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By Philip W. Johnson, Charles D. Haynes

"Abstract - The coalbed methane industry has become a prominent source of domestic natural gas, with its technology having evolved over the past 30 years. Whereas most coalbed methane wells are able to produce without major interruption over their economic lives, wells operating in an underground mining area are subject to being mined-through. If mine-through occurs, the productivity of the well is at least compromised, and may even be terminated. The economic consequences of mine-through may be relatively simple if mineral ownership and extraction rights are common for the coal and coalbed methane. However, if ownership is not common and a superior coalbed methane lease exists, the coalbed methane ownership must be compensated for lost production caused by mine-through. This paper presents a relatively straightforward method to calculate the value of the lost production caused by the mine-through. It uses technology from mining and petroleum engineering, as well as simple economics and financial management techniques.Sommaire - L’industrie de la production de méthane houiller est aujourd’hui une source importante de gaz naturel domestique dont la technologie a considérablement évolué au cours des trente dernières années. Bien que la plupart des puits de méthane houiller peuvent être mis en production durant l’entièreté de leur vie utile sans interruption majeure, les puits implantés en périphérie de mines souterraines sont sujets à être recoupés par ces dernières. Un tel recoupement peut compromettre, ou même mettre fin à la production d'un tel puits. Les conséquences économiques du recoupement par une mine souterraine peuvent être relativement simples quand les droits miniers et les droits d’extraction sont détenus en commun pour le charbon et le méthane houiller. Si toutefois ces droits ne sont pas détenus en commun et qu’il y a eu octroi d’une concession de méthane houiller de qualité supérieure, les détenteurs du méthane houiller doivent être compensés pour la perte de production résultant du recoupement par une mine souterraine. Cet article présente une méthode relativement simple pour calculer la valeur des pertes de production suite au recoupement par une mine souterraine. Cette méthode fait appel aux technologies de l’industrie minière et pétrolière ainsi qu’à des techniques simples d’économie et de gestion financière."

Jan 1, 2006

By P. E. Cavanagh

"The Davis tube test has been used for many years as a laboratory method for determining the magnetic iron re-coverable from a magnetite iron orebody. This paper de-scribes a method for determining the recoverable iron from ores of the Labrador Trough type, with the usua1 flow sheet utilizing spirals followed by magnetic separation.The mechanical structure of a metamorphosed iron ore, resulting from recrystallization over long periods of time, is the basis for the laboratory method developed. Similarities between the structures of such recrystallized ores and the structure of annealed and recrystallized steel are noted.A laboratory technique to determine the size of the different grains of gangue and iron ore minerals is de-scribed and the application of this information to arrive at recommended grinding techniques and flow sheets is demonstrated. The use of the method to determine recoverable iron in such ores is compared to actual iron recovery in the pilot-plant and commercial concentrations of the same ore.The use of a specified lower limit of recoverable iron as determined by this method, in order to design open-pit limits, achieves practical results when compared to designing a pit based on an arbitrary lower limit of total soluble iron. The Ungava Iron Ore deposits are used in giving an example of the resulting pit design changes."

Jan 1, 1968

By T. W. Wlodek

Abstract A simplified method of fatigue testing full-dimension, as-rolled, non-machined, mining drill rods is very desirable to the mining and steel industries in the classification of steels available on the market, through the evaluation of their fatigue limits and endurance strength. In this paper one such simplified method is presented and analysed. The preliminary results show many advantages of this method, such as simplicity and constancy of loading. The type of loading applied more or less simulates the working conditions of the outside fibres of the mining drill rods. Additional advantages of this method are the possibility of testing under dry and wet conditions, its quietness, and its ease of operation. Specially designed adaptors and specially applied techniques of fixing and preparation of samples make possible the breaking of a quarter-octagon hollow drill rod in a free length of uniform section in a rotating beam machine. At first glance this seems to be difficult to achieve. In the first preliminary test three different lots of steel were used. S-N curves under dry conditions were determined. These curves permit of the classification of the drill rods on the basis of the fatigue limit and endurance strength of the outside fibres of the metal, which is dependent to a greater or lesser extent on the effect of surface decarburization, surface imperfections, and special surface treatments. The average slope of the S.N curve in the damaging zone, and the fatigue limit in equal tension-compression rotating bending, were determined for SAE 1080, chromium-molybdenum and nickel-chromium-molybdenum mining drill rods. INTRODUCTION The fatigue limit and the endurance strength of mining drill rod steels are of interest to both the mining and the steel industries. These industries are greatly interested in lowering the cost of mining by reducing the consumption of these steels per ton of ore exploited.

Jan 1, 1951

Titanium tetrachloride may be reduced to trichloride with hydrogen on a hot tungsten filament and other hot: surfaces. The effect of temperature, time and size of t.he filament on the rate of reaction has been studied. A laboratory unit for preparing a few pounds of trichloride at a time is described. The yield of trichloride is 2·2 - 2·4 gm/sq. cm. of hot surface/hour at 1,000°C. and the energy requirement 3'5-4 kWh/pound of trichloride produced.'INTRODUCTIONThe lower chlorides of titanium (titanium tri- and dichlorides) are amenable to electrolysis, being electrovalent in nature. Furthermore, relative to other oxygen-free titanium salts, they are easy to prepare in a pure state and their use has been investigated to prepare titanium. The experimentaJ work described in this paper deals with the preparation of titanium trichloride by reduction of titanium tetrachloride with hydrogen on hot surfaces.REDUCING AGENTS FOR TITANIUM TETRACHLORIDEThe free energy diagram (Fig. 1) for the formation of chlorides suggests that titanium' tetrachloride may be reduced to trichloride by various reducing agents such as aluminium, zinc, arsenic, antimony, tin, mercury, silver, hydrogen, sodium, potassium and magnesium. Ruff and Neumann (1923), Thorpe (1885) , Billy and Brasseur (1935) and Seurbert and Schmidt (1892) used various metals to reduce tetrachloride to trichloride and found that the yields were invariably low and the products difficult to separate.Besides the metallic reducing agents, hydrogen may also be used to reduce titanium tetrachloride to trichloride.Goerges and Stahler (1909) obtained a deposit of violet...

Jan 1, 1956

By Jordan Scheremeta, Sudhir Tripathi, Mahfooz Alam

Injection leaching can improve leach ore recovery by displacing retained solutions, enhancing ore wetting, and creating new flow paths for efficient solution collection. This paper presents a method to assess the feasibility of injection leaching in finer-grained, potentially contractive ores (from a geotechnical slope stability perspective) using limit-equilibrium (LE) slope stability analysis and static deformation modeling. LE models were carried out by assigning peak undrained strengths to the heap leach ore material, and modeling the excess pore pressure induced during the injection leaching process using spatial function in Slope/W. Static deformation modeling was completed using the software Fast Lagrangian Analysis of Continua (FLAC) to evaluate the potential for deformations due to the excess pore pressures induced during the injection leaching process. A constitutive model was used to represent the geomechanical behavior of the leached ore material, which enables the prediction of deformation and potential stability issues resulting from excess pore-pressure induced during injection leaching process. The two-pronged approach provides a practical method to assess geotechnical impacts and guide data-driven decisions in injection leaching operations.

Feb 22, 2026

By A. Hartikainen, M. Rinne, F. Johansson, R. Yorke, L K. T. Uotinen, E. Korpi, J. Antikainen

"In order to determine the in-situ shear strength of rock joints, large scale testing is required. However, this is both expensive and difficult to execute. One possible method to overcome this may be to use photogrammetry to capture large joint surface roughness in-situ and downscale it to replica samples, which could be sheared in laboratory. In this paper, as a first part in such a method, a technique to digitize surface roughness and to produce replica samples for laboratory shear testing from a larger joint sample are presented. First, a thin granitic rock slice with dimensions of 1.75 m x 0.95 m of granitic intact rock was chosen for the study. The joint surface is fresh and created through tensile induced splitting. The large joint sample is digitized using photogrammetry. Then, one fullscale 1.7 m x 0.6 m geometry is cropped from the digitized joint geometry and then subsamples at 10x, 7.5x, 5x, 2.5x and 1x scales. All sub-geometries are scaled down digitally to produce 0.17 m by 0.06 m geometries. The geometries are used to make casting molds both positive and negative to produce samples with perfect matedness. The casting molds are 3D printed in polylactic acid plastic and C60/75 concrete is cast to produce a replica series. In addition to the creation of this replica series, two pilot replicas are also tested using a portable shear box with a 0.5 MPa normal pressure. The results from the pilot rounds are presented and discussed. Finally, suggestions for future research are given.INTRODUCTIONThe rock mass strength is in many cases controlled by the shear strength of rock joints, especially in hard rock masses. The shear strength is generally found to be influenced by several parameters, including normal stress, the basic friction angle of the intact rock, the joint surface roughness, the joint wall compressive strength, the matedness of the joint surfaces, weathering and infilling. The effect of these parameters for the joint shear strength can be evaluated in laboratory scale. However, the shear strength is known to be scale dependent. How the scale effect influences the strength is not fully understood. The general consensus is that the shear strength decreases when sample size increases, i.e. a negative scale effect (Bandis et al. 1981). However, some studies have presented contradictory results, see for example Hencher et al. (1993) and Kutter & Otto (1990). The extent and nature of the scale effect is still a question of debate (Tatone & Grasselli 2013)."

Jan 1, 2015

By M. M. Moghaddam

Charge motion is of prime importance in the efficiency of comminution in tumbling mills. Since direct observation of charge shape and its motion in industrial mill are not possible, a combination of analytical and physical studies was used to determine charge trajectory. Software packages, which predict charge motion such as the GMT (Grinding Media Trajectory) only consider the outermost layer of charge (single ball) and ignore the interactions of grinding elements. In this research, the measured charge trajectory in a 1m-diameter mill with the transparent end, called model mill, was compared with that of the GMT. Four types of polyurethane rings were accurately machined to scale down the liners arrangements at two industrial mills. To explore various charge shapes and trajectories, the model mill was operated at 55, 70 and 85% of critical speed for five levels of mill filling (10, 15, 20, 25 and 30% by volume). The angular displacement of the toe, toe departure, shoulder and charge impact point were determined from the photographs taken from the model mill. New relationships to predict charge shape and charge impact points were introduced to modify the GMT results. The relationships were validated by the model mill using the new liner of the Sarcheshmeh copper complex SAG mill. The relative error of prediction was found to be 1.1%. The results indicated that when the lifter face angle increased from 7 to 30º, the distance between the charge impact point and the toe decreased from 52 to 31º for 25% filling. This meant increasing the probability of charge impacting the toe not the liner which favoured more efficient comminution practice. After converting AG mills to SAG mills on account of liner profile change, 31% increase in throughput (from 419 to 548 t/h) in addition to 4% decrease in the product size (from 516 to 496 µm) were realized which was a significant contribution in the plant performance improvement.

Sep 1, 2012

By B. Erdem, N. Çelebi

An important problem associated with tandem dragline systems is that of matching the productive capability of individual draglines in the combination. In this paper, a dependence mechanism among draglines in a tandem system is described, and possible consequential problems in a poorly-matched system are defined. The rate of linear advance and the cost of stripping are determined as two major indications for an efficient operation. The proposed decision criteria and the underlying mechanism to select a synchronous couple are introduced and used in simulating tandem dragline systems. The developed model is tested on a hypothetical strip mine where pullback stripping is applied with a tandem dragline system.

Jan 1, 1999

By A. Pytlik, W. Masny

"Underground mining is subject to various natural hazards such as seismic events, rockbursts, fire, and gas (methane). In general, an increase in the extraction depth causes an increase in the likelihood of these hazards, especially seismic activity and rockbursts. Dynamic phenomena such as rockbursts and tremors have been recorded on six continents: Europe (Poland, Russia, Czech Republic, Germany, and Slovenia), Asia (India, and China), North and South America (USA, Canada, and Chile), Africa (South Africa), and Australia. To select appropriate mine working supports for such dynamic phenomena, the performance characteristics of such support types must be determined under both static and dynamic load conditions.This article presents information regarding the application of rockbolts in Polish underground hard-coal mines. Dynamic phenomena occurring in the mines from 2004–2013 are also characterized. A methodology developed at the Central Mining Institute (GIG) for the laboratory testing of rockbolts is presented. In this methodology, the bolts are loaded by the direct impact of a free-moving mass (up to 20 000 kg) at speeds of up to 1.2 m/s. The facilities at GIG used to test the support under static and dynamic load conditions are characterized, and the results of laboratory tests on yielding bolts with a nominal capacity of 420 kN are presented. These types of bolts are commonly used for reinforcing steel arches and the surrounding rock mass in Polish coal mines. The results of the laboratory testing of yielding bolts are discussed.IntroductionSeismic events such as rock bumps and tremors occur with great frequency during underground mining. These phenomena have been reported in such countries as Poland, Czech Republic, Germany, France, Slovenia, Russia, India, China, the USA, Canada, Chile, South Africa, and Australia (Brauner, 1991; Potvin, Hudyma, and Jewell, 2000; Kidybin??ski, 2003; Driad-Lebeau et al., 2005; Li, Cai, and Cai, 2007; Whyatt and Loken, 2009; Durrheim and Riemer, 2012; Holub, Rušajova, and Holec?ko, 2011). Descriptions of the dynamic events and their effects in the form of damage to or destruction of supports have been presented in many publications, both for hardrock mines as well as for coal mines (Brauner, 1991; Dubin??ski and Konopko, 2000; Heal, 2010; Heal and Potvin, 2007; Simser, Joughin, and Ortlepp, 2002; Kaiser and Cai, 2012; Cai 2013; Nierobisz, 2013; Mark, 2014; Masny and Prusek, 2015). One of the main goals of the research has been to develop methods, criteria, and guidelines for the selection of an optimal and safe support for mine workings located in areas of rock bumps or tremors. Example of such studies include the Canadian Rockburst Support Handbook (Kaiser, McCreath, and Tannant, 1996), or the principles presented in the literature (Li, 2010; Cai, 2013)."

Jan 1, 2016

By Nagy El-Kaddah, Thinium T. Natarajan

A modeling strategy is presented for computing the electromagnetic field and the shape of the molten metal in electromagnetic confinement systems. This strategy involves the use of a hybrid finite element/integral technique to calculate the electromagnetic field and force distribution in the melt. The free surface shape is determined from minimization of electromagnetic, gravitational and surface tension energies using the Lagrange method of multipliers. This approach was applied to model the electromagnetic levitation melting process. The model was found to accurately predict the measured shape of levitated droplets.

Jan 1, 2014

By K. Y. Haramy

A scale-invariant theory of the strength and deformability of rock masses in static equilibrium and at incipient failure is proposed. The theory provides a rationale for designing structures in rock. This paper presents results of experiments conducted by the U.S. Bureau of Mines and theoretical methods to determine and interpret in situ strength of rock masses using the borehole shear tester.

Jan 1, 1995

By James Withers, Dongbo An, Jinhong Zhang

A micro-scale investigation was carried out by applying an atomic force microscope (AFM) and attenuated total reflectance Fourier transform infrared (ATR-FTIR) spectroscopy to study in situ the adsorption of three different collectors — oleic acid, octanohydroxamic acid (HA) and salicylhydroxamic acid (SHA) — on bastnaesite in aqueous solutions. The results show that all three collectors adsorb on bastnaesite. The hydroxamic acid collectors — HA and SHA — adsorb on bastnaesite mainly in the form of insoluble metal hydroxamate. Their specific adsorption mechanism indicates that high selectivity will be achieved with a hydroxamic acid collector for the flotation of bastnaesite.

By J. K. Afidenyo

Microbial pretreatment of a double refractory gold ore was investigated using a white rot fungus, Coriolus versicolor (ATTC 20869) to improve gold extraction. A series of preliminary tests were conducted to determine the amenability of the ore to fungus degradation. Pulp density, temperature, pH and retention times were the process variables considered. Both a single. Stage and two-step processes were studied to establish process conditions. During the single stage process, the ore was contacted with the fungus culture (biotic) for 3weeks at 30°C and pH 10.0. For the two-step process, the first step involves ore contact with the culture medium (abiotic) at 45°C and pH 10.0 followed by fungal contact (biotic) at 30°C. Results indicated that carbonaceous matter is not degraded but passivated by the fungus; as preg-robbing activities dropped significantly from 18.1% to below 1.0%. The single stage process resulted in higher gold recovery than the two-step process Gold ex-traction by cyanidation of the pretreated ore was 78.9% for the single stage compared with 15.0% for the untreated ore. In the two-step process, only 73.3% gold extraction was achieved. Application of the two step process conditions to a high grade flotation concentrate, resulted in 93.3% gold ex-traction as against untreated concentrate of 30.5%. The results show that the microbial pretreatment process degraded sulfide sulfur, passivated carbonaceous matter and enhanced gold extraction from double refractory gold ore and concentrate.

Jan 1, 2014

By Carl A. Zapffe, George A. Moore

IN a previous publication from this laboratory1 the conclusion was drawn that the embrittling effect of occluded hydrogen on iron and steel must result from the precipitation of the gas within small openings through the crystal structure. A review of the literature then published indicated the real existence of crystal sub- structures of the mosaic type and gave presumptive evidence that the "rift openings" associated with hydrogen occlusion are the same as the "disjunctions" of the mosaic theory. Inasmuch as no clear conception of the actual nature of the crystal fragments and openings inherent in these theories has been established, it was considered desirable to obtain direct micrographic evidence of their true configuration. In this direction the standard methods of metallographic attack have proved useless. Recourse was had, therefore, to the direct examination of the surfaces upon which failure by cleavage had resulted from the presence of hydrogen. It was expected that such a surface, un- affected by chemical attack and undistorted by polishing, would reveal the fine openings penetrated by the gas and thus indicate the real nature of the substructures. MATERIALS STUDIED In commercial steels, defects caused by hydrogen take various external forms ac- cording to such factors as structure and purity, and to the extent to which hydrogen either occludes or produces chemical changes. The present work relates only to the well-known transcrystalline hydrogen embrittlement-"pickling brittleness"-in which elemental hydrogen occluded within the grain develops cleavage characteristics. For example, hydrogen embrittlement resulting from hydrogen reaction products is excluded from detailed study. It was also desirable, as far as possible, to have the study uncomplicated by other elements which themselves cause brittleness. Three types of iron were used. These included ingot iron, decarburized free- machining steel, and a specially prepared, aluminum-killed, electrolytic iron. This , choice allowed a comprehensive selection of unavoidable minor impurities and inclusions, which could subsequently be shown to have no specific effects on the structures within the grains. Carbon, and any other impurities free to react with hydrogen, were first removed by a preliminary annealing treatment in hydrogen. Subsequent treatment in vacuo extracted much of this hydrogen and its gaseous reaction products. The resultant ductile iron was then embrittled either by a second anneal in hydrogen, followed by rapid cooling, or by cathodic electrolysis. Group I: Prepared from Armco Ingot Iron As shown in Table I, the principal impurity in this iron was oxygen, which survived the purifying treatment to a large extent. Two series were prepared. The first (Nos. SIO-24) was purified only one day in hydrogen and dehydrogenized one day in nitrogen. Containing both hydrogen and its

Jan 1, 1943

By V. A. Marple, K. L. Rubow, S. M. Behm

"An eight-stage cascade impactor, with cut-sizes ranging from 0.056 to 18 um at a flow rate of 30 L/min, has been developed, calibrated, and tested in field programs. This impactor, called a microorifice uniform deposit impactor, has several features not normally found in cascade impactors. Ultrafine particles as small as 0.056 um are collected while keeping the pressure drop moderate by utilizing multiple nozzles (up to 2000) as small as 52 um in diameter. At each stage the collected particles are deposited uniformly over the entire impaction plate by rotating the impaction plate relative to the nozzles and by the correct radial placement of the nozzles. The particle cutoff characteristics (collection efficiency curves) of each stage and inter-stage losses were determined by means of monodisperse aerosols. The cutoff characteristics were found to be sharp and similar for all stages.Inertial impactors are widely used for the size-selective collection of aerosol particles. One reason for their wide usage is that the principle of operation is simple: a jet of particle-laden air is directed at a flat impaction plate. Large particles are collected on the plate while smaller particles follow the airflow out of the impaction region and are not collected. The division between the size of particles collected and those that are not is quite sharp. Secondly, the particles in an impactor are classified by their aerodynamic diameter (an important size parameter in many fields of study, including those related to respirable particle health effects). Thirdly, it is easy to collect particles in discrete size ranges by passing the aerosol through a number of stages (one stage consisting of a nozzle and impaction plae) in series, with each subsequent stage collecting particles smaller than the one before it. This is known as a cascade impactor. Finally, impactors can classify particles over a wide range of particle sizes: as low as 0.005 um (Fernandez de la Mora et al., 1990) and as large as approximately 50 um (Vanderpool et al., 1987).This paper describes a general purpose cascade impactor that has been developed in our laboratory and used in a variety of studies including visibility studies (McMurry et al., 1986; McMurry and Zhang, 1989), underground mine studies (Marple et al., 1986; Rubow and Marple, 1988; Rubow et al., 1988), and general atmospheric pollution studies (Macias et al., 1981; Dzubay et al., 1984). The impactor, called a microorifice uniform deposit impactor (MOUDI model 100, MSP Corp., Minneapolis, Minn.), is the integration of two earlier impactor de¬velopments: the microorifice impactor (M01) (Kuhlmey et al., 1981) and the uniform deposit impactor (UDI) (Marple et al., 1981).The MOUDI has several features normally not found in other cascade impactors. These include collection of particles as small as 0.056 um in aerodynamic diameter with a moderate pressure drop, uniform particle collection on the impaction plates, inter-changeable impaction plates to allow for the plates to be easily and quickly changed in the field, and covers for these substrates to provide a means for safe storage and/or transport of the collected particles to the laboratory for analysis."

Mar 1, 1992

By Richard A. Shulkosky

The American Iron and Steel Institute (AlSO, in conjunction with the U.S. Department of Energy (DOE) jointly funded the development of a mechanical properties model for Hot Strip Mills. INTEG process group, inc. validated an enhanced version of the model under a project funded by the AlSI/DOE Technology Roadmap Program (fRP). The Hot Strip Mill Model (HSMM) version 6.0 allows users to easily set-up their mill configuration, simulate a rolling mill schedule and calibrate the model for a variety of grades of steel. Starting from reheat furnace drop out, the model simulates roughing mill stands (reversing and continuous), heat retention equipment (coil box and covers), finishing mill stands (tandem and Steckel mills), the run out table and the mill exit area. The HSMM uses a series of physical models to calculate both the thermo-mechanical and the microstructure evolution of steel being processed in a hot mill to predict its final mechanical properties. The enhanced HSMM was validated using a multitude of samples from several steel companies. Excellent agreement was obtained for tensile strength. The supporting steel companies have utilized the model for a variety of practical applications. Keywords: Process Modeling, Microstructure Evolution, Mechanical Properties

Jan 1, 2003

By S. A. Matthes

This Bureau of Mines report describes a system for the dissolution of metal and mineral samples using a microwave heat source. Samples and an acid mixture are placed in sealed polycarbonate vessels. The vessel contents are heated using microwaves, digested for 2 min, and quickly cooled. After the solution is brought to a final volume, the vessel contents are heated an additional 2 min in the microwave oven. Using this method, a slag, a feldspar, and a Ni-Cu alloy were dissolved and analyzed by atomic absorption spectroscopy. Values obtained for Na, K, Cu, Ni, Si, Mg, Mn, Ca, Al, and Fe agreed with certified values and had an average relative standard deviation of 1 pct. This system results in a significant savings in time and expense over traditional methods of sample dissolution, and is ideal for preparing solutions for analysis by atomic absorption, plasma optical emission, or X-ray spectroscopy.

Jan 1, 1983

By John A. Baker

S EVERAL FACTORS have brought about a vastly greater interest in the gold-mining industry in the last two or three years. Outstanding is the fact that there is an open market at a fixed price for all that can be produced. a condition that holds for no other commodity. Costs of production have decreased greatly, owing to lower prices of supplies and equipment and lower wages. Improved metallurgical processes and equipment are also available. To big new gold district is being opened up but virgin ground is being prospected with some success in many of the more remote parts of the world and right here in the United States many old properties are being reopened 111 the light of present condition<, tailing dumps are being re- worked, and profitable leases taken on abandoned property. Many of the men who are becoming interested in gold are mining engineers whose experience has all been with base metals heretofore: some are engineers with no mining experience; some are not engineers at all but men who cannot find profitable employment in their usual field of activity and are attracted by the age-old lore of the yellow metal. Some are business men with a little money and an idea that under present conditions gold mining offers a safer investment for it than most other kinds of business. It is to those more or less inexperienced new- comers in the gold-mining industry that this article i4 ad dressed. Those who are connected with the large gold mines or who have had rears of experience with the small ones will find in the following pages little or nothing of interest but it is hoped that the newer generation of small mine operators, on whom the healthy growth of the industry depends so much, may find here some helpful hints.

Jan 1, 1932

By R. W. Lake

The decision to develop an ore body can lead to multi-million dollar profits, or equally substantial losses. Accordingly, the effort required to adapt a valuation model to the specific proposal at hand, or even the development of a new model from basic principles, is clearly warranted. In the formulation of a model of this nature, one is faced with some major questions. For example, with the long term obligations that it implies, on what basis should a decision to initiate mining operations be made? Furthermore, how can the vagaries of inflation and the uncertainties that shroud the future be accommodated? Beyond the general principles by which mineral deposits are evaluated, specific cost behaviour is a function of the geology of the deposit, and of the mine design. Moreover, mine design, during the life of the mine, must be a continuing process somewhat akin to dynamic programming. An initial, apparently optimal, design is selected and mining commences. With production, a continual process of information updating leads to revisions. Thus if the maximum value is to be obtained, the mine design must be adjusted to conform to the changed conditions.

Jan 1, 1977

By George H. K. Schenck

The greatest difficulty in choosing solutions to environmental problems ill a free market economy (such as ours) stems from two factors: adverse effects of pollution are largely external to the producer, and expenditures made that improve the environment result in benefits that are free to all, These two factors are sufficient to explain why the solution to many environmental problems is to be found in public action. Such action is most likely to be economic- ally efficient if it can be carried out so that industry retains the freedom to make decisions based on the free market. Two examples-a zoned discharge fee and innovation of recycling systems-illustrate the type of changes in the mineral industry that would lead to an improved environment. The first requires that ownership of the relevant public resources be vested in control agencies. The second indicates that profit opportunities existing in solid waste recycling should facilitate innovation. Both concepts can reduce environmental loadings but will require imaginative thought from persons in the mineral industries.

Jan 1, 1971