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By James E. Breland

Society's growing concern over the number of deaths and serious injuries occurring in coal mines, coupled with a growing sentiment to develop and promulgate improved mandatory health or safety standards, was no doubt the basis for passage by Congress of the Federal Coal Mine Health and Safety Act of 1969, being Public Law 91-173 approved December 30, 1969. Even prior to passage of the Act, strong reaction was quick to arise concerning the effect of such legislation upon the coal mining industry. Initial response varied from mild forms of criticism to' the expressed fear of complete suspension of operations and mine closings. Primarily responsible for these early forms of skepticism were speculative or fanciful cost estimates which led operators to contemplate a less than prosperous existence. However, in spite of this unfavorable outlook, the majority of the operators have faced up to the situation and have been striving to comply with the Act and the regulations issued thereunder. While encouraging strides have been made toward implementation of the Act, it must be recognized that noticeable results have been attained only through many months of determined effort and, as anticipated, at quite heavy expense to the operator.

Jan 1, 1973

By James E. Breland

A case study of tangible and intangible costs incurred by a coal mining company for meeting the requirements of the Federal Coal Mine Health and Safety Act of 1969 is discussed. For clarity, the data is presented on a "before and after" basis, with special emphasis on safety records, costs, and production performance. The cost figures have been subjected to outside verification.

Jan 1, 1975

By Bruno C. Boik

INTRODUCTION Cost Management is the evaluation and control of project scope, budgets, and costs with the objective to minimize costs and maximize the benefits to be derived from the use of project resources in conformance with Criteria stipulated or approved by the Owner. In order of importance, Cost Management is one of the most prominent Project Management functions because of its impact on the financial success of the venture. Cost Control and Cost Accounting are essential parts of Cost Management. The principal objectives of Cost Control are to monitor project commitments and expenditures, and measure performance for the detection of variances from acceptable standards and from control budgets so that timely action can be initiated to minimize costs. Cost Control is evaluation of current costs and projection of future costs, rather than the reporting of actual costs. Cost Control is not Cost Accounting. The primary objectives of Cost Accounting are the determination, classification, analysis and reporting in useful detail of actual costs. Following are some considerations on Cost Management and Cost Control as practiced by Owners and Contractors of industrial projects, Mining and Metallurgical projects in particular. COST MANAGEMENT Functions Conforming with the requirements of Owner's Criteria, the principal Cost Management functions are to • evaluate estimates of project costs and establish budgets for a scope of work and schedule; conversely, evaluate the scope of work that can be executed most effectively within a budget and schedule. • promote investigations and comparative evaluations of alternate designs and plans to find the most cost effective way to execute a project and minimize its operating costs. • based on Cost Control and Cost Accounting input, evaluate and initiate appropriate actions to correct deviations from approved budgets. assess project economics, the effect of changes on project economics and, if necessary, revise Project Criteria to modify their impact on costs.

Jan 1, 1986

By B King

Processing expansion options and mining fleet purchases are major cost items that receive due focus in most cost management analyses. If these items are not needed, they can significantly reduce a project’s short-term capital spend and improve profitability and value to shareholders. When conditions change prior to purchasing equipment, the purchase may no longer represent the best decision for the project.This paper outlines a structured approach for making major cost decisions to improve the value of a project, determining which items should be kept and which should be eliminated.CITATION:King, B, 2014. Cost management optimisation, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014 , pp 7–12 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014

By V. O. Tenorio, A. M. Sanzana

"INTRODUCTION This report summarizes a research about mines which are transitioning from surface to underground mines. It is a guide to make strategic decision in these increasing amount of mines. Capital and operating costs are linked with major strategic decisions in the exploitation of an ore body. This is the reason to analyze costs related to this transitioning world trend. There are multiple reasons for transitioning from Open-Pit (OP) to Underground (UG) mining. The primary economic incentive for going UG is that the cost per unit of ore from OP mining eventually exceeds that from UG extraction. This is due to the excessive amount of waste that must be extracted when the depth of the pit increases. In addition, the reduced footprint of UG operations contributes to diminish the environmental impact on the surface. Furthermore, it becomes more difficult to find new, easily accessible ore deposits. Then, a cost model helps to guide strategic decisions in the transition from OP-to-UG mines. Objectives • Propose a methodology to guide strategic decisions in the transition from OP to UG mining. • Create an integrated cost model based on existing OP and UG individual cases. • Identify and characterize a group of mines transitioning from OP to UG. • Analyze operating and capital costs of a particular transitioning from OP to UG mine. MAIN CONCEPTS Open Pit Mining (OP) The main decisions in OP mines are: Cut-off grade, Stripping Ratio (SR), equipment size, stockpiling, pushback sequencing and processing capacity. The stripping ratio is measured as the tonnage of waste required to be removed to reach and extract one tonne of ore. The material extracted from an OP exploitation can be classified as waste and ore. This classification depends on the cut-off grade. The cut-off grade indicates the minimum amount of material with economic value in a block. The waste from the mine is going to the waste dump and the ore is going to stockpiles where will be store and then going to the processing plant (leaching or concentrator). The waste of this process is going to the tailing pond big pools. And the product is sell in the market. Another important issue is the mining capacity which is going to define the investment in mining equipment. Underground Mining (UG) The first decision to be made in order to open an underground mine is selecting the mining method. Caving methods are the more productive and have lower operating costs. There are three caving methods: Block Caving (BC), Panel Caving (BC) and Sublevel Caving (BC). The access development could be an horizontal adit or a straight or downspiral decline. A shaft could be used for inclined or vertical access. Other key issues are: equipment capacity, cut-off grade and production sequencing."

Jan 1, 2016

The Leigh Creek Coalfield is owned and operated by the Electricity Trust of South Australia to supply fuel to the Northern Power Station. To supply electricity at lowest cost, a costing and decision process that establishes the role of the Leigh Creek Coalfield in the overall system planning and operation is required. The costing is integrated in that it is based not just on a particular mine plan but on the wider need to supply a particular electrical demand. The detail costing has evolved over time from manual to main-frame computer to microcomputer techniques. Now there is a choice between fast consistent costs and a slower but more detailed and flexible costing.

Jan 1, 1990

By M. Z. Emad, S. Raza, K. Jalil, M. A. Raza, M. U. Khan, S. A. Saki

Dimension stone mining is Increasing because of growing demand from the building and construction industries. Diamond wire saw cutting is a popular dimension stone mining technique around the world. Estimation of the production cost for this method is critical for these operations. n this research a production cost model was developed for the mining of granite using a diamond wire saw. Cost and production data were collected from a granitic dolerite operation in Pakistan for a 4.5-year period, and analysed to identify the cost components. Fuel (34%), labour (15%), consumables (40%), and maintenance (5%) were found to be the four major cost components in this operation. A regression-based dimension stone production cost model incorporating statistically significant variables was developed. The data presented a strong correlation of production cost with fuel, labour, and consumables costs. Finally, a production cost model based on the consumption cost of diamond wire is presented. The model was verified using actual production cost data, which indicated 95% (R2 = 0.95) variance in the data between the predicted and actual production cost values. The model may help field engineers in computing their dimension stone operational cost during the cutting phase.

Nov 6, 2023

By M. R. Khalesi, S. Arfania

"Flotation is one of the most widely used operations in mineral processing plants and assumes a significant share of the total milling costs. The purpose of this paper is to introduce a new set of capital and operating cost models for major flotation machines based on the application of single (SRA) and multiple regression analysis (MRA). Thirty-seven major flotation machines were analysed for this purpose. Depending on the machinery type, different technical variables such as diameter, required air flow rate, required floor space, cell volume, required air pressure, and power were considered as predictor variables, individually (in SRA) or simultaneously (in MRA). Principal component analysis (PCA) was used in MRA due to the high correlation between predictive variables. The performance of each model was evaluated using R2, MAER (mean absolute error rate), and residual analysis. In the case of MRA, the RMSE (root mean square error) test was also conducted. Maximum obtained MAER of 13.5% and minimum R2 of 0.86 indicated that these models could be applied as credible tools in estimation of capital and operating costs of flotation machines for design and feasibility studies.IntroductionMineral processing is a vital part of mining projects and mainly involves comminution, sizing, concentration, extractive metallurgical processes, and dewatering. Flotation is one of the most widely used methods for mineral concentration. Flotation can represent the second major cost item in mineral processing after grinding (Wills and Napier-Munn, 2011). Accordingly, it is a main concern of mining project managers to select and optimize flotation circuits in order to decrease costs and increase productivity. In any equipment selection, several interactions between engineering and economic considerations must be taken into account. Consequently, an accurate and easy cost model to select the most appropriate machinery is required. Moreover, cost models could be used in flow sheet simulations applied in design and optimization. Models of unit operations built into the simulators could be improved by linking the equipment cost models (Khalesi et al., 2015)."

Jan 1, 2017

By S. A., Taylor

IT is very difficult to arrive at exact figures for the cost of maintaining excess capacity of coal mines, but we can approximate the various items. To do this, I will take the Pittsburgh district of Pennsylvania and the other districts can be compared to this one. I believe we can take the depreciation item of plant ac- count as a whole and discount it over a period of 20 years; while this is high for some items it is low for others and I believe it is not far from a safe basis. This equals 5 per cent per year, and this depreciation will take place about as rapidly when not in use as when in operation. A fair value in the Pittsburgh district to- day for plant and houses is close to $4 per ton per annum. At 5 per cent this will equal 20 cents per ton per year. The item of keeping the mine in condition, free from water, etc., will be close to an average of 2y2 cents per ton per annum.

Jan 1, 1928

By Paul M. Tyler

Mineral raw materials, because they are essential to our industrial prosperity and military strength, must be made available in substantial quantities. regardless of cost. Variations in the cost of procuring minerals, as compared with the cost of obtaining other commodities, and changes in the cost of production of different minerals relative to one another, will naturally influence the quantities of a given mineral item that can be marketed readily. However, in the last analysis, the cost of winning minerals from the ground usually constitutes only a small fraction of the value of the end-use products and services derived from them. The miner's share of the cost of a typewriter, telephone circuit, or even a modem office building, is almost insignificant. Far more important to the ultimate consumer, therefore, than any minor saving in cost is the assurance of ample supplies of the minerals needed to aliment our expanding economy. To create a successful metal mining operation involves ( 1 ) the discovery and systematic development of a mineral deposit, (2) extraction of the ore, (3) the mechanical and metallurgical processing to eliminate worth- less or harmful impurities, and (4) the profitable disposal of the product. The first step of the technological process belongs chiefly in the realm of the geologist, the second is a mining engineer's job, the third is mainly up to the millmen and extractive metallurgists; whereas the fourth and equally important step poses a commercial problem that has aspects in common with the marketing of other products. Ore finding is far from being an exact science. There is no mathematical criterion for evaluating the efficiency of prospecting and exploration. Lady Luck shares the honors or assumes part of the blame along with the prospector and geologist. Marketing like- wise involves factors that seemingly defy engineering analysis. Although the other steps can be measured with some degree of mathematical accuracy, even they tend to vary so widely in basic principle, as well as in

Jan 1, 1959

By Paul M. Tyler

Mineral raw materials, because they are essential to our industrial prosperity and military strength, must be made available in substantial quantities regardless of cost. Variations in the cost of procuring minerals, as compared with the cost of obtaining other commodities, and changes in the cost of production of different minerals relative to one another, will naturally influence the quantities of a given mineral item that can be marketed readily. However, in the last analysis, the cost of winning minerals from the ground usually constitutes only a small fraction of the value of the end-use products and services derived from them. The miner's share of the cost of a typewriter, telephone circuit, or even a modem office building, is almost insignificant. Far more important to the ultimate consumer, therefore, than any minor saving in cost is the assurance of ample supplies of the minerals needed to aliment our expanding economy. To create a successful metal mining operation involves (1 ) the discovery and systematic development of a mineral deposit, (2) extraction of the ore, (3) the mechanical and metallurgical processing to eliminate worthless or harmful impurities, and (4) the profitable disposal of the product. The fist step of the technological process belongs chiefly in the realm of the geologist, the second is a mining engineer's job, the third is mainly up to the millmen and extractive metallurgists; whereas the fourth and equally important step poses a commercial problem that has aspects in common with the marketing of other products. Ore finding is far from being an exact science. There is no mathematical criterion for evaluating the efficiency of prospecting and exploration. Lady Luck shares the honors or assumes part of the blame along with the prospector and geologist. Marketing like- wise involves factors that seemingly defy engineering analysis. Although the other steps can be measured with some degree of mathematical accuracy, even they tend to vary so widely in basic principle, as well as in

Jan 1, 1964

By L. B. Rothfeld

This paper presents preliminary results of a Bureau of Mines study of potential costs of compliance with the federal Resource Conservation and Recovery Act for copper heap and dump leaching. Specifically, estimates are given for the cost of compliance with possible technology standards that would require the use of liners and closure caps regardless of terrain and underlying geology and hydrology. This cost is compared to the co lit of compliance with present state requirements for terrain a typical of those found at existing copper leach sites in the Southwestern U.S.A. Incremental compliance costs are found to widely exceed screening criteria used by the Environmental Protection Agency to denote significant economic impact.

Jan 1, 1993

By L. B. Rothfeld

In anticipation of RCRA reauthorization and subsequent rulemakings, the Bureau of Mines is studying potential economic impacts of RCRA on mining. For U.S. copper heap and dump leaching operations in a variety of terrains, the cost of liners and closure caps to comply with RCRA Subtitle D ranges from $55 million to $158 million per site, or about $500,000 per hectare ($200,000 per acre). If RCRA technology requirements and financial assurance had been required on current operations, 27 to 100% of production from heap and dump leaching would have been non-competitive at market prices between $2,310 and $1,650 per metric ton ($1.047 and $0.75 per pound) copper. This result is based on an analysis that considers return on capital, corporate overhead, marketing, and freight costs as well as operating and maintenance costs at the mine. Over the same price range, economic analysis using the IMPLAN input-output model on one-or two-county regions indicates potential net job losses of about 570 to 2,700 jobs. Total economic output of those counties could be reduced by about $180 million to $360 million.

Jan 1, 1994

The mining industry is generally regarded as a high risk industry, mainly because of the difficulties in estimating the tonnage and grade of mineral resources, the fluctuations in metal prices, mining problems and other problems which occur with mining in offshore and remote locations, such as appropriation or disruption to supply. As a consequence, finance providers require a high reward from mining projects. In the past two decades, the development of "mega" projects has led to the packaging of the finance becoming more sophisticated. Some would see this move as a measure of the evolution of banking rather than an intrinsic facet of mining finance itself. Project financial managers now require a thorough knowledge of all the financial tools which are available and have to be aware of the funding options so that they can put together a finance package which minimises the cost of the financing with the risk spread adequately between the partners of the financing. The different sources and types of finance for mining projects are described herein along with the factors which determine their costs. To understand the ramifications of financing mining projects, it is essential to appreciate the fundamental difference between debt and equity, which illustrates the importance of gearing. Costs of finance are determined by the interaction of supply and demand forces. Bankers and other financiers have become more adept at isolating a wide selection of risk elements and have devised a formidable range of insurance mechanisms. There is still a lot of money looking for good project risks and if a good project is properly presented and structured, financing can be obtained in today's market.

Jan 1, 1990

By Jr. Lownie

Estimates of the cost of producing any commodity generally fall into several classes depending upon the motives and needs of the estimator. There are estimates intended to show how low costs might be with favorable conditions if everything goes well. At the other extreme, there are estimates which show how high costs might be if troubles develop. The estimates in this paper for the cost of producing direct reduced iron (DRI) are accompanied by discussion to point out how the final figures may be adjusted in either a promotional or a conservative direction. Because we do not have a specific process and a particular set of conditions in mind when discussing this subject today, this paper deals with the general situation, with considerable attention to how the estimates can be made more specific once one knows the particulars of a given situation.

Jan 1, 1978

By Lebeau M., P. Duguay

"The cost of occupational injuries and diseases in the mining industry in Quebec was estimated for the period of 2010 to 2012. The method used takes into account the financial and human costs assumed by employers, workers, and the community. To better direct research and prevention toward issues with the most significant consequences, the results are presented in various ranking tables, which stakeholders might find useful.RÉSUMÉ Le coût des accidents du travail et des maladies professionnelles dans l’industrie minière au Québec a été estimé pour la période 2010-2012. La méthode utilisée prend en compte les coûts financiers et humains endossés par les employeurs, les travailleurs et la communauté. Afin de mieux orienter les recherches et la prévention vers les problèmes ayant les plus graves conséquences, les résultats sont présentés dans divers tableaux de classement, qui seront d’une grande utilité aux parties prenantes. INTRODUCTIONThe mining industry is much safer today than it was 30 or 40 years ago, mainly due to a more qualified workforce, the use of automated equipment, and a corporate culture more focused on occupational health and safety (OHS); however, the number and the severity of occupational injuries and diseases continue to make this industry one of the most hazardous. In the province of Quebec, the mining industry accounts for approximately 0.4% of paid workers but is the source of 4% of fatal work accidents. It is, therefore, important to continue the prevention efforts already underway in the mining industry.The difficult global economy, which has affected the mining industry in the last few years, is an opportunity to reaffirm that sound management of OHS can have a positive impact on companies’ productivity and profitability. Occupational injuries and diseases are costly for the companies concerned and for society as a whole. Reducing their occurrence makes it possible to reduce not only the size of workers’ compensation board contributions but also several other financial and human costs."

Jan 1, 2018

By Robert B. Scott

Acid mine drainage, discharging from coal beds, has polluted our streams and rivers since early time. These pollutants affect water quality by lowering the pH, reducing natural alkalinity, increasing total hardness, and adding undesirable amounts of iron, manganese, aluminum and sulfates, The tangible damages are the costs involved in replacing equipment corroded by the acid water, additional treatment costs at municipal and industrial water treatment plants, and damages resulting from corrosion of steel culverts, bridge piers, locks, boat hulls, steel barges, pumps, and condensers. Intangible damages, which are real and important, include destruction of biological life of the stream, reduced property values, and streams rendered undesirable for recreational uses.1 The major problems of mine drainage occur in the anthracite and bituminous coal regions in Appalachia. However, many of the western mining states have significant mine drainage problems in specific areas, but the overall problem is not as great as in the eastern states.

Jan 1, 1970

By Taner Sumer, H Altay Guvenir

Fragmentation in rock quarries is tried to be achieved by changing the specific charge, drill pattern and bore hole diameters by different experts. This paper is a brief summary consisting of the utilization of practical experiences of the other group on cost optimization procedure that takes into account blasting, transportation and crushing as a whole process and optimize the cost by defining the optimum gelatin based explosives to be used as a main primer of anfo in three different limestone and granite quarries, with similar rock characteristics.

Jan 1, 1993

By John Popovich

The MICON RokLok binder system including component and consolidation processes and safety and its first aide are described. The implementation procedures and selection of injection parameters are discussed. Finally a case example of recovering a 30-ft. long roof fall in mainline haulage entry is used to illustrate the economic potential of preventive measures by RokLok injection.

Jan 1, 2001

By Anderson Pereira

SORM 3plus (SORM = Superfast Optical Roughness Measurement) is a system enabling online measurement of roughness parameters during continuous strip processing. Increased requirements for new materials and more complex components call for ever increasing process safety. The roughness parameters are important quality features of uncoated and surface refined strips. The traditional method of measurement involves using a mechanical stylus based instrument. For this purpose the operator must stop the production line or samples are taken from the end of the coil and measurements are made offline in the lab. SORM 3plus, however, is a non-contact, online surface roughness measurement system that can be used for metallic and many non-metallic surfaces at strip speeds of up to 2400 m/min. The surface roughness data are stored in the system computer, displayed to the operator and if needed are fed into a higher-level network. The operator is alerted, if the limited values preset by him are exceeded or if any changes within the line will put at risk the production process. SORM 3plus calculates the roughness parameters as defined in the standards, such as the arithmetic average roughness (Ra) and the peak count (RPc).

Oct 8, 2019