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By Stephen A. Orr

Underground mining is a dynamic art and science with a diverse set of design, production, and economic criteria that must be considered before selecting an optimal method to extract the ore. While all methods can be technically classified as either self-supported, supported, or caving, the multitude of subsystems and existing variations bear witness to the fact that each orebody is unique and, as such, justifies an individual approach to optimize mineral extraction. In this sense, underground mining is an art. The ability to evaluate the unique characteristics of each ore body and utilize sound engineering principles to design the optimal system constitutes effective method selection. The task by no means ends at this juncture, however. Subsequent implementation requires an ability for modification. Very rarely are all the facts available to make a concrete decision prior to development of the resource. As a result, the risk of a wrong decision can never be eliminated. This requires a significant degree of flexibility with each method. Each unit of exploration, development, or exploitation work contributed to a deposit enhances knowledge of the ore body. The best mining methods are those that correctly account for the known parameters but provide an allowance for change at minimal cost and adapt to unanticipated conditions.

Jan 1, 2008

By J. Diao

In order to understand the flotation kinetic behavior of coal and associated mineral matter, a detailed investigation was conducted in a 2-liter Denver flotation cell using three high sulfur coals at three feed sizes, minus 28. 100 and 200 mesh. Subsequently. the flotation products were sieved into different size fractions and analyzed for their ash and pyritic sulfur content in order to delineate the effect of particle size on the rate at which each constituent floats. The results were tested with several different flotation kinetic models and the best model for coal was then chosen. The flotation rate constant and the ultimate recovery calculated from a kinetic model were used to delineate the effect of particle size, collector (dodecane) and frother (MIBC) dosages on the flotation kinetics of coal, ash and pyrite.

Jan 1, 1992

By Marcos de Paiva Bueno, Leonardo Ribeiro Lara, Rajiv Chandramohan, Thiago de Almeida, Greg Lane

This paper explores the impact of the significant difference between the number of geochemical assays conducted for grade estimation and the number of comminution tests performed for throughput and performance forecasting. Both grade and throughput are key factors in determining the project. We analysed 154 feasibility study reports to assess the impact of sample frequency for comminution test work on project revenue. This disparity in size between assay and comminution data arises because geological and resource-grade risks cannot be managed without extensive geochemical testing, whereas comminution risks are traditionally mitigated through design methods and the use of contingencies. This approach is partly due to the relatively high cost and large sample requirements associated with traditional comminution tests. Our analysis demonstrates that insufficient comminution sampling and testing leads to uncertainties in throughput forecasts, creating significant financial risks. Data from the feasibility studies show that a 1% change in mill throughput can result in up to a 5% variation in Net Present Value (NPV), underscoring the sensitivity of project economics to operational performance. Building on previous work, we reference studies that reveal how low frequency of comminution testing can increase uncertainty in mill throughput forecasts and increase financial risks. We propose an approach that optimises the number of comminution samples tested to enhance forecast accuracy and reduce NPV variance. By adopting this approach, mining projects can improve financial reliability and mitigate risks associated with underperformance in SAG and AG mill-based operations.

Feb 1, 2025

By Mingming Zhang, Marshall S. Coe, Marcelo W. Andrade

To supply iron units and flux burden in blast furnaces, sinter basicity is one of the vital parameters for sinter plants. The sinter basicity also plays an important role in sinter quality since it imparts the formation of different mineral phases in sinter. Pot-grate sintering tests were carried out with low and high basicity to investigate the effects of sinter basicity on sinter mineralogy, properties and productivity. It was found that with an increase in sinter basicity, both sinter productivity and reducibility (RI) increased. Tumbler index (TI) and low temperature degradation index (LTD) of high basicity sinter were comparable to low basicity sinter. Softening and melting tests showed that sinter with 3.5 C/S basicity had slightly higher softening temperature comparing to lower basicity sinter with C/S 2.6, acid and fluxed pellets. XRD analyses confirmed the formation of silico-ferrite of calcium and alumina (SFCA) and calcium ferrite (CF) in the tested sinter samples.

Jan 1, 2015

By R. L. Grayson

"Compliance standards for respirable dust, which are reduced because of high quart: concentrations, have become an industry-wide problem. Research on the physical and chemical character of quart-classified particles in respirable coal mine dusts indicates that they may exist in intermixed layers or may be coated by clay or coal material. The relative amount of intermixing varies with the coal seam being mined. If most of the quart: particles of a mine dust are ""pure,"" then the dust may have a high fibrogenic risk potential because of truly free silica and the compliance standard should be lowered. lf, however, quart: is locked inside another material matrix, or coated, a reduced compliance standard may not be appropriate.Although much research has been done on coal workers' pneumoconiosis (CWP) over the past decades, the etiologic agents of the disease still have not been pinpointed. The predominant methods of characterizing respirable coal mine dusts were bulk analysis techniques for determination of elemental and mineralogical concentrations, the results of which were used in statistical analyses to determine relationships between dust composition and the occurrence of CWP. These methods are incapable of finding the etiologic agents in the dust primarily because of complicated and confounding physiochemical factors, which may be discovered if the focus of characterization was done on a dust particle level.The SEM/EDXA-based research discussed here shows a significant difference in the number of ""pure"" quartz particles in respirable dusts collected from different mines. Some of the results have been reported previously (Grayson, Andre, and Simonyi, 1988). Concurrent research by other investigators (Wallace et al., 1989) demonstrates an SEM/EDXA-based methodology to pinpoint the location of the ""contaminating"" substance(s ) in a quartz-classified particle. The research of the European Economic Community has also begun analyses on the respirable-dust-particle level (Robock and Bauer, 1988).Since the compensatory and intangible costs of CWP are substantial in the United States, it is important that the etiologic agents be determined and then either controlled or neutralized in a cost-effective way. This line of research is especially important consid-ering the forecasted. near-term growth of coal production and the evolution of high productivity longwall panels (an immediate problem in compliance) and continuous mining sections ( a probable future problem).This need has been accentuated now that nearly all respirable dust samples submitted to MSHA are analyzed for free silica (Tomb, Parobeck, and Gem, 1986). Today a real problem exists in the coal industry, both underground and surface, because of high quartz levels in respirable dusts causing substantially reduced compliance standards (Murphy, 1989).The combined results of the respirable dust particle investigators indicate that conventional bulk sample analyses may not faithfully represent the amount of biologically available or active quartz in all mines with a high level (greater than 5% ) of quartz in the dust For example, some mine dusts might contain predominantly occluded (or coated) quartz particles where bulk analysis would result in anomalously high ""free silica"" measurements. The same result would occur when quartz particles are intermixed substantially with other minerals that can alter the surface of the composite particle away from a quartz-behaving character."

Mar 1, 1992

By AIME AIME

The Bulletin. The Bulletin of the Institute will be issued hereafter monthly instead of bi-monthly as heretofore. Among other reasons for this change, it is desired to effect thereby the earlier transmission to members of important papers, lists of candidates tin? membership, and other items of timely information. The New Haven Meeting. As already announced in special circular, the XCVIth meeting of the institute for the reading and discussion of papers will be held at New Haven, Conn., beginning Feb. 23, 1909. The Secretary of the Local Committee is Prof. J. D. Irving, Box D, Yale Station, New Haven. The program embraces visits to many interesting works in New Haven, Ansonia, Bridgeport, etc. The leading topics for discussion at the sessions will lie: The Conservation of Natural Resources; A Sea-Level Canal at Panama; and The Technical Education of Mining Engineers. But papers on other subjects also are announced. Lt is probable that a supplementary session of this meeting, will be held in New York City, at some time during March, 1909, as a joint session with other national engineering societies, for the farther discussion of the subject of The Conservation of Natural Resources. A Pacific Coast Meeting. It is now reasonably certain that the XCVIIth meeting will be held oil the Pacific Coast, including a. visit to the Exposition at Seattle, and various other points en. route going or coming, depending upon the route and program finally adopted. (lore definite information will be announced at the New Haven Meeting, or at the earliest possible date thereafter.

Jan 1, 1909

The fifth convention of the National Foreign Trade Council was held in Cincinnati, Apr. 18, 19 and 20. More than one thousand accepted delegates were registered, the American Institute of Mining Engineers being represented by W. L. Saunders and W. N. Thayer. The convention was called to order Thursday morning, Apr. 18, in the convention hall of the Hotel Gibson; by the Chairman, Mr. James .A. Farrel, president of the U. S. Steel Corporation, and was in continuous session for two clays, several group sessions being held simultaneously. The convention adjourned Saturday morning after receiving the report of the central committee. The dominant themes of the convention were: First, "Win the War" and second, "Establish Foreign Trade on a. Firmer Basis." The discussions included textiles, lumber, chemicals, automobiles, finance, and agriculture, and also those things in which mining engineers are particularly interested, metals, oil, and coal. The report of the central committee, which was adopted, recommended the stimulation' of production of all materials required for war purposes; the subordination of all trade that will not impose new and heavy penalties on our adversaries; the maintenance of such foreign trade as will support national credit and supply materials required for military and naval purposes; the continued interchange so far as possible of merchandise and products between the United States and. Latin-America, Asia and Oceania; the immediate increase of tonnage in the north Atlantic; the cheerful and whole-hearted cooperation of importers

Jan 6, 1918

By H. R. Hanley

ONE of the most important contributions to the art of electrolytic zinc production-has been the aluminum cathode. This has been used in all major production: since its commercial development in 1916. The literature is replete with important contributions, some of which may have been replaced by better ones, but thus far there appears no other metal to take the place of aluminum as cathode material. Credit for this innovation goes to Sherard Cowper Coles, of England. When experi-menting on the extraction of-zinc from Broken Hill ore at Hayle, Cornwall, in 1893, he introduced the aluminum cathode, and in 1895 obtained British Patent-No. 20073. The reason for this dominant position of aluminum as cathode mate-rial in zinc sulphate electrolytes is its unique surface, to which electro-deposited metals usually do not tightly adhere. The metal must be of high purity for best results. It is possible to develop a starting-sheet method by which thin electro-deposited sheets of cathode zinc are made and stripped from a smooth aluminum plate. Such thin sheets of cathode zinc may be used as arc tine copper sheets in standard electrolytic copper-refinery practice. However, complications arise because of extreme warping of the zinc starting sheet after a .few hours of deposition, and thus special arrangements must be made to compensate for this abnormality.

Jan 1, 1938

By C. G. Kirkpatrick

Analysis of the data produced by a wide-band, sensitive, horizontal, biaxial motion sensor has revealed several distinctive patterns before, during, and after a roof fall. The signals prior to the roof fall are similar in spectra, but one thousand times larger in amplitude, than those after the roof fall. Immediately preceding the roof fall, by two to twelve hours, five events occurred which were larger in amplitude and lower in frequency than even the large pre-roof fall background signals. An interpretation of these events is offered.

Jan 1, 1979

By H. R. Hanley, Charles Y. Clayton

One of the most important contributions to the art of electrolytic zinc production has been the aluminum cathode. This has been used in all major production since its commercial development in 1916. The literature is replete with important contributions, some of which may have been replaced by better ones, but thus far there appears no other metal to take the place of aluminum as cathode material. Credit for this innovation goes to Sherard Cowper Coles, of England. When experimenting on the extraction of zinc from Broken Hill ore at Hayle, Cornwall, in 1893, he introduced the aluminum cathode, and in 1895 obtained British Patent No. 20073. The reason for this dominant position of aluminum as cathode material in zinc sulphate electrolytes is its unique surface, to which electro-deposited metals usually do not tightly adhere. The metal must, be of high purity for best results. It is possible to develop a starting-sheet method by which thin electro-deposited sheets of cathode zinc are made and stripped from a smooth aluminum plate. Such thin sheets of cathode zinc may be used as are the copper sheets in standard electrolytic copper-refinery practice. However, complications arise because of extreme warping of the zinc starting sheet after a few hours of deposition, and thus special arrangements must be made to compensate for this abnormality. Reasons advanced for the ease with which deposits may be stripped from the aluminum surface are: (1) presence of a permanent oxide coating on the metal, (2) failure of aluminum to alloy with the deposit, (3) differences in coefficient of expansion, (4) high position of aluminum in the electromotive scries of metals. Of these reasons for nonadherence, which may have some application in general deposition, probably the oxide coating has the greatest bearing on the subject of zinc deposition. Adherence of zinc deposits has occasionally had serious effect on tonnage and production costs. Opinions have differed as to the specific

Jan 1, 1943

By H. R. Hanley, Charles Y. Clayton

One of the most important contributions to the art of electrolytic zinc production has been the aluminum cathode. This has been used in all major production since its commercial development in 1916. The literature is replete with important contributions, some of which may have been replaced by better ones, but thus far there appears no other metal to take the place of aluminum as cathode material. Credit for this innovation goes to Sherard Cowper Coles, of England. When experimenting on the extraction of zinc from Broken Hill ore at Hayle, Cornwall, in 1893, he introduced the aluminum cathode, and in 1895 obtained British Patent No. 20073. The reason for this dominant position of aluminum as cathode material in zinc sulphate electrolytes is its unique surface, to which electro-deposited metals usually do not tightly adhere. The metal must, be of high purity for best results. It is possible to develop a starting-sheet method by which thin electro-deposited sheets of cathode zinc are made and stripped from a smooth aluminum plate. Such thin sheets of cathode zinc may be used as are the copper sheets in standard electrolytic copper-refinery practice. However, complications arise because of extreme warping of the zinc starting sheet after a few hours of deposition, and thus special arrangements must be made to compensate for this abnormality. Reasons advanced for the ease with which deposits may be stripped from the aluminum surface are: (1) presence of a permanent oxide coating on the metal, (2) failure of aluminum to alloy with the deposit, (3) differences in coefficient of expansion, (4) high position of aluminum in the electromotive scries of metals. Of these reasons for nonadherence, which may have some application in general deposition, probably the oxide coating has the greatest bearing on the subject of zinc deposition. Adherence of zinc deposits has occasionally had serious effect on tonnage and production costs. Opinions have differed as to the specific

Jan 1, 1943

By Albert E. Ketler

Introduction – The introduction of computerized monitoring and control (M/c) equipment into the U.S. coal mining industry may prove to be of truly revolutionary proportions in the 801s.Many of you are aware that the British have developed and have been using such sophisticated M/C equipment for performing production and safety related tasks in their coal mines for nearly a decade. The benefits of M/C systems in the mining industry are usually separated into those which improve productivity, and hence make money for the company, and those which improve safety, and hence cost money. The economic benefits of M/C are startling for the production related functions such as for monitoring and controlling conveyor belts, de-watering pumps, electrical power distribution, and the like. It doesn't take much analysis to show that hundreds and even thousands of tons of coal don't get mined every time a belt shuts down or when power is out due to circuit breakers tripping for any number of reasons. A flood, caused by a malfunctioning pump which goes undetected for lack of feedback monitoring of pumping parameters, can destroy literally millions of dollars worth of mining equipment. The M/C system would be justified or not based on whether or not the productivity benefits balanced the cost within a timespan commensurate with the return on capital philosophy of the company. The safety related benefits are easily underestimated or ignored completely and the purpose of this paper is to under-score some of these benefits, as well as to review the application of M/C to the coal mining industry. The companies involved are Transmitton Ltd of England and Minetics Corp of Pittsburgh, Pennsylvania. Transmitton is probably the most experienced manufacturer of M/C equipment in the world having some 200 installations to its credit. Minetics is the marketing and manufacturing arm for Transmitton in the U.S.A. and is responsible for all aspects of distribution and service. Plans are underway for manufacturing of the Transmitton hardware for U.S. sales to be transplanted into U.S. subcontractors by 1981. Thus our coal mining industry will benefit from British technology, but without the delays and additional costs usually involved in international shipments.

Jan 1, 1981

By V. M. Paretsky

The basic work conducted by Prof. A.Yazawa has demonstrated that in order to ensure single- stage white metal production by autogenous smelting of copper sulfide raw materials, it is most favorable to use highly basic slags, in particular oxide systems CaO-FeO-Fe2O3-SiO2. The special studies have been conducted in the Gintsvetrnet Institute to investigate the composition and structure of slags produced on a semi-commercial scale when testing the KFP and FBP processes for white metal smelting. as well as the slag obtained in a full-scale KFP furnace at the Almalyk copper smelter. The investigations conducted have demonstrated why production of high-grade matte or white metal is associated with lower loss of copper in slag in a series: silicate slag I silicate-calcium slag I ferrite-calcium slag.

Jan 1, 2003

By Walter Miller

The broad picture of petroleum refining engineering during 1934 continued to show a tendency in the direction of highly specialized processing improvements, particularly in manufacture of lubricating oil. The slowing up of the trend toward higher octane products in non-premium gasoline noticed in 1933 was definitely established as a fact by 1934 development, with just a slight indication of recession. No outstanding engineering achievements can be credited to 1934 in refinery cracking, unless the completion and successful operation of the 30,000-bbl. crude capacity combination cracking and skimming unit at Texas City, Texas, and a 20,000-bbl. similar unit in the East can be listed as such. Development and improvement was largely a continuation of previous lines of endeavor. Such trend as there is shows a continnation in the direction of very large integrated skimming and cracking units. A lessening of the cost of ethyl lead, coupled with the reaching of the octane number "ceiling," kept the subject of "reforming" low-octane gasoline into high-octane products pretty well in the background. Considerable interest, however, was shown during the year in cracking and polymerizing of refinery gases into high-octane motor fuel. The commercial development and application of this activity was greater in 1934 than during any previous year. Fair yields of gasoline of satisfactory stability and high antiknock value were reported, ranging from 2 to 8 gal. per 1000 cu. ft. of fixed refinery gas, yields varying with both the nature of refinery gas treated and processing methods. Assuming economic feasibility, regarding which there is still difference of opinion, gas polymerization offers the industry a possible outlet for its gases more in keeping with its basic chemical composition and value. The increased interest of railroads and heavy-duty truck and tractor manufacturers served to focus more attention on diesel fuels. The publicity given the Union Pacific diesel train, the Burlington "Zephyr" and others operated on special diesel fuels served to revive the intimations and fears of several years ago as to the ultimate replacement of the gasoline motor by diesel engines in even the passenger car field. How-

Jan 1, 1935

By K. L. Williams

The Bureau of Mines laboratory tested the response of a commercially available real-time aerosol monitor (GCA RAM-1) to various dusts. Monitor measurements were recorded, averaged, and compared with simultaneous gravimtric measurements of each test dust. Tests usually lasted several hours. The test dusts of various particle size distributions used included coal, limestone, and a commercially available test dust. For each particular dust, the monitor response was linear and correlated well with mass concentration over the range of about 0.5 to 10 mg/m3. The monitor can estimate a 2.0-/m3 respirable coal dust concentration within as little as 26 pct with 95 pct confidence. The monitor must, however, be calibrated with the dust to be measured because the instrument response is affected by the type of dust particle. The average monitor response to same mass concentration of coal dust was approximately twice the average monitor response to the same mass concentration of limestone dust.

Jan 1, 1984

Abbey, Robert Graham, District Mgr.. The W. W. Sly Mfg. Co., 50 Church St.. New York, N. Y. '21 Abbott, A. N., Mines Supt., Mazapil Copper Co., LtdConcepcion del Oro, Zac., Mexico. '28 *Abbott, Argyle Campbell, Dev. Dept., E. I. du Pont de Nemours & Co., Wilmington, Del. '29 Abbott, Clarence E., V.P., Charge of Raw Materials, Tenn. Coal, Iron & R. R. Co., 1242 Brown-Marx Bldg.. Birmingham, Ala. '04 Abbott, Louis Benjamin, Chief Engr., Elkhorn Div., Consolidation Coal Co., Jenkins, Ky. '16 Abeel, George H., Jr., Cons. Min. Engr Box 427, Santa Monica, Cal. '18 Abel, Albert E., Asst. to Pres., Valley Mould & Iron Corp Hubbard, Ohio. '19 Abel, Raymond L., Asst. Prof., Dept. of Pet. Refin., Univ. of Pittsburgh Pittsburgh. Pa. '28 Abeel, Leo M., Research Engr., Sullivan Concentrator Chapman Camp, B. C., Canada. '31

Jan 1, 1929

By Herbert Hoover, Harlod Washburn

This paper is in the nature of a rough preliminary report on the progress that has been made in the application of the mass spectrometer to various problems arising in the petroleum industry. A few years ago the authors considered a number of the problems that were arising in the qualitative and quantitative measurement of small amounts of hydrocarbons. The methods available of making analyses by chemical techniques appeared to leave much room for improvement. Without going into the reasons at this point, attention was turned to the possibility of employing physical instead of chemical methods of accomplishing the desired results. A preliminary investigation disclosed that the mass spectrometer presented a possibility of solving many problems which could not easily be accomplished by other methods. Work was begun in developing the necessary apparatus and technique. A great deal of encouragement and many valuable suggestions were received from Dr. Robert A. Millikan, Dr. W. R. Smythe, and Dr. W. N. Lacey, of the California Institute of Technology, and from Dr. E. 0. Lawrence, who recently received the Nobel Prize, of the University of California. The authors particularly wish to acknowledge the very great willingness of these outstanding scientists to be helpful in solving many of the problems that were involved. So far as the authors are aware, this was the first application of the mass spectrometer to commercial work. The results were considerably better than had at first been anticipated. Briefly, it is possible to run a qualitative and quantitative analysis of an unknown mixture of hydrocarbon gases, with an accuracy of better than plus or minus 5 per cent of each of the various constituents. An exceedingly high degree of sensitivity has been obtained, and a relatively short time is required to complete an analysis. Furthermore, it is unnecessary to separate a mixture of gases into its various components in order to complete the analysis. The Mass Spectrometer The mass spectrometer should not be confused in any way with the optical 01 grating type of spectrograph now in general use. The operation of the mass spectrometer is entirely different in principle and bears practically no resemblance to the optical or grating instruments. The original conception and development of the mass spectrometer dates from and is generally credited to Aston, of Cambridge, England. An early accomplishment of his research, about 20 years ago, was the discovery that the inert gas neon was actually a mixture of two kinds of atoms, one of the atomic weight 20 and the other of atomic weight 22. These two components occurred mixed in such proportion as to yield the usual atomic weight of 20.2. The study was continued and most of the elements were shown to be mixtures of components whose atomic weights can, to in

Jan 1, 1941

By Harlod Washburn, Herbert Hoover

This paper is in the nature of a rough preliminary report on the progress that has been made in the application of the mass spectrometer to various problems arising in the petroleum industry. A few years ago the authors considered a number of the problems that were arising in the qualitative and quantitative measurement of small amounts of hydrocarbons. The methods available of making analyses by chemical techniques appeared to leave much room for improvement. Without going into the reasons at this point, attention was turned to the possibility of employing physical instead of chemical methods of accomplishing the desired results. A preliminary investigation disclosed that the mass spectrometer presented a possibility of solving many problems which could not easily be accomplished by other methods. Work was begun in developing the necessary apparatus and technique. A great deal of encouragement and many valuable suggestions were received from Dr. Robert A. Millikan, Dr. W. R. Smythe, and Dr. W. N. Lacey, of the California Institute of Technology, and from Dr. E. 0. Lawrence, who recently received the Nobel Prize, of the University of California. The authors particularly wish to acknowledge the very great willingness of these outstanding scientists to be helpful in solving many of the problems that were involved. So far as the authors are aware, this was the first application of the mass spectrometer to commercial work. The results were considerably better than had at first been anticipated. Briefly, it is possible to run a qualitative and quantitative analysis of an unknown mixture of hydrocarbon gases, with an accuracy of better than plus or minus 5 per cent of each of the various constituents. An exceedingly high degree of sensitivity has been obtained, and a relatively short time is required to complete an analysis. Furthermore, it is unnecessary to separate a mixture of gases into its various components in order to complete the analysis. The Mass Spectrometer The mass spectrometer should not be confused in any way with the optical 01 grating type of spectrograph now in general use. The operation of the mass spectrometer is entirely different in principle and bears practically no resemblance to the optical or grating instruments. The original conception and development of the mass spectrometer dates from and is generally credited to Aston, of Cambridge, England. An early accomplishment of his research, about 20 years ago, was the discovery that the inert gas neon was actually a mixture of two kinds of atoms, one of the atomic weight 20 and the other of atomic weight 22. These two components occurred mixed in such proportion as to yield the usual atomic weight of 20.2. The study was continued and most of the elements were shown to be mixtures of components whose atomic weights can, to in

Jan 1, 1941

By Arthur Notman

DESPITE the tremendous drop in the volume of domestic production of metals, their prices, and profits, the world as a whole has managed to produce and consume nearly as much as in 1937. Measured by production, 1937 was the record year for copper, lead, and zinc. The Copper Institute figures for 1938 (estimating December as equal to November) show that although apparent domestic consumption declined 309,422 tons, foreign consumption increased 133.035 tons. The total for 1938 was 1,971,790 tons compared with 2,148,177 tons for 1937. The domestic decline was 38.5 per cent, the foreign increase 9.9 per cent, and the total decline 8.2 per cent.

Jan 1, 1939

By Bernhard Schwab

A popular rule in the mining industry is that a property should only be developed if average unit production cost is less than a given proportion of the estimated long-run price of the mineral. This paper provides a comparative analysis of the average cost approach (ACA) with the use of net present value (NPV) as an investment criterion. It is concluded that the ACA is an easily understood and easily applied rule of thumb which may serve as a rough first screening device, for example in the early stages of deposit exploration. Its operational convenience is at the expense of accuracy and validity, and the NPV provides a sounder method of making decisions, especially in the case of marginal deposits.

Jan 1, 1978