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By C. Musingwini, A. S. Nhleko

"Since the Global Financial Crisis (GFC) in mid-2008, capital has been more difficult to access. Mining projects must contend with projects from other industries for scarce capital. A decision to invest available capital in mineral projects requires that valuation be conducted to assess the expected return on the projects. The discounted cash flow (DCF) analysis is generally applied for the valuation of mining projects, whereby future cash flows are discounted to present value using an appropriate discount rate. The discount rate significantly affects the outcome of a valuation. Economic and finance theory provides tools to calculate discount rates. The discount rate must account for factors such as the risk and stage of development of the mineral project; hence the appropriate discount rate to utilize in a project is often a subject of debate.The discount rate is the weighted sum of the cost of debt and equity. There are several methods for determining the cost of equity. This study considers the commonly applied Capital Asset Pricing Model (CAPM) and Gordon’s Wealth Growth Model because of their simplicity and availability of parameters required to estimate the cost of equity. This study explores how differences in the cost of equity obtained by these two methods can be explained for a mining environment. Data for empirical analysis were collected from the I-Net Bridge, McGregor BFA, and Bloomberg databases. It was found that Gordon’s Wealth Growth Model provides better estimates of the cost of equity compared to the CAPM under depressed market conditions. Therefore, this research recommends that Gordon’s Wealth Growth Model be used to estimate the discount rates for mining projects during periods of depressed market conditions."

Jan 1, 2016

By Martin J. Conway

DURING the past year, the intense interest shown by the metallurgical industry in the use of relatively pure oxygen has been evidenced by the number of papers dealing with its application and production. The reason for this interest is apparent when it is realized that, weight for weight, oxygen enters into the formation of steel equally with iron. In the manufacture of steel, approximately one ton of oxygen is required to produce one ton of ingots. Until the recent development of plants capable of producing oxygen at far lower costs than had ever previously been considered possible, the oxygen required for steel manufacture was used as it occurs in air, where it is associated with approximately four times its volume of nitrogen. Because of the diluent nitrogen more than 4 tons of total gaseous material per ton of steel must be handled rather than only approximately one ton required when pure oxygen is used. In addition, provision must be made to handle the large quantity of waste, gases resulting from the process. There are cases where the reduction in gas volume alone can justify the installation of an oxygen plant.

Jan 1, 1947

By Raimo Vuolio

"Over the past 30 years, the Nordic countries have developed similar practices for estimating damage caused by rock blasting vibrations. However, over the last few years the risk of damage has sometimes been estimated by using international values, which have created unnecessary costs, since they are too conservative. This paper gives a proposal for Finnish blast vibration standards and a calculation model for the extent of the zones for building inspection, risk analysis, and vibration measurements. The international conclusion is that particle velocity is the best descriptor for limiting damage potential for structures. Over 900 000 vibration data recordings from 52971 blasts were collected for this paper during 1970-1989. They show that the most practical description is the vertical component of the peak particle velocity. As rock is a nonhomogeneous medium, it is hard to predict the need and scope of risk analyses, building inspection, and vibration measurements. As a large number of blasts were monitored for the recording of the peak particle velocity in several locations in Finland, and the data combined, it is possible to establish safe scaled distances for the calculation of the need and scope of risk analyses, building inspections, and vibration measurements."

Jan 1, 1991

By H. A. Wilmeth

IN 1955, before planning an accelerated stripping program, Chino Mines Div. began an engineering study to improve data for estimating truck haulage costs for any future haulage layout. The study aimed to develop: 1) significant unit costs, 2) a method of estimating travel time from which truck needs and future stripping rate could be determined, and 3) yardsticks of performance to measure haulage efficiencies. It was suggested that to provide significant unit costs, expense accounts should offer management two types of cost control information-unit cost yardsticks with which monthly unit costs could be compared and unit costs for estimating future expenses for any haulage layout.

Jan 5, 1958

By E. Scott Bair

Renewed interest in the vast reserves of anthracite coal in eastern Pennsylvania led to the use of a numerical model for simulating the hydrologic effects of constructing an open-pit anthracite mine. The proposed mine would be approximately 1800-m (5900-ft) long, 1000-m (3300-ft) wide, and 300-m (1000-ft) deep. A two-dimensional, finite-difference, ground-water flow model was used to calculate ground-water seepage rates into the proposed mine, to evaluate the effectiveness of various deep-well dewatering systems, to calculate drawdown in adjacent wells and properties, and to estimate the capacity of the water-treatment plant. Site-specific values of pertinent hydrogeologic parameters were used in the simulations.

Jan 1, 1980

By M. H. Foroughi

This paper discusses the effects of seam inclination and lateral stresses on the stress distribution in pillars in inclined coal seams. The average pillar stress is a function of the overburden weight, the mine depth, the effective extraction ratio and the angle of seam inclination. Normal and shear stresses in the pillar are computed by numerical modeling. In medium dipping seams, leaving a pillar with its axis normal to the stratification causes a shearing stress concentration in the top and bottom corners of the pillar. This results in the pillar possibly becoming less stable in comparison to pillars in horizontal coal seams. Therefore, to reduce the stresses, it may be necessary to leave the pillar at an angle of b deviated from the normal axis to stratification. A mathematically approximate formula for determining b is proposed, and the results are confirmed by numerical modeling.

Jan 1, 1998

By C. J. Roos

Ground engaging tools are used to prevent damage to the main components of earth-moving equipment. These tools consist of everything from shovel teeth to replaceable drill bits to dozer wear plates. The costs of these ?consumable? items are increasing with the costs of raw materials. This project developed a tool to be used by Newmont Mining Corporation to predict the consumption of excavator teeth. This paper presents the results of a Montana Tech research project in which an equation was developed to predict excavator teeth consumption based on production rates and rock properties.

Jan 1, 2009

By John N. Jr Edl

Geokinetics, Inc. has pioneered an in-situ oil shale retorting production process that provides the requisite void space for producing a permeable rubble bed, within the retort zone, by using the explosive energy from vertical blastholes to lift the overburden. By installing suitable instrumentation on the surface of the overburden over an appropriate blasting pattern, it is possible to obtain estimates of the average radius of gas penetration around the blasthole and the average volume, per unit length of blasthole, that is actually occupied by the explosively produced gases (which includes both the volume of the cracks that are penetrated by the gas pressure and the deformed blasthole volume). It is expected that these estimates can be used to examine, and quantify, the effects of such blast design parameters as the type of explosive, the blasthole diameter, the geometry of the explosive charge (length to diameter ratio), and the relative timing of sets of charges.

Jan 1, 1983

By E. Demedde

Carbon anodes in aluminium reduction cells are continuously consumed during electrolysis. In prebake cells the anodes are replaced at regular intervals. The spent anodes, called butts, are often allowed to cool in air while emitting fluorides into the building from the hot alumina cover and the adhering bath. In modem smelters spent anodes are placed inside enclosures and fluoride emissions during cooling are effectively reduced. Fluoride emissions from spent anodes were estimated by considering the kinetics of fluoride formation, a heat transfer analysis of the cooling anode butt and the ventilation flow from a cavity. Fluoride emissions from large anode butts cooling inside enclosures were compared with those cooling in air. Good agreement with published experimental values was obtained for enclosures having different leakage opemngs, when a hydrofluorination reaction of the spent anodes was included.

Jan 1, 2006

By H. J. Bickel

This paper is concerned with general concepts and statistical devices used in projecting overall energy requirements. Particular emphasis is given to the use of individual end- use markets as an approach to developing future overall energy requirements, and translating these requirements into fuel consumption.

Jan 1, 1962

By D. G. Krige

The problem addressed is that of estimating grade differences between sub- divisions of a new gold mining prospect when only borehole results are available. Such differential grade estimates are required in choosing the best area for initial production, and in defining the grade profile over the mine's life for purposes of feasibility studies. It is also often necessary to differentiate between the grades and hence the values of subareas, owned by separate companies, for the purpose of fixing relative share participation percentages in the new mining company. It is shown that exaggerated grade differentials will be obtained from grade estimates of the subareas based only on boreholes within each such subarea, respectively, and that it would be more realistic to apply some 'smoothing', preferably by kriging. This is feasible because the lognormal-de Wijsian model can be used to give an indication of the spatial structure for the boreholes, even where they are spaced far apart; also the degree of 'smoothing' indicated is shown to be relatively insensitive to inaccurate estimates of the relevant semivariogram parameters.

Jan 1, 1987

By Arash Khosravifar Ph. D. P. E., Thomas Torkelson P. E., Milad Souri Ph. D. P. E.

Kinematic demands from lateral ground deformations can be a major cause of damage to maritime and highway transportation structures such as wharves, piers, and bridges. These kinematic demands are different from the ground deformations in the free field in that the resisting forces from piles will reduce the ground deformations to some extent (i.e., pile pinning effect). Current design codes for wharf structures allow the beneficial resisting forces from pile pinning effects to be incorporated in pseudostatic slope stability analysis (e.g., ASCE/COPRI 61-14). While design guidelines that are specifically developed for bridge foundations provide recommendations on how to incorporate the pile pinning effects (e.g., Caltrans 2012), their applicability to wharf structures need to be evaluated. This study uses the results of a large-scale centrifuge test on a pile-supported wharf structure to evaluate the accuracy of available Newmark sliding block analysis in estimating the lateral ground deformations. Pile pinning effects are incorporated based on the approach outlined by Caltrans. The results of this study support the use of existing pile pinning methods that were primarily developed for bridge foundations in maritime structures (e.g., wharves and piers). It was found that median Newmark displacements provide a good estimate of the permanent end-of-shaking displacements and that the median plus 1 standard deviation Newmark displacements provide a good estimate of the peak transient displacements. Design considerations for use in the Newmark sliding block analysis to estimate the kinematic demands on piles are discussed.

Oct 1, 2022

By O. Ditsele

Coal plays an important role in the energy needs of the World. Given its wide abundance and low cost, coal use is bound to increase with the growing energy demand. Despite its importance, there are growing concerns over coal?s environmental burdens, especially its contribution to greenhouse gas emissions. To ensure sustainable extraction and use of coal, opportunities for minimizing potential impacts from coal have to be identified and exploited. Whilst extensive work has been done on life cycle assessment of coal use, especially in electricity generation which uses the bulk of coal produced, there has been limited work focusing specifically on coal mining. This study aims to estimate the cradle-to-gate life cycle climate change impacts of coal from a surface coal mine in the United States. The study employs general principles of ISO standards for LCA.

Jan 1, 2010

By D. Beneteau, L. Feldman, D. Milne, A. Hyett, G. Snell

"Behaviour of rebar bolts subjected to combined shear and bending in underground potash mining applications is not well understood. An experimental investigation compared load applied to resin-grouted No. 25 metric rebar to theoretical load, calculated using elastic bending theory. Distributed optical sensing (fibre optic) technology allowed axial strain measurements at 1.25 mm increments along the length of rebar. Experimental procedure, data processing methods, and equipment improvements are needed for field applications of optical sensing technology. Goals were to adopt procedures for instrumenting rebar bolts, conduct tests, and develop data interpretation methods to measure field deformations and loads. ¦ KEYWORDS Fibre optic, Potash mine, Rebar bolts, Transverse load testing RÉSUMÉ On appréhende encore mal le comportement des boulons d’ancrage pour barres d’armature soumis au cisaillement et au cintrage pour un usage dans des mines de potasse souterraines. Une étude expérimentale compare la charge appliquée aux barres d’armature de diamètre n° 25 (25 mm en mesure métrique) enduites de résine époxy à la charge théorique, calculée à l’aide de la théorie de la flexion élastique. La technologie de détection optique distribuée (fibre optique) a permis d’effectuer des mesures de la contrainte axiale à des différentielles de 1,25 mm sur toute la longueur de la barre d’armature. Pour des applications sur le terrain de la technologie de détection optique, il faut envisager une procédure expérimentale, des méthodes de traitement de données et une amélioration de l’équipement. Les objectifs établis consistent à adopter des procédures d’instrumentation des boulons d’ancrage pour barres d’armature, à effectuer des essais et à mettre au point des méthodes d’interprétation des données pour mesurer les déformations et les charges sur le site. ¦ MOTS CLÉS boulons d’ancrage pour barres d’armature, essai par charge transversale, fibre optique, mine de potasseINTRODUCTION Resin grouted rebar bolts are commonly used in potash mines in the province of Saskatchewan, Canada, in areas where shear deformation is observed in the rock, or where potentially unstable ground is present, including locations such as clay seams. Opportunities to observe deformations of rebar, as shown in Figure 1, are rare because it is unusual in underground potash mining to excavate supported ground. In this situation, a block of potash containing a rebar bolt had failed."

Jan 1, 2019

The projection of operating costs for mining, processing, and other site operating costs is an exercise which can be fraught with considerable peril. Not only are the physical characteristics of each mineral property unique, but a range of other factors will influence the consultant's approach to compiling cash flow estimates. This paper details some of the techniques used in estimating operating costs for use in order-of-magnitude cost studies and feasibility studies, and describes how to avoid common areas of difficulty. A series of examples relating to open pit gold mining and processing cost estimates illustrate these problems, and various corrective methods are described. The mining and treatment processes, and their associated cost elements, are followed in sequence of operation from on-going ore delineation through to disposal of the product. In addition the problem of assigning management, administration and overhead costs along with taxation allowances is addressed. Of critical importance is the application or possible misapplication of accrual procedures to the cost elements. In many cases such misapplication can introduce more pronounced errors with projects of short duration, such as the typical open pit/C.I.P. gold operation commenced in the last decade. The importance of providing verification of estimates depending upon the standard of the cost study is also investigated, and opinion is provided upon the minimum levels of verification necessary at various stages. Finally, the amalgamation of the various individual cost elements into a coherent whole is reviewed.

Jan 1, 1990

By L. A. Panek

Using an approach based on the theory of similitude, the author develops a general equation and related concepts that provide new insights to an old problem. The load-bearing capacity (strength) of a square, rectangular, or cylindrical prism of a brittle material such as rock, coal, or concrete is expressed as the mathematical product of a size effect, a shape effect, and a function of the mechanical properties (deformability, cleat/joint spacing, and friction) of the pillar, roof, and floor materials. Through an application of multivariate statistical analysis, the results of assorted tests (laboratory and in situ) and observations of failed pillars can be combined into a fundamental scaling equation, which provides a unified, consistent approach to the estimation of mine pillar strength. The form of the equation is sufficiently general to be able to incorporate refinements in the characterization of the structural parameters, as they become available through future analysis and experimentation. Analysis of the published test data suggests that pillar compressive strength (per unit of area) is proportional to the cube root of the pillar width, and that the height effect can be described as the superimposing of a variable size effect (characteristic of the material) on the constant width effect.

Jan 1, 1981

By T. Celik, B. Genc, C. Musingwini

"Mine planning software continues to be an important factor when it comes to the development of the South African mining industry. To contribute to this development, a new methodology to define and measure mine planning software utilization in the South African coal mining sector within an evolving data-set framework was developed. An initial data-set showing the mine planning software providers, their corresponding software solutions, as well as the software capabilities and information on the number of licences was collected and compiled in 2012 in an online database for software utilized in the South African mining industry. Details of the database development and implementation were published in the Journal of the Southern African Institute of Mining and Metallurgy in 2013. In 2014 the data-set was updated with additional and new information.In this paper, using the 2012 and 2014 time-stamps, a methodology for estimating the software utilization is developed. In this methodology, three variables: commodity, functionality, and time factor are used to define and measure the software utilization in order to ultimately inform decision making strategies for software utilization. Utilization in the coal sector was measured according to six different functionalities, namely Geological Data Management, Geological Modelling and Resource Estimation, Design and Layout, Scheduling, Financial Valuation and Optimization. The methodology is useful for stakeholders reviewing existing software combinations or intending to purchase new software in the near future and wanting to estimate the comparative attractiveness of a certain software package. These stakeholders include mining companies, consulting companies, educational institutions, and software providers. The work presented in this paper is part of a PhD research study in the School of Mining Engineering at the University of the Witwatersrand."

Jan 1, 2016

By T. Celik, B. Genc, C. Musingwini

"This paper discusses a new methodology for defining and measuring mine planning software utilization in the South African gold mining sector within an evolving data-set framework. An initial data-set showing the mine planning software providers, their corresponding software solutions, as well as the software capabilities and information on the number of licences was collected and compiled in 2012 in an online database for software utilized in the South African mining industry. Details of the database development and implementation were published in the Journal of the Southern African Institute of Mining and Metallurgyin 2013. In 2014 the data-set was updated with additional and new information. Using the 2012 and 2014 timestamps, a methodology for estimating the software utilization was developed. In this methodology, the three variables of commodity, functionality, and time factor were used to define and measure the software utilization in order to ultimately inform decision-making strategies for optimal software utilization. Using six different functionalities, namely Geological Data Management, Geological Modelling and Resource Estimation, Design and Layout, Scheduling, Financial Valuation, and Optimization, utilization in the gold sector was measured. This paper presents the methodology employed for measuring the mine planning software utilization. The methodology is useful for stakeholders reviewing existing software combinations or intending to purchase new software in the near future and who want to estimate the comparative attractiveness of a certain software package. These stakeholders include mining companies, consulting companies, educational institutions, and software providers. The work presented in this paper is part of a PhD research study in the School of Mining Engineering at the University of the Witwatersrand."

Jan 1, 2015

INTRODUCTION TO MINERAL INVENTORY The first explanations to be made must answer the questions: What is a mineral inventory, and how is a mineral inventory different from an ore reserve? The term mineral inventory is a relatively new designation-born of the computer age and grown to common usage with the development of computer techniques for extending drill-hole sample values to regularly gridded data blocks representing in situ mineral values. The term has been generally accepted by geologists and engineers because it has a precise meaning which avoids many of the ambiguities of ore reserve. A mineral inventory is an estimated inventory of mineral in place and is usually achieved by dividing the deposit into regularly spaced gridded blocks to which are assigned estimated values using various extension techniques. A mineral inventory makes no presumptions about the mineability of the blocks or their cutoff grade. Such parameters are implied with the use of the term ore reserve. Ore has a specific definition (see Chapter 1) and ore reserve must reflect that definition and thus has economic and mining constraints. An ore reserve will be different under different economic and mining conditions and is subject to reclassification by many factors. The term mineral inventory avoids all such ambiguities. A mineral inventory estimate may be good or poor according to how much is known about the deposit, how extensively it has been sampled, and what techniques have been employed to assign estimated grade to the blocks. Such an inventory, however, does not change with time, economic conditions, or mining technology, but only with new and better data and methods. Thus, the mineral inventory is an excellent designation for describing mineral value distribution within a deposit's geological setting. The techniques for assigning values and tonnage to mineral blocks or panels are the subjects of this chapter. Whether a summation of the blocks be called a mineral inventory or mineral reserve is not important. Many conventional methods for computing reserves of minerals refer to the methods in terms of ore reserve calculations. OBJECTIVES OF MINERAL INVENTORY OR RESERVES Mineral inventories are computed for the purpose of determining the quantity, the quality or value, and the spatial distribution of potentially economic minerals within the earth. Such computations are made at all stages in the life of a mineral extraction process, from the early exploration phase to the final year in the life of a mine. To quote Popoff (1966, p. 2), "They are the most responsible and irreplaceable tasks in the valuation of a mineral deposit. Efficiency in extraction and productiveness is impossible without accurate reserve computations." The accuracy of estimate required for each of the three parameters of quantity, value, and location is dependent upon the objective for which the reserve estimate is being made. Again quoting Popoff (1966, p. 2): Reserves are computed to determine the extent of exploration and development; distribution of values; annual output; probable and possible productive life of the mine; method of extraction and plan design; improvements in extraction, treatment, and processing; and requirements for capital, equipment, labor, power, and materials. Such computations are used to assist development

Jan 1, 1980

By R. R. Tatiya

This paper describes the local estimation of mineral inventory by kriging. A mineral deposit located between two working levels of a copper mine was examined. Data for this estimation was obtained by underground diamond drilling. The mineral inventory that was computed by this method was compared to the results obtained by global estimation techniques, which were based on information front surface boreholes. A comparison between the ore reserves estimated through kriging and the ore reserves estimated at the mine using conventional methods was also made. This analysis shows that geostatistical methods can be applied to evaluate base-metal deposits similar to the deposit examined in this study. In the part of the mine that was examined, the kriging estimates show an overall increase in metal content at all cutoff grades, compared to the estimates obtained through conventional methods. Also, the ore body profiles are more continuous and regular through kriging, but they are not radically different from the profiles that were previously obtained at the mine. However, the global estimate of the deposit using kriging could not provide reliable results.

Jan 1, 1997