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By Palmer King

The increased emphasis on environmental protection, together with the exorbitant costs, or in many urban areas the complete unavailability of surface space, has resulted in a burgeoning demand for greater use of underground space. More and more, those considering new or expanded facilities are looking toward the possibility of utilizing underground space for communications installations, for transportation of people, industrial products, water, sewage and energy, and for industrial installations. Happily, this growing demand for use of underground space is accompanied by fast forward strides looking toward more efficient underground excavation techniques. The tunnel boring machine is already here and where ground conditions are suitable for its use it can greatly reduce the cost of underground excavations, savings of one-third or more often being realized. Research is underway involving excavation by use of laser beams, jetting, vibrations, improvement of tunnel boring machines to make possible the excavation of harder rock, and other advanced techniques. The Engineering Foundation estimated in 1973 that tunneling costs can be reduced as much as 30 percent by rapid excavation methods which are expected to be developed through ongoing research programs in the next few years. Your American Society of Civil Engineers reported in 1973 that $60 billion per year, or 15 percent of the gross national product, could be saved if facilities required to support life were located in the subsurface. Studies looking toward improved contracting practices are going on under the sponsorship of the National Academy of Sciences, and Mr. Al Mathews who is heading this program will address you during this session on the status of this project. I myself am a member of Mr. Mathews' study group and, considering the human element involved, it is too early to make predictions as to what can be accomplished in the way of savings in costs of

Jan 1, 1974

By C. Tsamantaki

Water-bentonite suspensions exhibit a yield stress which is defined as the minimum applied stress for flow. Considerable debate exists about the yield stress being a material property, hence different measuring methods should give similar answers, but several investigators have demonstrated that it is an engineering reality. Yield stress is normally estimated indirectly from the rheogram obtained with a viscometer following an extrapolation to zero shear rate (the dynamic yield stress), but the technique may be prone to errors because of slip flow. Direct measurements, not prone to such errors, rely on an independent assessment of the yield stress, normally carried out with the vane method (the static yield stress). In this paper results are presented and compared regarding the yield stress of 14 different water-bentonite suspensions measured using both the direct and the indirect methods. In order to obtain a wide range of yield stress values, two different types and two concentrations of bentonite at various pH were tested. Rheological data were obtained using a rotational speed viscometer and a yield stress vane measuring device. Measured vane yield stress values ranged from 5 Pa to 83 Pa. Rheological data collected with the rotating viscometer were fitted using various conventional techniques (interpolation, linear and non-linear regression analysis) as well as using a golden section yield stress search methodology based on Herschel-Bulkley model, developed in house. The vane instrument measures directly the yield stress of the suspensions and requires no further data handling. A comparison of the measured values of the yield stress with the direct and the indirect method is then made for the water-bentonite samples. Not very large differences are observed among different techniques and the variations are discussed. Similar data from literature are also analyzed and the comparison shows that differences on the various estimation methods are much larger than the differences observed in this study.

Jan 1, 2006

By K. Irmscher

During the last years, using modular computer models on the software and distributed computer capacities on the hardware side has become quite common in the mining industry. When tackling real mining problems under the condition of heterogeneous systems, however, some problems become obvious: the incompatibility of the heterogeneous platforms in connection with the heterogeneously structured information and the necessity of interpreting the data. Knowledge based approaches are employed for solving different planning problems in the field of mining industry. The main problems here consist in the knowledge representation and data acquisition. Starting point of the investigation form classifications of mining planning problems and the corresponding models which can be transformed into information models for evaluation. With help of an expert system a practical solution is represented. Distributed systems with mobile computing and communication facilities for immediate access can be used as an additional support for planning and processing. On the base of public or private computer networks (including mobile networks) the foundation is given for a computer supported treatment of planning tasks. Additionally the use of teleworking scenarios in regions of mine planning and data collection in geological applications is prepared. Foundation forms a workflow system on an object-oriented distributed platform.

Jan 1, 1996

By R. Hiebert, M. Canty, S. Beckman

An innovative biological process is described for the treatment of cyanide-, metals- and nitrate-contaminated mine process water. The technology was tested for its ability to detoxify cyanide and nitrate and to immobilize metals in wastewater from agitation cyanide leaching. A pilot-scale demonstration is described in which a pilot plant was constructed to demonstrate the technology on a mine process-waste stream at a mine in Nevada. The demonstration was performed jointly under the Mine Waste Technology Program (MWTP), funded by the US Environmental Protection Agency (EPA) and jointly administered by the US De¬partment of Energy's (DOE) Western Environmental Technology Office (WETO) under Interagency Agree¬ment Number DW89938513-01-0. The Superfund Innovative Technology Evaluation (SITE) demonstration program was also involved in the project. MSE Technology Applications Inc. (MSE), Butte, MT, was the contractor responsible for conducting the project, and Pintail Systems Inc., Aurora, CO, was the technology provider. The pilot-scale unit was field-tested at Echo Bay's McCoy/Cove Mine southwest of Battle Mountain, NV. The biotreatment process was considered successful in destroying cyanide in the mine process water. The process was also determined to be effective in removing metals. The pH was consistently neutralized and nitrates were successfully removed from the mine process water. From the results of these pilot-scale tests, it was concluded that the biotreatment process potentially of¬fers an innovative, cost-effective alternative for the treatment of mining wastewaters.

Jan 1, 2000

By P. K. Gbor

Over 2 million tonnes of smelter slags containing Co, Ni and Cu are produced and stockpiled in Canada each year. Smelters also produce SO2 an air pollutant. Recycling these materials will maximize the value of natural resources and minimize possible environmental impacts of industrial operations. The objectives of this research were to understand the characteristics of slag, the reaction of slag with SO2(aq) and to develop a novel method for extracting Co, Ni and Cu from slag using SO2. The properties of slags from different smelters were studied, with emphases on the form of Co, Ni, Cu and Fe. Leaching experiments were carried out in a batch reactor. The parameters investigated included concentration of SO2(aq), stirring speed, particle size, temperature and pH. O2 was introduced into the reactor to study its effect on the system. The amount of each of Co, Ni and Cu in all the slags was less than 1%, while Fe was between 30% and 45%. The form of Co and Fe was primarily oxide, however, significant portions of Ni and Cu were present as sulphides. SO2(aq) alone, was effective in leaching Co and Fe. Cu dissolution was negligible due to precipitation. The presence of O2 improved Cu and Ni extraction. SO2(aq) was found to be more effective in leaching slag than H2SO4 at the same pH. The leaching process was modelled using the shrinking core model. A scheme was proposed for the extraction of Co, Ni and Cu from slag using SO2(aq). The process makes efficient use of SO2, separates Co and Cu at an early stage, and minimizes the consumption of base during Fe separation.

Jan 1, 2003

By Orville L. Lantto, Bruce K. Cantrell, Keith S. Olson

Approximately 10 to 20 pct of exhaust aerosol mass from diesel equipped vehicles operating without exhaust controls is attributable to particles in the 1.0-10 µm size range. Recent in-mine measurements suggest that, in addition to reducing overall exhaust aerosol mass concentrations, the use of waterbath exhaust conditioners (water scrubbers) may significantly reduce the concentration of diesel exhaust particles larger than approximately 0.5 µm aerodynamic diameter. This implies that a measurement system that discriminates between diesel and mineral dust aerosols on the basis of aerosol size would have different accuracies depending on use of a water scrubber. To test this hypothesis, laboratory measurements were made by the Bureau of Mines to determine diesel exhaust aerosol penetration efficiency through a water scrubber as a function of size and engine operating conditions. Size distributions were determined using a Micro-Orifice, Uniform Deposit Impactor. Concentrations of CO, CO2, NO x, O2 and gas-phase hydrocarbon concentrations were also measured. No significant effect was found for these gases other than a slight decrease in NOx emissions. The water scrubber served as a moderate aerosol control with reductions in mass concentrations of about 29±9 pct under most conditions. This reduction occurred for particles less than 0.2 µm and greater than 0.6 µm aerodynamic diameter. Coal dust aerosols are mostly larger than 0.8 µm aerodynamic diameter. With use of a water scrubber, separating the aerosol into two parts, greater and less than about 0.8 µm aerodynamic diameter during sampling, results in collection of diesel and coal dust aerosol accurate to within 10 pct. Without a water scrubber in operation, such a sampling protocol would only be accurate to approximately 15 pct.

Jan 1, 1991

By John Frostiak

The Campbell gold operation of Placer Dome Inc. produces an arsenopyrite-sulfide concentrate that must be treated by roasting, biooxidation or pressure oxidation to obtain high gold recoveries. Pressure oxidation is a proven process that also meets Ontario's stringent environmental regulations. A comparison of biooxidation and pressure oxidation was completed early in 1990. Placer Dome selected pressure oxidation as the preferred process to replace the roaster. The commercial plant design was based on technology supplied by Sherritt Gordon. In July of 1991, the existing roaster operation was shut down and a new pressure oxidation plant was commissioned. The Campbell Red Lake Mine, in Balmertown in northwestern Ontario, is the first plant in Canada to use Sherritt Gordon's pressure oxidation technology to recover gold from a refractory ore body. A similar process has been used at Sao Bento in Brazil since 1986. The Porgera complex in Papua New Guinea also uses Sherritt's technology. At the Campbell Mine, gold occurs as either free gold or is encapsulated with sulfide minerals, mainly arsenopyrite, pyrite and pyrrhotite. These sulfide species are recovered from the ore by crushing and grinding to 80% -75. µm (200 mesh), followed by flotation. About 40% of the gold in the ore is recovered by gravity separation. The remainder reports to the ground slurry feed to flotation. The flotation concentrate averages about 55 to 60 t/d (60 to 66 stpd). A typical analysis is shown in Table 1. Before the installation of the pressure oxidation plant, the flotation concentrate was treated in a two-stage, fluid bed roasting circuit. Roaster off-gases passed through two parallel sets of cyclones, followed by electrostatic precipitators. Arsenic trioxide was captured in a four-chamber baghouse before the gas was discharged to a stack. The arsenic trioxide was sold or conveyed to an underground storage vault. The roasted calcine was fed to a gravity separation circuit and then subjected to cyanide leaching. Gold was recovered from the filtered leach solution in a Merrill-Crowe zinc precipitation circuit.

Jan 1, 1992

By Barbara S. Parrish, I. S. Parrish

For two consecutive years the author and his wife have been fortunate enough to have been invited by the Peoples Republic of China to work with Chinese geologists of the Geological Bureau of the Ministry of Metallurgical Industries (MMI). Our visits, each of which lasted 7-8 weeks, took us to northwestern Sichuan, central Anhui, and much of Hebei Province, as shown in the accompanying drawing. We were asked to evaluate, criticize, and offer suggestions on the exploration and mining techniques used by the Chinese. Our commission both years was centered on gold, although we were also to visit other operations when the opportunity arose. In 1986, the visit primarily concerned with disseminated "Carlin" type gold deposits; in 1987, with "Greenstone" type gold deposits. Gold has been targeted by the Chinese as a metal of importance to the nation. Several governmental agencies have received direction and budgets to seek and develop gold properties. Besides the Ministry of Metallurgical Industry, gold is being sought by the Ministry of Geology, the China Gold Corporation, and reportedly the Peoples Army. There is considerable competition among these agencies. It is not uncommon to find two or more agencies working in the same general area. However, communication between the groups is minimal. Last year, we toured a small mine at Bambishan. We could see a diamond drill across the valley. The rig belonged to another Ministry and my guides voiced their curiosity to know what their competitors were finding. Mining, too, is not the monolithic bureaucracy that most Westerners anticipate in China. There are various levels of mining. These differ not only in sophistication, but in ownership. First, for small deposits the state allows "Peoples Mines". These can be owned and worked by individuals. The individual owner-miner may hire relatives or neighbors and give them a wage or he may turn the mine into a joint ownership situation. They

Jan 7, 1988

By Mike Horn, Keith Meade, Marvin L. Smallwood

Technological changes in programmable logic controllers (PLC)'s and the need to improve the architecture of Mine Wide Monitoring Systems (MWMS) has resulted in the design of a PLC based system at the Virginia Division of Island Creek Coal Company. The system which is presently in the installation phase, is a joint effort of Island Creek Coal Company, Westinghouse Electric Supply Company and Mining Controls Incorporated. The system uses an ethernet based network for graphic display of system data operating under the Genesis software package. Telemetry for the system utilizes the Seimens/Westinghouse L1 network operating over two twisted pairs. Remote telemetry uses fiber optic links and modems operating over standard telephone lines. 500 and 2000 series PLC's provide distributed data processing for the system with hierarchial processing operating under the Genesis software on the ethernet network for individual mine site monitoring along with the remotely located division office monitoring. System control and data acquisition is provided for underground MWMS operations and on the surface for a vast methane gathering system that is used for degasification of the mines and collection of pure methane for sale to the Columbia Gas Company as natural gas. The inability of industrial MWMS companies to keep up with the vast changes in technology, along with economic considerations associated with expanding the existing MWMS created the need for the development of the PLC based system to replace the older industrial monitoring systems.

Jan 1, 1993

By John G. Viets, J. Robert Clark

A multielement extraction system is being used successfully to provide essentially interference-free geochemical analyses to aid in gold exploration. The Methyl isobutyl ketone-Amine synerGistic Iodide Complex (MAGIC) extraction system separates Ag, As, Au, Bi, Cd, Cu, Ga, Hg, In, Mo, Pb, Pd, Pt, Sb, Se, Sn, Te, T1, and Zn from interfering geological matrices. Quantitative extraction of these elements is accomplished over a broad range of acid normality, making it possible to economically determine all 19 elements from a single digestion or leach solution. The resulting organic extracts are amenable to analysis by inductively coupled plasma atomic emission spectroscopy (ICP-AES) and flame atomic absorption spectroscopy (FAAS). For many years the principal shortcoming of ICP-AES was the complex spectral and stray-light interferences that were caused by the extreme variability of components such as Fe. Na, and Ca in common geological matrices. The MAGIC extraction allows determination of the extracted elements with enhanced sensitivity, from a virtually uniform matrix, by ICP-AES and FAAS. Because of its simultaneous multichannel capabilities, ICP-AES is the ideal instrumental technique for determining these 19 extracted elements. Ultratrace (sub-part-per-billion) determinations of Au and many of the other extracted elements can be made by graphite furnace atomic absorption spectroscopy (GFAAS), following back stripping of the extracts. The combination of the extraction followed by stripping of the organic phase eliminates 99.999% of potential interferences for Au. Gold determination by GFAAS from these extracts under the specified conditions yields a fourfold improvement in sensitivity over conventional GFAAS methods. This sensitivity enhancement and the interference-free matrix allow highly reliable determinations well into the parts-per-trillion range.

Jan 1, 1990

By Ian M. Loomis, Malcolm J. McPherson

A fuel-rich fire exists when the quantity of fuel exceeds the oxygen available to support complete combustion. The transition of a mine fire from Oxygen- rich to Fuel-rich combustion, at this time, represents a point-of-no-return in the fire fighting efforts. Once the transition has been made to fuel-rich the fire can spread at a rate 6 to 10 times as fast as in the oxygen-rich state. Utilizing available technology the fire fighters are left to seal the fuel-rich fie as the only technique to extinguish it. In order to minimize the devastating effects of a fuel- rich fire it is important to understand the means by which the fire becomes fuel-rich and by what means the fire may be returned to an oxygen-rich state. This paper covers: the development mechanism of a fuel- rich fire in a coal mine entry and the physical and chemical effects of applying water to a fire. Experiments concerning these matters have been conducted in a 30 cm square wind tunnel constructed at the Virginia Polytechnic Institute and State University as a model coal mine entry. This paper also addresses the results obtained in testing application of a water mist to fuel-rich fires in this model. These tests have centered on the development profile of a fuel-rich fire in a duct and demonstrate a means of regaining control of a fuel-rich fire by returning it to an oxygen-rich state.

Jan 1, 1995

By Robert F. Randolph, Arnold C. Love

This study describes the positioning strategies used by operators of radio controlled underground mining machines. The observations have implications for task design to insure adequate visibility and task performance. Radio controlled continuous coal mining machines have allowed many mines to increase safety and production by placing human operators away from the hazards of an unsupported mine roof. The operator is no longer confined to an operators component and visibility can be enhanced with proper positioning. Also, the operator is no longer subjected to the shocks and vibrations of the mining machine. The operator's ability to move freely about the worksite requires a careful analysis of several competing safety and production considerations. Thirty-five operators of remotely controlled continuous mining machines were observed using work sampling followed by interviews to determine where the operator was positioned and what he or she was watching. These observations were separated according to the task being performed by the continuous mining machine and summarized as position density plots. The specific task of tramming in reverse through a crosscut is analyzed along with more general summaries of the time miners spend outside of the policy-defined operating positions while performing other production tasks. The operators were: observed to frequently vary from company standard operating procedures (SOP). Many of the variations from company SOPS were based on task demands. Interview responses indicated that portions of the mining task place visibility demands on the operators that are difficult to accommodate within existing procedures. An improved task design process would include these visibility requirements. Also, the operator's vision can be augmented thorough video cameras in future teleoperated mining systems, and the operator can be increasingly isolated from environmental hazards.

Jan 1, 1992

By Robert Snow, Yingxue Yu, Howard Hanson, Patrick Zhang

One of the major current efforts by the Florida phosphate industry to reduce deep aquifer water consumption is to use 100% recycle water for flotation. This measure alone could save billions of gallons of deep well water annually. However, this also results in higher suspended solids (slimes) in flotation water, causing poor process performance particularly for amine flotation. Polymers could play a major role in allowing the industry to use high-turbidity recycle water for amine flotation without compromising its impact on the Florida economy. The enhancement of rougher flotation by polymers may also have potential. Most importantly, dramatic efficiency improvement may be realized by floating silica first. Adding polymer to flotation feed and/or water is perhaps the most economically viable way of reversing the Crago "double float" process, in order to reduce operating costs and increase phosphate recovery. This paper presents both laboratory and pilot flotation data showing the effect of different polymers on collector dosage and flotation recovery. There appeared to be an optimal range of polymer concentration beyond which the benefits do not offset the drop in phosphate recovery. The effect of poly mer is slime-level dependent. Pilot testing data show that the "Reverse Crago" process (floating silica first followed by phosphate flotation) can outperform the Crago process.

Jan 1, 1999

By J. S. Long

A finite-difference model using a digital computer was constructed to assist in the water management of a proposed oil-shale mining operation in the Piceance Basin in Colorado. The presence of ground water is both a detriment and a benefit for development of the resource. On one hand, dewatering is required because permeable zones are present in and above the oil-shale sequence, and rich oil shale at the proposed mine is as much as 457 m (1500 ft) below the water table. On the other hand, ground water is the most feasible source of water for processing the oil shale. A ground- water model was constructed to simulate the development of an environmentally acceptable water-management system that will satisfy both the mine-dewatering requirements and the water-supply requirements for processing. The ground-water model discussed in this chapter was constructed for the Rio Blanco Oil Shale Co. (RBOSC) by International Engineering Co., Inc., a subsidiary of Morrison-Knudsen Co. The model was applied to evaluate dewatering and water control systems for several open-pit mining plans initially investigated to develop Federal Lease Tract C-a. A collateral application of the model analyses was to project effects of the proposed dewatering operation on the regional ground-water regime in connection with a permit acquisition program by RBOSC. Subsequently, RBOSC has completely changed its mine development plan and has adopted modeling and related techniques more suitable for study of that plan and dewatering operation. The authors of this chapter are solely responsible for the contents and conclusions.

Jan 1, 1979

By V. E. Suter

Anyone with geothermal experience can readily attest that geothermal operations are a natural extension of oil and gas operations. A geothermal company and an oil company need the same type of people to do the same kind of work. In the geothermal industry, geologists and geophysicists define prospects through surface geology, analysis of surface seeps, magnetics, gravity, and resistivity surveys - techniques similar to those used in the petroleum industry. In addition, shallow (250-ft) temperature gradient holes often are used in geothermal operations. Landmen take geothermal leases that are patterned after oil and gas leases. Exploratory drilling is done with the same drilling contractors and same drilling rigs, with minor modification. Drilling foremen and drilling engineers share the same objective of making the most hole, in the shortest time, at the least cost, with a proper completion. Petroleum engineers test the wells, design the completions, determine the reserves, make economic calculations, work with the tax assessor, and manage the reservoirs. Production engineers build roads, locations and pipelines, install gas/liquid separators and meters, and operate production and injection facilities. A contract to sell steam to a public utility is required. Various governmental regulations, permits, environmental concerns, and public affairs pose similar problems in both industries. Also required of both are top management people who are acquainted with geologic risk, prepared to accept million dollar dry holes, willing to bid competitively at lease sales, and able to invest large sums based on a technology not yet fully proven. Successful geothermal development requires in-depth financial ability similar to that required for petroleum development. A high capital investment is required early for leases, geological and geophysical work, and exploratory and confirmation drilling. After

Jan 9, 1980

By I. WILKOMIRSKY, J. BECKER, F. Parada

CORRECTION

Jan 18, 2023

By Peter Kolitsch, Galyn Rippentrop

INTRODUCTION On April 14, 1994, the joint venture of Kiewit Construction Company and Kenny Construction Company was awarded a 76 million dollar contract for the construction of the New Hampshire Avenue Tunnels in Washington D.C. The Notice to Proceed was given on May16, 1994 and scheduled completion is September 1997. This project is one of five contracts for the Mid-City E Line as part of the Washington Metropolitan Area Transit Authority (WMATA)Greenbelt Route. Once completed, the Mid-City E Line subway tunnels will connect service between the U Street-Cardozo and Fort Totten stations (See Figure 1). The New Hampshire Avenue Tunnels project consists of approximately 6800 feet of twin single track subway tunnels, three vertical shafts, associated utility work and comprehensive restoration work. Section E4b involved two methods of tunneling along the project alignment. The first method consisted of the well known soft ground open face shield driven tunnel and the second method consisted of tunnels driven using the New Austrian Tunneling Method (NATM) . The NATM section of twin tunnels begins at the Buchanan Vent Shaft and proceeds approximately 2630 feet under Rock Creek Cemetery, including the Farragut Emergency Access Shaft and connects approximately 390 feet beyond to the existing Fort Totten running tunnels (See Figure 2). Special considerations had to be given to the portion of the tunnel alignment which passed beneath Rock Creek Cemetery. The analyses and subsequent selection of the tunnel support system were based on anticipated geological conditions and the sensitive tunnel alignment. The New Hampshire Avenue Tunnels project was the second soft ground NATM project in Washington D.C. The first, by no coincidence, was completed at the adjacent Fort Totten Station and Running Tunnels Project by Mergentime/Hochtief, AJV. Currently, on a nearby WMATA jobsite, the J.F. Shea Construction Company has started a third NATM soft ground tunnel. Tunnel support systems were studied with respect to three tunneling methods: •A one-pass system consisting of a bolted precast concrete segmental lining •A two-pass system consisting of an unbolted precast concrete segmen

Jan 1, 1997

By T. Stuczynski

In the past ten years about 3000 wastewater treatment plants have been built in Poland. The result of this development has been a massive increase in overall sludge production. According to data supplied by the Ministry of Environmental Protection, 400,000 dry tons of sludge are generated every year in Poland (Koblak-Kalinska 1996). Still it is difficult to estimate the amount of sludge, which is used in agriculture or for reclamation purposes. However, it can be assumed that this comes to no more than 10 percent of all sludge produced in Poland on a yearly basis. Thus it became obvious that an urgent solution to this problem was needed. Local authorities in Silesia realized in the early 90?s that a demonstration was necessary to encourage the proper utilization of sludge. This was the basis for establishing the Biosolids Subpart of the Silesia Project, which addressed the use of biosolids in the reclamation of mining and smelting dumps (Stuczynski et al. 1996). Metal waste sites themselves are known to contain more than 87 million tons of waste (Pistelok et al. 1995). Each year this amount increases by approximately 400,000 tons. We realized that a simple solution for stabilizing these sites would be to cover them with vegetation in order to reduce leaching of toxic elements, as well as to keep metallic fugitive dust from entering the environment. The reclamation of smelter waste sites, which was carried out within the framework of the Silesia Project was a joint effort of local government, industry and international research institutions/agencies, including the US Environmental Protection Agency (EPA), the Center for Research and Control of the Environment (OBIKS), Virginia Polytechnic Institute and IUNG. One of the goals was to evaluate the possibility of adapting the rules of sludge management currently used in the United States to conditions commonly found here in industrial regions of Poland. However, the main objective of the Silesia Project was the development of guidelines concerning all aspects of sludge use for the reclamation of degraded lands and waste sites. Biological aspects related to reclamation of metal waste with the use of biosolids will be discussed in this paper.

Jan 1, 2002

By Ronald J. Vance

One of the key elements of change in the mining industry has been the ever-increasing integration and coordination of previously highly segregated business disciplines, the extent to which the marketing and finance functions have evolved and merged within the mining industry. If one listens to the language of mine product marketers today, one hears terms like contango, backwardation, forwards, options, min/max, synthetics, swaptions, caps, collars, FRA's, spot deferreds, double bottom, head and shoulders. The list is endless and a glossary may be out-of-date even before the ink is dry. No longer can a marketer of mine products get through the day and, more importantly, keep his or her job merely by reciting statistics on supply, demand, prices and the jargon of quotational periods, delivery and payment terms. Walk into the office of any marketing department today, and computer terminals spewing on-line market prices and instantaneous news retrieval command the attention of all who enter. Traditionally, mining companies, particularly those in North America, took a passive view toward marketing their products and an even more passive view toward management of price risk. The typical, albeit simplified, gold producer of the 1970s and early 1980s spent all of its energy exploring, delineating, developing and producing a product that was placed by the mine gate. Like magic, anonymous buyers took it away and left piles of dollars in its place. No fuss, no muss and nothing to get in the way of more exploring, delineating, producing etc. The typical copper producer, meanwhile, was slightly more creative. Copper producers still spent most of their energy exploring, producing etc., but they at least acknowledged the identity of their customers. Many even went so far as to fabricate finished mine products into shapes and sizes that their ultimate customer needed. Wire, cable, sheet and extrusions were all in forms ready to be purchased by power companies, motor manufacturers and telephone companies. But, while production and costs steadily increased, research and development into new expanding markets was funded by little more than lip service. Competitors and competitive products steadily eroded market share and realized prices. The now-famous Business Week magazine cover that proclaimed "The Death of Mining" was an imminent reality.

Jan 1, 1993

By Mark Gershon

This paper describes an application of a new approach to mine planning and production scheduling in a gold mine. The technique, limited to use in open pit mines (but not limited to gold), has been described previously (Gershon, 1987). The-computer program used is the HOPS software, which has been described previously as well (Gershon, 1988). The mine is scheduled for the production of 8,000 blocks out of a mine having 25,000 blocks (50 x 50 x 10). The technique is based on the concept of inverted cones (Gershon, 1987). While it does not provide a true optimization of results, it does approximate the optimal situation. As opposed to most scheduling software that only serves as a computerized notepad for the scheduler, the use of this approach allows for a scheduling intelligence to be built into the software.

Jan 1, 1989