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By Henry Kreisinger, F. K. Ovrrz, C. E. Augustine

The Bureau of Mines is conducting investigations to determine how fuels belonging to or for the use of the United States Govern- ment can be utilized with greater efficiency. As a result of these investigations a number of reports have been published, each report treating of one phase of fuel utilization. A list of these publications is given at the end of this bulletin. The efficient utilization of coal depends on the correct design of furnaces and on their proper operation. To attain both of these conditions a knowledge of the fundamental principles of combus- tion is necessary. Therefore, the study of the combustion of coal in industrial furnaces has been made a part of the bureau's fuel in- vestigations. The desirability of investigating the fundamental principles of combustion was suggested by the study of a large number of steam- ing tests made by the fuel-testing division on coals from all of the more important fields in the United States. The results of these tests have been published in Bulletin 325 of the United States Geological Survey and in Bulletin 23 of the Bureau of Mines. As a result of that study a plan to investigate the combustion of coal in a special apparatus in which all conditions could be controlled was presented to the National Advisory Board for Fuels and Struc- tural Materials at its meeting of April 10 and 11, 1906. The plan received the approval of the board, and since the establishment of the experiment station of the Bureau of Mines at Pittsburgh the investigation of the combustion of coal has been carried on intermit- tently. The history of these investigations is given in Technical Paper 63.

Jan 1, 1917

By C. O. Swanson

CALCULATING the average grade of a gold deposit is a problem that presents certain unique difficulties. Particularly troublesome is the fact that the average of the samples taken from a deposit is likely to be higher than the grade of the ore that is eventually mined, even when allowance is made for dilution and other factors resulting from the mining operations. It would seem that this situation is due to the presence in the deposits of structural peculiarities which have not been properly taken into account, since estimating the average grade of the broken ore produced from the deposits does not present the same difficulty. It is therefore evident that structural considerations are of prime importance in estimating the grade of a deposit. This fact is clearly realized and taken into account in cases where the boundaries of the orebodies and the variations within them are easily recognized. But in many gold deposits this condition is not satisfied, a circumstance which can be regarded as the main source of difficulty. Lacking definite information concerning the structure, we are apt to use certain procedures which are either empirical or based on general probabilities.

Jan 1, 1945

By Joey Hoang, Robert Johansson, Tapani Keronen, Mikael Jåfs, Jani Jansson, Mikko Korpi

At the Copper 2016 conference in Kobe, Japan, Outotec introduced a vision for the year 2020, wherein smelting would make use of four digital cornerstones: intelligent instruments, advanced process control, improved information management and transparency of and access to data. Since then, this vision coined the phrase “Fully Automated Smelter” with the mission promising a concept where no manual actions from human operators would be needed during normal smelter operations. Replacing repetitive physical work, collection and analysis of everyday production data has a great potential for further automation and will provide productive ways to improve efficiency and safety of smelters in the future. Therefore, a lot of emphasis has been put into developing solutions to automate these tasks and to move people out of harm’s way. A lot of new equipment, systems and optimization tools are under development. In addition, a lot of effort is going into developing dynamic process models and advanced control systems to interface with the plant automation systems. The goal is to integrate all these concepts to meet Outotec’s Fully Automated Smelter vision. This paper will cover these latest achievements toward this vision and introduce the near-future of digital smelting. INTRODUCTION As is well known already, the humankind is currently experiencing a change, extent of which is broadly studied by the governmental, educational and industrial institutions and parties. The wellbeing and quality of life have traditionally been improved alongside the developments in industrial production, which is now about to enter its fourth revolution. Therefore, the current change is often described as fourth industrial revolution, or industry 4.0 (or industrie 4.0, as named by Acatech, 2013) and can be considered anything from small incremental development to a ground-breaking global reset that will affect everyone’s lives. Many seem to agree, that the scale of change will indeed be big, even significantly bigger than the three industrial revolutions before it (Pellini, Weyrauch, Malho & Carden, 2019; Geissbauer, Vedso & Schrauf, 2016; Jansson, Bjorklund, Lahtinen, Heinonen, Jafs & Fagerlund, 2016).

Jan 1, 2019

By John A. Davis, David W. Brunton

During the past few years great progress has been made in the United States toward safer, more efficient, and more economical tunneling methods. This advance is partly due, no doubt, to the recent increase in the number of tunnels and adits driven for devel- oping and draining mines and transporting ore. The Bureau of Mines during 1911 and 1912 made a special examination of this phase of mining operations, in connection with an investigation of mining methods and means for preventing accidents. The details especially studied were the provisions for the safety of employees, the kinds of equipment, the methods of driving, and the costs of con- struction. The results and conclusions obtained from that investi- gation are discussed and summarized in this bulletin. Up-to-date information concerning tunneling methods is difficult to obtain. There are few books on the subject; and much of the material they contain, although interesting and of value historically, is now obsolete. The engineering periodicals, it is true, endeavor to keep abreast of the times, and several in nearly every issue present some article bearing upon tunnel work. But the very multiplicity of these articles prevents one from reading them all, and the foreman or superintendent in charge of a tunnel, or the mining engineer designing one, and especially the business man financing the project, has no time for a lengthy search after scattered articles in order to determine the present status of tunnel work. Then, too, knowledge of new methods travels slowly. Valuable inventions and improve- ments in tunneling as well as in all the other industries frequently remain in the notebook of the investigator, or as theses are buried in university libraries, or are published only in journals of small scien- tific societies. New tunneling methods and equipment that are prov- ing safe, efficient, and economical may be totally unknown outside the district in which they originate. This paper, based on a special examination both in the field and in engineering literature, is in- tended to supply data concerning modern and recent tunneling practice in the United States, and to make suggestions that, it is hoped, will result in a saving to the mining industry of energy, capital, and life.

Jan 1, 1916

By John D. Rockaway

Failure of the mine floor supporting coal pillars frequently occurs when the subcoal strata include "underclays" or other low strength strata. The failure process has been studied to define the response of these materials to applied coal pillar loads and to determine the applicability of bearing capacity analysis to evaluate unsafe conditions. The study has been accomplished through an investigation of both the intact and insitu geotechnical properties of the subcoal strata and through the installation of floor movement monitoring instrumentation. The results of these studies have indicated that both the shear strength of the underclay and the stratigraphy of the subcoal strata must be considered in the analysis. The shear strength was the major controlling factor determining the ultimate load carrying ability of the materials, but the thickness and stratigraphic position of the weak layers influenced the mechanism of the failure process. The methods of bearing capacity analysis were used to define pillar stability that included provisions for taking into consideration a two-layer system. Conditions assumed for a coal mine where a weak underclay overlies firmer strata. The results of the analysis compared very well with observed mine conditions, indicating marginal conditions in areas of the mine which later experienced pillar support failure. In addition, a "heave factor" was derived to predict potentially unstable floor conditions in the mines studied in detail.

Jan 1, 1979

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 Arthur Matzick

[1-1 1y IilJLJ,I~X" K pl.rw~~ts rt1s11l s I'I.IIIII 1.c1sc.n rcnlb cind d(~\,elopmrnt rnr- ried oitt by tllc* Illll.cv111 of .\li~~css (111 rlrc. ~ns-c-o~l~l)i~s~io~l oil-sllnlr rcdorting proc-rss. 15ffrc~t.s of t l\t. 1)roc.cBss ra~~irtl~lrs, resi~lts of ~ILS altrl stinle distribu- lion stutlic~s, lrsls 011 sl1nlr I)III-~ ic.lt* sixit. :rl~tl o1hi11- cl~*ti~ils of tks )erimrntnl pro- pSnrns arc* (lisc-~rss*tl. l-~trii)~~~ ~IIIS~~~ZII.~ ~II[O~IIIII(~III~ 111111 pr111) \ CI~S ~s~ocinted ill^ 11~r relurti~bg 1)1-o(.e1ss ,~lso 111.c. i~~c~l~~tl~.tl. "~'~I~III~I~I iolls of tl~r rrtorting test c1:itn I~II(~ elct~tilwl oil rc~~overv [I[I\v I~~~~~I-IIIIIS for tl~c* (i-, 25-, IIIIC~ 150-ton-per- clay rrtorts, tin1.1 tl~-n\vings reirlt illK 10 1.c1to~t i11g .rc.li~ip~llr.~~t nre given. ]

Jan 1, 1966

By Michel C. Frippel

This section of the Minerals Yearbook reviews the minerals industries of 29 countries: the 12 nations of the European Community (Belgium, France, the Federal Republic of Germany (FRG), Italy, Greece, the Netherlands, Denmark/Greenland, Spain, Portugal, Luxembourg, the United Kingdom, and Ireland); 6 of the 7 nations of the European Free Trade Association (Sweden, Nor-way, Finland, Iceland, Austria, and Switzerland); Malta; the 8 Centrally Planned Economies of Eastern Europe (the German Democratic Republic (GDR), Poland, Yugoslavia, Albania, Hungary, Czechoslovakia, Romania, and Bulgaria); and the U.S.S.R. Western Europe Western Europe [loosely defined to include the 12 nations of the European Com-munity (EC) and the 7 nations of the European Free Trade Association (EFTA)] is the single largest trading area and consumer of raw materials in the world. If Western Europe was at one time an important mining sector, it has now increasingly relegated the role of supplying minerals for its minerals processing industry to its ex-colonies in North and South America, Africa, and Australia. In this regard, Western Europe is the most important determinant of raw materials consumption (and thus raw materials production). There is an important reason for this since Western Europe lies somewhere between Japan at one extreme and the United States and the U.S.S.R. at the other extreme as regards the availability of natural resources.

Jan 1, 1992

By Frederic P. Dewey

THE Bureau of the Mint of the United States Treasury maintains 13 offices for the purchase of gold-bullion, and this paper describes an investigation to establish the reasonable differences in the assay-results at the various institutions which may be commercially allowable in the settlements between them. Beginning with the comparative assay of proof-gold at the Philadelphia mint and the Utrecht mint, which shows 0.00002 as the closest agreement now possible, eight tables of comparative results, taken from the regular work of the service, are given. These tables begin with very fine gold, produced in an electrolytic refinery, showing close agreement. in the assay-results, and follow through decreasing gold fineness and . increasing amounts and complexity of base metals to very impure and complex bars produced at cyanide-mills, some of which give widely-varying results. Next is given a series of results on samples, prepared and sent out to various laboratories in the service, to test the influence of different metals and various combinations upon the' agreement of the assay-results; 11 samples were sent out and each one was assayed from 44 to 71 times, making a total of 623 assays. To these are added 107 assays of identical samples of coin-gold. On a previous occasion,' I have endeavored to show the degree of accuracy that may be expected in the ordinary everyday analysis of various materials, and on another occasion2 I

Aug 1, 1909

U.S. Bureau of Mines contract H0122053, "Improved Sensors and Fire Control Systems for Mining Equipment", was an investigative effort involving: ? Study of the fire problem on large mobile mining equipment ? Identification of equipment most prone to fire, to serve as a design case example ? Design of an improved fire protection system ? Demonstration of the developed system This effort was performed during the period June 1972 through May 1973, and was conducted in two phases. Phase I, June through November 1972, was devoted to identifying the fire problem and developing and evaluating design criteria. Phase II involved translating the design into hardware and demonstrating its effectiveness during actual fire tests, first on a wooden mockup of a truck, then on an operating truck at a working mine site.

Jan 1, 1973

By David J. Hoadley

This report describes the development and limited testing of a semi-automatic, raise climber, Compact Service Hoist System designed for stope access in underground metal and nonmetal mines. Demonstrated capabilities of the system include a 1,000-lb payload capacity, control from the traveling cage and from up to three remote stations, operating in vertical or inclined raises 3 ft in diameter and up to 300 ft in length and a travel speed of 50 ft/min. The system has the capability of operating in crooked raises because the conveyance climbs two stationary wire ropes suspended down the raise. The drive unit is electrically powered with power and control signals supplied to the drive unit through an umbilical 'cable also suspended down the raise. The system has been designed for portability, ease of installation and minimum raise development. The hoist has been demonstrated successfully in an above ground test tower. This report provides a detailed description of the hoist design and its demonstrated performance to date.

Jan 1, 1985

By N. Kumar, A. K. Dhawan, A. Varughese, S. K. Khullar

Abstract The in-situ stress field is one of the primary parameters influencing the performance of underground structures particularly in the Himalayas where there is strong influence of topography and geology on in-situ stresses. It is always advisable to measure the in-situ stresses, in whatever best way possible. Hydrofracturing is one of the methods by which in-situ stress can be measured. This paper briefly describes details of the concept of Hydrofracturing in arriving at the in-situ stresses of the rock mass at Pancheswar Project. The data obtained from the tests has been analysed, interpreted and the results are presented in this paper. Kurzfassung Das Spannungsfeld an Ort und Stelle ist einer der wichtigsten Parameter, die das Verhalten der Untergrund-Struktur beeinflussen, insbesondere in den Himalayas, wo die Topografie und die Geologie einen grossen Einfluss auf die oertlichen Spannungen ausueben. Es empfiehlt sich stets die Spannungen an Ort und Stelle so gut wie moeglich zu erfassen. Die Hydrofraktur bzw hydrografisches Zerstueckeln ist eine der Methoden, die bei den Messungen der oertlichen Spannungen verwendet werden koennen. Diese Abhandlung beschreibt kurz Einzelheiten ueber das Konzept von Hydrofraktur bei der Bestimmung der Spannungen an Ort und Stelle von der Felsmasse bezueglich des Projekts Pancheshwar. Die gewonnenen Daten aus den Messungen wurden analysieret und ausgewertet. Die Ergebnisse werden dabei vorgelegt. Sommaire Le champ de contraintes in-situ est un des paramèters principaux influencant l’exécution des structures souterraines particulierèment en Himalaya où les forces in-situ sont fortement influencées par les caractéristiques topographiques et géologiques de la région. La fracturation hydraulique est une technique qui permet de mesurer des forces in-situ des massifs rocheux. Cet article décrit brièvement le mécanisme de fracturation hydraulique et présente les résultats de mesure des forces in-situ des roches au site du projet hydroélectrique de Pancheswar.

Jan 1, 2003

By Michael Rieber

Mineral economics interfaces the mineral sciences and engineering with finance and economics in the analysis of appropriate questions facing the minerals and energy industries. Its practitioners include those trained in the earth sciences; mining, petroleum, and geological engineering; metallurgy and mineral preparation; as well as finance, information systems, economics, and statistics-most usefully in one or more combinations. Allowing for some overlap, three general areas may be identified: evaluation, economic analysis, and resource appraisal. Evaluation begins with mine investment analysis (exemplified by Gentry and O'Neil, 1984) and process costing, for which the STRAMM Handbook (Anon., 1977) provides a well-known basis for mining and beneficiation. But it extends from property appraisal, often used for the determination of taxes and royalties, through the determination and comparison of transport costs (e.g., Richer and Soo, 1977), and to benefit/cost analyses of externalities. Economic analysis, the subject of this section, is displayed in rigor and extent both theoretically and as applied to commodity classes in Vogely (1985), but it is implicit though apparent throughout Lefond (1983). The text edited by Vogely places minerals in their aggregative context with economic growth and trade, proceeds to the theoretical analysis of minerals and their markets, analyzes the structure and performance of the major mineral sectors, and concludes with policy issues: fuel, nonfuel, and environmental. Resource appraisal employs quantitative methods for the estimation of mineral and energy resources. It moves through geologic, geophysical, and geochemical properties to the identification of estimation procedures for mineral endowment and for the economic measure of stocks and flows of specific minerals (Harris, 1984). It can be used to estimate the probable amount of a specific resource remaining in a given region and has been used to project sites in a specific

Jan 1, 2008

By D. Harrington

Dust diseases are much before the public at present, but little reliable information on the subject is readily available to the layman; even those rated as experts usually have a more or less theoretical conception of these diseases, their causes, remedies, and prevention. Until recently little attention has been given to prevention, and the usual attitude of the engineer, upon whom the main reliance for prevention ultimately must devolve, has been to let "sleeping dogs lie" or, more definitely, to "let well enough alone." However, the "laissez faire" attitude no longer is tenable; in the past few years numerous conditions have caused those engaged in industry, including mining, to study the subject with a view to ascertaining the facts upon which to formulate remedial measures, primarily preventive. This bulletin is an attempt to assemble information in convenient form on effects of breathing dusts, largely in the mining and allied industries. The literature on this subject is so extensive that no attempt has been made to include all published material or all types of dust diseases but only to assemble some of the more outstanding data on several aspects of the subject, especially with reference to silicosis.

Jan 1, 1937

By A Golsby

Although much talked about, social licence to operate (SLTO) is a relatively new concept that has been deemed as one of the four biggest business risks to a mining project over the life-of-mine. There is no accepted single definition of SLTO and this author understands SLTO to be stakeholder perception of the legitimacy of a project, a company or an industry. At a specific site, and across different sites within the same organisation, SLTO ranges through different levels according to stakeholders’ degrees of acceptance in time and space. Management of SLTO is vital for the mining sector but is difficult as it is informal and intangible. Although there are no key performance indicators, there are certain indicators that enable relative measurement of the ‘level’ of the SLTO. Because of the importance of the SLTO, information management during the entire life-of-mine, from exploration to rehabilitation, becomes crucial for the continued operation of a project. This paper identifies ten basic principles for the management of information to support the SLTO.CITATION:Golsby, A, 2014. Managing information to support a social licence to operate, in Proceedings Life-of-Mine 2014 , pp 389–398 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 16, 2014

By M Pepper, C R. Roche, G M. Mudd

"The Australian mining industries approach to life-of-mine planning has improved considerably in recent decades. It now needs to be matched by, and embedded in, mining governance systems that utilise a comprehensive whole-of-mine-life approach within a jurisdictional, industry and regional regime rather than just focusing on specific impacts in isolation. The need for a more comprehensive approach is supported by the many mining legacies, from historic, recent and some operating mine sites around Australia. There are sites that are leaving enduring environmental, community and public health impacts that are yet to be accurately assessed. While a number of these sites in Australia are estimated to be more than 50 000, this is probably an underestimation, with a lack of data and different state-based approaches complicating attempts to quantify mining legacies as a national issue. Qualitative assessments about the extent and nature of mining legacy impacts on nature and communities across Australia are also required if we are to understand and avoid ongoing and future mining legacies.This paper commences with an exploration of mining legacies as an umbrella term for previously mined, abandoned, orphan, derelict or neglected sites. This is followed by a discussion of the current status of mining legacies as an Australia-wide issue, contrasting the Australian response with overseas examples. Common themes from past workshops are explored recognising that mining legacies are a growing public policy issue and identifying key ingredients for a successful response. Supporting this, and based on national data which re-enforces the need for action, is the changing scale and intensity of mining in Australia that, while lowering costs for mine operators, increases the liability that may eventually fall to the state if mine sites are not rehabilitated effectively. Though a national issue, mining is a state and territory responsibility, so the current approach to mining legacies is then examined state-by-state. Given the widespread application and recent changes to bonds and levies in Western Australia (WA) and the Northern Territory (NT) the merits of both are examined with reference to specific case studies. Despite the current division of responsibility and diversity of approaches, however, mining legacies remain a significant and growing problem with a recognised need and repeated call for cooperation and coordination at a national and international level. Future action is addressed in the final section with reference to liability, responsibility, industry reputation, regulation and leadership.CITATION:Pepper, M, Roche, C R and Mudd, G M, 2014. Mining legacies – understanding life-of-mine across time and space, in Proceedings Life-of-Mine 2014 , pp 449–466 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jul 16, 2014

By Edward E. Johnson

The U.S. economy made significant progress in 1984. The current-dollar gross national product (GNP), the market value of the Nation's output of goods and services, increased almost 11 percent over that of 1983 to slightly more than $3.66 trillion (table 1), and the real gross national product increased almost 7 percent.2/ Such rapid growth in real GNP has not occurred since the early 1950's. Real final sales increased only 5 percent during 1984, and real business inventories increased $24.8 billion ($57.9 billion in current dollars). Total employment of 106.7 million was an all-time record, and the unemployment rate declined from 9.5 percent in 1983 to 7.4 percent in 1984. During 1984 the U.S. dollar showed great strength on international markets, contributing to large current-dollar negative net exports of goods and services (-$62.5 billion) and even larger negative net exports of merchandise (-$107.6 billion). The strong dollar and the substantial increase in net imports of goods and services helped reduce U.S. inflationary pressures and provided a major source of loanable funds for financing domestic private investment.

Jan 1, 1985

By R. L. Virta

Four companies mined ball call in four states in 2009, H.C. Spinks Clay Co. Inc. (owned by Lhoist Group), Kentucky-Tennessee Clay Co. (owned by Imerys Group), Old Hickory Clay Co. and Unimin Corp. Production, on the basis of preliminary data, was 820 kt (904,000 st) with an estimated value of $39.4 million. That was a 15-percent decrease in tonnage from 967 Mt (1.1 mil-lion st) with a value of $44.3 million that was produced in 2008. Tennessee was the top producing state with 59 percent of domestic production, followed by Texas, Mississippi and Kentucky. About 71 percent of production was airfloat, 18 perc

Jun 1, 2010

By G. Roberts, S. S. Klima, W. R. Reed, J. Deluzio, G. Ross, A. Mazzella

The abstract discusses the problem of silicosis among roof bolter operators in coal mines due to respirable quartz dust (RCS) exposure. It presents a study comparing a new wet box collection system to the traditional dry box system. The wet box system uses water to saturate collected material, reducing RCS exposure during cleaning. The study found that the wet box system significantly reduced RCS exposures and quartz content in samples compared to the dry box system.

May 11, 2022

By A. G. Yapo, T. W. Camm

"All-in sustaining cost is a metric used by mining companies to reflect the cost of gold mining in a consistent format useful to both investors and mining professionals. Cost reporting focused on the direct cost of mining and processing ore was summarized in the non-GAAP cash cost developed by the Gold Institute in 1996. In 2013, a group of mining companies, working with the World Gold Council, developed a more inclusive approach to reporting costs designed to solve the dilemma of showing a more comprehensive reflection of recurring costs involved in producing gold, without discouraging investors. INTRODUCTION Mining today plays a key role in the development of our civilization as a source of essential raw material and provider of essential fuels, producer of jobs, and a factor in support of the international balance of monetary payment (Camm, 2014). Professionals in mining locate, develop, design and manage ore deposits in an environmentally safe and profitable manner. As mineral deposits become increasingly scarce, new challenges face the industry. A current trend is to an increased emphasis on underground mining techniques for deeper deposits. Operations are safer today than before as companies understand better their work environment and the importance of mining responsibly. A continual challenge for the industry is accurately reflecting the costs and selling price of ore. An enduring characteristic of mining is the situation where the market typically determines the price of a commodity; the main control a company has on the bottom line is to control the cost of production. An attempt to bring light and clarity on the cost of their business will give a better idea to investors on the true profitability of the mining business. Gold producers face this struggle to accurately reflect the cost of production while also seeking to attract the interest of the investment community (Hill, 2013). In order to have a consistent format to report on their production costs, leading gold producers through their alliance inside the World Gold Council (WGC), worked on the adoption of a new cost framework: the All-in Sustaining Cost (AISC) and All-in Cost (AIC). Since 1996, the traditional cash cost reporting has focused only on the mining and processing costs incurred in mining an ounce of gold, which included the costs of goods sold (labor, energy, and consumables costs) and royalties (Table 1). But cash cost reporting ignores many important aspects, like sustaining capital, general and administrative expenses, and site rehabilitation at the end of the mine life (Whelan, 2013). The cash cost was used to attract many investors into the business. In fact the high gross margin (sales minus cash costs) has been promoted the past decades by the industry instead of the net or operating margin. As a result, even when the gold price was high, nearly $1900 per ounce in August 2011, gold producers were not reporting excessive profits in their cash flow / income statements, to the disappointment and incomprehension of investors (Milstead, 2014). The truth was simply that the other costs omitted in the traditional cash cost were reducing the apparent profits."

Jan 1, 2017