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By E. J. Wasp

The transportation of mine products incurs a cost which can have a significant bearing on the competitive position of the manufactured product. Clearly, the engineer who is responsible for selecting a mode of transport must base his decision, at least in large measure, on economic comparisons. And today, the engineer usually finds that he has to choose between several modes, including slurry pipelines. For the purpose of an initial economic screening, it is not necessary to go deeply into the technical details of a slurry system. What is usually needed, however, is a method with which the engineer can make a quick economic assessment to determine whether a slurry pipeline should be included in the detailed final analysis. This paper presents a rapid method for making such a preliminary appraisal. Experience with commercial slurry pipeline systems in several countries and with a variety of solid materials has shown that if several assumptions pertaining to critical design variables are made, it is possible to roughly estimate the transportation cost of a slurry system on the basis of only three factors: the specific gravity of the solid material, the length of the system, and the quantity of slurry to be pumped each year. It is assumed that conditions pertaining to field construction, corrosion inhibition, and the like, will be favorable. This assumption is critical because any factor which analysis shows to be particularly unfavorable will raise the total transportation cost estimate which this paper establishes. If the engineer employs this estimating procedure and decides that the use of a slurry pipeline is economically unattractive, his chances of being wrong are small. Conversely, if his quick appraisal indicates that the use of a slurry system is economically favorable, the engineer is justified in committing the time and money needed to make a more detailed investigation of the slurry pipeline potential.

Jan 1, 1969

By R. J. Pindred

Discussion by R.J. Pindred In his paper, Davis presents an overview of risk. He also introduces the Capital Asset Processing Model (CAPM) as a foundation for selecting the appropriate discount rate for a mining project. While applying portfolio theory is more defensible than the ad hoc adjustment of discount rates, the CAPM is not a panacea. CAPM shortcomings [The CAPM, as Davis stated, is expressed in the equation: ri=rf+pi4) where ri is the project discount rate rf is the risk free interest rate (3i is the project beta, and 0 is the market risk premium (rm - rf)] Application of the CAPM is more difficult than Davis indicates. Valuation is prospective, while the CAPM parameters are historical. Beta is determined from a regression analysis of historical data, while the beta needed for valuation is the expected beta. Betas are known to be unstable and the regressions that generate them often have low explanatory power. The difficulty of estimating a "project" beta must also be considered. Thus, the beta that is used in the CAPM will be based on the analyst's judgment. Like Cavender's discount rate, this judgment can lead to different project NPVs. Subjectivity in valuation cannot be avoided by a mechanical application of the CAPM. The risk-free rate, which Davis identifies as a short-term real rate of 4%, is also subject to scrutiny. A mining project is not a short-term investment and no single risk-free rate is appropriate for all of the cash flows. The hypothetical mine discussed in Cavender's paper is a six-year project. One might argue for the application of a risk-free rate from the Treasury yield curve at the duration of the project (in a bond-duration sense). This, too, is inappropriate. The risk-free rate should be matched to the timing of the cash flow. These rates can be determined by calculating the implied forward rates from the yield curve using a procedure known as "bootstrapping." It is likely that each of the project's cash flows would be discounted at a different rate. Commodity prices Davis criticizes the "ad hoc adjustment to the discount rate." Yet, in his discussion of the value of stochastic simulation, he suggests that the gold price be modeled as a "random walk, with or without a trend." This is essentially an arbitrary modeling of price risk. Consider that a liquid market in gold futures exists. The futures' price curve, which is closely related to the market's estimate of future spot gold prices, should be used to provide inputs to the model. This is especially true of a relatively short six-year project. Alternatively, as Davis correctly points out, a risk-averse investor can sell the commodity short to hedge price risk. Is it any more correct, in the portfolio sense, to account for price risk at all ?? References Cavender, B., 1992, "Determination of the optimum lifetime of a mining project using discounted cash flow and option pricing techniques," Mining Engineering, Vol. 44, No. 10, pp.1262-1268 Fabozzi, F.J., 1993, Bond Markets, Analysis and Strategies, Second Edition, Prentice Hall, Inc. Higgins, R.C., 1992, Analysis for Financial Management, Third Edition, Richard D. Irwin, Inc. Solnik, B., 1991, International Investments, Second Edition, Addison Wesley Reply by G.A. Davis Pindred discusses two issues related to my paper, the shortcomings of the Capital Asset Pricing Model (CAPM) and which commodity price values to use in the valuation exercise. Even though these topics are not directly related to the use or misuse of Monte Carlo simulation, they are important points to take into consideration in valuation exercises. Since I do not appear to have addressed these issues satisfactorily in my original paper, I will comment on each here. Pindred agrees with me that applying portfolio theory, and specifically the CAPM, to the selection of project discount rates is more defensible than ad hoc methods. But he then points out that the application of the CAPM to project valuation is more difficult that I indicate. It is true that the CAPM is a difficult tool for project valuation in general,. But the application of the CAPM to mining projects is one of the easiest I can think of. The biggest problem with using the CAPM for project valuation is coming up with an expected project beta. I suggest a project beta for gold projects of 0.45. The "true" value might be 0.35, 0.55 or whatever. Pindred correctly notes that the selection of the appropriate project beta is based

Jan 1, 1996

By W. Pariseau, J. Goris, S. R. Dismuke

Ore at the Magmont mine in southeast Missouri is extracted by the room-and-pillar method on two and sometimes three horizons. In 1991, a plan was formulated to recover high-grade ore in pillars using cable halts to accommodate spans of more than 27 m (90 ft ). A test area was selected and a recovery plan developed. A cooperative rock mechanics study was established by Cominco Metals, the US Bureau of Mines and the University of Utah. When initially opened in 1968, the planned production rate was about 910 kt/a (1 million stpy). Due to declining reserves, the production rate was decreased in November 1992 to 570 kt/a (630.000 stpy). Pillar recovery now accounts for about 40% to 50% of the mined tonnage. This method plays a vital role in allowing Magmont to continue to operate.

Jan 1, 1996

By John S. Summer

The induced polarization (IP) method of geophysical exploration is capable of detecting even small amounts of metallic luster minerals in a rock mass. Consequently, in the years since discovery, IP surveying has become the most popular ground geophysical survey method. It is not too difficult to understand many applications of IP surveying as used in the search for mineral deposits. However, the basic theory of the IP phenomenon is not well developed or understood, and there has been some disagreement on fundamental concepts. In order to most effectively apply the IP method in the field it is necessary to know the physical characteristics of the sought-for deposit including its size, shape, depth, and electrical properties. With this information an optimum IP search arrangement can be devised and one could use the best possible electrode interval, type of array, and line spacing. With uncertain target characteristics as encountered in the real world, geological guidance must be used to help direct an optimized IP survey.

Jan 1, 1972

By Peter F. Mataich

The phosphate mining industry is a highly competitive one, one in which survival depends on the plant's ability to produce at costs equal to, or below, the competition. The solution toward getting costs down is usually one of scaling up the plants to get the most tons through at the lowest possible cost. Control of these plants has been an art. Few of them are well instrumented because until a few years ago reliable instrumentation was non-existent. International Minerals and Chemical Corporation was a pioneer in applying computer techniques to ore reserves analysis and mine planning and the success in these areas led to the question of whether we could not extend the advantages of computer processing into the plant itself. There was a great deal of doubt on the operator's end that this could be done successfully because of the lack of instrumentation and the fact that plant control was largely an art that was learned only after many years of experience. However, in 1965 the instrumentation picture began to look up and the new generation of process computers just coming on the market were considerably lower in cost than the previous ones. A preliminary study of the installation costs and the probable benefits that could be realized from computer control convinced us that a process control computer should be seriously considered for a new phosphate mining plant which was being designed.

Jan 1, 1969

By H. C. Rolseth

The first step in the quarrying of granite, following removal of any overburden material, involves the freeing of large blocks from the formation. For many years the use of explosives was the accepted method of obtaining these blocks. Even today there are operations where this is considered to be the most economical method even though it does result in a high percentage of damaged stone. In more recent times the preferred procedure at most quarries has been to produce a continuous vertical cut or slot completely around the block to be separated. Originally, this was done by drilling a series of closely spaced holes around the block and breaking the web between the holes with a chisel-like tool known as a broaching bar. The machine used in this mechanical method of producing the relief slot is known as the channel bar. The modern day approach to the production of continuous channels was introduced to the industry around 1955 by the Linde Division of Union Carbide Corporation. The method employs a small rocket - jet burner producing a high temperature, high velocity exhaust flame which when directed against the granite causes it to disintegrate. This method, which has come to be known as "Jet Channeling", is now used by practically every major granite producer in the United States and Canada.

Jan 1, 1968

By Frank F. Aplan, Robert S. Thomson

A placer ore jig, typically used to recover fine gold, tin and diamonds from alluvial ores, has been modified to remove fine pyrite from minus 6.4 mm (-114 inch) coal. In parallel tests, it proved to be far superior to two conventional coal jigs, the Baum and the Baum-feldspar, in removing fine pyrite from coal. The Pan-Am placer jig was found to remove essentially all of the +28 mesh pyrite and from 99% to 90%, decreasingly, in the 28 to 200 mesh range. This jig also showed a superior performance to the Baum-Type jigs in removing fine coal from its associated refuse. The superiority of the Pan-Am placer jig is related to the strong emphasis given on the suction stroke and, hence, on consolidation trickling, whereas the Baum jigs principally emphasize the pulsion stroke during jigging.

Jan 1, 1995

By Gordon M. Pugh, David G. Rasmussen

INTRODUCTION Sublevel long-hole stoping is a large tonnage stoping method that may be used when there is a fairly com¬petent straight vein and the walls will stand with little support. It is a method that lends itself to a high degree of mechanization. Two variations of the method are illustrated in Figs. 1 and 2. Fig. 1 illustrates development typical for a 3-m (10-ft) wide vein. Initial development is by a lower haulageway, which may be either track or trackless. A two-compartment raise is driven in the footwall of the vein. At about 12 m (40 ft) above the main head¬ing, a footwall scram is driven and pockets through the vein are cut on 7.6-m (25-ft) centers. Each of the sub¬level blocks selected in this example is 45.7 m (150 ft) long by 12 m (40 ft) high. Stoping starts at the slot raises at stope endlines and retreats to the timbered raise. This retreat sequence starts on the lowest sublevel and the opening cut is blasted into the slot raise. This retreating system is used in order to provide a good safe back over the miners working in any given sublevel. A crawler-mounted down-the-hole or conventional pneumatic drill puts the holes down from one sublevel to the next on any desired drill pattern. Gravity flow brings the broken ore down to the scram level. The illustration shows a large slusher mounted at the timbered raise and slushing from the pockets back to the raise chute. Development of the ore block in Fig. 2 is typical for a 5.5-m (18-ft) wide vein. Initial development is by a trackless heading driven in the footwall of the vein. Pockets are then put into and through the vein on 7.6-m (25-ft) centers. For ease in using trackless rubber tired mucking equipment, these pockets are crosscut to the vein at approximately 1.04 rad (60°) rather than per¬pendicular. A two-compartment timbered raise is driven down from one level to the next. Endline slot raises are again put through from level to level. Each of the sub¬level blocks selected in this example is 40-m (130 ft) long by 33.5 m (110 ft) high. Stoping starts at the slot raises and retreats back to the timbered raise. Long holes are drilled from one sub¬level down to the next by starting between the lowest pair of sublevels and then working up the ore block. Mucking out of the pocket drawpoints is accomplished by rubber-tired load-haul-dump (LHD) units which then dump into a centrally located orepass.

Jan 1, 1982

By R. J. Beckman

This paper traces the history of mica mining in Alabama from 1870-1970. The decline of sheet mica production is noted and emphasis is placed on the more recent activity of scrap mica production and the development of the U. S. Gypsum Co. mica properties in Randolph County, Prospecting for weathered pegmatites of sufficient size to warrant development is a continuing challenge since most deposits are too small and all exhibit varying characteristics as to size, shape, and weathering. Quantity and quality of muscovite mica in the pegmatites is of utmost importance and its recovery during processing of the ore is described.

Jan 1, 1970

By J. W. Jang, J. J. Moore, I. Iwasaki

The wear behaviors of grinding media with different chemical composition and microstructures in wet grinding of a quartz-pyrrhotite mixture were investigated under various environments. The marked ball wear tests showed that the wear rate could be minimized by a suitable combination of martensite and ferrite within the same ball. A ball composed solely of hard martensite exhibited increased wear under an oxygen environment, while balls composed of both soft ferrite together with hard martensite exhibited decreased wear due presumably to the difference in their passivation behaviors. The galvanic interaction between the two phases as well as among these phases and an electroactive mineral were investigated through electrochemical measurements under abrasive condition in a slurry. The rates of formation of passive film controlled the corrosion currents of the high chromium steel media. Corrosive wear and its effect on flotation are discussed using the passivation kinetics model thereby developed.

Jan 1, 1990

By William J. Bronkala

One of the oldest tools used in mineral concentrating is the magnetic separator. Virtually every mineral handling system has need for some type of magnetic equipment in two types of basic usage. 1. Equipment protection through tramp iron removal. 2. Mineral concentration based on magnetic properties of the minerals contained in the ore.

Jan 1, 1969

By Michael F. Werneke

While the use of synthetic polymers for solid/liquid separation is not raw technology (1)(its history goes back to the mid 1950's), its importance has increased dramatically over the past decade. This can be attributed to two major factors. The first of these was a change to mechanized mining (strip mining and continuous underground miners) which resulted in a lower quality (higher reject) preparation plant feed, as well as a higher percentage of smaller size particles in the feed. The second factor has been the greater restrictions imposed by governmental agencies on effluent discharge and solids impoundment, requiring pre-treatment of recirculating water before reuse and treatment of refuse before disposal. Today, synthetic polymers find utility in almost all applications requiring separation of solids from aqueous suspension, including "in-process" as well as waste treatment applications. In spite of the fact that there are over several hundred commercially different flocculants available in the marketplace (2), there are a limited number of chemically different materials available which are useful from a cost/performance standpoint. The potential reasons for using flocculants in a coal preparation plant are summarized in TABLE 1.

Jan 1, 1979

By Douglas A. Sloan

Who would believe that young elementary school children could understand something as complex as the mining industry? THE CHALLENGE The challenge of accomplishing this is tremendous. An examination of Canadian school children indicated that they knew very little about the world of work in general, and hardly anything about the mineral resource industry in particular. It calls to mind the story about two youngsters who decided to play house. The little girl played her role well as she went about the house doing things she had watched her mother do every day. When it was the little boy's turn, he grabbed his lunch, waved goodbye to his "wife", jumped on his bicycle and pedalled furiously down to the end of the driveway -- where he stopped. The youngster explained that he saw his dad go out of the driveway each morning, but he didn't know where he went, or what he did on the job. When you stop to consider the number of families today with two working parents, you can begin to appreciate the importance of the opportunities for role identity provided by this project.

Jan 1, 1979

By Bo R. Arvidson

High-energy product permanent-magnet materials of rare-earth cobalt alloys are being used in applications where space or weight are at a premium cost. New applications like friction-free bearings are also made possible. However, such magnet materials have not been commercially used in magnetic separators until now due to the high cost for the overall magnetic flux generation relative to commonly used ceramic magnets or AlNiCo magnets. The design of the new high-intensity permanent- magnet roll separator (PERMROLL) takes advantage of the unique properties of rare-earth cobalt magnets rather than just substituting for conventional magnet materials now in use for magnetic separators. Hence, the new generation of high-intensity magnetic-roll separators has some unusual characteristics that make known magnetic separation applications more economically attractive, and even expands the magnetic separation technology area to include applications for which no other feasible methods are presently known.

Jan 1, 1983

By Carla L. Zenti

In recent years, considerable advances have taken place worldwide in the design and construction of first tunnel linings. With these advances, there is a tendency to move away from traditional support that includes heavy open profiles of rolled steel arches, to a lighter solution with the use of an optimized tubular steel cross section rib, and shotcrete reinforced with steel mesh and/or steel fibers, providing a continuous support (Lunardi, 1982). The development of tubular ribs has provided greater design options, increasing flexibility to engineers and contractors while providing a efficient and cost effective construction method. In this article, the authors describe numerical and experimental investigation on this problem, suggesting as a new first lining steel arch design approach by using tubular ribs cross section as new technical solution for first lining underground support.

Jan 1, 2012

By D. Christofferson

As an alternative power source to eliminate trailing cables, ESD Corporation is installing a flywheel system on a shuttle car. Flywheel power is extracted by a high-speed generator, developed by Lear Siegler Corp., and the system -- including vacuum and lubrication and cooling auxiliaries -- is supplied by the aerospace group, Rocketdyne Division of Rockwell International. The flywheel system is being developed under a three-year contract with the Department of Energy. It is a follow-up contract to a previous DOE-contracted study by General Electric Co. in which it was shown that a flywheel can be a feasible power source for a shuttle car from technical, economic, and safety standpoints. This paper addresses the status of the program, design decisions established, and plans for laboratory test procedures and underground demonstration. The flywheel-powered shuttle car is a conventional 6-ton capacity shuttle car equipped with a 7-rotor flywheel energy storage package. The energy package is the sole source of power for the shuttle car through a complete mission duty cycle (MDC) of tramming to the miner, receiving a load of coal, and returning to the secondary haulage system. Energy stored in the system exceeds MDC requirements and waiting times to provide an ample margin of reserve energy. The energy storage system is recharged by spinning the rotors back up to maximum speed each time the shuttle car comes back to the seconaary haulage system. The electrical charge motor is connected to a power source to recharge the system while the load of coal is being discharged.

Jan 1, 1981

By B. Petkof

Olivine has been an accepted industrial mineral for the last 50 years. Its initial acceptance was based on the recognition of its refractory properties by European research workers in the middle to late 1920's. Initial U.S. olivine production began in the early 1930's in North Carolina and continues there today. Olivine also is produced in the State of Washington and in other countries.

Jan 1, 1982

By Fred J. Fleischauer

Industry requires higher speed sheet stacking. High speed sheet stacking requires equipment and techniques to solve several inherent difficult problems, such as the tendency for sheets to sail, and the need for a means to absorb the kinetic energy of the sheet without damaging the sheet. Accurate alignment of the sheets on the stack is another problem difficult to solve. The paper first analyzes the process of sheet handling into its basic elemental steps. It then describes equipment and techniques presently used for moderate sheet handling speeds, with emphasis on how each step in the stacking process is accomplished by the present equipment. The limitations to speed-up of present equipment is discussed. New high speed equipment, either recently introduced to the market, or in the process of development, is described. Magnetic, air float and vacuum conveyor stackers are compared.

Jan 1, 1973

By A. L. Hannaford

Previous production at Spektakel was undertaken during the periods 1854 - 1888 and 1892 - 1901. During this period a total of 41,7 kt of ore grading 32% Cu was hand-sorted from 270 kt to 360 kt of ore mined. Initial open-pit mining was followed by underground mining, access being by means of an inclined shaft to the 85 fathom level. During the period 1946 - 1952 cement copper equivalent to 5,452 kt of blister was produced by leaching of oxidized ore. The Spektakel ore-body branches and coalesces both in plan and in cross-section which accounts for its remarkably complex configuration. Constituent rock-types are andesenite and various varieties of biotite diorite and of ?norite? (biotite-hypersthene diorite). Closely related spatially, and possibly genetically, but predating the above-mentioned basic rocks are bodies of biotite-bearing monzoritic rocks, locally termed shonkinita.

Jan 1, 1981

By Ch. Arvanitidis

This paper presents the design solution for an actual case of settlement tanks, for a wastewater treatment plant under construction, actually founded on swelling clay (the nature of which had not been appreciated beforehand) and suffering considerable damage as a result. Two points of interest prompted the use of a numerical model as an alternative approach to the traditional method of analysis: First, the desire to compare the in situ measured deformation and displacement of the tanks with the figures calculated by the numerical model. Second the need to check the validity of the suggested solution as a remedy, i.e. the replacement of a certain thickness of clay by graded material.

Jan 1, 2005