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By Michael Samis

The real option valuation method is often presented as an alternative to the conventional discounted cash flow (DCF) approach because it is able to recognize additional project value due to the presence of management flexibility. However, these two valuation methods can be separated on a more fundamental level by their differences in risk discounting. Real option valuation applies the risk-adjustment to the source of uncertainty in the cash flow while the DCF method adjusts for risk at the aggregate level of net cash flow. This seemingly small difference is the reason why the real option method is able to differentiate between projects according to each project?s unique risk characteristics while the conventional DCF approach cannot. This paper provides an overview of the real options and DCF valuation frameworks and discusses the differences in risk discounting that exist between the two methods. Using grade-school mathematics, this paper clearly demonstrates how, with real options, a unique project risk discount can be calculated which is directly linked to the project?s unique risk profile. It also highlights why the DCF method fails in this regard and shows why a call to ?increase the Risk-Adjusted Discount Rate? is an incomplete solution at best. Finally, a heap-leach project and satellite reserve development project are valued with both techniques and the difference in investment conclusions is explained in terms of the risk-discounting concepts discussed here.

May 1, 2003

By David Burgess

Natural gas is a general term applied to the gas obtained from oil or gas wells. It is the most widely used of all gaseous fuels. The principal disadvantage in the use of this and other gaseous fuels is the difficulty encountered in the storage and transportation of large quantities in the gas state. Handling in the liquid state is possible, but reduced temperatures are required since methane (table 1) is the principal component of most natural gases that are used as fuels. Actually, liquid storage has been utilized both here and abroad;3 however, the Cleveland disaster4 has pointed out the need for a critical evaluation of the hazards involved in the storage of this cryogenic fuel. Accordingly, a program was undertaken to obtain basic data that could be used to assess these hazards. In this report, the factors to be considered in an evaluation of the fire and explosion hazards associated with any fuel are each discussed briefly. These factors are then used to assist in the design of experiments for the evaluation of the hazards associated with liquefied natural gas (LNG) relative to those associated with other common fuels. Experiments have been conducted on the vaporization of LNG, the mixing of LNG vapors with air, the effect of temperature and nitrogen dilution on the limits of flammability of methane in air, the burning rates of LNG and other fuels, flame radiation, and extinguishment of fires above liquid pools. Based on the results of these experiments, LNG can be stored safely in suitably designed above-ground tanks surrounded by earthen dikes in much the same manner as gasoline.

Jan 1, 1962

By D. D. Macdonald, G. Engelhardt

The accumulation of damage due to localized corrosion [pitting, stress corrosion cracking (SCC), corrosion fatigue (CF), crevice corrosion (CC), and erosion-corrosion (EC)] in complex industrial systems, such as power plants, refineries, desalination systems, etc., poses a threat to continued safe and economic operation, primarily because of the sudden, catastrophic nature of the resulting failures. Of particular interest in managing these forms of damage is the development of robust algorithms that can be used to predict the integrated damage as a function of time and as a function of the operating conditions of the system. Because complex systems of the same design rapidly become unique, due to differences in operating histories, and because failures are rare events, there is generally insufficient data on any given system to derive reliable empirical models that capture the impact of all (or even some) of the important independent variables. Accordingly, empirical models have generally failed to provide a robust basis for predicting the accumulation of corrosion damage in complex systems under realistic operating conditions. The alternative prediction philosophy is determinism, in which the development of damage is described in terms of valid, physico-electrochemical mechanisms with the output being constrained by the natural laws. The differential damage is then integrated along the corrosion evolutionary path for the system (i.e., over the future operating "history") to yield the desired integrated damage, which is the quantity that is most useful to an operator. In this paper, we review the theory of predicting corrosion damage within the framework of Damage Function Analysis (DFA), with particular emphasis on the pitting of aluminum in chloride solutions and on the accumulation of damage from SCC in Type 304 SS components in the primary coolant circuits of Boiling Water (Nuclear) Reactors (BWRs). These cases have been selected to illustrate the various phases through which localized corrosion damage occurs.

Jan 1, 2005

An accelerated and coordinated program of coal research is believed by many to be a necessary step in assuring coal's proper position in the expanding energy market. The President's Advisory Committee on Energy Supplies and Resources Policy, for example, made the following recommendation: We recognize that coal is a great national asset and endorse a cooperative study to determine what research and development could be undertaken. The coal industry and both Federal and State Governments should participate in this study and its costs. Representatives of the coal industry have agreed that such a study should be initiated. Accordingly, Felix E. Wormser, Assistant Secretary - Mineral Resources, United States Department of the Interior, requested the Bureau of Mines and Bituminous Coal Research, Inc., to conduct a survey of current research on bituminous coal. In addition to this survey, studies were made to determine research projects that would be of value to the coal industry.

Jan 1, 1956

By Francois E. Heuze

This paper summarizes the geomechanics programs conducted in two hard rock underground mining operations in the Western United States, between 1966 and 1981. The two projects were directed towards understanding the behavior of the rock masses, at the scale of the caverns. To this end, the emphasis was put on large scale field measurements, complemented by limited laboratory testing. The results of these observations were used to build realistic finite element models of the underground chambers. In the marble mine, at Crestmore, California, the models were applied to the structural optimization of the room-and-pillar pattern. In the granite mining, at Climax, Nevada Test Site, the models explained some unusual stress changes observed during excavation. Based on the large number of geomechanical techniques employed, specific conclusions and recommendations are offered regarding the quality, applicability, and usefulness of the various methods. The two case histories clearly indicate chat numerical models are extremely useful for a detailed understanding of the structural behavior of mine openings. To be realistic, these models must be based first and foremost on large scale field observations. The lessons Learned on these two projects also are directly applicable to the design and analysis of nuclear waste repositories in hard rocks such as basalt, granite, and welded tuff.

Jan 1, 1982

By H. D. B. Wilson, D. T. Anderson

"Canadian sulphide deposits generally have characteristic compositions. Metal associations in ore deposits and in igneous rocks are similar.Nickel: sulphur ratios, copper-nickel ratios, and nickel :cobalt ratios in copper-nickel sulphide ores are characteristic for most orebodies. Nickel, as sulphide, is highest in ores associated with ultrabasic rocks, whereas copper is highest in ores associated with gabbros. Cobalt is relatively constant. The metal ratios in copper-nickel ores are due, first, to the composition of the related igneous rock or magma; second, to the partition ratios of the metals into the sulphides when separating from the silicate rock or magma; and third, to the conditions at the time of deposition. Each factor is discussed and the evidence indicates the Frood orebody is a magmatic segregation in place and Falconbridge is an injected sulphide melt. Many Canadian orebodies containing copper, zinc, or lead also have relatively constant compositions. •Copper and zinc are concentrated in gabbro and diorite, and copper-zinc ores in northwestern Quebec are spatially related to gabbros and diorites. The same three factors con-trolling metal ratios in. copper-nickel deposits should control the metal ratios in copper-zinc deposits if the metals come from the gabbro-diorite intrusions.The ratios of base metals in common sedimentary rocks are not similar to the ratios in orebodies. Base metal elements are mobilized during high-grade metamorphism, but much fundamental research is needed before the relation between metamorphism and ore deposits can be established on a sound basis. The distribution of elements in sulphide orebodies suggests that cop-per, zinc, and lead are deposited simultaneously .in relatively constant proportions rather than successively in a paragenetic sequence. Zoning may be due to different ratios of metals being deposited under changing temperature, pressure, and chemical environment, or may be the result of other processes."

Jan 1, 1959

By Harold J. Schock

This paper describes an experimental method for the monitoring of diesel-generated exhaust gas pollutants in a dead-ended drift for the purpose of assessing the effect of control approaches. Experiments were conducted to determine the relative merits of these ventilation configurations: no auxiliary ventilation, induction ventilation at the entrance to the drift, and ventilation of the dead-ended drift with positive displacement tubing. The drift used in this experimental work was approximately 105 ft. (32.0 mf long and slightly downsloping, with an average height and width of 8 ft. (2.4 m) and 28 ft. (8.5 m1 , respectively. The data were gathered for assessing these ventilation methods and for gathering data to support a computer model of the dispersion and mixing processes. For this drift, it was found that ventilation with positive displacement tubing provided the best removal of diesel-generated pollutants. Induction ventilation appeared to be the least effective of the three methods examined. A comparison was also made between personal monitoring and area monitoring. Results of this analysis showed that in regions of high concentration gradients, it was not possible to get good agreement between point sampling and personal monitoring. In well-mixed areas, good agreement between the two methods of monitoring was obtained.

Jan 1, 1980

By Ann G. Kim

Hydrocarbon gases, primarily methane but also the C2 through C5 paraffins, the C2 and C3 olefins and possibly the C4 and C5 olefins, are byproducts of coal formation. Although it is generally believed that coal formation occurred at temperatures below 200° C, most experimental work on gas formation from coal has been performed at temperatures between 200° and 1,000°C. The objective of this Bureau of Mines experiment was to determine if observable changes in the gases from coal could be produced at temperatures below 200° C in relatively short periods of time. The experiment involved heating coal samples from six coalbeds at constant temperatures and analyzing evolved gases. The composition of the gases at three temperatures was compared. At 35° C, over 99 pct of the gas is methane; at 125° and 150°, methane constitutes approximately half of the hydrocarbon gas. Isobutane and pentane are the predominant higher hydrocarbons at temperatures between 100° and 150° C.

Jan 1, 1974

By D. R. Tweeton

The U.S. Bureau of Mines has developed tomographic computer programs for geophysical applications and is distributing them as part of a Bureau plan to facilitate the transfer of technology to potential users. These programs were developed for predicting and monitoring the flow pattern of leach solution during in situ mining. The Bureau has also applied them to assessing high-wall blast damage and examining the integrity of mine-related geological structures. This report describes the curved ray program BOMCMTR (Bureau of Mines curved ray tomographic reconstruction), tells how to run it, and gives examples with synthetic and field data. BOMCRATR provides optional mathematical constraints to counteract the nonuniqueness of tomographic reconstructions with crosshole data. These constraints include limiting the maximum and minimum velocities, fixing the velocity at any point to any value, and establishing layers in which velocity does not vary with horizontal position. The user can test for nonuniqueness by varying the initial velocity pattern, The program can perform either curved or straight ray analysis. Ray paths are calculated analytically in triangular pixels, which is faster than incremental numerical approximations,

Jan 1, 2010

By Robert M. Becker

Part 5, the last of this series, deals with the theoretical confirmation and application of results developed in parts 1 and 2. The bulk-sampling variances of Hassialis and Kassel and Guy are compared with those in part 2, both as to formulation and as applied to ores and coal. The results provide confirmation for much of the development in part 2. Examples are presented for determining the reliability of bulk samples with respect to various measurable characteristics. These characteristics include, for example, assays for elements or compounds and particle surface area. The bulk samples considered consist either of a given weight, a given volume, or a given number of particles. In addition to problems of sample reliability, some of these examples may also be applicable to quality control. Several possible applications of results developed in parts 1 and 2 are outlined. These include tests for random data, degree-of-mixing indices, and particle-fineness indices.

Jan 1, 1966

By R. Lasmanis

"Washington State's diverse geological setting is reflected by its several types of porphyry Cu-Mo deposits. All are associated with calc-alkaline intrusions, and they range in age from Jurassic to Miocene.The largest is the Mount Tolman Mo-Cu deposit located in the Omineca Belt. It contains 2.18 billion tonnes of material averaging 0.093% MoS2 and 0.09% Cu. There are intermediate-size Mesozoic deposits in the Intermontane Belt. The Cascade volcanic arc hosts small- to medium-Tertiary deposits. Among these, of particular interest is the Sunrise breccia pipe, which has been explored over a vertical distance of 1000 m. It contains reserves of 64.6 million tonnes averaging 0.319% Cu and 0.071% MoS2 with significant tungsten values. The Glacier Peak deposits have potential resources of 1.7 billion tonnes averaging 0.334% Cu and more than 0.015% MoS2 and also contain tungsten. The Margaret deposit can be classified as a porphyry Cu-Au type; it has reserves of 200 million tonnes averaging 0.434% Cu, 0.0175% MoS2> 0.27 g!t Au and 1.92 g!t Ag. Drill intercepts of the North Fork deposit also show significant gold values.Mineralization and hydrothermal alteration of these deposits are typical of porphyry deposits, although some differences can be noted. The Mount Tolman molybdenum deposit contains topaz alteration zones and is transitional between a plutonic type and a Climax-type molybdenum system. Other deposits, such as the Kelsey, Mazama, North Fork, and Margaret, are low-sulphide systems that contain significant amounts of magnetite."

Jan 1, 1995

By Daniel Harrington

On the night of June 8, 1917, the flame of a carbide lamp accidentally set fire to the uncovered and frayed insulation of an armored power cable near the 2,400-foot level of the North Butte Mining CO.'s Granite Mountain shaft. How this, insulation accidentally became exposed is explained on page 15. The highly flammable oiled fabric set fire to the shaft timbers, and as this is a downcast shaft the fire spread with great rapidity, soon filling the mine workings with smoke and gas. At the time 410 men were working underground, 247 of whom escaped by various means, but most of the 163 remaining were probably overcome soon after the fire started, and perished. Only two men were actually burned. The cause of the disaster was purely accidental. The immediate effect was the unexpected reversal of normal conditions; the ultimate effect was great loss of life and the destruction of the main hoisting shaft, putting it temporarily out of service. The work of rescue and fire fighting continued eight days. The following pages present an attempt to draw some practical conclusions and suggestions from this disaster. The property of the North Butte Mining Co. consists of about 220 acres in the northeastern part of the Butte district, Montana. Next to the Anaconda Copper Mining Co. it is the largest producer of the district. In 1916, the year before the disaster, there were 1,160 men employed. The output was 560,947 tons of ore, which yielded 24,498,181 pounds of copper, 1,047,063 ounces of silver, 1,712 ounces of gold, and 412,953 pounds of zinc. The profit was $2,479,595. The total development work for that year was 21,694 feet. During the first half of 1917, the year of the accident, the daily tonnage of ore averaged 2,000, an increase of 400 tons over that of the year 1916.

Jan 1, 1922

By Kuniaki Murase, Tetsuji Hirato, Koji Nitta, Yasuhiro Awakura

"The redox behavior of copper species in an ""ammonium imide"" room temperature molten salt was examined in order to clarify the applicability of the salt to the electroplating media of various metals. Trimethyl-n-hexylammonium bis(trifluoromethanesulfonyl)- amide (TMHA-Tf2N), having an electrochemical window of 5.6 V (50 °C), and corresponding copper(II) salt were synthesized. In TMHA-Tf2N media monovalent copper ion, Cu(I), was stable and Cu metal was oxidized, or corroded, in the presence of Cu(II) species. Cathodic electrodeposition of copper metal and anodic dissolution of it were, thus, one-electron reaction and their current efficiencies were almost 100%.IntroductionElectrodeposition of metals from aqueous solutions is an important soft process for manufacturing thin-film materials, surface finishing, and extractive metallurgy. However, the electrodeposition of base metals, such as zinc, chromium, and nickel, from aqueous media inevitably accompanies hydrogen evolution, which lowers the cathodic current efficiency of metal deposition. Since the electrodeposition of aluminium, titanium, and rare earths from aqueous media is actually impossible due to their largely negative redox potentials, nonaqueous media such as aprotic organic solvent and high-temperature molten salts have been employed for the electrodeposition of these metals. Room temperature molten salts (RTMS),1, 2) or room temperature ionic liquids, have also been developed as a promising electrolytes for the electrodeposition of base metals. In this field, chloroaluminates of alkylpyridinium or alkylimidazolium cation have been well investigated for aluminium3) or alluminium-alloy4-5) electroplating media. On the other hand, in order to avoid high hygroscopicity arising from the use of aluminium chloride, attempts have been made to combine the alkylimidazolium cations with fluorine-containing hydrophobic anions, e.g. BF4-,6) CF3SO3- (TfO-),7) (CF3SO2)2N- (Tf2N-),8) and H(HF)n-ions,9) and investigated for electrodeposition media.'°) Recently, a new series of RTMS consisting of tetraalkylammonium cations and Tf2N- anion, sometimes abbreviated as TFSI- anion, was found independently by MacFarlane et al.11, 12) and Matsumoto et al. 13) This type of RTMS, which is commonly named ""ammoniumimide"" salt, has a wide electrochemical window of ca. 5 V and, thus, the RTMS seems to be suited for practical application as a solvent for the electrodeposition process. In this paper, we report the electrochemical behavior of copper species in an ammoniumimide RTMS, trimethyl-n-hexylammonium bis(trifluoromethanesulfonyl)amide (TMHA-Tf2N)."

Jan 1, 2000

By Harry K. James

Experimental studies of the physical and explosion characteristics of pure hydrazine nitrate and multicomponent systems containing hydrazine nitrate, supplemented with an extensive Literature survey, are presented. Such proper- ties as melting point, heat of fusion, density, viscosity, surface tension, thermal stability, decomposition process, detonation velocity, impact sensitivity, and TNT equivalence are included.

Jan 1, 1970

By William J. Campbell

This analytical method development and evaluation was undertaken by the Bureau of Mines to provide accurate determinations of eight minor elements in low-alloy steels prepared from ferrous scrap. Fluorescent X-ray spectrography was the principal method investigated. Confirming analyses were made by conventional instrumental and chemical methods. All X-ray data were processed by a timesharing computer. No corrections were found necessary for inter-element effects or overlapping spectral lines. Concentrations were calculated from the least-square fit of a linear calibration equation derived from measurements on three sets of standard steels. These studies show that X-ray spectrographic analysis of lathe-finished surfaces provides accurate determinations of aluminum, copper, chromium, manganese, nickel, phosphorus, silicon, and tin.

Jan 1, 1973

By A. L. Engel

The Bagdad-Chase copper-gold mine south of Ludlow, Calif., was visited by an engineer of the Bureau of Mines in July 1955 to determine the mine's status of activity and to obtain a bulk sample for metallurgical testing. The deposit was discovered in 1903 and has been worked intermittently. It has a production record of about 273,000 tons of ore. The first production of about 150,000 tons was treated in a cyanide plant 2 miles west of Barstow, Calif. The extraction of gold was not satisfactory because of the presence of copper minerals. Since 1910 the ore has been shipped to various smelters in Arizona and California for use as a flux.

Jan 1, 1957

By C. M. Kleemann

The paper describes the present milling practice at Western Mining Corporation Limited's new nickel mine at Kambalda in Western Australia. It details the crushing, autogenous grinding, flotation and spray drying circuits for the production of a nickel concentrate. It also indicates some of the metallurgical problems which have been encountered in concentrating this ore.

Jan 1, 1973

By M Edwards

The paper outlines the successful application of some of the on-belt technologies available from Scantech International Pty Ltd and how these have provided benefits in a number of mining and mineral processing operations. Effective process control requires real time analysis so quality can be fed back to the previous process and fed forward to a subsequent process. A range of on-belt analysers that allows for full stream, continuous, non-contact analysis of conveyed materials is available to achieve this. Real time results can provide timely information for effective process control. Benefits of on-belt analysis systems become more evident once the true variability of material quality and moisture content in conveyed flows is measured. To obtain economies of scale in mineral processing operations large material flows are achieved using conveyors. The cost and effort to sample representatively increases as conveyor flows increase. One sample may represent a few tonnes or up to 10 000 tonnes of material. The turnaround time between sampling and availability of sample analysis data does not allow real time process control. Tonnage flow rate, moisture content and elemental or mineralogical composition are required to perform effective process control of most conveyed streams. Tonnages can be effectively measured using belt weighers. The analyses derived from small samples supplied by conveyor-based sampling systems contain high variability. On-belt, continuous analysers see all the material and, through short term compositing of analyses, supply less variable results. Real time analysis helps operators develop a better understanding of material variability. Analysers can be effectively utilised to improve the consistency of product quality through bulk sorting and blending control. Many existing users of the technologies have gained competitive advantages through their ability to supply a more consistent quality product to the market.

Jan 1, 2008

By W. G. Pariseau

"BACKGROUND The Crandall Canyon Mine (CCM) is located in the Wasatch coal field in central Utah. Extensive longwall mining at CCM preceded a decision to recover coal left in barrier pillars on each side of a set of main entries extending far into the mine. During mining in March, 2007, a major bump occurred that led to cessation of mining in the barrier pillar on the north side of the mains and to begin mining in the south barrier pillar. Subsequent loss of ground control in August, 2007, through coal pillar bursts had tragic consequences with loss of six miners and shortly afterwards three rescue team members. An MSHA report describes the events in detail (MSHA, 2008). An important lesson to be learned from CCM is the need to select a computer program suitable for pillar design. Computer programs are engineering tools; selecting the right tool for the job is essential. In this regard, a minimum program requirement is capability for computing stress distribution within a pillar and adjacent roof and floor strata. The reason is simple: strength of rock is stress dependent; both vary from point to point in pillars and adjacent strata. Preferably, one should follow the evolution of stress as the mining plan is executed from start to finish to assure safety or to warn of a potentially hazardous situation developing as mining progresses. The approach to the problem posed by barrier pillar mining at CCM is conventional in the sense of applying well known finite element modeling techniques to analysis of a proposed mining plan. The engineering purpose is to evaluate the mining plan with respect to ground control questions including roof, floor and pillar safety. Results of previous two dimensional finite element analysis indicated pillar safety was by no means assured (1, 2, 3). Geometry of barrier pillar mining is limited in two-dimensions, for example, crosscuts are not seen in vertical cross sections. While three dimensional analyses are preferred, even moderately sized regions often lead to very large problem sizes that exceed computer capabilities. However, a recent development in finite element modeling of tabular deposits allows for whole mine analysis in three-dimensions. This technique involves a dual node – dual mesh concept. Both have been used separately in much earlier work, but are only now are used in combination. Estimation of subsidence at a kilometer scale and details of stress, strain and displacement about barrier pillars, main entries and pillars, and so on at a meter scale are possible (4). No compromise involving empirical formulas or similar guess work is required. Indeed, all calculations are based on first principles: physical laws, kinematics, and material laws. Effects of joints and in situ variability or uncertainty in strata properties, elastic moduli and strengths, may be included for greater realism. An important objective of the present study is to assess the role of three-dimensional pillar geometry in arriving at conclusions regarding barrier pillar mining versus two-dimensional results."

Jan 1, 2015

By J. E. Xu, J. Y. Zhang, M. Q. Sheng, K. Wan

"SynopsisThe densities of selected CaO-Al2O3-MgO slag systems were measured at 1823K by the Archimedean method. Thirteen different slag compositions were chosen based on different levels of the MgO content and the mass ratio of CaO/Al2O3. The results indicated that the density of the slag decreases with increasing MgO content (from 0–3.78 mass%), but increases with further increases in MgO content up to 11.33 mass%. At a fixed MgO content of 5.5%, the trend of density change with CaO/Al2O3 in the slag is similar to that for changes in MgO content. On the basis of the regular solution approximation rules of excess molar quantities, an attempt was made to estimate the molar volume of the slags investigated. The application of the molar volume model confirmed that the present expanded approximation rules are applicable to predict the molar volumes of the melts discussed.IntroductionDensity is one of the most important fundamental properties of slags, which influences metallurgicaly phenomena in many ways. Density is sensitive to the nature of the chemical bonds and the species in the melt, and is of great importance not only for theoretical research on the structural properties of molten slags, but also for industrial applications. Density is also required to estimate other key properties used to assess the behaviour of high-temperature molten oxides, e.g. viscosity, surface tension, and thermal conductivity.Liquid calcium aluminate slags that contain magnesia are the basis of most ladle slags for secondary refining processes. The CaO-Al2O3 binary phase diagram (Hallstedt , 1990) shows the eutectic composition (50 wt% CaO and wt% Al2O3) has the lowest melting temperature. The main emphasis of this study is on the 12CaO·7Al2O3 refining slag with MgO additions. The CaO-Al2O3-MgO ternary system is of considerable importance in industrial metallurgical processes, and is fundamental to the understanding of metallurgical slags, ceramic materials, and geological phenomena."

Jan 1, 2015