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By H. B. Miller

Contract Incentives have long been employed in the underground hardrock industry as a tool to influence employee performance, enhance productivity, and control labor costs. While traditionally structured to establish a direct correlation between performance and compensation, many contract programs have evolved into elaborate systems that promote strategies often viewed as independent of productivity. This paper presents the findings of research into these contract incentives and was conducted with the cooperation of 33 mines utilizing a spectrum of employee compensation and incentive programs. Emphasis of this analysis focuses on the types of production contracts observed and their role with respect to employee earnings.

Jan 1, 1994

By Don S. McCoy, W. Joseoph Schlitt, Donald B. Swanson

Introduction Contract miners have long played an important role in the minerals industry. Historically, these were individuals who worked as underground miners and were paid by the ton or the day. These hardy types still ply their trade in the industry. However, today the term "contract miner" generally refers to an independent contractor who supplies the people and equipment needed to conduct surface mining operations for an owner or lease holder. At one time or another, contract miners have probably handled virtually every mineral commodity from sand, gravel, and stone quarrying to mining uranium and precious metal ores. In today's market, though, contract mining appears to be concentrated in just a few areas. These include precious metal mines, various types of solid fuel operations, and reclamation of abandoned mines. This article covers market areas, contract mining organizations and services, and their advantages and disadvantages. Gold and silver mines Although exact figures are not available, contract mining represents a significant element in the precious metals segment of US mining. For gold and silver, the growth in contract mining appears to be paralleling the overall growth in mining activity itself. Nevada is the largest gold producer in the US. The latest available data (1985) on open pit gold/ silver mines is summarized in Table 1 (Nevada Division of Mine Inspection, 1986). These figures show that contractors mined nearly half of the ore in 1985. Total tonnage mined, of course, was much higher for both owners and contractors. Assuming an average stripping ratio of 2.5 to 1, the total daily mining rate for the contractors was more than 145 kt (160,000 st). This translates into a contract mining rate of about 36 Mt/a (40 million stpy) based on 250 operating days a year. This approximate 50-50 split between owner and contractor also appears to hold for the future. Metals Economics Group (1987) published a survey of 51 short-range and 54 long-range precious metal projects being considered throughout the US. Contacts with owners, requests for proposals, and past corporate philosophies all suggest that about 55% of the open pit operations scheduled for the near-term will be contract mined. This represents an estimated 26 kt/d (28.5 stpd) of ore. A similar assessment of the long-term projects indicates that about 12 kt/d (13,000 stpd), or just under 50% of the open pit tonnage will be contract mined. There are several reasons why gold and silver represent such an attractive opportunity for contract miners. One is that many properties are owned or leased by individuals or partnerships that are essentially entrepreneurial. Many of these owners or lease holders have minimal mining experience. They must therefore either rely on contract mining organizations, sell an interest in the project to another mining company that will become the operator, or hire an experienced management team. For about the same reason, junior mining companies also represent good prospects for contracting. This is because most junior companies focus on exploration. They would prefer to spend their generally limited funds on drilling programs. Thus, they tend to minimize additional capital requirements by using contract miners or farming out the property to another mining company. Another good reason for using contract miners is the size of the deposit. Many properties are so small that their reserves will not support the capital expenditures

Jan 12, 1987

By W. Joseph Schlitt, Donald B. Swanson

The paper provides an overview of the role that contract mining plays in the minerals industry. Particular emphasis is on contract mining and its place in the development and operation of small to medium sized precious metal mines in the western United States. The paper begins with a discussion of the mining options available to owners. This is followed by a description of contract mining organizations and the services they provide. In addition to various mining activities per se, these can include other processing functions such as crushing and agglomeration, various types of heavy civil construction, other types of technical and administrative support, and even assistance with financing. Typical equipment spreads and unit costs are presented. Final 1 y, the advantages and disadvantages of contract mining are discussed. Liberal use is made of

Jan 1, 1987

Lihir Gold Mine is situated in a dormant volcanic caldera on a small island off PNG. Not æextinctÆ but dormant. Current ground temperatures are up to 150 degrees Celsius with active geysers in the workings of the mine, pools of boiling ground water adjacent to low-grade dumps and hydrogen sulphide gas emissions. It is a unique mining environment by world standards. This paper will deal with the following issues encountered and managed by the operation:blasting in hot and reactive ground; management of sulphide gas emissions; disposal at sea of all mining waste rock; one dear to all Australian minerÆs hearts û dealing with landowner groups; and unusual human resource issues.

Jan 1, 1999

By J. B. Greenwood

The paper point out some reasons why contract mining should not achieve the same success in Latin America as it has in Australia. In this sense, any reasons are: the size of operation, mining industry employees bonus scheme, the privatization of nationalized mining assets, general sales tax and the mining unions. Therefore, great deal depends on the attitude or "mindset" of a company's employees. lt is strongly my view that the attitude with which a contractor approaches a job will give rise to a superior mindset amongst its employees when comparad to those from most mining companies. The value of this cultural difference is significant and should never be underestimated. lmportantly, it doesnot only manifest itself in a more productive workplace: it is invariably the case in Australia that the safety achievements of contract miners are superior to those generally expected from the mining industry at large.

Oct 6, 1999

New Zealand contract mining has been well established for close to 50 years. The opencast industry has grown from mining quantities of less than 1 million bcm per year in the 1950s to around 20 million bcm in the late 1990s. Trends here are following those in other countries with mining companies looking to contract out more of the so called traditional mining work. The key driver behind this trend is not unique to the mining industry, but is simply a matter of concentrating on doing a few things well. In the case of the mining company this has come to mean owning and developing orebodies and where appropriate, marketing mining products, and leaving owning and operating of mining fleets to the contractor. This has the effect of reducing risk to the mining company as well as lowering costs. Both can be achieved without losing control of the key elements of the operation. Optimising performance is simply a matter of identifying the key drivers behind performance, having the right plant and the right people at the right place and providing these people with the information they need to manage the operation.

Jan 1, 1997

With the advent of the resources boom in the late 1960s most of the larger scale resources projects in Australasia were commissioned on an æowner miningÆ basis, where the mine owners owned and operated the primary mining equipment. Then, in the 1980s with the arrival of the gold mining boom in Western Australia and elsewhere, a change occurred û most of the mining activities were carried out on a contract mining basis. Over recent years, however, there has been a marked trend amongst larger Australasian open pit mining operations back towards owner-controlled and operated mining operations. The reasons for this are many and are addressed in the paper, but centre on the concept of the owner being prepared to assume more of the mining risk in exchange for the advantage of not having to pay a contractorÆs profit margin. Where mining contracts are entered into, the older æschedule of ratesÆ format is being replaced with less adversarial and more entrepreneurial contract alternatives involving operating cost and risk sharing in a spirit of æfair dealingÆ. Leasing and maintenance issues have also been influenced in recent years by the advent of more flexible contract arrangements with equipment suppliers. Group purchasing has also had some influence for project operators. For many mine owners, the optimal risk management profile involves a practical offsetting of the assumption of mining risk on the one hand, against the removal of litigation risk and potentially reduced operating costs on the other. Potential pitfalls may arise where equipment size and type requirements vary with time or where manpower management, mining flexibility, job skills or safety exposure factors are relevant. These issues are commented on in the context of some well known examples, and an update is provided on contract mining versus owner operation in large scale Australasian open pit mining generally.

Jan 1, 2002

By Jürg Künzle

The use of the underground space has been a recurring issue in human history, whereas the reasons for building subsurface structures have changed over time. In the decades to come, the world will be marked by a variety of underground projects never before seen. This paper describes a series of characteristic challenges of designing and building underground freight transportation systems, with reference to the example of Cargo sous terrain, a privately funded underground logistics project in Switzerland. It provides an overview of contracting practices that allow these challenges to be addressed with success.

Jun 13, 2021

By B. Kenny

The aim of this paper is to provide an overview of existing forms of subcontracting in the South African mining industry. A descriptive framework is developed to understand different subcontracting arrangements. We argue that, in order to do so, it is important to distinguish between labour broking and gang subcontracting. Data resulting from a research project (including an analysis of historical sources, interviews with contractors and focus group interviews with mineworkers) is presented to highlight the implications of changing formations of subcontracting for the South African mining industry in the late 1990s. Apart from the subcontracting of ?traditional? functions, such as shaft sinking, access development, catering and hostel maintenance, contractors are now used in ?core? mining activities. In some instances, whole shafts are ?outsourced? to outside agencies. It is argued that certain of the subcontracting arrangements have serious implications for the ability of the mining industry to improve health and safety standards. Some of the practices can potentially result in conflict between different categories of workers, and, as a result, instability in the industry.

Jan 1, 1999

"There is no fast way to add more than 6.4 km (4 miles) of track, most of it underground, to the Sound Transit Link Light Rail system in the Seattle, WA area. But increasingly busy traffic through a number of neighborhoods made it necessary. That’s the challenge a joint venture of several tunneling contractors faced when starting its portion of the $1.9-billion Northgate Link Extension in 2013, and the project is still keeping it busy three years later. Completion will mean just a 14-minute ride from Northgate to downtown for an extra 60,000 passengers by 2030. The transit lines will join 57 km (36 miles) of new and under-construction light rail lines running north, east and south from Seattle.Voters tired of long commute times approved the project, a key part of Seattle’s regional mass transit system, in 2008. The extension is part of a plan adopted by the Sound Transit board in 1996 to connect the region’s major activity centers. The Northgate project is meant to relieve one of the area’s most congested traffic areas by connecting the Northgate, Roosevelt and University District neighborhoods to existing routes including downtown Seattle and SeaTac airport.Sound Transit dedicated more than a quarter of the project’s estimated expense — $440 million -— to general contractor JCM Northlink LLC to handle the tunnel segment. JCM is a joint venture formed in 2013 between Jay Dee Contractors of Livonia, MI, Frank Coluccio Construction of Seattle, WA and Michels Corp. of Brownsville, WI. The contractors regularly collaborate on large-scale projects and brought experience working on a different section of the extension they completed in 2013.JCM project leaders knew immediately that the schedule would be demanding. They had to work around the clock six days a week to meet deadlines. The extension runs through highly populated areas, meaning contractors had to follow strict city noise restrictions between 10 p.m. and 7 a.m. Plus, supervisors needed to manage the scheduling of nearly 250 employees to keep work running smoothly.“We had eight different operations and four different subcontractors trying to work in one tunnel,” said Chris Wood, JCM site project superintendent. “It’s important that we keep work linear. That’s the biggest challenge: keeping a path in and out so you can pour concrete, keep electricians and carpenters going, and accomplish everything else.”"

Dec 1, 2016

By Erich J. Jacob, Volker O. Meldner

INTRODUCTION Our company has made persistent efforts to utilize the very latest cost-saving technology in tunnel design and construction. However, we were relatively late in joining the clan of slurry shield tunnelers. The challenge came in 1973, when our company was low bidder on a major sewer tunnel in Hamburg, West Germany. The tunnel was to be driven under the harbor region through coarse and fine sands with up to 60 ft hydrostatic head of water. Outer diameter was 15 ft, and length was 2.9 miles. This contract appeared right to enter the new field of slurry face tunneling. We gathered a design-engineering team to develop the machine, called it "Hydroshield", and used it on the project. The good performance of the prototype machine encouraged us to improve and modify the equipment design. The very latest model is now in use on a subway tunnel in Antwerp, Belgium. This tunnel is 21 ft outer diameter and 2.4 miles in total length. In terms of excavated volume it is the world's largest slurry shield contract. While the drive is still in full swing, we are currently preparing for 3 further Hydroshield applications, with diameters ranging from 12 to 32 ft. This paper describes the Hydroshield's salient design features, operational characteristics, construction reliability and performance levels, as experienced in West Germany and Belgium.

Jan 1, 1979

By Bernard A. Grand, Gary A. Almeraris

This project involves the reconstruction of a 1,100 ft. long by 75 ft. wide segment of an existing 4 to 5 track subway under Northern Boulevard in the Borough of Queens in New York City. The project includes widening the existing subway to permit the construction of new inbound and outbound subway (T1 and T2) ramps adjacent to and under existing operating tracks. The plan of the project is shown in Fig. 1. Existing tall buildings along the job site and a contaminated groundwater plume under an adjacent rail yard required construction of slurry concrete walls along the east and west construction limits. Groundwater cutoff across the north and south construction limits of the subway was achieved by jet grout walls built across the subway invert slab between existing track and third rails. The work involved dewatering the construction site to a depth of about 50 ft. below street grade. This is a four year project and includes extensive work to maintain and protect subway and vehicular traffic of over half a million commuters a day through the work area. The project cost was $160,000,000.

Jan 1, 1999

By William Babcock

Augered, Cast-In-Place (ACIP) piles can be an economical, reliable, versatile foundation system. They have also been a part of projects that were behind schedule and the subject of lawsuits. The ACIP pile is a specialty system that is more workmanship dependent than most deep foundation systems and is especially vulnerable to the problems and abuse of poor specifications and contract language. Many of the original specifications were based on grouting methods, and numerous misconceptions have followed the method. The Deep Foundations Institute (DFI) has been the leader in debunking the mystique that has hovered over the method and attempted to standardize the industry through publication of the manuals describing the method and how it should be inspected. DFI should be applauded for taking the lead and producing a reference document that can be used to educate the specification writers, designers, inspectors, and owners. It must be must appreciated that there have been other organizations that would not acknowledge ACIP piles as a legitimate member of the deep foundation family. Some consultants and designers have gone to the extreme of making it policy to not recommend the method for use. This presentation is one practitioner's view of the causes of problems as they can be traced back to the contractual conditions. It is intended to provide a broader and different perspective than those provided by the technical specialists. It does not necessarily reflect the position of the DFI or any of the organizations associated with the ACIP pile industry. It is intended to further the spirit of partnering on every ACIP pile project, to further the acceptance and promote the use of this unique system, for the benefit of all the parties. It should be recognized, however, that all of the participants can and do play a role in getting a project into trouble. My view is that projects that get into trouble usually have an early flaw that leads the project to the edge, and the project participants blindly follow the original mistake right over the cliff like lemmings. This instinctive reaction may be a survival tactic by going along with the group, because any one party that departs from the program or shows a position of weakness is a candidate for sacrifice.

Jan 1, 1997

By Lukas Erkurt, Wolfgang Holzer, Stefan Auderer, Richard Gradnik

SEM/ NATM Tunnelling contracts in Austria and Germany are usually tendered applying unit price contracts. The purpose of this paper is to show how contractual problems are resolved in these countries. The focus will be put on describing the theoretical approach, several case studies will show how contractual problems were dealt with on site.

Jun 23, 2024

By D. McCarthy

Contract is a PC-based software program designed to satisfy the main features that have been identified to be lacking from cost estimation systems currently in place in the Australian coal industry. Contract was developed in conjunction with an Australian contracting company to refine the existing core structure used by the company for project evaluation. The key feature of Contract is the availability of analysis functions to explore multiple options within a contract project by altering identified variables. The ability to update project files has been incorporated into Contract to ensure that it is user-friendly and relatively simple to use. Lists of mining equipment and consumables are stored in MS ACCESS database files, along with the supplier details for each item. Each time a project is initiated there is a dynamic link to the database files and the most recent current information is retrieved and linked with the project. Contract provides an option to calculate the changes in metre unit cost as a function of the average development cost. Keywords: Contracting, cost estimation, sensitivity analysis.

Jan 1, 2003

Two types of low-sulphidation epithermal mineralisation may be recognised in volcanic terranes. Chalcedonic Silica- Adularia-Illite type mineralisation is most common in rhyolitic terranes, whereas Crystalline Quartz-Illite-(Adularia- Kaolinite) type mineralisation is more typically formed in andesitic terranes. A third type of epithermal mineralisation, the high sulphidation or Vuggy Silica-Alunite- Kaolinite-Illite type, is also common in andesitic terranes. Episodic violent boiling, accompanying hydraulic fracturing and hydrothermal eruptions, characteristic of geothermal systems in rhyolitic terranes, is stressed for the formation of Chalcedonic Silica mineralisation. Such boiling of deeply circulating meteoric groundwater, with some magmatic fluid contribution, provides chalcedonic veining, episodic banding and brecciation textures, adularia stability, bladed calcite, and extreme loss of H2S from the fluid to cause major gold deposition. Crystalline Quartz mineralisation is probably caused by the mixing of shallow acidic groundwater with ascending deep geothermal fluids beneath andesitic strato- volcanoes. The cooling effect, oxidation, and increased acidity, overcomes the dilution effect, and results in quartz deposition, illite (and locally kaolinite) alteration, and precipitation of metals. Extensive formation of base-metal sulphides further enhances gold deposition. Violent boiling is restricted to local structural dilation sites, potentially producing high grade "bonanza" gold mineralisation.

Jan 1, 1991

By M R. Stevens

The Kauri Block (Hauraki Hill) andMatawai Valley epithermal vein systems, near Coromandel township, are hosted by hydrothermally altered Miocene andesites and Mesozoic greywackes of the Coromandel VolcanicZone. The hydrological setting of both geothermal systems was probably that of an andesitic volcanic arc. Two types of veins are recognised: 1. Simple veins composed of fine comb quartz, and 2. Complex (breccia) veins composed of vein fragments of sulphide-bearing, chalcedonic silica cemented by saccharoidal and fine comb quartz.   Pyrite, arsenopyrite, marcasite, and gold form the ore minerals. Both deposits historically exploited hypogene and supergene bonanza gold.   At Hauraki Hill, breccia veins up to 7m wide contain abundant fragments of recrystallised colloform banded-crustiform textured quartz veins ('Golden Cross' style) and were probably major channels for ascending deep mineralising fluids. Alteration assemblages are zoned with the higher elevations of Hauraki Hill-Bunkers Hill characterised by strong kaolinite alteration whereas deeper levels are dominated by illitic clays.   At Matawai, complex veins and hydrothermal breccias pinch and swell, and inflect, within a total width of veining and alteration that exceeds 50 m. The greywacke host rocks are altered to an assemblage of illitesmectite, quartz, chlorite and pyrite although there are pockets of kaolinite.   The proposed genesis of veins and ores in both deposits invokes episodic rapid mixing (quenching) of hot mineralising reservoir fluids with cool acid condensate waters, whilst acidification and increased fO2 triggered gold deposition. These hydrothermal systems heated up during their later stages and at Matawai visible gold was deposited from a late mesothermal stage. The main conclusion is that the northwest CVZ has excellent potential for large gold deposits (= 30 tonnes contained gold).

Jan 1, 1993

Paper presented at the IAGOD international symposium on mineralization related to mafic and ultramafic rocks held in Orleans, France, 1-3 September 1993. Phases of the Ir sub-group are present either as inclusions in or interstitially to chromite and are unaffected by (or only altered in situ during) hydrothermal processes. By contrast, almost all phases of the Pd sub-group are located in a secondary textural setting - in fractures in chromite or between fragments of brecciated chromite. The different settings indicate that the mineralisation episodes were associated with magmatic and hydrothermal stages respectively. The presence of an included Pd-group mineral in a hydrothermally Pd-group mineralised chromitite sample suggests that the hydrothermal Pd-group minerals were at least partly derived by remobilisation from magmatic deposits in the chromitite pod. These observations indicate that Pd-group elements are more mobile than Ir-group elements under hydrothermal conditions and point to the potential for hydrothermal platinum and palladium mineralisation in favourable environments

Apr 1, 1994

By P. Strand

Talk Outline ? Location and Regional Geology ? Two Unique Kimberlite Sources ? Mineral Chemistry ? Petrography, Age Dates ? Geophysics ? Exploration and Challenges ? Dyke versus Pipe dispersions ? Geophysics ? Prospecting ? Diamond Results ? Summary & Conclusions

May 1, 2008

By Barbara H. Scott Smith

"During the last two decades lamproites have joined kimberlites as the only two known primary sources of economic quantities of diamonds. This paper contrasts the petrography, primary and xenocrystic mineralogy and pipe geology of these petrogenetically separate rock types. The petrographic discrimination of kimberlites and lamproites from each other, as well as other rock types found during diamond prospecting, is discussed. Kimberlites and lamproites can be classified texturally and mineralogically. Such classifications highlight the differences between, and among, lamproites and kimberlites. The implications of these differences for diamond exploration programs are discussed, with particular emphasis on the application of petrography. IntroductionKimberlite was the term coined in the late 19th century to describe the host rock of diamond at the type locality, Kimberley, South Africa (Lewis, 1887, 1888). Innumerable kimberlites are now known worldwide; some of them contain economic quantities of diamond (e.g. South Africa, Botswana and Russia) while many are barren. Jennings (1989) suggests that less than 3% of the known kimberlites can be considered to be commercial. Kimberlite was thought to be the only important primary source of diamond for approximately a century. Until the late 1970s, lamproites were thought to be only academic curiosities. Some workers (e.g. Wade and Prider, 1940), however, did comment on certain similarities between lamproites and kimberlites and, hence, inferred a potential for lamproites to carry diamonds.The term lamproite was introduced by Niggli (1923) for leucite-bearing rocks from southeast Spain and Wyoming which had some unusual geochemical characteristics. Wade and Prider (1940) used the term lamproite (as defined by Troger, 1935) to embrace rock types found in the West Kimberley area of Western Australia. All the lamproites described by Wade and Prider (1940) form distinct topographic features. Subsequently in the late 1970s, additional pipes, which have little or no relief, were discovered in the same area, but only as the result of a major diamond exploration program (Atkinson et al., 1984; Jaques et al., 1984, 1986). Some of these bodies are diamondiferous. In 1979, the Argyle pipe was discovered in the East Kimberley area which, in terms of grade, is the richest known primary diamond deposit in the world with some parts of the body having grades greater than 500 carats/100 tonnes (Madigan, 1983; Boxer et al., 1989). All the initial new discoveries in Western Australia resulted from classic stream sampling for ""kimberlite indicator minerals"" (Atkinson, 1989)."

Jan 1, 1992