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By D. K. Dysinger

Capital resource budgeting is the means by which managers of publicly held companies fulfill their fiduciary responsibility to maximize the wealth of stockholders. Managers maximize shareholder wealth by allocating investment capital to the most productive of competing alternative projects in a manner that maximizes the net present value of the firm's future cash flow. The techniques of cash flow analysis are the primary tools available for selecting a corporate portfolio of projects that meets or exceeds the rate of return expected by shareholders. The reliability of cash flow analysis hinges on the ability of managers to forecast the future values of individual components. The accuracy and reliability of forecasting determine the soundness of capital investment decisions and, ultimately, determine the value of the firm. The present paper will explore tools for forecasting the spot market price of a commodity, silver, to demonstrate the difficulty and uncertainty involved in forecasting the future. The commodity price is only one of a number of components of the cash flow equation. Each component has a unique and uncertain future and must be individually analyzed and forecast to arrive at a robust cash flow model.

Jan 1, 1997

By J. S. Peterson

The National Institute for Occupational Safety and Health (NIOSH), Pittsburgh Research Center (PRC), has conducted research to improve electrical fault detection on coal mine direct current (dc) trolley systems. Present circuit breaker protection systems are current-magnitude-based and cannot discern between normal traffic and high resistance electrical faults. Tests were conducted at cooperating mines to assist in developing a neural-network-based detection algorithm for distinguishing between electrical faults and normal operation. The Fast Fourier Transform of the trolley rectifier current signature served as baseline data for the neural network. During field tests, the algorithm performed with greater than 90% accuracy.

Jan 1, 1997

By Stephen P. Signer

A method to assist in the evaluation and selection of roof bolts using in situ measurements of roof bolt loading has been developed by researchers of the Spokane Research Center, National Institute of Occupational Safety and Health. Both axial and bending forces are measured by strain gauges at many locations along the length of fully grouted bolts during various stages of mining. This information is then used to ( I) predict bolt loading for variations in bolt spacing, grade, and diameter, (2) calculate the design changes necessary in zones where bending loads are high, and (3) determine if bolt length is adequate. Results from several case studies of full-column bolt loading in coal mine gate roads are used to illustrate the design method. This knowledge will give design engineers a tool for the selection of roof support systems that will improve underground safety by reducing roof bolt failures.

Jan 1, 1997

By A. M. Raichur, K. Keltner, M. Misra

The removal of oxyanions of arsenic present in mine process water and drinking water to a regulatory level (i.e. below 50 ppb) is a challenging problem. Conventional water treatment methods presently used for controlling arsenic have several drawbacks and limited success. A new adsorbent (LS™) developed at the University of Nevada, Reno, has strong specificity for both arsenate and arsenite species present in process waters. The adsorbent in very selective to oxyanions of arsenic and competition of other indifferent ions is minimum. Water samples from different sources were tested and arsenic was successfully removed to below 50 ppb. This paper describes both batch and packed column tests conducted in the laboratory as well as at the plant sites using LS™.

Jan 1, 1997

By Wade N. Ellett, K. Marc Le Vier, Timothy A. Fitzpatrick, Kenneth A. Brunk

As the gold mining industry matured through the 1980' s, and into the 1990's, the development of refractory gold orebodies has become more prevalent. Newmont Mining Corporation developed and commercialized flash chlorination for the treatment of carbonaceous preg robbing ores; Homestake Mining Company developed and commercialized the industry's first application of autoclaves. Barrick installed the world's largest autoclaves on whole ore treatment a few years later. Dry grinding and roasting followed at Placer Dome's Cortez, Freeport -Independence and Newmont's Carlin operations. Today, numerous papers are presented on research efforts worldwide which address treatment of refractory gold ores by bioxidation, roasting, autoclaving, alternative lixiviant treat­ment and other novel process ideas. The overall objectives are to develop economic processes for difficult refractory ores where no process exists or conventional practice is cost prohibitive. Successful research can lead to lower operating costs, increased profits, and increased ore reserves. One such research effort directed by E I DuPont de Nemours and Company, Advanced Mining Technologies, was focused on gold ores which were refractory in nature due to the cyanide soluble copper content. Approximately five years of research effort culminated in a patented process (U.S. Patent 5,411,575)1 and the formation of a new joint venture company, AuGMENT Technologies, in 1995 with Newmont Mining Corporation. Today significant progress has been made in moving the laboratory scale tests to commercialization.

Jan 1, 1997

By F. Djahanguiri

The US Bureau of Mines con¬ducted research on underground stope leaching of metalliferous ores. Leaching underground would minimize the environmental impact of ore processing on the surface and would maximize minable reserves. An important aspect of this process is the minimization of pregnant solution losses and groundwater contamination by leach solutions. Bulkhead design and construction are important issues for solution control and stope-leaching economics. A reinforced-concrete bulkhead was designed, constructed and tested for solution control in an underground mine near Idaho Springs, CO. This paper presents the bulkhead-design methodology and construction procedure.

Jan 1, 1997

By S. C. Schmelter

The destabilizing effect of water pressure on rock mass stability is examined quantitatively by the finite element method. A coupled code that accounts for the simultaneous effects of rock mass deformation and transient fluid flow is used for this purpose. The traditional soil mechanics assumption of an incompressible fluid is shown to be untenable for the analysis of porous, fractured rock slopes. A Mandel-Cryer effect, a transitory but elevated and potentially destabilizing water pressure following a cut, was not observed.

Jan 1, 1997

By Y. M. Jiang

Longwall faces can move at high advancing rates, but many geological variations can cause unexpected instabilities and production losses. The rapid movement makes it necessary to evaluate different geologic conditions in the rock mass as fast as possible to assess their effects on the longwall face and shields. It is believed that prompt awareness of geologic conditions is the key to preventing instability at a longwall face. This paper introduces the application of fuzzy set theory for characterizing and evaluating roof conditions. Real-time monitored data coupled with fuzzy set analysis provides valuable information, such as shield leg pressure, developing load on shields, intervals of periodic weighting and the ratio of developing loads during periodic to normal times.

Jan 1, 1997

Experimentation was performed on the flotation of apatite and dolomite separately using anionic collectors in the presence of Mycobacterium phlei. Also, the flotation of mixtures of dolomite and apatite in the presence of anionic collectors and in the absence and presence of the bacterium were studied. It was found that M.phlei functions as a depressant for both minerals. However, it functions as a better depressant for dolomite than for apatite. Experimentation was extended to two different Florida dolomitic phosphate rocks. In this investigation a concentrate grade of less than 1.0% MgO was achieved.

Jan 1, 1997

By Bruce K. Cantrell, Stephen W. Stein, Kenneth L. Williams, David Hassel, Harvey Patashnick

In June 1992, the Mine Safety and Health Administration (MSHA) published the 'Report of the Coal Mine Respirable Dust Task Group; Review of the Program to Control Respirable Coal Mine Dust in the United States." As one of its recommendations, the report called for the accelerated development of two mine dust monitors: (1) a fixed-site monitor capable of providing continuous information on dust levels to the miner, mine operator, and to MSHA, if necessary, and (2) a personal sampling device capable of providing both a short-term personal exposure measurement as well as a full-shift measurement. In response to this recommendation, the National Institute for Occupational Safety and Health (NIOSH), Pittsburgh Research Center, initiated the development of a fixed-site machine-mounted continuous respirable dust monitor. The technology chosen for monitor development is the Rupprecht and Patashnick Co., Inc. tapered element oscillating microbalance. Laboratory and in- mine tests have indicated that, with modification, this sensor can meet the humidity and vibration requirements for underground coal mine use. NIOSH is continuing that effort by developing prototypes of a continuous dust monitor based on this technology. These prototypes are being evaluated in underground coal mines as they become available. This effort, conducted as a joint venture with MSHA, is nearing completion with every promise of success. The immediate benefit of this effort will be to researchers, regulatory personnel, and mine personnel, by permitting evaluation of specific mining practices to see which expose mine workers to excessive dust levels. Using this information, mine personnel can optimize mining procedures to reduce dust exposure. MSHA and the operators will also be able to use the dust concentration data to judge whether dust plan parameters are adequate to continuously maintaining environmental dust levels below the applicable standard. The second development recommended by the Dust Task Group was a person-wearable version of the continuous dust monitor. It will be a monitoring system designed to provide a measurement of worker exposure to respirable dust, both during and at the end of the shift.

Jan 1, 1997

By S. D. Thompson

Several discrete-event simulation models have been developed for designing the conveying system capacities of underground coal mines. Most of these models require the use of a step function approach to mimic the loading process at each conveyor loading point. Over the years, practitioners have generally employed one of three versions of the step function approach. An important issue is how these three versions compare to each; other in terms of simulated capacity requirements for belt conveyors. Another issue is how they compare to the peak capacity design. This paper addresses these issues by statistically and quantitatively comparing their simulation results. The consequences and problems associated with using each version are also discussed and summarized.

Jan 1, 1997

By Babu R. Yama

Artificial Intelligence research has produced several tools for commercial application. Neural Networks, Fuzzy Logic and Expert Systems are some of the techniques that are widely used today. Artificial Neural Networks (ANNs) are excellent predictive, pattern recognition, and data analysis tools. In the mining industry, ANN techniques are being used commercially for real-time process control applications. Modeling of spatial data, ore reserve estimation, tunnel design, longwall stability prediction, and geologic roof classification are additional application areas in which neural networks have been applied successfully. A standard back-propagation algorithm was used to train a series of neural networks for a real-world predictive task. After training and optimizing the neural network architecture, performance of the network is measured on an independent validation set. Results indicate a correlation coefficient of up to 84 % between the actual and predicted values. A neural network model is developed for learning the spatial continuity of a mineral field and, consequently, for predicting sulfur values given coordinate values. The neural network performed not only satisfactorily, but in some cases performed better than the kriging model.

Jan 1, 1997

To the members of The South African Institute of Mining and Metallurgy We have audited the annual financial statements set out on pages 239 to 245. These financial statements are the responsibility of the Institute?s Council. Our responsibility is to report on these financial statements. We have conducted our audit in accordance with generally accepted auditing standards. These standards require that we plan and perform the audit to obtain reasonable assurance that, in all material respects, fair presentation is achieved in the financial statements. The audit included an evaluation of the appropriateness of the accounting policies, an examination, on a test basis, of evidence that supports the amounts and disclosures included in the financial statements, an assessment of the reasonableness of significant estimates, and a consideration of the appropriateness of the overall financial statement presentation. We consider that our auditing procedures were appropriate in the circumstances to enable us to express our opinion presented here. In our opinion these financial statements fairly present the financial position of the Institute at30th June, 1997, and the results of its operations for the year then ended in conformity with generally accepted accounting practice.

Jan 1, 1997

By D. E. Walsh

Over a period of seven years (1989-1996) the Mineral Industry Research Laboratory (MIRL) University of Alaska Fairbanks, has investigated the effects of temperature, residence time, and particle size on the degree of low-rank coal (LRC) upgrading for a non-evaporative, hydrothermal drying process, also known as hot water drying (HWD). Three Alaskan LRCs were used in this study: Usibelli coal (Seam No.4) from the Nenana Coal Field, Little Tonzona coal from near McGrath, and Beluga coal from the Beluga-Yentna field on the west side of Cook Inlet. Replicated, factorial tests were conducted. Experimental results indicate that most of the low-rank coal upgrading via HWD occurs rapidly within the first 10-20 minutes of residence time. Thereafter, the upgrading process slows down and over 100 minutes of additional residence time are required to produce similar percentage increases in coal properties to those achieved in the first 10-20 minutes. The properties of the hot water dried products were very sensitive to process temperature. Calorific value, carbon and oxygen contents, equilibrium moisture levels and Hardgrove grindabilities all appear to change linearly with temperature within the 275" C to 325" C range.

Jan 1, 1997

By J. W. Merks

Applied statistics provides scores of powerful tests and techniques that are widely used and abused in science and engineering. The variance is the basic measure for variability, precision and risk. The formulas for the variances of the arithmetic mean and the weighted average are derived from the variance of a general function, as defined in probability theory. The requirement of functional or mathematical independence in probability theory translates into the concept of degrees of freedom in applied statistics. Geostatistics is the only variant of statistics in which functional dependence and degrees of freedom are irrelevant. This paper examines whether such basic elements of probability and statistics can be ignored with impunity.

Jan 1, 1997

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

By Stephen M. Voynick

Two hours driving time west of Denver, CO and 21 km (13 miles) north of Leadville, Bartlett Mountain rises 4,065 m (13,337 ft) high in central Colorado's Tenmile Range. Bartlett Mountain is one of Colorado's most recognizable peaks, especially when the late afternoon sun casts a surreal, reddish light across its most prominent feature - the Glory Hole. This is a gaping, half-mile-wide, 245-m- (800-ft-) deep crater. Created by subsidence from 60 years of massive underground mining, the Glory Hole is a monument to the Climax Mine, one of the great achievements in American mining and metallurgy. For most of this century, the name Climax has been synonymous with brilliant mining engineering, innovative metallurgical research and entrepreneurial promotion of a once-obscure metal - molybdenum. Climax overcame an array of economic, technological and social problems to become a model for underground development of massive deposits of low-grade ores. It is one of the few mines in the world where cumulative production is measured in the billions of dollars. The Climax mineralization was emplaced 30 million years ago. Magmatic intrusions formed a large, mineralized stockwork within the granite country rock of Bartlett Mountain. Associated hydrothermal events forced superheated metal- and quartz-rich solutions through fracture zones, silicifying the country rock and depositing huge amounts of molybdenite, or molybdenum disulfide. The mineralized rock, a light gray, finely crystalline, silicified granite, is laced throughout with blue-gray quartz veinlets containing molybdenite. Although the richest ores graded only about 1% molybdenite, the Bartlett Mountain deposit contained more than 2.7 Mt (3 million st) of elemental mo- lybdenum.

Jan 1, 1997

By Robert Smith

Deposits are global, said Barrick Gold's Smith. This means that the mineral industry, by necessity, is global. "Manufacturers have considerable freedom to decide exactly where they wish to produce whatever it is that they sell," he said. "What we sell, on the other hand, must be produced where nature chose to lay it down. The question is not so much, whether to go global, as when to do it and how to go about it." The timing of international expansion depends on external factors, often political, Smith said, and on internal ones that relate to the company's size and stage of development. "In deciding how to expand, a company is largely deciding how to adapt its existing business strategy to activity on the world stage," he said Barrick entered 1997 with 1.58 kt (51 million oz) of reserves, Smith said, annual production of 93.3 t (3 mil- lion oz) and cash flow of $463 million. Reserves in- creased 40% in 1996 and production will begin to rise again significantly in 1999. "We believe our fundamental strategy is responsible for our early development and subsequent success," he said. Barrick entered the gold-mining industry in 1983. Its corporate mandate was to create shareholder value, Smith said. From the beginning, the company took a different approach - businesslike, entrepreneurial, strategic and focused. "Many mining companies start out with a technical team and develop business and financial expertise thereafter," Smith said. "In 1983, Barrick had the business people, and then moved into mining." First, it acquired part interest in two small operations, one in Alaska and one in Ontario. Then, in 1984, it merged with Camflo Mines, which operated a low-cost underground operation in Quebec.

Jan 1, 1997

You have been involved with research activities in froth flotation and size reduction. What do you think the future holds for these technologies? Froth flotation and size reduction are essential processing steps common to almost all current mineral-processing operations. The most significant recent advances in both of these technologies have been in the increased size of equipment and in some alternative machine designs, such as the column cells and the high-pressure roller mills. I believe that the next major area of improvement in size reduction will be at least partially driven by an improved awareness of controlling the conditions that influence the efficiency of particle breakage. This would include factors such as water-chemistry influences, the influence of fines from classification, chemical grinding additives and better rheology control. In froth flotation, significant changes are currently taking place in the plant use of frothers. Also, there will be an increasing number of new collector chemistries for certain types of flotation, such as with oxide minerals, oxidized mineral recovery in sulfide systems and improved selectivity with certain sulfide mineral systems. You have been active in implementing new engineering technology in industry. What do you think will be the technological future of mineral processing? Being involved in the invention and industrial implementation of new technology has been one of the most positive experiences of my career. I also have had the unique experience of working in the chemical and petroleum industries as well as in mineral processing. In my opinion, the future of mineral processing will be an exciting, wonderful work area in which to be involved. The development of new technology in minerals processing offers a special challenge compared, for example, to that of chemistry or chemical engineering. In successful industrial innovation involving minerals, having a sound theory is not enough. Instead, what is required is a valid blend of a good idea, meaningful laboratory characterization and, most key, the experience necessary to adjust the plant in such a way to incorporate the idea. The complexity of engineering systems that contain solids, liquids and gases, as well as highly variable natural mineral properties, means that nothing new comes easily. In some cases, it has been difficult to explain how processes practiced in industry for decades actually work, in terms of physical and chemical fundamentals. On the other hand, when a new idea is successfully implemented, the economic and professional returns can be very rewarding. I know of no more challenging field of engineering than minerals processing. What is your view of the future of the minerals industry in general? The need for minerals, metals and coal will be with us for decades to come. In many aspects, the minerals industry became global much earlier than some of the other industrial sectors that are currently experiencing globalization. I believe that fair international competition is beneficial to the users of minerals, metals and coals and to those involved in producing such materials. The key word here for a global economy to work is "fair." So the various playing fields involved such as finance, profit return, regulation and labor should be relatively level for all the players involved. Competition is an amazing driving force for innovation. This has been true in the minerals industry during the last few decades. The mining industry is producing more at less cost per unit than ever before in our history. I anticipate that this trend will continue as long as the global political situation remains relatively stable.

Jan 1, 1997

The green field discovery of a two million ounce high-grade refractory gold ore deposit in the Indonesian Province of Sulawesi Utara, led Newmont to utilise its proven technical expertise in dry grinding and whole ore roasting to develop a 2000 tonne per day, 160 000 ounce per year operation in this remote and picturesque location.Located at an elevation of 250 in above sea level and ten kilometres to a deep water natural harbour, the hard rock open pit mine, process plant and infrastructure facilities were built to budget at a capital cost of US$132 million. The plant was commissioned with oxide ore, with the first gold poured in March 1996 and with refractory ore in January 1997. The operation rapidly met its production targets because of extensive forward planning and training programs developed for the local workforce. The presence of steep topography, fertile coastal plains, high rainfall, high seismicity of this location led to the decision to dispose of neutralised tailings in deep water off the coast instead of impounding tailings in a dam. This paper describes the development of the project and the challenges in developing a gold operation in a remote location which lacked infrastructure, the steps taken to ensure a smooth commissioning, and the selection of the workforce to operate a technically sophisticated facility.

Jan 1, 1997