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At present, discounted cash flow analysis is generally accepted as the preferred method of valuation of mine projects in surface coal mining. One of the major reasons for that is its ability to take into account the time effect of money over the life-of-mine. As a looking-forward method, it requires forecasts be made with regard to economic, technological, technical, geological, and environmental conditions that will prevail in the future. All forecasts are inherently uncertain as they are a function of the uncertainty of all variables of the discounted cash flows analysis. This indicates that the only alternative for modeling the uncertainty in the project evaluation is the development of adequate risk models to serve the decision-making process. The paper offers a model of project cash flows at risk in strip coal mining, which is an integrated corporate risk management solution. The model is based on a stochastic approach that provides the answer to the question about how large is the deviation between stochastic cash flows and the planned value (or that used in the budget) at each time step of the discounted cash flows analysis, that is due to the uncertainty in the model variables. A solution is worked out for the allowable range of the stochastic cash flows variation that determines the probability of achieving the planned value of a mine project. The Monte Carlo simulation technique is used to model the stochastic behavior of the project variables. A case study of an opencast coal mine project is provided to illustrate the applicability of the risk model. The results obtained provide a new understanding of the mine project risk as a component of the project discount rate.

Jan 1, 2006

By J. Chai

In order to find the behavior of dewatered unconsolidated strata during the process of injecting water through a borehole, a new type of fiber Bragg grating (FBG) sensing system was successfully used for the real-time strain monitoring of unconsolidated strata during a water injection process for a dewatered unconsolidated strata of a coal mine. The unconsolidated strata water injection test was implemented through a borehole at a depth of +115.83 to +135.15m. The employed FBG strain monitoring system and ground water level observation system were installed at the depth in the unconsolidated strata where the water injection was conducted through two different boreholes. The water injection pressures in the test were 0.1, 0.2, 0.3MPa respectively, and the total water injection volume was 4226.84m3. The relationships between the water injection pressures, water injection volume and the strain change of the unconsolidated strata, the stress and strain conditions of the unconsolidated strata before and after water injection, were analyzed. This paper presents the results of these tests, and shows that the dewatering compression of the unconsolidated strata is reduced with increasing water injection pressures and water injection volumes. Comparing the stress-strain conditions before and after water injection, it is found that the stress of the water injection strata is in tension, which confirms the theory that the settlement of the thick unconsolidated strata is directly caused by the reduction of ground water levels. The high sensitivity and stability of the FBG monitoring system used was able to realize the real-time strain monitoring of the water injection process within a deep unconsolidated strata. This FBG monitoring system and the test results presented are very important for understanding further treatment of settlement in unconsolidated strata.

Jan 1, 2012

By J. B. Gwiazda

S. Budirsky J.B. Gwiazda's article deals with an interesting problem that has not been studied thoroughly up to now. Gwiazda has proposed a technical solution that eliminates horizontal load imposed by the supports on the roof. That load is due to a discrepancy between the trajectories of the canopy and the overlying strata. It is true that the improved lemniscate guidance system proposed by Gwiazda could eliminate the horizontal load but, on the other hand, it would represent a higher cost of the supports, and it would complicate the already complicated mechanism of powered supports. That is why we must be convinced that the proposed improvement is actually needed. From that point of view, the following questions should be elucidated. As shown in Fig. 1, the point 0 travels along the curve a, which produces horizontal load on the roof in the direction of the coal face. As stated by Gwiazda, "such a high load is capable of destroying the roof above the support, causing rock debris to be scattered around the face." The results of our measurements carried out in coal mines of the Czechoslovak part of the Upper Silesian Coal Basin show that the convergence in the modern type of powered supports does not exceed several millimeters (not more than 10) per hour. Similar conclusions were drawn from field measurements performed in the Polish part of the Upper Silesian Coal Basin (see S. Romanowicz and H. Szopka in Proceedings, Scientific and Technical Symposium Simmex'85, Katowice, Poland, pp. 73-83). The small vertical closure of the supports also induces a small horizontal displacement of the canopy. In addition to this, the transmission of forces between the roof and the canopy is influenced by the layer of debris on it, i.e., the canopy slides without imposing a greater horizontal load on the roof. This was deduced from field measurements of Voest-Alpine F 4/4500 powered supports equipped with rams instead of the common front lemniscate links (denoted as 1 in Fig. 5). In these supports, the pressurizing of the space of piston rod (1a in Fig. 5) causes the rams to close, which induces horizontal load on the roof in a direction toward the coal face. After the setting of a support unit, the pressure in the piston rod space was found to drop, frequently to zero, because the small horizontal sliding between the canopy and the debris or inside the debris caused the horizontal reaction from the roof to fall to zero, although the debris were pressurized by vertical setting load. As a consequence, there was no horizontal load imposed by the canopy on the roof. A rise of the horizontal load was recorded only after the passage of the shearer and during lowering of the adjacent units. Thorough information on the results of the aforementioned field measurement is given in the paper, "Analysis of the performance of shield powered supports installed in a thick seam," published in Mechanizacja i automatyzacja gornictwa, 1982, No. 12, pp. 38-46. An English translation of the paper is available from the author. We have deduced from our observations that horizontal load imposed by the canopy on the roof in the direction toward the coal face is useful for roof control because it limits the displacement of the immediate roof toward the gob particularly during the rise working. We came to the conclusion that horizontal load on the roof toward the coal face should be induced on purpose. Could Mr. Gwiazda prove with the results of field measurements his contrary opinion? Has the small horizontal displacement of the canopy toward the face actually had an adverse effect on the roof? As shown in Fig. 2, during the setting of a support unit, the canopy imposes a horizontal load on the roof in the direction of the gob. In this case, I share Gwiazda's opinion that the horizontal load could have an adverse effect on the roof. Nevertheless, two important circumstances were neglected - the horizontal compliance of the supports and the interaction of adjacent units. The question of the compliance was analyzed precisely by I. Krumnacker in Gluckauf-Forschungshefte, 1984, No. 5, pp. 219-223. He found that due to the clearance between the hinge pins and the eyes of the sheild and due to the elasticity of the steel structure,

Jan 1, 1987

By D. Richers

When modeling predictive pit lake chemistry, groundwater chemistry is integrated with the affected portions of the wall rock and chemistry of the lake in a complex series of mixing. Fractions of the solutions impinge upon fresh, unaltered or fractured and oxidized zones of the wall containing sulfide materials and/or soluble metal/metalloid salts. Changing conditions over the short term (biannually) and long term (decades) can drive reactions allowing for dissolution or precipitation of acid rock drainage and metal leaching (ARD/ML) constituents. Local zonal variations can result in a portion of the pit releasing materials into solution; whereas other portions of the lake might favor the formation of colloids or precipitants. The proportions and character of groundwater can drive the chemistry of the pit lake provided sufficient buffering capacity is available to temper the generation of ARD in the system. For sulfide-rich systems, reduction of oxygen by rapid inundation and consumption by sulfides is key to reducing the ARD/ML. This paper presents several models of a sulfide-rich wall rock system using a range of groundwater chemistries to show these constraints.

Jan 1, 2012

Newcrest Mining is one of the leading independent gold producers in Australia thanks in large part to its Cadia Valley operations. It is the largest gold and copper producer in New South Wales and one of the largest in Australia. This year Newcrest will expand its operations with a A$545-million expansion in the area. The Cadia Valley is approximately 250 km (155 miles) west of Sydney. The province presently includes the Cadia Hill opencut mine and the Ridgeway underground mine. With a significant mineralized system to the east of Cadia Hill and a mineral resource below Ridgeway, Cadia Valley has the potential to underpin Newcrest?s production for up to 30 years. In 2007, total gold production for the company in-creased to more than 50 t (1.6 million oz) and cash flow increased by 47 percent, according to the company?s annual report. The history of mining in the area dates back to 1851, but Newcrest?s history is young. In 1990, Newcrest commenced activities in the Cadia Valley. In 1992, Cadia Hill was discovered, with the discovery of Cadia East (1995) and Ridgeway (1996) following close behind. In 1998, the Cadia Hill openpit mine was commissioned. In 2002, the Ridgeway underground mine was commissioned and in 2007 the company?s board of directors approved an A$545 million development of the Ridgeway Deeps. The Ridgeway underground mine is located adjacent to Cadia Hill. The Ridgeway orebody has no surface expression but lies approximately 500 m (1,640 ft) below the surface and resembles an inverted teardrop. It measures approximately 450 m (1,476 ft) by 250 m (820 ft) and extends in excess of 850 m (2,788 ft) in depth. Ridgeway is a sublevel caving operation. Crushed ore from underground is delivered by conveyor to a surface stockpile, adjacent to the Ridgeway concentrator. Using similar processes to the adjacent Cadia Hill concentrator, gold and copper are recovered in a conventional flotation circuit to produce a copper concentrate containing elevated gold levels. Ridgeway concentrate is combined with the Cadia Hill concentrate before it is pumped to the filtration plant in

Jan 1, 2008

By J. J. Gresham

Homestake’s first links with Australia were established in 1934 but it wasn’t until 1961 that the company established a formal presence in the country. After involvement and success in iron ore and nickel, Homestake made a strategic investment in the Kalgoorlie gold operations in 1975 and now owns 50% of Kalgoorlie Consolidated Gold Mines, operators of Australia’s biggest gold mine. In 1998 Homestake acquired the major Australian gold producer Plutonic Resources, is now firmly established as Australia’s second largest gold producer and is actively seeking further opportunities for growth in the Austral-Asia region. Homestake’s success in Australia has been the result of important strategic alliances, timely investments, a long term commitment to the region and perseverance during periods of depressed commodity prices.

Jan 1, 2001

By Earl C. Herkenhoff

Editor's note: The subject of mining on the moon can generate a wide range of strongly held opinion, from those leaning toward the view that, ultimately, such activity is the destiny of mankind to those who believe that all suggestions for moon mining to date are unrealistic, wildly expensive and in the hands of people who 'know nothing.' MINING ENGINEERING herewith publishes some of the basic pros and cons on the subject of moon mining by writers who are among those holding strong views on the subject, with the hope that some of our readers may be interested in joining this debate. Every mineralogist and most mineral industry people were keenly interested in the examinations of the first moon rocks brought back by US astronauts in 1969. Suffice to say that the examinations revealed nothing exotic in the mineral makeup of the very limited rock samples. The rocks were generally of igneous type, dark-colored and contained some common, Earth-type minerals. There was, in Earth terms, above average TiO2 content, but they contained nothing of commercial significance by Earth standards. Therefore, interest in moon minerals rapidly faded. Years later, on Sunday, May 4, 1986, living in Reno, NV, this author was shocked to read a local newspaper article by the Dean of the Mackay School of Mines, University of Nevada, Reno, headlined, "Moon Mining Not Far Off." Considering that the announcement more or less coincided with a slump in our domestic mining industry, the immediate questions in a reader's mind

Jan 1, 1991

By Daniel Journeaux

Introduction Daniel Journeaux is President of Janod Incorporated. Janod is a family owned and operated company that has been working in the field of slope stabilization since 1970. Daniel has worked in the rock stabilization industry for 25 years and has been President of Janod since 1992. Daniel has been an invited speaker for the Federal Highways Administration for the Northwest and Southwest divisions, Queens University in Kingston Ontario, The University of Laval, Vulcan Materials Company, CSX annual meeting for the Northeast Division. Daniel has written several articles and has been published in Pit and Quarry, World Tunneling, and American Shotcrete Association magazines. What is Required to Remediate Highwalls There are several techniques available to stabilize highwalls or temporary rock walls to allow for safe mining practices. The following are some of the techniques that can economically be used.

Jan 1, 2005

By Douglas A. Anderson

Mine the Internet? You bet. Precious information resources are there to be found by those willing to explore. Of course, the stratigraphy and the exploration tools must be learned. This article is is designed to help learn those tools and how to find the information that can help the reader. However, beware the Internet. It can be addicting. On the other hand, information can be found that you never suspected. And users can make contact with people who might otherwise never have crossed their paths.

Jan 1, 1996

By R. Gensemer

A number of state and federal agencies are calling for development of aquatic life criteria for conductivity. These aquatic life criteria or ?benchmarks? are based on observed correlations between conductivity and benthic macroinvertebrate community composition, generally measured by composite metrics or indices. However, development of an aquatic life criterion for a composite variable like conductivity is made difficult by a number of factors. Based on a database from West Virginia, observed patterns of invertebrate community composition versus conductivity may instead be related to a combination of abiotic (e.g., ionic composition, habitat) and biotic (e.g., life history, colonization potential) factors. Many benthic invertebrate taxa also do not respond to increasing conductivity in a consistent relationship. Many states have determined that a composite variable, like conductivity or TDS, is not appropriate for criteria development, as many studies have shown that toxicity varies as a function of ion composition and can be mitigated by elevated hardness. We conclude that the relationships between conductivity and changes in benthic macroinvertebrate community composition are neither strong nor reliable enough to warrant derivation of a criterion based solely on conductivity.

Jan 1, 2011

By G. Deissman, S. Kistinger

For the last 15 years environmental Life-Cycle Assessments (LCA) have increasingly been used to evaluate the environmental performance of industrial processes and products and have been employed as a basis in decision making processes in the public and industrial sector. However, assessment methodologies for environmental protection measures and reclamation/remediation measures with respect to their consumption of natural resources are generally poorly developed. In this presentation a methodology for LCA of environmental protection measures and remedial actions, respectively is suggested, using the remediation/reclamation of mining sites as an example. Key aspect of this approach is the development of an evaluation method appropriate for environmental protection measures, which links the various impact indicators recognised in the impact assessments and allows their integrated assessment.

Jan 1, 2005

By V. T. McLemore

The mining industry is at a crossroad. To sustain our technically based society, demands for commodities are increasing, and exploration for these commodities is a must. The debate is between sustainable development and the status quo and begins with exploration, where it is determined if a mineralized area contains enough potential ore to be mined economically. Mineral deposits are relatively rare and depend upon certain natural geologic conditions to form and may not always occur in locations that are most suitable to society. Exploration can be compatible with environmental protection and social responsibility, but difficult challenges face the industry to develop a property that is environmentally, economically, and socially responsible.

Jan 1, 2004

By Z. Zhang, R. G. Reddy

Viscosities of industrial lead slags with various compositions were measured as a function of temperature using a Brookfield viscometer. Based on the experimental data from this study and other investigations reported in the literature, an expression has been developed to correlate the viscosities of lead silicate slags as functions of composition and temperature. The effect of each individual slag component on the variation of the slag viscosity is identified. The composition dependency of viscosity of lead silicate slags is discussed. The calculated results using this viscosity expression are in good agreement with the measured data.

Jan 1, 2001

The use of belt air in underground coal mines has been a continuous discussion since it was first introduced in the Federal Coal Mine Health and Safety Act (Coal Act) of 1969. Although the Coal Act prohibits the use of belt air to ventilate active workings, there were two exceptions prior to the 2004 Final Rule. There have been several major studies/rule-proposals by MSHA since 1985 and the most recent of which is the Technical Study Panel (TSP) established by the Mine Improvement and New Emergency Response (MINER) Act of 2006 to study the use of belt air and related issues. This paper reviews the history of belt air use, its associated controver-sies, and more specifically, the 20 recommendations unanimously approved by the TSP.

Jan 1, 2009

By J. L. Hoover

The goal of the drill bit consumption study was to develop an equation(s) based on various components that affect bit drill wear and use the equation(s) to estimate the consumption of bits during production drilling. Drill bit data from various geographic locations were compiled and used to develop linear regression equations using the Microsoft Excel Software. Multiple drill bit consumption equations were developed and statistical analysis was used to verify the accuracy of those equations. The equations will allow mining companies to more accurately forecast drill bit consumption when evaluating new mine properties. This capability becomes increasingly beneficial to forecasting as the cost of consumables increases.

Jan 1, 2012

By Joseph L. Young, Richard A. Bohling

To keep Homestake's Bulldog Mountain silver and lead mining and milling operation in southwestern Colorado workable, natural ground water and decant water from the mine's sand backfilling operation must be continually pumped from the workings. Left untreated, this water exceeds maximum allowable levels for various contaminants that may be discharged to the environment. To comply with regulations, a National Pollutant Discharge Elimination System (NPDES) permit was obtained and a mine water treatment plant for heavy metals removal was constructed in 1977. Due to equipment capacity and operational problems, and the lack of on-site technical personnel and analytic equipment, the first water treatment plant could not consistently meet permit limits. In 1979, Homestake entered into a consent decree with EPA and the Colorado Department of Health, calling for the construction of a water treatment facility to meet NPDES permit limits. Initial construction began in the spring of 1980 and the plant now produces effluent acceptable for discharge.

Jan 12, 1981

By K. Oraee

Mining of copper ore and the related industries play an important role in Iran?s economy. Copper ore production in Iran accounts for 75% of the total production in the Middle East. All activities related to copper, that is, exploration, production, refinement etc are owned and managed by state owned companies. Decisions have been made to privatize all these activities. To assess the success of this privatization process, different components of the industry must be subject to economic analysis. In this paper, the cost estimation of all operations has been carried out. The total potential and attainable revenues have also been estimated using historical data available from the industry. Risk is a major factor in all mining activities and the copper industry of Iran has been subject to risk factors arising from many internal and external variables. These variables have been recognized and their effects evaluated. The effect of risk on the economic feasibility of the operations in the industry has also been analyzed.

Jan 1, 2011

By A. Redman

Aquatic organisms are sensitive to free cyanide (HCN) though the presence of certain metals that can form stable complexes and thereby reducing both the amount of bioavailable cyanide. Recent work has suggested that consideration of HCN rather than total cyanide can provide the basis for water quality criteria. Cyanide is often present in complex effluents that affect speciation and bioavailability. We have developed a model to predict the speciation of cyanide in complex effluents and have shown that this model can predict the toxicity of metal-cyanide complexes in terms of HCN. This study evaluated available cyanide toxicity exposures with this model to assess the role of water chemistry (e.g., metal-cyanide interactions) on the observed. Toxicity endpoints based on total cyanide ranged over several orders of magnitude for a variety of metal-cyanide mixtures. However, predicted HCN concentrations among these same tests described the observed toxicity data to within a factor of 2. Aquatic toxicity can be well described using HCN though in certain metal-cyanide mixtures toxicity was jointly described by HCN and elevated levels of bioavailable metals. This work was performed in support of an industry-sponsored reassessment (Gensemer et al 2006) of the U.S. EPA water quality criteria for cyanide (EPA 1985) using free cyanide as the basis for the re-calculation. The work presented in this manuscript presents technical support for using free cyanide as the preferred basis for this recalculation.

Jan 1, 2011

By J. T. Bartlett

Life-of-mine process simulation is an interdisciplinary effort and a useful means of thoroughly evaluating mining and minerals projects. Communication between geologists, mine planners, miners, metallurgists, and managers not only benefits each discipline but facilitates design of an efficient operation and allows for accurate forecasting of productions and cash flow. By focusing on the key areas: geology; mine design; waste dumps; stockpiles; metallurgy; weather data; tailings disposal; using contours, block models, mine plans, process flowsheets, design criteria, operating and control strategies, maintenance schedules, and operating costs to perform detailed daily simulation from start-up to shut-down; a comprehensive understanding for all disciplines is achieved. Construction of a METSIM model that includes all test work and project data from drill holes through net present value calculations brings the pieces together to achieve optimum process design, minimize operating problems and eliminate the term ?black box? from project meetings and discussions.

Feb 27, 2013

By M. Yavuz

Multiple Criteria Decision Making (MCDM) is one of the most considerable branches of Operation Research. MCDM refers to making decisions in the presence of multiple, usually conflicting, criteria. The problems in MCDM are classified into two categories: Multiple Attribute Decision Making (MADM) and Multiple Objective Decision Making (MODM). However, very often the terms MADM and MCDM are used to mean the same class of models and mostly confused in practice. Usually, MADM is used when the model cannot state in mathematical equations and otherwise MODM is used (Hwang and Yoon, 1980). Decision-making (DM) is extremely important stage in Mining Engineering like other engineering branches. Every mining engineer makes several decisions in daily mining applications. Most of the decisions made by mining engineers are completely instinctive according to their past experiences and there is not any DM method applied in DM process. Analytic Hierarchy Process (AHP) is one of the well-known techniques solving the decision problems. The AHP is very simple, and understandable method especially non-numerical data considered in DM process. Equipment selection is one of the prominent problems of mining engineering. Mining engineers have to make difficult decisions when equipment selection stage. As the decisions in the equipment selection have radically influenced the economic life of any mining scenario, these are considered as complex MADM problem. So, the decision maker can evaluate the subjective criteria in the problem of equipment selection. The decision maker wants to maximize more than one objective criterion for equipment selection stage. Among the number of alternatives, the most suitable equipment must be selected according to objectives and alternatives. MADM applications can help the decision maker to reach the optimal solution for the equipment selection. In the mining industry, MADM methods can be applied for the equipment selection because it is a process that includes subjective and objective criteria affecting the selection of equipment among the alternatives.

Jan 1, 2007