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By W. E. Roscoe

"Mineral exploration properties are those on which an economically viable mineral deposit has not yet been discovered. Such properties are bought, sold, optioned and joint ventured on the basis of their perceived potential for the existence and discovery of a viable mineral deposit. The intrinsic value of an exploration property is therefore based on the exploration potential. One measure of the exploration potential is the amount that can be justified to spend on exploration for a viable deposit.The appraised value method uses a cost approach to value exploration properties. It is based on the premise that an exploration property is worth the meaningful past exploration expenditures plus warranted future costs to test remaining exploration potential. Results of past exploration work are analyzed in order to retain only those past expenditures that are productive in terms of identifying remaining potential. Warranted future costs comprise a reasonable exploration budget to test that potential."

Jan 1, 2002

By William E. Roscoe

"Mineral exploration properties are those on which an economically viable mineral deposit has not yet been discovered. Such properties are bought, sold, optioned and joint ventured on the basis of their perceived potential for the existence and discovery of a viable mineral deposit. The intrinsic value of an exploration property is therefore based on the exploration potential. One measure of the exploration potential is the amount that can be justified to spend on exploration for a viable deposit.The appraised value method uses a cost approach to value exploration properties. It is based on the premise that an exploration property is worth the meaningful past exploration expenditures plus warranted future costs to test remaining exploration potential. Results of past exploration work are analyzed in order to retain only those past expenditures that are productive in terms of identifying remaining potential. Warranted future costs comprise a reasonable exploration budget to test that potential.INTRODUCTIONThe purpose of this paper is to describe a cost approach to the valuation of mineral exploration properties and to provide some valuation examples. The particular cost approach described is the Appraised Value Method, which is best applied to mineral properties at the exploration stage.At present there are no comprehensive regulations or guidelines in Canada which specify what approaches and methods to use for the valuation of mineral properties. In this paper, the Appraised Value Method described is one method that the writer considers to be accepted industry practice for mineral properties at the exploration stage.Mineral properties are valued for a number of reasons, including mergers and acquisitions, non arm's length transactions, pricing of initial public offering of stock, support for property agreements, litigation, expropriation, and insurance claims."

Jan 1, 2003

By R. D. Lawrence

"Comparable transaction analysis is the best known of the market approaches to valuation of exploration-stage mineral properties. The analysis of option and farm-in agreements can also provide useful guidance to valuators. While such approaches can be distorted by incomplete analysis, market-based methods are capable of providing consistent, credible results when carried out carefully with due consideration paid to all factors which buyers and sellers consider when dealing in the real market. IntroductionMineral properties without defined resources present one of the most challenging tasks to the mineral valuator. This paper will concentrate on market-based approaches to valuation of such properties. Other authors at MM2000 presented papers on cost and income approaches. Sorentino (2000) also provides a useful overview with some provacative commentary on methods.Market based-approaches are based on the principle of substitution and include such techniques as: comparable transaction analysis (sometimes referred to as sales comparison analysis); farm-in commitment (or option agreement) analysis; rules-of-thumb; and comparable market value analysis.Are there any valuation standards available to assist the valuator? In Canada there are none that apply to the valuation of mineral assets or securities. This problem is being addressed, at least in part, by the CIMVal Committee of the Canadian Institute of Mining, Metallurgy and Petroleum (CIM)1. Further, the recently established Canadian Association of Mineral Valuators will be giving consideration to the adoption of valuation standards."

Jan 1, 2002

By L. C. Raymond

Valuations in the mineral industry differ from those of other enterprises because mines and oil wells have a definite life so cannot be considered a perpetuity. This requires that in any mineral-property evaluation the recovery of invested capital is necessary during the life of the property. Capital write-offs for nonextractive industries are assumed to be continuously plowed back to sustain the operation and produce yields on the capital invested. The extractive or mineral industry, however, generally attempts to return to the investor both interest and principal during the life of a property. Normally this is done currently and the dividend includes both items. Where the mineral property possesses large reserves and the life factor approximates a perpetuity, the return on investment is generally comparable to that of industrial stocks. The valuation of a mineral property, at best, is based on educated estimates and judgment factors. This is particularly true as it relates to estimating selling prices over a long term or assessing the quality of management. Also, it is possible to make various assumptions as to rapidity of working out the deposit, varying time for start-up of operations, varying earning rates, so as to obtain different results with the same basic facts. Thus it is not surprising that two engineers, irrespective of their abilities, may not agree exactly even when given the same facts, but their results should be close enough to be used in establishing a fair value for trading purposes. The valuation is no better than the source of basic data and the soundness of judgment factors. Fundamentally the basic principles of mineral valuation are similar for base metals, sulfur, oil, or any other mineral. Each mineral, however, requires an engineer to have a knowledge of such factors as its occurrence, distribution, mining and processing methods, and marketing problems in order to gather and analyze all the facts and data that have a bearing on the earning potential of the property. Present Value of a Mineral Property In essence the present value of a mineral property is a sum of money in today's dollars that future income from the property are worth. It differs from the total anticipated earnings by the amount of the interest that the unrecouped investment could be expected to earn during the period of recoupment. Thus, if one could accurately estimate what a mineral property will earn during its life, after deducting all operating, administrative, capital, interest, and tax charges, the determination of present value would be a relatively simple mathematical calculation. Normally, where the expected life of the mineral property extends beyond 20 or 25 years, the discounted value of earnings beyond this period is relatively small. The petroleum industry generally discounts the annual cash flow of an operation rather than earnings since, for tax-saving purposes, earnings are kept

Jan 1, 1976

By William E. Roscoe

"Valuation methods are well established for mineral properties with production or imminent production, and include discounted cash flow and comparable transactions. Valuation methods for non-producing mineral properties, however, are more subjective. Non-producing mineral properties include those at various stages of exploration, properties at the prefeasibility or feasibility stage, properties with currently uneconomic mineral resources, and past-producers. Different valuation methods may be appropriate for different types of mineral properties.Income approach methods such as discounted cash flow and option pricing are generally not applicable to properties at the exploration stage. The market approach is generally appropriate to all types of mineral properties, although it is difficult to find good comparables because of the unique nature of mineral properties and the small number of transactions. Cost approach methods, such as appraised value and geoscience factor, are commonly used for exploration stage properties.Canadian standards and guidelines for valuation of mineral properties are in the process of being finalized by a Special Committee of the Canadian Institute of Mining, Metallurgy and Petroleum (CIMVal Committee). The CIMVal Standards are intended to be consistent with National Instrument 43-101, which sets regulatory standards of disclosure for mineral projects, and with International Valuation Standards. The intent of the CIMVal Standards and Guidelines is that mineral property valuation be carried out by appropriately qualified individuals and that all relevant information be disclosed."

Jan 1, 2003

By William E. Roscoe

"Non-producing mineral properties include those at various stages of exploration, properties at the pre-feasibility or feasibility stage, properties with currently uneconomic mineral resources, and past-producers. The market approach is applicable to all these types of non-producing mineral properties. Income approach methods such as discounted cash flow and option pricing are generally not applicable to properties at the exploration stage, but may be applicable to non-producing mineral properties with defined mineral reserves or mineral resources.The value of a non-producing mineral property depends on its perceived potential for the existence and discovery of an economic mineral deposit. The potential, in turn, depends on a number of factors which must be considered when choosing market comparables. These comparability factors include such items as geology, mineralization, stage of exploration and results, mineral resources, location and geography, and political jurisdiction. The date of the market comparables must be within a reasonable time period of the valuation date of the subject property. Although it is difficult to find good market comparables because of the unique nature of mineral properties and the small number of transactions, these difficulties are compensated for by analyzing a number of transactions on similar properties to develop a range of values for the subject property.For valuation purposes, market comparables can be expressed in terms of total property value, value per unit area (e.g., $ per hectare), or value per unit of metal contained in mineral resources (e.g., $ per ounce of gold, or $ per pound of copper). The market comparable value can be used to estimate the value of the subject property by using the total property value, unit area value or contained metal value."

Jan 1, 2003

By A. A. de Gast, R. B. James

"The metal content of ore blocks can be calculated by the use of many different methods. These methods range in sophistication from manual calculation to computer. oriented techniques. In this case a cubic polynomial regression model is developed to depict the grade distribution of an orebody. Mine production, in stope dimensions, is then simulated on a computer to predict the output of metal content. The volume, grade and variance of the grade are estimated by triple integration and matrix algebra. A case study shows reasonable agreement between the results from the mathematical model and the mine geologists' estimate of production and ore reserve grade and tonnage."

Jan 1, 1972

By Amila Sandaruwan Ratnayake, T. Dilmi. U. Wijewardhana, H. C. S. Subasinghe

The value addition potential of ilmenite was examined using several characterization techniques. Raw ilmenite is composed of 93.65 wt.% of FeOTiO2, 3.55 wt.% of SiO2, 1.22 wt.% of Al2O3, and the remainder being other minor oxides. Ilmenite and powdered carbonized coconut shells were mixed in the weight ratio of 4:1. A separate fraction of the same mixture was added with powdered seashells in the weight ratio of 4:1:0.5. Six fractions of each mixture were distinctly milled from 1 to 6 h in a planetary ball mill. XRD spectra (broadened and diminished reflections of ilmenite) and FTIR observations (Ti―O―Cbonding) of milled samples indicate the possible incorporation of carbon into the ilmenite structure. Any clues of an occurrence of new rutile peaks were not observed in XRD spectra of milled samples. Consequently, the carbothermic reduction has not been initiated during mechanical activation. In this case, samples powdered for 6 h in a mill were isothermally annealed for 2 h under normal airflow at temperatures of 800 °C, 1000 °C, and 1200 °C, respectively. According to the X-ray diffractograms, the annealing temperatures of 1000 °C and 1200 °C exhibited almost similar trends with rutile (R), pseudobrookite (PB) and elemental iron (F), and a very few ilmenite (I) peaks. Consequently, 6 h of milling and 1000 °C annealing were concluded as the optimum conditions for the carbothermic reduction. Moreover, this study indicated seashells as a potential rate raiser for the carbothermic reduction of ilmenite at 800 °C. Therefore, this process is applicable to upgrade ilmenite into a mixture of synthetic rutile and elemental iron.

Mar 29, 2021

By M. H. Moys, J. A. Finch, A. R. Laplante

"A detailed review of ball milling circuit control practices in industry has been carried out. Based on fundamental process performance objectives, a standard system for base-level control of most ball mill installations is presented. This system is simple, inexpensive, and provides the major economic benefits available from contemporary automatic control technology.Value Analysis of Grinding OperationsValue analysis (or engineering, or management), originally developed by Lawrence D. Miles of the General Electric Company (1), focuses on the identification of value (product or process worth versus cost) and provides a systematic procedure for its improvement. A recent research and development project involving the application of the principles of value engineering to grinding operations has provided a basic technoeconomic model of grinding processes (2). The functional objectives of the ball milling process and the means to achieve value based grinding circuit control originate from this study.The Need for Grinding Circuit ControlThe economic effectiveness of a process is determined by the quality or value of the product and the related processing costs. If the inputs (both the raw feed and the applied processing work) are absolutely constant, the product characteristics and the process efficiency will be determined only by the engineering design. The need for and degree of process control is therefore determined by the nature of variations or upsets in the process inputs, and the extent to which these effect product value and operating costs."

Jan 1, 1988

By Orica

Unlicking the Possibilities ISEE Digital Detonator Workshop New Orleans, LA Wednesday, February 4, 2004

Jan 1, 2004

By C. Lumley

The management of the Anglo Platinum (AP) mining technical systems (MTS) embarked upon a process of defining the strategy for the MTS department. The newly established department forms part of the greater Group Information Technology (IT). The strategic process took place within an environment that had witnessed a dramatic proliferation of IT implementations across the group within the last three years. The IT department has been structured in terms of the classical plan, build and run functions with the applications and integration streams running perpendicular across these three functions. The application stream is divided into commercial and mining technical systems with business systems integration the third stream. The mining technical systems department supports mine management to effectively gather, analyse and disseminate data relating to the ore reserve by integrating a number of strategically selected IT applications to ensure that the safety, legal and operational requirements are met. This service to business is rendered by management of a strategic outsource partner via tightly controlled service level agreements (SLAs). The framework used for creating a mining technical systems department that is empowered to add value to business was formulated using the AP value chain as both the starting point and guiding process to ensure alignment to the greater internal strategy of the business. Keywords: Platinum, Mine planning, Mining technical systems, Value chain.

Jan 1, 2003

By P. J. Le Roux

"Mining companies are under constant pressure to reduce their cost structures to sustain profitability. In mines using an open stoping mining method, dilution often has a significant effect on profitability. At Target mine in South Africa, dilution in some open stopes was found to exceed 10%, falls of ground being a major contributor to the problem. This dilution can reduce the recovered grade from 5.5 to 4.5 g/t, resulting in a potential loss of about R21 million per month based on a gold price of R240 000 per kilogram. In addition to the cost of dilution, the cost of damage to, or loss of, trackless equipment as a direct result of falls of ground in open stopes is significant. Other associated costs include transport, hoisting, secondary blasting, milling, and plant treatment of waste material. Stable open stopes are essential in order to reduce falls of ground. Back-analyses of stope instability at Target mine have indicated that conventional rock mass failure criteria are unsuitable for stope design. An alternative strain-based criterion has been developed, and has proved to be very successful, allowing the stability of open stopes to be calculated reliably. Since its implementation in 2010, dilution and equipment damage have decreased markedly, creating value for the mine. IntroductionMines that make use of an open stoping mining method aim to extract only the ore, leaving the waste behind. Many orebodies have well-defined boundaries between the ore and the waste rock. In such orebodies, the introduction of waste into the ore due to overbreak dilutes the grade. In massive disseminated orebodies, dilution is less problematic. Overblasting, falls of ground, or other causes may result in dilution. A study undertaken in Canada (Pakalnis et al., 1995) found that approximately 51% of all underground metal mines utilized open stoping mining methods and, from surveys conducted at these mines, open stoping operations experienced dilutions of up to 20%, and occasionally more. Dilution of this magnitude has a significant economic impact on any mining venture. Research carried out in Australia by Capes (2009) came to the same conclusion."

Jan 1, 2017

By Juan Camus

To understand why some companies excel in creating value, Jim Collins (2001) and a group of postgraduate business students engaged in a comprehensive, five-year research project. They examined 1,435 U.S. companies for more than 40 years, seeking those that made significant improvements in their financial performance over time. The distinctive pattern sought was: ?Fifteen-year cumulative stock returns at or below the general stock market, punctuated by a transition point, then cumulative returns at least three times the market over the next 15 years. ?The search identified 11 outperforming companies, all in different industries, that were called the ?good to great? companies. To contrast these companies with similar peers within the same industry, the search also selected a group of comparison companies that failed to make the leap from good to great. Collins then set out to examine the transition point. What distinguishing features did the good-to-great companies have that their industry counterparts did not? At the heart of the findings about these outstanding companies is what Collins refers to as the ?hedgehog concept? ? how to find the one big thing that the company must focus on. According to Collins, those who built the good-to-great companies were, to one degree or another, hedgehogs. Those who led the comparison companies tended to be foxes, never gaining the clarifying advantage of a hedgehog concept, being instead scattered, diffused and inconsistent. This insight is complemented by Peter Drucker (2004), an influential management guru, who asserts that the first question an effective executive should ask is: ?what needs to be done?? Asking this question and taking it seriously, he asserts, is crucial for managerial success; and that the answer almost always has more than one urgent task, but the effective leader only concentrates on one task. In this last respect, Drucker emphasizes: ?If they [executives] are among the sizeable minority who work best with a change of pace in the working day, they pick two tasks. I have never encountered an executive who is effective while tackling more than two tasks at a time.?

Jan 1, 2011

By J. M. Garcia

This paper highlights several management practices from the oil and gas industry to support the proposition that financial performance in the finite, non-renewable resource business relates more to upstream rather than downstream activities. Based on the analysis of nine oil and gas companies, this study supports a previous study involving fourteen mining companies that showed reserves growth is one of the main levers of value creation in mining. Interestingly, this study also finds that the oil and gas industry has been historically more profitable than mining. The reason, it is argued, is that oil and gas companies count on management practices that focus primarily on the upstream segments of the business, compared to the traditional downstream focus of mining. This paper delves into these ideas to conclude that what mining may need to improve its competitive advantage is a new organizational framework. Another conclusion is that the upstream management focus is vital not only for strategy formulation in the resource business, but also for policy formulation in economies based on the export of finite, non-renewable resources.

Jan 1, 2011

The OptiPit® software program is developed based on expertise gained at the Colorado School of Mines (CSM) using Mixed Integer Linear Programming (MILP) techniques. This program has been developed to satisfy the need in the mining industry for a multi-time period schedule and cutoff grade optimization tool that handles large scale open pit and underground mining operations involving many dumps, stockpiles, complex processing options and blending requirements. The current software (or earlier development versions) has been beta tested and used on various large scale projects within Placer Dome Inc., Newmont Mining Corporation, and Phelps Dodge Corporation since 2003. Through the use of this software, these companies experienced additional value creation by optimizing mine sequences, cutoff grades, material process flows and stockpiles under complex operational and processing constraints. This paper will present simple case study results to demonstrate the power of OptiPit® when used as a cutoff grade optimization tool. Furthermore, the paper will show, by example, how significant the difference in the Net Present Value (NPV) of a given project can be, depending on whether results are obtained by way of cutoff grade optimization using OptiPit®, or by using traditional breakeven cutoff grade approach.

Jan 1, 2007

By M J. Van Der Merwe

The mining industry is facing a serious skills resource shortage, growing commodity demand and cyclical prices. This makes focus and allocation of resources in the early stages of project development very important. To assist with these six key elements in the project prioritization process is proposed, namely: 1) Define the project vision, objectives and business case, 2) Determine the potential show stoppers, 3) Determine the key value drivers, 4) Track changes and provide regular feedback, 5) Evaluate the alternatives and, 6) Ensure proper gate management governance at the decision point. Incorporating these elements in the project development process will assist in resource allocation and focus on the high value aspects of projects and alternatives during the early stages of the project development lifecycle. Keywords: Resource allocation and focus, vision, show stoppers, value drivers, project prioritization, linear programming, business case modelling, management decision.

Jan 1, 2008

By Elizabeth M. Smith

The kcICON design-build project in Kansas City, Missouri includes widening the existing roadway, improving interchanges and grade separation bridges, and replacing the Missouri River Bridge. The Missouri Department of Transportation (MoDOT) typically utilizes steel H-piles and steel pipe piles as driven pile support for bridges. After bidding the kcICON project, the cost of steel rose significantly and the design-build contractor used an innovative approach to reduce foundation costs without significantly affecting the project schedule. The kcICON team conducted a value engineering evaluation of alternative foundation types for use at four grade separation structures. The result of the value engineering evaluation was selection of precast, pre-stressed concrete (PPC) piles as the preferred foundation alternative. Terracon developed a test program to evaluate the performance, capacity, and suitability of PPC piles at the site using a PDA and CAPWAP analyses. This paper presents the value engineering design, rationale for selection of PPC piles, results of the pile test program, and findings during production pile driving. The collaborative approach to the project by MoDOT and the kcICON team, combined with testing and a site-specific design approach, resulted in substantial savings for the design-build contractor.

Jan 1, 2009

By Derek Egbert, Kevin Baumgartner, Howard Perko

Foundation designs in a bid-build business environment can be challenging as so much depends on the capabilities of the selected contractor.  Owners and governing agencies must be open to value engineering (VE) alternatives.  This paper presents a case history where a foundation VE design was prepared for a county bridge replacement. The existing structure was a two-lane, simply-supported, truss bridge approximately 270 ft long and 30 ft wide.  The new bridge is a three-lane, two-span, continuous steel plate girder bridge approximately 250 ft long and 49 ft wide.  The new bridge was to be founded on two end abutments and one center pier by a total of 173 micropiles. Due to the number of micropiles and the time requirement to install a single micropile, an alternative design was proposed utilizing driven steel piles for support of the abutments and rock-socketed drilled shafts for the center pier. Replacing the micropiles with the proposed alternative was intended to reduce overall construction time and cost. Shallow bedrock and soil scour presented unique challenges for the bridge foundation and required an in-depth investigation to determine the required depth of foundation elements to achieve pile toe fixity. It was determined the sand layer thickness was not sufficient in some places to provide fixity to the VE driven piles and therefore the east abutment had to remain the original micropile design.  Substitution of driven pile and rock-socketed drilled shafts in the other areas still resulted in both time and cost savings.  This case history shows how engineers, contractors, owners, and governing officials can collaborate collectively to develop effective foundation solutions. Keywords: micropile, driven pile, drilled shaft, abutment, center pier        

Oct 7, 2024

By Shahid Islam, Lucian Bogdan

Deep and large diameter drilled shafts use mostly bundles of Grade 60 (415 MPa) reinforcing bars as longitudinal reinforcement with rebar splices to make it longer. Lower Grade steel requires large number of bars which result in rebar congestion and difficulty in placing concrete. This leads to increased labor cost for fabrication and installation. By utilizing larger size and higher strength threadbar, the congestion of rebar can be reduced significantly and bundling of bars can be avoided. The lap splices are replaced with simple threaded couplers and end hooks are replaced with end terminators. Threadbar conforms to ASTM A615-15 and can be epoxy coated if required for corrosion protection. This paper describes an attractive value engineering of replacing Grade 60 (415 MPa) bundle of rebars with larger diameter Grade 75 (515 MPa), Grade 80 (550 MPa) and Grade 100 (690 MPa) threaded bars and threaded couplers in some specific drilled shaft projects in the USA. INTRODUCTION A drilled shaft which may also be referred to as drilled piers, caissons, cast-in-drilled-hole piles and bored piles is the key element to the foundation of massive structure. They are used for tall buildings, bridges and foundations for other applications such as retaining walls, sound walls, signs, or high mast lighting. Drilled shaft foundations are typically 3 to 12 feet (0.9m to 3.7m) in diameter cast-in-place deep foundation elements constructed in a drilled hole that is stabilized to allow controlled placement of reinforcing steel and concrete. Drilled shafts for transportation structures are commonly used to depths of up to 200 ft (61m) in the USA. Drilled shafts can be installed in a variety of soil and rock profiles, and are most efficiently utilized where a strong bearing layer is present. The reinforcing cage is typically lowered into position within the hole and then concrete placed through the center of the shaft, flowing from bottom to top through the reinforcement to fill the hole.

Jan 1, 2018

By Peter Faust, Jeremy Zorne, Timothy Siegel, Diane Fiorelli

Professional sport venue construction follows a very simple rule. Once the decision has been made to move the team to a new place, construction shall begin immediately, so that not more than one or two seasons pass by stuck in the old home. Such tight construction schedules require a different approach than traditional design-bid-build contracts. Design is mostly done on the fly, the construction schedule becomes a main risk factor and an early contractor involvement is desired. As specialty contractors become more and more sophisticated, owners, their construction managers or the general contractor have realized the value of ideas and modern technology they can bring to the table for a successful and fast project completion. Local knowledge and experience in a variety of solutions play a key role in the specialty contractor’s ability to provide added value to the project. This is also true for the specialty foundation contractor, who needs to understand the complexity of such modern structures from its integrate foundation, over the delicate concrete structure to a potentially fancy movable stadium roof. Not to mention all the modern high tech equipment which shall make such a place a great customer experience. His expertise shall enable him to propose the most suitable foundation element for the given ground condition and application. Rather to build what others have designed, his strength is to propose alternate concepts which will be faster and (hopefully) more cost effective. This paper highlights different value engineering (VE) input a specialty foundation contractor had on 3 major sports arena projects in California. Together with the entire team from owner to GC, including the Geotechnical (GEOR) and the Structural Engineer of Record (SEOR), the most efficient and best performing foundation solution can be found every time. But such an approach also requires the open mind of the owner to entertain last minute changes when the permit drawing set has already been submitted for approval.

Jan 1, 2018