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By Edgar A. Scholz, Attilio G. Spat

The rapid worldwide increase in labor costs, prices of goods and services, and the rising tide of economic nationalism do not bode well for the future of mineral exploration and the mining industry. The increasing complexity and difficulty involved in finding economic mineral deposits makes these trends particularly significant. A comparative cost analysis of domestic and foreign exploration projects which developed into mines during the period 1960-74 may be useful in indicating the general nature of exploration expenditures as these trends continue. This analysis is based on a survey of 18 US and Canadian mining companies. Due to the inexact nature of exploration expenditure data, plus the fact that no two mining companies follow the same system of cost allocation, the results of the survey must be considered quite general in character.

Jan 6, 1977

By J. J. Jakosky

The strategic importance of the metallic minerals in our industrial economy, and the declining rates of discovery have focused attention on means of exploration for new mineral deposits. A consideration of exploration techniques leads to an attempt to evaluate the effectiveness of geo- physics as a tool for mining exploration. One means of evaluation will be to compare the use of geophysics in petroleum exploration with its possible uses in mining.

Jan 1, 1949

By Donald Towse

Geothermal heat might become an important fuel for several reasons: (1) To substitute for other scarce and critical fuels. (2) Because it may be less costly to the user than alternate fuels. (3) Because its production may be more profitable than production of other fuels. (4) Or for a number of other more or less non-economic reasons such as convenience or because of less environmental impact. In competition with conventional and other non-conventional fuels, geothermal heat must score well on one or more of those points. This study first considers projections of energy needs in several United States economic sectors and the technical possibility of geothermal heat substituting for other fuels in those sectors. Then, reported and projected costs of energy from geothermal heat are compared with costs of other fuels to show the relative costs of fuels in several economic sectors. Relative costs are reported from a sample of real and hypothetical geothermal projects. The actual cost of energy will vary with each application and the particular circumstances of each geographic location.

Jan 1, 1975

By Firoze E. Katrak, John R. H. Black, Paul R. Ammann, Michael J. Loreth, Servi. Italo S.

Germanium is produced primarily as a by product from zinc concentrates. The important sources of gallium are alumina ores (bauxites) and zinc concentrates and residues from zinc processing. In addition, gallium as well as germanium may soon be recovered from a depleted copper mine near St. George, Utah. The major uses for germanium are in semiconductors, lenses in infrared optical systems, catalysts, and gamma radiation detectors. The major markets for gallium are in light-emitting diodes, solar cells, laser diodes, integrated circuits, microwave devices, and magnetic bubble memories. CRA projects a healthy growth in the demand for both metals. However, the role of scrap metal will continue to be important over the next decade, thus decreasing the overall demand for primary gallium and primary germanium. This paper summarizes the key elements and the economics of the markets for germanium and gallium. Much of the information, such as plant-by-plant costs of production and estimates of consumption by end use for various countries is from proprietary databases of Charles River Associates.

Jan 1, 1986

The economics of gold differs from that for base metals mainly because a large component of gold demand is investment or stock demand whereby the metal is purchased and stored for monetary or anxiety motives rather than fabricated into industrial products.The second major component of gold demand is fabrication, principally into jewellery but also, to some extent, into industrial products.Supply to the Western private- gold market comprises non-Communist mine production, Communist sales (chiefly from the USSR), and, finally, net sales by the Western Central Banks, which have total stocks of about 35,000 tonnes and which are sometimes net buyers as well as sellers.The different components of demand and supply fluctuate from year to year.

Jan 1, 1984

By R. S. Shoemaker, R. M. Darrah

Expanded markets for copper in the past few years and a consequent search for new ore bodies have revitalized the widely known but seldom applied method of producing copper called heap leaching. Heap leaching is defined here as the process applied to oxide ores which have been mined solely for the purpose of leaching. In this case, all costs of mining the ore become a part (and a substantial one, as will be shown) of the cost of the copper produced, whereas in dump leaching the mining cost has already been accounted for as a stripping cost for the sulfide ore. Of course, with newly opened ore bodies, stripping costs may be divided through accounting procedures, between the copper produced by the mill and that obtained by leaching, but in general this type of operation must be economic on the basis of the sulfide ore alone. Heap Leaching Requires Low Capitalization Heap leaching, as a beneficiation method, is unique in that it is the only process used for the recovery of a metal in which the time involved from mining the ore to metal production is measured in months instead of hours or at the most, days. Then too, after the ore body has been depleted and mining has ceased, metal production will continue for some substantial period of time. Heap leaching is also unique because unlike any other method of beneficiation, metal recovery cannot be accurately forecast ahead of time and recovery will never approach that of a conventionally milled sulfide ore or even that of a vat leached oxide ore. Counter-balancing this drawback, however, is the relatively low capital expenditure necessary to put a heap leaching operation into production and the consequence that smaller ore bodies which would not support the higher capital cost involved in a vat leaching plant can be made into producers. Stated more simply, in heap leaching the operator accepts low recovery in exchange for low capital costs and low break even point. Whether the operator chooses vat leaching with its higher recovery and higher capital costs, is a mater of economics which depends in part on the nature of the ore to decide. For instance, an ore that will vat leach in 7 to 10 days using 7 pounds of sulfuric acid per pound of copper produced might use double or triple that amount of acid during the months that are required for heap leaching.

Jan 12, 1968

By R. S. Shoemaker

Expanded markets for copper in the past few years and a consequent search for new ore bodies have revitalized the widely known but seldom applied method of producing copper called heap leaching. This term should be differentiated from dump leaching in that the latter is applied to dumps of mixed oxide and sulfide ores (although either may predominate) that have been too low grade to beneficiate and have, therefore, been stripped off the higher grade underlying sulfide ores. Heap leaching is defined here as the process applied to oxide ores which have been mined solely for the purpose of leaching. In this case, all costs of mining the ore become a part (and a substantial one, as will be shown) of the cost of the copper produced, whereas in dump leaching the mining cost has already been accounted for as a stripping cost for the sulfide ore. Of course, with newly opened ore bodies, stripping costs may be divided through accounting procedures, between the copper produced by the mill and that obtained by leaching, but in general this type of operation must be economic on the basis of the sulfide ore alone. Heap leaching, as a beneficiation method, is unique in that it is the only process used for the recovery of a metal in which the time involved from mining the ore to metal production is measured in months instead of hours or at the most, days, Then too, after the ore body has been depleted and mining has ceased, metal production will continue for some substantial period of time. Heap leaching is also unique because unlike any other method of beneficiation, metal recovery cannot be accurately forecast ahead of time and recovery will never approach that of a conventionally milled sulfide ore or even that of a vat leached oxide ore. Counter-balancing this drawback, however, is the relatively low capital expenditure necessary to put a heap leaching operation into production and the consequence that smaller ore bodies which would not support the higher capital cost involved in a vat leaching plant can be made into producers. Stated more simply, in heap leaching the operator accepts low recovery in exchange for low capital costs and the break even point, that is, where the operator should go to vat leaching with its higher recovery and higher capital costs, is a matter of economics and also, to a great extent, a matter for the nature of the ore to decide. For instance, an ore that will vat leach in 7 to 10 days using 7 pounds of sulfuric acid per pound of copper produced might use double or triple that amount of acid during the months that are required for heap leaching.

Jan 1, 1968

By John J. Borkert, Carl E. Gerity

In situ mining offers a new and proven method of exploiting sedimentary uranium deposits. The feasibility and economic evaluation of exploiting a uranium reserve by either open pit or underground mining should also include a similar study for in situ mining. This report compares the economics of mining several hypothetical uranium deposits at various depths, grades and reserve sizes by open pit and in situ mining. The evaluation process evolved establishing, where possible, common geological and logistical parameters to both methods of mining. The various assumptions that are unique to either open pit or in situ mining were also drafted, where possible, as equal and common functions to be used in each economic evaluation of the reserve models. After the various parameters were defined, they were programmed to an economic analysis of the various hypothetical uranium deposits by the selected mining method. From the vast array of cost evaluations, total capital and operating cost per pound U308 produced, DCF-ROI, and total net profits before State and Federal taxes were selected as the most meaningful results to compare. From the various geologic parameters used, it was determined that the economic viability of a mining venture is most sensitive to a depth-grade thickness ratio. The three selected evaluation products were plotted against the various depth-grade thickness ratios of the hypothetical uranium deposits. The results of the economic cost analyses show in situ mining generally to be a better method to maximize total net profits and to maximize return on investment.

Jan 1, 1979

By Scott A. Stebbins

Cost evaluation models constructed specifically to evaluate the economic potential of an individually motorized railcar system of ore and waste transport demonstrate that the approach may be considerably more cost effective than traditional rubber-tired haulage methods. The system design places a motorized drive unit on each railcar, as opposed to the more common configuration in which a series of un-motorized cars trail behind a single locomotive. These motorized railcars are directed to various load and dump points by a computerized dispatch system, and as such have the advantage of operating unmanned. In addition, the tractive effort of the rail-type drive system is noticeably more efficient than that of the rubber-tired mode of transport. The savings are realized primarily through comparative reductions in the requirements for labor and, to a lesser degree, energy.

Nov 1, 2011

By Frank H. Skelding

A new, large mine is about to be born. Many years and millions of dollars have been invested in exploration. An orebody has been found and proven. All necessary political and legal work to establish rights and conditions for development are complete. The feasibility studies are favorable. Financing has been arranged. Board approval has been given to proceed. The time has come to engage a contractor to design and build the new facilities in a location, as is the common case today, far re¬moved from the centers of advanced technologic development where the minerals will ultimately be used. A select list of Engineering and Construction (E&C) companies is asked to prepare proposals. At this point the common viewpoint among mining companies is that the company's sole remaining problem, a major one to be sure, is to select qualified contractors to design and build the project at the lowest cost and shortest time possible so that production can start generating a return on investment. The purpose of this discussion is to explore the viewpoint of the large E&C contractor toward such projects. It differs in important ways from that of the client mining company and it is these differences and the reasons for them that must be understood by the client if severe difficulties and misunderstandings with the contractor, starting at the beginning of contract negotiation and continuing through design and construction to final startup are to be avoided or minimized. Often enough, the difference is in degree, not kind, which only serves to obscure the fact that a difference exists.

Jan 1, 1975

By Bianca Foggiatto, Marcos Bueno, Rajiv Chandramohan, Eddie McLean, Greg Lane

"With the increasing depletion of high-grade ore deposits, smarter mineral processing solutions are required to achieve sustainable and economic methods for mining and processing low-grade deposits. In order to make the treatment of low-grade deposits economically viable, large quantities of rock need to be mined and processed. The associated infrastructure costs (power, water supply, accommodation and support services, waste storage) result in a substantial penalty on the project, from both capital and operating cost perspectives. As a consequence, the challenge for the mining industry is to overcome the associated rise in energy and water consumption as well as increased project complexity when processing large amounts of low grade ore. Ore sorting technologies have been used for many years, predominantly on small projects, enabling the upgrade of marginal ores. Several sorting methods based on characteristics including specific gravity, radiometry, colour, particle size, grade and other detectable physical characteristics have been employed. The challenge for large low-grade ore bodies is to crush and sort at coarser rock size in order to minimise specific energy consumption in comminution and to reduce waste disposal costs. For large projects, the understanding of the economic impact of ore sorting is limited. The economic drivers include plant head grade improvement; sorting infrastructure capital, operating and maintenance costs; waste material handling and other environmental costs related to waste disposal. This paper analyses the economic impact of ore sorting in a large mineral processing operation. The focus of the analysis is to compare NPVs for a circuit including screening and ore sorting stages. A project for processing an Australian copper sulphide ore is considered as an example for this study."

Jan 1, 2014

By James H. Dye, N. E. Norman

There will be about 300 raise boring machines used worldwide by late 1981, attesting to the acceptance of this drilling system by the mining and construction industries. Over the past few years, many articles have cited the advantages of raise boring: •improved safety; •faster completion of the raise; •elimination of sublevels; •cost reductions; •better structural characteristics of the opening; •labor reduction; and •noise abatement. The relative importance of each advantage varies from mine to mine. When analyzing the total economics of raising, each advantage must be considered. The factors having the most effect on economics are fixed costs, direct costs, and comparative savings versus conventional methods.

Jan 3, 1981

By A. P. LeBis

This article attempts to relate the concept of utility to the risk involved when only a small number of projects (compared to their probability of occurrence) are accessible to a firm and to quantify utility when other financial and physical parameters are known.

Jan 1, 1978

By John Gill

THE purpose of this paper is to invite attention away from the obvious, direct monetary costs of oil-field overdevelopment (as dis-tinguished from "social costs") to a consideration of the role played by the exercise of freedom to create even allegedly excessive1 plant facilities in contributing to the maintenance of equilibrium in the whole economy and in promoting material progress. The obvious and most commonly discussed effect of overdevelop-ment of oil fields is illustrated by the allegation that already the excessive development of the East Texas field has cost upward of $162,000,000;2 in other words, the drilling of 12,500 wells more than the number esti-mated as the requirement for economical recovery of the reserve has unnecessarily raised the total cost of development that amount. Many other illustrations of so-called excessive development of oil pools could be presented. Some of them, like Cushing, Powell and Long Beach, might be drawn from the era antedating widespread discussion in the trade of such matters as optimum well spacing, reservoir energy, the conservation rate of depletion of reserves, etc. Numerous other cases can be found in the records of the current era, which began with the introduction of rationalized restriction of production. Besides East Texas, there may be mentioned Oklahoma City, Centralia and, more recently, the town-lot development of Bloomingdale, Michigan.

Jan 1, 1939

By Scott K. Palm

The initial intent of the Hazard Communication Standard (HCS) was to improve worker health by providing more information about the hazards of chemicals used in the workplace. However, the impact of the HCS goes well beyond worker right-to-know. There are direct costs associated with compliance. In addition, labelling and hazard communications can provide a competitive advantage to producers of minerals that have not been identified as hazardous. Often, the lack of hazardous information about a substance is due to the lack of scientific study, rather than an indication of product safety. Currently, industry and regulators sometimes give known hazards greater weight than unknown risks.

Jan 1, 1991

By E. C. Wright

FOR many years the cost of making pig iron and steel in the Birmingham district has been about the lowest in the United States. The close proximity of the important raw materials such as coal, iron ore, limestone, and the large available scrap supply made it possible to assemble all of the important ingredients necessary for steel-making with only nominal costs for transportation. Both iron ore and coal were being mined in this district at one time for about $1 per ton from underground operations. At that time mining wages were low everywhere and the labor rate in the South was considerably below that of other mining districts. This situation persisted until the emergence of labor unions as an economic and political force, emigation of southern labor to northern plants, and continued growth of industry in the South in the years following the depression of 1932. Since that time union organizing of miners and steel workers throughout the nation has increased labor costs in mining and steelmaking. This influence has been felt particularly in underground mining operations since the proportion of labor cost to total cost is still high. The previous advantage in basic labor rate in the South has been almost entirely eliminated by the equalization of labor rates in basic industries by national unions.

Jan 12, 1950

By D. V. Bush

There has been a great deal of evaluation and discussion on the economics of semi- autogenous grinding versus conventional grinding circuits. This paper will not discuss the merits of one system over the other, but rather will discuss the Henderson Mill's approach toward achieving the most economical milling conditions in its existing SAG mills.

Jan 1, 1985

By Hugh Douglas

In the past two years recent increases in silver prices over levels that prevailed for many years have changed supply/demand patterns. On the supply side, a silver mining boom is in progress in the United States and elsewhere. On the demand side, traditional uses of silver by individuals are dropping while industry is conserving. These changes will alter the supply/demand balance and bring about more moderate rises in silver prices, which in turn will impact the mining industry.

Jan 1, 1981

By L. R. Verney

A number of interrelated factors influence the economics of the sulphide smelting of copper, lead, zinc and nickel. This paper discusses these factors, mainly from a US point of view, and shows how they affect the cost of construction and operation of new and existing plants. The paper shows how metallurgical plant construction costs and the consumer price index have increased at a much faster rate than metal prices thereby making some metal mining and production operations within the USA, Canada and the EEC less profitable than operations elsewhere. This in turn inhibits new "grass roots" metallurgical developments. It is explained how retrofit of existing pyrometallurgical plants can be a more viable development than the construction of "green field" plants, especially if such retrofit improves, energy efficiencies, overall operating costs and reduces emissions of sulphur and other toxic wastes. Some aspects of metallurgical plant operation are examined, especially for copper and nickel, to show how changes in operating practices may develop in order to improve overall smelting economies, especially when developed in conjunction with objective retrofit. The paper also examines some financial aspects, especially insofar as the disparity between terms for loans offered to third world countries and the USA and the EEC are concerned and also comments upon the need, especially within the USA, for legislation to permit rapid depreciation of capital. Specific comments are made about environmental aspects, including the lack of uniformity of pollution control legislation and how environmental considerations may have some bearing of the location of future smelting operations.

Jan 1, 1983

By Lawrence S. O’Rourke

Pricing for tantalum raw materials experienced explosive increases in the period 1978-1979, and-similar declines over 1980-1982. The causes for this are examined. Negative effects on the industry are highlighted. Analysis is provided of subsequent structural changes within the industry which minimize probability of future pricing excursions. Data on markets, sources of material, and outlines of concentration and extractive processes are reviewed. The conclusion is reached that expanded sources, future flat demand, and a broader international base of industry participants are principal forces in this restructure. Flat demand is reviewed as a function of increasing application of tantalum, but in more cost effective forms. This is driven by technical advance, notably in electronics applications.

Jan 1, 1986