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By Scott K. Palm, Neil D. Pearson, Jr. Read

"Uncertainty is an important feature of many investments, but it is especially important for mineral properties. Mine properties often entail large investments and fixed commitments. Managers in the mining industry often view price uncertainty as undesirable, due to the possibility that the price of the mined commodity will fall to a level that prevents the firm from recovering its investment and fixed costs. This paper identifies pitfalls in conventional valuation methods and outlines a new approach to valuation based on option pricing theory and dynamic programming. In the process, it identifies generic strategies for organizing mine production in ways that allow the owner to benefit from the uncertainty in mineral prices. IntroductionRisk is pervasive in the mining industry. The operation and maintenance of a mine may involve high, and unavoidable, fixed costs. A mine owner can only begin to recover these fixed costs if the price of the mined commodity is greater than the incremental cost of production. But the prices of many minerals are extremely volatile. The price volatility of copper has been significantly higher than the price volatility of a typical stock, for example. A mine owner cannot be sure that the price of the mineral product will remain high long enough for the firm to recover its capital and fixed costs.Mine owners are able to minimize their losses during periods when the output price is below the incremental cost of production by temporarily closing operations. During these periods they incur only fixed costs. While shut-downs help minimize losses, the y do not help the firm recover its initial investment. If output prices remain low long enough, the fixed costs and original investment may never be recovered. High fixed costs, therefore, lead to substantial downside risk."

Jan 1, 1986

By Ho-Sang Sohn

Copper concentrate particles of 200 to 300 mesh size were fed from the top of vertical reaction tube of 2.8 cm ID and 2 m long with an O2-N2 gas mixture. The reaction tube was heated to 900 K to 1100 K. The residence time of the particles in the reaction tube was about 1 second. The copper concentrate particles were very rapidly oxidized and melted down during their descent in the reaction tube. The particle temperature were calculated by combining an un-reacted core model, mass transfer between gas and particles, and heat transfer between gas, particles and tube wall. The particle temperature reached its maximum within a distance of 60 cm from the top of reaction tube, and it attained at 2000 K at higher oxygen partial pressure. The most particles were melted at the oxygen partial pressure above 20 kPa. An appreciable amount of As, Sb and Pb in the concentrate particles was eliminated in the upper portion of the reaction tube and the rate of elimination are explained by the rate of mass transfer of volatilized species through the gas film on the particle surface and the variation of particle temperature during the descent.

Jan 1, 2006

By Y. Z. Zhang

Electrochemical oxidation of arsenopyrite in ferric sulphate media in the absence and presence of bacteria T jerrooxidans has been investigated for the purpose of understanding the dissolution chemistry of arsenopyrite and the bacteria attack mechanism. Mixed potential, polarization resistance measurements, polarization curve, cyclic voltammetry experiments were conducted in a ferric sulphate medium of 10g/L FeH, temp.25-35°C, pH 1.5-2.5 in the absence and presence of bacteria Tjerrooxidans, respectively. For the anodic process, a two-step reaction sequence is suggested by the electrochemical measurements. The initial step at a low potential is described by:

Jan 1, 1996

By Ann G. Kim

The U.S. Bureau of Mines applied its mine fire diagnostic method to an abandoned anthracite mine fire site in Carbondale, Lackawanna County, P A. The technique to locate fires in abandoned coal mines and coal refuse piles includes the determination of hydrocarbon concentrations in mine gases, the imposition of an underground gas flow direction, and use of a surface mapping method, to define heated and cold zones in underground coal strata. The heated zones at Carbondale were characterized by elevated methane concentrations. The results of 25 communication tests were analyzed to define 2 large (approximately 100 by 250 ft) and 5 small, isolated heated zones. An approximate correlation existed between the location of the heated zones and areas of anomalous snow melt. The correlation between the results of the diagnostic? test and subsurface temperatures was not significant.

Jan 1, 2010

By Charles L. Kimbell

The year 1988 for the minerals indus¬try was one of favorable worldwide economic conditions for continued, rationally constrained growth. There was continued improvement in relations between market economy nations and the Soviet Union and China. The "shooting war" between Iran and Iraq ended. Soviet troops withdrew from Afghanistan. And conditions were generally favorable for economic growth in developed market economy countries. These favorable conditions were darkened only somewhat by the continuing foreign debt crises discernible in some major mineral producing developing market economy countries. However, there were situations developing that became major headlines in the late spring - situations that may have pronounced effects in 1989. The most significant event is the muddled situation in China. There is a good chance of worsening international relations and consequent restraint of development projects that could prove beneficial to China and her international partners. Of only slightly lesser evident significance was the death of Ruhollah Khomeini in Iran. This could lead to a variety of paths for the new Iranian leaders. Continued outbreaks of ethnic unrest in the Soviet Union clearly presented problems to the Gorbachev regime. This unrest has raised questions of how far the doctrines of "glasnost" and "peristroika" would be extended, including extensions into the minerals field. Another area of unrest is Panama with its tainted election and the Western Hemisphere's obvious dissatisfaction with the Noreiga regime. While not a direct threat to any major mineral industry enterprise, the political situation certainly presents a potential threat to the Panama Canal. That threat would have considerable impact on world

Jan 1, 1989

By S. H. Ash

IN no part of the world other than a small area in Pennsylvania is anthracite mining an industry of major magnitude. As the deposits of anthracite in the United States are limited virtually to Pennsylvania, the difficulties of this industry have been commonly considered a state rather than a national problem. However, there is also national interest in the conservation and wise utilization of all the country's fuel resources and in the control of interstate waterways. The anthracite industry is confronted with a serious problem of water accumulation in many of the mines, a problem that must be solved in the near future if progressively higher mining costs are to be avoided. It cannot be solved by the operating companies without state or Federal aid, or both, owing to the magnitude of the work required, the diversity of interests of the coal and surface ownerships, the hazard to the whole mining community, and interests affected outside the mining region. 'The costs of abating the ever-increasing surface seepage to mine workings and of handling this seepage once it has occurred are beyond the eco¬nomic resources of the operating managements.

Jan 1, 1941

By D J. Thobaven

Project financing challenges caused by declining commodity prices have heightened the need to improve project metrics such as minimising capital payback and maximising net present value (NPV). Khnaiguiyah Mining Company (KMC) recognised the need to improve early cash flows at their Khnaiguiyah zinc-copper project after initial studies showed the project could not provide the desired financial outcomes necessary to compete for investment dollars in the current market.A significant improvement to the project cash flow in early years was realised through simultaneous optimisation of cut-off grade, mining sequence and strategic stockpiling. This improvement was achieved by accelerating mining in the pits, stockpiling lower value material and feeding higher value material directly to the plant. The schedule required higher mining and stockpile capacities than the sequential mine plan although minimal change occurred in the definition of ore and waste as measured by tonnes and grade. The practicality of the strategic schedule was demonstrated by implementation in the production plan with excellent conformance.CITATION:Thobaven, D J, 2014. An application of simultaneous optimisation – improving the payback period of a zinc-copper open cut project, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014 , pp 137–144 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014

By Sávia Cristina Lacerda Poubel Pinheiro

A cada sequencial iniciado, as primeiras toneladas de aços que caem no distribuidor podem ser contaminadas pelos refratários, bem como pelo oxigênio do ar. Na Aciaria da Vallourec Soluções Tubulares do Brasil (VSB), em Jeceaba, desde o start up tem-se como prática o sucateamento de aproximadamente 17 toneladas de aço no início de lingotamento, com o objetivo de minimizar problemas de qualidade no tubo devido fornecimento de barras com baixa qualidade. Neste contexto, estudos foram realizados para avaliar a qualidade destas primeiras barras de primeira corrida do sequencial, com foco em barras de diâmetro de 310mm. A avaliação compreendeu a análise do teor de oxigênio total ao longo da primeira barra e qualidade de tubos laminados provenientes das mesmas. Os resultados indicaram que parte da primeira barra apresenta boa qualidade para ser aplicada na laminação de tubos, reduzindo o sucateamento de barras de início de lingotamento em 7 t.

Oct 30, 2017

By C. Y. Sun

China is a country with abundant resources of tungsten, taking one of the world?s top-positions regarding both the total reserve and the amount of industrial production. China?s tungsten resources occur mostly in multi-metallic deposits rather than in single-metallic deposits. China?s multi-metallic tungsten ores have the characteristics of coexistence with other valuable components such as molybdenum, bismuth, copper, sulfur and fluorite. These ores are usually low in grade and difficult to process. The technological challenge in mineral processing lies in separation of multi-metallic components in these complex ores and a comprehensive utilization of natural resource. Several cases of industrial practice of processing China?s typical multi-metallic tungsten ores are presented.

Jan 1, 2014

By César Yuji Narita

Um dos problemas de aglomerados autorredutores utilizando cimento como aglomerante é a sua baixa resistência mecânica a temperaturas acima de 900°C levando-os à degradação durante a redução. Uma nova tecnologia propôs utilizar as propriedades de plasticidade térmica do carvão fóssil coqueificáveis como aglomerante, o que deu origem ao produto conhecido como CCB (Carbon Composite Iron Ore Hot Briquette). Este trabalho tem como objetivo propor uma rota alternativa para a fabricação dos briquetes autorredutores e estudar o efeito de variáveis de processo na resistência à compressão dos mesmos. O método utilizado na obtenção dos briquetes foi de compactação em matriz cilíndrica de misturas de finos de carvão fóssil coqueificável (log(máxima fluidez) = 2,48) e minério de ferro (pellet feed) seguida de tratamento térmico. Foram realizados testes variando granulometria do carvão, pressão de compactação, taxa de aquecimento e proporção entre carvão e minério e investigados os efeitos dessas variáveis em relação à resistência à compressão e à densidade dos briquetes produzidos. Foi observado que a resistência à compressão obtida nos briquetes produzidos via briquetagem a frio seguida de tratamento térmico são comparáveis com os CCBs.

Aug 1, 2018

By H. Verakis, M. A. Hockenberry, A. C. Smith, J. H. Rowland III

Four different types of fire suppression systems were evaluated in large-scale fire experiments to study the effect of air velocity on their effectiveness in extinguishing conveyor belt fires. The four different types of suppression system were water sprinkler, deluge-type water spray and two different dry chemical fire suppression systems. The large-scale fire tests were conducted with 1.8-m- (72-in.)-wide fire-resistant rubber belt that met the Mine Safety and Health Administration flame resistant requirement specified in Title 30, Code of Federal Regulations, Part 18, section 18.65 (also known as the 2G Flame Test). Each fire suppression system was tested at air velocities of 152 - 168 m (500–550 ft) per minute (mpm) and 411 - 457 mpm (1,350 - 1,500 fpm). Two tests were conducted at both air velocities for each fire suppression system. Both of the water-based fire suppression systems were able to suppress the fire to the point that a miner could extinguish it with a fire extinguisher. However, the amount of water needed to suppress the fire to the point where a miner could walk up to and extinguish any smoldering belting was greater than the current MSHA regulations required. MSHA regulations only require 10 minutes of water supply for a suppression system. In the test setup, neither of these systems would have suppressed the fire had the water been turned off to the system after 10 minutes. The dry chemical suppression systems produced mixed results. Dry chemical suppression system A did not suppress the conveyor belt fire at either air velocity. Dry chemical system B suppressed the fire at 152 mpm (500 fpm) air velocity, but produced mixed results at the higher air velocity. Details are presented on the large-scale fire test setup, arrangement of the fire suppression systems and conclusions regarding the effect of air velocity on fire suppression system design and performance.

Jan 1, 2010

By Kazue Moriya

At the 1980 TMS-AIME world symposium, Dr. Davey mentioned that the traditional lead blast furnace is now being challenged by direct smelting processes. In the copper smelting field both the blast furnace and reverberatory furnace are also disappearing in favour of direct smelting processes such as Outokumpu flash smelting, Mitsubishi continuous smelting, Noranda furnace, Inco furnace and so on. Those new processes all have the following in common: (1) High degree of mechanization (2) Metallurgical reactions carried out in closed vessels (3) Application of oxygen and/or oxygen enriched air (4) Minimization of handling materials and gaseous volume (5) Minimum energy requirements (6) Removal of workers from near the furnace (7) Reduction of emissions of harmful gas to meet environmental regulations. (8) Improvement to the work place environment to avoid occupational hygiene hazards. Direct and continuous smelting of powdered concentrate in one vessel was a romance of the metallurgist since early times. However as mentioned above, in the copper field this objective is being achieved in practice. The industry however can't deny that the serious and severe regulation of environmental pollution in every country was the prime motive for the modernization of smelters. In early days, to meet regulations, it was anticipated that many economic difficulties such as higher capital and energy costs and extravagant use of resources and waste disposal would be the result. "Turn a misfortune into a blessing" is an old saying which reveals the current thinking and reacent developments in the nonferrous industries. In the last ten years in the lead smelting field, about two decades later than copper, commercial scale smelting using new furnance technology has started. The KIVCET process and QSL process, which is flash smelting and bath smelting respectively, are becoming major competitors. They will be sure to upgrade their processes to remain economically and environmentally viable in the comming decade.

Jan 1, 1990

By Kenneth M. Haley

THE development of Reserve Mining Company's pelletizing practices began in 1949 in a pilot plant located at Ashland, Kentucky. Three years later the participating companies -Armco Steel Corporation, Cleveland Cliffs Iron Mining Company and Republic Steel Corporation concluded the work and the small plant was shut down. Oglebay Norton and Company was the operating manager and Armco Steel Corporation furnished labor and services. Arthur G. McKee and Company were the designers and constructors. The equipment flow sheet that was employed in that pilot operation is shown in Figure 1. This was Reserve's first step from the laboratory work per-formed by the Mines Experiment Station of the University of Minnesota in developing a commercial operation. The plant used New York state concentrate, purchased from Jones and Laughlin Steel Corporation's Benson Mine. This concentrate, minus 14 mesh, 64.3 per cent Fe, 5.7 per cent Si02, was processed at Ashland to 80 per cent minus 325 mesh in conventional ball mill, classifier, thickener, filtering

Jan 1, 1961

The recovery of Copper by solvent extraction was arguably the most significant hydrometallurgical development of the 1960's. However, only dilute solutions at relatively high ph. could be treated effectively. ICVAcorga introduced in the 1970's the much stronger salicylaldoxime based reagents, which resulted in a dramatic change in plant configurations. So for example plants which normally use 3 extraction stages and 3 stripping stages could be reduced to 2 + 2 staging or 2 + 1 staging, even for high copper tenors at low ph. Leach liquors up to 40 g A copper are being treated at some locations so that almost any copper bearing liquor can now be purified by solvent extraction. Following a considerable amount of research and development effort ICI/Acorga have made further significant advances in the application of copper solvent extraction. The first of these is in computerised flowsheeting. In conjunction with ICI's Process Technology Department, Acorga have developed the Minchem Computer program, which uses laboratory generated equilibrium data to facilitate optimisation of metallurgical operating parameters. The program can operate in two modes, prediction and assessment so that given suitable extract and strip isotherms plant performance can be predicted for a given set of conditions. Alternatively existing plant performance can be assessed rapidly and accurately, thus providing a valuable quality control tool. Pilot plant work can now be restricted to evaluation of the physical aspects of the SX circuits, and to looking for the unexpected. Secondly using the patented 5-Nonyl Salicylaldoxime in precise admixture with a number of carefully selected strip modifiers, the Acorga M-range has resulted. Reagent selection from these new extractants can now be based on how the reagent can alleviate the remaining problems such as hydrolytic stability, transfer of iron, and organic losses by entrainment which may be related to particular features of the operating plant. Thus the Acorga M-range has enhanced and significantly extended the use of solvent extraction for copper, whilst refinements in the processing of metallurgical data has considerably simplified circuit design and analysis of results.

Jan 1, 1989

By F. G. Horino

The Bureau of Mines conducted compressive strength tests on model pillars of selected rock types with each pillar containing a critically oriented plane of weakness. The objective of these tests was to determine if a significant increase in the strength of the model pillar could be obtained by either (1) installing tensioned rock bolts through the pillar and normal to the plane of weakness, or (2) wrapping tensioned steel wire ropes around the pillar at uniformly spaced intervals along the pillar. Equations based on Coulomb's failure criterion are developed to predict uniaxial compressive strength of model pillars that are either rock-bolted or wire-roped. Laboratory compressive strength tests on unbolted and bolted model pillars of sandstone, marble, Indiana limestone, and oil shale containing a plane of weakness oriented at 45° showed that the bolted pillars are stronger than the unbolted pillars by 84, 31, 52, and 28 pct, respectively. Laboratory compres-sive strength tests on nonroped and roped model pillars of Texas limestone, sandstone, and granite containing planes of weakness showed that the roped pillars were stronger than the nonroped pillars by factors ranging from 1.01 to 2.41, depending upon the angle of the plane of weakness and the rock type. Rocks with a low Young's modulus benefited most by the wire-roping technique.

Jan 1, 1971

By Z. Xingrong, L. Jiongtian, Z. Yangge, C. Yijun, L. Liang, H. Yangjia, H. Long

In this present research, a polymer poly (acrylamide-allyl thiourea) (PAM-ATU) with an average molecular weight 1.66 × 104 g/mol was used as a depressant in the flotation separation of molybdenite from chalcopyrite and galena. The micro-flotation experimental results showed that PAM-ATU exhibited a strong influence on the flotation performances of chalcopyrite and galena, but had little effect on that of molybdenite within a pH range of 9.0~11.0 at a dosage of lower than 6.0 mg/L. The flotation results of bulk flotation tests illustrated that PAM-ATU showed a stronger depression power than sodium thioglycollate (TGA) and sodium sulfide. The comparison results demonstrated that PAM-ATU and TGA had an advantage in reducing galena and chalcopyrite impurities in the molybdenum concentrate, respectively. With the combination of PAM-ATU and TGA, a good flotation separation result was achieved through one roughing operation where the recovery of molybdenum in the froth product was over 75.0%, while the recovery of copper and lead were less than 22.0% and 15.0%, individually. It was also found that a molybdenum concentrate with Mo grade of 46.32%, Cu grade of 0.16%, Pb grade of 0.06%, was obtained by a closed circuit flotation flowsheet of one roughing-three scavenging-five cleaning with a Mo recovery of 77.67%. Keywords: PAM-ATU, molybdenite, depressant, chalcopyrite, galena

Jan 1, 2020

By Stephen H. Stow

The relationships between the amount of light reflected off 21 samples of Florida phosphate and the chemical, composition of the samples were examined. It was found that the reflectivity of a rock is directly related to its chemical composition and that darker phosphates (less light reflectance) have relatively high amounts of iron, organic C and sulfate while lighter-colored rocks were rich in phosphorus, fluorine and aluminum. The use of reflectivity measurements could have economic applications in the phosphate rock industry: color specifications for rock shipments could he met, beneficiations by optical sorting could be performed and semi-quantitative analyses could be made rapidly and inexpensively.

Jan 1, 1971

By L. F. Pett

ALTHOUGH Kennecott's orebody has long been outlined, it is still necessary to define further its limits. This mine, long an advocate of churn drill methods, recently supplemented its practice by using a diamond drill. So far, the diamond drill holes have been along the main canyon floor which traverses the mine area. This zone, highly fractured, is cut by numerous friable quartz veinlets encountered within the porphyry. These veinlets, formed by filling contracted porphyry fractures with hot, siliceous, mineral-bearing solutions, are often more highly mineralized than adjacent porphyry. They pulverize on contact, yielding only slight amounts of core.

Jan 7, 1951

By Jian Liu

The dissolubility of a natural sphalerite (ZnS) in the entire pH range was theoretically calculated, and its practical dissolution in an aqueous solution at different pH values in an inert environment, together with its surface properties after dissolution, was fully investigated. The results of the investigation indicate that the total concentration of Zn (CZnT) decreases significantly with the increase of pH value, while the pH value is set below 8; however, it reverses when the pH value reaches 8. Such a tendency is similar to that of the theoretical calculations, although the experimental CZnT were much higher than those of the theoretical calculations. The X-ray photoelectron spectroscopy (XPS) of the sphalerite surface after its dissolution under alkaline solution shows that a polysulfide (Sn 2-) surface layer with a binding energy (BE) value of 162.96-163.25 eV is present on the surface, and the percentage of Sn 2- increases significantly with an increase in pH value; the undissolved and dissolved sphalerites under the acidic solution have a negligible difference in S2p peaks. The surface S/Zn ratio of all dissolved sphalerites shows a marked Zn enrichment and S deficiency. An atomic force microscope (AFM) view of the sphalerite surface, after its dissolution under the alkaline solution at a pH of 12, shows that the surface is significantly different in morphology from that of the undissolved one.

May 1, 2012

By L. M. Pidgeon

"Part I. - PrinciplesIntroductionIf the oxides of the metals are listed in decreasing order of the magnitude of their heats of formation, the list appearing in Table 1 will be formed. It will be apparent at once that this is essentially the well-known electrochemical series (Table li). The metals at the bottom of the list exhibit great stability and are attacked only by the most violent of chemical reagents. Higher on the list, the metals become more reactive until, at the head of the list, the metals lithium and calcium are unstable in moist air.The reactive metals to be considered lie above manganese. In this group will be found familiar and abundant metals such as aluminium and magnesium, the unfamiliar yet abundant metal titanium, the rare and mysterious metal beryllium, and others of greater or less interest.While these metals exhibit properties as unlike as those of uranium and magnesium, they have in common a specialized and difficult extractive metallurgy. They form compounds of great stability, and their reduction is to varying degrees difficult. The position of a metal in Table 1 (and more particu1arly its position in the free energy column) gives a numerical value to this property.Oxides with low free energies of formation may be reduced with great ease; thus silver and mercury may be produced from their oxides by simple heating in air.Lead, iron, and zinc may be separated from their oxides by heating with carbon to moderate temperatures. Magnesium oxide, on the other hand, .requires a high temperature and very special conditions before it will yield magnesium metal."

Jan 1, 1950