cost component are also given, thereby allowing the updating of cost for time, geographic location, labor rates, and mining and milling conditions. Included in the latter conditions are items such as the length of haul, need for rock bolts, and a rock work index for ores and rocks of various hardnesses. 1.2. USE OF THE HANDBOOK Using the handbook a feasibility-type estimate falling within 25% of expected actual cost is obtainable by summarizing cost components. This handbook should not be used to determine the cost of any single component of a mining or beneficiation system, as any single component may not fall within the 257 limit. It must be understood that anyone who uses the handbook must have a comprehensive knowledge of mining and processing technology and cost estimating procedures. The handbook was intended to be used internally by the Minerals Availability System. Because

Jan 1, 2012

By Dr. O’Neil Thomas J., Donald W. Gentry

The greatest of all gifts is the power to estimate things at their true worth. LaRockefoucauld INTRODUCTION The primary reason for performing a feasibility study on a proposed mining venture is to investigate all phases of the proposal in as much detail as necessary to justify either dropping the project or continuing expenditures through the next stage. The economic evaluation component of the feasibility study, therefore, must ultimately be based on information which provides an answer to the question, "What is it going to cost?" Unfortunately engineers preparing feasibility studies never have all the engineering or economic information they would like or need. Consequently, the economic portion of the analysis can only be performed if estimates of the various costs associated with the project are made. Project cost estimates, in turn, require estimates of all the physical factors affecting cost components, including anticipated performance of plant and equipment as well as all pertinent geologic, mineralogic, and metallurgical variables. Before useful cost estimating procedures can be applied considerable data must be collected, compiled, and organized. Preparatory work typically includes organization of cost data available for estimating purposes, development of techniques for updating historical costs, and establishing methods of forecasting prices and costs over the duration of the project. Cost estimates for mining and mineral processing projects involve so many features and variables that it is absolutely essential to have some means by which the vast amount of detail can be organized. It is very important to identify, in as much detail as possible, all the cost data available (historical and developed) to the estimator. These costs, after being properly identified in detail, should be com- piled, stored, updated regularly, and made readily available for use in developing new cost estimates Accessing files of current cost information requires a standardized numerical system of classifying cost data. When uniform definitions and procedures are used, every project record contributes to the common store of estimating data.

Jan 1, 1984

By G. A. Kordosky

Solution mining followed by solvent extraction-electrowinning (SX-EW) is one possible way to economically extract copper from ore bodies which cannot otherwise be profitably exploited. Published costs for the unit processes of SX and EW are out of date especially in view of the newer reagents now available and the newer circuit configurations, This paper updates the costs for SX-EW in 1985 dollars and also discusses some of the trade-offs which must be made when designing an SX-W plant.

Jan 1, 1986

By S. J. Cook

The subject of capital and the Canadian mining industry is so broad as to be impossible of comprehensive treatment in brief form. The purpose of the present paper therefore will be only to outline in a meagre and somewhat sketchy way the nature and extent of the mineral industry in Canada and to point out those features which are likely to be of general public interest. Canada's mineral industry has a long and creditable production record. The? value of the output per capita rose from $2.23 in 1886 to a maximum of $26.40 in 1920 and the value of the products from ten million dollars in the former year to almost two hundred and twenty-eight million dollars in 1920. Compared with other primary industries and on the basis of the value of production, mining held third place in Canada in 1920, the premier position going to agriculture and the value of forestry production placing that industry second in the list. In the mineral industry, between six and seven thousand properties are operated annually giving employment to up- wards of sixty thousand employees to whom about seventy-five million dollars is paid in salaries and wages. During 1923, seventeen mineral products reached a production value of one million dollars or over in Canada and in order of the values assigned these were: coal, gold, nickel, cement, cop-per, silver, clay products, lead, asbestos, natural gas, stone, zinc, lime, cobalt, sand and gravel, gypsum and salt.

Jan 1, 1924

By Daniel K. Dysinger

Capital resource budgeting is the way managers of publicly held companies fulfill their fiduciary responsibility to maximize the wealth of stockholders. Managers maximize shareholder wealth by allocating investment capital to the most productive of competing alternative projects. Managers do this in a manner that maximizes the net present value of the firm's future cash flow. The techniques of cash flow analysis are the primary tools available for selecting a corporate portfolio of projects that meets or exceeds the rate of return expected by shareholders. The reliability of cash flow analysis hinges on the ability of managers to forecast the future values of individual components of cash flow. The accuracy and reliabil¬ity of forecasting determine the soundness of capital investment decisions and, ultimately, determine the value of the firm.

Jan 1, 1997

By R. J. Balfour, T. L. Papucciyan

"INTRODUCTIONCapital Cost considerations are basic to feasibility in the achievement of success for Mineral Processing Projects as much as or more than in many other industries. Capital cost is an important factor ae it 1R the unit of measurement for process engineering economic decisions. As a result of ever increasing complexity, alternatives of process and remoteness of site, there is an ever increasing emphasis on accurate estimating and the attendant cost control systems in the international market of today for the Mineral Industry where initial plant costs are becoming a more important factor than operating costs. An undervaluation means trouble ahead. An over-cautious assessment may bring an unnecessary abandonment of a project. Consequently, the ultimate cost must be predicted early and accurately and must be controlled to this parameter during the design and construction phases. Cost Est!~ mating is one of a variety of project management tools used to assist in planning and achieving the optimum balance between Quality, Cost and Time, the eternal triangle of evaluation, namely obtaining a project of acceptable quality at minimum cost and on time. In order to attain these established objectives, proper planning, organizing, coordinating, monitoring, adjusting and controlling the design, procurement and construction elements of the project are essential.This project management approach based upon the principle of a Task Force under single management, comprising a complete service organization, requires a substantial number of qualified individuals specialized in their own field and capable of working together as a team to perform their various functions effectively. The Task Force is supported by their chiefs of discipline and performs in accordance with established procedures and standards under the leadership of a Project Manager.General Engineering Company Limited with the backing of the full resources of Surveyer, Nenniger & Chenevert and its total staff of approximately 1,0009 offers the complete project management service to the Mineral Processing Industry of North America and the rest of the world. As mine sites become more remote and difficult of access, the need for an experienced team of specialists who work under the Task Force principle, with well established standards and procedures becomes even more important. Our long history of successful pro1ecta in this field has been our training ground for the fulfillment of this need."

Jan 1, 1972

By Frederick G. Coqueron, Joseph E. Pogue

FOR a number of years, the Department of Petroleum Economics of The Chase National Bank has been conducting a study of the capital employed in the petroleum industry. The technique followed is that of combining and summarizing the available financial and operating data for a group of thirty representative oil companies, doing about two thirds of the domestic business of the entire industry. This paper presents the results of the findings for the year 1943, and supplements the survey, "Sources, Disposition, and Characteristics of the Capital Employed by Thirty Oil Companies During the Nine-Year Period, 1934-1942," presented before the Petroleum Division of the American Institute of Mining and Metallurgical Engineers on Feb. 24, 1944, and also published as a pamphlet by The Chase National Bank.

Jan 1, 1944

By L Blackwell

Strategic mine scheduling is an industry best practice for increasing the long-term value of mining operations and supply chains. The application of optimisation technology such as mixed integer linear programming (MILP) is able to achieve a mathematically optimal result for a given scheduling model. Such a model will typically define the available source material, processing options and desired constraints for accessing and processing the material. Most strategic scheduling models, however, do not include a sufficiently detailed model of capital expenditure options related to capacity expansion.Typical strategic schedule models do not include important capital expenditure features such as capacity decay or expiration (limited lifespan of trucks), precedence relationships over time (rail construction before a new plant or non-linear expansions due to economies of scale) or mutually exclusive option sets (choices of plant size). By not including these features, a strategic mine scheduling model for a capital-sensitive operation is unable to be optimised to deliver maximum value or profitability.This paper presents several results of MILP optimisation using advanced capital expenditure modelling for mining operations and supply chains. Results of the study demonstrate that optimising capital expenditure at the same time as optimising the mining schedule allows for minimisation of capital purchasing, optimal timing for those purchases and optimal scheduling around them. Overall, this results in an increase in net present value.CITATION:Blackwell, L, 2014. Capital expenditure modelling for strategic mine scheduling, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014 , pp 315–322 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014

This paper is directed at the problems flowing from Australia's capital gains tax (CGT) on the disposal of exploration and mining tenements both in Australia and overseas. It will seek to identify the issues and give some idea of the dollar consequences of decisions lacking forethought. The paper should not only be seen in the context of Australian tenements. CGT applies to the disposal of any assets by an Australian resident anywhere in the world. Offshore incorporated companies are not necessarily free from CGT risk where it can be shown that control management and control of the relevant company is in Australia. Also the disposal by non residents of Australian tenements are potentially caught by CGT. Some will ask what has taxation got to do with a valuer who merely determines the value of assets. These days no determination can be blind to the consequences. Whether the consequences can encourage a movement in value is another thing dependent upon the circumstances; but? A role of an experienced taxation consultant is to point out parameters within which associated professionals can work. The parameters will vary from case to case, but these when clearly indicated may be of help to persons such as valuers. When one comes down to it real estate salesmen are never wrong. They have a feel for the market and almost through self fulfilling prophesies achieve sales at their guestimates. Whether they could have achieved higher considerations become virtually academic in the process. Of course I am not suggesting that tenement valuers can be compared to real estate salesmen, or am I? What is the value of a tenement? Is it the DCF/NPV type of generated value based on a large number of variable factors (ie what one may call the fundamental value)? Or is it what another may pay to purchase that tenement if it were on the market at an instant point in time? How big is the market, the quality of the bidders, the size of their purses, the needs of the buyer for comfortable fit, the premiums for foreigners, the standard of the marketing, the industry intelligence level of the bidders, the obligation to farm/sell down? The list goes on endlessly. One question must be.asked-"Is a range of values acceptable for tax purposes". ie Would any tax consultant ever provide a valuation to the Australian Taxation Office that indicates three or more possible values ie

Jan 1, 1987

By Sergio G. Jarpa

A mining project is, at one and the same time, capital intensive and highly risky. Besides, because of its usual long projected life, the operating cost is more difficult to predict and offtentimes exceed, during the life of the project, the first investment manifold. The objective of this study was to evaluate the applicability of cost-capacity relationships as used in the chemical industry to mining operations and, when necessary, to develop new ones. With the aid of a computer library program available at the Computation Center of the Pennsylvania State University, the total investment in mining equipment was determined to vary exponentially with production capacity, and the scaling exponents for each class of equipment, i.e., drills, shovels, trucks and earth moving equipment, as well as for the total operation were calculated. Since the scaling exponent for the whole mining operation happened to be equal to 0.94, it was concluded that more significant economies of scale are achievable in processing plants than in mining operations. From the operating cost point of view, unit material cost was found to decrease more rapidly than unit labor for the same increases in production capacity. The analysis of cost centers revealed that drilling and blasting, which are materials-intensive operational stages, were the most favorable in achieving significant economies of scale. Hauling unit cost, on the other hand, decreased only slightly when production capacity increased.

Jan 1, 1977

By Joseph E. Pogue

FOR a number of years the petroleum department of The Chase National Bank has been making a continuing study of the financial aspects of thirty oil companies. (See Pogue and Coqueron, "Financial Analysis of Thirty Oil Companies," pamphlet, The Chase National Bank, November 1945, for data covering eleven years, 1934-1944, and the list of the companies making up the group. See also "Capital Employed in the Petroleum Industry," by the same authors, M&M, November 1944.1 This group represents a large sample of theAmerican petroleum industry, covering about two thirds of the business. Certain aspects of this study concern the capital employed in crude oil production, the main features of which arc presented in this paper.

Jan 1, 1946

By G. S. Barry

INVESTIGATIONS to date have shown that, should there be the need or the appropriate economic stimulus, Canada's mineral resources are sufficiently extensive to allow considerable expansion of its non-fuel mineral industry, during the remaining part of this century and possibly beyond (1, 2). The availability of sufficient capital will be one of the critical factors which will determine whether this potential will be fulfilled. The following analysis centers on the capital requirements of the Canadian non-fuel mineral industry under one set of basic assumptions of capacity growth, cost of new and replacement capacity, rates of depletion and depreciation of mines and plant, and the cost of exploration and infrastructure. Mindful of the fact that exploration and development will not thrive in Canada unless a very positive approach is taken, the writers make no apologies for being "optimistic" about long-term production prospects. Furthermore, in the event that world demand does escalate as anticipated and the forecast realistically attainable levels of Canadian production are not reached, then Canada will not have reaped the full range of economic benefits available, and opportunities will have been lost. Projections for Canadian production between 1976 and 2000 are essentially based on the forecast published in the 1974 paper, "Towards a Mineral Policy for Canada - Opportunities for Choice (3), with some updating on the basis of recent developments.

Jan 1, 1977

By William P. Blacutt

This paper describes the strategy, the struggles, and the obstacles encountered during the last two years in the ongoing process to capitalize Vinto. The effort involves the offering of a vertically integrated business package composed of the tin and antimony smelters along with the two principal tin mines of the country. Capitalization: Bolivia's Innovative Approach for Privatization, the Vinto Case provides a summary of hard-earned lessons. These experiences can be success- fully implemented in other nations committed to transforming their state natural resource sector.

Jan 1, 1998