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By M. C. LAKE

THE industrial development of the United States has been stimulated by the presence of high-grade iron ore in the Lake Superior district. These great deposits have been susceptible to economical extraction and are conveniently located for cheap lake vessel transportation to the great consuming centers. The district furnishes from 80 to 85 per cent of the iron ore annually consumed in the United States, and a full understanding of the available supply of this great commodity is so important that it is well to consider whether or not the industrial supremacy and national independence attained as a result of the abundance of cheap ore are permanent. The enormous deposits of high-grade ore available in the Lake Superior district have been the foundation upon which the vast industrial structure of the steel and allied industries has been built. It is extremely important to the country as a whole, and especially to those States and communities now dependent on Lake Superior ore for their prosperity, that their industries shall retain the particular advantages with which they are now endowed, and that a generous supply of high-grade raw material be available for their consumption at a satisfactory cost. The steel industry is so basic and fundamental that any fluctuation in the cost of its finished products as determined by the supply and cost of the raw materials involved in its manufacture will necessarily affect the business of a wide variety of industries which are dependent on it.

Jan 1, 1926

By Dirk van Zyl

Pad construction costs can impact the overall economics of heap leach projects. Pad construction costs for single-and double-lined pads, using various designs, are listed for a typical small and large project. Double-lined pads are now more often required by regulatory agencies. Unless such designs reduce the risk of site specific contamination significantly, the extra costs cannot be justified from an economical viewpoint. Specific attention is given to the short project life (typically five years) of heap leach projects. A few numerical examples are presented to demonstrate the overall economic impacts of these costs on economic parameters.

Jan 1, 1990

By R. J. Sweigard

The effects of postmining land use planning are addressed in this paper. These effects may include savings in reclamation costs and increased value of reclaimed land. However, this may result in greater planning costs and possible delays in production. Therefore, an economic analysis was undertaken in an effort to determine the importance of each potential result and to quantify the overall economic impact of postmining land use planning. A discounted cash flow analysis was performed using a surface mine cost model to analyze the sensitivity of selling price to changes in various postmining land use planning parameters. As a result of this analysis it was determined that the profitability of a project is most sensitive to delays in production, particularly, if the delay occurs after major investments have been made. Many methods have been proposed for evaluating postmining land use alternatives (Sweigard and Ramani, 1981). Both quantitative methods, such as benefit-cost analysis (Brock and Brooks, 1968), and nonquantitative methods have been proposed. The application of one specific analytical method is pursued in this paper.

Jan 1, 1985

By Bradley Stoughton

It is very easy to reduce iron ore at a temperature well below its melting point and produce a more-or-less-pure metal which can be used directly for implements, tools, or machines. This simplicity has been the cause of much money loss by persons who were so satisfied with the successful operation of a process that they paid all too little attention to the commercial aspects of it. How easy a direct process is may be gleaned from the fact that it was practised with some -success by primitive man, and has been in almost continuous operation in one form or another for a period of probably 4,000 years. The production of steel in ton lots, beginning about 1860, brought a new phase into the economic situation, which, however, had been already greatly modified in 1784 by Henry Cort's invention of purifying pig iron. Direct processes survived both of these revolutions, under special geographical conditions, even up to the last few years of the nineteenth century, but ceased to have any general use as the basis of supply for structural, machine, or tool industries even in countries which could have manufactured iron by a direct process, but, instead, imported the product of established iron and steel processes. And this is still the situation today, notwithstanding the invention of an incredible number of 'new' processes since 1900, most of which are abandoned, and only survived as along as their financial backers were willing and able to Jose money. Probably none of these processes failed to work pretty well, and all seemed to show a handsome profit on paper.

Jan 1, 1930

By Joseph E. Pogue

THERE are two methods employed in the development of oil pools. The older and dominant method is one in which the primary object is the protection of the underground deposit from drainage through competing wells, and considerations of efficiency of extraction and cost of production are subordinated thereto. The newer and less prevalent method is one in which maximum efficiency and minimum cost are the first objectives and developments to these ends may proceed undisturbed by the exigencies of competitive drainage. The second method has developed mainly in pools under single ownership and the term "unit operation" has come to be applied to this procedure. A single ownership, however, is not essential to the method, for unity of operation may be achieved by agreement under split ownership, or even by a concert of enlightened purpose. There are examples of unit operation where neither the ownership nor the management is a unit, but merely where unity of procedure has been attained, as is the case of the Yates pool. .Throughout this paper unit operation is used in its broad sense without implying sole ownership or single management, although unit operation is more conveniently attained where these conditions are present.

Jan 1, 1930

By Simón Díaz‑Quezada, Ernesto Arancibia, HUMBERTO ESTAY, Tomás Vargas

In situ leaching (ISL) is an attractive technique that enables copper recovery from copper oxide ores that are either low-grade or located at depths too great to be economically exploited through conventional methods. At present, in situ leaching (ISL) has been applied to intact copper oxide ores, in particular, those which (i) present a good natural permeability and (ii) do not require preconditioning. Many copper oxide ores present low natural permeability. These are located above the water table and need preconditioning for the ISL application. The present work shows an economic assessment of the application of ISL to this type of copper ores. The preconditioning technique considered here involves the application of partial mining by sublevel stoping by removing a small fraction of the ore. This technique results in forming an ore bed with good permeability and good solution collection at the stope base. The economic assessment of this approach suggests that it can be implemented with positive net present values to copper oxide ores located at depths in the 100–300 m range, with copper grades above 0.4%. The maximum acid consumption values are below 52.5 kg/t, with blasting procedures designed to produce an ore bed with an average particle size below 6″. The breakdown of operational costs indicates that the mining cost is still very high, accounting for up to 60% of the total operating costs. Therefore, optimizing mining procedures is still necessary for improving the economic outlook of this approach and thus expanding the application field of ISL.

Feb 4, 2023

By Chester O. Ensign

Many publications to date have advocated under- seas mining operations, optimistically overlooking the paucity of information on mineral distribution and the ocean environments in which minerals occur. Such articles (smattered with opinion, as is this article) are herein tempered by my more conservative views on the economics of mining under the seas. For purposes of this paper, underseas mining refers only to the deeper surficial deposits of the continental shelf and the deep sea floor, i.e., the deposits of phosphorite and manganese nodules.

Jan 9, 1966

By B. P. Sullivan

This paper describes how the author projected the economic benefits of a proposed coal liquefaction project based in Pennsylvania. These benefits were assessed in a successful effort to garner government support for the project. The projections considered such issues as increases in employment, wages, and tax receipts to state and local government, plus other less-obvious benefits, such as site remediation. The paper explains how sponsors of similar projects can use economic projections in making meaningful and compelling presentations to federal, state and local authorities.

Jan 1, 2000

By J. F. T. Agapito

Significant economic benefits can result when rock mechanics is applied within a practical framework and integrated within the other engineering functions of the mine organization. This requires management support and understanding of rock mechanics as a practical tool to help attain high standards of safety, productivity and resource recovery. For such an approach, a long-term geotechnical program is needed in most operations to build an adequate data base and to ensure that design and ground control issues are handled in a cost-effective manner. This paper presents a summary of four case studies where significant economic benefits were realized with the help of rock mechanics. Although cost savings were not computed, the economic benefits are obvious and clearly impacted the mine operations favorably.

Jan 1, 1990

By J. F. T. Agapito

Significant economic benefits can result when rock mechanics is applied within a practical framework and integrated within the other engineering functions of the mine organization. Such application and integration requires management support and understanding of rock mechanics as a practical tool to help attain high standards of safety, productivity and resource recovery. For such an approach, a long-term geotechnical program is needed in most operations to build an adequate data base and to ensure that design and ground control issues are handled in a cost-effective manner. Best usage of rock mechanics in mining occurs when management recognizes the application as a long-term investment, where time is needed to realize good returns. The need for this approach is due to the difficulty in accurately predicting ground conditions ahead of mining. The practical application of rock mechanics must follow an iterative process of design and verification based on site-specific experience to account for geologic and mining impacts. Ground conditions experienced during mining must be used to check the initial mine design and, if necessary, to provide a basis for design modification. Such a practical rock mechanics program includes comparative experience, in situ instrumentation and numerical modeling. The program begins with the geologic site investigation and continues throughout the life of the mine. It is an integral part of mine planning and operation.

Jan 1, 1991

By I. Filzwieser, S. Konetschnik, A. Filzwieser, A. Anzinger

Production in copper electrorefining tankhouses mainly depend on two factors: The deposition area, which is a result of the amount of installed cells and cathodes, as well as the current density - the amperage per square meter of deposition area. The present paper shows, that the most economical way of achieving a certain production is to maximize current density by using the METTOP-BRX-Technology - as building and infrastructure can be kept more compact. This industrial proven technology applies a parallel electrolyte flow in each electrolysis cell. In 2011, the first fully industrial applications started up: At the secondary smelter Montanwerke Brixlegg AG, 156 cells are equipped with the METTOP-BRX-Technology; this allows a current density of 390 A/m². Xiangguang Copper Co., Ltd. - a primary smelter and refinery - operates its new tankhouse (720 cells) at 420 A/m²; this stands for an production increase of 50% compared to the same sized ISA tankhouse which is limited to 280 A/m². The first part of the present paper gives a cost comparison between a conventional copper electrorefining tankhouse and a high current density tankhouse when assuming a Greenfield project. The second part describes the cost savings when installing the METTOP-BRXTechnology in an already operating tankhouse.

Jan 1, 2014

By F. M. Benavides

The mining complex being analyzed consists of four mines and two processing plants located in an area where there are several existing modes of transportation. Figure 1 shows a map of the general layout of the four proposed mines and the two existing processing plants. The mines are identified by the numerals "I" through "IV" and the plants by the letters "A" and "B". A proposed overland conveyor would collect the product from all four mines and convey it to Processing Plant A. Alternate transportation systems are as follows: Railroad transport from Mines I and II to Plant B; Highway trucking from Mines I and II to Plant A; Off-the-road truck haulage from Mine III to Plant B and from Mine IV to Plant A. River transportation from the mines to the processing plants was not considered in this study under the assumption that the high capital investments for the loading and unloading facilities, in addition to difficult traffic problems, would make this mode of transportation unattractive.

Jan 1, 1980

By James H. Owen

Because of price structure, ANFO is normally considered to be the most cost effective explosive used in quarry blasting. Results indicate that bulk smulsion can be more cost effective in applications where hole sizes range up to 6.5 inches in diameter while providing the simplicity of single product loading and storage. This can be accomplished without any fragmentation and/or movement loss usually in patterns which are about twice the size of ANFO patterns, allowing the combined drilling and blasting cost to be less when using bulk emulsions. Examples are presented supporting this concept using actual field results along with some simple calculations which take into account differences in the products such as density, matrix and detonation velocity.

Jan 1, 1998

By Helmut Goehring

Surface mining has been used primarily where deposits of minerals were exposed or close to the surface. Surface mining can, therefore, be considered the oldest branch of mining. As the most accessible deposits became uneconomical because of the lack of suitable high capacity conveying systems, deep mining took its place. Only in the twentieth century was this trend reversed as high capacity production and conveying systems were developed. This rapid development was triggered by the steadily increasing demand for raw materials and fossil fuels, as well as by the ever increasing ratio between overburden and deposits.

Jan 1, 1982

By William R. Yernberg

What a difference a year makes. One year ago, the iron mining industry and the steelmaking industry in the United States were in trouble. Many companies were in bankruptcy, and talk of plant and mine shutdowns was rampant. At that time, it seemed difficult, if not impossible, to remain competitive with imported steel. In addition, the World Trade Organization declared as illegal the tariffs placed on imported steel. And many questioned the viability of the ironmining and steel industry in the United States. At that time, global economic conditions were the main contributors to the industry’s problems. However, since last year’s meeting, changes in global economics have actually helped the steel industry in the United States. Heavy global demand for steel has caused raw-material shortages worldwide. Much of the increased demand is a result of the economic boom in China. In addition, because of a weak U.S. dollar and higher international freight rates, steel imports into the United States have been reduced to about 50 percent of recent levels. These factors have contributed to a rebirth of the U.S. iron mining and steel industries.

Jan 1, 2004

By J. Girard-Dwyer, T. Camm

Direct costs such as medical, legal, administrative, and worker’s compensation costs, property damage, lost earnings, and lost benefits are typically used to compute the economic impacts of occupational injuries. However, there are also a number of less obvious, indirect costs that substantially contribute to the overall loss costs. In fact, for every $1 of direct costs an estimated $3 to $5 of indirect costs are also incurred. This paper presents a systems approach that incorporates engineering, economics, psychology, and sociology in order to evaluate the total value of investments in safety. By studying the interrelated system comprised of the injured worker, their family and coworkers, as well as the organizational structure that was the setting for the incident, a methodology can be developed that will more accurately capture the true costs of mine injuries.

The concept of "profit" is implicit in the definition of an ore reserve. It is suggested that the flexible concept "economic" is more appropriate. This allows different economic considerations to be taken to account when determining what is ore at the feasibility study stage; during actual mining production; before mine closure; and from the viewpoint of the national economy. Economic factors which are highly variable, and largely beyond a mining enterprise's control, affect the economic exploitation of a mineral resource. Major economic factors include: metal prices; operating costs; the cost of original and replacement capital equipment; the cost of capital; taxation and royalties; inflation; exchange rates and the state of the world economy. The paper suggests why a careful quantification of the average value, trend, and variation from the trend of major economic factors should be made and how this will lead to a better definition of ore reserves. The paper also discusses the necessity of reappraising economic factors during the life of a mine in order to maximise the economic surplus and to minimise the wastage of natural, economic and human resources employed in mining.

Jan 1, 1979

By Gerald Blackmore

"This paper suggests that with the settlement of long-term contracts of fifteen years' duration, with prospects of extension, the coal mining industry has, for the first time, a complete commercial justification for large-scale planning.The labour costs of coal production over past years are analyzed and, with the acceptance of the premise that the basic shift rates are certain to rise in the years to come, the paper suggests that forward planning should provide &r capital investment to make a traditionally labour-dense industry into a capital-dense industry.Automated methods of manpower deployment and timekeeping and the monitoring of all equipment back to a central control point are discussed as ail-important means of obtaining maximum utilization of high-cost capital investment.Principles of payment of the work-force, and the utilization of equipment 24 hours a day, seven days a week and the maximum number of days a year, are dealt with as means of achieving maximum capital utilization. Some of the new technical underground and coal preparation problems which will undoubtedly result from the concentration of workings and maximum machine utilization are discussed, and the author makes suggestions as to how these might be solved.In short, the author predicts that if the coal mining industry is prepared to recognize the problems and invest in modern equipment backed by highly trained staff. then the outcome will justify the high capital investment involved. He stresses the importance of human communications in achieving this end."

Jan 1, 1970

By C. A. Grandison

The economic evolution from an agrarian society to an industrial and service-oriented economy is apparent to most students of history. The long-term trend is almost taken for granted, it does not require explanation — it is accepted as the nature of man to improve his standard of living. However, there are fluctuations around this trend line which have provoked a great deal of thought. The ability to understand and control these fluctuations would yield many benefits, it would eliminate economic waste and public hardship, and would no doubt make a few fortunes. I f it is not possible to control or eliminate these fluctuations, then a reasonable forecast of the tinting, rate of change and magnitude of the fluctuations would be invaluable to industry and government.

Jan 1, 1976

By A. Wang

This paper defines the elements of a basic economic model for decision-making when considering a methane drainage system for an underground coal mine. A drainage system will require significant capital and operating expenses; hence the decision to utilize drainage must be made carefully. The model outlines the basic structure of decision-making and considers the costs and benefits when the methane is marketed and when the methane is vented to the atmosphere. The effects on mine safety and the dust levels in the mine are also considered, both in a general format and as economic variables. Sources of information for executing this decision-making are provided for an actual mine decision.

Jan 1, 1997