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By Keith Spence

"The notion of ""value"" has always been a subjective and contentious issue. Indeed, Value is in the eye of the beholder. There are varied methods and practices for valuing property, as there are industries in which they are applied. For example, there are ""replacement value"", ""insurance value, ""salvage value"", ""appraised value"", ""book value"" and ""fair market value"", to name a few, although in the mining industry, valuations usually refer to fair market value.In the Canadian mining industry, at present, there are no comprehensive regulations or guidelines that specify which approaches or methods are appropriate for use in the valuation of mineral projects. In January 1999, The Mining Standards Task Force of the Toronto Stock Exchange and the Ontario Securities Commission recommended that the Canadian Institute of Mining, Metallurgy and Petroleum establish a committee to review and advise on approaches and methodologies for the valuation of mineral properties. Among the approaches to be considered, are included the following: the Discounted Cash Flow Approach, the Cost Approach, the Option Pricing Approach and Market Comparables Approach. In addition, methodologies differ depending on whether the project is at the exploration stage or the producing stage.The CIMVal committee expects that its final report will form the basis for a standard Canadian Code for the valuation of mineral properties."

Jan 1, 2003

By P. N. Mohan Das, K. Harikrishna Bhat

"The major ilmenite reserves are located in India at Chavara (CH), Manavalakurichi ( MK) and Chatrapur, Orissa (OR). India stands first in terms of ilmenite reserves, which are estimated to be 278 million tonnes out of which, 142 million tonnes are processable. Mineralo-chemical analysis shows that Chavara ilmenite is the most weathered one with about 60% TiO2 while Chatrapur is the least weathered with about 50% TiO2. Co-existence of ilmenite with pseudorutile, rutile and haematite is observed in substantially varying amounts in the three deposits. It is observed that the tropical weathering rather than the source rock difference has apparently played an important role in imparting major compositional and structural dissimilarities among ilmenites in different places.In processing of ilmenite through the Becher process, aeration rusting of pre-reduced ilmenite is found to be the rate limiting step thus, affecting the productivity of the process. Investigations have proved that the addition of some organic compounds such as glyoxal, sucrose etc., to the system accelerates the reaction to such an extent that the rusting time has been reduced to less than half.A new route of processing ilmenite for synthetic rutile has also been developed in which, ilmenite is carbothermally reduced and then processed through plasma route. The slag thus obtained is processed further to get high-grade synthetic rutile, metallic iron and high purity iron oxide. The process has been scaled up in a continuous moving bed plasma reactor. It is technologically and economically more viable where, all the iron values are recovered as salable byproducts. This paper describes the salient features of the technologies developed for the beneficiation of ilmenite to synthetic rutile."

Jan 1, 2003

By Vladimir G. Kochnev

An innovative AG and SAG technology aimed to be applied in grinding of ores and in the production of construction materials is described. A novel design of a cantilever-type mill capable to operate in autogenous, semi-autogenous and ball grinding mode ensures easy delivery and installation even in remote areas, and low capital and operating costs. Results of the tests of the new heel-shaped liners performed by TTD jointly with ALROSA, MINTEK and Anglo-American Corporation are reported. The approach includes also a novel discharge grid design and a technique of treating the material of critical size. These innovations make grinding in AG and SAG mills dramatically more effective, with an increase in the throughput rate and a reduction in power consumption ranging from 1.5 to 2 times.

Jan 1, 2003

By Benoit Clermont, Jan Lux

"Magotteaux and Anglo Platinum started a co-operation program with the main aim of establishing the optimum milling configuration measured in terms of throughput, fineness and energy consumption.For this purpose, a fully instrumented pilot milling plant, supplied by Magotteaux (Pty) Ltd, and equipped with a 0.9 x 1.0 m ball mill, was erected at Frank concentrator (Merensky Pt ore). The primary ball mills at Frank concentrator were surveyed in order to set the conditions for the base case. This data was then replicated in the pilot mill under the same configuration. Thereafter, a series of different parameters were varied in order to attempt to optimize the milling system.Some of the grinding parameters that have been studied are:•,Gate versus overflow discharge•,Open versus closed circuit•,Different filling degrees•,Different shell liner profilesOnly grate versus overflow discharge and open versus closed circuit will be discussed in this paper.It should be noted that this paper does not attempt to give a universal solution as to what milling configuration is optimum in all cases. The conclusions apply for this particular case and probably most others, but it would be advisable to consider each case on its own."

Jan 1, 2003

By Karl J. C. Harries

Mineral Agreements and Royalties

Jan 1, 2003

By C. L. Wilsey, K. M. Oakes, W. J. Reich, M. J. Protani

The time frame required to complete the National Environmental Policy Act (NEPA) process for a new mine or the expansion of an existing mine can range from nine to 24 months, or even longer. The time frame will vary depending on whether an environmental assessment (EA) or an environmental impact statement (EIS) will be completed Completing properly designed baseline studies to collect natural resource data to support the EA or EIS prior to the start of the NEPA process can shorten this time frame. In this paper, a two-year natural resource baseline study by Homestake Mining for the Ruby Hill Mine, Eureka County, NV, is used as a case study to describe how a properly designed and executed natural resource baseline study streamlined the NEPA process.

Jan 1, 2003

By S Hayton

While coal seam gas is considered to be an unconventional gas, the proliferation of areas under exploration and development mean that it is rapidly becoming main stream. The potential of New Zealand's coals to produce coal seam gas has been recognised for some time. However, key market drivers have not been suitable for the progression of this potential into reality. Kenham Holdings Ltd and CRL Energy Ltd, recognising the potential for the gas in New Zealand have initiated what is the largest ever assessment of New Zealand's coal seam gas potential. The premature demise of the giant Maui field has raised the focus of new gas developments and has increased interest in what we are doing. Over the past couple of years Kenham Holdings Ltd and CRL Energy Ltd have approached the assessment of the coal seam gas potential in a staged programme. Preliminary assessment of the data on the permit areas indicates that the potential resource may be up to 500 PJ. To date, preliminary appraisals have been completed or are underway on a significant number of fields. Exploratory drilling has been completed or initiated on several of those fields, with results from this work being fed into the preliminary modelling as it has become available. Given that in many of these areas there is no pre-existing information concerning their gas potential and world wide experience with lignite is practically nonexistent, it has been a steep learning curve with many surprises. However, initial gas content results and preliminary gas flow models have been on the whole, rather pleasing, with the commerciality of some developments already apparent.

Jan 1, 2003

By M. Giralico

Optimized mixer settler designs will now handle flows of over 25,000 GPM. The size and expense of the equipment hamper experimental settler optimization efforts. Computational Fluid Dynamics (CFD) is a timely and predictable tool for settler design development. In the past, CFD has been used to evaluate only the flow field in pumped and auxiliary tanks. A similar numerical analysis is used to evaluate settler flow and phase separation. Phase separation is analyzed using multiple species for the aqueous and organic phase. Experimental validation shows good agreement between the computational and experimental solutions in both flow field and phase separation. The computational model is used to show performance differences between various choices of settler geometry, liquid depth, with variable flow rates. Understanding the differences allows the development of optimized settler designs. System improvements are predicted to lower entrainment levels further and/or allow new smaller footprint designs. This paper focuses on the major design components of the settler and how future technological advances will lead to further improvements in their design. LIGHTNIN?s new designs will handle tomorrow?s production requirements, while maximizing profits.

Jan 1, 2003

By T A. Short, P L. Brown

Kestrel Mine co-disposes around 1.5 Mt of fine (2SO4/t and to date around 9 Mt has been deposited. The mine plans to co-dispose of approximately 39 Mt of material, creating a dump with a maximum height of 35 m and a disturbance footprint of 260 ha. Benign materials suitable for rehabilitation are severely limited and no successful rehabilitation strategy has yet been demonstrated. A rigorous measurement and modelling program is resolving outstanding issues associated with acid rock drainage (ARD). The objective of the program is to develop and validate a strategy for dump rehabilitation that will control ARD and allow for mine closure. The strategy includes using a soil cover to reduce water flux into the dump to control the overall oxidation rate and to control effluent release. Monitoring of the oxygen distribution and water flux in the uncovered material commenced in February 2001 and monitoring in waste under a trial cover commenced in February 2002. Carbonaceous and sulfidic oxidation rates have been measured. Initial modelling indicates that the carbonaceous material has the general effect of slowing the rate of pyrite oxidation, lowering the maximum sulfate production rate and extending the time to oxidise all the sulfides. The combined approach of measurement and modelling provides a sound basis for assessing the performance of the trial cover and predicting the long-term quality and quantity of effluent at the base of the rehabilitated waste dump.

Jan 1, 2003

By N Eriksson

BolidenÆs Aitik mine, located 100 km north of the Arctic Circle in northern Sweden, is one of EuropeÆs largest copper mines. This operation produces 18 Mt of ore per year and 99 per cent of this tonnage needs to be deposited as tailings. The tailings pond currently covers 1140 ha but at closure it will hold around 760 Mt of tailings and occupy an area of 1400 ha. The tailings contain less than one per cent sulfur and only 0.03 per cent copper. The carbonate content is as low as 0.25 per cent but silicates, with substantial accumulated buffering and metal adsorption capacity, are abundant. A programme of comprehensive material characterisation and investigations has been undertaken in order to design a decommissioning strategy that meets the regulatory requirements and secures long-term physical and chemical stability of the deposited tailings. The main concern has been the potential generation of acid rock drainage (ARD). Standard tests using acid base accounting (ABA) and humidity cell tests during 15 weeks were not conclusive regarding the ARD generation potential. The accuracy of the results was considered to be unsatisfactory, therefore the humidity cell tests were gradually extended in time. In total, almost four years of humidity cell tests were conducted on various sets of samples which were selected in order to cover the variation in sulfide content existing on site and in various points of the milling process. The laboratory results were subject to detailed geochemical evaluation in order to fully understand the interaction between acid-producing reactions, driven by weathering of sulfides, and acid-consuming reactions by dissolution of carbonates and alumino-silicates. The laboratory tests were followed by both pilot tests and field measurements in order to estimate the scale dependency between the laboratory and the field results. It was found that sulfide weathering rates in the field were considerably lower than those measured in the laboratory. However, it could not be verified that the tailings top layer would maintain a neutral pH in the long term even under field conditions. Thus, a reviewed tailings management plan, including de-pyritisation of the tailings during the last years of operation, is considered.

Jan 1, 2003

By Yong Hack Lee

Nonferrous smelting processes have been through a rapid transformation since the beginning of 1980. The copper smelting technology has changed from the conventional Blast Furnace process to the Flash Smelting and MIB process. In the field of lead smelting, the technology has changed from the Blast Furnace Smelting to the Direct Smelting such as QSL and KIVCET. In 1992, Onsan Refinery successfully commissioned Direct Smelting QSL technology for lead. The QSL could produce more than 160,000 ton per year of lead bullion from lead concentrate and various residues. Moreover, since the year 2000, the TSL (Top Submerged Lance) Technology utilizing the same Direct Smelting process has been successfully commissioned to treat lead concentrate as well as lead sulfate residue produced from a hydrometallurgical zinc plant. This paper presents and compares the energy flows of lead smelting processes such as a conventional process and the Direct Smelting Processes plotted on the Pb-O-S phase diagram. The oxygen potential diagram suggests how to control the oxygen potential in the fum ace. Also, it describes the recent operational experience in the TSL plant of Onsan Refinery with necessary mass balance of key elements.

Jan 1, 2003

By L. A. Ruth

Introduction The US Department of Energy's Office of Fossil Energy has begun a new approach for developing the ultra-clean energy plants. This approach will allow the nation to continue to use low-cost fossil fuel feedstocks during the early decades of the 21st century. The new approach is called Vision 21. The overall goal is to effectively eliminate, at competitive costs, environmental concerns associated with the use of fossil fuels for producing electricity and transportation fuels. Vision 21 is based on the following three premises: •The nation will need to rely on fossil fuels for a major share of our energy needs well into the 21st century. •It makes good sense to rely on a diverse mix of energy resources, including coal, gas,

Jan 1, 2003

By M. E. Kuchta

LKAB's Kiruna mine, located above the Arctic Circle in northern Sweden, is one of the world's largest underground mines, and it is one of the most modern. The Kiruna orebody is a high-grade magnetite containing about 80% low-phosphorous iron ore and about 20% high-phosphorous iron ore in situ. The mining method used is large-scale sublevel caving. Due to the blending of high-phosphorous ore with low-phosphorous ore during the extraction process, only about 20% of the run-of-mine ore can be used for the mine's low-phosphorous product. The blending process is highly irregular and difficult for the mine-planning personnel to predict. An algorithm was developed that uses principles of gravity flow to predict the run-of-mine phosphorous grades from the in situ geologic block model. The model can be used for both long- and short-term predictions.

Jan 1, 2003

By W. Blake, J. Whyatt

Sixty years of rock bursting in the Coeur d'Alene district has taught painful lessons and led to a number of practical advances in controlling rock-burst hazards. This paper summarizes these lessons, concentrating on practical measures that have been successfully adopted to reduce hazards. These lessons are explained in the context of district mining history and current understanding of rock-burst phenomena. Overall, the paper provides the practicing mine engineer with an appreciation of rock-burst hazards and an overview of practical measures that can be used to control these hazards in the context of Coeur d'Alene district experience.

Jan 1, 2003

By Georgene Renner, William R. Yernberg, Steve Kral

Advanced Terra Testing (ATT)is a full-service geotechnical testing laboratory. It specializes in rock and soil mechanics and geosynthetic materials testing. ATT provides services to the global mining industry. The company has performed more than 1,000 projects for more than 300 commercial and government clients. Services include coal pillar design testing, leach pad material and performance testing, tailings pile consolidation testing and closure and remediation services. Rock and soil mechanics tests include unconfined and triaxial strength, shear and tensile strength, permeability, index testing, consolidation, liquifaction potential, elastic moduli determinations, heap height versus percolation rate, long-term batch testing and dynamic loading tests.

Jan 1, 2003

The nature of metallurgical engineering?applying and optimising chemical and physical processing of ores into useful materials?is reviewed. Important trends that shape the context in which metallurgical engineers practise are identified ? increased global production of primary metals, declining prices, environmental constraints, and increased property requirements of materials. A successful department of metallurgical engineering is one which employs a team of academic leaders to develop graduate engineers who are productive across the full range of metallurgical processing. Keywords: metallurgical engineering, primary metals, commodity prices, processing

Jan 1, 2003

By M. Kuchta

A linear integer programming (MIP) model to solve the long-and short-term production-scheduling problem for sublevel caving operations is presented. The MIP model is designed as a multi-time-period problem to provide monthly schedules that meet production, blending and sequencing requirements. One of the most important issues during the development of the MIP model was the requirement of sequencing between blocks. In this mathematical model, unique constraints that ensure sequencing of the production from sublevels are developed. A suggested method of handling a large number of variables is also given. The MIP scheduling model was implemented on a data set obtained from the Kiruna Iron Ore Mine located in northern Sweden. The initial MIP model implementation was successful and provided a solution that optimized resource recovery while meeting monthly and yearly production constraints. The scheduling results obtained based on the Kiruna Mine are further presented and discussed.

Jan 1, 2003

By W. Hustrulid

"In recognition of his inspiring dedication to the mining industry through education, research contributions and dissemination of practical knowledge, exceptional leadership and excellence in mining engineering practice and for his lecture, “You can't make a silk purse out of a sow's ear.” Recipient of the 2002 D.C. Jackling Award Introduction It is always difficult to decide on the most appropriate title to give to a paper or talk. It is a particularly difficult decision in the case of the Jackling Lecture, because the title becomes part of the award citation. I hope that the significance of this unusual title will become crystal clear as you read the pages that follow. However, to assist you in this journey, I will provide the following few words of guidance. In making a cake, you need the proper ingredients. If one or more of them are missing, it will not be a cake. In addition, the quality of the cake depends on the quality of the ingredients. In my lecture, the "cake" is the U.S. mining industry of the future. A national perspective President George W. Bush in his State of the Union Address (Bush, 2002) delivered on January 29, 2002, defined three national objectives: •win the war on terrorism, •protect the homeland and •revitalize the economy. Under the heading "revitalize the economy," he indicated the importance of "good jobs" and "energy production" by saying: "Good jobs begin with good schools. Good jobs also depend on reliable and affordable energy. This Congress must act to encourage conservation, promote technology, build infrastructure and it must act to increase energy production at home so America is less dependent on foreign oil." I wish that he would have broadened his focus and stated instead that: "This Congress must act to encourage conservation, promote technology, build infrastructure, and it must act to increase materials production at home so America is less dependent on foreign sources." With regard to jobs, all jobs are not equal. To paraphrase John Reeves of MidContinent Resources (Reeves, 2002): "If our nation is to prosper, we all cannot make a living by doing each other's wash. Some of us, at least, must be actively engaged in the primary production of raw materials from the riches of the earth and other Americans must turn those materials into consumer products." The unfortunate trend in our country has been to neglect the primary production of basic materials, even those coming next in line. We have left those responsibilities to others while we concentrate instead on performing various services, i.e., doing each other's wash and flipping burgers. This cannot continue. It must be remembered, especially by those in leadership positions, that all "jobs" are not created equal. Some jobs are much more essential to the security and wellbeing of our country than others. We must be sure that the important ones are in place. We cannot produce the basic materials that our nation requires without access to those materials. This leads to my Proposition 1: You cannot have a viable mining industry without a clearly enunciated, positive U.S. materials policy. Background regarding U.S. materials policy Resources for freedom. In January 1951, President Truman created the President's Materials Policy Commission, with William S. Paley as chairman. As expressed in the invitation letter from the president to Paley: This commission, within the executive office of the president, is to study the broader and longer-range aspects of the nation's materials problems as distinct from the immediate defense needs. The task of the commission is to make an objective inquiry into all major aspects of the problem of assuring an adequate supply of production materials for our long-range needs and to make recommendations that will assist me in formulating a comprehensive policy on such materials. The commission should study, together with any other aspects deemed by it to be pertinent, such questions relating to production materials as: - the long-range requirements outlook; - the long-range supply outlook; - the prospect and estimated extent of shortages; - the consistency and adequacy of existing government policies, plans and programs; and - the consistency and adequacy of private industry practices.

Jan 1, 2003

By S. T. Murray

The European industrial minerals industry and its markets are largely self-sufficient. The companies who are members of the Industrial Minerals Association (IMA-Europe) number around 150 contributing 5 billion Euros to the EU?s GDP and range in size from global publicly quoted corporations to small family owned private companies. Their means and capability to implement sustainable development vary considerably. However the leading companies provide an excellent set of best practices, which IMA as a trade association with recognised core competencies in the field of sustainable development is ideally placed to promulgate throughout its membership. As an active participant in the EU Voluntary Scheme for SDI reporting IMA is not only working to increase the level of response to the SDI questionnaire but is also developing with its members a new sustainable development charter which its members will voluntarily adopt as a guiding principle for their implementation of sustainable development This work will be a consultative process involving all IMA?s section members as well as other trade associations, NGOs and MEPs. Public awareness of the benefits of minerals and their contribution to sustainable development has been raised by IMA?s awareness campaign now being followed by a more targeted programme aimed at MEPs. Further work in the future will consider product stewardship and life-cycle analysis. IMA is already positioning itself with the help of its members to assimilate the minerals industry of the accession territories in the sustainable development process.

Jan 1, 2003

By J. W. Hawkins, K. B. C. Brady, M. W. Smith

The Pennsylvania Department of Environmental Protection (PaDEP) has been issuing surface mining permits since 1984 that authorize remining in areas that will affect preexisting pollutional discharges. These permits require the mine operator to employ best management practices to reduce pollution loading from abandoned mine discharges. A total of 110 completed mining operations with 233 discharges were evaluated to determine the impact to water quality. Overall, acid loading from these discharges was reduced by 7, 200 kg (15, 900 lbs) per day or 61%. Metal loadings were also reduced. For acidity, 49% of discharges improved or were eliminated, 52% showed no significant change and fewer than 1 % got worse. Loading reductions resulted from a combination of reduced concentrations and lower flows.

Jan 1, 2003