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By Louis, Jordan

THIS paper presents in an abbreviated form the chief points of interest in an investigation of the tarnish-resistant qualities of silver alloys, an investigation which has been carried out as a joint research by the Bureau of Mines and the Bureau of Standards and will later be reported in detail in an official publication from these bureaus. In 1923 a Commission of Gold and Silver Inquiry was created by a Resolution of the U. S. Senate to study the causes of the depressed condition of the gold and silver industry. In cooperation with this commission the Bureau of Mines made a preliminary survey to determine in what ways, if any, it might be possible to increase the uses of silver. One of the possibilities indicated by this survey was the development of silver alloys which should be non-tarnishing, or at least less-tarnishing, than the usual sterling silver (copper-silver). The preparation of a rather wide variety of silver alloys and the determination of their behavior under accelerated tarnish tests in the laboratory was therefore undertaken by the Bureau of Mines and Bureau of Standards as a joint investigation.

Jan 1, 1927

By C. J. Wilhelm

The disposal of brines produced with crude petroleum and natural gas has been a long-continuing problem to oil and gas operators as well as to farmers and stock-raisers in the vicinity of producing fields. An impartial appraisal of conditions pertaining to the problem of brine disposal leads to the conclusion that study of the technical consideration, with proper weight given to the economic and social factors, is the most desirable approach to this problem. Brine disposal is a problem of such magnitude in certain areas in the State of Kansas that in August 1934 a cooperative agreement was made between the Kansas State Board of Health and the U. S. Bureau of Mines for a cooperative technical study of methods of brine disposal.

Jan 1, 1935

By D. L. Boreck

With increasing land development, the potential of fatalities from abandoned mine shafts increases. To minimize potential liability, shaft closure should be a critical part of mined land reclamation. The Bureau of Mines is conducting research into using lightweight foam concrete in sealing abandoned coal mine shafts. A demonstration seal consisted of a 3m thick foam concrete plug to provide lateral stability inside the shaft. A high density concrete cap provided load-bearing capacity for a 100-year service life. The USBM has also completed research into changes in foam concrete when it is pumped or dropped from different heights. It is concluded from the research that foam concrete can undergo significant air loss with pumping or dropping. This foretells significant changes in the characteristics of the concrete as well as an increase in the weight and cost of the in-place concrete seal. When using foam concrete to seal abandoned mine shafts, care must be taken to minimize air loss during placement.

Jan 1, 1994

By J. W. Eckerd

The crushing of chestnut-size (1-5/8 by 13/16 inch) Pennsylvania anthracite in four commercial crushers (impact) jaw) hammer-mill) and gyratory types) was studied by the Bureau of Mines to determine which could produce the largest proportions of buckwheat Nos. 1 and 2 sizes (9/16 by 3/16 inch). Single pass dry and wet crushing techniques and the effect of stage crushing were evaluated. Calculations were made to show the effect of closed-circuit reduction on production rates and yield of the various sizes. The data show that the gyratory crushers produced the greatest percentage of the desired sizes. A ring-type hammer mill produced the greatest tonnage of buckwheat No.1 and rice (14.9 tons per hr.) during dry grinding tests) but the yield of these sizes was only about 55 percent) as compared with 62 to 70 percent for the gyratory crushers. The impact and jaw crushers produced the smallest amount of buckwheat and rice and the largest quantity of oversize material.

Jan 1, 1960

The properties required for a com-pound to form useful thermoelectric materials are described. Uranium compounds which might have these properties are reviewed. Several of these compounds have been prepared and fabricated into compacts. The apparatus used for hot pressing, and for the measurement of thermoelectric power, electrical conductivity and thermal conductivity, is described. Detailed attention has been given to the properties of the nitrides. Preliminary studies on a number of other uranium compounds are reported. The figures of merit of the best materials so far examined are one-tenth of those necessary for a useful thermo-electric material. THE efficiency of thermoelectric materials for power generation and cooling is determined by their figure of merit, Z = a2 a/K, where a, a and K are thermoelectric power, electrical conductivity and thermal conductivity, respectively. It is well known that the largest values of Z are achieved with semiconductors (1). High mobility of charge carriers is necessary for simultaneously high thermoelectric power and electrical conductivity.The properties required for a com-pound to form useful thermoelectric materials are described. Uranium compounds which might have these properties are reviewed. Several of these compounds have been prepared and fabricated into compacts. The apparatus used for hot pressing, and for the measurement of thermoelectric power, electrical conductivity and thermal conductivity, is described. Detailed attention has been given to the properties of the nitrides. Preliminary studies on a number of other uranium compounds are reported. The figures of merit of the best materials so far examined are one-tenth of those necessary for a useful thermo-electric material. THE efficiency of thermoelectric materials for power generation and cooling is determined by their figure of merit, Z = a2 a/K, where a, a and K are thermoelectric power, electrical conductivity and thermal conductivity, respectively. It is well known that the largest values of Z are achieved with semiconductors (1). High mobility of charge carriers is necessary for simultaneously high thermoelectric power and electrical conductivity.

Jan 1, 1963

By F. J. Sotillo

Mining in Peru is mainly concentrated on metallic and polymetallic ores of gold, copper, lead, zinc, silver, tin, iron, etc. However, little has been done to develop extensive and rich non-metallic or Industrial Minerals deposits with the exception of some silica and phosphate deposits. This paper presents the characterization and metallurgical studies for the development of a feldspar deposit. These studies showed that the special characteristics of the ore, such as high porosity, high Al2O3 content, low clays content, and sized material allowed us to obtain commercial products applying relatively simple and low cost concentrating unit operations. The characterization studies showed that the feldspar products contained no quartz and about 90% of albite (NaAlSi3O8). The 14x40-mesh size fraction product analyzed 5.91% Na2O, 22.56% Al2O3, 65.73% SiO2, 0.65% K2O, 6.50% CaO, and 0.40% Fe2O3; whereas, the 40x150-mesh size fraction product analyzed 6.22% Na2O, 24.30% Al2O3, 60.80% SiO2, 0.91% K2O, 7.06% CaO, and 0.54% Fe2O3. These products could be used for manufacturing glass, ceramics, refractory, and filters in different applications. In addition, Middlings, could be used as insulation material due to its porosity (bulk density of 0.828 Kg/dm3), analyzing 4.46% Na2O, 15.7% Al2O3, 67.2% SiO2, 2.57% K2O, 3.94% CaO, and 4.24% Fe2O3. The material showed a sphericity of 0.77, a roundness of 0.68, and acid solubility of 13.3025% on only washed and 2.72% effective for clean material suitable for use in these applications. No selective accumulation of the valuable mineral was observed at any specific size fraction. However, iron and titanium bearing impurities trended to concentrate in fine fractions (minus 70 mesh -212 µm-). Metallurgical studies demonstrated that this feldspar ore required sizing at 14x40 mesh and 40x150 mesh to render commercial products. In the case of the 14x40-mesh size fraction, the process involved magnetic separation, gravity separation, and flotation for feldspar (direct flotation) using a blend of primary and condensate amines. However, the reverse flotation for mica-biotite and iron bearing minerals was also possible using petroleum sulfonate. The metallurgical process for the 40x150-mesh size fraction required magnetic separation and reverse flotation of iron and titanium bearing minerals, the feldspar being reported in the sink material. Commercial products from this feldspar deposit for glass, ceramics, refractory, and filtration; and for the manufacturing of insulation material were obtained.

Feb 23, 2014

By A. W. Deurbrouck

This Bureau of Mines report describes the preparation characteristics of the significant coalbeds from which samples could be obtained in Upshur County, W. Va. One of the 14 samples collected was of metallurgical quality as received, 6 could be sufficiently upgraded to provide acceptable products, and 7 could not be upgraded to metallurgical quality because of their high sulfur contents.

Jan 1, 1967

By S McKnight, L Koroznikova, S Hall

Mineral sands represent an important new resource being developed in the Murray Basin, including parts of western Victoria. This paper will outline a simple methodology for mineral sands characterisation, developed as part of the AMIRA-managed project P777 æThe Development of Heavy Suspension Techniques for High Density Separations (Replacement of ClericiÆs Solution)Æ. This project is currently sponsored by three multinational mining companies (De Beers Consolidated Mines, Iluka Resources Limited and Rio Tinto Limited) and is developing an innovative laboratory mineral characterisation procedure that will allow the replacement of the currently employed highly-toxic chemicals.Mineral sand resources almost always contain more than one valuable (and relatively heavy) mineral. Titanium minerals are found with a large range of titanium contents, giving rise to density variation and often subjective mineralogical descriptions. Companies tend to rely on laboratory heavy liquid separation in the evaluation of samples arising from exploration, mining or metallurgical processes. Unfortunately, there are only a limited number of high density (æheavyÆ) liquids and these tend to be more toxic as their density increases. Low-toxicity inorganic solutions, based on tungsten compounds, have been developed that can be utilised at relative densities (RD) up to 3.0. However, beyond this value currently only organic liquids can be used. Diiodomethane (methylene iodide) having a relative density of 3.31 is commonly used; however, this presents significant health and safety hazards. Mixtures of thallium formate and thallium malonate were found in the early 1900s by Clerici to provide liquids having specific gravities between 4.0 and 5.0, hence æClericiÆs solutionÆ. For the characterisation of the heavy components of mineral sand deposits (eg anatase sg 3.9, rutile sg 4.2, ilmenite sg 4.4 û 4.7 and zircon sg 4.6 û 4.8) there is currently no heavy liquid alternative to ClericiÆs solution. ClericiÆs solution is highly toxic and testing is now conducted by very few laboratories worldwide with costs reflecting the chemical costs (though extensive efforts are made to recover and reuse the liquid, plus the requirement of its removal from the mineral samples), the infrastructure costs and health and safety regimes (eg blood testing of exposed staff, inventory management). A simple laboratory technique of density fractionation is being developed, employing suspensions of fine tungsten carbide particles in lithium heteropolytungstate (LST) solutions, that can replace ClericiÆs solution in the evaluation of fine mineral sands samples (eg -250+150 microns). The developing methodology that can achieve low-cost, low-toxic separations at relative densities above 5.0 will be outlined and the comparison of results with ClericiÆs solution presented.

Jan 1, 2006

By M. L. Glenn

The Bureau of Mines is conducting research on substitutes for chromium-containing alloys in order to conserve imported critical and strategic materials. Part of this research concentrates on finding low-chromium substitutes for heat-resisting stainless steels for the temperature range 600° to 800° C. Ferritic alloys are emphasized that have oxidation resistance provided by chromium contents as low as 10 pct and stress rupture strength provided by the precipitation of the chi(X)-phase intermetallic compound, (Fe36Cr12 (Mo, Ti)10). Initially, research was concentrated on selecting an alloy composition having a minimum chromium content with strengthening provided by the X-phase. An Fe-(10-12 pct)Cr-6 pct Mo-(1.5-2.0 pct)Ti alloy was selected. After the alloy selection, the tensile, stress rupture, and oxidation properties were determined. Stress rupture properties were found to be similar to those of 304 stainless steel. However, the alloys possessed brittleness during both stress rupture and tensile testing, possibly as a result of too high a content of molybdenum and titanium. Higher than expected oxidation rates were found that may be caused by the high molybdenum content.

Jan 1, 1984

By E. C. Harder

BRITISH Guiana, Great Britain's only South American colony, may be reached by very comfortable steamers, both from North America and Europe. The trip from North American Atlantic ports requires about 12 to 14 days; that from Europe about 18 to 20 days. A number of steamship lines, including Canadian, American, and Dutch, have regular sailings between North America and British Guiana, with calls en route at various interesting ports in the West Indies and northern South America. Moreover, several lines, including British, German, and French, have steamships operating regularly between Europe and the West Indies. Indeed, so popular have the West Indian voyages become in recent years that, during the winter months, special cruises in considerable number are organized for many vessels that ply in the trans-Atlantic service in the summer. A trip to British Guiana, therefore, has become a delightful experience. After visits at the various attractive Leeward and Windward islands and Trinidad, the approach to the low, flat, British Guiana coast, with its muddy coastal waters extending for many miles offshore, is somewhat of a contrast. Arrival in Guiana waters is signalled by the appearance of the modern high-power Demerara Light, located "on a shoal about twelve miles from the mouth of Demerara river. From this point, if the tide is right, a pilot takes the steamer across the bar, eight to ten miles offshore, and into Georgetown harbour. At high tide, the water above the bar ranges from 15 to 18 feet in depth, depending on whether it is neap tide or spring tide; at low tide, the corresponding depths are 9 to 11 feet. As the bar is of soft mud, however, it is usually possible for vessels to pass over it with a draught of about two feet in excess of that indicated by the tide tables. Upon nearing the shore, one sees first the Georgetown wireless towers, then the light-house and the tall chimneys of sugar mills and of various factories in Georgetown, and finally the palms and other tropical trees and the houses of Georgetown itself along the sea shore and the east bank of Demerara river. Extensive wharves operated by various exporting and importing companies stretch along the river bank and activity prevails in Georgetown harbour. The principal exports are sugar, rice, gold, diamonds, bauxite, balata, lumber, fruit and other tropical products. The imports are food-stuffs, wearing apparel, and manufactured materials of many kinds.

Jan 1, 1936

By F. Sillers, R. T. C. Rasmussen

"INTRODUCTION This is the third report of investigations by the Bureau of Mines in cooperation with industry to establish the value of electrolytic manganese in the manufacture of ferrous and nonferrous alloys. The manganese was produced by the Bureau at its Boulder City pilot plant from domestic ores and by the process developed by it. 4/ The work was done under the direction of R.S. Dean, assistant director, Bureau of Mines, and R. G. Knickerbocker, chief, metallurgical branch. The first report dealt with the use of electrolytic manganese in the manufacture of stainless steels 5/ and the second with its use in acid electric or open-hearth low- and medium-carbon steel castings. 6/The present report treats of the use of electrolytic manganese in the manufacture of low—carbon rimmed and killed steels. A résumé of these three investigations and two others appeared in the magazine STEEL. 7/ Further reports will be published as tests are completed at some 70 industrial plants. All tests were made on full—scale heats or melts, and the resultant product was processed and used commercially."

Jul 1, 1945

By Clayton A. Landsidle

There has been little change in timbering methods in anthracite mines for 75 years, and technical information on strata control is almost wholly lacking. In order to assist the industry to establish technical data, the Bureau of Mines and a Northern field operator are cooperating in underground experiments, the first phase of which has been to investigate pneumatic packing. The four principal methods of packing in mining are hydraulic, pneumatic, mechanical, and hand. The hydraulic pa caring system is believed to have originated at Shenanodah, Pa., in 1864,4/ to prevent destruction of a church by surface subsidence after underground coal mining. This method was used again in 1884 to arrest an underground fire at Buck Ridge colliery, near Shamokin, Pa. In 1901 hydraulic packing was introduced to Europe in Upper Silesia, where it gained in popularity owing to the availability of large quantities of sand suitable for flushing .5/ Hydraulic packing has a number of disadvantages. Chief among these are the softening effect of large quantities of water on the mine floor conducive to heaving action; drainage and punning costs; and the inability to fill roof cavities completely in flat beds.

Jan 1, 1953

By W. G. Miller

A series of computer programs for the analysis and mapping of coal-related data has been developed at the Illinois State Geological Survey; these programs, known collectively as the Coal Data System, represent the latest achievements in computer processing of geologic data at the Survey. Building upon programs previously developed in the Survey's Computer Services Unit, they expand the scope of the computerized data base that the Survey has been using for analyzing coal-related data. The System was partially developed during a joint study by the Illinois State Water Survey and the Geological Survey entitled, ?Coal and Water Resources for Coal Conversion in Illinois.? 2 In that study the available coal reserves more than 42 inches thick in the two principal coal seams throughout the state were mapped. The System was used to calculate the coal reserves and to report the average number of tons of coal in place per square mile in each township (Figures 1 and 2). It also produced maps of the coal features of sufficient quality to be printed on material that was scribed as master copy for the printing of full-color 1:500,000 scale maps (see Figures 3 and 4).

Jan 1, 1975

By E C. Holloway

"The financial valuation of mining assets has a number of fundamental differences to the valuation of many other asset groupings. One such difference is that typically, the greater proportion of both the cost and revenue sides of the cash flow are inherently governed by systemic market forces.As a result, the range of outcomes for the valuation of each mining asset is more unpredictable, with higher levels of risk and uncertainty. In contrast, the management function of many other non-mining businesses or industry groups can control at least a portion of the cash flow by maintaining the margin or controlling the sales price. The management teams of mining businesses and operations typically have limited options, and are thus price-takers for both costs and revenues. As mining is an inherently cyclical industry, large, long-life operations can exist through several price cycles, making valuation both subjective and challenging.The outcomes of both static- and stochastic-based valuations, as well as the internal probabilities of the associated cash flow statements, are significantly impacted when the correlations between the appropriate parameters are quantified, modelled and incorporated into the valuation framework. The appropriate parameters for correlation modelling primarily include those that are governed by systemic market forces. Applying this process results in a different risk profile for the asset by allowing the risks resulting from systemic market movements to be more accurately quantified and then objectively minimised. This process also reduces the level of residual uncertainty in the valuation outcome.This paper presents a valuation methodology to pragmatically incorporate this level of valuation sophistication and statistically quantify the associated increase in the level of confidence of the valuation outcomes reported.CITATION:Holloway, E C, 2016. Correlated valuation methodology, in Proceedings Project Evaluation 2016, pp 181–200 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By Lawrence G. Houk

Monazite sand is the only commercial source of cerium, other rare-earth metals and thorium. Although used in rather small quantities, it is essential to many industries. The United Unites is entirely dependent upon British India and Brazil for its supplies. Monazite sand or sand imported under the tariff classification for monazite was shipped to the United States in greater quantities, in 1940 than ever before. About 75 percent of our imports was from British India and most of the remainder from Brazil. If need be, Brazilian production can be expanded to supply all of our essential requirements, and the theater of war expands in the Pacific Brazil may supersede India as the principal source. PHYSICAL PROPERTIES The mineral monazite is generally honey yellow or may vary from greenish yellow to clove brown. The grains are small and resinous in luster, and range from subtranslucent to opaque. The specific gravity varies

Jan 1, 1943

By M. Copeland

Phase relations of gadolinium alloyed, up to 40 weight-percent (wt pct), with AISI 304-type stainless steel were established. Body-and face-centered cubic iron-rich solid solution phases and several intermetallic gadolinium-containing compounds of variable composition that approximated the formulas Fe9Gd, Ni7Gd2, Ni3Gd, Fe2Gd, NiGd, and NiGd3 were identified. The intermetallic phases Fe9Gd and Ni7Gd2 were noted to melt at about 1,080° C at about 0 to 2 wt pct gadolinium. The melting temperature of Fe9Gd increased with increas-ing gadolinium content to a plateau at about 1,230°C and 30 wt pct gadolinium, and the melting point of Ni7Gd2 decreased to a plateau at 900° C and 30 wt pct gadolinium where Ni3Gd, NiGd, and Fe2Gd coexist. Body-centered cubic iron solid solution was stable from 1 to 2 wt pct gadolinium to higher contents, 30 wt pct gadolinium or possibly more, and face-centered cubic iron up to 12 wt pct gadolinium below 1,200° C. The stability of these phases above 1,200° C was not resolved except for the mel points. A limited number of fabrication variables as well as mechanical and corrosion properties of alloys containing up to 5 wt pct gadolinium were studied. Equilibrating and forming operations were best conducted at about 940° to 1,080° C. Some variability in the yield and tensile strengths of alloys was noted; however, there was a continual decrease in ductility and impact resistance with increasing gadolinium contents. The resistance of gadolinium alloys to corrosion in water at 354° C was about the same as stainless steel.

Jan 1, 1965

By G. K. Derby

The Bureau of Mines investigated methods for removing dragline bucket wire rope terminations with the objective of finding efficient methods that are safer than the method most commonly used at U.S. surface mines, which is to use the explosive impact of a projectile fired from a cannon to remove the rope termination. Removal of a wire rope termination for repair or replacement requires separation of the wedge and socket that lock together to secure the rope end. The Bureau investigated currently used methods and improved upon and tested two safer alternate methods for removing wire rope terminations. A cannon test program was conducted, using 40-and 50-gr primer (detonating) cord, to establish the possible force produced with a 4-in-bore cannon and a 55-lb projectile. Wedge and socket units supplied from cooperating mines were separated under controlled conditions to establish data on separation force requirements. The two alternate methods investigated were use of the force generated by (1) a pendulum ram and by (2) a portable hydraulic pusher. Both methods are capable of providing sufficient force to effect wedge and socket separations on draglines with up to 78-yd3 buckets under normal conditions.

Jan 1, 1984

By Crystal Poon, Paul Matlashewski, John Morkeh, Kathryn Dorfschmidt, Jose Carvalho, Chad Williams

Rockfall hazards are ubiquitous in mining environments making their control critical for safe mining operations. The complex processes involved in rockfall events necessitate a probabilistic modeling approach with well-calibrated material properties. The controls designed to mitigate rockfall hazards need to be reliable, efficient, and safe to deploy to meet the constraints present at an active mine. This paper presents an innovative solution to rockfall at Rio Tinto’s Bingham Canyon Mine. The solution incorporates the site-specific calibration and creation of a predictive rockfall model with the design, field testing, implementation, and monitoring of the rockfall controls.

By N. A. Beier, N. Slingerland

"Oil sands tailings impoundments rank among the largest (spatially) in the world, covering a total of approximately 220 km2 of northern Alberta, Canada. A preliminary geomorphic design for an oil sands tailings storage facility (TSF) landform was completed with the goal of eventual closure and delicensing in mind. This paper outlines methods identified during the design process that streamline closure when implemented early in the mine planning and TSF design stages. With most oil sands TSFs currently in active operation (and some still in the planning stages), geotechnical engineers and mine planners have the opportunity to make operational and design decisions, such as those outlined herein, that are likely to improve the geotechnical and environmental performance of the landform post closure. ¦ KEYWORDS Alberta, Athabasca oil sands (AOS), Landform design, Reclamation, Sand dam, Tailings storage facility (TSF) RÉSUMÉ Les bassins d’accumulation des résidus issus des sables bitumineux font partie des plus grands (en termes d’espace) au monde, et couvrent au total environ 220 km2 dans le nord de l’Alberta, au Canada. Une conception géomorphologique préliminaire a été réalisée pour le modelé d’une installa¬tion de stockage des résidus (ISR) issus des sables bitumineux en gardant à l’esprit la fermeture et le retrait de permis à terme. Cet article présente les méthodes identifiées pendant le processus de conception qui simplifient la fermeture lorsqu’elles sont mises en oeuvre dès les premières étapes de planification de la mine et de conception de l’ISR. La plupart des ISR issus des sables bitumineux se trouvent dans des exploitations actives (dont certaines en sont encore aux étapes de planification), aussi les ingénieurs géo¬techniques et les planificateurs miniers ont la possibilité de prendre des décisions en termes d’exploita¬tion et de conception, telles que celles présentées ici, qui pourraient améliorer la performance géotechnique et environnementale de la phase suivant la fermeture du modelé. ¦ MOTS CLÉS Alberta, assainissement, barrage de sable, conception du modelé, installation de stockage des résidus (ISR), sables bitumineux de l’Athabasca (SBA)INTRODUCTION The Athabasca oil sands (AOS) underlie 140,200 km2 of land in northeastern Alberta, Canada. Oil sands located within 100 m of the original surface account for 4,800 km2 of the total area and are considered to be economically mineable (Figure 1; ERCB, 2009). Bitumen, the thick, tar-like substance contained in the AOS, is extracted through open-pit mining and in-situ methods. During mining, the overburden is first removed as waste and the sandy, bitumi¬nous ore (“oil sand”) is transported to processing facilities via conveyor belts and 400 t trucks. Warm and hot water, as well as process aides such as caustic soda, are mixed with the oil sand, creating a slurry from which bitumen is mobilized and extracted. The resulting slurry waste product is called “tailings” and contains mineral solids, process water, and small proportions of unrecovered bitumen (Masliyah, Zhou, Xu, Czarnecki, & Hamza, 2004; Sobkowicz & Morgenstern, 2009)."

Jan 1, 2019

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