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By John A. Wells, Leticia Conca, Kenneth G. Thomas

"Since about 2002 there has been significant capital cost escalation, not inflation, in the mining industry causing turmoil for successful project completion. Project capital costs have more than doubled and some cases tripled in this time period. This has rendered many projects to be economically challenged and in some cases not viable. In addition higher than expected operating costs have further adversely affected project metrics such as NPV and IRR. Capital cost increases for projects have been widely reported globally. This current paper reviews three items. Firstly, why such capital increases and the various components that make up capital estimates. Secondly, it looks at reasons why preliminary estimates, for example at scoping and pre-feasibility level, have been lower than the ultimate constructed costs. Such increases and differences in estimates have caused major problems for mine builders and have led to a general nervousness on the part of those providing project finance. Thirdly, what discipline is needed in project execution in an attempt to mitigate such capital increases. The paper will hopefully give a better understanding of the various issues and factors involved for those in the mining industry.INTRODUCTION The years 2012 and 2013 were a turbulent time for the mining industry. The European economic crisis, politics, metal price volatility and a wave of changes of CEO´s in some of the major mining companies all contributed to a challenging couple of years. Two issues stood out. First, the huge increases reported in the capital costs of projects, where increases of 100% - 300% were not uncommon and in some cases exceeded that during the first decade of the 21st century. Second, company write downs related to takeovers during the boom and the stabilization/correction in commodity prices. These have led to great uncertainty, made it difficult (or impossible) to raise project financing costs, contributed to the changes at CEO level and placed many projects either on hold or cancelled altogether. It is commonplace now to read of companies talking of reduced capital expenditure and making a complete review of their projects and operations to contain costs."

Jan 1, 2014

By P M. Black, T Itaya

Arc-type volcanic activity has been a major feature of the late Cenozoic geological evolution of the Pacific-Australian plate boundary in the northernNew Zealand region. The time/space distribution patterns of arc-type rocks reflect changes in the nature of the plate boundary as it has evolved. Inception of volcanism began in the north during earliest Miocene times (26 Ma) following ophiolite emplacement and during the next 10 Ma developed into a volcanic arc segment extending south to the present position of the central North Island. The northern part of the arc became extinct about 15Ma ago, but activity continued in the central (Coromandel) part of the arc until about 5 Ma ago. In late Pliocene and Quaternary times volcanic activity has become concentrated in a northeast trending zone which is collinear with the Tonga-Kermadec Arc.   These time/space patterns can be interpreted in two ways. Firstly, if relative plate motion was essentially transform in the region prior to 26 Ma then a small change in the relative plate vectors may have initiated subduction and the associated volcanism. Southward evolution of the arc can then be seen as the straightening and extension of a single arc. Alternatively, the distribution of volcanic rocks can be interpreted as the capture of a relatively short lived arc by southward migration of the dominant Tonga-Kermadec subduction system.

Jan 1, 1995

Three computerised sets of minerals information are being developed by New Zealand Geological Survey in co-operation with the Resource Management and Mining group of the Ministry of Energy: 1. Geological Resource Map: a file of information on the location, geology, geochemistry, production, and potential use of individual occurrences of aggregate, mineral, geothermal, coal, oil, and gas resources. The computer program can be used for search and retrieval of information and the production of maps and tables. The data is being published as a series of 1:250 000 maps with accompanying text and tables. 2. Minerals Bibliography: an index and retrieval system for mineral exploration related; open-file company reports, N.Z. Geological Survey files, scientific research publications and university theses. 3. Minerals WhoÆs Who: an annotated directory of geologists involved in mineral exploration, mining and research.

Jan 1, 1986

In the context of sustainable development, the Minerals Council of Australia (2010) states that 'investments in minerals projects should be financially profitable, technically appropriate, environmentally sound and socially responsible'. In other words, the business of mining can only be sustained if these criteria are met.   Science and technology plays a major role in all four of these criteria. This paper will present the technology and innovation emerging from the Minerals Down Under National Research Flagship which brings together CSIRO and more than ten of Australia's leading universities to work with industry to drive efficiency, productivity and environmental performance. This work is required if the Australian minerals sector is to thrive and continue to deliver national benefit in the face of increased global competition, declining ore grades, depleting ore deposits, increasingly constrained national resources (land, energy, water and people) and changing societal expectations.   Science and technology to reduce emissions and water use, discover greenfields resources, enable deeper mining operations and transform mineral processing are described. Technology is presented as an enabler of sustainability: a means to this end but not as an end in its own right.

Jun 1, 2010

By M E. Dunphy, P Silversmith

The Reefton Goldfield, both historically and potentially, represents a significant gold producing camp in the Westland province of New Zealand. Some two million ounces of gold have been produced from the Greenland Group host rocks between 1870 and 1951 with the most significant producers being the Blackwater and Globe Progress mines.   Steep terrain, high rainfall, poor outcrop, widespread fluvio-glacial deposits, tertiary cover and sometimes onerous environmental access conditions have proved a challenge to conventional exploration techniques. In addition classic exploration techniques have come up against a desire to reduce exploration cycle time and exploration costs while increasing both quality and quantity of geological information.   The trial, and subsequent implementation, of Wacker sampling has proved a highly successful and effective geochemical tool currently being utilised to target, discover, and define potential economic gold mineralisation in the Reefton Goldfield.

Jan 1, 1997

Previous methods for measuring the flow of solids in Jnrdraulic conveying have not considered the important effects of slip velocity and particle concentration. In this paper an extension of the method proposed byShirato et al. (J. Chem. Engng. 'Japan, 1: 164-167) for determining mass flow in a vertical conduit is outlined.The present method consists of measuring' the volumetric flow of the slurry (by a magnetic flow meter for instance) and the density of the slurry in two pipe sections of different diameters. Effects of variation of slip withparticle concentration, not previously considered, are allowed.Problems involved in estimating the density of a slurry from differential pressure measurement are discussed.The major problem is the uncertainties in estimating frictional losses due to the wall in two-phase flows. The greater reliability of a more "direct" technique, such as by 'Y-ray absorption, for measuring solid concentration is emphasized.

Jan 1, 1971

By R Castedo, L. M. Lopez, J. A. Sanchidrian

In 2014 the authors presented results from 13 tests made with two blasting seismographs on a vibration exciter. They measured coupling transmissibility as function of frequency (i.e. ratio of the velocity of the sensor mount to the velocity of the ground motion) from 16 to 200 Hz at one or two vibrations levels (5 mm/s or 0.2 in/s, and 20 mm/s or 0.79 in/s) with mounts freely placed, sandbagged, and anchored to a granite slab firmly attached to the plate of a vibration exciter. As the memory capacity of one of the seismographs prevented to cover low frequencies, e.g. 4-16 Hz, a new measuring campaign has been recently made to extend the study down to 2 Hz. In this campaign, two more techniques, in which the sensor mounts were fixed with thermal adhesive or a combination of duct tape and gypsum plaster, have been also investigated from 2 to 200 Hz at 5 and 20 mm/s. Free and sandbagged mounts lead to a weak coupling of the mounts to rock, so that transmissibility depends on the characteristics of the imposed rock motion (peak velocity and frequency). Measurements are accurate only at low frequencies (below 17 Hz for free mounts and 10 Hz for sandbagged) in the tested conditions (velocities up to 20 mm/s). Above these frequencies, ground motion in the measurement can be modified by a factor of 0.16 to 1.22. Anchored, glued and plastered mounts achieve a stiff rock-to-ground coupling, ensuring consistent measurements for the frequencies commonly found in blasting independently of the vibration level and the mount characteristics

Jan 1, 2015

By Alun J. Davies

This paper describes a design-build project for the construction of a tanker wharf for 150,000 dwt vessels. The tankers deliver oil from offshore oil fields to a Transshipment terminal on the south coast of Newfoundland. The project described is an expansion to a previously constructed facility, adding an additional berth. The first berth was designed conventionally as concrete structures supported on groups of independent, single piles. The second berth was awarded to Peter Kiewit Sons' Co. Ltd. based on an alternate design which utilized a "jacket" concept whereby prefabricated steel frames are placed on the seabed and serve as permanent templates and also give lateral support to the piles, thereby increasing their load capacity. This led to economies and time savings. Discussed herein is the design process and the field installation, covering the jackets, driven pipe piles, and the rock anchors.

Jan 1, 2000

By R. L. Andrew

The southwest Pacific has produced at least four of the world’s premier porphyry copper-gold deposits, and the current level of exploration is likely to produce even more. An appreciable amount of gold is being produced with this copper, with obvious economic advantages. Gold content, in addition to their large size, makes the southwest Pacific’s porphyrycopper-gold deposits very attractive exploration targets. The recognition of telescoping and overprinting of porphyry systems has produced a greater awareness of the likely surface expressions, in particular the significance of advanced argillic lithocaps in porphyry exploration. The recognition of the spatial and genetic association of porphyry copper and epithermal gold systems (Sillitoe, 1972), as in other parts of the world, has had important implications for exploration in the Asia Pacific region.

Jan 1, 1995

Pulverized Fuel Combustion The apparatus shown in the illustration is a complete equipment f r supplying coal to boiler and metallurgical furnaces, cement and lime kilns, dryers, and to all furnaces requiring a temperature and quality of fame under prompt and easy control. It is claimed that the Aero Pulverizer makes practicable the highest efficiency obtainable from burning coal. It makes coal burn like a gas, a flame, the physical and chemical character of which is regulable- a flame that may be elongated or shortened, thus placing the zone of highest temperature where needed- a flame that may be made oxidizing, reducing, or neutral, as occasion may require. The coal is burned as pulverized, and there is no storage of the powder with its attendant hazard. Artificial drying before pulverizing is not necessary if the coal supply be sheltered from rain and snow. Where the Aero is used, it is wholly a furnace question whether a dryer should be installed; it is not at all a pulverizing or storage question. Labor is reduced to a minimum. Slack coal at low cost yields its last B.T.U.

Jan 11, 1915

By Garland E. Likins

High-strain dynamic testing of drilled shafts and cast-in-place piles has become routine procedure in many parts of the world today. Field testing is performed by measuring strain and acceleration records under impact of a falling mass. Wave equation analysis is utilized to design the weight, drop height and cushion of the hammer apparatus to assure a successful test. The Pile Driving Analyzer* (PDA) and CAPWAP* methods are used for data acquisition and analysis. Testing results yield information regarding pile static bearing capacity, structural integrity, and pile-soil load transfer and pile load-movement relationships. This paper discusses application of high-strain dynamic testing to cast-in-place shafts with emphasis on aspects unique to this type of pile. Suggestions regarding minimum requirements for good quality tests are offered. Five case histories reported in the literature are summarized and a sample specification is also included.

Jan 1, 1995

By Mary E. Cocklan-Vendl

Regulatory processes associated with development of major mining operations in Alaska and British columbia were evaluated using specific case studies. Included were one hard rock mine in Alaska (Red Dog Mine), one hard rock mine In British Columbia (Snip Mine), and one offshore gold dredging project in Alaska (WestGold SIMA). Based on a comparison of the three case studies, it became clear that the primary incentives for cost effective permitting are: 1) early and continuing coordination of proposed project plans, designs and schedules with key regulatory agencies and local area residents and 2) development of a sufficient level of baseline information on air quality, water quality, wetlands, endangered species, fish and wildlife, and socia-cultural conditions to support the required permit application. The U.S. permitting process worked in much the same way as the Canadian permitting process. Disincentives of mine permitting include high initial costs for baseline data gathering. However, a relatively high early investment resulted in more efficient permit acquisition and reduced long-term monitoring requirements. A common problem Identified was the inadequate supply of trained agency personnel with the requisite technical and permitting experience. This sometimes resulted in poor decisions and unnecessary changes in project plans and schedules.

Jan 1, 1993

By Michael M. Hamilton

U.S. Bureau of Mines personnel examined mines, prospects, and mineralized areas to determine mineral resources and resource potential in and adjacent to the North fork Smith RARE II study area. Most mineral resources identified in this area are in laterites, highly-weathered residual soil zones. In the RARE II area, resources of nickel, cobalt, chromium, and magnesium were identified at 15 laterite properties and chromium resources at one chromite mine. Other commodities include copper, gold, silver, and mercury (fig. 1). Approximately 1,100 lode and 1,200 placer claims have been located in or adjacent to the area. Most placer claims are for literites. There are no patented claims or mineral leases. Forty laterite deposits on 15 ,properties within the RARE II area (fig. 2) contain about 16 million tons of identified marginal reserves and subeconomic resources containing nickel, cobalt, chromium, an magnesium (table 1). Most deposits have keen explored and are currently claimed. California Nickel Corporation is developing laterites on Gasguet Mountain, within and adjacent to the southeastern and western parts of the study area. If this project proceeds to production, a laterite processing plant on Gasquet Mountain would enhance the minability of other deposits in the study area. The Climax, PFM, DF, and Stone Corral properties (fig. 1, nos. 1, 6, 9, and 23) have deposits of sufficient tonnage and grade to attract mining interest; resources at these properties are in and adjacent to the RARE II area.

Jan 1, 1983

Mining and the related extractive and processing industries are chiefly responsible for America's high standard of living. Enormous quantities of sand and gravel, limestone, copper, iron and a myriad of other mineral commodities are required to sustain our growing nation. However, the mineral deposits, both domestic and foreign, are becoming increasingly difficult to find. Adding substantially to the problem, is the fact that the conditions are worldwide. Foreign politics are increasingly affecting mineral commodity availability. Figure 1, taken from Bureau of Mines, "Status of the Mineral industries 1976" illustrates our dependency (in some cases total) on foreign sources for vital mineral commodities. While few nations are capable of exerting an OPEC-like influence on any one mineral commodity, the threat of cartel arrangements and related control strategies is evident. Nationalization of entire industries, once they become self-sufficient, is also exerting a disruptive influence on a large portion of the mineral industries.

Jan 1, 1977

By D. D. Bush

Based on the results of this study, the underhand cut and fill stoping method, with mass destressing, is an effective method for controlling rock bursts and falls of ground for deep mining in the Coeur d'Alene Mining District. The procedure can be utilized to pull highly stressed pillars by converting from conventional overhand stoping methods or used as a primary recovery system. During the demonstration, only one minor rock burst occurred, with no injuries. The system facilitates accurate placement of vertical boreholes for effective mass destressing. Each mining cut is filled with cemented sandfill overlying a timbered mat that forms the back for the succeeding cut. For this demonstration, a cemented fill was mixed on the surface and piped to the stone. Costs for pillar recovery by this method are comparable and are considered cost effective over conventionally timbered overhand mining as a pillar recovery method.

Jan 1, 1982

Horizontal holes are drilled underground into coalbeds to control methane flow from ribs and active face areas and to make gas pressure measurements in coalbeds. Gas pressure measurements are made by drilling the same hole incrementally. After each increment, the hole is filled with some type of packers and allowed to reach equilibrium before a gas pressure reading is taken. As the length of hole increases, more packers are required to effect a seal and obtain a reliable pressure measurement. Problems have been encountered in obtaining satisfactory packer seals due to the friable nature of the coalbed. New methods of packing the holes must be used. Therefore, this project was established to evaluate materials and develop a new technique in which a semiliquid and/ or rigid type grout could be placed in the hole to provide satisfactory sealing.

Jan 1, 1972

What is a nugget effect? In the early development of geostatistics, the term ?nugget effect? was coined for the apparent discontinuity at the beginning of many semivariogram graphs. This name was chosen to reflect the large differences found between neighbouring samples in ?nuggety? mineralizations such as Wits gold reefs. Geostatistical theory assumes that the difference between a sampled value and a potential repeat sample at the same location is actually zero. Included in this ?nugget effect? would be true variation between contiguous samples due to the nature of the mineralization, micro-fracturing, nugget or crystal size, and so on. Also included in the nugget effect would be any ?random? sampling variation which might occur due to the method in which the sample was taken, the adequacy of the sample size, the assaying process, etc. Arguments were put forward that ?sampling errors? actually exist at zero distance. Some geostatistical schools actually maintain that the ?nugget effect? is all sampling error. This would imply that ?perfect? sampling would eliminate the nugget effect entirely. There is now a dichotomy both in the geostatistical world and in the software packages provided for geostatistical analyses. It may seem academic to argue over whether the semivariogram model should take a value of zero, a value equal to the nugget effect, or a partial value at distance zero. However, the decision can have a profound effect on both the estimated resource and in our confidence on that resource. Whereas most geostatistical texts define the semivariogram model as taking the value of zero at zero distance, others imply that the full nugget effect should be used at zero distance. For example: ?The nugget effect refers to the nonzero intercept of the variogram and is an overall estimate of error caused by measurement inaccuracy and environmental variability occurring at fine enough scales to be unresolved by the sampling interval3 ?Christensen4 has shown that the ?nugget effect?, or non-zero variance at the origin of the sernivariogram, can be reproduced by a measurement error model ?The nugget effect is considered random noise and may represent short-scale variability, measurement error, sample rate, etc.5. In many training texts and Web courses, the definition of the semivariogram is ambiguous as the formulae for semivariogram models is not actually specified at zero distance6,7,8.

Jan 1, 2010

By T. Yalcin

In the Box-Wilson method, the correlation between dependent and independent variables is represented by a polynomial response function, whose constant and coefficients are determined by applying regression analysis to the experimental data collected. The five levels used for each variable consist of a minimum, a maximum and three intermediate values. A study was carried out using Ni-Cu ore from Sudbury, Ontario, in which 15 experiments designed according to the Box-Wilson method were carried out in random order and in duplicate. The two sets of replicate data showed close similarity, with an overall variance of 0.311 for the five parameters studied. The response functions were used to optimise frother dosage, collector concentration and air flow rate and an experiment was then carried out under the optimised conditions; the results agreed closely with those predicted by the response functions

Jun 21, 1905

By Virgil A. Marple

It was the purpose of this contract to conduct research in several different areas of instrumentation used to determine the quantity of respirable dust in the mining atmosphere. One area of research was in evaluation of instruments including several respirable dust monitors, several types of photometers, and a QCM cascade impactor. An instrument evaluation chamber was developed to aid in evaluating the instruments in a dust atmosphere. Another area of research was investigations into new instrumentation concepts, such as a virtual impactor/photometer instrument, a new optical device which can be used as either an optical particle counter or photometer, a new personal respirable sampler, which employs an impactor instead of a cyclone as a preclassifier, and the development of a new cascade impactor, which deposits the particles uniformly on the impaction plate. Another area of research included the use of many of these instruments in two field studies, including a silica sand plant and a tungsten mine.

Jan 1, 1981

By Mark R. Pettitt

The development of fire hazard criteria for noise control products in underground coal mines are presented. Qualifying requisites of the criteria include maintaining miners' safety, allowing for maximum use of noise control products, and economic feasibility. The burning process is analyzed for its relationship to fire hazard criteria developed by NASA and the FAA, and the mine environment is analyzed in conjunction with the end-use applications of noise control products. Also, the interim fire hazard specification developed by MSHA is appraised as it applies to end-use applications of noise control products. From these analyses and a literature survey, fire hazard criteria are developed. They include an initial screening procedure that evaluates the level of flammability testing required. Fire tests that may be indicated are the Vertical Flame Test, the Ignition Temperature Test, and the 25-Foot Tunnel Test.

Jan 1, 1983